Revenue Performance - Revenue decreased by approximately 49.7%, from HKD 250.6 million for the year ended March 31, 2021, to HKD 126.2 million for the year ended March 31, 2022[8]. - The company's revenue decreased from approximately HKD 250.6 million for the year ended March 31, 2021, to approximately HKD 126.2 million for the year ended March 31, 2022, representing a decline of about 49.7%[17]. - Revenue from two-way radios dropped by approximately 50.4%, from about HKD 187.4 million to approximately HKD 92.9 million, primarily due to a decrease in procurement orders from customers[17]. - Revenue from baby monitors decreased by approximately 69.0%, from about HKD 3.3 million to approximately HKD 1.0 million, mainly due to reduced demand for audio baby monitor products[17]. - The company's service business revenue fell to zero from approximately HKD 7.7 million, as no electronic manufacturing services were provided during the year[17]. - Total revenue for the year ended March 31, 2022, was HKD 126,181,000, a decrease of 49.6% compared to HKD 250,599,000 in 2021[169]. Financial Losses - The company recorded a loss of HKD 60.4 million for the year ended March 31, 2022, compared to a loss of HKD 34.6 million for the previous year, with the increase in loss attributed to reduced profit margins and inventory write-downs[26]. - The net loss for the year was HKD 60,447,000, which is an increase of 74.8% from a net loss of HKD 34,586,000 in 2021[169]. - Basic and diluted loss per share was HKD 10.10, compared to HKD 5.78 in the previous year[169]. - The gross loss for the year was HKD 21,756,000, compared to a gross profit of HKD 5,813,000 in the previous year[169]. - The company recorded a pre-tax loss of HKD 60,447,000 for the year ended March 31, 2022, compared to a loss of HKD 34,417,000 in the previous year, representing an increase in losses of approximately 75.8%[185]. Cost Management - The cost of sales decreased by approximately 39.6%, from about HKD 244.8 million to approximately HKD 147.9 million, while the gross margin dropped from approximately 2.3% to about -17.2%[23]. - The company intends to seek opportunities to convert fixed costs into variable costs to improve operational flexibility[9]. Strategic Plans - The company plans to mitigate the impact of the trade war by outsourcing some production processes from China to Vietnam and Malaysia[8]. - The company aims to gradually shift most of its production back to China in the future to reduce the impact of trade tariffs[8]. - The company will continue to evaluate its current business strategies to enhance operational efficiency and overall performance[9]. - Focus will remain on product research and development to strengthen the product portfolio and enhance information management systems[9]. - The company plans to continue investing in R&D for new product lines and exploring new customer and sales channels to diversify revenue sources[10]. - The company plans to continue its focus on the design, trade, and manufacturing of two-way radios and other communication devices, aiming for market expansion[193]. Corporate Governance - The management emphasized the importance of maintaining high corporate governance standards, ensuring compliance with GEM listing rules throughout the fiscal year[61]. - The board of directors is committed to maximizing long-term shareholder value while balancing the interests of broader stakeholders[67]. - The company has adopted a robust framework for risk management and performance monitoring to support strategic decision-making[62]. - The board has been actively involved in discussions regarding the group's strategy, performance, and management processes[75]. - The company has committed to reviewing and monitoring compliance with legal and regulatory requirements as part of its corporate governance responsibilities[77]. - The company aims to ensure that all directors are aware of their responsibilities and act in the best interests of the company[71]. - The company will continue to strive for compliance with corporate governance codes and regulations[74]. Shareholder Information - The board presented the audited consolidated financial statements for the year ending March 31, 2022, highlighting the company's financial performance[114]. - The company reported a reserve available for distribution of approximately zero HKD as of March 31, 2022, compared to approximately 16,581,000 HKD in 2021[120]. - The company did not recommend the payment of dividends for the year ended March 31, 2022, consistent with the previous year[117]. - Major shareholders include Solution Smart Holdings Limited with 112,589,600 shares (18.81%) and SMK Investment Company Limited with 90,997,600 shares (15.20%) as of March 31, 2022[136]. - The company has confirmed that at least 25% of its issued shares are held by the public, complying with GEM listing rules[148]. Cash Flow and Liquidity - As of March 31, 2022, the company had a cash balance of approximately HKD 7.9 million, down from about HKD 11.8 million the previous year[33]. - The company’s cash flow from operating activities was HKD 3,311,000, a decrease from HKD 12,799,000 in the previous year, indicating a decline in operational efficiency[185]. - The company’s financing activities resulted in a net cash outflow of HKD 7,165,000, significantly improved from HKD 40,227,000 in the previous year[188]. - The company has taken measures to improve its liquidity and financial position, as detailed in the financial statements[157]. Acquisitions and Investments - The company completed the acquisition of 100% of the issued shares of Fook Cheung Overseas Limited for HKD 15,000,000 on June 24, 2022, to expand its current business and diversify its product offerings[48]. - The company raised approximately HKD 19,950,000 through a rights issue, with around 79.2% of the net proceeds allocated for business expansion and potential acquisitions, and 20.8% for general working capital[45]. - The company has no significant investments or acquisitions during the year ended March 31, 2022[28]. Risk and Uncertainties - There are significant uncertainties regarding the company's ability to continue as a going concern due to financial conditions[156]. - The company has no significant contingent liabilities other than those disclosed, and the management believes that the outcome of the ongoing litigation will not have a material adverse effect on the group's consolidated financial position[37][38].

