Financial Performance - The Group recorded a revenue of approximately HK$56.3 million for the six months ended 30 September 2023, representing an increase of approximately HK$20.1 million or 55.5% compared to the revenue of approximately HK$36.2 million for the same period in 2022[8]. - The Group recorded a profit attributable to the owners of the Company of approximately HK$1.3 million for the six months ended 30 September 2023, an increase of approximately HK$4.2 million compared to a loss of approximately HK$2.9 million for the same period in 2022[8]. - The Group's profit before tax for the six months ended 30 September 2023 was approximately HK$1.3 million, compared to a loss of approximately HK$2.9 million for the same period in 2022[11]. - For the six months ended September 30, 2023, the company reported a profit of HK$1,305,000, compared to a loss of HK$2,941,000 for the same period in 2022, marking a significant turnaround[15]. - The Group's total comprehensive income for the period was HK$1,305,000, reflecting improved operational performance[15]. - The net profit for the six months ended 30 September 2023 was approximately HK$1.3 million, an increase of approximately HK$4.2 million from a net loss of approximately HK$2.9 million for the same period in 2022[108]. - The Group recorded a gross profit increase of approximately HK$3.7 million, or 308.3%, from approximately HK$1.2 million for the six months ended 30 September 2022 to approximately HK$4.9 million for the six months ended 30 September 2023, with a gross profit margin increase from 3.2% to 8.7%[128][132]. Revenue Sources - Diesel oil sales accounted for approximately HK$55.7 million, representing about 99.0% of the Group's total revenue for the six months ended 30 September 2023[113]. - Revenue from diesel oil sales for the three months ended September 30, 2023, was HK$24,136,000, representing a 44.0% increase from HK$16,760,000 in the same period of 2022[32]. - The sales quantity of diesel oil increased by approximately 130.2% from 4.3 million litres for the six months ended 30 September 2022 to 9.9 million litres for the same period in 2023[114]. - The Group's revenue from diesel exhaust fluid sales decreased slightly to HK$254,000 for the three months ended September 30, 2023, compared to HK$335,000 in 2022, a decline of 24.2%[32]. Expenses and Costs - The Group's administrative expenses decreased to approximately HK$3.3 million for the six months ended 30 September 2023, down from HK$4.4 million for the same period in 2022[11]. - Staff costs for the six months ended September 30, 2023, totaled HK$2,255,000, down 36.4% from HK$3,554,000 in the previous year[43]. - Direct labour costs amounted to approximately HK$0.4 million for the six months ended 30 September 2023, compared to HK$0.9 million for the same period in 2022[126]. - The Group's cost of sales was approximately HK$51.4 million for the six months ended 30 September 2023, an increase of 46.4% from HK$35.1 million for the same period in 2022[121]. - The largest component of the cost of sales was diesel oil cost, which amounted to approximately HK$48.9 million, representing about 95.1% of the cost of sales for the six months ended 30 September 2023[122]. Assets and Liabilities - As of 30 September 2023, the Group's net assets amounted to approximately HK$41.3 million, an increase from HK$39.96 million as of 31 March 2023[12]. - The Group's total equity as of 30 September 2023 was approximately HK$41.3 million, up from HK$39.96 million as of 31 March 2023[13]. - The total trade receivables as of 30 September 2023 amounted to HK$51,933,000, an increase from HK$45,901,000 as of 31 March 2023[65]. - The Group's gearing ratio was approximately 30.3% as of 30 September 2023, calculated based on total borrowing divided by total equity[139][142]. - The Group had approximately HK$1.6 million of capital commitments for the acquisition of property and equipment as of 30 September 2023[148][153]. Cash Flow and Financing - Cash used in operating activities for the six months ended September 30, 2023, was HK$485,000, an increase from HK$358,000 in the previous year[17]. - The company reported a net cash decrease of HK$1,040,000 in cash and cash equivalents for the six months ended September 30, 2023, compared to a decrease of HK$807,000 in the same period of 2022[17]. - The company incurred interest payments of HK$322,000 during the six months ended September 30, 2023, compared to HK$111,000 in the same period of 2022[17]. - Bank balances and cash decreased from HK$376,000 as of March 31, 2023, to HK$40,000 as of September 30, 2023, while bank overdrafts increased from HK$4,255,000 to HK$4,959,000[87]. - The Group had a banking facility of HK$14,000,000 as of September 30, 2023, up from HK$11,000,000 in 2022[95]. Dividends and Shareholder Information - The Board does not recommend the payment of any dividend for the six months ended 30 September 2023[8]. - The company did not recommend any dividend payment for the six months ended 30 September 2023, consistent with the previous year[50]. - As of September 30, 2023, Mr. Law Ming Yik holds 251,110,000 shares, representing 62.78% of the issued share capital of the Company[181]. - The Company is owned 62.78% by Fully Fort Group Limited, which is wholly owned by Mr. Law, the chairman of the Board[184]. Compliance and Governance - The Audit Committee reviewed the unaudited Condensed Consolidated Financial Statements and confirmed compliance with applicable accounting standards and GEM Listing Rules[199]. - The Company has established the Audit Committee in compliance with GEM Listing Rules, comprising three independent non-executive Directors[198]. - There are no competing interests reported among the controlling shareholders or Directors during the Reporting Period[197]. - The Group continues to monitor its business operations to ensure compliance with environmental laws and regulations in Hong Kong[173]. Operational Focus and Future Plans - The Group continues to focus on investment holding and sales of diesel oil and related products in Hong Kong, with no new product launches or market expansions reported in this period[19]. - The Group will continue to monitor diesel market demand and adjust business plans to ensure operational stability amid challenges such as slow recovery from COVID-19 and geopolitical tensions[111]. - The Group plans to utilize approximately HK$5.0 million of the Net Proceeds for upgrading its information technology systems, with completion expected by March 31, 2024[170].

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佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公佈全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 SUN KONG HOLDINGS LIMITED 申港控股有限公司 （於開曼群島註冊成立之有限公司） 8631 （股份代號： ） 2023 9 30 截至 年 月 日止六個月之 中期業績公佈 GEM 香港聯合交易所有限公司（「聯交所」） 之特色 GEM 的定位乃為較其他於聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市 的市場。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投 資決定。 GEM GEM 鑒於 上市的公司一般為中小型公司，於 買賣的證券可能會較於主板買賣的證券承 GEM 受較大的市場波動風險，同時無法保證於 買賣的證券會有高流通量的市場。 GEM GEM 本公佈乃根據聯交所 證券上市規則（「 上市規則」）提供有關申港控股有限公司（「本 公司」）及其附屬公司（統稱「本集團」）的資料。本公司董事（「董事」）願就本公佈共同及個別承 擔全部責任並在作出一切合理查詢後 ...

Financial Performance - The Group recorded a revenue of approximately HK$31.9 million for the three months ended 30 June 2023, representing an increase of approximately HK$12.8 million or 67.0% compared to the revenue of approximately HK$19.1 million for the same period in 2022[8]. - The Group recorded a profit and total comprehensive income of approximately HK$0.6 million for the three months ended 30 June 2023, an increase of approximately HK$1.3 million compared to a loss of approximately HK$0.7 million for the same period in 2022[8]. - The profit before taxation for the three months ended 30 June 2023 was approximately HK$0.605 million, compared to a loss of approximately HK$0.731 million for the same period in 2022[11]. - The basic and diluted earnings per share for the three months ended 30 June 2023 was HK$0.15, compared to a loss of HK$0.18 per share for the same period in 2022[11]. - The total comprehensive income for the period increased to HK$0.605 million as of 30 June 2023, compared to a total comprehensive loss of HK$0.731 million for the same period in 2022[11]. - The Group's accumulated losses as of 30 June 2023 were approximately HK$8.257 million, reflecting the financial performance over the reporting period[12]. Revenue and Sales - Revenue for the three months ended June 30, 2023, was HK$31,871,000, representing an increase of 66.5% compared to HK$19,129,000 for the same period in 2022[29]. - Sales of diesel oil amounted to HK$31,583,000, up from HK$18,930,000, reflecting a growth of 66.8% year-over-year[29]. - The sales quantity of diesel oil increased by approximately 168.2% from 2.2 million litres for the three months ended 30 June 2022 to 5.9 million litres for the three months ended 30 June 2023[56][59]. - Revenue from the sales of diesel oil accounted for approximately HK$31.6 million, representing approximately 99.1% of the Group's total revenue for the three months ended 30 June 2023[55]. Cost and Expenses - The Group's cost of sales for the three months ended 30 June 2023 was approximately HK$29.34 million, compared to HK$18.05 million for the same period in 2022[11]. - The largest component of the cost of sales was diesel oil cost, which amounted to approximately HK$28.1 million for the three months ended 30 June 2023, representing approximately 95.9% of the cost of sales[64]. - The Group's cost of sales increased by approximately HK$11.2 million or 61.9%, from HK$18.1 million for the three months ended June 30, 2022, to HK$29.3 million for the three months ended June 30, 2023[67]. - The average selling price of diesel oil decreased by approximately 37.0% from HK$8.56 per litre for the three months ended June 30, 2022 to HK$5.39 per litre for the three months ended June 30, 2023[61][66]. - The administrative expenses for the three months ended 30 June 2023 were approximately HK$1.773 million, a decrease from HK$2.061 million for the same period in 2022[11]. - Direct labour costs decreased from approximately HK$0.6 million to HK$0.2 million, reflecting a reduction in logistics support expenses[68]. - Administrative and other operating expenses decreased by approximately HK$0.3 million or 14.3%, from HK$2.1 million to HK$1.8 million[71]. Dividends and Shareholder Information - The Board does not recommend the payment of any dividend for the three months ended 30 June 2023[8]. - No dividends were recommended for the three months ended June 30, 2023, consistent with the previous year[82]. - Mr. Law Ming Yik holds a 62.78% interest in the Company through Fully Fort Group Limited[110]. - As of June 30, 2023, Mr. Law Ming Yik holds 251,110,000 shares, representing a 62.78% shareholding in the company[117]. - Fully Fort Group Limited, owned 100% by Mr. Law Ming Yik, is the beneficial owner of the same 251,110,000 shares, also reflecting a 62.78% shareholding[117]. Corporate Governance - The Company has established an Audit Committee and a Nomination Committee to ensure compliance with governance standards[123]. - The Nomination Committee consists of two independent non-executive Directors and one executive Director, with Mr. Law Ming Yik serving as the chairman[131]. - The Remuneration Committee consists of two independent non-executive Directors and one executive Director, ensuring no Director determines their own remuneration[138]. - The Company is committed to high corporate governance standards and has complied with the Corporate Governance Code throughout the reporting period[145]. - The Company will continuously review and improve its corporate governance practices and standards[145]. Capital Expenditure and Commitments - Capital expenditure during the reporting period was approximately HK$3.6 million, related to upgrading information technology systems[80]. - As of June 30, 2023, the Group had capital commitments of approximately HK$1.7 million for the acquisition of property and equipment[78]. - The Group plans to utilize approximately HK$5.0 million for upgrading its information technology systems, with completion expected by 31 March 2024[100]. - The Group has allocated HK$15.0 million for the purchase of diesel tank wagons, with HK$12.4 million remaining unutilized[100]. - An allocation of HK$12.5 million was made for expanding manpower, with HK$1.7 million remaining unutilized[100]. - The Group's working capital allocation is HK$2.3 million, with HK$13.1 million utilized to date[100]. Environmental Compliance - No significant adverse effects on the environment have been reported, and the Group complies with all applicable environmental laws[101]. - The Group has not faced any prosecution or penalties for environmental law violations as of the report date[105]. Taxation - The Group did not provide for Hong Kong profits tax for the three months ended June 30, 2023, as there were no assessable profits during the period[38]. - The Group's income tax expenses were nil for both the three months ended June 30, 2022, and June 30, 2023[72]. - The Group's entities established in the Cayman Islands and the British Virgin Islands are exempt from income tax, impacting overall tax expenses[38].

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佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公佈全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 SUN KONG HOLDINGS LIMITED 申港控股有限公司 （於開曼群島註冊成立之有限公司） 8631 （股份代號： ） 2023 6 30 截至 年 月 日止三個月之 第一季度業績公佈 GEM 香港聯合交易所有限公司（「聯交所」） �特色 GEM 的定位乃為較其他於聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市 的市場。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投 資決定。 GEM GEM 鑒� 上市的公司一般為中小型公司，� 買賣的證券可能會較於聯交所主板買賣的 GEM 證券承受較大的市場波動風險，同時無法保證� 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公佈的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不對因本公佈全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 ...

