Financial Performance - For the year ended March 31, 2023, Sanbase Corporation reported a revenue increase of approximately 25% year-on-year to approximately HK$520 million[22]. - The Group's revenue increased by 25.3% from HKD 413.1 million for the year ended March 31, 2022, to HKD 517.6 million for the year ended March 31, 2023, primarily due to the increase in revenue from bare shell fit-out projects[40]. - Gross profit rose by 47.0% to HKD 33.4 million, with a gross profit margin of 6.5%, up from 5.5%[33]. - The Group's overall direct margin increased by 32.7% to HKD 66.9 million in 2023, with a direct margin ratio of 12.9%, up from 12.2% in the previous year[54]. - Profit for the year was HKD 2.9 million, compared to a loss of HKD 7.2 million last year[67]. - The Group successfully turned a profit of HKD 1.0 million, compared to a loss of HKD 5.7 million in the previous year[33]. - The Group's profit for the year was HKD 2.9 million, a significant recovery from a loss of HKD 7.2 million recorded in the previous year[60]. Project and Operational Highlights - The number of bare shell fit-out projects increased from 33 to 40, while the total number of projects rose from 131 to 140[22]. - The company is focusing on larger scale and higher profit margin bare shell fit-out projects in response to improved market conditions[22]. - The Group remains optimistic about the Grade A commercial property fit-out industry in Hong Kong, anticipating increased demand due to new commercial properties and the resumption of cross-border travel[27]. - The Group was awarded 30 new bare shell fit-out projects with a total project sum of HKD 406.2 million from April 1, 2022, to the date of the annual report[48]. - The Mainland segment's revenue decreased by nearly 40% year-on-year, but both gross profit and net profit reversed previous losses, positively contributing to the Group's performance[26]. Economic Context - Hong Kong's GDP in the first quarter of 2023 rose by 2.7% year-on-year, ending four consecutive quarters of decline[21]. - Economic growth in Hong Kong is expected to reach 4% or more during the year, according to forecasts from major banks[21]. - The overall office vacancy rate in Hong Kong remained around 12%, despite an increase in the supply of office buildings[21]. - The outlook for 2023 indicates a stable demand for commercial buildings, with an overall office vacancy rate remaining at 12%[85]. Cost and Expenses Management - Cost of sales rose by 24.0% to HKD 484.2 million in 2023, in line with the revenue increase[50]. - Administrative expenses decreased by 5.3% to HKD 28.7 million in 2023, mainly due to reductions in staff costs and entertainment expenses[57]. - Financial costs decreased from HKD 0.2 million last year to HKD 0.1 million for the year ended March 31, 2023[65]. Shareholder and Dividend Information - No final dividend was recommended for the year ended March 31, 2023, consistent with the previous year[62]. - The Company is committed to a proactive, stable, and sustainable dividend policy, balancing shareholder expectations with prudent fund management[142][146]. - The Board does not recommend the payment of a final dividend for the year ended March 31, 2023, consistent with the previous year where no dividend was declared[143][147]. Leadership and Governance - The Company has a strong leadership team with diverse backgrounds in various industries, enhancing its operational capabilities[98]. - The Company has appointed experienced directors to oversee compliance and corporate governance matters[99]. - The Company is focused on business development and strategic planning to drive growth and operational efficiency[96]. - The Company emphasizes the importance of human resources and administrative management in its operational strategy[94]. Compliance and Risk Management - The Group has complied with all relevant laws and regulations, including the Companies Act and GEM Listing Rules[136]. - The Group's liquidity and financial position may be adversely affected if progress payments or retention money are not received in full and on time[132]. - The Group's business operations may be impacted by external factors such as public health incidents, which could slow project progress[126]. Employee Relations - Competitive remuneration packages were provided to employees to recognize their contributions during the year[134]. - The Group is committed to minimizing its carbon footprint and promoting environmental awareness among employees[127]. Shareholding Structure - As of March 31, 2023, Mr. Wong Sai Chuen holds 112,500,000 shares, representing 56.25% of the issued share capital[190]. - Ms. Hui Man Yee, as the spouse of Mr. Wong Sai Chuen, is also deemed to be interested in 112,500,000 shares, which is 56.25% of the issued share capital[190]. - J&J Partner Investment Group Limited owns 37,500,000 shares, which is 18.75% of the company's issued shares[198]. - No other substantial shareholders or persons have been reported with interests or short positions in the shares of the company as of March 31, 2023[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 SANBASE CORPORATION LIMITED 莊 皇 集 團 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8501） 截至2023年3月31日止年度末期業績公告 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主板 上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險， 並應經過審慎周詳的考慮後方作出投資決定。 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。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關莊皇集團公司（「本公司」）的資料，本公司的董事（「董事」）願就此共同及個別 地承擔全部責任。各董事在作出一切合理查詢後，確認就彼等所知及所信，本公告 ...

