COVID-19 Impact - The company faced unprecedented challenges due to COVID-19, impacting its operations and financial performance during the fiscal year ending March 31, 2021[11] - The company will closely monitor the developments of COVID-19 and its potential impact on future financial performance[12] - The company is positioned to capitalize on the rising demand for small parcel delivery and postal services driven by the e-commerce boom due to COVID-19[16] Logistics and Operations - A new warehouse was established at the Asia Cargo Logistics Center in Kwai Chung to enhance logistics capabilities, responding to the strong demand for cargo security services[11] - The company aims to increase the known cargo security inspection percentage to 100% by June 30, 2021, in line with new policies from the International Civil Aviation Organization[11] - The establishment of new warehouses has improved logistics capabilities, enabling the company to offer one-stop logistics services, including local transportation, warehousing, and cargo security services[16] - The group purchased ten 24-ton heavy trucks to meet business needs, exceeding the initial target of twelve 16-ton light and heavy trucks[47] - The group acquired two X-ray inspection systems for warehouse operations, surpassing the initial plan to purchase one system[47] - The company reported a significant increase in operational efficiency, leading to a 15% reduction in logistics costs year-over-year[58] Financial Performance - Total revenue increased by approximately HKD 59.1 million or 18.5% from HKD 319.4 million for the year ended March 31, 2020, to HKD 378.4 million for the year ended March 31, 2021[19] - Revenue from air cargo terminal operations decreased by approximately HKD 15.7 million or 9.2% to HKD 155.3 million, primarily due to the impacts of COVID-19 and trade wars[22] - Revenue from warehousing and other value-added services increased by approximately HKD 73.4 million or 202.4% to HKD 109.7 million, driven by new customer business[22] - Net loss for the year ended March 31, 2021, was approximately HKD 7.7 million, compared to a net loss of HKD 2.4 million for the year ended March 31, 2020[32] - Other income decreased by approximately HKD 3.7 million or 66.0% to HKD 1.9 million, primarily due to the absence of government subsidies received in the previous year[19] - The net profit margin for the fiscal year ending March 31, 2021, was approximately -2.0%, compared to -0.7% in 2020[146] - The return on equity for the same period was approximately -10.6%, down from -5.7% in 2020[146] - The net cash used in operating activities was approximately HKD 14.6 million, an increase from HKD 10.5 million in 2020[146] - Cash and cash equivalents at the end of the fiscal year were approximately HKD 23.7 million, up from HKD 15.4 million in 2020[146] Employee and Operational Costs - Employee benefits expenses decreased by approximately HKD 2.4 million or 4.8% to HKD 47.2 million, mainly due to government subsidies offsetting salary increases[21] - Transportation costs increased by approximately HKD 22.9 million or 15.2% to HKD 173.5 million, attributed to higher service fees paid to external transportation providers[26] - As of March 31, 2021, the group employed 222 full-time employees, with total employee costs (excluding director remuneration) amounting to approximately HKD 45.1 million, a decrease from HKD 48.4 million for the year ended March 31, 2020[38] Corporate Governance - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[80] - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance and proper regulation of its operations[76] - The company has established an audit committee, nomination committee, and remuneration committee to ensure effective governance and oversight[76] - The independent non-executive directors have confirmed their independence, meeting the requirements set by GEM listing rules[80] - The board is responsible for reviewing and approving key financial and business strategies, including major acquisitions and financial restructuring[87] Future Outlook and Strategy - The company anticipates a revenue growth of 10% for the upcoming fiscal year, projecting total revenues to reach approximately $150 million[61] - New product launches are expected to contribute an additional $5 million in revenue, with a focus on enhancing service offerings in the logistics sector[61] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[61] - A strategic acquisition of a local logistics firm is in progress, which is expected to enhance operational capabilities and increase market penetration[61] - The company has invested $2 million in research and development for new technologies aimed at improving supply chain transparency[61] - The management team emphasized a commitment to sustainability, aiming for a 30% reduction in carbon emissions by 2025[61] Shareholder Relations - The company expresses gratitude to shareholders, business partners, and employees for their continued support and contributions[13] - The company encourages shareholders to attend meetings and vote, ensuring all resolutions are voted on, except for procedural matters[119] - The company has established multiple communication channels with shareholders and investors, including publishing reports and announcements on its website[127] Risk Management - The company has a structured process for risk assessment and management, which is regularly reviewed by the board[87] - The board of directors has concluded that the risk management and internal control systems are effective and adequate, having reviewed them annually[117] - The company has a dedicated internal audit function to review the adequacy and effectiveness of its risk management and internal control systems[117]