Financial Performance - The Group recorded a revenue of approximately HK$67.7 million for the year ended March 31, 2023, representing a decrease of approximately HK$163.2 million or 70.7% compared to HK$230.9 million for the year ended March 31, 2022[18]. - The total comprehensive loss for the year ended March 31, 2023, was approximately HK$12.1 million, an increase of approximately HK$9.0 million from a loss of approximately HK$3.1 million for the year ended March 31, 2022[18]. - The Group recorded a loss attributable to the owners of the Company of approximately HK$12.1 million for the year ended March 31, 2023, an increase of approximately HK$9.0 million from a loss of approximately HK$3.1 million for the year ended March 31, 2022[32]. - The Group's revenue decline reflects broader market conditions and operational challenges faced during the year[18]. - Gross profit decreased by approximately HK$3.6 million or 52.2% from approximately HK$6.9 million for the year ended March 31, 2022, to approximately HK$3.3 million for the year ended March 31, 2023[56]. - The Group's net loss increased by approximately HK$9.0 million from a loss of approximately HK$3.1 million for the year ended March 31, 2022, to a loss of approximately HK$12.1 million for the year ended March 31, 2023[59]. Sales and Market Conditions - The sales quantity of diesel oil decreased by approximately 82.0% from 50.0 million litres for the year ended March 31, 2022 to 9.0 million litres for the year ended March 31, 2023[41]. - Revenue from the sale of diesel oil accounted for approximately HK$66.0 million, representing approximately 97.5% of the Group's total revenue for the year ended March 31, 2023[35]. - The demand for diesel oil from the cross-boundary transportation sector began to recover in November 2022, but remains below pre-COVID-19 crisis levels[16]. - The average selling price of diesel oil increased by approximately 59.0% from HK$4.61 per litre for the year ended March 31, 2022 to HK$7.33 per litre for the year ended March 31, 2023[42]. - The sales quantity of diesel exhaust fluid increased by approximately 317.7% from 120.2 thousand litres for the year ended March 31, 2022 to 502.1 thousand litres for the year ended March 31, 2023[41]. Cost and Expenses - The Group's cost of sales was approximately HK$64.4 million for the year ended March 31, 2023, representing a decrease of 71.3% from HK$224.0 million for the year ended March 31, 2022[44]. - Diesel oil cost was the largest component of the cost of sales, amounting to approximately HK$58.3 million for the year ended March 31, 2023, representing 90.5% of the cost of sales[49]. - The average unit purchase cost of diesel oil increased by 49.1% from approximately HK$4.34 per litre for the year ended March 31, 2022, to approximately HK$6.47 per litre for the year ended March 31, 2023[49]. - The Group's administrative and other operating expenses were approximately HK$9.0 million for both the years ended March 31, 2022, and March 31, 2023[57]. Economic Environment - The Group's performance was affected by unprecedented economic challenges, including the Russian-Ukrainian War and COVID-19 control measures[16]. - The economic recovery in Hong Kong and Mainland China started after the cancellation of precautionary and quarantine control measures in November 2022[16]. - Crude oil prices increased significantly during the period, with Brent crude oil maintaining a high level throughout 2022, impacting the Group's operating cash flow due to high diesel procurement costs[17]. - The Group's operating cash flow was pressured by high diesel oil purchase costs, which remained elevated due to external economic factors[17]. Corporate Governance - The Group's financial statements for the year ended March 31, 2023, were audited and presented in compliance with the GEM Listing Rules[4]. - The Board comprises five Directors, including two executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[131]. - The Group has complied with all applicable code provisions set out in the Corporate Governance Code throughout the year ended March 31, 2023[125]. - The Board is responsible for the overall direction and supervision of the Group's business and affairs, with management delegated authority for day-to-day operations[127]. - The Company conducts at least four regular Board meetings annually, with Directors able to attend in person or via electronic means[142]. Future Plans and Investments - The Group will continue to monitor diesel market demand and adjust business plans to ensure operational stability amid challenges[33]. - The Group plans to use working capital to fund its expanding business and enhance operating liquidity[109]. - The Group aims to complete the upgrade of information technology systems by 31 March 2024, with HK$3.5 million already utilized[112]. - The expected timeline for utilizing the unutilized Net Proceeds may change based on future market conditions[118]. Staff and Workforce - As of 31 March 2023, the Group employed 18 staff, a decrease from 23 employees as of 31 March 2022, with total staff costs amounting to approximately HK$6.8 million, down from HK$7.6 million in the previous year[119]. - Four drivers and two logistics assistants were hired to strengthen the Group's workforce as of 31 March 2020[108]. Environmental and Social Responsibility - The Group recognizes the importance of environmental protection and has implemented various measures to minimize operational impact on the environment[120]. - The Group's environmental policies and performance details are outlined in the "Environment, Social and Governance Report" section of the annual report[120].

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佈的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公佈全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 SUN KONG HOLDINGS LIMITED 申港控股有限公司 （於開曼群島註冊成立之有限公司） 8631 （股份代號： ） 2023 3 31 截至 年 月 日止年度之 年度業績公佈 GEM 香港聯合交易所有限公司（「聯交所」） 之特色 GEM 的定位乃為較其他於聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市 的市場。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投 資決定。 GEM GEM 鑒於 上市的公司一般為中小型公司，於 買賣的證券可能會較於主板買賣的證券承 GEM 受較大的市場波動風險，同時無法保證於 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公佈的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不對因本公佈全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 ...

Financial Performance - The Group recorded a revenue of approximately HK$46.1 million for the nine months ended 31 December 2022, representing a decrease of approximately HK$144.9 million or 75.9% compared to HK$191.0 million for the same period in 2021[8]. - The Group's gross profit margin increased from approximately 2.8% for the nine months ended 31 December 2021 to approximately 3.1% for the nine months ended 31 December 2022[8]. - The Group recorded a loss attributable to the owners of the Company of approximately HK$4.7 million for the nine months ended 31 December 2022, representing an increase of approximately HK$3.9 million or 487.5% compared to a loss of approximately HK$0.8 million for the same period in 2021[8]. - For the three months ended 31 December 2022, the Group's revenue was HK$9.8 million, a decrease from HK$57.8 million in the same period of 2021[11]. - The loss before tax for the nine months ended 31 December 2022 was approximately HK$4.7 million, compared to a loss of HK$0.8 million for the same period in 2021[11]. - The total comprehensive loss for the period was approximately HK$4.7 million for the nine months ended 31 December 2022[11]. - The basic and diluted loss per share for the nine months ended 31 December 2022 was HK$1.18, compared to HK$0.21 for the same period in 2021[11]. - The Group's total equity as of 31 December 2022 was approximately HK$47.3 million, down from HK$54.3 million as of 31 December 2021[12]. - Total revenue for the nine months ended December 31, 2022, was HK$46,085,000, down 76% from HK$190,952,000 in the previous year[31]. - The net loss for the nine months ended 31 December 2022 was approximately HK$4.7 million, an increase of approximately HK$3.9 million or 487.5% from a net loss of approximately HK$0.8 million for the nine months ended 31 December 2021[49]. Revenue Breakdown - Revenue from diesel sales for the three months ended December 31, 2022, was HK$9,226,000, a decrease of 84% compared to HK$57,644,000 in the same period of 2021[31]. - Revenue from the sales of diesel oil accounted for approximately HK$44.9 million, representing approximately 97.5% of the Group's total revenue for the nine months ended 31 December 2022[55]. - Diesel sales revenue accounted for approximately HK$44.9 million, representing about 97.5% of total revenue for the nine months ended 31 December 2022[57]. - The sales quantity of diesel oil decreased by approximately 87.0% from 43.2 million litres to 5.6 million litres for the same period[59]. - The average selling price of diesel oil increased by approximately 81.4% from HK$4.42 per litre to HK$8.02 per litre[60]. - The Group's cost of sales was approximately HK$44.7 million, a decrease of 75.9% from HK$185.5 million for the nine months ended 31 December 2021[62]. - Gross profit decreased by approximately HK$4.0 million or 74.1% from approximately HK$5.4 million to approximately HK$1.4 million for the nine months ended 31 December 2022[74]. Dividends - The Board does not recommend the payment of any dividend for the nine months ended 31 December 2022[8]. - No dividends were recommended for the nine months ended 31 December 2022, consistent with the previous year[41]. - The Group did not recommend the payment of any dividend for the nine months ended December 31, 2022[85]. Operational Challenges - The Group's financial performance reflects significant challenges in the diesel market, necessitating strategic reassessment moving forward[31]. - The purchase cost of diesel oil remained high due to crude oil prices driven by stagflation expectations and economic contraction caused by the COVID-19 pandemic and the Russian-Ukrainian War[46]. - The market demand for diesel oil from the cross-boundary transportation sector has not recovered to normal levels yet, significantly impacting the logistics sector[47]. - The Group will continue to monitor the development of the COVID-19 pandemic and adjust business plans to ensure operational stability[52]. Corporate Governance - The Company is committed to high corporate governance standards and has complied with the Corporate Governance Code throughout the reporting period[146]. - The Audit Committee, established on December 11, 2018, reviewed the unaudited Condensed Consolidated Financial Statements and confirmed compliance with applicable accounting standards and GEM Listing Rules[130]. - The Company has maintained a sufficient public float as required under the GEM Listing Rules as of the report date[151]. - The Company has a written terms of reference for both the Nomination and Remuneration Committees available on the GEM and Company websites[132][139]. - The Company will continuously review and improve its corporate governance practices and standards[149]. Shareholder Information - As of December 31, 2022, 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[118]. - As of December 31, 2022, no other Directors or chief executives had interests or short positions in the Shares or debentures of the Company that required disclosure[111]. - The Company has not been notified of any interests or short positions in the Shares by any person as recorded in the register required under Section 336 of the SFO[119]. Environmental Compliance - The Group has implemented various environmental protection measures to minimize operational impact on the environment and ensure compliance with applicable laws and regulations in Hong Kong[100]. - As of the report date, no prosecution, penalty, or punishment has been imposed on the Group for violations of any applicable environmental laws and regulations[102].

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 risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GEM are generally small ...