Financial Performance - The Group's revenue increased by 15.3% to HK$401.8 million from HK$348.5 million in the same period last year[21]. - Net profit increased by 2.3 times year-on-year to HK$0.2 million[21]. - Revenue for the nine months ended December 31, 2022, increased by 15.3% to HK$401.8 million from HK$348.5 million in the same period last year[35]. - Gross profit rose by 14.3% to HK$38.2 million, with a gross profit margin improvement of 0.8 percentage points to 9.5%[35]. - Profit before income tax surged by 137.0% to HK$19.8 million compared to HK$8.4 million in the previous year[35]. - Profit attributable to owners of the Company increased significantly by 460.3% to HK$11.9 million, up from HK$2.1 million[35]. - Basic and diluted earnings per share rose to HK$6.03, reflecting an increase of 458.3% from HK$1.08[35]. - Profit for the period surged by approximately 223.5% to HK$16.6 million, up from HK$5.1 million in the Previous Period[141]. - Profit attributable to owners of the Company increased to HK$11.9 million, compared to HK$2.1 million in the Previous Period[142]. Project and Market Activity - The number of bare shell fit-out projects undertaken by the Group rose to 35 from 29 in the same period last year[21]. - The fit-out business of the Group has rebounded after a downturn in recent years, driven by an expanded client base and successful project bids[21]. - The Group's reputation and credibility have played a significant role in winning large projects[21]. - The Group plans to leverage its extensive network to secure larger fit-out projects and improve market share[25]. - The outlook for the fit-out industry in Hong Kong is positive, driven by the completion of new commercial buildings and the development of key business districts[27]. - Revenue from bare shell fit-out projects rose significantly by 83.7% to HK$264.4 million, contributing 65.8% of total revenue[126]. - The Group was awarded 27 new bare shell fit-out projects totaling HK$282.8 million since April 1, 2022[127]. Economic and Market Conditions - The overall rental level of Grade A commercial properties in the first 11 months of 2022 only fell by 3.3% year-on-year, indicating strong demand[20]. - The Hong Kong economy is gradually recovering post-COVID-19, which is expected to create new opportunities for the fit-out industry[20]. - The macro environment remains uncertain, but there are signs of market recovery in the second half of 2022[20]. - The demand for Grade A commercial properties remains strong, with expectations of a rebound in the office leasing market in 2023 due to market recovery and new supply[27]. - The gradual relaxation of epidemic prevention policies in Mainland China is expected to stimulate demand for Grade A offices and relevant fit-out services in Hong Kong[117]. - The Group expects increased demand for office leasing and fit-out services due to development plans in northern metropolitan areas and East Kowloon CBDs[119]. Cost and Expenses Management - The Group's efforts to strengthen bargaining power with subcontractors contributed to improved profitability[21]. - Continued focus on enhancing cost control and subcontractor portfolio to improve overall profitability[25]. - The Company reported an increase in administrative expenses for the nine months ended December 31, 2022, totaling HK$19,771,000, down from HK$20,993,000 in the previous year, indicating a reduction of 5.8%[38]. - Total administrative expenses for the three months ended December 31, 2022, were HK$160,663,000, up from HK$134,611,000 in 2021, indicating an increase of about 19.4%[77]. - Financial costs decreased by approximately 49.0% to about HK$79,000 from approximately HK$155,000 in the same period last year[145]. Shareholder Information and Corporate Governance - Mr. Wong Sai Chuen holds 112,500,000 shares in Madison Square International Investment Limited, representing a 56.25% interest in the company[180]. - Ms. Hui Man Yee, Maggie, as the spouse of Mr. Wong Sai Chuen, is also deemed to be interested in 112,500,000 shares of the company[182]. - J&J Partner Investment Group Limited, controlled by Mr. Wong Kin Kei, holds 37,500,000 shares, accounting for an 18.75% interest in the company[180]. - As of December 31, 2022, no other substantial shareholders were reported with interests or short positions in the company's shares exceeding 5%[183]. - The company did not purchase, sell, or redeem any of its listed securities during the current period, except for trustee purchases under the Share Award Scheme[185]. - No directors or controlling shareholders are engaged in any competing business or have conflicts of interest with the company during the current period[186]. - The total number of Shares that may be issued under the Share Option Scheme is 20,000,000 Shares, representing approximately 10% of the total issued share capital of the Company as of the date of this quarterly report[196].

