[Financial Highlights](index=3&type=section&id=Highlights) The company experienced a significant decline in revenue and gross margin, resulting in a net loss for the nine months ended December 31, 2020 Key Performance Indicators for the Nine Months Ended December 31, 2020 | Metric | Nine Months 2020 | Nine Months 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | approximately **HKD 180.8 million** | approximately **HKD 299.4 million** | -39.6% | | Gross Margin | approximately **1.7%** | approximately **3.8%** | -2.1 percentage points | | (Loss)/Profit Attributable to Owners of the Company | Loss of approximately **HKD 3.0 million** | Profit of approximately **HKD 4.2 million** | -171.4% | - The Board does not recommend the payment of any dividend for the nine months ended December 31, 2020[8](index=8&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the income statement, equity changes, and explanatory notes [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group transitioned from profit to loss, with revenue decreasing by **39.6%** to **HKD 180.8 million** and gross profit declining by **72.8%** to **HKD 3.05 million**, resulting in a net loss of **HKD 2.99 million** Consolidated Statement of Profit or Loss (For the Nine Months Ended December 31) | Item | 2020 ('000 HKD) | 2019 ('000 HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | **180,798** | **299,381** | -39.6% | | Gross Profit | **3,053** | **11,245** | -72.8% | | (Loss)/Profit Before Tax | **(3,705)** | **4,794** | From Profit to Loss | | (Loss)/Profit and Total Comprehensive (Loss)/Income for the Period | **(2,986)** | **4,221** | From Profit to Loss | | Basic (Loss)/Earnings Per Share (HK cents) | **(0.75)** | **1.06** | From Profit to Loss | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total equity decreased from **HKD 62.66 million** to **HKD 59.68 million** as of December 31, 2020, primarily due to a **HKD 2.99 million** loss for the period Summary of Changes in Equity | Item | Amount ('000 HKD) | | :--- | :--- | | As at April 1, 2020 (Audited) | **62,661** | | Loss and Total Comprehensive Loss for the Period | **(2,986)** | | As at December 31, 2020 (Unaudited) | **59,675** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's core business of selling diesel and related products in Hong Kong, with **99.7%** of revenue from diesel sales, and confirm no dividend recommendation for the period - The Group is principally engaged in the sale of diesel and related products in Hong Kong[15](index=15&type=chunk) Revenue Composition for the Nine Months Ended December 31, 2020 | Revenue Source | Amount ('000 HKD) | % of Total Revenue | | :--- | :--- | :--- | | Diesel Sales | **180,190** | **99.7%** | | AdBlue Sales | **333** | **0.2%** | | Ancillary Transportation Services | **275** | **0.1%** | | **Total** | **180,798** | **100%** | - The Board does not recommend the payment of any dividend for the nine months ended December 31, 2020[44](index=44&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, future outlook, and detailed financial analysis for the reporting period [Business Review](index=13&type=section&id=Business%20Review) The Group faced significant challenges due to the COVID-19 pandemic, leading to reduced diesel demand from cross-border transportation and construction, resulting in substantial revenue and profit decline despite competitive pricing - The Group's principal business is the sale of diesel and related products in Hong Kong, primarily to logistics and construction companies[48](index=48&type=chunk) - The COVID-19 pandemic led to economic contraction, tightened customs clearance measures between Hong Kong and mainland China, severely impacting cross-border transportation services and reducing diesel demand from the logistics sector[49](index=49&type=chunk)[50](index=50&type=chunk) - Hong Kong government's anti-epidemic measures caused suspension of construction projects, leading to uncertain demand for diesel used in construction machinery[53](index=53&type=chunk) - Despite offering competitive prices to maintain sales volume, declining gross margins and increasing operating costs resulted in a net loss for the reporting period[54](index=54&type=chunk) [Future Prospects](index=14&type=section&id=Future%20Prospects) The Group