Financial Performance - The company's revenue for the nine months ended December 31, 2021, was approximately HKD 88.1 million, a significant decrease of about 60.6% compared to approximately HKD 223.7 million for the same period in 2020[19] - The loss attributable to owners for the nine months ended December 31, 2021, was approximately HKD 34 million, compared to a loss of approximately HKD 19.4 million for the same period in 2020[19] - The basic and diluted loss per share for the nine months ended December 31, 2021, was approximately HKD 5.68 cents, compared to HKD 3.24 cents for the same period in 2020[19] - The gross profit for the nine months ended December 31, 2021, was HKD 720,000, compared to HKD 9,678,000 for the same period in 2020, indicating a significant decline[65] - The company incurred a loss before tax of HKD 33,981,000 for the nine months ended December 31, 2021, compared to a loss of HKD 19,215,000 for the same period in 2020, representing a 76.7% increase in losses[65] - The total comprehensive loss for the nine months ended December 31, 2021, was HKD 33,547,000, compared to HKD 15,657,000 for the same period in 2020, reflecting a worsening financial position[67] - The company reported other income of HKD 777,000 for the nine months ended December 31, 2021, down from HKD 6,836,000 for the same period in 2020, a decrease of 88.6%[65] - The group reported a net loss of HKD 9,124,000 for the three months ended December 31, 2021, compared to a loss of HKD 4,399,000 for the same period in 2020[87] Revenue Breakdown - Revenue from two-way radios decreased by approximately 61.9% to HKD 65.8 million for the nine months ended December 31, 2021, from HKD 172.7 million for the same period in 2020[22] - Revenue from baby monitors decreased by approximately 79.6% to HKD 600,000 for the nine months ended December 31, 2021, from HKD 2.9 million for the same period in 2020[23] - The company did not generate any service business revenue for the nine months ended December 31, 2021, compared to approximately HKD 7.7 million for the same period in 2020[23] - Revenue from other products decreased by approximately 46.4% to HKD 21.7 million for the nine months ended December 31, 2021, from HKD 40.5 million for the same period in 2020[25] - Total revenue from external customers for the nine months ended December 31, 2021, was HKD 88,056,000, a decrease of 60.7% compared to HKD 223,736,000 for the same period in 2020[85] Expenses and Costs - Sales cost decreased from HKD 214.1 million for the nine months ended December 31, 2020, to approximately HKD 87.3 million for the nine months ended December 31, 2021, a reduction of about 59.2%[32] - Gross profit margin fell from approximately 4.3% for the nine months ended December 31, 2020, to about 0.8% for the nine months ended December 31, 2021[32] - Administrative expenses increased from approximately HKD 28.2 million to about HKD 33.5 million, primarily due to increased R&D expenses[35] - The sales and distribution expenses for the nine months ended December 31, 2021, were HKD 1,063,000, down from HKD 3,200,000 for the same period in 2020, a decrease of 66.8%[65] - The cost of inventory recognized as an expense for the nine months ended December 31, 2021, was HKD 60,435,000, compared to HKD 179,711,000 for the same period in 2020[97] Strategic Plans - The company aims to enhance its product portfolio, strengthen its information management systems, and improve marketing efforts to achieve growth in existing businesses[29] - The company plans to diversify its revenue sources and seek new product opportunities while leveraging its established sales channels and networks[29] - The company plans to continue developing new product lines and exploring new customers and sales channels[31] Corporate Governance and Shareholder Information - The board of directors does not recommend the payment of any dividends for the nine months ended December 31, 2021[19] - The company did not issue any debt securities during the nine months ended December 31, 2021[50] - The company has fully complied with the corporate governance code during the nine months ended December 31, 2021[56] - No share options were granted, exercised, or lapsed under the share option scheme during the nine months ended December 31, 2021[62] - The total number of shares that may be issued upon exercise of all options granted under the scheme is 26,880,000 shares, representing approximately 4.5% of the issued share capital as of December 31, 2021[62] Market Conditions and Risks - The impact of COVID-19 and the US-China trade war has created additional uncertainties affecting the company's operations and financial condition[31] - The company will actively monitor the developments related to COVID-19 and the trade war and assess their impact on financial performance[31] Other Information - The company has no significant investments or capital asset plans as of the report date[39] - There were no significant contracts in which the directors had a direct or indirect interest during the nine months ended December 31, 2021[54] - No significant events occurred after December 31, 2021, up to the report date[64] - The group’s other losses for the nine months ended December 31, 2021, included a net exchange loss of HKD 587,000, compared to HKD 2,812,000 for the same period in 2020[94] - Rental expenses paid to a related company amounted to HKD 670,000 for the three months ended December 31, 2021, compared to HKD 522,000 for the same period in 2020, reflecting a 28.4% increase[107]

®Real On Real International Holdings Limited 安悅國際控股有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) 股份代號：8245 250M (( (10 km) ��� CD IPX2 報 暗 期 °C )) 香港聯合交易所有限公司（「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後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主 板買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有 高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報告全部或任何部分內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報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 提供有關安悅國際控股有限公司（「本公司」，連同其附屬公司統稱「本集團」） ...