Financial Performance - The unaudited condensed consolidated results for the Group for the three months and six months ended 30 September 2022 were presented[21]. - The Group reported a significant increase in revenue compared to the previous period, reflecting strong market demand[21]. - Revenue for the six months ended September 30, 2022, was HK$227,270,000, representing a year-on-year growth of 7.9% compared to HK$210,692,000 in 2021[35]. - Revenue for the three months ended September 30, 2022, was HK$135,227,000, representing an increase of 10.5% compared to HK$122,209,000 for the same period in 2021[39]. - Profit for the period attributable to owners of the Company for the three months ended September 30, 2022, was HK$2,931,000, an increase of 48.4% from HK$1,977,000 in 2021[41]. - Net profit attributable to owners of the Company increased by 155.0% to HK$3,557,000, up from HK$1,395,000 in the previous year[35]. - Basic and diluted earnings per share rose to HK$1.80, a 155.0% increase from HK$0.70 in the same period last year[35]. - Total comprehensive income for the period was HK$3,670,000, slightly up from HK$3,553,000 in the same period last year[41]. - Profit for the period increased by approximately 42.9% to HK$4.7 million from HK$3.3 million in the previous period[180]. - Profit attributable to owners of the Company increased by approximately 155.0% to HK$3.6 million from HK$1.4 million in the previous period[181]. Market and Growth Strategies - The Company is optimistic about future growth, projecting a revenue increase of 15% for the next fiscal year[21]. - New product launches are planned, aimed at expanding the product line and enhancing market competitiveness[21]. - The Company is exploring market expansion opportunities in Southeast Asia to diversify its revenue streams[21]. - Ongoing research and development efforts are focused on innovative technologies to improve product offerings[21]. - The Group anticipates more favorable policies in the PRC to stimulate economic development and create new business opportunities as the epidemic subsides[24]. - The Group remains optimistic about the medium to long-term development of the Grade A commercial property fit-out market in Hong Kong and Mainland China[29]. - The Group plans to maintain its existing marketing strategy and pursue larger contracts at more competitive prices to capture a higher market share[151]. - The leasing market size for local Grade A offices is expected to further increase, driving demand for fit-out services in the medium to long term[152]. - The Group aims to strengthen relationships with subcontractors and landlords to enhance bargaining power and seize market opportunities during industry recovery[151]. Financial Position and Assets - Total assets as of September 30, 2022, amounted to HK$311,592,000, up from HK$287,042,000 as of March 31, 2022, reflecting a growth of 8.5%[43]. - Cash and cash equivalents as of September 30, 2022, were HK$113,790,000, a decrease from HK$119,776,000 as of March 31, 2022[43]. - Total liabilities as of September 30, 2022, increased to HK$165,142, up 13.9% from HK$144,893 as of March 31, 2022[45]. - Total equity as of September 30, 2022, was HK$146,450, a decrease from HK$149,205 as of March 31, 2022[48]. - Net current assets as of September 30, 2022, were approximately HK$115.7 million, up from HK$109.9 million as of March 31, 2022[183]. - The current ratio was approximately 1.7 times as of September 30, 2022, compared to 1.8 times as of March 31, 2022[187]. - The equity attributable to owners of the Company amounted to approximately HK$140.2 million as of September 30, 2022, compared to HK$136.9 million as of March 31, 2022[187]. Operational Performance - The Group maintained business scale and cash flow through flexible marketing strategies, achieving revenue growth despite adverse market conditions[23]. - The Group's profit before income tax increased by 11.7% to HK$5,884,000 from HK$5,266,000 in the previous year[35]. - The gross profit margin decreased to 7.8% from 9.4%, reflecting a decline of 1.6 percentage points[35]. - Gross profit for the six months ended September 30, 2022, was HK$17,659,000, down 10.9% from HK$19,818,000 in the previous year[39]. - The overall direct margin for the Current Period was approximately HK$30.6 million, a decrease of approximately 6.0% compared to HK$32.5 million in the Previous Period[168]. - The direct margin ratio for the Current Period was approximately 13.5%, down 1.9 percentage points from 15.4% in the Previous Period[169]. - Total cost of sales and administrative expenses rose to HK$130,297, compared to HK$116,839, marking an increase of 11.5% year-over-year for the same period[85]. Regulatory Compliance and Governance - The document discusses the interests and positions of directors and senior management in the company's shares and related securities as of September 30, 2022[200]. - It outlines the requirements under the Securities and Futures Ordinance for disclosure of interests and positions held by directors and senior management[200]. - The document specifies the need for registration of interests in the company's register as per the relevant regulations[200]. - It mentions the obligations for notifying the company and the stock exchange regarding any changes in interests and positions[200]. - The document refers to the specific sections of the Securities and Futures Ordinance that govern the disclosure of interests[200]. - It highlights the importance of compliance with the GEM Listing Rules regarding securities transactions by directors[200]. - The document indicates that the interests and positions include both direct and deemed interests as defined by the law[200]. - It emphasizes the significance of transparency in the ownership of shares and related securities by company officials[200].