will closely monitor the COVID-19 pandemic, prioritize cash flow management, adjust business plans for operational stability, and prepare for business recovery while ensuring employee safety - The Group will closely monitor the development of the COVID-19 pandemic, prioritize cash flow management, integrate resources, and adjust business plans to prepare for business recovery[55](index=55&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) The Group's financial performance significantly declined, with total revenue down **39.6%** to **HKD 180.8 million** due to a **41.1%** drop in average diesel selling price, leading to a **72.3%** gross profit decrease and a net loss of **HKD 3.0 million** [Revenue, Sales Volume and Selling Price](index=15&type=section&id=Revenue%2C%20Sales%20quantity%20and%20Selling%20price) For the nine months ended December 31, 2020, Group revenue decreased by **39.6%** to **HKD 180.8 million**, primarily due to a **41.1%** drop in average diesel selling price to **HKD 2.58 per liter**, despite a **2.9%** increase in sales volume Changes in Diesel Sales Volume and Selling Price (For the Nine Months) | Metric | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales Volume | **69.8 million liters** | **67.8 million liters** | +2.9% | | Average Selling Price | **HKD 2.58/liter** | **HKD 4.38/liter** | -41.1% | [Cost of Sales](index=16&type=section&id=Cost%20of%20sales) Cost of sales decreased by **38.3%** to **HKD 177.7 million**, aligning with revenue decline, as average unit diesel procurement cost fell by **40.6%** in line with market trends - Cost of sales decreased by **38.3%** to **HKD 177.7 million**, consistent with the decline in revenue[69](index=69&type=chunk) - The average unit procurement cost of diesel decreased by **40.6%** from approximately **HKD 4.16 per liter** to approximately **HKD 2.47 per liter**, consistent with market trends[70](index=70&type=chunk) [Gross Profit and Gross Profit Margin](index=17&type=section&id=Gross%20profit%20and%20gross%20profit%20margin) Gross profit significantly decreased by **72.3%** to **HKD 3.1 million**, and gross margin sharply declined from **3.8%** to **1.7%** due to competitive pricing in a challenging business environment Changes in Gross Profit and Gross Profit Margin (For the Nine Months) | Metric | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | approximately **HKD 3.1 million** | approximately **HKD 11.2 million** | -72.3% | | Gross Margin | approximately **1.7%** | approximately **3.8%** | -2.1 percentage points | [Loss for the Period](index=19&type=section&id=Loss%20for%20the%20period) The Group recorded a net loss of approximately **HKD 3.0 million** for the period, a **171.4%** decrease from the prior year's net profit of approximately **HKD 4.2 million**, due to adverse business conditions and increased operating costs - For the nine months ended December 31, 2020, the Group recorded a net loss of approximately **HKD 3.0 million**, compared to a net profit of approximately **HKD 4.2 million** in the prior year, representing a **171.4%** decrease[92](index=92&type=chunk) [Use of Proceeds](index=20&type=section&id=Use%20of%20Proceeds) Of the **HKD 34.8 million** net proceeds from the January 2019 listing, **HKD 25.9 million** has been utilized as of December 31, 2020, with the remaining **HKD 8.9 million** for diesel tank trucks and IT system upgrades expected to be fully deployed by March 31, 2021 Use of Net Proceeds (As at December 31, 2020) | Purpose | Revised Allocation (million HKD) | Actual Use (million HKD) | Unutilized Amount (million HKD) | Expected Full Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Purchase of Diesel Tank Trucks | **15.0** | **11.1** | **3.9** | Before March 31, 2021 | | Manpower Expansion | **1.7** | **1.7** | **0** | N/A | | Upgrade of Information Technology System | **5.0** | **0** | **5.0** | Before March 31, 2021 | | Working Capital | **13.1** | **13.1** | **0** | N/A | | **Total** | **34.8** | **25.9** | **8.9** | | [Other Information](index=22&type=section&id=Other%20Information) This section provides details on directors' and shareholders' interests and the company's adherence to corporate governance principles [Interests of Directors and Shareholders](index=23&type=section&id=Interests%20of%20Directors%20and%20Shareholders) As