Revenue Performance - For the three months ended June 30, 2021, the company's revenue was approximately HKD 27.6 million, a significant decrease of about 67.4% compared to approximately HKD 84.7 million for the same period in 2020[23]. - Revenue from two-way radios decreased by approximately 76.5% to HKD 15.1 million for the three months ended June 30, 2021, from HKD 64.1 million for the same period in 2020[27]. - Revenue from baby monitors decreased by approximately 42.4% to HKD 0.3 million for the three months ended June 30, 2021, from HKD 0.6 million for the same period in 2020[27]. - The company did not generate any service business revenue for the three months ended June 30, 2021, compared to approximately HKD 7.7 million for the same period in 2020[28]. - Other products' revenue decreased by approximately 1.3% to HKD 12.2 million for the three months ended June 30, 2021, from HKD 12.4 million for the same period in 2020[28]. - Total revenue from goods and services for the three months ended June 30, 2021, was HKD 27,583,000, a decrease of 67.5% from HKD 84,660,000 in the same period of 2020[81]. - The company experienced a significant decline in revenue from external customers, with a total revenue drop of approximately 67.5% year-over-year[81]. - Revenue from Asia was HKD 26,400,000 for the three months ended June 30, 2021, an increase of 22.5% from HKD 21,667,000 in the same period of 2020[88]. Financial Losses - The loss attributable to owners of the company for the three months ended June 30, 2021, was approximately HKD 4.5 million, compared to a loss of approximately HKD 3.8 million for the same period in 2020[23]. - The basic and diluted loss per share for the three months ended June 30, 2021, was approximately HKD 0.75, compared to HKD 0.63 for the same period in 2020[23]. - The company incurred a loss before tax of HKD 4,493,000 for the three months ended June 30, 2021, compared to a loss of HKD 3,771,000 in the prior year, reflecting an increase in loss of approximately 19.2%[69]. - The company reported a loss attributable to owners of the company of HKD 4,493,000 for the three months ended June 30, 2021, compared to a loss of HKD 3,771,000 for the same period in 2020, representing an increase in loss of approximately 19.2%[71]. - Basic and diluted loss per share was HKD 0.75 for the three months ended June 30, 2021, compared to HKD 0.63 for the same period in 2020, indicating a 19.0% increase in loss per share[71]. Cost Management - The company's sales cost decreased by approximately 67.2% from about HKD 80.6 million for the three months ended June 30, 2020, to about HKD 26.4 million for the three months ended June 30, 2021[35]. - Selling and distribution expenses decreased from approximately HKD 1.1 million for the three months ended June 30, 2020, to about HKD 0.7 million for the three months ended June 30, 2021[36]. - Administrative expenses decreased from approximately HKD 7.2 million for the three months ended June 30, 2020, to about HKD 4.9 million for the three months ended June 30, 2021[37]. - Administrative expenses decreased to HKD 4,874,000 from HKD 7,177,000, showing a reduction of approximately 32.1%[69]. - The financing costs for the period were HKD 162,000, significantly lower than HKD 737,000 in the same period last year, a reduction of approximately 78.0%[69]. Strategic Plans - The company plans to diversify its revenue sources and expand its customer base by exploring business opportunities with existing and potential clients[30]. - The company plans to allocate approximately HKD 14.1 million (about 79.2% of net proceeds) for business expansion and potential acquisitions or investments[46]. - The remaining net proceeds of approximately HKD 3.7 million (about 20.8% of net proceeds) will be used for general working capital[46]. - The company will continue to seek opportunities to diversify revenue sources and develop new products[32]. - The company aims to enhance its product portfolio and strengthen its information management systems to achieve growth in existing businesses[32]. - The company plans to continue focusing on the design, trade, and manufacturing of two-way radios and baby monitors, as well as expanding its service business[77]. Other Financial Metrics - The gross profit for the same period was HKD 1,164,000, down from HKD 4,097,000 in 2020, indicating a decline of approximately 71.5%[69]. - The company's total comprehensive expenses for the period amounted to HKD 3,951,000, compared to HKD 3,746,000 in the previous year, reflecting an increase of 5.5%[71]. - The company reported other income of HKD 235,000, down from HKD 1,277,000 in the previous year, a decrease of approximately 81.7%[69]. - Other income amounted to HKD 235,000 for the three months ended June 30, 2021, down 81.7% from HKD 1,277,000 in the same period of 2020[94]. - The company reported a net foreign exchange loss of HKD 186,000 for the three months ended June 30, 2021, compared to a loss of HKD 83,000 in the same period of 2020, an increase of 124.1%[95]. - Employee benefit expenses were HKD 4,021,000 for the three months ended June 30, 2021, an increase of 22.6% from HKD 3,279,000 in the same period of 2020[97]. Corporate Governance - The company maintained compliance with all corporate governance codes during the reporting period[61]. - Major shareholders include Solution Smart Holdings with 112,589,600 shares (18.81%) and SMK Investment Company Limited with 90,997,600 shares (15.20%) as of June 30, 2021[53]. - The company did not issue any share options during the three months ended June 30, 2021, and has no unexercised options as of the report date[65]. - The company has no plans for share buybacks or sales during the reporting period[63]. - The company did not declare any dividends for the three months ended June 30, 2021, consistent with the same period in 2020[103]. - The company did not have any significant post-reporting date events as of June 30, 2021[108].

C Re al On Real International Holdings Limited 安悅國際控股有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) 股 份 代 號 : 8245 250M (( (10 km) ��� 2) IPX2 °C, 報 香港聯合交易所有限公司（「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後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券承受較大的市場波動 風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確 表示概不對因本報告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報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，旨在提供有關安悅國際控股有限公司（「本 公司」）的資料；本公司的董事（「董事」） ...