Financial Performance - The Group achieved a year-on-year revenue growth of 4% in the first financial quarter despite a declining Grade A commercial property leasing market[24]. - Revenue for the three months ended June 30, 2022, was HK$92,043,000, representing a 4.0% increase compared to HK$88,483,000 in the same period of 2021[38]. - Gross profit decreased to HK$5,766,000, down 19.7% from HK$7,185,000 year-on-year[38]. - Profit before income tax increased significantly to HK$1,074,000, compared to HK$184,000 in the same period last year, marking a 485.0% increase[38]. - The profit attributable to owners of the Company was HK$626,000, a turnaround from a loss of HK$582,000 in the previous year[38]. - Basic and diluted earnings per share were HK$0.32, compared to a loss of HK$0.29 per share in the same period of 2021[38]. - Total comprehensive income for the period attributable to owners of the Company was HK$442,000, compared to a loss of HK$520,000 in the prior year, indicating a significant improvement[44]. - The total comprehensive income for the period was HK$781,000, compared to a loss of HK$272,000 in the prior year, showing a substantial recovery[44]. - The Group recorded a profit of approximately HK$0.8 million for the current period, compared to a loss of approximately HK$0.3 million in the previous period[135]. - Profit attributable to owners of the Company was approximately HK$0.6 million for the current period, compared to a loss of approximately HK$0.6 million in the previous period[135]. Market Conditions - The overall market vacancy rate for Hong Kong's Grade A office market increased to 9.4% by the end of June 2022, with a negative absorption of 96,800 square feet reported in June[23]. - The vacancy rate in Central Hong Kong rose from 7.6% to 7.9%, indicating weak market demand[23]. - The overall vacancy rate for Grade A office space in Hong Kong increased to 9.4% as of June 2022, reflecting weakened market demand[25]. - The Group expects the domestic Grade A office fit-out market to face sustained pressure due to the COVID-19 pandemic, but anticipates opportunities from the development of the Northern Metropolis and Greater Bay Area[155]. - Hong Kong remains a vital international financial center, expected to attract more financial and tech companies as economic activities normalize post-pandemic[159]. Strategic Initiatives - The Group adopted an agile marketing and pricing strategy, resulting in a slight drop in gross profit margin but aimed at boosting market share and business scale[24]. - The aggressive marketing strategy is expected to enhance bargaining power with landlords and sub-contractors in the medium term[24]. - The Group aims to secure more orders from larger companies, positioning itself for profit growth when the industry recovers[24]. - The Group adopted flexible marketing and pricing strategies to maintain business scale and increase market share despite a declining fit-out project volume[26]. - The Group remains optimistic about the market for Grade A commercial fit-out services in Hong Kong and the PRC, aiming for growth through agile strategies and quality services[32]. - The group anticipates gaining a larger market share and solidifying its market position as industry activities recover[159]. Revenue Breakdown - Revenue from Hong Kong was HK$91,336,000, up 10.3% from HK$82,943,000 in 2021, while revenue from the PRC decreased significantly to HK$707,000 from HK$5,540,000[64]. - Revenue from bare shell fit-out projects was approximately HK$54.7 million, contributing to approximately 59.4% of total revenue, and increased by approximately 14.6% from HK$47.7 million in the previous period[120]. - Revenue from restacking projects was approximately HK$31.1 million, contributing to approximately 33.7% of total revenue, compared to HK$25.1 million in the previous period[119]. - The Group's revenue from maintenance and other services was approximately HK$0.3 million, accounting for 0.3% of total revenue, compared to HK$0.015 million in the previous period[119]. Cost and Expenses - Gross profit margin fell to 6.3%, a decrease of 1.8 percentage points from 8.1% in the previous year[38]. - Total cost of sales and administrative expenses amounted to HK$92,366,000, an increase of 5.9% from HK$87,732,000 in the previous year[72]. - Subcontracting charges for the period were HK$78,489,000, representing an increase of 6.8% from HK$73,966,000 in 2021[72]. - Administrative expenses decreased by approximately 5.4% to HK$6.1 million from HK$6.4 million in the previous period, primarily due to a reduction in administrative staff costs[132]. - Finance costs decreased by approximately 37.5% to HK$35,000 from HK$56,000 in the previous period, mainly consisting of interest on lease liabilities[133]. Shareholding Structure - As of June 30, 2022, Mr. Wong Sai Chuen holds 112,500,000 shares, representing 56.25% of the issued share capital[165]. - Ms. Hui Man Yee, Maggie, also holds 112,500,000 shares through her spouse, Mr. Wong Sai Chuen, equating to 56.25% of the issued share capital[165]. - Mr. Wong Kin Kei has an interest in 37,500,000 shares, which is 18.75% of the issued share capital[165]. - Madison Square International Investment Limited, a company controlled by Mr. Wong Sai Chuen, holds 56.25% of the group's issued share capital[168]. - J&J Partner Investment Group Limited, controlled by Mr. Wong Kin Kei, holds 18.75% of the group's issued share capital[168]. - As of June 30, 2022, no other directors or their close associates had interests or short positions in any shares of the company[172]. Corporate Governance - The Company has adopted a code of conduct for securities transactions by Directors that meets the required standards set out in the GEM Listing Rules[200]. - All Directors have confirmed full compliance with the required standards throughout the three months ended 30 June 2022[200].