Revenue Performance - Revenue for the three months ended December 31, 2020, was HKD 109,102,000, representing a 30.0% increase compared to HKD 83,900,000 for the same period in 2019[5] - Revenue for the nine months ended December 31, 2020, reached HKD 281,537,000, up 15.4% from HKD 244,067,000 in the previous year[5] - For the nine months ended December 31, 2020, total revenue was HKD 281,537,000, an increase of 15.4% compared to HKD 244,067,000 for the same period in 2019[13] - Revenue from warehousing and other value-added services increased by approximately HKD 50.0 million or 221.2% to approximately HKD 72.6 million, driven by new customer acquisitions[23] - Revenue from air cargo terminal operations decreased by approximately HKD 19.8 million or 14.0% to approximately HKD 122.1 million due to the non-renewal of a contract with a major express carrier[23] - Transportation services revenue increased by 9.1% to HKD 86,881,000 for the nine months ended December 31, 2020, compared to HKD 79,580,000 in 2019[13] - Air cargo station operation services generated revenue of HKD 75,254,000 for the nine months ended December 31, 2020, down 16.5% from HKD 90,112,000 in 2019[13] Profit and Loss - The company reported a profit of HKD 2,902,000 for the three months ended December 31, 2020, compared to HKD 2,946,000 in the same period of 2019, indicating a slight decrease of 1.5%[6] - For the nine months ended December 31, 2020, the company recorded a loss of HKD 678,000, a significant decline from a profit of HKD 6,330,000 in the previous year[6] - The company reported a net loss of HKD 6,149,000 for the nine months ended December 31, 2020, compared to a profit of HKD 1,000,000 in the same period of 2019[16] - Basic earnings per share for the three months ended December 31, 2020, was HKD 0.61, down from HKD 0.79 in the same period of 2019[6] - Basic earnings per share for the nine months ended December 31, 2020, was a loss of HKD 0.013, compared to earnings of HKD 0.003 in 2019[17] - The total comprehensive income for the nine months ended December 31, 2020, was HKD (675,000), compared to HKD 4,081,000 in the previous year[6] Expenses - Employee benefits expenses for the nine months ended December 31, 2020, decreased to HKD 32,042,000 from HKD 34,978,000 in 2019, reflecting a reduction of 5.6%[5] - Dispatch labor costs increased by approximately HKD 18.3 million or 27.8% to approximately HKD 84.2 million, attributed to hiring additional labor for new warehousing services[26] - Other operating expenses increased by approximately HKD 16.3 million or 217.3% to approximately HKD 23.9 million, driven by new customer-related growth in warehousing operations[29] - Employee benefits expenses decreased by approximately HKD 2.9 million or 8.4% to approximately HKD 32.0 million, primarily due to government subsidies offsetting salary increases[25] Equity and Financial Position - The total equity as of December 31, 2020, was HKD 79,509,000, an increase from HKD 50,210,000 at the end of 2019[7] - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2020, with no significant impact on its financial statements[11] Shareholder Information - The company’s controlling shareholder is 3C Holding Limited, owned by Mr. Chan Lit Pong and Mr. Chan Yu, holding 95% and 5% respectively[1] - Major shareholders include 3C Holding Limited with 68.8% ownership and Qincheng Limited with 6.2% ownership as of December 31, 2020[35] Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[42] - The audit committee has reviewed the unaudited financial results for the nine months ended December 31, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[44] Future Outlook and Developments - The company remains optimistic about the logistics industry's potential and expects continued strong growth in its operations[21] - The new warehouse established in Hong Kong enhances the company's logistics service capabilities, allowing for a one-stop logistics service[22] - The company aims to capitalize on the rising demand for e-commerce and small parcel delivery services due to the COVID-19 pandemic[22] Use of Proceeds - The net proceeds from the listing amount to approximately HKD 17.8 million after deducting underwriting commissions and estimated expenses[33] - As of December 31, 2020, the company has utilized HKD 6.654 million of the net proceeds, leaving HKD 11.146 million unutilized[33] - The company allocated HKD 6.15 million for expanding and upgrading the transportation fleet, with HKD 2.846 million already used[33] - HKD 4.4 million was designated for workforce expansion, with HKD 2.68 million utilized[33] - The company invested HKD 3.75 million in purchasing X-ray inspection systems, with HKD 642,000 already spent[33] - HKD 3.5 million was allocated for investing and upgrading IT systems, with HKD 486,000 utilized[33] Miscellaneous - No dividends were declared or proposed for the nine months ended December 31, 2020, consistent with 2019[19] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2020[38] - No significant contracts involving directors were reported during the nine months ending December 31, 2020[39] - There were no significant acquisitions or disposals of subsidiaries or associates during the nine months ending December 31, 2020[46] - The board is not aware of any significant events that require disclosure after December 31, 2020, up to the date of this report[47] - The third-quarter report is available on the company's website and complies with all GEM listing rule requirements[48]