[GEM Characteristics and Report Statement](index=2&type=section&id=GEM%20Characteristics%20and%20Report%20Statement) [GEM Market Risk Disclosure](index=2&type=section&id=GEM%20Market%20Risk%20Disclosure) The GEM market is designed for small and medium-sized companies, carrying higher investment risks, and securities may face high market volatility and low liquidity risks - GEM market positioning: provides a listing platform for small and medium-sized companies, with higher investment risks[1](index=1&type=chunk)[5](index=5&type=chunk) - Potential risks: securities may experience significant market volatility, and high liquidity is not guaranteed[2](index=2&type=chunk)[5](index=5&type=chunk) [Directors' Responsibility Statement](index=2&type=section&id=Directors'%20Responsibility%20Statement) The Board confirms that this report's content is accurate, complete, and not misleading, assuming full responsibility; the Stock Exchange is not responsible for the report's content - The Board confirms that the information in this report is accurate, complete, and not misleading, and assumes full responsibility[4](index=4&type=chunk)[5](index=5&type=chunk) - The Stock Exchange takes no responsibility for the content of this report and does not guarantee its accuracy or completeness[3](index=3&type=chunk)[5](index=5&type=chunk) [HIGHLIGHTS](index=3&type=section&id=HIGHLIGHTS) For the three months ended June 30, 2022, the Group's revenue significantly decreased by 70.2% to HK$19.1 million, turning from profit to a loss of HK$0.7 million, while gross profit margin improved; the Board does not recommend a dividend 2022 Q1 Key Financial Indicators Comparison | Indicator | 2022 Q1 (HK$ million) | 2021 Q1 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 19.1 | 64.0 | -70.2% | | Gross profit margin | 5.6% | 3.3% | +2.3pp | | (Loss)/Profit for the period | (0.7) | 0.1 | -800% (from profit to loss) | - The Board does not recommend the payment of any dividend for the three months ended June 30, 2022[7](index=7&type=chunk) [UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=4&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the Group's unaudited condensed consolidated financial statements for the three months ended June 30, 2022, including the statement of profit or loss and other comprehensive income and statement of changes in equity, with comparative data for the same period in 2021 [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) For the three months ended June 30, 2022, the Group's revenue significantly decreased, leading to a loss from a profit in the prior year, with a loss per share of HK$0.18 cents Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the three months ended June 30) | Indicator | 2022 (HK$ thousand) | 2021 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 19,129 | 63,966 | | Cost of sales | (18,051) | (61,874) | | Gross profit | 1,078 | 2,092 | | Other income | 344 | – | | Administrative and other operating expenses | (2,061) | (1,962) | | Finance costs | (92) | (56) | | (Loss)/Profit before taxation | (731) | 74 | | Income tax expense | – | – | | (Loss)/Profit and total comprehensive (loss)/income for the period | (731) | 74 | | (Loss)/Earnings per share (HK cents) Basic and diluted | (0.18) | 0.02 | [UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) As of June 30, 2022, the Group's total equity decreased to HK$51,293 thousand due to the loss for the period, compared to HK$55,232 thousand in the prior year Unaudited Condensed Consolidated Statement of Changes in Equity (For the three months ended June 30) | Indicator | 2022 (HK$ thousand) | 2021 (HK$ thousand) | | :--- | :--- | :--- | | April 1 (audited) | 52,024 | 55,158 | | (Loss)/Profit and total comprehensive (loss)/income for the period | (731) | 74 | | June 30 (unaudited) | 51,293 | 55,232 | [NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=6&type=section&id=NOTES%20TO%20THE%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering general information, accounting policies, revenue and expense breakdowns, earnings per share calculation, and dividend policy [1. GENERAL INFORMATION](index=6&type=section&id=1.%20GENERAL%20INFORMATION) Sun Kong Holdings Limited was incorporated in the Cayman Islands, primarily engaged in the sale of diesel and related products in Hong Kong, and listed on GEM of the Stock Exchange on January 8, 2019 - Company registration: Cayman Islands, registered on October 31, 2017[13](index=13&type=chunk)[17](index=17&type=chunk) - Principal business: sale of diesel and related products in Hong Kong[14](index=14&type=chunk)[18](index=18&type=chunk) - Listing information: listed on GEM of the Stock Exchange on January 8, 2019[14](index=14&type=chunk)[18](index=18&type=chunk) [2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES](index=7&type=section&id=2.%20BASIS%20OF%20PREPARATION%20AND%20PRINCIPAL%20ACCOUNTING%20POLICIES) The condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, using the historical cost basis, consistent with the accounting policies adopted for the annual financial statements for the year ended March 31, 2022, except for the adoption of certain new and revised standards [2. (a) Basis of preparation](index=7&type=section&id=2.%20(a)%20Basis%20of%20preparation) The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs), using the historical cost basis, and involve management judgments, estimates, and assumptions - Preparation basis: Hong Kong Financial Reporting Standards (HKFRSs) and GEM Listing Rules[20](index=20&type=chunk)[22](index=22&type=chunk) - Measurement basis: historical cost basis[24](index=24&type=chunk)[26](index=26&type=chunk) - Important note: should be read in conjunction with the audited annual financial information for the year ended March 31, 2022[21](index=21&type=chunk)[22](index=22&type=chunk) [2. (b) Adoption of new/revised HKFRSs](index=9&type=section&id=2.%20(b)%20Adoption%20of%20new/revised%20HKFRSs) The Group adopted new and revised Hong Kong Financial Reporting Standards, but these adoptions had no material impact on the results and financial position for the current or prior periods, nor did they lead to significant changes in accounting policies - Standards adopted: Amendments to HKAS 39, HKFRS 4, HKFRS 7, HKFRS 9 and HKFRS 16 (Interest Rate Benchmark Reform – Phase 2), and Amendment to HKFRS 16 (Covid-19-Related Rent Concessions)[28](index=28&type=chunk)[31](index=31&type=chunk) - Impact: no material impact on the results and financial position for the current or prior periods, and no significant changes in accounting policies[28](index=28&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [3. REVENUE](index=9&type=section&id=3.%20REVENUE) For the three months ended June 30, 2022, the Group's revenue primarily derived from diesel sales, totaling HK$19,129 thousand, a significant decrease from the prior year Revenue Composition (For the three months ended June 30) | Revenue Source | 2022 (HK$ thousand) | 2021 (HK$ thousand) | | :--- | :--- | :--- | | Diesel sales | 18,930 | 63,845 | | AdBlue sales | 199 | 121 | | **Total Revenue** | **19,129** | **63,966** | [4. (LOSS)/PROFIT BEFORE TAXATION](index=10&type=section&id=4.%20(LOSS)/PROFIT%20BEFORE%20TAXATION) For the three months ended June 30, 2022, the Group recorded a loss before taxation of HK$731 thousand, primarily influenced by staff costs, administrative expenses, and depreciation (Loss)/Profit Before Taxation Composition (For the three months ended June 30) | Item | 2022 (HK$ thousand) | 2021 (HK$ thousand) | | :--- | :--- | :--- | | Directors' emoluments | 582 | 372 | | Salaries and other benefits | 1,070 | 1,329 | | Contributions to retirement benefit schemes | 61 | 73 | | **Total staff costs** | **1,713** | **1,774** | | Auditor's remuneration | 120 | 120 | | Depreciation of property, plant and equipment | 754 | 710 | [5. FINANCE COSTS](index=11&type=section&id=5.%20FINANCE%20COSTS) For the three months ended June 30, 2022, the Group's finance costs increased to HK$92 thousand, mainly comprising interest on bank overdrafts and new bank loans Finance Costs (For the three months ended June 30) | Item | 2022 (HK$ thousand) | 2021 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank overdrafts | 50 | 49 | | Imputed interest on lease liabilities | 3 | 7 | | Interest on bank loans | 39 | – | | **Total** | **92** | **56** | [6. INCOME TAX EXPENSES](index=11&type=section&id=6.%20INCOME%20TAX%20EXPENSES) For the three months ended June 30, 2022, the Group incurred no income tax expense in Hong Kong due to the absence of assessable profit, while entities in the Cayman Islands and BVI are exempt from income tax - Hong Kong profits tax: zero for both 2022 and 2021 due to no assessable profit[39](index=39&type=chunk)[40](index=40&type=chunk) - Tax exemption: entities in the Cayman Islands and British Virgin Islands are exempt from income tax[39](index=39&type=chunk)[40](index=40&type=chunk) [7. (LOSS)/EARNINGS PER SHARE](index=12&type=section&id=7.%20(LOSS)/EARNINGS%20PER%20SHARE) For the three months ended June 30, 2022, the Group's basic and diluted loss per share was HK$0.18 cents, compared to earnings per share of HK$0.02 cents in the prior year (Loss)/Earnings Per Share (For the three months ended June 30) | Indicator | 2022 (HK$ thousand) | 2021 (HK$ thousand) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the Company | (731) | 74 | | Weighted average number of ordinary shares | 400,000,000 | 400,000,000 | | (Loss)/Earnings per share (HK cents) | (0.18) | 0.02 | - No diluted (loss)/earnings per share: no potential ordinary shares were issued in either period[43](index=43&type=chunk)[45](index=45&type=chunk) [8. DIVIDEND](index=12&type=section&id=8.%20DIVIDEND) The Board does not recommend the payment of any dividend for the three months ended June 30, 2022, consistent with the prior year - Dividend policy: the Board does not recommend the payment of any dividend for the three months ended June 30, 2022[44](index=44&type=chunk)[46](index=46&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=13&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section reviews the Group's business performance during the reporting period, noting that rising crude oil prices and declining market demand due to the pandemic and the Russia-Ukraine war led to a significant drop in revenue and profit; the Group plans to monitor the pandemic and adjust business plans for recovery [BUSINESS REVIEW](index=13&type=section&id=BUSINESS%20REVIEW) The Group primarily sells diesel and related products in Hong Kong to logistics and construction companies; during the reporting period, COVID-19 and the Russia-Ukraine war caused crude oil prices to surge, the Hong Kong economy to worsen, and cross-border transport demand to fall, leading to a significant decline in the Group's revenue and profit - Principal business: sale of diesel and related products in Hong Kong, with customers mainly logistics and construction companies[48](index=48&type=chunk)[51](index=51&type=chunk) - Market environment: crude oil prices surged (Brent crude reached **US$125/barrel**), Hong Kong's economy contracted by **4.0%**, and cross-border transport demand significantly decreased[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Financial performance: revenue decreased by **70.2%** year-on-year to **HK$19.1 million**, turning from a profit of HK$0.1 million in the prior year to a loss of **HK$0.7 million**[53](index=53&type=chunk)[54](index=54&type=chunk)[57](index=57&type=chunk) [FUTURE PROSPECTS](index=14&type=section&id=FUTURE%20PROSPECTS) Facing uncertainties and challenges from the COVID-19 pandemic, the Group will continuously monitor pandemic developments, strengthen cash flow management, integrate resources, and actively adjust business plans to ensure operational stability and prepare for business recovery once the pandemic is controlled - Challenges: COVID-19 pandemic creates an extremely challenging operating environment[55](index=55&type=chunk)[58](index=58&type=chunk) - Response strategies: closely monitor pandemic developments, strengthen cash flow management, integrate existing resources, and actively adjust business plans[55](index=55&type=chunk)[58](index=58&type=chunk) - Goal: ensure operational stability and be fully prepared for business recovery once the pandemic is controlled[55](index=55&type=chunk)[58](index=58&type=chunk) - Risk management: continuously review the pandemic situation prudently, reduce business operating risks, and take preventive measures to ensure the safety of employees and partners[56](index=56&type=chunk)[58](index=58&type=chunk) [FINANCIAL REVIEW](index=15&type=section&id=FINANCIAL%20REVIEW) This section analyzes the Group's financial performance during the reporting period, including changes and key reasons for revenue, sales volume, selling price, cost of sales, gross profit, administrative expenses, income tax, capital commitments, post-reporting events, capital expenditure, other income, and loss for the period [Revenue](index=15&type=section&id=Revenue) Group revenue significantly decreased by **70.2%** year-on-year to **HK$19.1 million**, primarily from diesel sales (accounting for **99.0%**) and AdBlue sales (accounting for **1.0%**) Revenue Composition and Change (For the three months ended June 30) | Revenue Source | 2022 (HK$ million) | 2021 (HK$ million) | Change (HK$ million) | Change (%) | Share (2022) | Share (2021) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Diesel sales | 18.9 | 63.9 | -45.0 | -70.4% | 99.0% | 99.8% | | AdBlue sales | 0.2 | 0.1 | +0.1 | +100.0% | 1.0% | 0.2% | | **Total Revenue** | **19.1** | **64.0** | **-44.9** | **-70.2%** | **100.0%** | **100.0%** | [Sales quantity](index=15&type=section&id=Sales%20quantity) Diesel sales volume significantly decreased by **86.3%** year-on-year to **2.2 million liters**, while AdBlue sales volume increased by **60.6%** to **53 thousand liters** Sales Quantity Change (For the three months ended June 30) | Product | 2022 (Unit) | 2021 (Unit) | Change (%) | | :--- | :--- | :--- | :--- | | Diesel | 2.2 million liters | 16.0 million liters | -86.3% | | AdBlue | 53 thousand liters | 33 thousand liters | +60.6% | [Selling price](index=16&type=section&id=Selling%20price) The average selling price of diesel significantly increased by **114.5%** year-on-year to **HK$8.56 per liter**, mainly due to rising market prices; the average selling price of AdBlue remained stable Average Selling Price Change (For the three months ended June 30) | Product | 2022 (HK$/liter) | 2021 (HK$/liter) | Change (%) | | :--- | :--- | :--- | :--- | | Diesel | 8.56 | 3.99 | +114.5% | | AdBlue | 3.73 | 3.72 | +0.3% | - Reason for diesel average selling price increase: upward trend in prevailing market prices[66](index=66&type=chunk)[71](index=71&type=chunk) [Cost of sales](index=16&type=section&id=Cost%20of%20sales) Cost of sales decreased by **70.8%** year-on-year to **HK$18.1 million**, consistent with the revenue decline; diesel cost remains the largest component, but unit purchase cost significantly increased by **99.2%** - Total cost of sales: **HK$18.1 million** in 2022 Q1, a year-on-year decrease of **70.8%**[68](index=68&type=chunk)[72](index=72&type=chunk) - Diesel cost: accounted for **91.2%** of cost of sales (2022), with unit purchase cost increasing by **99.2%** year-on-year to **HK$7.47 per liter**[69](index=69&type=chunk)[72](index=72&type=chunk) - Direct labor cost: **HK$0.6 million** in 2022 Q1, slightly lower than the prior year[73](index=73&type=chunk)[78](index=78&type=chunk) - Depreciation expense: increased to **HK$0.6 million** in 2022 Q1, mainly from diesel tank trucks[74](index=74&type=chunk)[78](index=78&type=chunk) [Gross profit and gross profit margin](index=17&type=section&id=Gross%20profit%20and%20gross%20profit%20margin) Gross profit decreased by **47.6%** year-on-year to **HK$1.1 million**, but gross profit margin improved from **3.3%** to **5.6%**, primarily due to reduced repair and related costs for diesel tank trucks Gross Profit and Gross Profit Margin Change (For the three months ended June 30) | Indicator | 2022 (HK$ million) | 2021 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 1.1 | 2.1 | -1.0 | -47.6% | | Gross profit margin | 5.6% | 3.3% | +2.3pp | N/A | - Reason for gross profit margin improvement: mainly due to lower repair and related costs for operating diesel tank trucks[75](index=75&type=chunk)[79](index=79&type=chunk) [Administrative and other operating expenses](index=17&type=section&id=Administrative%20and%20other%20operating%20expenses) Administrative and other operating expenses slightly increased by **5.0%** year-on-year to **HK$2.1 million**, primarily including administrative staff costs, professional service fees, rent, and rates - Total: **HK$2.1 million** in 2022 Q1, an increase of **HK$0.1 million** or **5.0%** year-on-year[76](index=76&type=chunk)[80](index=80&type=chunk) - Main components: administrative staff costs, professional service fees, rent and rates, etc[76](index=76&type=chunk)[80](index=80&type=chunk) [Income tax expenses](index=17&type=section&id=Income%20tax%20expenses) The Group had no assessable profit during the reporting period, resulting in zero Hong Kong income tax expense - Income tax: zero for both 2022 and 2021 due to no assessable profit[77](index=77&type=chunk)[81](index=81&type=chunk) [Capital commitments and contingent liabilities](index=18&type=section&id=Capital%20commitments%20and%20contingent%20liabilities) As of June 30, 2022, the Group had no capital commitments related to the acquisition of property, plant, and equipment - No capital commitments: as of June 30, 2022, the Group had no capital commitments[83](index=83&type=chunk)[89](index=89&type=chunk) [Events after the Reporting Period](index=18&type=section&id=Events%20after%20the%20Reporting%20Period) No significant events occurred after the reporting period up to the date of this report - No significant events: no significant events occurred after the reporting period up to the date of this report[84](index=84&type=chunk)[90](index=90&type=chunk) [Capital expenditure](index=18&type=section&id=Capital%20expenditure) For the three months ended June 30, 2022, the Group's capital expenditure was zero - Capital expenditure: zero for both 2022 and 2021[85](index=85&type=chunk)[91](index=91&type=chunk) [Other income](index=18&type=section&id=Other%20income) Other income primarily originated from the 2022 Employment Support Scheme under the Anti-epidemic Fund, aimed at providing wage subsidies to retain existing employees - Main source: wage subsidies provided by the 2022 Employment Support Scheme[86](index=86&type=chunk)[92](index=92&type=chunk) - Purpose: to retain existing employees and hire more when business recovers[86](index=86&type=chunk)[92](index=92&type=chunk) [Loss for the period](index=18&type=section&id=Loss%20for%20the%20period) The Group turned from a profit of **HK$0.1 million** in the prior year to a loss of **HK$0.7 million**, with net profit margin decreasing from **0.1%** to **-3.8%** (Loss)/Profit for the Period and Net Profit Margin Change (For the three months ended June 30) | Indicator | 2022 (HK$ million) | 2021 (HK$ million) | Change (HK$ million) | | :--- | :--- | :--- | :--- | | (Loss)/Profit for the period | (0.7) | 0.1 | -0.8 | | Net profit margin | -3.8% | 0.1% | -3.9pp | [USE OF PROCEEDS](index=19&type=section&id=USE%20OF%20PROCEEDS) The Group's net proceeds from its 2019 listing were **HK$34.8 million**, with **HK$27.2 million** utilized as of June 30, 2022; the expected timeline for some uses (e.g., purchasing diesel tank trucks and upgrading IT systems) has been extended to March 31, 2023 - Listing date: January 8, 2019[95](index=95&type=chunk)[96](index=96&type=chunk) - Net proceeds: **HK$34.8 million**[95](index=95&type=chunk)[96](index=96&type=chunk) Actual Use of Net Proceeds (As of June 30, 2022) | Purpose | Proposed allocation in prospectus (HK$ million) | Revised allocation (HK$ million) | Actual use (HK$ million) | Total unutilized (HK$ million) | Expected timeline for full utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Purchase of diesel tank trucks | 15.0 | 15.0 | 12.4 | 2.6 | Before March 31, 2023 | | Expansion of workforce | 12.5 | 1.7 | 1.7 | – | N/A | | Upgrade of IT system | 5.0 | 5.0 | – | 5.0 | Before March 31, 2023 | | Working capital | 2.3 | 13.1 | 13.1 | – | N/A | | **Total** | **34.8** | **34.8** | **27.2** | **7.6** | | - Timeline delay: unutilized proceeds for purchasing diesel tank trucks and upgrading IT systems are expected to be fully utilized by March 31, 2023[99](index=99&type=chunk) [ENVIRONMENT POLICIES AND PERFORMANCE](index=21&type=section&id=ENVIRONMENT%20POLICIES%20AND%20PERFORMANCE) The Group's operations are regulated by Hong Kong environmental laws and regulations, and it has implemented various environmental protection measures to reduce its operational impact and ensure compliance; as of the reporting date, the Group has not been penalized for environmental violations - Regulation: governed by Hong Kong environmental laws and regulations such as the Air Pollution Control Ordinance and Water Pollution Control Ordinance[102](index=102&type=chunk)[105](index=105&type=chunk) - Measures: implemented environmental protection measures to reduce air pollutant emissions and prevent leaks of petroleum products or other harmful substances[103](index=103&type=chunk)[105](index=105&type=chunk) - Compliance: continuously monitors business operations to ensure compliance with all applicable laws and regulations, with no violations recorded as of the reporting date[104](index=104&type=chunk)[106](index=106&type=chunk) [OTHER INFORMATION](index=22&type=section&id=OTHER%20INFORMATION) This section discloses other important information for the reporting period, including listed securities transactions, interests of directors and substantial shareholders, share option scheme, competing interests, and the composition and functions of corporate governance committees [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) As of June 30, 2022, the Company had no purchases, sales, or redemptions of its listed securities - No transactions: as of June 30, 2022, the Company had no purchases, sales, or redemptions of any listed securities[108](index=108&type=chunk)[110](index=110&type=chunk) [Interests and short positions of Directors and chief executive in the Shares, underlying Shares or debentures of the Company and its associated corporations](index=22&type=section&id=Interests%20and%20short%20positions%20of%20Directors%20and%20chief%20executive%20in%20the%20Shares,%20underlying%20Shares%20or%20debentures%20of%20the%20Company%20and%20its%20associated%20corporations) As of June 30, 2022, Mr. Law Ming Yik, Chairman and Executive Director, held a **62.78%** long position in the Company's shares through a controlled corporation Directors' Long Positions in Shares (As of June 30, 2022) | Name of Director | Capacity/Nature of interest | Number of Shares | Percentage of issued share capital | | :--- | :--- | :--- | :--- | | Mr. Law Ming Yik | Interest in controlled corporation | 251,110,000 shares | 62.78% | - Mr. Law Ming Yik holds Company shares through Full Fortress, which he wholly owns[115](index=115&type=chunk)[117](index=117&type=chunk) - No other disclosures: no other Directors or chief executive had disclosable interests or short positions besides those mentioned above[114](index=114&type=chunk)[116](index=116&type=chunk) [Interests and short positions of the substantial Shareholders and other persons in the shares, underlying shares and debentures of the Company and its associated corporations](index=24&type=section&id=Interests%20and%20short%20positions%20of%20the%20substantial%20Shareholders%20and%20other%20persons%20in%20the%20shares,%20underlying%20shares%20and%20debentures%20of%20the%20Company%20and%20its%20associated%20corporations) As of June 30, 2022, substantial shareholders Mr. Law Ming Yik and Full Fortress Group Limited each held a **62.78%** long position in the Company's shares Substantial Shareholders' Long Positions in Shares (As of June 30, 2022) | Name of Shareholder | Capacity/Nature of interest | Number of Shares held | Percentage of shareholding | | :--- | :--- | :--- | :--- | | Mr. Law Ming Yik | Interest in controlled corporation | 251,110,000 shares | 62.78% | | Full Fortress Group Limited | Beneficial owner | 251,110,000 shares | 62.78% | - Mr. Law Ming Yik is deemed to be interested in all shares held by Full Fortress[121](index=121&type=chunk)[123](index=123&type=chunk) - No other disclosures: no other persons had disclosable interests or short positions besides those mentioned above[122](index=122&type=chunk)[123](index=123&type=chunk) [Share Option Scheme](index=25&type=section&id=Share%20Option%20Scheme) The Company's Share Option Scheme was conditionally adopted on December 11, 2018, effective from the listing date; no share options were granted, exercised, lapsed, or cancelled, nor were there any outstanding share options during or as of the reporting date - Adoption date: December 11, 2018[124](index=124&type=chunk)[129](index=129&type=chunk) - Effective date: listing date[124](index=124&type=chunk)[129](index=129&type=chunk) - Status: no share options were granted, exercised, lapsed, or cancelled, nor were there any outstanding share options during or as of the reporting date[125](index=125&type=chunk)[130](index=130&type=chunk) [Competing Interests](index=25&type=section&id=Competing%20Interests) The Directors confirm that as of the reporting date, neither the Company's controlling shareholders, Directors, nor their close associates held any interests in businesses competing with the Group's operations - No competing interests: Directors confirm that controlling shareholders, Directors, and their close associates have no interests competing with the Group's business[126](index=126&type=chunk)[131](index=131&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee, established on December 11, 2018, comprises three independent non-executive Directors, chaired by Mr. Ho Cheung Ki; the Committee reviewed the unaudited condensed consolidated financial statements and deemed them compliant with applicable accounting standards and GEM Listing Rules - Establishment date: December 11, 2018[127](index=127&type=chunk)[132](index=132&type=chunk) - Composition: three independent non-executive Directors (Mr. Ho Cheung Ki, Mr. Wong Ka Chun, Mr. Fan Tak Wai), with Mr. Ho Cheung Ki as Chairman[127](index=127&type=chunk)[132](index=132&type=chunk) - Functions: reviewed the unaudited condensed consolidated financial statements and confirmed their compliance with accounting standards and GEM Listing Rules[128](index=128&type=chunk)[133](index=133&type=chunk) [Nomination Committee](index=26&type=section&id=Nomination%20Committee) The Nomination Committee, established on December 11, 2018, comprises two independent non-executive Directors and one executive Director, chaired by Mr. Law Ming Yik; its main responsibilities include regularly reviewing Board composition, identifying qualified director candidates, assessing independent directors' independence, and making appointment recommendations - Establishment date: December 11, 2018[135](index=135&type=chunk)[138](index=138&type=chunk) - Composition: two independent non-executive Directors (Mr. Wong Ka Chun, Mr. Fan Tak Wai) and one executive Director (Mr. Law Ming Yik), with Mr. Law Ming Yik as Chairman[135](index=135&type=chunk)[138](index=138&type=chunk) - Main functions: review Board diversity, structure, size, and composition; identify qualified director candidates; assess independent directors' independence; and make recommendations for director appointments or re-appointments[136](index=136&type=chunk)[138](index=138&type=chunk) - Meeting frequency: should hold at least one meeting annually[137](index=137&type=chunk)[139](index=139&type=chunk) [Remuneration Committee](index=27&type=section&id=Remuneration%20Committee) The Remuneration