Company Overview - Sanbase Corporation Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange under stock code 8501[1]. - The company has a board of directors comprising executive and independent non-executive members, including Mr. Wong Sai Chuen as Chairman and CEO[13]. - The company is subject to the GEM Listing Rules, which require accurate and complete information disclosure[6]. - Sanbase Corporation Limited's compliance officer and company secretary is Dr. Sung Tak Wing, Leo, ensuring adherence to regulatory requirements[15]. - The principal bankers for the company include The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited, indicating strong banking relationships[15]. Financial Performance - The annual report includes a consolidated statement of profit or loss and other comprehensive income, detailing the company's financial performance[10]. - Total revenue for the year decreased by approximately 14.2%, from HKD 481,286,000 in 2021 to HKD 413,122,000 in 2022[40]. - The Group experienced a loss before income tax of HKD 6,833,000, compared to a loss of HKD 953,000 in the previous year, representing a 617.0% increase in loss[40]. - Basic and diluted loss per share was HKD (2.90) in 2022, compared to earnings of HKD 0.20 in 2021, highlighting a significant downturn in profitability[40]. - The gross profit margin slightly improved to 5.5% in 2022 from 5.4% in 2021, indicating better cost management[40]. - Gross profit for the year was HKD 22.7 million, down 12.0% from HKD 25.8 million recorded last year[48]. - The loss attributable to owners of the Company was HKD 5.7 million, compared to a profit of HKD 0.4 million in the corresponding period of last year[49]. Revenue Breakdown - Revenue from the restacking business remained stable, indicating consistent market demand despite overall revenue decline[25]. - The design business revenue increased by more than four times during the year, reflecting a rebound after previous adjustments[25]. - The Group's PRC subsidiary reported a revenue growth of 91.2% year-on-year, demonstrating improved service quality and customer recognition[31]. - Revenue from bare shell fit-out decreased by 31.1% to HKD 172.1 million, contributing 41.7% of total revenue for the year[58]. - Revenue from restacking was HKD 200.1 million, accounting for 48.4% of total revenue, showing a slight decrease from the previous year[57]. Operational Challenges - The pandemic led to postponements of certain projects due to strict COVID-19 quarantine measures in Hong Kong and some PRC cities[47]. - The Group lowered bidding prices to secure a higher chance of success in project tenders during the challenging economic environment[47]. - The Group's operations may be affected by public health incidents, which could slow down project progress[111]. - The Group's performance analysis by operating segment is provided in note 5 of the consolidated financial statements[109]. Corporate Governance - The report outlines the corporate governance structure, including various committees such as the audit and remuneration committees[13]. - Sanbase Corporation Limited's auditor is PricewaterhouseCoopers, ensuring the integrity of financial reporting[15]. - The Group has maintained good relationships with customers and suppliers, with no material disputes reported during the year ended 31 March 2022[125]. Future Outlook - The Group plans to leverage its extensive subcontractor network and client resources to capitalize on market recovery opportunities post-pandemic[32]. - The Chairman expressed optimism about the long-term prospects of the fit-out market in Hong Kong and the PRC, despite short-term challenges[32]. - The Group expects a rebound in demand for fit-out services as companies consider lease renewals and relocations[74][78]. - The Group remains optimistic about the Grade A commercial property fit-out market in Hong Kong as the pandemic subsides, with expectations for the office leasing market to return to an upward trajectory in Q2 and Q3 2022[74][78]. Shareholder Information - The Group did not have any significant investments, material acquisitions, or disposals during the year ended 31 March 2022[71]. - The Group has not recommended the payment of a final dividend for the year ended 31 March 2022, consistent with the previous year[137]. - The Group's dividend policy aims to balance shareholder expectations with prudent fund management, subject to shareholder approval[135]. - As of March 31, 2022, the Company's distributable reserves amounted to HKD 73.4 million, a decrease from HKD 78.0 million in 2021[145]. Employee and Management Information - The Group focuses on providing competitive remuneration packages to employees to recognize their contributions[126]. - As of March 31, 2022, the total employee cost was approximately HKD 44.9 million, slightly down from HKD 45.2 million as of March 31, 2021, with 83 employees[77]. - The management team anticipates that the efforts made during the pandemic will lead to improved financial performance in the latter part of 2022[75][78]. Risk Factors - The Group is exposed to various risks, including impacts from the pandemic, reliance on subcontractors, and project-based revenue fluctuations[111]. - The Group's liquidity and financial position may be adversely affected if progress payments or retention money are not received in full and on time[120]. - The Group's fee collection and profit margins are dependent on the terms of work contracts, which may not be regular[111]. Share Option and Incentive Plans - The Share Option Scheme allows for the issuance of up to 20,000,000 shares, which is approximately 10% of the total issued share capital as of the annual report date[184]. - The Share Award Scheme permits the grant of up to 2,056,000 shares, representing about 1.03% of the total issued share capital as of the annual report date[188]. - The company aims to attract suitable personnel for its ongoing operations and development through the share incentive plan[189].

Financial Performance - Revenue for the third quarter declined by approximately 25.1% year-on-year to HK$348.5 million[25] - Net profit for the third quarter decreased by approximately 49.0% year-on-year to HK$5.1 million[26] - For the nine months ended December 31, 2021, the company's revenue decreased by 25.1% to HK$348.5 million compared to HK$465.0 million in the same period of 2020[41] - The net profit attributable to owners of the company for the nine months was HK$2.1 million, a decline of 75.8% from HK$8.8 million in the previous year[41] - The profit attributable to owners of the Company decreased by 75.8% to HK$2.1 million for the Current Period, down from HK$8.8 million for the Previous Period[124] - The Group recorded a revenue decrease of 25.1% to HK$348.5 million for the nine months ended 31 December 2021, down from HK$465.0 million for the same period in 2020[123] Gross Profit and Margins - The gross profit margin recorded a substantial year-on-year increase due to higher revenue contribution from the design business[26] - The gross profit margin improved to 8.7%, up from 7.9% year-on-year, due to an increase in the proportion of high-margin design business[41] - Gross profit decreased by 17.5% to HK$30.3 million for the Current Period, compared to HK$36.7 million for the Previous Period[123] Market Conditions - The vacancy rate of Grade A commercial properties in Hong Kong reached 9.6% by the end of December 2021, a year-on-year increase of 0.7 percentage points[25] - The vacancy rate in Central, a key area for Grade