Core Viewpoint - Peiran Environmental (08320) announced the signing of five non-binding memorandums of understanding (MOUs) with various business entities from Indonesia and Malaysia during a delegation visit in June 2025, focusing on sustainable development and ESG capabilities [1]. Group 1: Partnerships in Indonesia - Collaboration with PT DEX Solusi Transit, an infrastructure and urban design consulting firm, to provide green building certifications, ESG ratings, carbon credit trading, and green finance consulting services in Indonesia [1]. - Partnership with PT Townland International, an award-winning planning and design consultancy, to offer ESG, green community certifications, smart city, and green finance consulting for large development projects in Indonesia [2]. Group 2: Partnerships in Malaysia - Cooperation with GD Holdings Sdn Bhd, a leader in real estate and property development, to create comprehensive solutions for green building development, including carbon neutrality roadmaps and ESG strategies for property projects in Malaysia [3]. - Collaboration with The One Island Consultant and Training Centre Sdn Bhd to provide environmental and low-carbon certifications and consulting services for data centers and renewable energy infrastructure projects in Malaysia [4]. - Partnership with Global Sustainability Leaders Academy Sdn. Bhd. to offer ESG, green building, carbon neutrality, and green finance capacity building and advocacy in Malaysia, with the company holding a 50% indirect stake in Global Sustainability [5].

Financial Performance - The group's revenue decreased from approximately HKD 52.0 million for the year ended March 31, 2024, to approximately HKD 47.6 million for the year ended March 31, 2025, representing a decline of 8.5%[11]. - The company recorded a loss attributable to owners of approximately HKD 9.6 million for the year ended March 31, 2025, compared to a profit of approximately HKD 0.6 million for the year ended March 31, 2024[11]. - The decline in revenue and gross margin was primarily due to a decrease in average charges for new contracts and project delays caused by the current market atmosphere[11]. - The group's gross profit decreased by approximately 25.0% from approximately HKD 23.8 million to approximately HKD 17.8 million, attributed to a decline in revenue and gross profit margin[55]. - Revenue from green building certification consulting decreased by 9.6% from approximately HKD 33.4 million to approximately HKD 30.2 million, primarily due to project delays caused by the current market atmosphere[52]. - Revenue from sustainable development and environmental consulting fell by 19.5% from approximately HKD 10.4 million to approximately HKD 8.3 million, mainly due to a drop in average fees for new contracts[52]. - Administrative expenses rose by approximately 17.0% from about HKD 22.3 million to approximately HKD 26.1 million, primarily due to increased costs for employee retention and overseas business expansion[58]. - As of March 31, 2025, the group's cash and bank balances were approximately HKD 11.9 million, a decrease of about HKD 2.3 million from HKD 14.2 million as of March 31, 2024[61]. - The total bank financing amounted to approximately HKD 21.0 million, of which approximately HKD 19.0 million had been utilized[62]. - The debt-to-equity ratio as of March 31, 2025, was approximately 29.5%, compared to 23.4% as of March 31, 2024[65]. Dividend Policy - The board decided not to declare any final dividend for the year ended March 31, 2025[12]. - The company has adopted a dividend policy to enhance transparency and assist shareholders in making informed investment decisions, with the ability to declare interim or special dividends at the board's discretion[109]. - As of March 31, 2025, the company's distributable reserves amount to approximately HKD 8.1 million, down from HKD 10.3 million in 2024[115]. Sustainability and ESG Initiatives - The company is focusing on enhancing its core business and promoting green transformation to achieve synergistic development[15]. - The company aims to align its disclosure practices with ISSB standards and the UK's Transition Plan Taskforce guidelines[15]. - The company has set a science-based target to reduce Scope 1 and Scope 2 greenhouse gas emissions by 42% by 2030, with a commitment to achieve net-zero emissions by 2044[19]. - The company aims to reduce Scope 1, 2, and 3 emissions by 90% by 2044, with interim targets set for 2030 to limit global temperature rise to 1.5 degrees Celsius[19]. - The company has expanded its ESG business scope by providing a range of smart and green IoT solutions, including its self-developed ESG platform Sustainature[23]. - The company is collaborating with the World Green Building Council to provide net-zero solutions in real estate development and management[19]. - The company emphasizes sustainable design solutions, including environmental impact assessments and carbon audits, to enhance health and well-being in built environments[24]. - The establishment of the Responsible Investment Committee in February 2022 focuses on integrating ESG factors into investment planning, ensuring responsible investment principles are embedded throughout decision-making[28]. - The company is actively involved in promoting sustainable talent development, providing systematic training and professional guidance to young individuals interested in sustainability[29]. - The company is focused on enhancing its GRESB rating by aligning building green certifications with corporate decarbonization goals[27]. Market Expansion and Partnerships - The company signed a total of 9 non-binding cooperation agreements with entities from the UAE, Malaysia, Vietnam, Indonesia, Singapore, and Hong Kong to promote business cooperation under the Belt and Road Initiative[22]. - The company has signed a non-binding cooperation agreement with EnergyX Inc. from South Korea to deepen collaboration in environmental, social, and governance areas[22]. - The company is committed to expanding its environmental consulting and solutions coverage, actively seeking opportunities in the Asia-Pacific and Middle East regions[76]. - The company plans to enhance its services in the Middle East, aligning with the Belt and Road Initiative, and has signed a memorandum of understanding with Universiti Tunku Abdul Rahman for collaboration on green solutions[71]. - The company signed multiple memorandums of understanding in 2024 to deepen cooperation in sustainable development and green energy with various partners, including Hong Kong and UAE firms[73]. Corporate Governance - The company has established a remuneration committee to review the compensation policies for directors and senior management based on performance and market practices[148]. - The company confirmed the independence of its independent non-executive directors as per GEM listing rules[151]. - The company has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific responsibilities[199]. - The company has a strong emphasis on professional qualifications and continuous development among its management team to enhance service delivery[177][178]. - The company has adhered to the corporate governance code throughout the fiscal year ending March 31, 2025[182]. Awards and Recognition - The company has achieved multiple awards for its leadership in climate action and resilience, including the 2023 Hong Kong Environmental Excellence Award[18]. - The company has received multiple awards, including the Bank of China Hong Kong Corporate Low Carbon Environmental Leadership Award and the Hong Kong Green Institution Certification[30]. - The group has received multiple international awards for its achievements in green and healthy building standards, reinforcing its industry leadership[41]. - The group received multiple awards for high-quality ESG reporting, including the Best ESG Report Award and the Best ESG Award from a prominent accounting firm[47]. Strategic Acquisitions and Investments - The company has identified a target company for acquisition in the environmental, social, and governance sector, with an expected investment of HKD 3,000,000[90]. - The company has engaged in preliminary discussions for acquiring a target company, with an estimated cash consideration not exceeding HKD 5,800,000[89]. - The company is focusing on strategic acquisitions to enhance its market presence in Hong Kong and China, reflecting its current expansion direction[89]. - The group has committed to invest approximately HKD 1,190,000 for a 5% stake in SMAC Computing Company Limited, with HKD 200,000 already paid as a deposit[80]. Operational Challenges - The group faces significant reliance on project bidding for revenue, which is non-recurring and uncertain[83]. - The group is facing intense competition with no legal barriers, which may affect its market position[87]. - The group is expanding its internal professional team to enhance bidding capabilities, which may increase operational costs without guaranteed proportional revenue[88]. - The board is focused on managing service costs effectively to mitigate financial performance risks associated with inaccurate cost estimates[88].