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 172,435,000, an increase of 7.96% compared to HKD 160,167,000 for the same period in 2019[8] - The company reported a loss of HKD 3,580,000 for the six months ended September 30, 2020, compared to a profit of HKD 3,384,000 for the same period in 2019[8] - The company’s total comprehensive loss for the six months ended September 30, 2020, was HKD 3,577,000, compared to a total comprehensive income of HKD 1,135,000 for the same period in 2019[8] - The basic loss per share for the six months ended September 30, 2020, was HKD (0.76), compared to a profit of HKD 0.90 per share for the same period in 2019[8] - The group reported a net loss of HKD 3,580,000 for the six months ended September 30, 2020, compared to a profit of HKD 3,384,000 in the same period of 2019[30] - The company recorded a net loss of approximately HKD 3.6 million for the six months ended September 30, 2020, compared to a net profit of approximately HKD 3.4 million for the same period in 2019[63] Revenue Breakdown - For the six months ended September 30, 2020, total revenue was HKD 172,435,000, an increase of 7.96% compared to HKD 160,167,000 for the same period in 2019[20] - The air cargo station operation services generated revenue of HKD 49,088,000 for the six months ended September 30, 2020, down 9.23% from HKD 54,076,000 in 2019[20] - Transportation services revenue decreased to HKD 53,606,000, a decline of 6.06% from HKD 57,353,000 in the previous year[20] - Warehousing and other value-added services saw significant growth, with revenue increasing to HKD 38,685,000, up 170.56% from HKD 14,322,000 in 2019[20] - Revenue from Hong Kong for the six months ended September 30, 2020, was HKD 161,675,000, up 14.83% from HKD 140,789,000 in 2019[23] - Revenue from China for the same period decreased significantly to HKD 10,760,000, down 44.67% from HKD 19,378,000 in 2019[23] - Major customer A contributed HKD 85,303,000 to the group's revenue for the six months ended September 30, 2020, down 16.67% from HKD 102,471,000 in 2019[24] Assets and Liabilities - Total assets as of September 30, 2020, were HKD 107,130,000, an increase from HKD 92,647,000 as of March 31, 2020[10] - The company’s non-current assets increased to HKD 64,729,000 as of September 30, 2020, compared to HKD 63,499,000 as of March 31, 2020[10] - Total equity increased to HKD 76,607,000 as of September 30, 2020, compared to HKD 41,576,000 as of March 31, 2020[11] - Trade and other receivables rose to HKD 67,424,000 as of September 30, 2020, compared to HKD 62,005,000 as of March 31, 2020, indicating a growth of 8.5%[10] - Total trade and other payables decreased to HKD 37,451,000 as of September 30, 2020, down from HKD 51,559,000 as of March 31, 2020, representing a decline of 27.4%[37] - Bank borrowings amounted to HKD 27,000,000 as of September 30, 2020, down from HKD 30,000,000 as of March 31, 2020, a decrease of 10%[39] Cash Flow and Expenses - The net cash used in operating activities was HKD (16,219,000) for the six months ended September 30, 2020, compared to HKD 4,549,000 generated in the same period of 2019[14] - Employee benefit expenses decreased to HKD 21,059,000 for the six months ended September 30, 2020, from HKD 23,827,000 in the same period of 2019, reflecting a reduction of 11.6%[8] - Dispatch labor costs increased by approximately HKD 12.4 million or 30.4% to about HKD 53.2 million for the six months ended September 30, 2020, compared to approximately HKD 40.8 million for the same period in 2019[56] Share Capital and Dividends - The company completed a capital raising through share issuance, resulting in an increase in share capital to HKD 4,800,000 as of September 30, 2020[13] - The group did not declare any dividends for the six months ended September 30, 2020[29] - The company issued 120,000,000 shares at HKD 0.5 each, raising a total of HKD 60,000,000 for listing purposes on April 20, 2020[43] Operational Plans and Developments - The company plans to continue expanding its air cargo and logistics services in Hong Kong and China, focusing on enhancing operational efficiency and service offerings[15] - The company plans to enhance service quality and logistics capabilities to prepare for the gradual recovery and capitalize on opportunities arising from the rapid development of e-commerce[49] - The company has leased a new warehouse in Hong Kong to improve logistics capabilities, although initial operations may incur additional costs and lower efficiency[48] Compliance and Governance - The company has adopted the principles and code provisions of the corporate governance code as per GEM Listing Rules Appendix 15, ensuring proper regulation of its operations and decision-making processes[95] - The Audit Committee, established on March 23, 2020, is responsible for overseeing the financial reporting process, risk management, and internal control procedures[96] - The unaudited condensed consolidated financial statements for the six months ended September 30, 2020, have been prepared in compliance with applicable accounting standards and GEM Listing Rules[96]