of December 31, 2020, Chairman and Executive Director Mr. Lo Ming Yik held **62.78%** of the company's issued share capital through Fully Fort Group Limited, with no other directors or major shareholders having disclosable interests - Company Chairman Mr. Lo Ming Yik holds **62.78%** of the company's shares through his wholly-owned company, Fully Fort[116](index=116&type=chunk)[118](index=118&type=chunk) [Corporate Governance](index=26&type=section&id=Corporate%20Governance) The company complied with the GEM Listing Rules' Corporate Governance Code during the period, establishing audit, nomination, and remuneration committees with compliant compositions, and the audit committee reviewed the unaudited condensed consolidated financial statements - The company has established an Audit Committee, Nomination Committee, and Remuneration Committee, with compositions compliant with Listing Rules requirements[134](index=134&type=chunk)[141](index=141&type=chunk)[147](index=147&type=chunk) - The unaudited condensed consolidated financial statements for the quarter have been reviewed by the Audit Committee[135](index=135&type=chunk) - The company complied with the provisions of the Corporate Governance Code throughout the reporting period and maintained sufficient public float[154](index=154&type=chunk)[155](index=155&type=chunk)

Financial Performance - The Group recorded a revenue of approximately HK$125.5 million for the six months ended 30 September 2020, representing a decrease of approximately HK$78.5 million or 38.5% compared to HK$204.0 million for the same period in 2019[8]. - The Group recorded a loss attributable to the owners of the Company of approximately HK$1.2 million for the six months ended 30 September 2020, representing a decrease of approximately HK$5.6 million or 127.3% compared to a profit of approximately HK$4.4 million for the same period in 2019[8]. - For the six months ended September 30, 2020, the company reported a loss of HK$1,211,000, compared to a profit of HK$4,351,000 for the same period in 2019, indicating a significant decline in performance[13]. - The basic and diluted loss per share for the six months ended 30 September 2020 was HK$0.30, compared to earnings of HK$1.09 per share for the same period in 2019[11]. - The Group reported a loss attributable to equity shareholders of HK$1,211,000 for the six months ended September 30, 2020, compared to a profit of HK$4,351,000 for the same period in 2019, representing a significant decline[58]. - Gross profit decreased from approximately HK$9.4 million for the six months ended 30 September 2019 to approximately HK$2.1 million for the same period in 2020, representing a decline of approximately 77.7%[125]. - The Group's gross profit margin fell from 4.6% to 1.7% due to competitive pricing strategies in a challenging business environment[125]. Revenue and Sales - Revenue from diesel oil sales for the three months ended September 30, 2020, was HK$49,792,000, a decrease of 54.2% compared to HK$108,690,000 in the same period of 2019[34]. - Total revenue for the six months ended September 30, 2020, was HK$125,476,000, down 38.4% from HK$204,021,000 in the previous year[34]. - The sales quantity of diesel oil increased by approximately 7.7% from 45.7 million litres for the six months ended 30 September 2019 to 49.2 million litres for the six months ended 30 September 2020[107][110]. - The average selling price of diesel oil decreased by approximately 42.9% from HK$4.45 per litre for the six months ended 30 September 2019 to HK$2.54 per litre for the six months ended 30 September 2020[108][111]. - The Group's cost of sales was approximately HK$123.4 million for the six months ended 30 September 2020, representing a decrease of 36.6% from HK$194.6 million for the same period in 2019[114]. - The average unit purchase cost of diesel oil decreased by 41.8% from approximately HK$4.19 per litre for the six months ended 30 September 2019 to approximately HK$2.44 per litre for the six months ended 30 September 2020[115][118]. Expenses and Costs - The Group's gross profit margin decreased from approximately 4.6% for the six months ended 30 September 2019 to approximately 1.7% for the six months ended 30 September 2020[8]. - The Group's