Financial Performance - The group's revenue decreased from approximately HKD 52.0 million for the year ended March 31, 2024, to approximately HKD 47.6 million for the year ended March 31, 2025, representing a decline of 8.5%[13]. - The company recorded a loss attributable to owners of approximately HKD 9.6 million for the year ended March 31, 2025, compared to a profit of approximately HKD 0.6 million for the year ended March 31, 2024[13]. - The group's gross profit decreased by approximately 25.0% from approximately HKD 23.8 million to approximately HKD 17.8 million, mainly due to a decline in revenue and gross profit margin[57]. - Administrative expenses increased by approximately 17.0% from approximately HKD 22.3 million to approximately HKD 26.1 million, primarily due to increased costs for employee retention and overseas business expansion[60]. - The net cash used in operating activities increased to approximately HKD 3.2 million for the year ended March 31, 2025, compared to approximately HKD 0.3 million for the year ended March 31, 2024[62]. - As of March 31, 2025, the group's cash and bank balances were approximately HKD 11.9 million, a decrease of approximately HKD 2.3 million from HKD 14.2 million as of March 31, 2024[63]. - The debt-to-equity ratio as of March 31, 2025, was approximately 29.5%, compared to 23.4% in 2024[67]. - The company has maintained a prudent financial management approach, ensuring a stable liquidity position throughout the year[69]. - The company has not reported any significant events after the reporting period as of the report date[100]. - The company has not declared any final dividends for the fiscal year ending March 31, 2025[104]. Revenue Breakdown - For the fiscal year ending March 31, 2025, the group's revenue contributions from its four business segments were approximately 63.5% from green building certification consulting, 17.5% from sustainable development and environmental consulting, 7.2% from acoustic, noise, and vibration control consulting, and 11.8% from ESG reporting and consulting services[40]. - Revenue from green building certification consulting decreased by 9.6% from approximately HKD 33.4 million to approximately HKD 30.2 million, primarily due to project delays caused by current market conditions[54]. - Revenue from sustainable development and environmental consulting dropped by 19.5% from approximately HKD 10.4 million to approximately HKD 8.3 million, mainly due to a decrease in average fees for new contracts[54]. - Revenue from environmental, social, and governance (ESG) reporting and consulting increased by approximately 44.7% from approximately HKD 3.9 million to approximately HKD 5.6 million, attributed to an increase in the number of new contracts awarded[55]. Sustainability Initiatives - The company has set a science-based target to reduce Scope 1 and Scope 2 greenhouse gas emissions by 42% by 2030, with a commitment to achieve net-zero emissions by 2044[21]. - The company aims to integrate climate-related risks into its business strategy using the LEAP methodology, ensuring that natural factors are included in decision-making processes[17]. - The company is collaborating with the World Green Building Council to provide net-zero solutions in real estate development and management[21]. - The company is committed to aligning its sustainability reporting with the ISSB's climate-related disclosure standards, enhancing transparency in its climate-related risks and opportunities[22]. - The company has established a net-zero roadmap to transition towards a low-carbon economy, with specific short-term and long-term targets[21]. - The group aims to respond to the Hong Kong government's commitment to achieve carbon neutrality by 2050 and is enhancing its sustainable development strategies in line with the latest climate disclosure regulations from the stock exchange[33]. - The group is committed to enhancing public awareness of environmental and climate issues through its sustainable development initiatives and low-carbon building construction[35]. Market Expansion and Partnerships - The company is actively expanding its overseas market presence, particularly in Southeast Asia and the Middle East, through strategic partnerships and diverse service offerings[23]. - The company signed a total of 9 non-binding cooperation agreements with businesses from the UAE, Malaysia, Vietnam, Indonesia, Singapore, and Hong Kong to promote business cooperation under the Belt and Road Initiative[24]. - The group is actively deepening collaboration with countries along the Belt and Road Initiative, providing consulting, education, green financing, and green technology services to promote multilateral cooperation[35]. - The company has expanded its business into the Malaysian green building and ESG market, establishing an office in Kuala Lumpur in the second half of 2022[73]. Corporate Governance and Management - The board decided not to declare any final dividend for the year ended March 31, 2025 (2024: none)[65]. - The company has established a Responsible Investment Committee in February 2022 to integrate ESG factors into investment planning, ensuring responsible investment principles are embedded throughout decision-making processes[30]. - The company has adopted a dividend policy to enhance transparency, with the declaration of dividends subject to the board's discretion[111]. - The board of directors has no interests in any competing businesses as of the fiscal year ending March 31, 2025[109]. - The company has established service contracts with directors, ensuring compliance with the rotation and re-election provisions[192]. - The company has received independence confirmations from all independent non-executive directors as of March 31, 2025[153]. Employee and Training Initiatives - The group has prioritized employee training and development opportunities, including hosting green-themed events and seminars on ESG and sustainable development topics[31]. - The company held 8 training sessions totaling 54 hours, attracting nearly 120 professionals from various industries to enhance ESG reporting quality[48]. - The company has 616 ongoing projects with a total contract value of approximately HKD 257.0 million as of March 31, 2025[54]. - The group had a total of 80 employees as of March 31, 2025, down from 86 in 2024, with compensation policies aligned with current market practices[66]. Awards and Recognition - The company has been recognized with multiple awards for its leadership in climate action and resilience, including the 2023 Hong Kong Environmental Excellence Award[20]. - The group received multiple awards recognizing its leadership in climate action and sustainable development, including the Hong Kong Green Organization Certification and the TVB ESG Award 2024[32]. - The group achieved multiple international green and healthy building certifications, including the highest level of Platinum certification for the Hong Kong International Trade Tower, scoring 120 points, setting an industry benchmark[28]. Investment and Financial Strategy - The company has committed to investing approximately HKD 1,190,000 for a 5% stake in SMAC Computing Company Limited, with HKD 200,000 already paid as a deposit[82]. - The company has revised the allocation of IPO proceeds, with a total of HKD 33,396,000, of which HKD 23,626,000 remains unutilized[91]. - The company plans to allocate HKD 1,700,000 of the unutilized proceeds for general corporate purposes, which was originally intended for acquisitions or establishing subsidiaries in the Chinese market[97]. - The company has revised its investment strategy to diversify its investment portfolio, with HKD 1,030,000 remaining for future investments[99]. Risk Management - The company faces risks related to reliance on project bidding for revenue, which is non-recurring and uncertain[85]. - The company is enhancing its internal professional team to improve bidding capabilities, which may lead to increased operational costs without guaranteed proportional revenue[90]. - The company has a strong focus on risk management and internal control systems to ensure operational effectiveness[190].