Financial Performance - For the nine months ended December 31, 2020, the company's revenue was approximately HKD 223.7 million, a decrease of about 16.2% compared to approximately HKD 267.1 million for the same period in 2019[6]. - The loss attributable to owners for the nine months ended December 31, 2020, was approximately HKD 19.4 million, compared to a loss of approximately HKD 6.4 million for the same period in 2019[6]. - The basic and diluted loss per share for the nine months ended December 31, 2020, was approximately HKD 3.24, compared to HKD 1.64 for the same period in 2019[6]. - The gross loss for the nine months ended December 31, 2020, was HKD 9,678,000, compared to a gross profit of HKD 31,567,000 for the same period in 2019, indicating a significant downturn[49]. - The net loss attributable to owners of the company for the nine months ended December 31, 2020, was HKD 19,384,000, compared to a loss of HKD 6,402,000 in the same period of 2019, reflecting an increase in losses of approximately 202.5%[51]. - The company reported a total comprehensive loss of HKD 15,657,000 for the nine months ended December 31, 2020, compared to a loss of HKD 6,603,000 in the same period of 2019[51]. - The company reported a loss before tax of HKD 19,215 thousand for the nine months ended December 31, 2020, compared to a loss of HKD 5,434 thousand for the same period in 2019, indicating a worsening financial position[72]. Revenue Breakdown - Revenue from two-way radios decreased by approximately 17.9% to HKD 172.7 million for the nine months ended December 31, 2020, from HKD 210.4 million for the same period in 2019[9]. - Revenue from baby monitors decreased by approximately 14.6% to HKD 2.9 million for the nine months ended December 31, 2020, from HKD 3.4 million for the same period in 2019[9]. - Revenue from service business increased approximately 18.4 times to HKD 7.7 million for the nine months ended December 31, 2020, from HKD 0.4 million for the same period in 2019[9]. - Revenue from other products decreased by approximately 23.5% to HKD 40.5 million for the nine months ended December 31, 2020, from HKD 52.9 million for the same period in 2019[10]. - Total revenue from external customers for the nine months ended December 31, 2020, was HKD 223,736 thousand, a decrease from HKD 267,073 thousand for the same period in 2019, representing a decline of approximately 16.2%[69]. - The performance of the two-way radio segment generated revenue of HKD 172,685 thousand for the nine months ended December 31, 2020, compared to HKD 210,435 thousand in the same period of 2019, reflecting a decrease of about 17.9%[70]. - Revenue from the United States for the nine months ended December 31, 2020, was HKD 72,843 thousand, down from HKD 135,711 thousand in the same period of 2019, a decline of approximately 46.3%[72]. Cost and Expenses - The company's sales cost decreased by approximately 9.1% from HKD 235.5 million for the nine months ended December 31, 2019, to about HKD 214.1 million for the nine months ended December 31, 2020[17]. - The gross profit margin dropped from approximately 11.8% for the nine months ended December 31, 2019, to about 4.3% for the nine months ended December 31, 2020, primarily due to a decline in the gross margin of two-way wireless intercom products[17]. - Administrative expenses decreased from approximately HKD 32.0 million for the nine months ended December 31, 2019, to about HKD 28.2 million for the nine months ended December 31, 2020, mainly due to reduced R&D and consultancy expenses[20]. - Sales and distribution expenses increased from approximately HKD 2.7 million for the nine months ended December 31, 2019, to about HKD 3.2 million for the nine months ended December 31, 2020, primarily due to increased issuance costs and sample expenditures[18]. - Interest expenses for bank and other borrowings amounted to HKD 1,540,000 for the nine months ended December 31, 2020, down from HKD 3,489,000 in the same period of 2019[7]. - The company incurred a tax expense of HKD 169,000 for the nine months ended December 31, 2020, compared to HKD 968,000 for the same period in 2019[84]. - Rental expenses paid to a related company were HKD 1,529,000 for the nine months ended December 31, 2020, compared to HKD 1,394,000 for the same period in 2019[91]. Strategic Plans and Future Outlook - The company plans to diversify its revenue sources by expanding product varieties and exploring business opportunities with existing and potential customers[12]. - The company will continue to explore and consider potential investment opportunities to seize more business chances[16]. - The company plans to enhance its market presence and product offerings through strategic decisions made by the executive directors[66]. - The company is attempting to mitigate the impact of the US-China trade war by outsourcing production services from China to Vietnam and Malaysia[14]. - The company will continue to closely monitor the impact of COVID-19 on its financial condition, cash flow, and operational performance[16]. - The company has not disclosed any new product developments or market expansion strategies in the current report, suggesting a potential area for future focus[62]. Shareholder Information - As of December 31, 2020, Solution Smart Holdings Limited and Mr. Zhong Weishen each hold 112,589,600 shares, representing an 18.81% equity interest in the company[34]. - SMK Investment and Mr. Kor Sing Mung Michael each hold 90,997,600 shares, representing a 15.20% equity interest in the company[34]. - The company did not issue any debt securities during the nine months ended December 31, 2020[34]. - The company does not recommend the payment of dividends for the nine months ended December 31, 2020, consistent with the previous period[22]. - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2020[43]. - The company has adopted the GEM Listing Rules as the code of conduct for directors' securities transactions, confirming compliance during the nine months ended December 31, 2020[42]. - There were no significant contracts in which directors had a direct or indirect material interest during the nine months ended December 31, 2020[38]. - No share options were granted, exercised, or lapsed under the company's share option scheme during the nine months ended December 31, 2020[46]. - The total number of shares that may be issued upon exercise of all share options granted under the scheme is 26,880,000 shares, approximately 4.5% of the issued share capital as of December 31, 2020[46]. - The weighted average number of ordinary shares for the nine months ended December 31, 2020, was 598,500,000, compared to 390,194,000 for the same period in 2019[87]. Compliance and Governance - The company has fully complied with the corporate governance code as per GEM Listing Rules during the nine months ended December 31, 2020[40]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial performance for the third quarter ended December 31, 2020[47]. - The company had no significant post-reporting date events as of the report date[93]. - The corporate income tax rate in China remained at 25% for both 2020 and 2019[7]. - The company recorded other comprehensive income of HKD 3,727,000 for the nine months ended December 31, 2020, primarily due to foreign exchange differences, compared to a loss of HKD 201,000 in the same period of 2019[49]. - The company reported a net foreign exchange loss of HKD 1,127 thousand for the nine months ended December 31, 2020, compared to a loss of HKD 3,313 thousand for the same period in 2019, indicating some improvement in currency management[80].