administrative expenses increased to HK$4.829 million for the six months ended 30 September 2020, compared to HK$4.644 million for the same period in 2019[11]. - The Group's finance costs increased to HK$101, up from HK$60 for the same period in 2019[11]. - The Group's administrative and other operating expenses increased by approximately HK$0.2 million or 4.3% from approximately HK$4.6 million for the six months ended 30 September 2019 to approximately HK$4.8 million for the six months ended 30 September 2020[122]. - Staff costs for the six months ended September 30, 2020, were HK$3,187,000, slightly down from HK$3,229,000 in the previous year[46]. Assets and Liabilities - As of 30 September 2020, the Group's total assets less current liabilities amounted to HK$61.847 million, a decrease from HK$63.694 million as of 31 March 2020[12]. - The Group's net current assets were HK$52.235 million as of 30 September 2020, compared to HK$54.316 million as of 31 March 2020[12]. - Trade receivables decreased to HK$52.743 million as of 30 September 2020 from HK$55.071 million as of 31 March 2020[12]. - The total cash and cash equivalents at the end of the reporting period decreased to HK$409,000 from HK$2,936,000 a year earlier, showing a decline in liquidity[15]. - The company incurred HK$1,877,000 in capital expenditures for property, plant, and equipment during the reporting period, down from HK$2,290,000 in the previous year[15]. - The accumulated profits as of September 30, 2020, stood at HK$57,450,000, a decrease from HK$61,313,000 as of September 30, 2019, indicating a reduction in retained earnings[13]. - The company’s total equity as of September 30, 2020, was HK$61,450,000, down from HK$65,313,000 a year earlier, indicating a decrease in shareholder value[13]. Dividends and Shareholder Information - The Board does not recommend the payment of any dividend for the six months ended 30 September 2020[8]. - The Group did not recommend the payment of any dividend for the six months ended September 30, 2020, consistent with the previous year[55]. - As of September 30, 2020, Mr. Law Ming Yik holds a 62.78% interest in the Company through Fully Fort Group Limited[180]. - Fully Fort Group Limited holds 251,110,000 shares, representing 62.78% of the Company's issued share capital[187]. - Fully Fort Group Limited is wholly owned by Mr. Law, indicating a concentrated ownership structure[189]. COVID-19 Impact and Response - The uncertainty surrounding the COVID-19 pandemic has made the Group's operating environment extremely challenging, prompting close monitoring of cash flow management[98]. - The Group will continue to adopt suitable precautionary measures to ensure the safety of all staff members and working partners amid the pandemic[99]. - The Group will continue to closely monitor the development of the COVID-19 pandemic and adjust its business plans accordingly to ensure smooth operations during this challenging period[102]. Compliance and Governance - The Company has established an Audit Committee comprising three independent non-executive Directors to comply with GEM Listing Rules[200]. - The Audit Committee was established to ensure compliance with corporate governance standards as set out in the GEM Listing Rules[200]. - Giraffe Capital Limited has been appointed as the compliance adviser, declaring its independence as per GEM Listing Rules[194]. - There are no competing interests reported by the Directors during the Reporting Period[193]. - The Group's remuneration policies are reviewed periodically and are maintained within market levels[166]. Capital Expenditures and Investments - The company has not reported any new product launches or significant market expansions during this period[17]. - The Group had capital commitments of HK$0.7 million for the acquisition of property, plant, and equipment as of 30 September 2020[129]. - The Group ordered two new diesel tank wagons in October 2019, which were delivered and available for use in April 2020[156]. - The Group has ordered one new diesel tank wagon in May 2020, expected to be delivered by March 2021[156]. - The Group plans to utilize approximately HK$5.0 million of the Net Proceeds for upgrading its information technology systems, with full utilization expected by March 31, 2021[169].