Financial Performance - The group's revenue for the six months ended September 30, 2024, was approximately HKD 20,700,000, a decrease from HKD 25,204,000 in the same period last year, representing a decline of about 17.8%[4] - Gross profit for the same period was approximately HKD 7,600,000, down from HKD 10,989,000, indicating a decrease of approximately 30.5%[4] - The group reported a net loss of approximately HKD 5,900,000 for the six months ended September 30, 2024, compared to a net profit of HKD 33,000 in the previous year, marking a significant shift in performance[4] - The total comprehensive loss for the period was HKD 5,816,000, compared to a loss of HKD 236,000 in the same period last year[8] - The company reported a basic and diluted loss per share of HKD 0.85 for the six months ended September 30, 2024, compared to a profit of HKD 0.01 in the previous year[8] - For the six months ended September 30, 2024, the company reported a loss attributable to owners of approximately HKD 5,900,000, compared to a profit of HKD 48,000 in the same period of 2023, primarily due to a decline in revenue and gross margin[62] Dividends and Financial Management - The board has resolved not to declare an interim dividend for the six months ended September 30, 2024, consistent with the previous year[4] - The company has adopted a prudent financial management policy to maintain a stable financial position[193] - The group is monitoring its short to medium-term liquidity needs and will arrange refinancing of its bank borrowings when appropriate[66] Expenses and Costs - Administrative expenses increased to HKD 14,157,000 from HKD 11,067,000, reflecting a rise of approximately 27.5% due to higher employee costs and expenses related to overseas business expansion[6] - The company's financing costs increased to HKD 425,000 from HKD 247,000 year-over-year[34] - The company’s cash used in operating activities was HKD (3,940,000), compared to HKD (2,300,000) in the previous year[34] - The company’s depreciation of right-of-use assets was HKD 1,957,000, up from HKD 1,819,000 in the previous year[34] Cash and Liquidity - The company's cash and cash equivalents as of September 30, 2024, were HKD 9,850,000, a decrease from HKD 14,225,000 as of March 31, 2024[10] - Total assets less current liabilities amounted to HKD 64,820,000, down from HKD 71,919,000 as of March 31, 2024[10] - Cash and cash equivalents decreased by HKD 4,338,000, ending at HKD 9,850,000 as of September 30, 2024, compared to HKD 7,916,000 in the previous year[36] - The group maintained a robust liquidity position, continuously assessing customer credit and financial status to mitigate credit risk[193] Revenue Segmentation - Revenue from environmental, social, and governance consulting services increased by 8.2% to approximately HKD 2,300,000 for the six months ended September 30, 2024, up from HKD 2,100,000 for the same period in 2023[56] - Revenue from the green building certification consulting segment decreased by 19.6% from approximately HKD 16,100,000 to approximately HKD 13,000,000, attributed to a slowdown in ongoing project contract service work[66] - Revenue from the sustainable development and environmental consulting segment decreased by 18.7% from approximately HKD 4,900,000 to approximately HKD 4,000,000, primarily due to a slowdown in ongoing project contract service work[66] - Revenue from the acoustics, noise and vibration control, and audiovisual design consulting segment decreased by approximately 28.3% from approximately HKD 2,100,000 to approximately HKD 1,500,000, mainly due to a slowdown in ongoing project contract service work[66] Project and Contract Management - The group had 586 ongoing projects with a total contract value of approximately HKD 246,300,000 as of September 30, 2024[66] - The group has 307 active contracts with clients in the green building certification sector as of September 30, 2024, down from 320 contracts as of March 31, 2024[147] - The group is involved in 123 ongoing projects in sustainable development and environmental consulting as of September 30, 2024, slightly up from 122 projects as of March 31, 2024[150] Compliance and Standards - The company has begun evaluating the impact of newly issued and revised Hong Kong Financial Reporting Standards, concluding that their adoption is unlikely to have a significant impact on the interim financial statements[50] - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with significant estimates and assumptions reviewed continuously[45] Environmental and Social Governance - The group’s environmental, social, and governance (ESG) consulting services are positioned to capitalize on new market opportunities in green finance[144] - The introduction of the Qualified Environmental Professionals Ordinance is expected to benefit the group's relevant business, as it enhances the professional recognition of environmental practitioners[65] - The group aims to double global renewable energy generation capacity by 2030, as outlined in the UAE Consensus[134] - The group is committed to achieving net-zero emissions by 2050, in line with international climate agreements[134] Shareholder Information - The weighted average number of ordinary shares for basic loss per share calculation was 697,185,201 for the six months ended September 30, 2024, compared to 694,561,366 in the previous year[104] - The group repurchased a total of 4,320,000 shares at a total cost of HKD 497,000 during the six months ending September 30, 2024[174] - The group has not issued any new shares under the share incentive plan during the reporting period[117]

Financial Performance - The group's revenue for the six months ended September 30, 2024, was approximately HKD 20,700,000, a decrease from HKD 25,204,000 for the same period in 2023[7] - Gross profit for the same period was about HKD 7,600,000, down from HKD 10,989,000 year-on-year[7] - The group reported a net loss of approximately HKD 5,900,000 for the six months ended September 30, 2024, compared to a net profit of HKD 33,000 for the same period in 2023[7] - The total comprehensive loss for the period was HKD 5,816,000, compared to a loss of HKD 236,000 in the same period last year[11] - The basic and diluted loss per share for the period was HKD 0.85, compared to a profit of HKD 0.01 per share in the previous year[11] - The adjusted loss before tax for the group was consistent with the segment performance metrics, excluding share of results of joint ventures and financing costs[61] - For the six months ended September 30, 2024, the company reported a loss attributable to shareholders of HKD 5,937,000 compared to a profit of HKD 48,000 for the same period in 2023[81] - Total revenue for the six months ending September 30, 2024, was HKD 20,713,000, a decrease of 17.8% from HKD 25,204,000 in the same period of 2023[124] - Gross profit decreased by approximately 30.6% to HKD 7,600,000 for the six months ending September 30, 2024, down from HKD 11,000,000 in the previous year[125] Expenses and Costs - Administrative expenses increased to HKD 14,157,000 from HKD 11,067,000, primarily due to higher employee costs to