Financial Performance - For the six months ended September 30, 2020, the company's revenue was approximately HKD 187.1 million, an increase of about 10.7% compared to approximately HKD 169.0 million for the same period in 2019[6] - The loss attributable to owners for the six months ended September 30, 2020, was approximately HKD 15.0 million, compared to a loss of approximately HKD 9.0 million for the same period in 2019[6] - Revenue from two-way radios increased by approximately 13.5% to about HKD 146.8 million for the six months ended September 30, 2020, from approximately HKD 129.3 million for the same period in 2019[9] - Revenue from baby monitors decreased by approximately 26.7% to about HKD 1.1 million for the six months ended September 30, 2020, from approximately HKD 1.5 million for the same period in 2019[9] - Revenue from service business surged approximately 1.8 times to about HKD 7.7 million for the six months ended September 30, 2020, from approximately HKD 0.4 million for the same period in 2019[10] - Revenue from other products decreased by approximately 16.8% to about HKD 31.4 million for the six months ended September 30, 2020, from approximately HKD 37.8 million for the same period in 2019[10] - The gross profit for the six months ended September 30, 2020, was HKD 10,967,000, a decrease of 45.2% from HKD 20,017,000 in the previous year[64] - The company reported a total comprehensive loss of HKD 15,484,000 for the six months ended September 30, 2020, compared to HKD 9,442,000 for the same period in 2019[66] - The company reported a net cash outflow from operating activities of HKD 34,575 thousand for the six months ended September 30, 2020, compared to HKD 22,234 thousand for the same period in 2019, indicating a worsening cash flow situation[77] Dividends and Share Capital - The company does not recommend the payment of an interim dividend for the six months ended September 30, 2020[6] - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[35] - The company completed a share consolidation on February 6, 2020, merging every ten existing shares into one new share[39] - The company’s authorized share capital will increase from HKD 7,800,000 to HKD 39,000,000 following the share consolidation and rights issue[39] - The company plans to raise approximately HKD 19,950,000 through a rights issue, with a subscription price of HKD 0.1 per share[40] - Approximately HKD 14,100,000 (79.2%) of the net proceeds from the rights issue will be used for business expansion and potential acquisitions, while HKD 3,700,000 (20.8%) will be allocated for general working capital[42] Assets and Liabilities - The group's current assets net value decreased from approximately HKD 60.4 million as of March 31, 2020, to approximately HKD 42.7 million as of September 30, 2020[23] - The company's cash and bank balance decreased by approximately HKD 25.1 million from approximately HKD 46.8 million as of March 31, 2020, to approximately HKD 21.7 million as of September 30, 2020[23] - The group's debt-to-equity ratio increased to approximately 134.9% as of September 30, 2020, compared to approximately 84.1% as of March 31, 2020[27] - Total liabilities increased to HKD 146,230 thousand from HKD 121,035 thousand, reflecting a rise of approximately 20.8%[68] - The company’s total equity decreased to HKD 48,034 thousand from HKD 63,518 thousand, a decline of about 24.3%[71] - The total borrowings as of September 30, 2020, were HKD 64,628,000, an increase from HKD 53,243,000 as of March 31, 2020[137] Operational Strategies - The company aims to diversify revenue sources and expand its product range while seeking business opportunities with existing and potential customers[12] - The company plans to enhance its product portfolio and strengthen its information management systems to achieve growth in existing businesses[14] - The company will explore opportunities to leverage its R&D capabilities to provide design engineering services to customers[14] - The group plans to establish new production facilities outside of China, such as in Malaysia and Vietnam, to mitigate the impact of the ongoing US-China trade war[16] - The group is committed to developing new product models and diversifying revenue sources to enhance business income and profitability[16] Employee and Management Information - As of September 30, 2020, the total employee cost was approximately HKD 8,700,000, a decrease of 26.9% compared to HKD 11,900,000 for the same period in 2019[36] - The total number of employees as of September 30, 2020, was 153[36] - The company has conducted a series of training sessions for its employees during the six months ended September 30, 2020[37] - Compensation for key management personnel amounted to HKD 2,885,000 for the six months ended September 30, 2020, up from HKD 1,737,000 for the same period in 2019, representing a 66.1% increase[151] Financial Reporting and Compliance - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2020, with no significant impact on the interim financial statements[84] - The financial risk management policies have not changed since the end of the last fiscal year, maintaining a focus on market risk, credit risk, and liquidity risk[88] - The interim financial statements have been reviewed by the company's audit committee but not audited by independent auditors[83] - The company maintained compliance with the corporate governance code throughout the reporting period, with no deviations except for the roles of chairman and CEO being held by different individuals[52] Market Performance - Total revenue for the six months ended September 30, 2020, was HKD 187,093,000, with significant contributions from two-way radios (HKD 146,845,000) and other products (HKD 31,445,000) [100] - The operating profit for the same period was HKD 10,967,000, with two-way radios contributing HKD 8,369,000 and other products contributing HKD 2,191,000 [100] - Total revenue from external customers for the three months ended September 30, 2020, was HKD 102,433 thousand, an increase from HKD 87,152 thousand in the same period of 2019, representing a growth of approximately 17.5%[105] - Revenue from the United States for the three months ended September 30, 2020, was HKD 31,753 thousand, a decrease of 24% compared to HKD 41,752 thousand in the same period of 2019[108] - Revenue from Asia for the three months ended September 30, 2020, significantly increased to HKD 34,392 thousand from HKD 7,345 thousand in the same period of 2019, marking a growth of approximately 369%[108] Inventory and Receivables - The company reported a significant increase in inventory, which rose to HKD 29,942 thousand from HKD 24,380 thousand, representing a growth of approximately 22.9%[68] - The total trade and other receivables as of September 30, 2020, amounted to HKD 133,749,000, an increase from HKD 108,329,000 as of March 31, 2020[131] - The company’s trade receivables as of September 30, 2020, were HKD 118,201,000, up from HKD 85,868,000 as of March 31, 2020[131] Other Financial Information - The company incurred a current tax expense of HKD 155,000 for the six months ended September 30, 2020, compared to HKD 207,000 for the same period in 2019[121] - The company’s capital expenditure for the six months ended September 30, 2020, was HKD 1,328,000[129] - The company reported a basic loss per share of HKD (1.87) for the three months ended September 30, 2020, compared to HKD (1.82) for the same period in 2019[124] - For the six months ended September 30, 2020, the company recorded a basic loss per share of HKD (2.50), compared to HKD (2.30) for the same period in 2019[124]