Committee, established on December 11, 2018, comprises two independent non-executive Directors and one executive Director, chaired by Mr. Fan Tak Wai; its primary responsibility is to advise the Board on the overall remuneration policy and structure for Directors and senior management - Establishment date: December 11, 2018[142](index=142&type=chunk)[145](index=145&type=chunk) - Composition: two independent non-executive Directors (Mr. Fan Tak Wai, Mr. Ho Cheung Ki) and one executive Director (Mr. Law Ming Yik), with Mr. Fan Tak Wai as Chairman[142](index=142&type=chunk)[145](index=145&type=chunk) - Main functions: advise the Board on remuneration policy and structure for Directors and senior management; review and approve management remuneration proposals; ensure Directors do not determine their own remuneration[143](index=143&type=chunk)[145](index=145&type=chunk) - Remuneration determination: references market benchmarks and considers individual capabilities, responsibilities, performance, and Group results[144](index=144&type=chunk)[146](index=146&type=chunk) - Meeting frequency: should hold at least one meeting annually[144](index=144&type=chunk)[146](index=146&type=chunk) [Directors' Securities Transactions](index=28&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted a code of conduct for Directors' securities transactions, and all Directors confirm compliance with this code and the trading standards stipulated by the GEM Listing Rules - Code of conduct: the Company has adopted a code of conduct for Directors' securities transactions, with terms no less exacting than those required by the GEM Listing Rules[148](index=148&type=chunk)[150](index=150&type=chunk) - Compliance: all Directors confirm compliance with the code and stipulated trading standards[148](index=148&type=chunk)[150](index=150&type=chunk) [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The Company is committed to maintaining high corporate governance standards and has complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules from its listing date to June 30, 2022 - Commitment: committed to maintaining and ensuring high corporate governance standards[149](index=149&type=chunk)[151](index=151&type=chunk) - Compliance: has complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules from its listing date to June 30, 2022[149](index=149&type=chunk)[151](index=151&type=chunk) [SUFFICIENCY OF PUBLIC FLOAT](index=29&type=section&id=SUFFICIENCY%20OF%20PUBLIC%20FLOAT) As of the date of this report, the Company has maintained a sufficient public float as required by the GEM Listing Rules - Public float: as of the reporting date, the Company has maintained a sufficient public float as required by the GEM Listing Rules[153](index=153&type=chunk)[155](index=155&type=chunk)

[Corporate Information](index=3&type=section&id=CORPORATE%20INFORMATION) [Board of Directors Composition](index=4&type=section&id=BOARD%20OF%20DIRECTORS) The Board of Directors comprises two executive directors and three independent non-executive directors, with Mr. Law Ming Yik as Chairman and Mr. Li Yi Hao as Chief Executive Officer, bringing diverse professional backgrounds and experience - The Board of Directors consists of **5** directors, including **2** executive directors and **3** independent non-executive directors[8](index=8&type=chunk) - Mr. Law Ming Yik serves as Chairman, and Mr. Li Yi Hao serves as Chief Executive Officer[8](index=8&type=chunk) - Independent non-executive directors include Mr. Fan Tak Wai, Mr. Wong Ka Chun, and Mr. Ho Cheung Kong, with Mr. Ho Cheung Kong serving as Chairman of the Audit Committee[8](index=8&type=chunk)[10](index=10&type=chunk) [Committees](index=4&type=section&id=COMMITTEES) The company has established Audit, Remuneration, and Nomination Committees to ensure effective corporate governance, with independent non-executive directors serving as chairpersons or key members - The Audit Committee Chairman is Mr. Ho Cheung Kong, with members including Mr. Wong Ka Chun and Mr. Fan Tak Wai[10](index=10&type=chunk) - The Remuneration Committee Chairman is Mr. Fan Tak Wai, with members including Mr. Law Ming Yik and Mr. Ho Cheung Kong[10](index=10&type=chunk) - The Nomination Committee Chairman is Mr. Law Ming Yik, with members including Mr. Wong Ka Chun and Mr. Fan Tak Wai[10](index=10&type=chunk) [Key Contacts and Information](index=4&type=section&id=KEY%20CONTACTS%20AND%20INFORMATION) The company's authorised representatives are Mr. Law Ming Yik and Mr. Li Yi Hao, with Mr. Law also serving as Compliance Officer and Mr. Leung Cheuk Wai as Company Secretary; the company is registered in the Cayman Islands with Hong Kong headquarters in Yuen Long and stock code 8631 - Authorised Representatives: Mr. Law Ming Yik, Mr. Li Yi Hao[9](index=9&type=chunk) - Compliance Officer: Mr. Law Ming Yik[9](index=9&type=chunk) - Company Secretary: Mr. Leung Cheuk Wai (Practising Accountant)[9](index=9&type=chunk) - Company Website: www.skhl.com.hk, Stock Code: **8631**[11](index=11&type=chunk) [Chairman's Statement](index=6&type=section&id=CHAIRMAN'S%20STATEMENT) [Performance Overview and Market Conditions](index=6&type=section&id=OVERVIEW%20OF%20PERFORMANCE%20AND%20MARKET%20CONDITIONS) Amidst the ongoing COVID-19 pandemic, Hong Kong and mainland China's economies deteriorated, and rising crude oil prices increased procurement and operating costs, leading to a slight revenue decrease but significantly narrowed losses - Hong Kong and mainland China's economies continued to deteriorate due to the COVID-19 pandemic, leading to major city lockdowns and slowed economic activity[14](index=14&type=chunk) - Crude oil prices continuously rose throughout the year, intensifying procurement and operating cost pressures[15](index=15&type=chunk) Key Financial Data for FY2022 (vs. FY2021) | Metric | FY2022 (HK$ million) | FY2021 (HK$ million) | Change | Change Rate | Original Chunk Ref | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 230.9 | 240.1 | ↓9.2 | ↓3.8% | [16] | | Loss Attributable to Owners | 3.1 | 7.5 | ↓4.4 | ↓58.7% | [16] | [Future Outlook and Strategy](index=7&type=section&id=FUTURE%20OUTLOOK%20AND%20STRATEGY) Facing pandemic challenges, the company will strive to maintain stable business scale, enhance operational efficiency, and adapt flexibly to new challenges, gradually implementing strategies to solidify its position as a long-established diesel supplier in Hong Kong and create long-term shareholder value - The company will strive to maintain a stable business scale, enhance operational efficiency, and remain highly vigilant and flexible to adapt to new challenges[19](index=19&type=chunk) - Gradually implement business strategies to consolidate the Group's position as a long-established diesel supplier in Hong Kong, creating long-term value for shareholders[19](index=19&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [Business Review](index=8&type=section&id=BUSINESS%20REVIEW) The Group primarily sells diesel and related products in Hong Kong to logistics and construction companies; COVID-19 impacted cross-border logistics, reducing diesel sales, though Hong Kong construction recovery boosted some demand, while rising crude oil prices increased procurement costs and pressured cash flow - The Group primarily sells diesel and related products in Hong Kong, with services including procurement and transportation[23](index=23&type=chunk) - Major customers are logistics and construction companies, with **eight** diesel tanker trucks as of March 31, 2022[23](index=23&type=chunk) - The COVID-19 pandemic led to major city lockdowns in mainland China and slowed economic activity in Hong Kong, restricting cross-border transportation and reducing diesel demand in the logistics industry[24](index=24&type=chunk)[26](index=26&type=chunk) - Crude oil prices surged, with Brent crude exceeding **US$100/barrel**, increasing diesel procurement costs and pressuring operating cash flow[25](index=25&type=chunk) - Hong Kong construction projects resumed, leading to improved diesel demand for construction site machinery[26](index=26&type=chunk) [Future Prospects](index=9&type=section&id=FUTURE%20PROSPECTS) Amidst COVID-19 uncertainty, the Group will closely monitor the pandemic, strengthen cash flow management, integrate resources, and adjust business plans to ensure stable operations and prepare for post-pandemic recovery, while continuously implementing preventive measures for employee and partner safety - The Group will continue to closely monitor COVID-19 developments, focus on cash flow management, integrate existing resources, and actively adjust business plans[31](index=31&type=chunk) - Ensuring smooth operations through difficult times and being fully prepared for business recovery once the pandemic is under control[31](index=31&type=chunk) - Continuously and cautiously reviewing the pandemic situation to reduce business operating risks and implementing appropriate preventive measures to ensure the safety of employees and partners[32](index=32&type=chunk) [Financial Review](index=10&type=section&id=FINANCIAL%20REVIEW) The Group's FY2022 revenue decreased by **3.8%** to **HK$230.9 million** due to reduced diesel sales from the pandemic; despite lower volume, average diesel selling price rose **67.6%**, gross profit surged **228.6%** to **HK$6.9 million**, and gross margin improved from **0.9%** to **3.0%**, driven by increased sales to high-margin construction clients and lower maintenance costs, narrowing the annual loss to **HK$3.1 million** Revenue Overview | Metric | FY2022 (HK$ million) | FY2021 (HK$ million) | Change (HK$ million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 230.9 | 240.1 | ↓9.2 | ↓3.8% | | Diesel Sales Revenue | 230.4 | 239.4 | ↓9.0 | ↓3.8% | | Urea Solution Sales Revenue | 0.5 | 0.5 | 0 | 0% | Sales Volume and Average Selling Price Changes | Product | FY2022 Sales Volume (thousand liters) | FY2021 Sales Volume (thousand liters) | Sales Volume Change Rate | FY2022 Average Selling Price (HK$/liter) | FY2021 Average Selling Price (HK$/liter) | Selling Price Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Diesel | 50.0 | 87.1 | ↓42.6% | 4.61 | 2.75 | ↑67.6% | | Urea Solution | 120.2 | 102.0 | ↑17.8% | 4.00 | 4.51 | ↓11.3% | Costs and Profit | Metric | FY2022 (HK$ million) | FY2021 (HK$ million) | Change (HK$ million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 224.0 | 238.0 | ↓14.0 | ↓5.9% | | Diesel Cost | 217.1 | 230.4 | ↓13.3 | ↓5.8% | | Average Unit Procurement Cost of Diesel (HK$/liter) | 4.34 | 2.65 | ↑1.69 | ↑63.8% | | Gross Profit | 6.9 | 2.1 | ↑4.8 | ↑228.6% | | Gross Profit Margin | 3.0% | 0.9% | ↑2.1% | - | | Administrative and Other Operating Expenses | 9.0 | 9.4 | ↓0.4 | ↓4.3% | | Loss for the Year | 3.1 | 7.5 | ↓4.4 | ↓58.7% | | Net Profit Margin | -1.36% | -3.12% | ↑1.76% | - | - The increase in gross profit margin was primarily due to higher diesel sales to more profitable construction clients and reduced maintenance costs for diesel tanker trucks[53](index=53&type=chunk)[56](index=56&type=chunk) [Liquidity and Capital Resources](index=13&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The Group funds operations through operating cash and bank financing; as of March 31, 2022, net current assets were **HK$42.3 million**, the current ratio was **3.2**, available bank facilities were **HK$11 million**, with **HK$10.5 million** utilised, and the gearing ratio significantly increased from **2.3%** to **20.1%** - The Group funds its operations through cash generated from operating activities and bank financing[60](index=60&type=chunk) Liquidity Ratios | Metric | March 31, 2022 (HK$ million) | March 31, 2021 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 42.3 | 45.77 | ↓3.47 | | Current Assets | 61.8 | 55.185 | ↑6.649 | | Current Liabilities | 19.6 | 9.415 | ↑10.145 | | Current Ratio | 3.2 | 5.86 | ↓2.66 | | Available Banking Facilities | 11.0 | 5.0 | ↑6.0 | | Utilised Banking Facilities | 10.5 | 1.27 | ↑9.23 | | Gearing Ratio | 20.1% | 2.3% | ↑17.8% | [Major Risks and Uncertainties](index=14&type=section&id=MAJOR%20RISKS%20AND%20UNCERTAINTIES) Key risks include inaccurate oil and gas price assumptions, reliance on a single petroleum supplier, customer attrition due to price competition and economic slowdown, and operational disruptions from staff turnover, which the Group mitigates through risk management practices - If the Group uses incorrect oil and gas price assumptions to evaluate projects and business opportunities, its profitability, cash flow, and financial position may be adversely affected[72](index=72&type=chunk) - Diesel transportation services may be interrupted if the Group relies on a single petroleum supplier in Hong Kong[72](index=72&type=chunk) - Customer attrition due to price competition and global economic slowdown[72](index=72&type=chunk) - Operational disruptions due to difficulty in retaining employees[72](index=72&type=chunk) [Foreign Currency Exposure Risk](index=15&type=section&id=FOREIGN%20CURRENCY%20EXPOSURE%20RISK) The Group primarily operates in Hong Kong and did not face any foreign exchange risk for the year ended March 31, 2022 - The Group primarily operates in Hong Kong and did not face any foreign exchange risk for the year ended March 31, 2022[73](index=73&type=chunk)[77](index=77&type=chunk) [Capital Structure](index=15&type=section&id=CAPITAL%20STRUCTURE) As of March 31, 2022, the Group's capital structure included equity attributable to owners of approximately **HK$52 million**, with share capital consisting solely of ordinary shares, and no changes since its listing on January 8, 2019 - As of March 31, 2022, the Group's capital structure included equity attributable to owners of approximately **HK$52.0 million**[74](index=74&type=chunk)[78](index=78&type=chunk) - The Group's share capital consists solely of ordinary shares, with no changes in its capital structure since its listing on January 8, 2019[74](index=74&type=chunk)[78](index=78&type=chunk) [Treasury