retain talent and expenses related to overseas business expansion[9] - Employee benefits expenses, including salaries and allowances, rose to HKD 17,478,000 from HKD 16,328,000, reflecting a year-on-year increase of approximately 7.1%[81] - Financing costs rose to HKD 425,000 from HKD 247,000, representing an increase of approximately 72.3%[73] - The company's operating cash flow before tax showed a significant loss of HKD 5,944,000, contrasting with a profit of HKD 143,000 in the previous year[36] Dividends and Shareholder Returns - The board decided not to declare an interim dividend for the six months ended September 30, 2024, consistent with the previous year[7] - The company did not declare an interim dividend for the six months ended September 30, 2024, consistent with the previous year[88] Assets and Liabilities - As of September 30, 2024, total assets decreased to HKD 64,820,000 from HKD 71,919,000 as of March 31, 2024, representing a decline of approximately 9.7%[13] - Current liabilities decreased significantly, with trade payables at HKD 2,290,000 compared to HKD 3,205,000 in the previous period, a reduction of about 28.5%[13] - Total equity decreased to HKD 64,422,000 from HKD 70,424,000, marking a decline of about 8.5%[13] - The company’s reserves decreased to HKD 50,381,000 from HKD 56,375,000, a decline of approximately 10.5%[13] - The company reported a net cash outflow from operating activities of HKD 3,940,000 for the six months ended September 30, 2024, compared to HKD 2,300,000 in the same period last year[36] Revenue Segmentation - The company’s revenue contributions from business segments for the six months ended September 30, 2024, were approximately 62.7% from green building certification, 19.3% from sustainable development and environmental consulting, 7.1% from acoustics, noise and vibration control, and 10.9% from ESG reporting and consulting[102] - The revenue from green building certification consulting decreased by 19.6% from approximately HKD 16,100,000 to approximately HKD 13,000,000, attributed to a slowdown in ongoing project contract services[118] - The revenue from sustainable development and environmental consulting decreased by 18.7% from approximately HKD 4,900,000 to approximately HKD 4,000,000, mainly due to a slowdown in ongoing project contract services[118] - The revenue from acoustics, noise and vibration control, and audiovisual design consulting decreased by approximately 28.3% from approximately HKD 2,100,000 to approximately HKD 1,500,000, primarily due to a slowdown in ongoing project contract services[118] - The revenue from environmental, social, and governance (ESG) reporting and consulting increased by 8.2% from approximately HKD 2,100,000 to approximately HKD 2,300,000, due to the acquisition of new projects[122] Strategic Focus and Market Position - The company is focused on expanding its consulting services in the environmental, social, and governance (ESG) reporting sector[40] - The company is positioned to leverage new market opportunities in ESG consulting services and green finance, aligning with global trends in clean energy investment projected to reach USD 2 trillion by 2024[100] - The company’s focus on environmental, social, and governance (ESG) consulting services is expected to drive long-term stable and sustainable development[101] - The group aims to enhance its green technology innovation capabilities and expand into Asian and Middle Eastern markets while deepening cooperation in sustainable finance, climate risk management, green buildings, and ESG[115] Governance and Compliance - The company’s governance structure includes significant ownership concentration among its directors, which may influence decision-making processes[165] - The company is compliant with the Securities and Futures Ordinance regarding the disclosure of interests and shareholdings[166] - The audit committee consists of three independent non-executive directors and is responsible for reviewing financial reporting processes and providing independent opinions[189] - The company has adhered to all provisions of the corporate governance code during the reporting period[182] Shareholder Information - As of September 30, 2024, the company’s major shareholders include Gold Investments, which holds 360,850,800 shares, representing approximately 51.44% of the total equity[169] - The beneficial ownership of Gold Investments is divided between Ms. Guo (70%) and Mr. Hu (30%), both of whom are directors of Gold Investments[166] - Ms. Guo holds 384,370,800 shares in total, equating to a 54.79% ownership stake in the company[163] - Mr. Hu also holds 384,370,800 shares, reflecting the same 54.79% ownership due to shared interests[163] - Choy Wei Ling holds 54,965,800 shares, which accounts for 7.84% of the total equity[169] - City Beat Limited owns 42,776,200 shares, representing 6.10% of the total equity[169] Risk Management - The risk management committee operates under board-approved policies to identify, assess, and hedge financial risks[154]

Financial Performance - The group's revenue increased from approximately HKD 46.7 million for the year ended March 31, 2023, to approximately HKD 52 million for the year ending March 31, 2024, representing a growth of 11.3%[7]. - The company recorded a profit attributable to owners of approximately HKD 600,000 for the year ending March 31, 2024, compared to a loss of approximately HKD 3.3 million for the year ended March 31, 2023, due to more effective direct cost control measures[7]. - The group's total revenue increased from approximately HKD 46.7 million for the year ended March 31, 2023, to approximately HKD 52.0 million for the year ended March 31, 2024, representing a growth of about 11.3%[41]. - The revenue from green building certification consulting rose by 21.5% from approximately HKD 27.5 million to approximately HKD 33.4 million, attributed to an increase in the number of new contracts awarded[41]. - The revenue from sustainable development and environmental consulting slightly decreased by 9.0% from approximately HKD 11.4 million to approximately HKD 10.4 million, mainly due to intense market competition[42]. - The gross profit increased by approximately 43.7% from about HKD 16.6 million to approximately HKD 23.8 million, primarily due to an increase in gross profit margin and a reduction in subcontracting costs[44]. - The group's administrative expenses rose by approximately 3.9% from about HKD 21.5 million to approximately HKD 22.3 million, mainly due to increased personnel costs and stock-based compensation expenses[48]. - The net cash used in operating activities for the year ended March 31, 2024, was approximately HKD 300,000, a decrease compared to approximately HKD 1.5 million for the year ended March 31, 2023[50]. - As of March 31, 2024, the group's cash and bank balances were approximately HKD 14.2 million, an increase of about HKD 1.3 million from approximately HKD 12.9 million as of March 31, 2023[51]. - The total bank financing amounted to approximately HKD 21.0 million, of which approximately HKD 16.5 million had been utilized[52]. - The company's distributable