Financial Performance - The Group recorded a revenue of approximately HK$75.5 million for the three months ended 30 June 2020, representing a decrease of approximately HK$19.6 million or 20.6% compared to HK$95.1 million for the same period in 2019[8]. - The Group's gross profit margin decreased from approximately 5.4% for the three months ended 30 June 2019 to approximately 2.6% for the three months ended 30 June 2020[8]. - The Group recorded a profit and total comprehensive income of approximately HK$0.6 million for the three months ended 30 June 2020, a decrease of approximately HK$2.3 million compared to HK$2.9 million for the same period in 2019[8]. - Profit before taxation for the three months ended 30 June 2020 was approximately HK$0.641 million, down from HK$3.08 million for the same period in 2019[11]. - Earnings per share for the three months ended 30 June 2020 were HK$0.16, compared to HK$0.73 for the same period in 2019[11]. - The Group's net profit decreased by approximately HK$2.3 million, from approximately HK$2.9 million for the three months ended 30 June 2019 to approximately HK$0.6 million for the three months ended 30 June 2020, resulting in a net profit margin decline from 3.1% to 0.8%[90]. - The Group's income tax expenses decreased by approximately HK$151 thousand or 95.0%, from approximately HK$159 thousand for the three months ended 30 June 2019 to approximately HK$8 thousand for the three months ended 30 June 2020[79]. Revenue Breakdown - Revenue for the three months ended June 30, 2020, was HK$75,472,000, a decrease of 20.7% compared to HK$95,106,000 for the same period in 2019[30]. - Sales of diesel oil amounted to HK$75,303,000, down 20.8% from HK$94,878,000 in the previous year[30]. - Revenue from the sales of diesel oil accounted for approximately HK$75.3 million, representing approximately 99.8% of the Group's total revenue for the three months ended 30 June 2020[57]. - The sales quantity of diesel oil increased by approximately 45.2% from 21.0 million litres to 30.4 million litres for the same periods[62]. - The average selling price of diesel oil decreased by approximately 45.3% from HK$4.53 per litre to HK$2.48 per litre[63]. - The ancillary transportation service revenue increased to HK$75,000, up 114.3% from HK$35,000 in the previous year[30]. - Ancillary transportation service income was approximately HK$75 thousand for the three months ended 30 June 2020, compared to HK$35 thousand for the same period in 2019[58]. Cost and Expenses - The cost of sales for the three months ended 30 June 2020 was approximately HK$73.5 million, compared to HK$89.9 million for the same period in 2019[11]. - The group's cost of sales was approximately HK$73.5 million, representing a decrease of 18.3% from HK$90.0 million for the same period in 2019[65]. - The gross profit decreased by approximately HK$3.1 million or 60.8% to approximately HK$2.0 million, with a gross profit margin decline from 5.4% to 2.6%[74]. - Administrative expenses for the three months ended 30 June 2020 were approximately HK$1.981 million, a decrease from HK$2.307 million for the same period in 2019[11]. - Administrative and other operating expenses decreased by approximately HK$0.3 million or 13.0% to approximately HK$2.0 million for the three months ended June 30, 2020[75]. - The unit purchase cost of diesel oil decreased by 44.2% from approximately HK$4.23 per litre to approximately HK$2.36 per litre[66]. - Direct labour costs remained stable at approximately HK$0.6 million for both periods[72]. Corporate Governance and Compliance - The Group's financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and are unaudited for the period[20]. - The Group's accounting policies remain consistent with those adopted in the preparation of the annual financial statements for the year ended March 31, 2020[26]. - The adoption of new/revised HKFRSs has no material impact on the Group's results and financial position for the current or prior periods[27]. - The company has established an Audit Committee comprising three independent non-executive Directors, ensuring compliance with GEM Listing Rules[126]. - The unaudited Condensed Consolidated Financial Statements have been reviewed by the Audit Committee and deemed compliant with applicable accounting standards and GEM Listing Rules[127]. - The Nomination Committee has reviewed the structure, size, and composition of the Board, discussing matters regarding the retirement and re-election of Directors[134]. - The Remuneration Committee recommends Directors' remuneration based on market benchmarking and individual performance[137]. - The company confirms that all Directors complied with the required standard of dealings regarding securities transactions as of the report date[144]. - The company is committed to maintaining high corporate governance standards and has complied with the Corporate Governance Code since the Listing Date[145]. - The company has adopted a code of conduct for directors' securities transactions that meets or exceeds GEM Listing Rules standards[148]. - The company will continue to review and improve its corporate governance practices and standards[149]. Future Outlook and Strategy - The Group will reinforce cost control and continue to enhance service capabilities, expand network presence, and diversify its customer base in response to the challenging market outlook[55]. - The group will strengthen cost control and seek potential business developments to expand revenue sources and increase shareholder value[59]. - The management considers that there are no significant events subsequent to 30 June 2020 that would materially affect the financial performance and operation of the Group[81]. Shareholder Information - The Board does not recommend the payment of any dividend for the three months ended 30 June 2020[8]. - As of June 30, 2020, Mr. Law Ming Yik holds a long position of 251,110,000 shares, representing 62.78% of the company's issued share capital[109]. - Fully Fort Group Limited, wholly owned by Mr. Law, is the beneficial owner of 251,110,000 shares, also accounting for 62.78% of the company's issued share capital[114]. - There were no purchases, sales, or redemptions of the company's listed securities as of June 30, 2020[105]. - No options were granted, exercised, lapsed, or cancelled under the Share Option Scheme during the reporting period, and there were no outstanding share options as of June 30, 2020[118]. - The company has not been notified of any interests or short positions in shares that require disclosure under the relevant regulations as of June 30, 2020[116]. - The company has not disclosed any new products, technologies, market expansions, or acquisitions during the reporting period[119].