Policies](index=15&type=section&id=TREASURY%20POLICIES) The Group adopts prudent financial management principles, maintaining a robust liquidity position by continuously assessing customer creditworthiness to mitigate credit risk and closely monitoring liquidity to meet funding requirements - The Group adopted prudent financial management principles, maintaining a robust liquidity position for the year ended March 31, 2022[75](index=75&type=chunk)[79](index=79&type=chunk) - Credit risk is mitigated by continuously assessing customers' creditworthiness and financial standing[75](index=75&type=chunk)[79](index=79&type=chunk) - The Board closely monitors the Group's liquidity position to ensure its asset, liability, and other commitment liquidity structure meets its funding needs at all times[75](index=75&type=chunk)[79](index=79&type=chunk) [Significant Investments, Acquisitions and Disposals](index=15&type=section&id=SIGNIFICANT%20INVESTMENTS,%20MATERIAL%20ACQUISITIONS%20AND%20DISPOSALS) For the year ended March 31, 2022, the Group did not undertake any significant investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the year ended March 31, 2022, the Group did not undertake any significant investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures[76](index=76&type=chunk)[80](index=80&type=chunk) [Capital Commitments and Capital Expenditure](index=16&type=section&id=CAPITAL%20COMMITMENTS%20AND%20CAPITAL%20EXPENDITURE) As of March 31, 2022, the Group had no capital commitments for property and equipment acquisitions; capital expenditure for the period significantly decreased by **87.1%** to **HK$0.4 million**, primarily for vehicle purchases - As of March 31, 2022, the Group had no capital commitments for the acquisition of property and equipment[82](index=82&type=chunk)[87](index=87&type=chunk) Capital Expenditure Changes | Metric | FY2022 (HK$ million) | FY2021 (HK$ million) | Change (HK$ million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Capital expenditure | 0.4 | 3.1 | ↓2.7 | ↓87.1% | - Capital expenditure was primarily related to vehicle purchases[83](index=83&type=chunk)[88](index=88&type=chunk) [Dividends](index=16&type=section&id=DIVIDENDS) The Board does not recommend the payment of any dividends for the years ended March 31, 2021 and 2022 - The Board does not recommend the payment of any dividends for the years ended March 31, 2021 and 2022[85](index=85&type=chunk)[90](index=90&type=chunk) [Events After the Reporting Period](index=16&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) No significant events occurred after the financial year ended March 31, 2022, up to the date of this report - No significant events occurred after the financial year ended March 31, 2022, up to the date of this report[86](index=86&type=chunk)[91](index=91&type=chunk) [Comparison of Business Strategy Implementation Plans with Actual Progress](index=17&type=section&id=COMPARISON%20OF%20IMPLEMENTATION%20PLANS%20FOR%20BUSINESS%20STRATEGIES%20WITH%20ACTUAL%20IMPLEMENTATION%20PROGRESS) The Group has proceeded with planned diesel tanker fleet expansion by ordering and deploying new vehicles, while IT system upgrades are still in discussion with potential vendors regarding requirements and specifications; human resources recruitment for drivers, logistics assistants, and senior accounting staff has progressed as planned Comparison of Business Strategy Implementation Plans with Actual Progress | Business Strategy | Plan (as at March 31, 2022) | Actual Progress (as at March 31, 2022) | Original Chunk Ref | | :--- | :--- | :--- | :--- | | Expand and Improve Diesel Tanker Fleet | Order two new diesel tankers; replace two existing diesel tankers; order one new diesel tanker | Two new diesel tankers ordered and put into use in Oct 2019; two new diesel tankers ordered and put into use in Apr 2020; one new diesel tanker ordered in May 2020 and put into use in Jun 2021 | [95, 96, 98] | | Enhance IT and Systems | Purchase Enterprise Resource Planning System | Discussing requirements and specifications for new office administrative IT system upgrade with potential vendors | [99] | | Strengthen Manpower | Recruit four drivers and two logistics assistants; recruit two accounting staff; recruit one administrative staff | As of March 31, 2020, four drivers and two logistics assistants employed; one senior accountant employed; one administrative staff employed in May 2019 | [99] | [Use of Proceeds](index=20&type=section&id=USE%20OF%20PROCEEDS) The company listed on January 8, 2019, with net proceeds from the share offer of approximately **HK$34.8 million**; as of March 31, 2022, **HK$27.2 million** has been used, with **HK$7.6 million** remaining, and the utilisation of funds for diesel tanker purchases and IT system upgrades is delayed, expected to be fully deployed by March 31, 2023 - Net proceeds from the share offer were approximately **HK$34.8 million**[102](index=102&type=chunk)[103](index=103&type=chunk) Actual Use of Net Proceeds (as at March 31, 2022) | Purpose | Allocation as per Prospectus (HK$ million) | Revised Allocation (HK$ million) | Actual Use (HK$ million) | Total Unused Amount (HK$ million) | Expected Full Utilisation Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Purchase Diesel Tankers | 15.0 | 15.0 | 12.4 | 2.6 | Before March 31, 2023 | | Manpower Expansion | 12.5 | 1.7 | 1.7 | – | N/A | | Upgrade IT Systems | 5.0 | 5.0 | – | 5.0 | Before March 31, 2023 | | Working Capital | 2.3 | 13.1 | 13.1 | – | N/A | | **Total** | **34.8** | **34.8** | **27.2** | **7.6** | | - The utilisation of funds for diesel tanker purchases and IT system upgrades is delayed, expected to be fully deployed by March 31, 2023[106](index=106&type=chunk) [Employees and Remuneration Policies](index=22&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICIES) As of March 31, 2022, the Group had **23** employees with total staff costs of **HK$7.6 million**; remuneration policy is based on market levels, employee performance, qualifications, experience, and position, and is regularly reviewed Employee Headcount and Costs | Metric | March 31, 2022 | March 31, 2021 | | :--- | :--- | :--- | | Total Employees | 23 | 27 | | Total Staff Costs (HK$ million) | 7.6 | 7.3 | - Remuneration (including employee benefits) is maintained at market levels and regularly reviewed[108](index=108&type=chunk)[111](index=111&type=chunk) - Employee remuneration and related benefits are determined based on performance, qualifications, experience, position, and the Group's business performance[108](index=108&type=chunk)[111](index=111&type=chunk) [Environmental Policies and Performance](index=22&type=section&id=ENVIRONMENT%20POLICIES%20AND%20PERFORMANCE) The Group's primary business is regulated by Hong Kong environmental laws and regulations, such as the Air Pollution Control Ordinance and Water Pollution Control Ordinance; the Group prioritises environmental protection, implementing measures to minimise operational impact on the environment and natural resources, with detailed policies and performance outlined in the Environmental, Social and Governance Report - The Group's primary business is regulated by Hong Kong environmental laws and regulations, including the Air Pollution Control Ordinance and Water Pollution Control Ordinance[109](index=109&type=chunk)[112](index=112&type=chunk) - The Group recognises the importance of environmental protection and has implemented various measures to minimise the operational impact on the environment and natural resources[109](index=109&type=chunk)[112](index=112&type=chunk) [Corporate Governance Report](index=23&type=section&id=CORPORATE%20GOVERNANCE%20REPORT) [Board of Directors](index=23&type=section&id=BOARD%20OF%20DIRECTORS_CG) The Board is committed to establishing high corporate governance standards, adhering to all applicable codes, and is responsible for overall strategy, management objectives, and performance oversight, delegating daily management while ensuring independence and diversity through its professionally qualified and experienced members - The Board is committed to establishing and ensuring high standards of corporate governance within the Group, complying with all applicable code provisions in the Corporate Governance Code[114](index=114&type=chunk)[115](index=115&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - The Board's primary responsibilities include formulating the Group's overall strategy, setting management objectives, and monitoring management performance[116](index=116&type=chunk)[120](index=120&type=chunk) - The Board comprises **two** executive directors and **three** independent non-executive directors, meeting GEM Listing Rules requirements and possessing sufficient independence[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [Board Meetings and Training](index=26&type=section&id=BOARD%20MEETINGS%20AND%20TRAINING) The Board holds at least four regular meetings annually, supported by Audit, Remuneration, and Nomination Committees; meeting notices and materials are distributed in advance for informed decision-making, and all directors engage in continuous professional development to update knowledge and skills, complying with corporate governance code requirements - The Board holds at least **four** regular meetings annually and has established Audit, Remuneration, and Nomination Committees[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - Notices and agendas for regular Board meetings are provided to all directors at least **14** days before the meeting[133](index=133&type=chunk)[135](index=135&type=chunk) - All directors have undertaken continuous professional development by attending training courses or reviewing materials on corporate governance and regulatory topics, complying with Code Provision C.1.4[149](index=149&type=chunk)[153](index=153&type=chunk) Board and Committee Meeting Attendance (for the year ended March 31, 2022) | Director Name | Board | Audit Committee | Remuneration Committee | Nomination Committee | AGM | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Law Ming Yik (Chairman) | 4/4 | – | 1/1 | 1/1 | 1/1 | | Mr. Li Yi Hao | 4/4 | – | – | – | 1/1 | | Mr. Fan Tak Wai | 4/4 | 4/4 | 1/1 | 1/1 | 1/1 | | Mr. Wong Ka Chun | 4/4 | 4/4 | – | 1/1 | 1/1 | | Mr. Ho Cheung Kong | 4/4 | 4/4 | 1/1 | – | 1/1 | [Chairman and Chief Executive Officer](index=29&type=section&id=CHAIRMAN%20AND%20CHIEF%20EXECUTIVE%20OFFICER) Mr. Law Ming Yik serves as Chairman, leading the Board and overall corporate management strategy, while Mr. Li Yi Hao, as Chief Executive Officer, implements business strategies and oversees overall Group operations; this clear division of responsibilities aligns with corporate governance codes, ensuring effective management oversight - Mr. Law Ming Yik serves as Chairman, responsible for leading the Board and the overall corporate management of the Group's business development strategy[158](index=158&type=chunk)[160](index=160&type=chunk) - Mr. Li Yi Hao serves as Chief Executive Officer, responsible for implementing business strategies, policies, and objectives set by the Board, and is accountable to the Board for the Group's overall operations[158](index=158&type=chunk)[160](index=160&type=chunk) - The segregation of duties between the Chairman and Chief Executive Officer complies with Code Provision C.2.1 of the Corporate Governance Code, ensuring effective oversight of management[158](index=158&type=chunk)[160](index=160&type=chunk) [Board Committees](index=30&type=section&id=BOARD%20COMMITTEE) The company has Audit, Remuneration, and Nomination Committees, each with clear written terms of reference; the Audit Committee oversees internal controls and financial statements, the Remuneration Committee sets compensation policies for directors and senior management, and the Nomination Committee handles board member nominations and diversity policy - The Audit Committee comprises **three** independent non-executive directors, with Mr. Ho Cheung Kong as Chairman; its primary responsibilities include providing independent opinions, overseeing internal control and risk management systems, and reviewing financial statements[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[167](index=167&type=chunk) - The Remuneration Committee comprises **two** independent non-executive directors and **one** executive director, with Mr. Fan Tak Wai as Chairman; its primary responsibility is to provide recommendations to the Board on the remuneration policy and structure for directors and senior management[170](index=170&type=chunk)[171](index=171&type=chunk)[175](index=175&type=chunk) - The Nomination Committee comprises **two** independent non-executive directors and **one** executive director, with Mr. Law Ming Yik as Chairman; its primary responsibilities include regularly reviewing the Board's diversity policy, structure, size, and composition, and identifying suitable candidates[183](index=183&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk)[191](index=191&type=chunk) Senior Management Remuneration Range (for the year ended March 31, 2022) | Remuneration Range (HK$) | Number of Individuals | | :--- | :--- | | 0 to 1,000,000 | 2 | | 1,000,000 to 2,000,000 | 1 | [Accountability and Audit](index=34&type=section&id=ACCOUNTABILITY%20AND%20AUDIT) The Board is responsible for ensuring true and fair financial statements, maintaining proper accounting records, and safeguarding assets; the auditor is responsible for the financial statements and has reviewed audit and non-audit service fees; the company has no corporate governance committee, with its functions performed by the Board - The Board is responsible for ensuring that the Group's consolidated financial statements for each financial year present a true and fair view, and for maintaining proper accounting records and safeguarding assets[195](index=195&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - The auditor's reporting responsibilities are set out in the Independent Auditor's Report[197](index=197&type=chunk)[200](index=200&type=chunk) Auditor's