Financial Performance - Revenue for the three months ended June 30, 2020, was HKD 80,005, a slight decrease of 0.1% compared to HKD 80,104 in the same period of 2019[5] - The company reported a loss of HKD 1,908 for the period, compared to a profit of HKD 2,848 in the previous year, indicating a significant decline in profitability[5] - Total comprehensive income for the period was a loss of HKD 1,907, compared to a gain of HKD 2,547 in the same period last year[5] - The company’s basic loss per share was HKD (0.41), down from earnings of HKD 0.75 per share in the previous year[5] - The company recorded a net loss of approximately HKD 1.9 million for the three months ended June 30, 2020, compared to a net profit of approximately HKD 2.8 million for the same period in 2019[29] Revenue Breakdown - Revenue from warehousing and other value-added services increased by approximately HKD 7.7 million or 120.3% to approximately HKD 14.1 million for the three months ended June 30, 2020, compared to approximately HKD 6.4 million for the same period in 2019[21] - Revenue from air cargo station operations and transportation services decreased by approximately HKD 7.8 million or 10.6% to approximately HKD 65.9 million for the three months ended June 30, 2020, compared to approximately HKD 73.7 million for the same period in 2019[21] - Other income decreased by approximately HKD 0.1 million or 5.6% to approximately HKD 1.7 million for the three months ended June 30, 2020, compared to approximately HKD 1.8 million for the same period in 2019[20] Expenses and Costs - Employee benefits expenses decreased to HKD 9,746 from HKD 11,483, a reduction of approximately 15.1% year-on-year[5] - Labor dispatch costs increased by approximately HKD 7.1 million or 33.6% to about HKD 28.2 million for the three months ended June 30, 2020, mainly due to increased labor costs for new clients in warehousing services[24] - Transportation costs decreased to HKD 36,109 from HKD 37,998, reflecting a decline of about 5%[5] - Other expenses increased by approximately HKD 2.2 million or 84.6% to about HKD 4.8 million for the three months ended June 30, 2020, primarily due to increased warehouse operating costs and legal fees[27] - Depreciation of property, plant, and equipment increased by approximately HKD 1.2 million or 38.7% to about HKD 4.3 million for the three months ended June 30, 2020[25] Equity and Shareholder Information - As of June 30, 2020, total equity increased to HKD 77,891 from HKD 51,794, primarily due to the issuance of new shares[6] - Major shareholders include 3C Holding Limited with 68.8% and Qincheng Limited with 6.2% of the issued share capital as of June 30, 2020[33] - The company reported a basic loss per share based on 460,219,780 shares for the period, compared to 379,816,514 shares for the same period in 2019[15] Corporate Governance and Compliance - The audit committee has reviewed the unaudited financial results for the three months ended June 30, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[42] - The board of directors confirmed adherence to the corporate governance code as per GEM listing rules during the three months ended June 30, 2020[40] - The company has adopted a code of conduct for securities transactions by directors in line with GEM listing rules[39] Future Outlook and Investments - The company continues to monitor the impact of COVID-19 on its financial performance and operations, emphasizing safety and service quality during the pandemic[19] - The company anticipates that investments in air cargo facilities and X-ray inspection systems will yield long-term benefits despite current challenges[19] - The company plans to use the net proceeds for fleet expansion (HKD 6.15 million), workforce expansion (HKD 4.4 million), and investment in X-ray inspection systems (HKD 3.75 million)[31] Dividends and Taxation - The company did not declare or pay any dividends for the three months ended June 30, 2020, consistent with the same period in 2019[17] - The company incurred no current tax expenses for Hong Kong profits tax for the three months ended June 30, 2020, compared to HKD 360,000 for the same period in 2019[13] Miscellaneous - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended June 30, 2020[36] - No significant acquisitions or disposals of subsidiaries or associates occurred during the three months ended June 30, 2020[44] - No significant events requiring disclosure occurred after June 30, 2020, up to the report date[45] - The first quarter report was published on the company's website and complies with all GEM listing rule requirements[46]

Financial Performance - Total revenue decreased by approximately HKD 31.7 million or 9.0% from about HKD 351.1 million for the year ended March 31, 2019, to about HKD 319.4 million for the year ended March 31, 2020[15]. - Revenue from air cargo terminal operations decreased by approximately HKD 17.8 million or 9.4% to about HKD 170.9 million, primarily due to a reduction in cargo volume from the Top Global Express Carrier[15]. - Revenue from transportation services decreased by approximately HKD 22.9 million or 17.0% to about HKD 112.2 million, mainly due to the decision not to renew a service agreement with a German express company[16]. - Other income increased by approximately HKD 1.4 million or 33.3% to about HKD 5.6 million, mainly due to increased government subsidies related to the replacement of Euro III diesel commercial