reserves as of March 31, 2024, are approximately HKD 10,300,000, down from HKD 13,000,000 in 2023[121]. - Capital expenditures for the year ended March 31, 2024, amounted to approximately HKD 800,000 for property, plant, and equipment[125]. Sustainability and ESG Initiatives - The company has enhanced its one-stop ESG online management platform, Sustainature, to simplify ESG data processing and reporting[11]. - The company aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 42% by 2030, based on 2023 levels, and is committed to achieving net-zero emissions by 2044[11]. - The company received multiple awards recognizing its leadership in climate action and resilience, including the 2022 Hong Kong Environmental Excellence Award[11]. - The company is actively expanding its overseas market presence while enhancing its core business in environmental, social, and governance (ESG) consulting services[11]. - The company has set short-term and long-term targets to limit global temperature rise to within 1.5 degrees Celsius by 2044[11]. - The company continues to integrate core business development with a focus on sustainable development to maintain its industry leadership[11]. - The company has established its Malaysia office, Allied Environmental Consultants Malaysia Sdn Bhd, focusing on sustainable development and employee welfare, achieving WELL Health-Safety Rating certification by March 2024[13]. - The company has expanded its operations in Vietnam to address environmental degradation and promote responsible business practices in collaboration with local partners[13]. - The company became a formal participant in Core Climate, Hong Kong's first international carbon market, allowing it to trade and retire carbon credits[14]. - The company's ESG team has expanded its offerings, including the Sustainature platform to assist businesses in tracking carbon neutrality progress and generating ESG reports compliant with stock exchange requirements[14]. - The company has received multiple awards, including the Bank of China Hong Kong Corporate Low Carbon Environmental Leadership Award, recognizing its contributions to climate action and sustainable development[20]. - The company is actively promoting green finance and innovation in financial products as a member of the Hong Kong Green Finance Association[19]. - The company is focusing on opportunities in the Middle East, leveraging China's Belt and Road Initiative to support local businesses in investing in green infrastructure projects[13]. - The company has partnered with GRESB and CRREM to enhance ESG practices and carbon risk monitoring in the real estate sector in Hong Kong and mainland China[18]. - The company has successfully achieved various international green building certifications, including LEED Platinum and WELL Gold for its projects[16]. - The group aims to enhance its sustainability strategy in response to global sustainable development needs, focusing on creating a healthier and more resilient environment for future generations[23]. - The group is actively seeking to expand its ESG consulting services and green building certification in response to new market opportunities arising from regulatory changes in Hong Kong[28]. - The group is focused on providing comprehensive ESG reporting solutions to listed companies, helping them identify and disclose key performance indicators related to environmental and social impacts[34]. - The group has launched an online ESG management platform, Sustainature, to streamline ESG data processing for various industries[34]. - The group is expanding its service scope to the Asia-Pacific region, particularly Malaysia, to meet broader audience needs and contribute to global net-zero goals[34]. - The group is committed to adhering to the latest climate disclosure regulations set by the Hong Kong Stock Exchange, supporting sustainable green development[23]. Market Expansion and Business Development - The company is actively expanding its overseas market presence, establishing new business connections in the Middle East and opening new offices in Southeast Asia[39]. - The group established new business relationships in the Middle East (Dubai) and opened a new office in Southeast Asia to improve overseas business performance and market share[23]. - The company has revised its IPO proceeds allocation to reflect current expansion strategies, reducing the budget for strategic acquisitions in Hong Kong to HKD 5,800,000[82]. - The company plans to expand its service offerings to include sustainable development and environmental consulting for various property types, including infrastructure projects[76]. - The company aims to strengthen its environmental, social, and governance (ESG) services, with 20% of IPO proceeds (HKD 6,679,000) allocated for this purpose[82]. - The company is facing intense competition with no legal barriers, which may affect its market position and profitability[78]. - The company has submitted proposals for projects to property developers and government entities, indicating a strategic shift towards broader service offerings[77]. - The company is focusing on obtaining green building certification for its team members to enhance competitiveness and increase bidding success rates[77]. - The company has signed a non-binding memorandum of understanding with Standard Chartered Bank (Hong Kong) to promote sustainable finance in the real estate and infrastructure sectors across Asia[64]. - The company aims to explore opportunities to expand its coverage in environmental consulting, solutions, and products[65]. Corporate Governance and Management - The company has established a remuneration committee to review the compensation policies for directors and senior management based on performance and market practices[159]. - The company has complied with all corporate governance codes as per GEM listing rules throughout the reporting period[168]. - The company has received independence confirmations from all independent non-executive directors as required by GEM listing rules[162]. - The company has appointed Zhongzhu Global CPA Limited as the independent auditor for the fiscal years ending March 31, 2024, and March 31, 2023[180]. - The audit committee, consisting of three independent non-executive directors, held four meetings during the year to review financial reports and internal controls[177]. - The company has not entered into any management or administrative contracts related to its business for the year ending March 31, 2024[160]. - There were no significant violations of applicable laws and regulations during the year ending March 31, 2024[158]. - The company has not made any arrangements to allow directors to benefit from acquiring shares or debentures of the company or any other corporation[143]. - No interests or positions in shares or related securities were reported by directors or senior executives outside of those disclosed in the report[148]. - The company has not adopted any other share plans apart from the share option and incentive plans[144]. Employee and Shareholder Information - As of March 31, 2024, the company's employee count increased to 86 from 78 