Remuneration (for the year ended March 31, 2022) | Service Type | Amount (HK$) | | :--- | :--- | | Annual Audit Services | 480,000 | | Certain Agreed-Upon Procedures Services | 140,000 | | **Total** | **620,000** | - The company has not established a corporate governance committee, with its functions performed by the Board[204](index=204&type=chunk)[205](index=205&type=chunk) [Board Diversity Policy](index=36&type=section&id=BOARD%20DIVERSITY%20POLICY) The company has adopted a Board Diversity Policy considering factors like gender, age, culture, education, professional experience, skills, and knowledge; the Nomination Committee is satisfied with current board diversity and plans to prioritise enhancing gender diversity by December 31, 2024 - The Board Diversity Policy considers factors such as gender, age, cultural and educational background, professional experience, skills, and knowledge[207](index=207&type=chunk)[211](index=211&type=chunk) - The Nomination Committee is satisfied with the Board's diversity in terms of independence, skills, industry and professional experience, cultural and educational background, and tenure of board members[208](index=208&type=chunk)[211](index=211&type=chunk) - The Nomination Committee agreed to proactively identify suitable candidates to enhance gender diversity as a primary consideration by December 31, 2024[208](index=208&type=chunk)[211](index=211&type=chunk) [Securities Transactions by Directors](index=36&type=section&id=SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company has adopted the GEM Listing Rules' code of conduct for directors' securities transactions and confirmed all directors complied with it during the reporting period - The company has adopted Rules **5.48** to **5.67** of the GEM Listing Rules as its own code of conduct for directors' securities transactions[210](index=210&type=chunk)[212](index=212&type=chunk) - The company has confirmed that all directors complied with the code of conduct for the entire year ended March 31, 2022, and up to the date of this report[210](index=210&type=chunk)[212](index=212&type=chunk) [Communication with Shareholders](index=37&type=section&id=COMMUNICATION%20WITH%20SHAREHOLDERS) The company is committed to continuous communication with shareholders through AGMs and other meetings, encouraging participation; all resolutions will be voted on by poll, with results promptly published, and an open, effective investor communication policy will be maintained, providing timely business updates - The company is committed to continuous communication with shareholders, particularly through Annual General Meetings or other general meetings, and encourages shareholder participation[213](index=213&type=chunk)[219](index=219&type=chunk) - All resolutions proposed at general meetings will be voted on by poll, and the voting results will be published on the company's and Stock Exchange's websites in a timely manner after each general meeting[214](index=214&type=chunk)[219](index=219&type=chunk) - The company will continue to maintain an open and effective investor communication policy, providing investors with timely updates on the Group's business in compliance with relevant regulatory requirements[215](index=215&type=chunk)[219](index=219&type=chunk) [Dividend Policy](index=37&type=section&id=DIVIDEND%20POLICY) The Board has adopted a dividend policy requiring sufficient cash reserves for working capital and future growth when proposing or declaring dividends; dividend distribution depends on financial performance, cash flow, business strategy, capital needs, and other factors, payable in cash or scrip, and the policy will be reviewed periodically - The Board has adopted a dividend policy, requiring the company to maintain sufficient cash reserves to meet its working capital needs and future business growth when proposing or declaring dividends[218](index=218&type=chunk)[222](index=222&type=chunk) - Dividend distribution will consider factors such as financial performance, cash flow position, business conditions and strategies, future operations and profitability, capital requirements and expenditure plans, and shareholders' interests[224](index=224&type=chunk)[228](index=228&type=chunk) - The company may declare and pay dividends in cash, by way of scrip dividends, or in other forms deemed appropriate by the Board[225](index=225&type=chunk)[227](index=227&type=chunk) - The Board reviews the dividend policy from time to time as needed[230](index=230&type=chunk)[234](index=234&type=chunk) [Shareholders' Rights](index=39&type=section&id=SHAREHOLDERS'%20RIGHTS) Shareholders holding at least one-tenth of the company's paid-up capital have the right to requisition an extraordinary general meeting, and may direct enquiries to the Board, with the Company Secretary facilitating such communications - Shareholders holding not less than **one-tenth** of the company's paid-up capital have the right to requisition an extraordinary general meeting by written request to the Board or Company Secretary[231](index=231&type=chunk)[235](index=235&type=chunk) - Shareholders may direct enquiries to the Board, with the Company Secretary responsible for forwarding such communications[238](index=238&type=chunk)[241](index=241&type=chunk) [Investor Relations and Inside Information Disclosure](index=40&type=section&id=INVESTOR%20RELATIONS%20AND%20INSIDE%20INFORMATION%20DISCLOSURE) The company updates business development and financial performance through annual, interim, and quarterly reports, using its website as a communication platform; an inside information disclosure policy is in place, with the Board responsible for timely, accurate, and complete disclosure, and directors, management, and employees required to maintain confidentiality of unpublished information - The company updates its shareholders on its latest business developments and financial performance through annual, interim, and quarterly reports[239](index=239&type=chunk)[242](index=242&type=chunk) - The company has established an inside information disclosure policy, with the Board responsible for timely dissemination of accurate and complete inside information regarding the Group to the market[240](index=240&type=chunk)[243](index=243&type=chunk) - The policy strictly requires directors, management, and employees to keep unpublished inside information confidential and prohibits them from trading in the company's securities if they possess such information[240](index=240&type=chunk)[243](index=243&type=chunk) [Company Secretary](index=41&type=section&id=COMPANY%20SECRETARY) Mr. Leung Cheuk Wai, the Company Secretary, advises the Board on corporate governance matters, ensures compliance with board procedures and applicable laws, and facilitates communication between directors and management; Mr. Leung has completed the professional training required by the GEM Listing Rules - Mr. Leung Cheuk Wai, the Company Secretary, advises the Board on corporate governance matters and ensures compliance with Board policies and procedures, applicable laws, rules, and regulations[245](index=245&type=chunk)[249](index=249&type=chunk) - The Company Secretary facilitates communication among directors and between directors and management[245](index=245&type=chunk)[249](index=249&type=chunk) - For the year ended March 31, 2022, the Company Secretary participated in over **15** hours of relevant professional training in compliance with Rule **5.15** of the GEM Listing Rules[246](index=246&type=chunk)[249](index=249&type=chunk) [Risk Management and Internal Control](index=41&type=section&id=RISK%20MANAGEMENT%20AND%20INTERNAL%20CONTROL) The Board is fully responsible for establishing and maintaining effective risk management and internal control systems to achieve business objectives, safeguard assets, ensure reliable financial information, and comply with regulations; the Group has established organisational structures and policies, identifying strategic, operational, financial, and compliance risks, with the Board, through the Audit Committee, annually reviewing system effectiveness and planning to continue engaging external professionals for internal audit functions - The Board is fully responsible for establishing and maintaining appropriate and effective risk management and internal control systems for the Group[247](index=247&type=chunk)[250](index=250&type=chunk) - The systems aim to help achieve business objectives, safeguard assets, ensure proper accounting records for reliable financial information, and ensure compliance with relevant laws and regulations[247](index=247&type=chunk)[250](index=250&type=chunk) Key Risks | Risk Area | Key Risks | | :--- | :--- | | Strategic Risks | Sensitivity to government policies; keeping up with new developments and customer expectations; market competition risk; reputational risk | | Operational Risks | Insufficient labour supply; work injuries; IT system disruptions | | Financial Risks | Liquidity risk; credit risk; interest rate risk; foreign exchange risk; inflation risk | | Compliance Risks | Risks related to occupational safety and health; risks of non-compliance with employment-related ordinances; changes in Listing Rules and relevant company regulations and ordinances | - The Board, through the Audit Committee, reviews the design and implementation effectiveness of the Group's risk management and internal control systems[257](index=257&type=chunk)[258](index=258&type=chunk) - The Group currently has no internal audit function, but the Board believes engaging external independent professionals to perform internal audit functions would be more cost-effective[260](index=260&type=chunk)[262](index=262&type=chunk) [Environmental, Social and Governance Report](index=44&type=section&id=ENVIRONMENTAL,%20SOCIAL%20AND%20GOVERNANCE%20REPORT) - The Group firmly believes in the benefits of sustainable development, and that business growth should not come at the expense of the environment[319](index=319&type=chunk)[322](index=322&type=chunk) - During the reporting period, the Group found no material non-compliance with environmental laws and regulations[320](index=320&type=chunk)[323](index=323&type=chunk) [Approach and Report Overview](index=44&type=section&id=APPROACH%20AND%20ABOUT%20THIS%20REPORT) The Group integrates sustainability into its business strategy, focusing on environmental, social, and governance (ESG) factors to foster business growth and long-term sustainability; this report, prepared in accordance with Appendix 20 of the GEM Listing Rules, covers key operational performance in Hong Kong from April 1, 2021, to March 31, 2022 - The Group primarily engages in the sale of diesel and related products in Hong Kong, integrating sustainability into its business strategy[265](index=265&type=chunk)[268](index=268&type=chunk) - This report is prepared in accordance with Appendix **20** of the GEM Listing Rules, 'Environmental, Social and Governance Reporting Guide,' covering key operational performance in Hong Kong from April 1, 2021, to March 31, 2022[272](index=272&type=chunk)[275](index=275&type=chunk) - The Board has overall responsibility for the Group's ESG strategy and reporting, and for assessing and determining ESG-related risks[273](index=273&type=chunk)[275](index=275&type=chunk) [About the Company](index=47&type=section&id=ABOUT%20THE%20COMPANY) The Group listed on GEM of the Stock Exchange in 2019, primarily engaged in selling and transporting diesel and related products in Hong Kong; its competitive advantages lie in delivery capability and flexible delivery schedules, aiming to be a leading diesel supplier in Hong Kong's logistics industry - The Group listed on GEM of the Stock Exchange in **2019** (Stock Code: **8631**), with its principal business being the sale and transportation of diesel and related products in Hong Kong[286](index=286&type=chunk)[288](index=288&type=chunk) - The Group's delivery capability and flexibility in offering diverse delivery schedules to customers are its competitive advantages in the industry[286](index=286&type=chunk)[288](index=288&type=chunk) - The goal is to become a leading diesel provider focused on the Hong Kong logistics industry[287](index=287&type=chunk)[289](index=289&type=chunk) [Board Statement](index=48&type=section&id=BOARD%20STATEMENT_ESG) The Board understands the importance of ESG governance for corporate sustainability and has established an ESG management framework; it primarily oversees ESG governance, including appointing key personnel, approving strategies and targets, monitoring progress, and reviewing annual ESG reports, while management and functional departments handle specific implementation and reporting - The Board is primarily responsible for overseeing the Group's environmental, social, and governance matters, such as determining the Group's ESG approach, managing ESG-related risks, and supervising management and relevant departments in formulating policies and appropriate measures[293](index=293&type=chunk)[295](index=295&type=chunk) - The Board is responsible for appointing key personnel, approving ESG strategies, action plans and targets, approving resources, monitoring progress and performance, and reviewing and approving the annual ESG report[296](index=296&type=chunk)[297](index=297&type=chunk) - Management is responsible for identifying and assessing ESG risks and opportunities, formulating strategies and plans, ensuring risk management systems are in place, and reporting to the Board[301](index=301&type=chunk)[305](index=305&type=chunk) - Functional departments are responsible for coordinating and implementing specific policies, reporting regularly to management, collecting data, and preparing the annual ESG report[302](index=302&type=chunk)[305](index=305&type=chunk) [Stakeholder Engagement](index=50&type=section&id=PARTICIPATION%20OF%20STAKEHOLDERS) The Group actively engages with stakeholders, including the HKEX, government, suppliers, shareholders/investors, media and public, customers, employees, communities, and