[Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) [Company Profile and GEM Characteristics](index=1&type=section&id=Company%20Profile%20and%20GEM%20Characteristics) This announcement by KML Technology Group Limited provides company information, highlighting GEM market opportunities for SMEs with higher investment risks and market volatility - KML Technology Group Limited is incorporated in the Cayman Islands, stock code **8065** - The GEM market is designed for small and medium-sized companies, carrying **higher investment risks**, potential for **significant market volatility**, and **no guarantee of high liquidity** [Financial Highlights](index=2&type=section&id=Financial%20Highlights) [Annual Financial Performance Overview](index=2&type=section&id=Annual%20Financial%20Performance%20Overview) For the reporting year (ended March 31, 2025) the company's revenue slightly increased to **196.1 million HKD**, gross profit significantly grew to **39.1 million HKD**, and net profit reached **0.1 million HKD**, **reversing last year's loss**; the Board does not recommend a final dividend Financial Highlights Comparison FY2025 vs FY2024 | Metric | FY2025 (Million HKD) | FY2024 (Million HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 196.1 | 194.1 | Increased by 2.0 (1.0%) | | Gross Profit | 39.1 | 29.9 | Increased by 9.2 (30.8%) | | Net Profit/(Loss) | 0.1 | (13.8) | Turned Loss into Profit | - The Board does not recommend paying a final dividend for the reporting year (2024: **nil**) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2025, the company's revenue slightly increased, cost of sales decreased, and gross profit significantly grew; administrative expenses decreased, and finance costs were reduced, ultimately achieving a profit before tax of **109 thousand HKD**, and recording a profit attributable to owners of the Company for the year of **97 thousand HKD**, basic earnings per share of **0.02 HK cents**, successfully **reversing last year's loss** Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 196,105 | 194,111 | +1.0% | | Cost of Sales | (156,970) | (164,176) | -4.4% | | Gross Profit | 39,135 | 29,935 | +30.8% | | Administrative Expenses | (41,295) | (46,473) | -11.2% | | Profit/(Loss) Before Tax | 109 | (13,944) | Turned Loss into Profit | | Profit/(Loss) for the Year | 97 | (13,793) | Turned Loss into Profit | | Basic Earnings/(Loss) Per Share (HK Cents) | 0.02 | (3.43) | Turned Loss into Profit | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, total non-current assets slightly increased, and total current assets decreased, but current liabilities significantly reduced, especially with **zero bank borrowings**, resulting in **stable net current assets** and a **slight increase in total equity** Key Data from Consolidated Statement of Financial Position | Metric | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 16,799 | 14,541 | +15.5% | | Total Current Assets | 178,509 | 188,884 | -5.5% | | Total Current Liabilities | 58,720 | 66,957 | -12.3% | | Net Current Assets | 119,789 | 121,927 | -1.8% | | Bank Borrowings (Current Liabilities) | – | 15,000 | -100% | | Total Equity | 136,411 | 136,300 | +0.1% | [Notes to the Financial Information](index=6&type=section&id=Notes%20to%20the%20Financial%20Information) [Company and Group Information](index=6&type=section&id=Company%20and%20Group%20Information) KML Technology Group Limited is incorporated in the Cayman Islands, primarily engaged in investment holding, with its subsidiaries mainly providing E&M engineering solutions and services - The Company's principal business is investment holding, with subsidiaries primarily engaged in providing E&M engineering solutions and services[13](index=13&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, adopting several revised accounting standards for the first time, including lease liabilities in sale and leaseback transactions, liability classification, and supplier finance arrangements, none of which had a **material impact** on the Group's financial position or performance - Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA, presented in HKD[14](index=14&type=chunk) - Newly adopted revised Hong Kong Financial Reporting Standards include: HKFRS 16 (Revised) Lease Liabilities in a Sale and Leaseback, HKAS 1 (Revised) Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants, and HKAS 7 and HKFRS 7 (Revised) Supplier Finance Arrangements[15](index=15&type=chunk)[16](index=16&type=chunk) - The revised accounting standards had **no material impact** on the Group's financial position or performance[15](index=15&type=chunk)[16](index=16&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily derived from E&M engineering solutions and services, with total revenue slightly increasing by **1.0%**; revenue from critical transportation system solutions significantly grew by **74.3%**, while mobile ticketing and digital payment solutions and services revenue decreased by **18.8%**; Hong Kong is the primary source of revenue [Revenue Analysis](index=7&type=section&id=Revenue%20Analysis) Total revenue for FY2025 was **HKD 196,105 thousand**, with E&M technology solutions and engineering services contributing the most, critical transportation system solutions revenue growing significantly, and mobile ticketing and digital payment solutions and services revenue decreasing Revenue Analysis from Customer Contracts | Revenue Source | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Critical Transportation System Solutions | 18,291 | 10,514 | +74.0% | | Mobile Ticketing and Digital Payment Solutions and Services | 44,436 | 54,662 | -18.8% | | E&M Technology Solutions and Engineering Services | 100,856 | 102,750 | -1.8% | | Digital Assembly and Maintenance Services | 30,320 | 25,168 | +20.5% | | Sales of Products, Parts and Components | 2,202 | 1,017 | +116.5% | | **Total Revenue** | **196,105** | **194,111** | **+1.0%** | - Regarding revenue recognition timing, most revenue (**HKD 193,903 thousand**) is recognized over time[18](index=18&type=chunk) [Performance Obligations](index=8&type=section&id=Performance%20Obligations) As of the reporting period end, the Group's total outstanding contracts amounted to approximately **HKD 307.9 million**, a decrease from last year, with E&M technology solutions and engineering services still representing the largest share Transaction Price Allocated to Remaining Performance Obligations | Performance Obligation | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Critical Transportation System Solutions | 31,790 | 32,955 | | Mobile Ticketing and Digital Payment Solutions and Services | 93,733 | 100,243 | | E&M Technology Solutions and Engineering Services | 115,688 | 187,293 | | Digital Assembly and Maintenance Services | 66,356 | 20,407 | | Other | 322 | 1,128 | | **Total** | **307,889** | **342,026** | - The Group operates in a **single operating segment**, providing E&M engineering solutions and services[20](index=20&type=chunk) [Geographical Information](index=9&type=section&id=Geographical%20Information) Hong Kong is the Group's primary revenue source, contributing the **vast majority of revenue and non-current assets** Revenue and Non-current Assets by Geographical Region | Region | 2025 Revenue (Thousand HKD) | 2024 Revenue (Thousand HKD) | 2025 Non-current Assets (Thousand HKD) | 2024 Non-current Assets (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 195,031 | 193,331 | 8,487 |

Financial Performance - The Group's revenue for the six months ended September 30, 2024, was approximately HK$80.1 million, a decrease of approximately HK$13.3 million or 14.2% compared to HK$93.4 million for the same period in 2023[20] - The gross profit for the Reporting Period amounted to approximately HK$13.2 million, down from approximately HK$17.1 million in 2023[20] - The net loss for the Reporting Period was approximately HK$5.5 million, compared to a net loss of approximately HK$3.2 million in 2023[21] - The group's gross profit for the reporting period was approximately HK$13.2 million, compared to HK$17.1 million in 2023, representing a decrease of about 23.1%[23] - The net loss for the reporting period was approximately HK$5.5 million, compared to a net loss of HK$3.2 million in 2023, indicating an increase in losses of approximately 71.9%[23] - The revenue for the six months ended September 30, 2024, was HK$80.1 million, down from HK$93.4 million in 2023, reflecting a decline of approximately 14.2%[26] - The Group reported a loss before tax of approximately HK$5,467,000 for the six months ended 30 September 2024, compared to a loss of approximately HK$3,248,000 in the same period of 2023[84] - The Group recorded a net loss attributable to the owners of approximately HK$5.5 million for the Reporting Period, compared to a net loss of approximately HK$3.2 million in 2023[142] Dividend and Shareholder Returns - The Board does not recommend an interim dividend for the Reporting Period, consistent with the previous year[21] - The company did not recommend the payment of an interim dividend for the reporting period, consistent with the previous year[23] - The Group does not recommend a payment of an interim dividend for the Reporting Period[142] Expenses and Costs - Administrative expenses decreased to HK$20.4 million from HK$21.4 million in 2023, a reduction of about 5.0%[26] - The total cost of acquiring property, plant, and equipment during the reporting period was approximately HK$54,000, a significant decrease from HK$736,000 in the previous year[89] - The cost of sales decreased by approximately 12.3% from approximately HK$76.3 million for the six months ended 30 September 2023 to approximately HK$66.9 million for the Reporting Period[141] - The gross profit decreased by approximately 22.8% from approximately HK$17.1 million for the six months ended 30 September 2023 to approximately HK$13.2 million for the Reporting Period, primarily due to a decline in revenue[141] Cash Flow and Liquidity - For the six months ended September 30, 2024, net cash used in operating activities was HK$ (1,918,000), a significant improvement compared to HK$ (29,559,000) in the same period of 2023, indicating a reduction in cash outflow[41] - Cash and cash equivalents at the end of the period were HK$ 28,595,000, down from HK$ 51,364,000 at the end of the same period in 2023, reflecting a net decrease in cash[41] - The Group's liquidity and capital requirements are primarily met through operating cash flows, bank borrowing, and equity[142] - As of September 30, 2024, the Group has net current assets of approximately HK$116.1 million, a decrease from HK$121.9 million as of March 31, 2024[2] - The Group's bank balances and cash amounted to approximately HK$53.7 million as of September 30, 2024, down from approximately HK$70.2 million as of March 31, 2024[3] - The Group had no outstanding borrowings as of September 30, 2024, compared to approximately HK$15.0 million as of March 31, 2024[4] - The gearing ratio as of September 30, 2024 was not applicable, down from 11.0% as of March 31, 2024, due to the full settlement of borrowings during the Reporting Period[5] Assets and Liabilities - Total current assets as of September 30, 2024, were HK$164.9 million, down from HK$188.9 million as of March 31, 2024, a decrease of approximately 12.7%[28] - Total current liabilities decreased to HK$48.8 million from HK$67.0 million, a reduction of approximately 27.9%[31] - The