in 2023, reflecting a focus on enhancing workforce productivity and retention through compensation policies[55]. - The debt-to-equity ratio as of March 31, 2024, was approximately 23.4%, a significant increase from 12.3% in 2023, indicating a rise in leverage[56]. - The company has maintained a prudent financial management approach, ensuring a stable liquidity position while continuously assessing clients' credit and financial conditions[58]. - The stock option plan allows for a maximum of 120,000,000 shares, which is 10% of the total issued shares as of the listing date[130]. - The stock option plan has no options that have lapsed, granted, exercised, or canceled as of March 31, 2024[128]. - The stock reward plan allows for a maximum of 60,000,000 shares after adjustments, aimed at retaining talented employees[136]. - The stock reward plan's vesting schedule includes 33.3% vesting on the first and second anniversaries, with the remainder vesting on the third anniversary[133]. - As of March 31, 2024, a total of 14,846,667 restricted shares were granted under the share incentive plan, with 9,023,334 shares remaining after accounting for 5,823,333 shares that vested or lapsed during the year[137]. - The closing price of the shares immediately prior to the grant date was HKD 0.087, and there are no performance targets associated with the awarded shares[139]. - As of March 31, 2024, the beneficial ownership of shares by directors includes 376,300,800 shares, representing approximately 53.64% of the total shares[145]. - Gold Investments Limited, a company registered in the British Virgin Islands, holds 360,850,800 shares, with ownership split between the chairman and CEO[145]. - The company maintained a public float of at least 25% of its issued shares as required by GEM listing rules[156]. - The company made charitable donations of HKD 15,000 for the year ending March 31, 2024, compared to HKD 5,000 for the previous year[175].

Financial Performance - The group's revenue increased from approximately HKD 46.7 million for the year ended March 31, 2023, to approximately HKD 52 million for the year ended March 31, 2024, representing a growth of 11.3%[13]. - The company recorded a profit attributable to owners of approximately HKD 600,000 for the year ended March 31, 2024, compared to a loss of approximately HKD 3.3 million for the year ended March 31, 2023, primarily due to more effective direct cost control measures[13]. - The gross profit increased by approximately 43.7% from approximately HKD 16.6 million to approximately HKD 23.8 million, mainly due to an increase in gross profit margin and a reduction in subcontracting costs[50]. - Other income, gains, and losses decreased by approximately 92.9% from approximately HKD 2.7 million to approximately HKD 0.2 million, primarily due to the absence of government subsidies under the COVID-19 Employment Support Scheme[53]. - Administrative expenses increased by approximately 3.9% from approximately HKD 21.5 million to approximately HKD 22.3 million, mainly due to increased personnel costs and stock-based compensation expenses[54]. Revenue Segmentation - The revenue from green building certification consulting rose by 21.5% from approximately HKD 27.5 million to approximately HKD 33.4 million, attributed to an increase in the number of new contracts awarded[47]. - The revenue from sustainable development and environmental consulting decreased by 9.0% from approximately HKD 11.4 million to approximately HKD 10.4 million, primarily due to intense market competition[47]. - The revenue from acoustic, noise, and vibration control consulting increased by approximately 26.2% from approximately HKD 3.5 million to approximately HKD 4.4 million, mainly due to an increase in new contracts awarded[47]. - The company’s revenue contributions from its four business segments are approximately 64.2% from green building certification consulting, 19.9% from sustainable development and environmental consulting, 8.4% from acoustics, noise and vibration control, and 7.5% from ESG reporting and consulting services[35]. Operational Developments - The company has officially launched its Malaysia office, Allied Environmental Consultants Malaysia Sdn Bhd, which received the WELL Health-Safety Rating in March 2024, marking a significant milestone in its commitment to sustainable development[19]. - The company has expanded its operations in Vietnam to address environmental degradation and promote responsible business practices[19]. - The group is expanding its overseas market presence, establishing new business relationships in the Middle East (Dubai) and opening new offices in Southeast Asia[29]. - As of March 31, 2024, the group has 320 contracts with clients for green building certification, an increase from 270 contracts a year prior[36]. - The group has 122 ongoing projects in sustainable development and environmental consulting as of March 31, 2024, up from 107 projects a year earlier[38]. Environmental Commitment - The company aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 42% by 2030, based on 2023 levels, and is committed to achieving net-zero emissions by 2044[17]. - The group is committed to achieving carbon neutrality by 2050, in line with the Hong Kong government's climate action blueprint[29]. - The company has developed the Sustainature ESG platform to streamline ESG data processing and reporting, helping businesses meet carbon neutrality goals[20]. - The company is actively promoting cross-sector collaboration to address climate change risks and accelerate global green and zero-carbon transitions through various initiatives[24]. - The company has become a formal participant in Core Climate, Hong Kong's first international carbon market, allowing it to trade and retire carbon credit products[20]. Awards and Recognition - The company has been recognized with multiple awards for its leadership in climate action and resilience, including the 2022 Hong Kong Environmental Excellence Award and the 2023 Ethical Finance Award[17]. - The company received multiple awards in 2023, including the Hong Kong Green Enterprise Award for nine consecutive years, highlighting its industry leadership and market recognition[26]. Strategic Initiatives - The company aims to enhance its green finance and ESG consulting services, accelerating the pace towards carbon neutrality[25]. - The company is actively seeking to expand its ESG services in the Asia-Pacific region, particularly in Malaysia, to meet broader audience needs and contribute to global net-zero goals[40]. - The company aims to enhance its market share in green building certification, green finance, and sustainable development, while also expanding overseas markets under the Belt and Road Initiative[45]. - The group is focused on capturing new market opportunities in ESG consulting, green building certification, and green finance[34]. Financial Management and Investments - The company has committed to invest a total of HKD 1,190,000 for approximately 5% equity in SMAC Computing Company Limited, with HKD 200,000 already paid as a deposit[76]. - The group has unpaid capital commitments amounting