A commercial buildings, reached 8.0%[25] - The Group's performance reflects the impact of the emerging COVID-19 variant on Hong Kong's economic activities[25] - The vacancy rate for Grade A commercial properties in Hong Kong reached a recent high at the end of last year, indicating challenges in the market[131] Strategic Approach - The Group adopted a conservative approach by participating in more small-to-medium-scale projects to maintain market position and operating cash flow[26] - The Group's strategy focused on stability and development amidst challenging macroeconomic conditions[25] - The Group aims to strengthen its fit-out business in both Hong Kong and the PRC in anticipation of a market rebound as the pandemic subsides[133] - The Group plans to solidify its business presence in the PRC by participating in more and larger projects, particularly in the Guangdong–Hong Kong–Macau Greater Bay Area[132] Operational Metrics - The operating profit before income tax for the nine months was HK$8.4 million, down 37.3% from HK$13.4 million in the previous year[41] - Total comprehensive income for the period attributable to the owners for the three months ended December 31, 2021, was HK$814,000, a decline of 62.8% from HK$2,189,000 in 2020[49] - The total equity of the company as of December 31, 2021, was HK$154,495,000, an increase from HK$158,728,000 as of December 31, 2020[52] Employee and Shareholder Information - The Group had a total of 83 employees as of December 31, 2021, a decrease from 87 employees as of March 31, 2021[170] - Mr. Wong Sai Chuen holds 112,500,000 shares, representing 56.25% of the issued share capital of the company[190] - Ms. Hui Man Yee, Maggie, as the spouse of Mr. Wong Sai Chuen, is also deemed to be interested in 112,500,000 shares, equating to 56.25%[190] - The company has a significant concentration of ownership, with major shareholders holding over 5% of the shares[190] Cost Management - For the three months ended December 31, 2021, total cost of sales and administrative expenses amounted to HK$134,611,000, a decrease of 17% from HK$161,962,000 in the same period of 2020[89] - Subcontracting charges for the nine months ended December 31, 2021, were HK$294,896,000, down 26% from HK$398,360,000 in the previous year[89] - Administrative expenses decreased by HK$5.8 million or 21.7% to HK$21.0 million for the current period compared to HK$26.8 million in the previous period[153] Future Outlook - The company remains optimistic about the long-term prospects of the fit-out market in Hong Kong and the PRC despite short-to-medium term challenges[34] - The Group believes that the demand for high-end office fit-out services will rebound alongside the recovery of the economy post-pandemic[135] - The Group will closely monitor market dynamics and seek other development opportunities to enrich its business portfolio and enhance shareholder returns[135]

Company Overview - Sanbase Corporation Limited is listed on the GEM of the Hong Kong Stock Exchange under stock code 8501[1]. - The company acknowledges the higher investment risks associated with small and mid-sized companies listed on GEM[2]. - The company has a principal place of business and headquarters located in Hong Kong at 16/F, Loon Kee Building, 267-275 Des Voeux Road Central[18]. - The registered office is situated in the Cayman Islands at 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002[21]. - The Group's ultimate holding company is Madison Square International Investment Limited, with Mr. Wong Sai Chuen as the controlling shareholder[1]. Financial Performance - Revenue for the six months ended 30 September 2021 decreased by 30.1% YoY to HK$210.7 million, down from HK$301.6 million in the same period last year[39]. - Net profit attributable to owners of the Company dropped by 79.6% YoY to HK$1.4 million, compared to HK$6.8 million in the previous year[39]. - Basic and diluted earnings per share decreased by 79.7% to HK$0.70 from HK$3.45 in the previous year[39]. - Revenue for the three months ended September 30, 2021, was HK$122,209,000, a decrease of 22% compared to HK$156,624,000 for the same period in 2020[42]. - Gross profit for the six months ended September 30, 2021, was HK$19,818,000, down from HK$25,545,000 in the previous year, reflecting a decline of 22%[42]. - Profit for the period attributable to owners of the Company was HK$1,977,000 for the three months ended September 30, 2021, compared to HK$2,197,000 in the same period of 2020[44]. - The Group recorded losses for the first time in the first quarter of the fiscal year due to the impact of the COVID-19 pandemic[27]. Revenue Breakdown - Revenue from the PRC's business increased by approximately 117.3% YoY, indicating a recovery in demand for premium fit-out solutions[32]. - Revenue from Hong Kong was HK$199,227,000 for the six months ended September 30, 2021, down 32.8% from HK$296,299,000 in 2020[96]. - The Group's revenue from the PRC for the six months ended September 30, 2021, was HK$11,465,000, a decrease of 52.5% compared to HK$5,275,000 in 2020[96]. - Revenue from bare shell fit-out dropped by 50.1% to HK$96.7 million, contributing 45.9% of total revenue in the current period compared to 64.3% in the previous period[184]. Cost and Expenses - Total cost of sales and administrative expenses reduced by 25.5% to HK$116,839,000 for the three months ended September 30, 2021, from HK$156,756,000 in 2020[102]. - Subcontracting charges decreased by 26% to HK$101,285,000 for the three months ended September 30, 2021, compared to HK$136,853,000 in the same period of 2020[102]. - Administrative expenses decreased from HK$17.1 million in the previous period to HK$13.7 million in the current period, mainly due to reduced staff costs and legal fees[197]. Assets and Liabilities - Total assets as of September 30, 2021, amounted to HK$311,063,000, an increase from HK$265,409,000 as of March 31, 2021[46]. - As of September 30, 2021, total liabilities increased to HK$158,482,000, up 36.3% from HK$116,204,000 as of March 31, 2021[48]. - Trade payables rose to HK$134,983,000, a 32.1% increase from HK$102,215,000[48]. - Trade receivables increased to HK$80.4 million as of 30 September 2021, compared to HK$61.3 million as of 31 March 2021[18]. Management and Governance - The audit committee is chaired by Mr. Cheung Chi Man, Dennis, with other members including Mr. Chan Chi Kwong, Dickson[12]. - The company has appointed PricewaterhouseCoopers as its auditor[16]. - The management discussion and analysis section is included in the interim report, providing insights into the company's performance[9]. Market Conditions - The vacancy rate for Grade A office buildings in Hong Kong rose to 9.8% in September 2021, an increase of 1.2% YoY, with Kowloon East reaching 13.8%[26]. - The Group remains confident that financial performance will improve as the bare shell fit-out market gradually recovers[27]. - The Group believes that demand for fitting-out services will eventually recover post-pandemic, with plans to explore new development opportunities[175]. Future Outlook - The Company plans to enhance service quality in the PRC, broaden the subcontractor network, and develop new customers to promote business growth[34]. - The Group aims to consolidate its existing business and improve the portfolio of subcontractors to enhance service quality and competitiveness[173]. - The Group is actively seeking more projects in the PRC to diversify its geographical distribution, with signs of revenue recovery in its PRC subsidiary[174].