total equity as of September 30, 2024, was HK$130.7 million, down from HK$136.3 million as of March 31, 2024, indicating a decrease of about 4.9%[31] - The Group's trade receivables as of September 30, 2024, totaled HK$36,440,000, a decrease from HK$38,671,000 as of March 31, 2024[98] - The Group's trade payables as of September 30, 2024, amounted to HK$14,472,000, an increase from HK$12,146,000 as of March 31, 2024[102] - The provision for contract works at the end of the period was HK$7,501,000, down from HK$9,237,000 at the beginning of the period[106] Revenue Segments - Revenue from Mobile Ticketing and Digital Payment Solutions increased to HK$ 8,236,000, up 54.1% from HK$ 5,331,000 in the previous year[58] - Revenue from Engineering Services decreased to HK$ 12,095,000, a slight decline of 2.1% from HK$ 12,351,000 in the same period of 2023[58] - Revenue from the Transportation Mission Critical System Solutions segment was approximately HK$8.2 million, an increase from approximately HK$5.3 million in 2023, with outstanding contracts valued at approximately HK$36.3 million, up from approximately HK$16.6 million in 2023[116] - Revenue from Mobile Ticketing and Digital Payment Solutions was approximately HK$16.2 million, down from approximately HK$25.9 million in 2023, with outstanding contracts valued at approximately HK$96.8 million, compared to approximately HK$120.3 million in 2023[119] - Revenue from Digital Fabrication and Maintenance Services was approximately HK$12.1 million, slightly down from approximately HK$12.4 million in 2023, while outstanding contracts increased to approximately HK$67.9 million from approximately HK$29.1 million in 2023[121] - Revenue from M&E Technology Solutions and Engineering Services was approximately HK$42.1 million, down from approximately HK$49.5 million in 2023, with outstanding contracts valued at approximately HK$149.7 million, compared to approximately HK$210.3 million in 2023[125] Corporate Governance - The Company has complied with all applicable code provisions in the Corporate Governance Code during the Reporting Period[11] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix C1, ensuring compliance during the reporting period[171] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results and confirmed compliance with applicable accounting standards[173] - The company continues to comply with the GEM Listing Rules regarding the disclosure of interests[5] Share Capital and Options - As of September 30, 2024, the total number of issued shares was 404,960,000[5] - The Share Option Scheme allows for a maximum of 40,000,000 Shares to be granted, representing 10% of the total number of Shares in issue at the time of adoption[189] - The total number of Shares that may be issued under all share schemes during the Reporting Period was 3.13% of the weighted average number of Shares in issue[6] - The subscription price for any option granted under the Share Option Scheme is determined by the Board and cannot be less than the highest of the closing price on the date of grant, the average closing price for the preceding five business days, or the nominal value of a Share[191] - The Share Option Scheme will remain in force for 10 years from October 16, 2017, unless terminated earlier by the Shareholders[191] - The maximum number of Shares that can be issued upon exercise of options in any 12-month period shall not exceed 1% of the Shares in issue[189] - The options granted include 1,000,000 to a former director and 400,000 to the Joint Company Secretary[197]

[Corporate Information](index=4&type=section&id=Corporate%20Information) This section details the company's governance structure, including its Board of Directors and key personnel, along with essential corporate registration and banking information [Board of Directors](index=4&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises three executive and three independent non-executive directors, with Mr. Luk Kam Ming as Chairman and Mr. Luk Kwai Nung appointed CEO on August 7, 2023, supported by audit, remuneration, nomination, and risk management committees - The Board members include Luk Kam Ming (Chairman), Luk Kwai Nung (CEO), Luk Yin Cheung (Executive Director), and Lau On Kwok, Lo Wing Chi, Tse Chi Keung (Independent Non-executive Directors)[14](index=14&type=chunk)[16](index=16&type=chunk) - Mr. Chan Chak Lam retired as Executive Director and CEO on August 7, 2023, and Mr. Yu Wing Luk retired as Independent Non-executive Director on the same day[14](index=14&type=chunk)[16](index=16&type=chunk) - The company has established Audit, Remuneration, Nomination, and Risk Management Committees, all with independent non-executive director participation[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Key Personnel and Corporate Details](index=4&type=section&id=Key%20Personnel%20and%20Corporate%20Details) Ms. Wu Siu Wai is the Company Secretary, Mr. Luk Yin Cheung is the Compliance Officer, and Ernst & Young is the auditor; the company is registered in the Cayman Islands with its Hong Kong headquarters in Sha Tin Industrial Centre, banking with HSBC and DBS Bank (Hong Kong) - Ms. Wu Siu Wai serves as the Company Secretary, and Mr. Luk Yin Cheung as the Compliance Officer[16](index=16&type=chunk)[17](index=17&type=chunk) - Ernst & Young is the auditor[16](index=16&type=chunk)[17](index=17&type=chunk) - The company's registered office is in the Cayman Islands, with its Hong Kong headquarters and principal place of business located in Sha Tin Industrial Centre, Siu Lek Yuen Road, Sha Tin, New Territories, Hong Kong[18](index=18&type=chunk)[19](index=19&type=chunk) - The principal bankers are The Hongkong and Shanghai Banking Corporation Limited and DBS Bank (Hong Kong) Limited[19](index=19&type=chunk)[20](index=20&type=chunk) - The company's stock code is **8065**[19](index=19&type=chunk)[20](index=20&type=chunk) [Chairman's Statement](index=6&type=section&id=Chairman's%20Statement) The Chairman's Statement reviews the Group's financial performance, R&D achievements, market expansion, and future strategic outlook, highlighting ESG commitments and technological advancements [Business Review](index=6&type=section&id=Business%20Review%20-%20Chairman's%20Statement) For the reporting year, the Group's revenue grew by **26.5%** to **HKD 194.1 million**, with net loss significantly narrowed to **HKD 13.8 million**; the company actively invested in IoT, robotics, and AI R&D, applying results to automated toll system verification and smart maintenance services, expanding its client base to ferry and airport sectors, and receiving multiple awards for social responsibility and employee welfare FY2023/24 Key Financial Performance | Metric | FY2024 (Million HKD) | FY2023 (Million HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 194.1 | 153.4 | +26.5% | | Net Loss | (13.8) | (32.2) | Loss narrowed | - The company is committed to R&D, investing in IoT, robotics, and AI technologies, successfully applying results to automated toll system reliability verification and smart maintenance services to enhance efficiency and reduce costs[23](index=23&type=chunk)[28](index=28&type=chunk) - In Hong Kong's transportation M&E services, the company successfully implemented a one-stop automated toll system solution, expanding its client base to ferry and airport sectors[24](index=24&type=chunk)[29](index=29&type=chunk) - Received the 'Caring Company Award' (over fifteen years) and 'Heart-Friendly Organisation Award – Outstanding Organisation', demonstrating the company's commitment to social impact and employee welfare[25](index=25&type=chunk)[30](index=30&type=chunk) [Outlook](index=7&type=section&id=Forward%20-%20Chairman's%20Statement) The company anticipates new opportunities from ESG factors and EV charging projects, planning collaborations with academic institutions; it strategically expands into Greater China and Southeast Asian markets, focusing on mobile ticketing and digital payment solutions, while enhancing operational efficiency and gross profit margins through advanced technologies like smart site safety and VR training systems - Anticipates increased awareness of ESG factors will bring more business opportunities, especially in electric vehicle charging projects and clean energy utilization, actively seeking collaboration with Hong Kong academic institutions[31](index=31&type=chunk)[36](index=36&type=chunk) - Strategically expanding business to the Greater Bay Area, Taiwan, and Southeast Asian countries, focusing on mobile ticketing and digital payment solutions and services to achieve market diversification and brand enhancement[32](index=32&type=chunk)[36](index=36&type=chunk) - Plans to adopt advanced technologies like smart construction site safety systems and virtual reality training systems to improve operational efficiency, monitor site safety, and optimize processes, expecting positive contributions to financial health and gross profit margin[33](index=33&type=chunk)[37](index=37&type=chunk) [Financial Highlights](index=8&type=section&id=Financial%20Highlights) This section provides a concise overview of the Group's key financial figures for the reporting year, including revenue, gross profit, net loss, and dividend recommendations [Key Financial Figures](index=8&type=section&id=Key%20Financial%20Figures) For the reporting year, the Group's revenue was approximately **HKD 194.1 million**, a **26.5%** year-on-year increase; gross profit significantly grew to **HKD 29.9 million**, and net loss narrowed to **HKD 13.8 million**, with no final dividend recommended by the Board FY2024 Financial Highlights | Metric | FY2024 (Million HKD) | FY2023 (Million HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 194.1 | 153.4 | +26.5% | | Gross Profit | 29.9 | 9.9 | +202% | | Net Loss | (13.8) | (32.2) | Loss narrowed | - The Board does not recommend a final dividend for the reporting year (2023: nil)[41](index=41&type=chunk)[43](index=43&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section offers a comprehensive review of the Group's business and financial performance, future outlook, and key risks and uncertainties, providing management's perspective on operational and strategic developments [Business Review](index=9&type=section&id=Business%20Review%20-%20MD%26A) For the reporting year, the Group's revenue grew **26.5%** to **HKD 194.1 million**, primarily due to improved project progress and the reversal of onerous contract provisions, significantly boosting gross profit; M&E technology solutions and engineering services remained the largest revenue source, while mobile ticketing and digital payment solutions and services revenue surged **176.3%**; the company achieved multiple ESG milestones, including data privacy awards, employee welfare commitments, and environmental initiatives FY2024 Business Performance | Metric | FY2024 (Million HKD) | FY2023 (Million HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 194.1 | 153.4 | +26.5% | | Gross Profit | 29.9 | 9.9 | +202% | | Outstanding Contracts on Hand | 342.0 (as of 2024/3/31) | 438.3 (as of 2023/3/31) | -22% | FY2024 Revenue by Business Segment | Business Segment | FY2024 (Million HKD) | FY2023 (Million HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | M&E Technology Solutions & Engineering Services | 102.8 | 80.3 | +28.0% | | Mobile Ticketing & Digital Payment Solutions & Services | 54.7 | 19.8 | +176.3% | | Traffic