Sun Kong Holdings Limited 申港控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） Stock Code 股份代號: 8631 2019/2020 Annual Report 年報 CHARACTERISTICS OF GEM ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of i ...

Financial Performance - The Group recorded a revenue of approximately HK$299.4 million for the nine months ended 31 December 2019, representing a decrease of approximately HK$76.1 million or 20.3% compared to HK$375.5 million for the same period in 2018[8]. - The profit attributable to the owners of the Company was approximately HK$4.2 million for the nine months ended 31 December 2019, a decrease of approximately HK$2.6 million or 38.2% from HK$6.8 million for the same period in 2018[8]. - For the three months ended 31 December 2019, the Group's revenue was HK$95.4 million, down from HK$127.6 million for the same period in 2018, representing a decrease of approximately 25.3%[11]. - The total comprehensive income for the nine months ended 31 December 2019 was HK$4.2 million, down from HK$6.8 million for the same period in 2018[12]. - The Group's gross profit margin decreased from approximately 4.3% for the nine months ended 31 December 2018 to approximately 3.8% for the nine months ended 31 December 2019[8]. - The Group's gross profit decreased by approximately HK$5.1 million or 31.3%, from approximately HK$16.3 million for the nine months ended 31 December 2018, to approximately HK$11.2 million for the nine months ended 31 December 2019[95]. - The net profit margin for the nine months ended 31 December 2019 was 1.4%, compared to 1.8% for the same period in 2018[96]. Revenue Breakdown - Revenue from diesel oil sales for the three months ended December 31, 2019, was HK$93,157,000, a decrease from HK$127,423,000 in the same period of 2018[52]. - Total revenue for the nine months ended December 31, 2019, was HK$299,381,000, compared to HK$375,477,000 for the same period in 2018, indicating a decline[52]. - Revenue from diesel oil sales accounted for approximately HK$296.7 million, representing approximately 99.1% of the Group's total revenue for the nine months ended December 31, 2019[76]. - The sales quantity of diesel oil decreased by approximately 11.7% from 76.8 million litres to 67.8 million litres during the same period[80]. - The average selling price of diesel oil decreased by approximately 10.2% from HK$4.88 per litre to HK$4.38 per litre[81]. - The Group recognized sales of steam coal amounting to HK$2,033,000 for the nine months ended December 31, 2019, with no sales recorded in the previous year[52]. - Ancillary transportation service revenue for the nine months ended December 31, 2019, was HK$133,000, up from HK$34,000 in the same period of 2018[52]. Cost and Expenses - The Group's cost of sales was approximately HK$288.1 million, representing a decrease of 19.8% from HK$359.2 million for the nine months ended December 31, 2018[87]. - The largest component of the cost of sales was diesel oil cost, which amounted to approximately HK$281.8 million, representing approximately 97.8% of the cost of sales for the nine months ended December 31, 2019[88]. - The average unit purchase cost of diesel oil decreased by 10.0% from approximately HK$4.62 per litre to approximately HK$4.16 per litre[88]. - The Group's finance costs for the nine months ended 31 December 2019 totaled HK$92,000, a decrease from HK$174,000 in the same period of 2018[55]. - Total staff costs for the nine months ended December 31, 2019, amounted to approximately HK$4.8 million, an increase from approximately HK$4.1 million for the same period in 2018[108]. Corporate Governance - The Company has complied with the Corporate Governance Code since its Listing Date up to December 31, 2019, maintaining high corporate governance standards[160]. - The Company has established a Remuneration Committee on December 11, 2018, comprising two independent non-executive Directors and one executive Director, to review and approve remuneration proposals for all Directors and senior management[151]. - The Remuneration Committee determines Directors' remuneration based on market benchmarking and individual performance, ensuring no Director determines their own remuneration[153]. - The