Revenue Performance - For the three months ended June 30, 2020, the company's revenue was approximately HKD 84.7 million, an increase of about 3.4% compared to approximately HKD 81.9 million for the same period in 2019[4] - Revenue from two-way radios increased by approximately 4.7% to HKD 64.1 million for the three months ended June 30, 2020, from HKD 61.2 million for the same period in 2019[7] - Revenue from the service business surged 640 times to approximately HKD 7.7 million for the three months ended June 30, 2020, from approximately HKD 12,000 for the same period in 2019[8] - Revenue from other products decreased by approximately 38.6% to HKD 12.4 million for the three months ended June 30, 2020, from approximately HKD 20.2 million for the same period in 2019[8] - Sales from goods amounted to HKD 76,980 thousand, a decrease of 5.3% from HKD 81,839 thousand in 2019, while service sales increased significantly to HKD 7,680 thousand from HKD 12 thousand[49] - Revenue from the United States decreased to HKD 38,097 thousand, down 13.0% from HKD 44,280 thousand in the previous year[56] - Revenue from Asia significantly increased to HKD 21,667 thousand, up 278.5% from HKD 5,722 thousand in the same period last year[56] Profit and Loss - The loss attributable to owners for the three months ended June 30, 2020, was approximately HKD 3.8 million, compared to a loss of approximately HKD 1.9 million for the same period in 2019[4] - The gross profit margin decreased from approximately 11.3% for the three months ended June 30, 2019, to approximately 4.8% for the same period in 2020, primarily due to a decline in the profit margin of two-way radio products[14] - The gross profit for the same period was HKD 4,097 thousand, down 55.7% from HKD 9,263 thousand in 2019[39] - The net loss for the three months ended June 30, 2020, was HKD 3,771 thousand, compared to a net loss of HKD 1,902 thousand in 2019, representing a 98.4% increase in loss[39] - The total comprehensive loss for the period was HKD 3,746 thousand, compared to HKD 855 thousand in 2019, indicating a significant increase in overall expenses[39] - The basic and diluted loss per share was HKD 0.63 for the current period, compared to HKD 0.49 for the same period last year[39] Expenses - Sales and distribution expenses increased from approximately HKD 0.9 million for the three months ended June 30, 2019, to approximately HKD 1.1 million for the three months ended June 30, 2020, primarily due to increased transportation costs[15] - Administrative expenses decreased from approximately HKD 9.8 million for the three months ended June 30, 2019, to approximately HKD 7.2 million for the three months ended June 30, 2020, mainly due to reduced R&D and consultancy fees[16] - Administrative expenses were HKD 7,177 thousand, down from HKD 9,763 thousand in 2019, reflecting a 26.5% reduction[39] - The cost of inventory recognized as an expense was HKD 70,671 thousand, an increase of 17.8% from HKD 60,335 thousand in the previous year[65] - Financing costs for the three months ended June 30, 2020, were HKD 737 thousand, down 38.2% from HKD 1,192 thousand in the same period of 2019[66] Corporate Governance and Shareholder Information - The board of directors did not recommend the payment of dividends for the three months ended June 30, 2020[19] - The company has fully complied with all corporate governance code provisions during the three months ended June 30, 2020[30] - No share options were granted, exercised, lapsed, or cancelled during the three months ended June 30, 2020[34] - Solution Smart Holdings Limited held 112,589,600 shares, representing an 18.81% stake in the company[23] - SMK Investment Company Limited held 90,997,600 shares, representing a 15.20% stake in the company[23] - The company did not recommend any dividend payment for the three months ended June 30, 2020, and 2019[73] Future Outlook and Challenges - The company plans to diversify revenue sources and expand product offerings to enhance customer base and business opportunities[11] - The company anticipates continued impacts from the US-China trade war on revenue and gross margins due to additional tariffs on two-way radios[13] - The company will explore new production facilities outside of China, including in Malaysia and Vietnam, to mitigate ongoing trade war effects[11] - The company will continue to monitor the impact of COVID-19 on its operations and financial condition[13] - The impact of COVID-19 on the global business environment has been significant since January 2020, with potential further changes to the group's economic situation and financial performance[75] - The extent of COVID-19's impact on the group's financial performance remains unquantifiable as of the report date[75] - The group will continue to monitor the COVID-19 situation and actively respond to its effects on financial conditions and operational performance[75] Segment Performance - The segment performance for the three months ended June 30, 2020, reported a loss of HKD 3,771 thousand, compared to a loss of HKD 1,770 thousand in the same period of 2019[56] - Other income for the three months ended June 30, 2020, was HKD 1,277 thousand, a decrease from HKD 1,497 thousand in the same period of 2019[62] - The foreign exchange gain from the translation of overseas operations was HKD 25 thousand, a decrease from HKD 1,047 thousand in the previous year[39] - The company reported a net foreign exchange loss of HKD 83 thousand for the three months ended June 30, 2020, compared to a loss of HKD 692 thousand in the same period of 2019[63] - The company continues to focus on the design, trade, and manufacturing of two-way radios, baby monitors, and other communication devices, indicating ongoing commitment to its core business[45]