Critical System Solutions | 10.5 | 24.5 | -57.1% | | Digital Assembly & Maintenance Services | 25.2 | 23.3 | +8.2% | | Sales of Products, Parts & Components | 1.0 | 5.5 | -81.8% | - In ESG, the company received the Privacy-Friendly Awards Silver Award from the Hong Kong Privacy Commissioner for Personal Data, the 'Caring Company Award', and the 'Heart-Friendly Organisation Award – Outstanding Organisation', while adding electric vehicles to its fleet to support carbon reduction goals[69](index=69&type=chunk)[74](index=74&type=chunk) [Outlook](index=11&type=section&id=Outlook%20-%20MD%26A) The company anticipates ongoing challenges from Hong Kong's talent shortage and rising labor costs, addressing them through recruitment, educational partnerships, and advanced technologies like smart site safety and VR training; stable demand for M&E engineering services is expected from new railway construction and upgrades, with significant opportunities in the EV charger installation market; the company plans to expand into the Greater Bay Area, Taiwan, and Southeast Asian markets - Hong Kong's talent shortage and rising labor costs will continue to challenge business, with the company actively recruiting talent and collaborating with educational institutions[70](index=70&type=chunk)[75](index=75&type=chunk) - The company will enhance operational efficiency and reduce labor costs by adopting advanced technologies such as smart construction site safety systems and virtual reality training systems[71](index=71&type=chunk)[75](index=75&type=chunk) - Stable demand for M&E engineering services in the transportation sector is expected in the coming years, with significant opportunities in the EV charger installation market, particularly for the **140,000 chargers** under the EHSS scheme[73](index=73&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - The company plans to expand its business footprint to the Greater Bay Area, Taiwan, and other Southeast Asian countries, focusing on mobile ticketing and digital payment solutions and services[79](index=79&type=chunk)[85](index=85&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review%20-%20MD%26A) For the reporting year, the Group's revenue grew **26.5%** to **HKD 194.1 million**, with gross profit surging **202%** to **HKD 29.9 million**, mainly due to improved project completion and no onerous contract provisions; net loss narrowed to **HKD 13.8 million**, administrative expenses rose **6.9%** due to increased staff costs, and the Group incurred **HKD 15 million** in bank borrowings, resulting in an **11.0%** gearing ratio FY2024 Financial Performance Overview | Metric | FY2024 (Million HKD) | FY2023 (Million HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 194.1 | 153.4 | +26.5% | | Cost of Sales | 164.2 | 143.5 | +14.4% | | Gross Profit | 29.9 | 9.9 | +202% | | Impairment Loss on Financial & Contract Assets | 50 (Reversal) | 5.2 (Loss) | Improved | | Administrative Expenses | 46.5 | 43.5 | +6.9% | | Net Loss Attributable to Owners | (13.8) | (32.2) | Loss narrowed | - As of March 31, 2024, the Group had **HKD 15 million** in outstanding bank borrowings, with a gearing ratio of **11.0%** (2023: not applicable)[92](index=92&type=chunk)[100](index=100&type=chunk) - As of March 31, 2024, the Group employed **179 staff** (2023: 190), with remuneration policies consistent with market practices, offering retirement benefits, medical, and life insurance[98](index=98&type=chunk)[104](index=104&type=chunk) - The Board does not recommend a final dividend for the reporting year (2023: nil)[97](index=97&type=chunk)[103](index=103&type=chunk) [Other Financial Information](index=14&type=section&id=Other%20Financial%20Information) The Group faces foreign exchange risks from RMB, GBP, EUR, or USD fluctuations, currently without a hedging policy; the company adopts prudent financial management, closely monitoring liquidity; no material investments, acquisitions, or disposals of subsidiaries, capital commitments, or contingent liabilities occurred during the period; certain bank deposits and life insurance policies are pledged for banking facilities - The Group faces foreign exchange risks from fluctuations in RMB, GBP, EUR, or USD, but currently has no hedging policy; management will consider hedging when necessary[106](index=106&type=chunk)[113](index=113&type=chunk) - The company adopts a prudent financial management approach, managing liquidity risk through continuous credit assessment and monitoring of liquidity positions[107](index=107&type=chunk)[114](index=114&type=chunk) - As of March 31, 2024, the Group had no material investments, significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any capital commitments or significant contingent liabilities[108](index=108&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - As of March 31, 2024, the Group pledged certain bank deposits and investments in life insurance policies to secure general banking facilities[110](index=110&type=chunk)[117](index=117&type=chunk) [Principal Risks and Uncertainties](index=15&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group identified several principal risks, including poor project management leading to delays and cost overruns, inaccurate tender cost assessments, over-reliance on a few major clients, challenges from talent drain in Hong Kong, and potential legal risks and reputational damage from failing to maintain high quality and safety standards; the company adopted a three-tier risk management approach to identify, assess, mitigate, and respond to these risks - Principal risks include: poor project management leading to delays and cost overruns, damaging reputation and client relationships[124](index=124&type=chunk) - Inaccurate assessment of tender project costs and complexities may impact project financial viability[124](index=124&type=chunk) - Over-reliance on a few major clients, potentially leading to significant revenue impact due to client loss or downsizing[124](index=124&type=chunk) - Talent drain in Hong Kong poses a challenge to achieving long-term goals; the company needs to develop, attract, and retain employees with required capabilities[124](index=124&type=chunk) - Failure to effectively supervise subcontractors and maintain high quality and safety standards may lead to legal risks, potential penalties, and loss of tender opportunities[124](index=124&type=chunk) - The company has adopted a three-tier risk management approach, involving operational units, management, and the Risk Management Committee, to identify, assess, mitigate, and respond to risks, with a risk register for tracking and monitoring[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) [Directors and Senior Management](index=16&type=section&id=Directors%20and%20Senior%20Management) This section provides biographical details of the Executive Directors, Independent Non-executive Directors, and senior management, outlining their roles, experience, and family relationships within the company [Executive Directors](index=16&type=section&id=Executive%20Directors) Executive Directors include Chairman Mr. Luk Kam Ming, with over **50 years** of M&E engineering experience, responsible for overall strategic planning and financial management; Mr. Luk Kwai Nung serves as CEO, overseeing overall business operations and strategy execution; Mr. Luk Yin Cheung supervises operational support and procurement; all three executive directors are family members - Mr. Luk Kam Ming (**77 years old**) is an Executive Director and Chairman of the Board, with over **50 years** of M&E engineering experience, specializing in automated toll and railway traffic monitoring system development, responsible for the Group's overall strategic planning and financial management[125](index=125&type=chunk)[126](index=126&type=chunk)[129](index=129&type=chunk) - Mr. Luk Kwai Nung (**47 years old**) is an Executive Director and CEO, responsible for managing the Group's overall business operations and development, executing business strategies, and possessing extensive process management experience across various departments at KML Technology Engineering[132](index=132&type=chunk)[133](index=133&type=chunk)[139](index=139&type=chunk) - Mr. Luk Yin Cheung (**45 years old**) is an Executive Director, overseeing the Group's operational support, including procurement and sourcing, with extensive experience in occupational safety training, procurement, inventory, and logistics management[136](index=136&type=chunk)[137](index=137&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - Mr. Luk Kam Ming is the father of Mr. Luk Kwai Nung and Mr. Luk Yin Cheung; Mr. Luk Yin Cheung is the spouse of Ms. Wu Siu Wai, the Company Secretary, indicating family relationships within the Board[128](index=128&type=chunk)[130](index=130&type=chunk)[135](index=135&type=chunk)[140](index=140&type=chunk)[143](index=143&type=chunk)[148](index=148&type=chunk) [Independent Non-executive Directors](index=18&type=section&id=Independent%20Non-executive%20Directors) Independent Non-executive Directors include Mr. Lau On Kwok, Mr. Lo Wing Chi, and Dr. Tse Chi Keung; Mr. Lau is experienced in financial management, corporate governance, and direct investment; Mr. Lo is experienced in financial management and professional accounting; Dr. Tse is a Chair Professor of Electronic Engineering at City University of Hong Kong, with a strong academic and research background - Mr. Lau On Kwok (**57 years old**) is an Independent Non-executive Director and Chairman of the Audit Committee, with extensive experience in financial management, corporate governance, and direct investment[144](index=144&type=chunk)[145](index=145&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Mr. Lo Wing Chi (**54 years old**) is an Independent Non-executive Director and Chairman of the Risk Management Committee, with extensive experience in financial management and professional accounting[154](index=154&type=chunk)[155](index=155&type=chunk)[159](index=159&type=chunk) - Dr. Tse Chi Keung (**59 years old**) is an Independent Non-executive Director and Chairman of the Remuneration Committee, a Chair Professor of Electronic Engineering at City University of Hong Kong, renowned in academic research and engineering, and a recipient of the IEEE Technical Achievement Award[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [Senior Management and Company Secretary](index=20&type=section&id=Senior%20Management%20and%20Company%20Secretary) Senior management includes Mr. Tung Tsz On, Chief Operating Officer, responsible for R&D, planning, and project execution; Mr. Wong Chun Hung, Financial Controller, responsible for corporate financial matters and capital management; and Ms. Wu Siu Wai, Company Secretary, responsible for company secretarial, HR, and administrative duties - Mr. Tung Tsz On (**54 years old**) is the Group's Chief Operating Officer, responsible for R&D, planning, formulating, and overseeing project execution, providing daily technical and expert advice, promoted in August 2023[163](index=163&type=chunk)[164](index=164&type=chunk)[169](index=169&type=chunk) - Mr. Wong Chun Hung (**39 years old**) is the Group's Financial Controller, primarily responsible for overall corporate financial matters and capital management, joined in October 2023, with extensive accounting and finance experience[172](index=172&type=chunk)[173](index=173&type=chunk)[179](index=179&type=chunk) - Ms. Wu