Company confirms that all Directors complied with the required standard of dealings regarding securities transactions as of the date of this report[159]. - The Company has appointed a compliance advisor, ensuring independence and compliance with GEM Listing Rules[144]. Future Outlook and Strategy - The Group will reinforce cost control and continue to enhance service capabilities, expand network presence, and diversify its customer base in response to market challenges[74]. - The demand for diesel oil in the construction sector is expected to remain stable due to ongoing construction works[73]. - The Group has purchased two new diesel tank wagons, which became available for use in October 2019, and has ordered two additional wagons expected to be delivered by March 2020[105]. - The actual use of net proceeds from the Share Offer amounted to approximately HK$11.5 million, with HK$23.3 million remaining unused as of December 31, 2019[104]. - The Group's planned use of net proceeds includes 43.1% for purchasing diesel tank wagons and 35.9% for expanding manpower[104]. Shareholder Information - As of December 31, 2019, Mr. Law holds a 75% interest in the company through Fully Fort Group Limited, which owns 300,000,000 shares[123]. - Fully Fort Group Limited is the beneficial owner of 300,000,000 shares, representing 75% of the company's issued share capital[131]. - The company has 40,000,000 shares available for issue under the share option scheme, which represents 10% of the existing issued share capital as of December 31, 2019[134]. - No share options were granted from the adoption date of the share option scheme until December 31, 2019, and there were no outstanding share options as of that date[134]. Audit and Compliance - The Group's financial statements for the three months and nine months ended December 31, 2019, are unaudited but reviewed by the Audit Committee[16]. - The Audit Committee reviewed the unaudited Condensed Consolidated Financial Statements for the six months ended September 30, 2019, confirming compliance with applicable accounting standards and GEM Listing Rules[142]. - There are no competing interests reported by the directors or controlling shareholders during the reporting period[135]. - The Company has not been notified of any interests or short positions in shares or debentures that require disclosure under the SFO as of December 31, 2019[133].

Financial Performance - The Group recorded a revenue of approximately HK$204.0 million for the six months ended 30 September 2019, representing a decrease of approximately HK$43.9 million or 17.7% compared to HK$247.9 million for the same period in 2018[9]. - The profit attributable to the owners of the Company was approximately HK$4.4 million for the six months ended 30 September 2019, a decrease of approximately HK$2.1 million or 32.3% from HK$6.5 million for the same period in 2018[9]. - For the six months ended September 30, 2019, the company reported a profit of HK$4,351,000, compared to HK$6,545,000 for the same period in 2018, representing a decrease of approximately 33%[15]. - The total comprehensive income for the period was HK$4,351,000, leading to a total equity of HK$65,313,000 as of September 30, 2019, up from HK$60,962,000 as of April 1, 2019[15]. - The basic and diluted earnings per share for the six months ended 30 September 2019 were HK$1.09, down from HK$2.18 for the same period in 2018[12]. - The Group's net profit decreased by approximately HK$2.1 million from approximately HK$6.5 million for the six months ended 30 September 2018 to approximately HK$4.4 million for the six months ended 30 September 2019, resulting in a net profit margin of 2.1% compared to 2.6% in the previous period[137][140]. Revenue Breakdown - Revenue from diesel oil sales for the six months ended 30 September 2019 was HK$203,568,000, a decrease of 17.8% compared to HK$247,606,000 in the same period of 2018[56]. - Revenue from diesel oil sales accounted for approximately HK$203.6 million, representing approximately 99.8% of the Group's total revenue for the six months ended 30 September 2019[115][119]. - Revenue from diesel exhaust fluid sales for the three months ended 30 September 