Financial Performance - The group recorded a slight revenue increase of 3.4% due to an increase in customer procurement orders during the fiscal year[19]. - The overall performance of the group has deteriorated despite slight revenue growth, indicating challenges in the current economic environment[19]. - The company's revenue increased from approximately HKD 323,500,000 for the year ended March 31, 2019, to approximately HKD 334,600,000 for the year ended March 31, 2020, representing a growth of about 3.4%[26]. - Revenue from two-way radios rose approximately 15.8% from about HKD 211,500,000 in 2019 to about HKD 245,000,000 in 2020, driven by an increase in customer orders[26]. - Revenue from baby monitors significantly decreased by approximately 77.4%, from about HKD 17,100,000 in 2019 to about HKD 3,900,000 in 2020, due to reduced demand for audio baby monitor products[27]. - Service business revenue fell approximately 95.9%, from about HKD 9,700,000 in 2019 to about HKD 400,000 in 2020, primarily due to a decrease in electronic manufacturing services[27]. - The company recorded a loss of HKD 19,500,000 for the year ended March 31, 2020, compared to a loss of HKD 9,800,000 in the previous year[34]. Administrative Expenses and Cost Management - Administrative expenses significantly increased by 42% as the group invested additional costs in logistics and manufacturing outsourcing outside of China to mitigate the impact of the US-China trade war[19]. - Administrative expenses increased from approximately HKD 27,400,000 in 2019 to about HKD 38,900,000 in 2020, attributed to higher R&D and consultancy costs[33]. - The group is considering outsourcing arrangements to increase flexibility in fixed cost management, potentially moving production processes outside of China to locations like Malaysia[20]. Impact of External Factors - The group anticipates continued impacts from the US-China trade war, including increased tariffs on two-way wireless intercoms, which will affect revenue and gross margins[20]. - The COVID-19 outbreak has caused production disruptions and added uncertainty to the operating environment, potentially impacting the group's financial condition and cash flow[20]. Strategic Initiatives - The group is focusing on enhancing its product portfolio and strengthening its information management systems to drive business growth[20]. - The group plans to diversify revenue sources and explore new product opportunities while leveraging its established sales channels and networks[20]. - The group is committed to research and development of new product models to enhance business revenue and profitability[20]. - The board is evaluating current business strategies to improve operational efficiency and overall performance[19]. Governance and Management - The company adheres to high standards of corporate governance and has implemented the GEM Listing Rules throughout the fiscal year ending March 31, 2020[75][76]. - The board of directors is committed to maintaining high levels of business ethics and governance practices[75]. - The company has a diverse board with members holding various qualifications and extensive experience in finance, accounting, and corporate governance[68][69][70]. - The company has made efforts to ensure compliance with applicable governance codes, although some deviations were noted[76]. - The management team includes professionals with advanced degrees in business and finance from reputable universities[72]. - The company has a history of appointing experienced individuals to key positions, enhancing its operational capabilities[64][68][70]. - The board includes independent directors who contribute to the oversight and strategic direction of the company[68][69][70]. - The company is focused on continuous improvement in governance practices to align with legal and business standards[76]. Risk Management and Compliance - The company has implemented policies to monitor and assess risks related to sanctions laws from the US, EU, and Australia, ensuring compliance and protecting shareholder interests[114]. - The board believes that the internal control policies in place provide a reasonable and effective framework for identifying and monitoring significant risks related to sanctions laws[115]. - The external independent internal control consulting firm was engaged to assist the board in reviewing the effectiveness of the internal control system, covering financial, compliance, and operational monitoring[118]. - The company has not conducted any transactions in Russia that could expose it or its investors to sanction risks[116]. Environmental and Social Responsibility - The company’s Yunfu plant has achieved GB/T24001–2016/ISO14001:2015 environmental management system certification[143]. - The company has implemented resource-saving measures, with monthly statistics on electricity, water, paper usage, and waste recycling to control resource consumption[147]. - The company continues to comply with labor laws and provides a fair working environment, promotion opportunities, and transparent compensation for employees[151]. - The company has established a comprehensive training program for employees, including onboarding training for new hires and ongoing professional development[155]. - The company has formed an epidemic prevention committee and implemented comprehensive policies to ensure employee safety during the COVID-19 pandemic[160]. Financial Position and Capital Management - The company's cash and bank balances increased from approximately HKD 24,600,000 in 2019 to about HKD 46,800,000 in 2020, an increase of approximately HKD 22,200,000[41]. - The debt-to-equity ratio improved to approximately 84.1% as of March 31, 2020, down from 85.5% in the previous year, due to a reduction in short-term borrowings[42]. - The company has a reserve available for distribution of approximately HKD 29,992,000 as of March 31, 2020, compared to HKD 15,212,000 in 2019, an increase of about 96%[183]. - The company did not recommend the payment of dividends for the year ending March 31, 2020[180]. Stock Options and Shareholder Engagement - As of March 31, 2019, the company had granted a total of 115,200,000 stock options under the plan, with an exercise price of HKD 0.0470[191]. - By March 31, 2020, there were 268,800,000 stock options available for allocation and issuance under the plan[191]. - No stock options were granted, exercised, expired, or canceled during the fiscal year ending March 31, 2020[192]. - The company maintains various communication channels to ensure shareholders are informed about key business decisions[124]. - The company has a structured process for shareholders to propose new resolutions at special general meetings[128].