to approximately HKD 990,000 related to the investment in SMAC Computing Company Limited, down from HKD 1,190,000 in the previous year[76]. - The group has capital commitments of HKD 500,000 for Huaye Green Finance Public Relations Company Limited, unchanged from the previous year[75]. - The group has capital commitments of HKD 505,000 for Ocean Ecological Technology Limited, also unchanged from the previous year[75]. - The group has capital commitments of HKD 445,000 for Bamboo Forest Technology Limited, consistent with the previous year's figure[75]. Governance and Compliance - The company has adopted a dividend policy to enhance transparency and assist shareholders in making informed investment decisions[120]. - The group has maintained compliance with all corporate governance codes as per GEM Listing Rules Appendix C1 for the year ended March 31, 2024[174]. - The group has confirmed the independence of its non-executive directors as per GEM Listing Rules[168]. - The group has established appropriate insurance arrangements for legal liabilities of directors and senior management arising from business activities[172]. - The group has appointed Zhongzhu Global CPA Limited as its independent auditor for the year ended March 31, 2024[186]. Human Resources and Management - The board believes that expanding the internal team will enhance the group's ability to win future bids and maintain relationships with existing clients[85]. - The group is increasing its professional staff to enhance its bidding capabilities, which may lead to higher costs without guaranteed proportional revenue[82]. - The remuneration policy for directors and senior management is reviewed by a compensation committee based on the group's performance and market practices[165]. - The company has a strong focus on compliance and strategic development, with its executive director also serving as the compliance officer[189]. Shareholder Information - The maximum number of shares that can be granted under the share option plan is 120,000,000 shares, which is 10% of the total issued shares after the placement on the listing date[136]. - The share reward plan allows for a maximum of 1% of the issued share capital as of the adoption date to be granted to participants[140]. - As of March 31, 2024, a total of 14,846,667 restricted shares were granted under the share reward plan, with 9,023,334 shares remaining after accounting for expirations[143]. - The company has maintained a public float of at least 25% of its issued shares as required by GEM listing rules[162]. - The company has not granted or exercised any stock options under the stock option plan during the fiscal year ending March 31, 2024[134].

Financial Performance - The group's revenue for the six months ended September 30, 2023, was approximately HKD 25,200,000, an increase from HKD 22,603,000 for the same period in 2022, representing a growth of about 11.1%[6] - Gross profit for the same period was approximately HKD 11,000,000, improving from HKD 8,357,000 in the previous year, indicating a significant increase in gross margin[6] - The net profit after tax for the six months ended September 30, 2023, was approximately HKD 33,000, compared to a net loss of HKD 997,000 for the same period in 2022, marking a turnaround in profitability[6] - The company reported a basic loss per share of HKD 0.01 for the six months ended September 30, 2023, compared to a loss of HKD 0.20 in the same period last year[10] - The company reported a loss of HKD 985,000 for the six months ended September 30, 2023, compared to a loss of HKD 1,010,000 in the same period last year, indicating a slight improvement[13] - The profit attributable to owners for the six months ended September 30, 2023, was approximately HKD 48,000, compared to a loss of about HKD 985,000 in the same period of 2022, mainly due to increased gross margin[98] Dividends and Shareholder Returns - The board of directors decided not to declare an interim dividend for the six months ended September 30, 2023, consistent with the previous year[6] - The group did not declare an interim dividend for the six months ended September 30, 2023, consistent with the same period in 2022[61] Assets and Liabilities - Total assets as of September 30, 2023, were HKD 78,259,000, a slight decrease from HKD 80,121,000 as of March 31, 2023[12] - Current liabilities decreased to HKD 19,855,000 from HKD 20,843,000, reflecting improved financial management[12] - The total equity attributable to the owners of the company increased to HKD 69,732,000 from HKD 69,591,000, showing a stable equity position[12] - The total assets as of September 30, 2023, amounted to HKD 92,724,000, a slight decrease from HKD 94,294,000 as of March 31, 2023[42] - The total liabilities as of September 30, 2023, were HKD 22,945,000, a decrease from HKD 24,681,000 as of March 31, 2023[42] Cash Flow and Liquidity - The company's cash and cash equivalents decreased to HKD 7,916,000 from HKD 12,940,000, indicating a need for monitoring liquidity[12] - Cash flow from operating activities showed a net outflow of HKD 2,300,000 for the six months ended September 30, 2023, compared to a net inflow of HKD 308,000 in the previous year, reflecting a significant decline[16] - The company had cash and cash equivalents of HKD 7,916,000 at the end of September 30, 2023, down from HKD 13,883,000 at the same time last year, representing a decrease of approximately 43%[17] - As of September 30, 2023, the group's cash and bank balances were approximately HKD 7,900,000, a decrease of about HKD 5,000,000 from HKD 12,900,000 as of March 31, 2023[100] Cost Management - The company has implemented more effective cost control measures, contributing to the improvement in gross profit margin[6] - The group’s service costs remained at approximately HKD 14,200,000 for the six months ended September 30, 2023, primarily due to increased direct labor costs and reduced subcontracting expenses[95] - Gross profit increased by approximately 31.5% from about HKD 8,400,000 for the six months ended September 30, 2022, to about HKD 11,000,000 for the same period in 2023, driven by improved gross margin and reduced subcontracting costs[95] Segment Performance - The segment performance showed a profit of HKD 10,989,000 for the six months ended September 30, 2023, up 31.3% from HKD 8,357,000 in the previous year[40] - The segment revenue from the Green Building Certification Consulting was HKD 16,138,000, representing a 17.5% increase from HKD 13,715,000 in the previous year[40] - The green building certification consulting segment contributed approximately 64.0% to the overall revenue for the six months ended September 30, 2023[78] - Revenue from green building certification consulting rose by 17.7% to approximately HKD 16,100,000, driven by new contracts and significant progress in ongoing projects[90] - Revenue from sustainable development and environmental consulting increased by 11.4% to approximately HKD 4,900,000 due to an increase in the number of new contracts[90] - Revenue from acoustic, noise, and vibration control consulting grew by approximately 3.0% to about HKD 