Siu Wai (**44 years old**) is the Company Secretary, responsible for company secretarial matters, human resources, and administrative duties, meeting the qualification requirements of the GEM Listing Rules[175](index=175&type=chunk)[176](index=176&type=chunk)[180](index=180&type=chunk) [Report of Directors](index=22&type=section&id=Report%20of%20Directors) The Report of Directors covers general company information, business and operational review, environmental and social commitments, client and supplier concentration, capital and governance matters, and details on directors' and major shareholders' interests [General Information](index=22&type=section&id=General%20Information%20-%20Report%20of%20Directors) The company's principal business is investment holding, with subsidiaries primarily providing M&E engineering solutions and services; the Group recorded a loss for the reporting year, and the Board does not recommend a final dividend; share transfer registration will be suspended from August 2 to August 7, 2024, to determine eligibility for the AGM - The Company's principal business is investment holding, with its subsidiaries primarily engaged in providing M&E engineering solutions and services[185](index=185&type=chunk)[190](index=190&type=chunk) - The Board does not recommend a final dividend for the reporting year (2023: nil)[187](index=187&type=chunk)[192](index=192&type=chunk) - To determine shareholders eligible to attend the Annual General Meeting, the company will suspend share transfer registration from August 2 to August 7, 2024 (both dates inclusive)[188](index=188&type=chunk)[193](index=193&type=chunk) [Business and Operational Review](index=23&type=section&id=Business%20and%20Operational%20Review%20-%20Report%20of%20Directors) The Group is committed to environmental protection and sustainable development, complying with relevant environmental laws during the reporting year; the company maintains good relationships with employees, clients, and suppliers, with no labor disputes; sales to the top five clients accounted for **90.6%** of total revenue, and to the largest client **79.6%**, indicating high client concentration; purchases from the top five suppliers accounted for **50.2%** of total purchases - The Group is committed to environmental protection by avoiding pollution, mitigating negative climate change impacts, and enhancing sustainability, complying with relevant environmental laws and regulations during the reporting year[197](index=197&type=chunk)[198](index=198&type=chunk)[202](index=202&type=chunk) - The Group maintains good working relationships with employees, with no labor disputes during the reporting year, attracting talent by offering competitive compensation, benefits, and training[206](index=206&type=chunk)[210](index=210&type=chunk) - The Group's clients primarily include public transport operators in Hong Kong and Taiwan, and various Hong Kong government departments, maintaining a business relationship with its largest client since **1978**[207](index=207&type=chunk)[211](index=211&type=chunk) FY2024 Key Customer and Supplier Concentration | Metric | FY2024 (%) | FY2023 (%) | | :--- | :--- | :--- | | Sales to Top 5 Clients as % of Total Revenue | 90.6 | 90.4 | | Sales to Largest Client as % of Total Revenue | 79.6 | 74.6 | | Purchases from Top 5 Suppliers as % of Total Purchases | 50.2 | 39.1 | | Purchases from Largest Supplier as % of Total Purchases | 10.9 | 10.4 | [Capital and Governance Matters](index=25&type=section&id=Capital%20and%20Governance%20Matters) During the period, the Group's property, plant, and equipment changed, share capital remained constant, and distributable reserves were approximately **HKD 18.7 million**; the Group had **HKD 15 million** in outstanding bank borrowings; Board members changed, and independent non-executive directors' independence was confirmed; the company has share option and share award schemes to incentivize employees; a lease agreement with related party To Yuen Limited for its Hong Kong headquarters and workshop constituted a connected transaction - As of March 31, 2024, the company's issued share capital was **HKD 4,049,600**, divided into **404,960,000 shares** of **HKD 0.01** par value each[95](index=95&type=chunk)[101](index=101&type=chunk) - As of March 31, 2024, the company's distributable reserves to shareholders were approximately **HKD 18.7 million** (2023: HKD 21 million)[222](index=222&type=chunk)[230](index=230&type=chunk) - As of March 31, 2024, the Group had **HKD 15 million** in outstanding bank borrowings (2023: nil)[223](index=223&type=chunk)[231](index=231&type=chunk) - Board members changed during the reporting year, with Mr. Chan Chak Lam and Mr. Yu Wing Luk retiring on August 7, 2023; the company has received independence confirmations from its independent non-executive directors[233](index=233&type=chunk)[234](index=234&type=chunk)[238](index=238&type=chunk)[241](index=241&type=chunk)[243](index=243&type=chunk) Directors' and Chief Executives' Interests and Short Positions in Shares (as of March 31, 2024) | Name | Capacity/Nature of Interest | Number of Shares/Related Shares Held/Owned | Long/Short Position | Approx. % Shareholding in Company | | :--- | :--- | :--- | :--- | :--- | | Mr. Luk Kam Ming | Beneficial Owner; Spouse's Interest | 157,000,000 | L | 38.77 | | Mr. Luk Kwai Nung | Interest in Controlled Corporation | 138,000,000 | L | 34.08 | | Mr. Luk Yin Cheung | Interest in Controlled Corporation; Spouse's Interest | 139,000,000 | L | 34.32 | Major Shareholders' Interests and Short Positions in Shares (as of March 31, 2024) | Name | Capacity/Nature of Interest | Number of Shares/Related Shares Held/Owned | Long/Short Position | Approx. % Shareholding in Company | | :--- | :--- | :--- | :--- | :--- | | KML Holdings | Beneficial Owner | 138,000,000 | L | 34.08 | | Ms. Leung | Beneficial Owner; Spouse's Interest | 157,000,000 | L | 38.77 | | Ms. Chan Pui Kwan | Spouse's Interest | 138,000,000 | L | 34.08 | | Ms. Wu | Beneficial Owner; Spouse's Interest | 139,000,000 | L | 34.32 | - The company has a share option scheme and a share award scheme to recognize and incentivize directors and employees; as of the report date, the share option scheme has approximately **3 years and 3 months** remaining, and the share award scheme approximately **9 years and 4 months** remaining[270](index=270&type=chunk)[271](index=271&type=chunk)[280](index=280&type=chunk)[290](index=290&type=chunk)[304](index=304&type=chunk)[310](index=310&type=chunk) - During the reporting year, the Group entered into a lease agreement with related party To Yuen Limited for its Hong Kong headquarters and workshop, constituting a connected transaction[326](index=326&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk)[332](index=332&type=chunk)[333](index=333&type=chunk)[334](index=334&type=chunk) [Corporate Governance Report](index=41&type=section&id=Corporate%20Governance%20Report) This report outlines the company's corporate governance framework, board operations, committee structures, financial reporting, risk management, and other governance matters, demonstrating adherence to GEM Listing Rules [Corporate Governance Framework](index=41&type=section&id=Corporate%20Governance%20Framework) The company is committed to high corporate governance standards, adopting and complying with the GEM Listing Rules' Corporate Governance Code; the Board is responsible for overall leadership, strategic decisions, and business monitoring, delegating daily management, and its composition meets GEM Listing Rules, with a Board Diversity Policy in place - The company has adopted the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules and complied with all applicable provisions during the reporting year[357](index=357&type=chunk)[361](index=361&type=chunk) - The Board is responsible for the Group's overall leadership, strategic decision-making, and business monitoring, having delegated day-to-day management responsibilities to senior management[358](index=358&type=chunk)[362](index=362&type=chunk) - The Board composition complies with GEM Listing Rules, requiring at least three independent non-executive directors, with at least one possessing professional accounting or relevant financial management expertise, and independent non-executive directors constituting at least one-third of the Board[367](index=367&type=chunk)[368](index=368&type=chunk)[374](index=374&type=chunk)[375](index=375&type=chunk) - The company has adopted a Board Diversity Policy, considering factors such as age, culture, educational background, professional experience, skills, and knowledge to ensure a diverse Board[369](index=369&type=chunk)[375](index=375&type=chunk)[424](index=424&type=chunk)[425](index=425&type=chunk) [Board Operations and Committees](index=42&type=section&id=Board%20Operations%20and%20Committees) The company provides induction training and continuous professional development for new directors; the roles of Chairman and CEO are separate; the Board holds regular meetings and has Audit, Nomination, Remuneration, and Risk Management Committees, each with clear responsibilities and operating procedures to ensure effective corporate governance, with good attendance rates among Board members - The company provides necessary induction training and information to new directors, regularly updates on the latest developments in GEM Listing Rules and other laws, and encourages directors to participate in continuous professional development seminars[379](index=379&type=chunk)[380](index=380&type=chunk)[381](index=381&type=chunk) - The roles of Chairman and Chief Executive Officer are separate, held by Mr. Luk Kam Ming and Mr. Luk Kwai Nung respectively, with clearly defined responsibilities[384](index=384&type=chunk)[385](index=385&type=chunk) - The Board holds at least **four meetings** annually, ensuring meeting notices and documents are sent in advance, with minutes thoroughly documenting discussions and decisions[402](index=402&type=chunk)[403](index=403&type=chunk)[404](index=404&type=chunk)[405](index=405&type=chunk) FY2024 Board and General Meeting Attendance | Director | Board Meetings (Attended/Held) | General Meetings (Attended/Held) | | :--- | :--- | :--- | | Mr. Luk Kam Ming | 4/4 | 1/1 | | Mr. Luk Kwai Nung | 4/4 | 1/1 | | Mr. Luk Yin Cheung | 4/4 | 1/1 | | Mr. Lau On Kwok | 4/4 | 1/1 | | Mr. Lo Wing Chi | 4/4 | 1/1 | | Dr. Tse Chi Keung | 3/4 | 1/1 | - The Audit Committee is responsible for reviewing the relationship with auditors, examining financial statements, and assessing the effectiveness of financial reporting, risk management, and internal control systems[411](index=411&type=chunk)[413](index=413&type=chunk)[414](index=414&type=chunk) - The Nomination Committee is responsible for reviewing Board structure, identifying suitable director candidates, assessing the independence of independent non-executive directors, and making recommendations on director appointments and succession planning[416](index=416&type=chunk)[418](index=418&type=chunk)[421](index=421&type=chunk) - The Remuneration Committee is responsible for recommending remuneration policies and structures for directors and senior management, and reviewing and approving management's remuneration proposals[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk) - The Risk Management Committee is responsible for reviewing the Group's risk management