Financial Performance - The Group recorded its first loss since listing due to the impact of the COVID-19 pandemic, with a significant decline in revenue[21]. - Revenue for the three months ended June 30, 2021, was HK$88,483,000, a decrease of 39.0% compared to HK$144,950,000 in the same period of 2020[36]. - Gross profit for the same period was HK$7,185,000, down 52.7% from HK$15,200,000 year-on-year[36]. - The company recorded a loss attributable to owners of the Company of HK$582,000, compared to a profit of HK$4,638,000 in the same period last year, marking a 112.5% decline[36]. - Basic and diluted loss per share was HK$0.29, a decrease of 112.4% from earnings of HK$2.34 per share in the prior year[36]. - The prolonged adverse economic effects of COVID-19 in Hong Kong led to cash flow issues for project owners and customers, resulting in project delays and slowdowns[120]. - The Group reported a loss for the period of HK$272,000, compared to a profit of HK$6,510,000 in the same quarter of 2020[40]. - Total comprehensive loss for the period was HK$177,000, a significant drop from a total comprehensive income of HK$6,517,000 in the prior year[40]. Market Conditions - Economic activities in Hong Kong continued to slump, affecting overall demand for Grade A office space[21]. - The vacancy rate of Hong Kong Grade A office rose to 9.5% by the end of June 2021, an increase of 1.9% year-on-year[21]. - The Central area's vacancy rate remained high at 7.4%, indicating sluggish service demand[21]. - Demand for premium office fit-out services in Hong Kong is expected to remain weak in the second half of 2021, with high vacancy rates in Grade A commercial offices[152]. - The overall business environment remains challenging, with enterprises adopting a wait-and-see approach[21]. Strategic Adjustments - The Group adjusted its go-to-market strategy to focus on lower bidding prices for new projects and to seize opportunities in the churn works market[22]. - The Group faced challenges in tendering due to fierce competition and a conservative market attitude towards business expansion[21]. - The Group's strategy aims to maintain healthy cash flow and business scale despite lower margins in churn works projects[22]. - The economic impact of COVID-19 has led to a strategic shift in project bidding practices to secure more contracts[120]. - The Group has been aggressively tendering for new projects with lower bidding prices to increase the chances of successful bids[120]. Revenue Sources - Revenue from the PRC business nearly tripled year-on-year, indicating a strong recovery post-pandemic[28]. - Revenue from the Hong Kong segment was HK$82,943,000, down 42.2% from HK$143,533,000 in 2020, while revenue from the PRC segment increased to HK$5,540,000 from HK$1,417,000[68]. - The Group's revenue primarily comes from providing interior fit-out solutions, with a significant focus on the Hong Kong and PRC markets[65]. - The Group's revenue from restacking services increased significantly to HK$25,093,000 in 2021 from HK$7,561,000 in 2020, representing a growth of 231.5%[65]. - The Group's design services revenue rose to HK$2,917,000 in 2021 from HK$517,000 in 2020, marking a substantial increase of 463.5%[65]. - The Group's churn works revenue was HK$9,689,000, up from HK$6,763,000 in the previous year, reflecting a growth of 43.5%[65]. Cost Management - Total cost of sales and administrative expenses decreased to HK$87,732,000 in 2021 from HK$136,980,000 in 2020, representing a reduction of approximately 36%[77]. - Staff costs for the three months ended June 30, 2021, were HK$10,300,000, slightly down from HK$10,832,000 in 2020, indicating a decrease of about 4.9%[82]. - Administrative expenses were HK$6,434,000, a decrease of 11% from HK$7,230,000 in 2020[40]. - The Group's cost of sales decreased from HK$129.8 million for the Previous Period to HK$81.3 million for the Current Period, representing a decrease of approximately 37.3%[129]. Shareholding Structure - Mr. Wong Sai Chuen holds 112,500,000 shares, representing 56.25% of the issued share capital[163]. - Ms. Hui Man Yee, Maggie, holds 112,500,000 shares through her spouse's controlled corporation, also representing 56.25%[164]. - Mr. Wong Kin Kei holds 37,500,000 shares, representing 18.75% of the issued share capital[165]. - Madison Square International Investment Limited is a beneficial owner of 112,500,000 shares, accounting for 56.25%[174]. - J&J Partner Investment Group Limited is a beneficial owner of 37,500,000 shares, accounting for 18.75%[174]. - The company’s shareholding structure indicates significant control by Mr. Wong Sai Chuen and his spouse, with a combined interest of 56.25%[173]. Future Outlook - The company remains cautiously optimistic about the long-term prospects of the Grade A office fit-out market in Hong Kong, anticipating a gradual rebound in demand[29]. - The Group anticipates better performance in its PRC business, aiming to strengthen its foothold and seek collaboration opportunities in the Greater Bay Area[153]. - The Group plans to focus on fit-out services in the long run, expecting a gradual rebound in demand for Grade A office leasing as the economy stabilizes[154]. - The Group will continue to explore opportunities for launching its financing business to support long-term growth[157].