industry associations, to understand their concerns and ensure continuous business success and improvement - The Group actively strives to better understand and engage with stakeholders to ensure continuous improvement[307](index=307&type=chunk) - Stakeholders include the Hong Kong Stock Exchange, government, suppliers, shareholders/investors, media and public, customers, employees, communities, and industry associations[308](index=308&type=chunk)[309](index=309&type=chunk) - Communication methods include meetings, training, site visits, financial reports, website updates, and community activities[308](index=308&type=chunk)[309](index=309&type=chunk) [Materiality Assessment](index=52&type=section&id=MATERIALITY%20ASSESSMENT) The Group identified its most material ESG issues through surveys of internal and external stakeholders, with compliance with environmental laws, COVID-19 response, service quality, operational compliance, and anti-corruption being the top five, highlighting the Group's focus on environmental, social responsibility, and operational standards - The Group has conducted a materiality assessment involving surveys of internal and external stakeholders, including management, employees, customers, suppliers, industry associations, community organisations, and investors[311](index=311&type=chunk)[312](index=312&type=chunk) - The **five** most material ESG issues are: compliance with environmental laws and regulations, combating the COVID-19 pandemic, service quality, operational compliance, and anti-corruption[315](index=315&type=chunk)[317](index=317&type=chunk) - The Group will continue to communicate with stakeholders, collecting opinions more broadly through various channels for materiality analysis[316](index=316&type=chunk)[317](index=317&type=chunk) [Section A: Environmental](index=55&type=section&id=SECTION%20A:%20ENVIRONMENTAL) The Group is committed to environmental sustainability, integrating eco-friendly practices into operations; no significant environmental non-compliance was found during the reporting period; measures like optimising fleet routes, procuring energy-efficient products, and promoting 3R principles aim to reduce atmospheric and greenhouse gas emissions, water, and paper consumption; the Group acknowledges climate change's physical and transition risks, planning new business strategies to address them [A1 Emissions](index=55&type=section&id=A1%20Emissions) The Group is committed to reducing atmospheric pollutants and greenhouse gas emissions; during the reporting period, total atmospheric and greenhouse gas emissions significantly decreased, primarily due to COVID-19's impact on diesel demand in logistics and construction; the Group controls emissions through route optimisation, energy-efficient product procurement, and 3R principles - Diesel consumption by vehicles is the Group's primary source of atmospheric pollutant emissions, including nitrogen oxides (NOx), sulphur oxides (SOx), and particulate matter (PM)[325](index=325&type=chunk)[327](index=327&type=chunk) Atmospheric Emissions Overview | Metric | FY2022 | FY2021 | Change Rate | Original Chunk Ref | | :--- | :--- | :--- | :--- | :--- | | Total Atmospheric Emissions | 1,288 kg | 1,604 kg | ↓20% | [329, 331] | | Atmospheric Emissions Intensity (per vehicle) | 90 kg | 100 kg | ↓10% | [329, 331] | | Nitrogen Oxides (NOx) | 1,199.81 kg | 1,484.16 kg | ↓19.16% | [85, 487] | | Sulphur Oxides (SOx) | 1.26 kg | 2.01 kg | ↓37.26% | [85, 487] | | Particulate Matter (PM) | 86.83 kg | 117.74 kg | ↓26.26% | [85, 487] | Greenhouse Gas Emissions Overview | Metric | FY2022 (tonnes) | FY2021 (tonnes) | Change Rate | Original Chunk Ref | | :--- | :--- | :--- | :--- | | Total GHG Emissions | 213 | 338 | ↓37% | [336, 338] | | GHG Emissions Intensity (per vehicle) | 15 | 21 | ↓29% | [336, 338] | | Scope 1 (Direct Emissions) | 207.97 | 333.50 | ↓38% | [345] | | Scope 2 (Indirect Emissions from Electricity Consumption) | 4.18 | 3.735 | ↑12% | [345] | | Scope 3 (Other Indirect Emissions) | 0.63 | 0.44 | ↑43% | [345] | - Scope **1** greenhouse gas emissions decreased by **38%**, mainly due to the COVID-19 pandemic's impact on diesel demand in the logistics industry and for construction site machinery[347](index=347&type=chunk)[351](index=351&type=chunk) - Scope **2** and Scope **3** emissions increased, primarily because employees resumed normal working hours as the pandemic eased, leading to increased paper and electricity consumption[348](index=348&type=chunk)[351](index=351&type=chunk) - The Group's non-hazardous waste primarily consists of waste paper; during the reporting period, both waste paper generation and density increased, mainly due to employees resuming normal working hours after the pandemic subsided[360](index=360&type=chunk)[361](index=361&type=chunk)[363](index=363&type=chunk)[365](index=365&type=chunk) [A2 Use of Resources](index=63&type=section&id=A2%20Use%20of%20Resources) The Group is committed to being an environmentally friendly and sustainable enterprise, reducing energy, water, and paper consumption through energy-efficient equipment and 3R principles; during the reporting period, energy and water consumption increased, mainly due to employees returning to normal working hours as the pandemic eased; the Group will continue to monitor and strive to reduce resource consumption - The Group is committed to being an environmentally friendly and sustainable enterprise, having implemented a series of measures in its daily operations to reduce carbon emissions[368](index=368&type=chunk)[370](index=370&type=chunk) Energy Consumption Overview | Metric | FY2022 | FY2021 | Change Rate | Original Chunk Ref | | :--- | :--- | :--- | :--- | :--- | | Total Energy Consumption (kWh) | 10,719 | 10,092 | ↑6% | [369, 371] | | Energy Consumption Intensity (kWh/employee) | 491 | 381 | ↑29% | [369, 371] | - Increased energy consumption was mainly due to the slowing spread of COVID-19 in Hong Kong, with employees resuming normal working hours at headquarters[369](index=369&type=chunk)[371](index=371&type=chunk) Water Consumption Overview | Metric | FY2022 | FY2021 | Change Rate | Original Chunk Ref | | :--- | :--- | :--- | :--- | :--- | | Total Water Consumption (m³) | 46 | 35 | ↑31% | [375, 378, 381] | | Water Consumption Intensity (m³/employee) | 2 | 1 | ↑100% | [375, 378] | - Increased water consumption was mainly due to the slowing spread of COVID-19 in Hong Kong, with employees resuming normal working hours at headquarters[381](index=381&type=chunk)[384](index=384&type=chunk) - The Group's core business involves selling diesel, and no significant use of packaging materials was identified during the reporting period[387](index=387&type=chunk)[390](index=390&type=chunk) [A3 The Environment and Natural Resources](index=67&type=section&id=A3%20The%20Environment%20and%20Natural%20Resources) The Group believes business development should not compromise the environment, implementing various environmental protection measures; no significant environmental non-compliance was found during the reporting period, and future plans include investing more resources to upgrade equipment, reduce carbon footprint, and continuously monitor resource usage - The Group believes that business development should not come at the expense of the environment and has implemented various environmental protection measures[388](index=388&type=chunk)[391](index=391&type=chunk) - During the reporting period, no material non-compliance with relevant laws and regulations was identified[389](index=389&type=chunk)[391](index=391&type=chunk) - Future plans include investing more resources to upgrade equipment and existing vehicles to meet Hong Kong environmental standards and reduce carbon footprint[388](index=388&type=chunk)[391](index=391&type=chunk) [A4 Climate Change](index=68&type=section&id=A4%20Climate%20Change) The Group recognises climate change threats, integrating them into decision-making and strategic planning; physical risks include extreme weather impacting employee safety and logistics, while transition risks, such as government green transport policies phasing out diesel commercial vehicles, could increase operating costs and reduce diesel demand, threatening long-term financial performance; the Group will optimise its business model and promote green business to address these challenges - The Group deeply understands the current threat of climate change and integrates it into its decision-making process and strategic business planning[394](index=394&type=chunk)[396](index=396&type=chunk) - Physical risks include more frequent and intense adverse weather events (e.g., extreme precipitation and tropical cyclones), which could endanger employee safety and disrupt logistics[395](index=395&type=chunk)[396](index=396&type=chunk) - Long-term temperature changes could lead to water scarcity and flooding, affecting upstream diesel supply and consequently increasing procurement costs[398](index=398&type=chunk)[400](index=400&type=chunk) - The government's 'Hong Kong Climate Action Plan 2050' and 'Hong Kong Roadmap on Popularisation of Electric Vehicles' will gradually phase out diesel commercial vehicles, which is expected to increase the Group's vehicle replacement costs and reduce diesel demand, posing a significant threat to the Group's long-term financial performance[399](index=399&type=chunk)[401](index=401&type=chunk) - The Group will formulate new long-term and short-term business strategies and review its existing ones to mitigate physical and transition risks as much as possible[403](index=403&type=chunk)[405](index=405&type=chunk) [Section B: Social – Employment and Labour Practices](index=70&type=section&id=SECTION%20B:%20SOCIAL%20–%20EMPLOYMENT%20AND%20LABOUR%20PRACTICES) - Employees are the foundation of the Group's success, and the Group equally values the contributions and dedication of all its employees[404](index=404&type=chunk)[406](index=406&type=chunk) - The Group strives to create a harmonious and inclusive work environment, protecting employees from any harassment and discrimination[413](index=413&type=chunk)[417](index=417&type=chunk) - The Group highly values human rights and strictly complies with all labour laws and regulations prohibiting child and forced labour[451](index=451&type=chunk)[454](index=454&type=chunk) [B1 Employment](index=70&type=section&id=B1%20Employment) As of March 31, 2022, the Group had **23** employees, all from Hong Kong, committed to equal opportunity and diversity regardless of age, gender, or marital status; comprehensive benefits include year-end bonuses, MPF contributions, and additional medical insurance; annual employee assessments drive performance, and a **1.26%** average monthly turnover rate indicates good talent retention Employee Composition (as at March 31, 2022) | Metric | Quantity/Ratio | | :--- | :--- | | Total Employees | 23 | | Gender Composition | Male 78%, Female 22% | | Age Group | Age 18-25 0%, 26-35 30%, 36-45 22%, 46-55 22%, 56-66 26% | | Employment Type | Full-time 100% | | Length of Service | Less than 1 year 11%, 1-3 years 39%, 3-5 years 22%, 5-10 years 22%, More than 10 years 17% | - The Group highly values providing equal opportunities and diversity for all employees, recruiting regardless of age, gender, marital status, etc[413](index=413&type=chunk)[414](index=414&type=chunk)[417](index=417&type=chunk) - Comprehensive compensation and benefits are provided, including year-end bonuses, MPF contributions, and additional medical insurance[420](index=420&type=chunk)[422](index=422&type=chunk) - Annual employee assessments, considering factors like teamwork, job responsibilities, attitude, punctuality, capability, work quality, and efficiency, are used for promotion, salary adjustments, and bonuses[421](index=421&type=chunk)[422](index=422&type=chunk) Employee Turnover Rate (for the year ended March 31, 2022) | Metric | Average Monthly Turnover Rate | | :--- | :--- | | Overall | 1.26% | | Male | 1.19% | | Female | 1.19% | | 26-35 Age Group | 0.39% | | 36-45 Age Group | 3.16% | | 18-25, 46-55, 56-65 Age Group | 0% | [B2 Health and Safety](index=76&type=section&id=B2%20Health%20and%20Safety) The Group is committed to safeguarding all employees' safety, health, and welfare, exceeding minimum legal occupational health and safety standards; all oil tankers and tractors are registered, equipped with fire safety gear, and drivers receive safety training; employee compensation and additional medical insurance are provided; no work-related injuries or fatalities were reported; in response to COVID-19, the Group implemented various preventive measures, including temperature checks, disinfection, and rapid antigen test kit provision - The Group is committed to safeguarding the safety, health, and welfare of all employees, striving for occupational health and safety standards higher than the minimum legal requirements[433](index=433&type=chunk)[435](index=435&type=chunk) - All oil tankers and tractors are registered with relevant authorities, equipped with fire-fighting equipment and flammable material labels, and undergo regular inspection and maintenance[434](index=434&type=chunk)[435](index=435&type=chunk) - All drivers are required to attend safety training courses organised by Sinopec, and are provided with safety manuals and industrial safety policies[437](index=437&type=chunk)[440](index=440&type=chunk) - The Group provides employee compensation insurance to all its employees, covering work-related injuries and other medical needs, and offers additional medical insurance[438](index=438&type=chunk)[440](index=440&type=chunk) - During the reporting period, the Group reported no work-related injuries or fatalities[439](index=439&type=chunk)[440](index=440&type=chunk) - In response to the COVID-19 pandemic, the Group implemented various preventive measures, including social distancing, personal hygiene, temperature checks, disinfection, and procuring rapid antigen test kits for employees[442](index=442&type=chunk)[44