system, including risk, capital, and liquidity management frameworks, and annually reviewing changes in the nature and extent of significant risks and the effectiveness of internal control systems[440](index=440&type=chunk)[441](index=441&type=chunk)[444](index=444&type=chunk) [Financial Reporting and Risk Management](index=52&type=section&id=Financial%20Reporting%20and%20Risk%20Management) The Board confirms its responsibility for preparing true and fair financial statements and ensuring robust risk management and internal control systems; the company has an inside information disclosure policy for timely, confidential disclosure of material information and a dividend policy that considers various factors for dividend distribution - The Board confirms its responsibility for preparing true and fair financial statements and ensuring the Group establishes and maintains robust risk management and internal control systems[452](index=452&type=chunk)[455](index=455&type=chunk) - The company has established an inside information disclosure policy, ensuring timely public disclosure of inside information as soon as reasonably practicable, and strict confidentiality prior to disclosure[461](index=461&type=chunk)[463](index=463&type=chunk)[465](index=465&type=chunk)[468](index=468&type=chunk) - The company has adopted a dividend policy, where the Board considers financial performance, retained earnings, working capital needs, future expansion plans, liquidity position, business strategy, and shareholder returns when deciding on dividend distribution[464](index=464&type=chunk)[466](index=466&type=chunk)[469](index=469&type=chunk)[470](index=470&type=chunk)[478](index=478&type=chunk) [Other Governance Matters](index=55&type=section&id=Other%20Governance%20Matters) During the reporting year, Ernst & Young provided audit and non-audit services; Ms. Wu Siu Wai, Company Secretary, handled corporate governance and completed professional training; the company prioritizes effective shareholder communication via general meetings and its website, ensuring shareholder rights are protected with all resolutions voted by poll; shareholders can requisition extraordinary general meetings or propose resolutions per the Articles of Association FY2024 Auditor Remuneration | Service Type | Amount (Thousand HKD) | | :--- | :--- | | Audit Services | 1,390 | | Non-Audit Services | 934 | - Ms. Wu Siu Wai, the Company Secretary, advises the Board on corporate governance matters and completed no less than **15 hours** of relevant professional training during the reporting year[472](index=472&type=chunk)[476](index=476&type=chunk) - The company promotes effective communication with shareholders through its shareholder communication policy and provides updated information on its website; general meetings offer shareholders direct communication opportunities with directors[473](index=473&type=chunk)[474](index=474&type=chunk)[477](index=477&type=chunk) - To protect shareholder interests, all general meeting resolutions are voted on by poll, with results published promptly; shareholders may requisition extraordinary general meetings or propose resolutions according to the Articles of Association[482](index=482&type=chunk)[483](index=483&type=chunk)[488](index=488&type=chunk)[489](index=489&type=chunk) [Independent Auditor's Report](index=57&type=section&id=Independent%20Auditor's%20Report) This report presents the independent auditor's opinion on the consolidated financial statements, highlighting key audit matters, and outlining the responsibilities of both directors and auditors [Auditor's Opinion and Basis](index=57&type=section&id=Auditor's%20Opinion%20and%20Basis) Ernst & Young issued an unmodified opinion on KML Technology Group Limited's consolidated financial statements for the year ended March 31, 2024, deeming them to present a true and fair view of the Group's financial position, performance, and cash flows, in compliance with HKFRS and the Hong Kong Companies Ordinance; the audit was conducted according to Hong Kong Standards on Auditing, with auditor independence maintained - Ernst & Young issued an unmodified opinion on the Group's consolidated financial statements for the year ended March 31, 2024[493](index=493&type=chunk)[497](index=497&type=chunk) - The consolidated financial statements present a true and fair view of the Group's consolidated financial position, financial performance, and cash flows in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA, and comply with the disclosure requirements of the Hong Kong Companies Ordinance[493](index=493&type=chunk)[497](index=497&type=chunk) - The audit was conducted in accordance with Hong Kong Standards on Auditing issued by the HKICPA; the auditor is independent of the Group and fulfilled professional ethical responsibilities[494](index=494&type=chunk)[498](index=498&type=chunk) [Key Audit Matters](index=57&type=section&id=Key%20Audit%20Matters) Key audit matters for this period include contract revenue and costs from traffic critical system solutions, mobile ticketing and digital payment solutions and services, and M&E technology solutions and engineering services; revenue recognition for these services uses the input method, based on the ratio of actual costs to budgeted contract costs, where budgeted costs involve significant management estimates and uncertainties - Key audit matters include contract revenue and contract costs from traffic critical system solutions, mobile ticketing and digital payment solutions and services, and M&E technology solutions and engineering services[501](index=501&type=chunk)[504](index=504&type=chunk) - Revenue for these services is recognized using the input method, based on the proportion of actual costs incurred to the estimated total contract costs for completing the services, where estimated contract costs involve significant management judgment and uncertainty[502](index=502&type=chunk)[503](index=503&type=chunk)[505](index=505&type=chunk)[506](index=506&type=chunk) - Audit procedures included understanding the estimation method for budgeted contract costs, sampling management's estimates, recalculating recognized revenue, and sampling contract costs in direct labor, subcontractor payments, and supplier invoices[508](index=508&type=chunk) [Responsibilities and Other Information](index=59&type=section&id=Responsibilities%20and%20Other%20Information) Directors are responsible for preparing true and fair consolidated financial statements and ensuring effective internal controls; auditors' responsibility is to obtain reasonable assurance, identify material misstatement risks, evaluate accounting policies and going concern assumptions, and communicate audit scope and findings with the Audit Committee; no material inconsistencies were found between other information and the consolidated financial statements in the report - The company's directors are responsible for preparing true and fair consolidated financial statements and for internal controls necessary to ensure financial statements are free from material misstatement[512](index=512&type=chunk)[517](index=517&type=chunk) - The auditor's responsibility is to obtain reasonable assurance, identify and assess risks of material misstatement, understand internal controls, evaluate accounting policies and going concern assumptions, and communicate audit scope and significant findings with the Audit Committee[520](index=520&type=chunk)[522](index=522&type=chunk)[523](index=523&type=chunk)[525](index=525&type=chunk)[526](index=526&type=chunk)[527](index=527&type=chunk)[531](index=531&type=chunk) - The auditor has read other information in the annual report and found no material inconsistencies or misstatements with the consolidated financial statements or audit knowledge[511](index=511&type=chunk)[516](index=516&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=62&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's financial performance for the year, detailing revenue, cost of sales, gross profit, other income, expenses, and net loss, culminating in total comprehensive loss attributable to owners [Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary](index=62&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20Summary) For the year ended March 31, 2024, the Group's revenue grew to **HKD 194.1 million**, with gross profit significantly increasing to **HKD 29.9 million**; despite higher administrative expenses, net loss for the year narrowed substantially to **HKD 13.8 million** due to impairment loss reversals and no onerous contract provisions Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | 2024 (Thousand HKD) | 2023 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 194,111 | 153,409 | | Cost of Sales | (164,176) | (143,523) | | Gross Profit | 29,935 | 9,886 | | Other Income | 3,729 | 7,326 | | Reversal of Impairment Loss on Financial & Contract Assets / (Impairment Loss) Net | 50 | (5,221) | | Administrative Expenses | (46,473) | (43,479) | | Finance Costs | (810) | (178) | | Loss Before Tax | (13,944) | (32,399) | | Income Tax Credit | 151 | 177 | | Loss for the Year & Total Comprehensive Loss Attributable to Owners of the Company | (13,793) | (32,222) | | Basic Loss Per Share | HK(3.43) HK cents | HK(8.03) HK cents | [Consolidated Statement of Financial Position](index=63&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the Group's financial position at year-end, detailing assets, liabilities, and equity, reflecting the company's financial health and structure [Consolidated Statement of Financial Position Summary](index=63&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20Summary) As of March 31, 2024, the Group's total assets slightly decreased, with non-current assets down and current assets slightly up; current liabilities significantly rose due to increased bank borrowings and contract liabilities, leading to a reduction in net current assets and total equity; net assets stood at **HKD 136.3 million** Consolidated Statement of Financial Position Key Data | Metric | 2024 (Thousand HKD) | 2023 (Thousand HKD) | | :--- | :--- | :--- | | Total Non-Current Assets | 14,541 | 21,184 | | Total Current Assets | 188,884 | 185,473 | | Total Current Liabilities | 66,957 | 53,596 | | Total Non-Current Liabilities | 168 | 3,417 | | Net Assets | 136,300 | 149,644 | | Share Capital | 4,050 | 4,050 | | Reserves | 132,250 | 145,594 | | Total Equity | 136,300 | 149,644 | - As of March 31, 2024, total current liabilities increased to **HKD 66.96 million**, primarily due to **HKD 15 million** in bank borrowings and an increase in contract liabilities to **HKD 15.88 million**[534](index=534&type=chunk) - As of March 31, 2024, bank balances and cash decreased to **HKD 45.57 million** (2023: HKD 74.02 million), while pledged bank deposits increased to **HKD 24.66 million** (2023: HKD 14 million)[534](index=534&type=chunk) [Consolidated Statement of Changes in Equity](index=64&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement illustrates the changes in the Group's total equity over the reporting period, detailing the impact of net loss, share-based payments, and other equity movements [Consolidated Statement of Changes in Equity Summary](index=64&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity%20Summary) For the year ended March 31, 2024, the Group's total equity decreased from **HKD 149.6 million** to **HKD 136.3 million**, primarily