Financial Performance - For the nine months ended December 31, 2019, the company's revenue was approximately HKD 267.1 million, an increase of about 5.9% compared to approximately HKD 252.2 million for the same period in 2018[5]. - The company reported a loss attributable to owners of approximately HKD 6.4 million for the nine months ended December 31, 2019, compared to a profit of approximately HKD 3.3 million for the same period in 2018[5]. - Revenue from two-way radios increased by approximately 30.3% to about HKD 210.4 million for the nine months ended December 31, 2019, driven by an increase in customer orders[8]. - Revenue from baby monitors decreased by approximately 77.9% to about HKD 3.4 million for the nine months ended December 31, 2019, due to reduced demand for audio baby monitor products[8]. - The company's gross profit margin increased from approximately 9.0% for the nine months ended December 31, 2018, to approximately 11.8% for the same period in 2019[14]. - For the nine months ended December 31, 2019, total revenue from product sales was HKD 266,676,000, an increase from HKD 250,915,000 for the same period in 2018[78]. - The company reported a total of HKD 267,073,000 in revenue for the nine months ended December 31, 2019, compared to HKD 252,158,000 for the same period in 2018[78]. - The segment performance for the nine months ended December 31, 2019, showed a profit of HKD 31,567,000 compared to HKD 22,681,000 in the same period of 2018, indicating a year-on-year increase of about 39%[84]. - The company reported a net loss before tax of HKD 5,434,000 for the nine months ended December 31, 2019, compared to a profit of HKD 4,317,000 in the same period of 2018[86]. - The company reported a profit attributable to shareholders of HKD 2,587,000 for the three months ended December 31, 2019, compared to a loss of HKD 2,125,000 for the same period in 2018[102]. Expenses and Costs - Sales and distribution expenses decreased from approximately HKD 3.3 million for the nine months ended December 31, 2018, to approximately HKD 2.7 million for the nine months ended December 31, 2019, primarily due to cost optimization measures[16]. - Administrative expenses increased from approximately HKD 18.9 million for the nine months ended December 31, 2018, to approximately HKD 32.0 million for the nine months ended December 31, 2019, mainly due to increased R&D and consultancy expenses[17]. - The total operating expenses for the nine months ended December 31, 2019, were HKD 32,015,000, compared to HKD 18,870,000 for the same period in 2018, reflecting an increase of 69.5%[50]. - The company incurred financing costs of HKD 3,489,000 for the nine months ended December 31, 2019, compared to HKD 1,314,000 in the same period of 2018, indicating a significant increase of about 165%[97]. - The company’s employee benefit expenses for the nine months ended December 31, 2019, were HKD 16,011,000, a decrease from HKD 21,983,000 in the same period of 2018, reflecting a reduction of approximately 27%[95]. - The company’s intangible asset amortization for the nine months ended December 31, 2019, was HKD 864,000, down from HKD 1,527,000 in the same period of 2018, indicating a decrease of approximately 43.3%[95]. Corporate Actions and Governance - The board of directors does not recommend the payment of any dividend for the nine months ended December 31, 2019[5]. - The board of directors did not recommend the payment of dividends for the nine months ended December 31, 2019[19]. - The company has a stock option plan that allows for the issuance of up to 268,800,000 shares as of December 31, 2019[46]. - The company’s board of directors has confirmed compliance with the GEM Listing Rules regarding securities trading standards during the nine months ended December 31, 2019[41]. - The company has adopted high standards of corporate governance and has complied with the GEM Corporate Governance Code during the reporting period[37]. - The board proposed a share consolidation and an increase in authorized share capital, which was approved by shareholders on February 4, 2020[28]. Future Plans and Market Strategy - The company plans to enhance its product portfolio and strengthen its information management systems to achieve growth in existing businesses[13]. - The company anticipates using more outsourcing arrangements to increase flexibility in fixed cost management, potentially moving some operations outside of China[13]. - The company will continue to seek new product opportunities and leverage its sales channels to diversify revenue sources[13]. - The company plans to expand its market presence in Europe and Asia, focusing on increasing sales in these regions[86]. - The company continues to focus on expanding its market presence and enhancing its product offerings in the communication device sector[62]. Legal and Compliance Matters - The company is currently seeking legal advice regarding a lawsuit involving a claim of approximately HKD 8.0 million[110]. Financial Position - The company reported a total equity of HKD 59,978,000 as of December 31, 2019, compared to HKD 63,352,000 at the beginning of the period[54]. - The accumulated losses increased to HKD 25,285,000 as of December 31, 2019, from HKD 18,883,000 at the beginning of the period[54].