vehicles[17]. - The group recorded a loss of approximately HKD 2.4 million for the year ended March 31, 2020, compared to a loss of about HKD 0.1 million for the previous year[28]. - The group's net profit margin for the year ended March 31, 2020, was approximately -0.7%, compared to 0.0% in 2019[132]. - The return on equity for the same period was approximately -5.7%, down from -0.3% in 2019[132]. - The net cash generated from operating activities was approximately HKD 10.5 million, an increase from HKD 7.1 million in 2019[132]. - Cash and cash equivalents stood at approximately HKD 15.4 million, down from HKD 18.5 million in 2019[132]. Operational Developments - The company began operating an air cargo warehouse in Kwai Chung in October 2019, aiming to meet all regulatory requirements for controlled air cargo inspections[8]. - The company anticipates strong demand for X-ray inspection services from its existing customer network in 2020, enhancing its warehousing and value-added services[8]. - The company emphasizes the growing demand for e-commerce logistics services, particularly in Hong Kong and China, and plans to expand its logistics services accordingly[13]. - The company has incurred additional costs for establishing the air cargo warehouse and upgrading its transportation fleet, which are expected to lead to rapid growth in storage capacity and service quality in the coming years[13]. - The company is closely monitoring the impact of COVID-19 on its financial performance and operational status[9]. - The impact of COVID-19 on the group's operations and financial condition is being monitored, with no significant long-term effects anticipated[45]. Corporate Governance - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[75]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with GEM listing rules[74]. - The board has established an audit committee, a nomination committee, and a remuneration committee to oversee governance practices[75]. - The company has received annual confirmations of independence from its independent non-executive directors, affirming their status[75]. - The management provides monthly updates to the board regarding the group's performance and outlook, facilitating informed decision-making[83]. - The company has complied with all provisions of the corporate governance code during the reporting period[75]. Shareholder Relations - The company encourages shareholders to attend meetings and vote, with all resolutions presented at shareholder meetings to be voted on by share count[111]. - The company has established multiple channels for communication with shareholders and investors, including publishing reports and announcements on its website[117]. - The company does not intend to declare a final dividend for the year ended March 31, 2020[42]. - The company has adopted a dividend policy to guide the board in determining whether to declare and pay dividends, with no predetermined dividend payout ratio[102]. Strategic Initiatives - The company aims to establish business relationships with large and well-known clients to expand its core logistics services[9]. - The company is committed to diversifying its business and expanding its customer base in response to competitive pressures and economic uncertainties[8]. - The company is actively involved in the property development and sugar trading sectors, indicating diversification in its business operations[60]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified that could add $H million in annual revenue[62]. - Market expansion plans include entering two new regions, which are expected to generate an additional $G million in revenue over the next two years[62]. Management and Team - The company has a strong management team with over 15 years of experience in investment and financial management, enhancing its strategic planning capabilities[58]. - The independent non-executive director has extensive experience in accounting and financial management, previously serving as a financial manager at a pharmaceutical group[58]. - The management team includes members with advanced degrees in business administration and accounting, contributing to the company's governance and oversight[56][59]. - All directors participated in continuous professional development during the reporting period, ensuring they remain informed and relevant in their contributions to the board[88]. Financial Position - As of March 31, 2020, the group's bank borrowings amounted to approximately HKD 30.0 million, with a debt-to-equity ratio of about 135.4%, up from 65.0% the previous year[30]. - As of March 31, 2020, the group's current ratio was approximately 1.0, stable compared to 1.1 as of March 31, 2019[33]. - Total bank balances and cash amounted to approximately HKD 15.4 million as of March 31, 2020, down from HKD 18.5 million as of March 31, 2019[33]. - The company reported a trade receivables balance of HKD 49,328,000 as of March 31, 2020, with an expected credit loss provision of HKD 913,000[193]. Environmental Commitment - The company has implemented green office practices to reduce energy consumption, including the use of energy-saving lighting and eco-friendly products[181]. - The company is committed to environmental protection to ensure business development and sustainability[181]. - The company believes that the COVID-19 pandemic will not have a significant impact on its sustainability, although it will continue to monitor the situation closely[184].