Financial Performance - Revenue decreased by 24.6% year-on-year to HKD 481.3 million[26] - Revenue decreased by 24.6% to HKD 481.3 million from HKD 638.0 million in the previous year[46] - Gross profit fell by 60.3% to HKD 25.8 million, with a gross profit margin of 5.4% compared to 10.2% last year[40][46] - Profit attributable to owners of the Company decreased by 97.6% to HKD 0.4 million from HKD 16.2 million in the previous year[47] - The group's profit for the year decreased from HKD 21.7 million last year to HKD 0.4 million for the year ended March 31, 2021[77] - Profit attributable to owners of the Company fell by 97.6% to HKD 0.4 million for the current year, compared to HKD 16.2 million last year[50] - Revenue from bare shell fit-out projects decreased by 53.9% to HKD 249.8 million, contributing 51.9% of total revenue for the year ended 31 March 2021[57] - Other income amounted to HKD 3.7 million for the current year, attributed to government subsidies under the Employment Support Scheme[67] Market Conditions - The number of projects awarded decreased from 234 in 2020 to 155 in 2021[26] - Vacancy rate of Grade A commercial buildings in Hong Kong rose to 9.5% in April 2021, a year-on-year increase of 4.7 percentage points[26] - The vacancy rate for Grade A offices in Hong Kong reached 9.5%, an increase of 4.7 percentage points year-on-year, impacting demand for high-end fit-out services[29] - The overall economic recovery in Hong Kong and globally is expected to drive demand in the local leasing and fit-out market[30] - The Chairman expressed confidence in the long-term demand for Grade A office space, anticipating a recovery in the fit-out business post-pandemic[35][38] Strategic Initiatives - The Group aims to explore business expansion into the Greater Bay Area while maintaining strong relationships with customers and subcontractors[36] - The Group's strategy includes tendering for new projects at lower bidding prices to increase the chances of securing contracts[46] - The Group is committed to providing high-quality fit-out services while delivering sustainable returns to shareholders[37] - The Group aims to maintain a healthy financial position while preparing for future development[26] - The Group is committed to minimizing its carbon footprint and natural resource consumption across all business operations[145] - The company plans to further expand its business into the Greater Bay Area and strengthen collaborations with property management companies and developers[107] - Fit-out services will continue to be the main driver of the company's future growth, leveraging its reputation and technical knowledge[108] Employee and Governance - The Group is committed to supporting its employees during challenging times[26] - The total number of employees as of March 31, 2021, was 87, down from 94 the previous year[105] - The Group provides competitive remuneration packages to employees to recognize their contributions and retain talent[149] - The Group's principal activity is investment holding, primarily engaged in providing interior fit-out solutions in Hong Kong and the PRC[135] - The Company’s board of directors includes both executive and independent non-executive directors, with a total of six directors listed in the report[184][187] Financial Position - The Group's net current assets as of 31 March 2021 were HKD 117.8 million, down from HKD 128.2 million in the previous year[73] - As of March 31, 2021, the Company's distributable reserves amounted to HKD 78.0 million, an increase from HKD 74.0 million in 2020, representing a growth of approximately 5.4%[170][176] - The Group's current ratio was 2.0 times, up from 1.6 times as of March 31, 2020[80] - The equity attributable to owners of the company was HKD 142.5 million as of March 31, 2021, compared to HKD 141.8 million as of March 31, 2020[81] Risks and Challenges - The Group's operations may be affected by external factors such as the pandemic, which could slow down project progress[137] - The Group relies on subcontractors for various trades, exposing it to risks associated with fluctuations in subcontracting costs and performance issues[137] - The business is project-based, with fee collection and profit margins dependent on contract terms, which may not be regular[137] - The Group's liquidity and financial position may be adversely affected if progress payments or retention money are not received in full and on time[147] - The Group's principal risks and uncertainties include dependency on subcontractors and the impact of public health incidents[137] Corporate Actions - The Board did not recommend the payment of a final dividend for the year ended 31 March 2021[72] - The Company has not recommended the payment of a final dividend for the year ended March 31, 2021[162] - The Group's dividend policy aims to balance shareholder expectations with prudent fund management[161] - Charitable and other donations made by the Group during the year were less than HKD 0.2 million, compared to less than HKD 0.1 million in 2020, indicating a slight increase in philanthropic efforts[171][177]