due to a **HKD 13.8 million** loss for the year; equity-settled share option and share award arrangements increased the share-based payment reserve, partially offset by forfeited options and awards transferred to accumulated profits/losses Consolidated Statement of Changes in Equity Key Data | Metric | 2024 (Thousand HKD) | 2023 (Thousand HKD) | | :--- | :--- | :--- | | Total Equity at Beginning of Year | 149,644 | 189,427 | | Loss & Total Comprehensive Loss for the Year | (13,793) | (32,222) | | Equity-settled Share Option Scheme | 202 | — | | Equity-settled Share Award Scheme | 247 | 494 | | Forfeiture of Share Options | (43) | — | | Forfeiture of Share Awards | (53) | (41) | | Vesting of Share Awards | (18) | (391) | | Total Equity at End of Year | 136,300 | 149,644 | - As of March 31, 2024, total equity was **HKD 136.3 million**, a decrease of **HKD 13.34 million** from the prior year, primarily due to the loss for the year[536](index=536&type=chunk) - Share-based payment reserve increased due to equity-settled share option expense of **HKD 0.202 million** and share award expense of **HKD 0.247 million**, but partially offset by forfeiture of share options and share awards transferred to accumulated profits/losses[536](index=536&type=chunk) [Consolidated Statement of Cash Flows](index=65&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the Group's cash inflows and outflows from operating, investing, and financing activities for the year, providing insights into liquidity and cash management [Consolidated Statement of Cash Flows Summary](index=65&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20Summary) For the year ended March 31, 2024, the Group generated a net cash outflow of **HKD 39.64 million** from operating activities, mainly due to increased trade receivables and contract assets; investing activities generated a net cash inflow of **HKD 2.49 million**, and financing activities a net cash inflow of **HKD 8.71 million**, primarily from new bank loans; overall cash and cash equivalents decreased by **HKD 28.45 million** Consolidated Statement of Cash Flows Key Data | Cash Flow Category | 2024 (Thousand HKD) | 2023 (Thousand HKD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (39,643) | 10,235 | | Net Cash Generated from Investing Activities | 2,485 | 2,649 | | Net Cash Generated From/(Used In) Financing Activities | 8,706 | (14,260) | | Net Decrease in Cash and Cash Equivalents | (28,452) | (1,376) | | Cash and Cash Equivalents at End of Year | 45,569 | 74,021 | - Net cash outflow from operating activities was **HKD 39.64 million**, primarily impacted by an increase in trade receivables of **HKD 25.03 million** and contract assets of **HKD 9.62 million**[539](index=539&type=chunk) - Net cash inflow from financing activities was **HKD 8.71 million**, mainly from new bank loans of **HKD 21 million**, partially offset by repayment of bank loans of **HKD 6 million** and principal portion of lease payments of **HKD 5.84 million**[539](index=539&type=chunk) - As of March 31, 2024, cash and cash equivalents were **HKD 45.57 million**, a net decrease of **HKD 28.45 million** from the beginning of the year[541](index=541&type=chunk) [Notes to Consolidated Financial Statements](index=67&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes to the consolidated financial statements provide detailed explanations of the Group's financial position, covering changes in accounting policies, significant judgments and estimates, revenue and segment information, other income and gains/losses, finance costs, directors' and employees' remuneration, loss before tax, income tax, dividends, loss per share, property, plant and equipment, leases, financial assets, trade receivables, contract assets and liabilities, bank deposits, payables, bank borrowings, provisions for contract works, deferred tax, joint ventures, share capital, reserves, commitments, related party transactions, retirement benefit schemes, capital risk management, fair value of financial instruments and fair value hierarchy, performance guarantees, notes to cash flow statement, contingent liabilities, share option scheme, share award scheme, and the company's statement of financial position [Financial Summary](index=133&type=section&id=Financial%20Summary) This section presents a five-year summary of the Group's key financial performance indicators, including revenue, profit/loss, assets, liabilities, and equity, offering a historical perspective [Five-Year Financial Performance](index=133&type=section&id=Five-Year%20Financial%20Performance) The Group's financial performance over the past five years (FY2020-2024) shows revenue peaking in 2021, then declining before recovering in 2024; pre-tax profit recorded losses in 2022 and 2023, with a narrowed loss in 2024; total assets and liabilities fluctuated, while equity decreased in 2023 and 2024 Five-Year Financial Summary (Thousand HKD) | Metric | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 194,111 | 153,409 | 162,559 | 224,839 | 224,228 | | Loss Before Tax / Profit Before Tax | (13,944) | (32,399) | 9,653 | 36,457 | 26,535 | | Income Tax Credit / (Expense) | 151 | 177 | (1,768) | (4,460) | (4,923) | | Loss / Profit and Total Comprehensive Loss / Income for the Year Attributable to Owners of the Company | (13,793) | (32,222) | 7,885 | 31,997 | 21,612 | | Total Assets | 203,425 | 206,657 | 233,246 | 253,423 | 236,418 | | Total Liabilities | (67,125) | (57,013) | (43,819) | (61,612) | (70,232) | | Equity Attributable to Owners of the Company | 136,300 | 149,644 | 189,427 | 191,811 | 166,186 |

Financial Performance - The group's revenue for the fiscal year ending March 31, 2024, was approximately HKD 194.1 million, an increase of 26.5% from HKD 153.4 million in the previous year[5][10]. - Gross profit for the fiscal year was approximately HKD 29.9 million, significantly up from HKD 9.9 million in the previous year, reflecting a gross margin improvement[6][10]. - The net loss for the fiscal year was approximately HKD 13.8 million, a reduction from a net loss of HKD 32.2 million in the previous year, indicating improved financial performance[7][10]. - The company reported a basic and diluted loss per share of HKD 3.43, improved from HKD 8.03 in the previous year[10]. - The company reported a pre-tax loss of HKD 13,793,000 for 2024, a decrease from a loss of HKD 32,222,000 in 2023[35]. - The company reported a loss attributable to ordinary shareholders of HKD 13,793,000 for 2024, compared to a loss of HKD 32,222,000 in 2023, indicating an improvement in financial performance[37]. - The company recorded a net loss attributable to owners of approximately HKD 13.8 million for the reporting year, a decrease from HKD 32.2 million in the previous year, primarily due to increased revenue and reduced impairment losses[73]. Revenue Breakdown - Revenue from mobile ticketing and digital payment solutions surged to HKD 54,662,000, up 176.5% from HKD 19,782,000 in the previous year[20]. - The engineering services segment generated HKD 102,750,000 in revenue, an increase of 27.9% compared to HKD 80,336,000 in 2023[20]. - Revenue recognized over time amounted to HKD 193,094,000, representing a 30.5% increase from HKD 147,935,000 in 2023[22]. - Revenue from Hong Kong customers was HKD 193,331,000, up from HKD 147,562,000 in 2023, reflecting a growth of 30.9%[26]. - The revenue from electromechanical technical solutions and engineering services was approximately HKD 102.8 million, representing a 28.0% increase from HKD 80.3 million in the previous year[59]. - The revenue from the transportation key systems solutions segment decreased by approximately 57.1% to HKD 10.5 million, down from HKD 24.5 million in the previous year due to the completion of several large projects[53]. Assets and Liabilities - Trade receivables increased to HKD 38.6 million from HKD 29.0 million, indicating a growth in sales and collection efforts[12]. - The total assets decreased to HKD 136.5 million from HKD 153.1 million, primarily due to a reduction in non-current assets[12][13]. - The company's cash and cash equivalents decreased to HKD 45.6 million from HKD 74.0 million, reflecting changes in liquidity management[12]. - The total equity of the company decreased to HKD 136.3 million from HKD 149.6 million, indicating a decline in shareholder value[13]. - Trade payables and retention money totaled HKD 12,146,000 in 2024, an increase from HKD 10,115,000 in 2023, with trade payables within 30 days rising to HKD 6,059,000[43]. - As of March 31, 2024, the company had outstanding borrowings of HKD 15.0 million, with a debt-to-equity ratio of 11.0%[74]. Dividends and Shareholder Returns - The board of directors did not recommend a final dividend for the fiscal year, consistent with the previous year[8]. - The company did not declare any dividends for the year 2024, while HKD 8,050,000 was distributed in 2023[33]. - The board of directors did not recommend the payment of a final dividend for the reporting year, consistent with the previous year[78]. Operational Insights - The group is primarily engaged in providing electromechanical engineering solutions and services, focusing on enhancing operational efficiency and market presence[16]. - The company anticipates stable demand for electromechanical engineering services in the transportation sector due to ongoing railway construction and upgrades[64]. - The company plans to allocate more resources to explore and expand its business in the electric vehicle charging installation market, anticipating strong demand[67]. - The company aims to diversify its market presence by expanding mobile ticketing and digital payment solutions to regions such as the Greater Bay Area, Taiwan, and Southeast Asia[67]. - The company is actively seeking innovative and advanced solutions to meet the expected demand for 140,000 new electric vehicle chargers by 2027/28 under the EHSS program[65]. Staffing and Expenses - Administrative expenses increased by approximately 6.9% to HKD 46.5 million, up from HKD 43.5 million, mainly due to rising employee costs[72]. - The company employed 179 staff as of March 31, 2024, a decrease from 190 staff in the previous year[80]. Other Financial Information - Financing costs increased significantly to HKD 810,000 in 2024, compared to HKD 178,000 in 2023[27]. - The company confirmed stock option expenses of HKD 202,000 for the year ending March 31, 2024, with 12,200,000 unexercised stock options remaining[47]. - The share reward plan granted 2,410,000 shares with a fair value of HKD 383,000 during the year ending March 31, 2023, with recognized expenses of HKD 247,000 for the year ending March 31, 2024[50]. - The company has not made any significant investments or acquisitions in other companies during the reporting year[84][85]. - The company has not implemented any hedging policies to manage foreign currency risks, which primarily arise from fluctuations in RMB, GBP, EUR, and USD[81]. - The company maintains a robust treasury policy, ensuring healthy liquidity throughout the reporting year[82]. Reporting and Announcements - Annual performance announcement and the 2023/2024 annual report will be published on the Stock Exchange and the company's website[99]. - The announcement will be available for at least seven days on the Stock Exchange website and the company's website[100]. - No significant events reported after the end of the fiscal year[98].