2,100,000, attributed to an increase in new contracts[90] - Revenue from environmental, social, and governance (ESG) consulting decreased by 15.6% to approximately HKD 2,100,000 due to intense market competition[91] Shareholder Information - As of September 30, 2023, the group’s directors and senior executives held approximately 373,100,800 shares, representing 53.19% of the company[126] - Gold Investments holds a significant stake of 360,850,800 shares, representing 51.44% of the company[132] - Choy Wei Ling holds 54,965,800 shares, accounting for 7.84% of the total shares[132] - City Beat Limited owns 42,776,200 shares, which is 6.10% of the company's shares[132] - The major shareholders, including Gold Investments, have confirmed compliance with the non-competition agreement[135] - No major shareholders or their associates have interests in any competing businesses as of September 30, 2023[135] Governance and Compliance - The company has adhered to all provisions of the corporate governance code during the reporting period[138] - The audit committee consists of three independent non-executive directors, including Mr. Li Yongsen (chairman), Professor Lin Jianzhi, and Ms. Wang Qilian, responsible for providing independent opinions on financial reporting processes[143] - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed matters related to audit, internal control, and financial reporting with management[143]

香港交易及結算所有限公司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的任何損失承 擔任何責任。 ALLIED SUSTAINABILITY AND ENVIRONMENTAL CONSULTANTS GROUP LIMITED 沛然環保顧問有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8320） 二 零 二 三╱二 四 年 中 期 業 績 公 告 沛然環保顧問有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事（「董事」） 會（「董事會」）宣佈本集團截至二零二三年九月三十日止六個月的未經審核中期 業績。本公告已載列本公司二零二三╱二四年中期報告（「二零二三╱二四年中 期報告」）全文，並符合聯交所GEM證券上市規則（「GEM上市規則」）有關中期業 績初步公告附載資料之相關規定。載有GEM上市規則規定的資料之二零二三╱ 二四年中期報告印刷本將於適當時候寄發予本公司股東。 承董事會命 沛然環保顧問有限公司 主席兼執行董事 郭美珩 ...

Financial Performance - The group's revenue for the three months ended June 30, 2023, was approximately HKD 11,200,000, compared to HKD 11,548,000 for the same period in 2022, representing a decrease of about 3.0%[6] - Gross profit for the same period was approximately HKD 5,000,000, slightly down from HKD 5,017,000 in the previous year, indicating a marginal decline of 0.3%[6] - The net profit after tax for the three months ended June 30, 2023, was approximately HKD 100,000, a significant decrease of 75.0% compared to HKD 400,000 for the same period in 2022, primarily due to the absence of government subsidies under the "Employment Support Scheme"[6] - The total comprehensive income for the period was a loss of HKD 100,000, compared to a profit of HKD 370,000 in the same period last year, reflecting a decline of 127.0%[10] - Basic and diluted earnings per share for the period were both HKD 0.02, down from HKD 0.05 in the previous year, representing a decrease of 60.0%[10] - Profit attributable to owners for the three months ended June 30, 2023, was approximately HKD 200,000, down from HKD 400,000 in the same period last year, primarily due to the absence of government subsidies[67] Dividends and Shareholder Returns - The board of directors decided not to declare any dividends for the three months ended June 30, 2023, consistent with the previous year[6] - The company did not declare any dividends for the three months ended June 30, 2023, consistent with the previous year[44] Administrative and Operating Expenses - The group's administrative expenses for the three months ended June 30, 2023, were approximately HKD 5,070,000, a decrease of 6.5% from HKD 5,426,000 in the same period last year[8] - The financing costs for the period were HKD 122,000, up 56.4% from HKD 78,000 in the same period last year[31] - The pre-tax profit before income tax for the period was impacted by various expenses, including employee benefits totaling HKD 7,851,000, which increased by 19.6% from HKD 6,561,000 in the previous year[32] - Administrative expenses decreased by approximately 6.6% from HKD 5,400,000 to HKD 5,100,000 for the same period[66] Revenue Segmentation - The revenue from the Green Building Certification Consulting segment was HKD 6,858,000, an increase of 7.6% from HKD 6,375,000 in the previous year[29] - The green building certification consulting segment contributed approximately 61.3% to the total revenue for the three months ended June 30, 2023[50] - The sustainable development and environmental consulting segment accounted for about 18.2% of total revenue during the same period[50] - Revenue from sustainable development and environmental consulting decreased by 27.6% to HKD 2,000,000 due to project delays[61] - Revenue from environmental, social, and governance (ESG) reporting consulting increased by 10.4% to HKD 1,300,000, also due to post-COVID recovery[62] Project and Contract Updates - The company had 279 contracts with clients in the green building certification consulting segment as of June 30, 2023, an increase from 270 contracts as of March 31, 2023[51] - There were 111 ongoing projects in the sustainable development and environmental consulting segment as of June 30, 2023, up from 107 projects as of March 31, 2023[52] - As of June 30, 2023, the company had 515 ongoing projects with a total contract value of approximately HKD 230,200,000[61] Strategic Focus and Market Position - The company continues to focus on providing consultancy services related to green building certification and sustainable development, with operations primarily in Hong Kong, Macau, and mainland China[14] - The company is seeing increased demand for its services due to regulatory requirements in Hong Kong, such as the Environmental Impact Assessment Ordinance[46] - The company is positioned to benefit from the Hong Kong government's initiatives towards sustainable development and climate action, including the 2050 Climate Action Blueprint[48] Financial Management and Commitments - The company maintains a prudent financial management policy, ensuring a robust liquidity position as of June 30, 2023[71] - The company has unutilized capital commitments of approximately HKD 500,000 related to the initial capital injection into Huaye Green Finance Public Relations Limited as of June 30, 2023[77] - The company has committed to injecting HKD 1,190,000 for the acquisition of approximately 5% equity in SMAC Computing Company Limited, with HKD 200,000 already paid as a deposit[80] Shareholder Information and Governance - As of June 30, 2023, major shareholder Gold Investments holds 360,850,800 shares, representing approximately 51.44% of the company's equity[94] - The board of directors and senior executives collectively own 371,430,800 shares, representing approximately 52.95% of the company's equity[89] - The company has established a trust agreement with Bank of China International Trust to manage the share incentive plan[86] - The company has adhered to all provisions of the corporate governance code as of June 30, 2023[103] - The audit committee consists of three independent non-executive directors, responsible for providing independent opinions on financial reporting processes[107]