2019 was HK$164,000, an increase of 28.1% compared to HK$128,000 in the same period of 2018[56]. - The sales quantity of diesel oil decreased by approximately 7.9% from 49.6 million litres to 45.7 million litres during the same period[121][125]. - The average selling price of diesel oil decreased by approximately 11.0% from HK$5.00 per litre to HK$4.45 per litre[122][126]. Cost and Expenses - The Group's cost of sales was approximately HK$194.6 million, representing a decrease of 17.9% from HK$237.0 million for the six months ended 30 September 2018[124][127]. - The gross profit decreased by approximately HK$1.5 million or approximately 13.8%, from approximately HK$10.9 million to approximately HK$9.4 million[136]. - The Group's gross profit margin increased from 4.4% to 4.6% for the six months ended 30 September 2019[136]. - The Group's administrative expenses increased to approximately HK$4.6 million for the six months ended 30 September 2019, compared to HK$3.1 million for the same period in 2018[12]. - Total staff costs for the six months ended September 30, 2019, were approximately HK$2.6 million, compared to HK$2.4 million for the same period in 2018[172]. Assets and Liabilities - As of 30 September 2019, the Group's non-current assets totaled approximately HK$10.4 million, an increase from HK$5.0 million as of 31 March 2019[13]. - Trade receivables increased to approximately HK$51.3 million as of 30 September 2019, compared to HK$37.6 million as of 31 March 2019[13]. - The Group's total assets less current liabilities amounted to approximately HK$66.6 million as of 30 September 2019, compared to HK$61.4 million as of 31 March 2019[13]. - The net assets of the Group were approximately HK$65.3 million as of 30 September 2019, an increase from HK$61.0 million as of 31 March 2019[13]. - The Group's total current assets amounted to approximately HK$64.7 million, while current liabilities were approximately HK$8.4 million as of 30 September 2019[138][141]. Cash Flow - Cash used in operating activities amounted to HK$17,035,000 for the six months ended September 30, 2019, compared to cash generated of HK$1,383,000 in the same period of 2018, indicating a significant decline[17]. - The net decrease in cash and cash equivalents was HK$22,623,000, resulting in a cash balance of HK$2,936,000 at the end of the reporting period[17]. - The company incurred net cash used in investing activities of HK$5,408,000, primarily due to the purchase of property, plant, and equipment[17]. Corporate Governance - The Board does not recommend the payment of any dividend for the six months ended 30 September 2019[9]. - The financial statements are unaudited but have been reviewed by the audit committee, ensuring some level of oversight[20]. - The Group's restructuring prior to the listing on GEM has established it as the holding company of its subsidiaries, maintaining control under the same individual[27]. - The Company has appointed Giraffe Capital Limited as its compliance adviser, which has declared its independence[199]. - The audit committee consists of three independent non-executive Directors, ensuring compliance with GEM Listing Rules[200]. Market Conditions - The ongoing trade war between China and the United States has negatively impacted diesel oil sales, contributing to the revenue decline[108]. - Global economic growth has slowed, with rising political and social turmoil in Hong Kong adding pressure to the economy, leading to concerns about a potential recession[109]. Future Plans - The Board plans to reinforce cost control and diversify the customer base to enhance shareholder value amid challenging market conditions[113][117]. - The Group is actively recruiting suitable candidates to expand manpower, with HK$0.7 million utilized for this purpose[167]. - The Group plans to continue applying the net proceeds in accordance with the proposed applications set out in the Prospectus[170].

Sun Kong Holdings Limited 申港控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） Stock Code 股份代號: 8631 2019/2020 First Quarterly Report 第一季度報告 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential ris ...

GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nat ...