Financial Performance - The Group's revenue for the six months ended September 30, 2023, was approximately HK$93.4 million, an increase of approximately HK$18.7 million or 25.0% compared to HK$74.7 million for the same period in 2022[20]. - The gross profit for the Reporting Period was approximately HK$17.1 million, slightly down from approximately HK$17.9 million in 2022[20]. - The net loss for the Reporting Period amounted to approximately HK$3.2 million, compared to a net loss of approximately HK$0.8 million in 2022[21]. - The Board does not recommend a payment of an interim dividend for the Reporting Period, consistent with the previous year[21]. - The Group's financial performance indicates a significant revenue growth despite an increase in net loss, highlighting potential challenges in cost management[20][21]. - Revenue for the six months ended September 30, 2023, was HK$93,426,000, an increase of 25% compared to HK$74,692,000 for the same period in 2022[26]. - Gross profit decreased to HK$17,116,000, down 4% from HK$17,852,000 year-over-year[26]. - Loss before tax for the period was HK$3,135,000, compared to a loss of HK$717,000 in the previous year, representing a significant increase in losses[26]. - Loss attributable to owners of the company was HK$3,248,000, compared to HK$767,000 in the same period last year, indicating a rise in net losses[26]. - Basic and diluted loss per share for the period was HK(0.81) cents, compared to HK(0.19) cents in the prior year, reflecting a worsening financial position[26]. Assets and Liabilities - Trade receivables increased to HK$36,852,000 from HK$29,000,000, showing a growth of 27%[28]. - Contract assets rose significantly to HK$63,728,000, up from HK$43,952,000, marking a 45% increase[28]. - Total current assets amounted to HK$186,378,000, slightly up from HK$185,473,000 as of March 31, 2023[30]. - Total liabilities increased to HK$56,807,000 from HK$53,596,000, indicating a rise in financial obligations[30]. - Net assets decreased to HK$146,690,000 from HK$149,644,000, reflecting a decline in the company's equity position[30]. - The company’s total equity as of September 30, 2023, was HK$146,690,000, down from HK$180,813,000 a year earlier[32]. - The Group had approximately HK$75.1 million in bank balances and cash as of 30 September 2023, down from approximately HK$101.0 million as of 31 March 2023[152][156]. - The outstanding borrowings as of 30 September 2023 were HK$6.0 million, with a gearing ratio of 4.1%[153][157]. Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2023, was HK$29,559,000, a decline from the net cash generated of HK$11,780,000 in the previous year[36]. - The company raised a new bank loan of HK$6,000,000 during the reporting period, contributing to a net cash flow from financing activities of HK$3,048,000[36]. - Cash and cash equivalents at the end of the period decreased to HK$51,364,000 from HK$70,519,000 at the end of the same period in 2022[36]. - The Group obtained a new bank loan amounting to HK$6,000,000 during the current period, with an interest rate of Hong Kong Interbank Offered Rate plus 1.75% per annum[96]. Revenue Segments - Revenue from Mobile Ticketing and Digital Payment Solutions increased significantly to HK$25,881,000, up 239% from HK$7,615,000 in the previous year[53]. - The Group's revenue from Transportation Mission Critical System Solutions decreased to HK$5,331,000, down 68% from HK$16,585,000 in the previous year[53]. - Digital Fabrication and Maintenance Services revenue increased to HK$12,351,000, a rise of 6% from HK$11,619,000 in 2022[53]. - Sales of Products, Parts, and Components dropped significantly to HK$375,000, down 90% from HK$3,887,000 in the previous year[53]. - Revenue from the M&E Technology Solutions and Engineering Services segment was approximately HK$49.5 million, an increase from HK$35.0 million in 2022[122]. Operational Efficiency and Management - The Group is focusing on enhancing its market presence and exploring new product development to drive future growth[20]. - The management is committed to addressing the factors contributing to the net loss and aims to improve profitability in the upcoming periods[21]. - The financial results reflect the Group's ongoing efforts to adapt to market conditions and enhance operational efficiency[20]. - The Group's strategic initiatives may include market expansion and potential partnerships to leverage growth opportunities[20]. Employee and Administrative Expenses - Total employee benefit expenses decreased to HK$34,123,000 in 2023 from HK$35,233,000 in 2022, reflecting a reduction of approximately 3.1%[68]. - Administrative expenses decreased slightly from approximately HK$21.7 million to approximately HK$21.4 million[141][147]. Corporate Governance and Compliance - The Company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[181][184]. - The Audit Committee reviewed the unaudited condensed consolidated results for the reporting period and confirmed compliance with applicable accounting standards[183][186]. - The Group's financial risk management is conducted by the finance department under Board-approved policies, focusing on market, interest rate, credit, and liquidity risks[164]. Shareholding and Interests - As of September 30, 2023, Mr. KM Luk holds 157,000,000 shares, representing approximately 38.77% of the company's shareholding[195]. - Mr. KL Luk has an interest in 138,000,000 shares through a controlled corporation, accounting for about 34.08% of the company's shareholding[195]. - Mr. Luk Yin Cheung holds 139,000,000 shares, which is approximately 34.32% of the company's shareholding[195]. - The total number of issued shares as of September 30, 2023, is 404,960,000[199].

香港交易及結算所有限公司以及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 本公告的資料乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關高萌科技 集團有限公司（「本公司」，連同其附屬公司統稱「本集團」或「我們」）的資料；本公司董事（「董事」）願就 本公告共同及個別地承擔全部責任。董事在作出一切合理查詢後，確認就其所知及所信，本公告所 載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分，且並無遺漏其他事項，足以令致本公告 或其所載任何陳述產生誤導。 KML Technology Group Limited 高 萌 科 技 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8065） 截至二零二三年九月三十日止六個月的 中期業績公告 聯交所GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有 較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮 ...

Financial Performance - The Group's revenue for the three months ended June 30, 2023, was approximately HK$49.8 million, representing an increase of approximately HK$13.9 million or approximately 38.7% compared to HK$35.9 million for the same period in 2022[20]. - The gross profit for the Reporting Period amounted to approximately HK$11.0 million, up from approximately HK$8.4 million in 2022[20][23]. - The net profit for the Reporting Period was approximately HK$1.2 million, compared to approximately HK$0.7 million in 2022[21][24]. - Revenue for the three months ended June 30, 2023, was HK$49,822,000, representing a 38.6% increase from HK$35,942,000 in the same period of 2022[28]. - Gross profit for the same period was HK$10,974,000, up 30.5% from HK$8,419,000 year-over-year[28]. - Profit before tax increased to HK$1,362,000, a 69.1% rise compared to HK$805,000 in the previous year[28]. - Profit attributable to owners of the Company for the period was HK$1,211,000, which is a 73.0% increase from HK$700,000 in the same period last year[28]. - Basic and diluted earnings per share for the period were both HK$0.30 cents, compared to HK$0.18 cents in the prior year, reflecting a 66.7% increase[28]. Dividend Policy - The Board does not recommend a payment of an interim dividend for the Reporting Period, consistent with the previous year[21][25]. - The Group does not recommend the payment of any dividend for the reporting period, consistent with the previous year[57]. Revenue Segmentation - Revenue from Mobile Ticketing and Digital Payment Solutions increased significantly to HK$12,982,000, up 223.5% from HK$4,010,000 in the previous year[47]. - Revenue from the Transportation Mission Critical System Solutions segment decreased by approximately 52.9%, amounting to HK$3.2 million compared to HK$6.8 million in 2022[72][73]. - The Mobile Ticketing and Digital Payment Solutions segment saw a revenue increase of approximately 225.0%, reaching HK$13.0 million from HK$4.0 million in 2022[76][77]. - Revenue from the Digital Fabrication and Maintenance Services segment increased slightly to approximately HK$6.0 million from HK$5.5 million in 2022[80][81]. - The M&E Technology Solutions and Engineering Services segment generated revenue of approximately HK$27.4 million, an increase of approximately 58.4% from HK$17.3 million in 2022[83]. - Revenue from the Sales of Products, Parts and Components segment significantly decreased to approximately HK$0.2 million from HK$2.4 million in 2022[85]. - The revenue from the electromechanical technology solutions and engineering services segment was approximately HK$27.4 million, an increase of approximately 58.4% from HK$17.3 million in 2022, primarily due to the installation phase of several major projects[86]. Cost and Expenses - Administrative expenses slightly increased to HK$10,279,000 from HK$10,088,000, indicating a 1.9% rise year-over-year[28]. - Other income decreased to HK$799,000 from HK$3,324,000, a decline of 76.0% compared to the same period in 2022[28]. - Finance costs rose to HK$119,000 from HK$68,000, marking a 75.0% increase year-over-year[28]. - The cost of sales increased by approximately 41.1% from approximately HK$27.5 million in 2022 to approximately HK$38.8 million in the Reporting Period, mainly due to rising material and project staff costs[97]. Shareholding and Corporate Governance - As of June 30, 2023, Mr. KM Luk holds 157,000,000 shares, representing approximately 38.77% of the company's shareholding[119]. - Mr. KL Luk and Mr. YC Luk each have an interest in a controlled corporation, KML Holdings, which holds 138,000,000 shares, accounting for about 34.08% of the company's shareholding[125]. - The total number of issued shares as of June 30, 2023, is 404,960,000[122]. - Mr. CL Chan directly holds 5,000,000 shares, which is approximately 1.23% of the company's shareholding[119]. - Madam Leung, as a beneficial owner, has an interest in 157,000,000 shares, equivalent to 38.77% of the company's shareholding[125]. - Mr. YC Luk is deemed to be interested in an additional 1,000,000 shares through his spouse, increasing his total interest[122]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[117]. - No other directors or chief executives had any interest or short position in the shares or debentures of the company as of June 30, 2023[120]. - The interests of substantial shareholders include KML Holdings with 138,000,000 shares, representing 34.08% of the company[125]. - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests and short positions[123]. - Mr. KL Luk and Mr. YC Luk each own one common share in KML Holdings, representing 50% of the issued share capital carrying voting rights[129]. - Madam Woo is deemed to be interested in 138,000,000 shares held by Mr. YC Luk, along with direct holdings of 300,000 shares and options for up to 700,000 shares[129]. - During the reporting period, the company had no arrangements enabling directors to acquire benefits through shares or debentures[130]. - None of the directors or controlling shareholders engaged in any competing business during the reporting period[131]. Future Outlook - The Group anticipates challenges in the business environment in Hong Kong, including talent shortages and rising costs, which may negatively impact financial performance[90]. - The Group is exploring strategies to optimize its cost structure and enhance project execution capabilities through artificial intelligence technology[91]. - Future focus will be on catching up on delayed projects and prioritizing strategic opportunities, such as upcoming railway network extension projects in Hong Kong[92].

香港交易及結算所有限公司以及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 本公告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關高萌科技 集團有限公司（「本公司」，連同其附屬公司統稱「本集團」或「我們」）的資料；本公司董事（「董事」）願就 本公告的資料共同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所知及所信， 本公告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成份，且並無遺漏其他事項，足以令 致本公告或其所載任何陳述產生誤導。 KML Technology Group Limited 高 萌 科 技 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8065） 截至二零二三年六月三十日止三個月的 第一季度業績公告 聯交所 GEM 的特色 GEM 的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有 較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 ...

Financial Performance - The Group's revenue for the Reporting Period decreased by approximately HK$9.2 million, or approximately 5.7%, from approximately HK$162.6 million for the year ended 31 March 2022 to approximately HK$153.4 million for the Reporting Period[20]. - The Group recorded a gross profit of approximately HK$9.9 million for the Reporting Period, representing a decrease of approximately 77.8% compared to approximately HK$44.5 million for the year ended 31 March 2022[20]. - The Group experienced a net loss of approximately HK$32.2 million for the Reporting Period, compared to a net profit of approximately HK$7.9 million for the year ended 31 March 2022[20]. - The cost of sales increased by approximately 21.6% from approximately HK$118.0 million for the year ended March 31, 2022, to approximately HK$143.5 million for the Reporting Period[82]. - Administrative expenses increased by approximately 4.3% from HK$41.7 million for the year ended March 31, 2022, to approximately HK$43.5 million for the Reporting Period[89]. - The Group recognized an impairment loss of approximately HK$5.2 million, significantly higher than HK$0.1 million in the previous year, mainly due to long outstanding trade receivables[84]. - The Group's total value of unfinished contracts was approximately HK$438.3 million, down from HK$549.8 million in 2022[50]. - The Group's gearing ratio was not applicable as of March 31, 2023, with a short-term bank loan of HK$1.0 million during the Reporting Period[104]. - As of March 31, 2023, the Group had approximately HK$86.9 million in bank balances and cash, a decrease of approximately HK$5.1 million compared to HK$92.0 million as of March 31, 2022[92]. Revenue Breakdown - Revenue from the Transportation Mission Critical System Solutions segment was approximately HK$24.5 million, a decrease of 27.9% from approximately HK$34.0 million in the previous year[46]. - Revenue from Mobile Ticketing and Digital Payment Solutions and Services segment amounted to approximately HK$19.8 million, down 24.7% from approximately HK$26.3 million in the previous year[48]. - The Digital Fabrication and Maintenance Services segment generated revenue of approximately HK$23.3 million, reflecting a decrease of about 27.6% from HK$32.2 million in 2022[55]. - The M&E Technology Solutions and Engineering Services segment was the largest, with revenue of approximately HK$80.3 million, an increase of approximately 18.4% from HK$67.8 million in 2022[57]. - Revenue from the Sales of Products, Parts, and Components segment increased significantly to approximately HK$5.5 million, representing a growth of approximately 139.1% from HK$2.3 million in 2022[62]. Operational Strategy and Adaptation - The Group has adapted its operational strategy by streamlining internal resources and focusing on clearing outstanding contracts[22]. - The Group has been exploring the application of artificial intelligence (AI) and other new technological equipment to increase project execution efficiency[22]. - The Group is investing in advanced equipment and exploring methodologies, including AI, to improve operational efficiency and catch up on project delays caused by COVID-19[57]. - The Group is developing robotic technology for coin and banknote transportation, currently in the testing phase, which aims to enhance operational efficiency[30]. - The Group has successfully completed the Tai O Medium EV Charging Station Installation Project and anticipates more tenders for EV charging projects in the coming year[29]. Impact of COVID-19 and Economic Recovery - The fifth wave of COVID-19 significantly impacted the Group's operational efficiencies and project delivery progress, leading to supply chain disruptions and increased costs[21]. - The reopening of the border between mainland China and Hong Kong on 8 January 2023 has led to a visible improvement in the Hong Kong economy, aiding the resumption of the Group's projects[22]. - The reopening of the Hong Kong and mainland China border on January 8, 2023, is expected to improve business opportunities as the economy begins to recover[65]. - Hong Kong's real GDP grew by 2.7% year-on-year in the fourth quarter, recovering from a contraction of 4.1% in the previous quarter[65]. Certifications and Compliance - The Group was granted a statement of compliance under the ISO/IEC 90003:2018, indicating its commitment to software quality in IT and engineering system solutions[23]. - The Group was awarded the ISO 45001:2018 Occupational Health and Safety Management Systems Certificates, emphasizing its dedication to employee safety and health[23]. - The Group has received ISO/IEC 90003:2018 compliance and ISO 45001:2018 certification, reflecting its commitment to quality and safety in operations[26]. - The company emphasizes occupational safety training and has implemented various strategies to enhance safety standards within the organization[142]. Management and Governance - The Group's executive director, Mr. KM Luk, has over 50 years of experience in the M&E engineering industry, contributing to strategic planning and financial management[126]. - Mr. CL Chan, the CEO, has over 30 years of experience in M&E engineering, overseeing daily operations and general management of the Group[130]. - The Group's risk management committee includes members with significant experience in risk oversight and crisis management[148]. - The Group is committed to maintaining high standards of corporate governance and risk management practices[148]. - The compliance officer has been appointed to ensure adherence to regulatory requirements and corporate governance[180]. Future Outlook and Business Development - The Group plans to participate in upcoming Hong Kong railway network extension projects expected to commence between 2023 and 2025[28]. - The Group aims to expand its business into Taiwan and mainland China, in addition to its operations in Hong Kong[73]. - A review of the Group's business as of March 31, 2023, and future business development discussions are included in the "Business Review" and "Outlook" sections of the Management Discussion and Analysis[198].

香港交易及結算所有限公司以及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 本公告的資料乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關高萌科技 集團有限公司（「本公司」，連同其附屬公司統稱「本集團」或「我們」）的資料；董事（「董事」）願就本公告 共同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所知及所信，本公告所載資 料在各重要方面均屬準確完備，沒有誤導或欺詐成份，且並無遺漏其他事項，足以令致本公告或其 所載任何陳述產生誤導。 KML Technology Group Limited 高 萌 科 技 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8065） 截至二零二三年三月三十一日止年度的 年度業績公告 聯交所GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上市的公司帶有較 高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作 ...