优越集团控股(01841) - 2022 - 中期财报

Company Information This section provides fundamental corporate information for Superior Group Holdings Limited, including board members, auditors, and key governance details - The Board of Directors includes Executive Directors Mr. Lam Kim Wan (Chairman) and Mr. Fong Wing Kwong (Chief Executive Officer), and Independent Non-executive Directors Mr. Yu Ming Wai, Ms. Sze Tak On, and Mr. Leung Siu Hong[4] - The company's auditor is Shinewing (HK) CPA Limited, and the Hong Kong share registrar is Tricor Investor Services Limited[4] - The company has established an Audit Committee, Remuneration Committee, and Nomination Committee to enhance corporate governance[4] Management Discussion and Analysis This section outlines Superior Group Holdings Limited's operating results and financial position for the six months ended September 30, 2021, noting decreased revenue and profit due to reduced government subsidies, alongside strategic initiatives and a proposed interim dividend Business Review For the six months ended September 30, 2021, group revenue decreased by approximately 4.8% year-on-year, primarily due to declines in performance announcements and financial reports, and corporate announcements and shareholder circulars, partially offset by an increase in debt circulars and IPO prospectuses - Group revenue decreased by approximately 4.8% year-on-year[7] Segment Revenue Changes (HKD Thousands) | Segment | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | Change | | :----------------------------- | :-------------------------- | :-------------------------- | :----- | | Performance Announcements and Financial Reports | 36,300 | 42,900 | (6,600) | | Corporate Announcements and Shareholder Circulars | 18,300 | 19,700 | (1,400) | | Debt Circulars and IPO Prospectuses | 12,700 | 8,000 | 4,700 | Outlook The group anticipates continued uncertainty in the global economy and Hong Kong financial markets but is actively responding by expanding office space by approximately 40% to enhance client experience and rebranding to "Superior International Corporate Services Limited" to explore new opportunities, particularly in IPO projects - The global economy and Hong Kong financial markets are expected to remain shrouded in various uncertainties stemming from the COVID-19 pandemic and industry-specific factors[8] - The group capitalized on lower rental costs to lease additional office space, expanding its total office area by approximately 40% to provide more meeting rooms and establish a newly renovated headquarters, enhancing client experience[8] - Superior International Financial Printing Limited has been renamed Superior International Corporate Services Limited to explore new opportunities, with a particular focus on initial public offering projects[8] Financial Review The group's financial performance declined overall this period, with reduced revenue, cost of services, and gross profit; profit for the period significantly decreased by 28.1% due to the absence of prior-period government subsidies, while administrative expenses rose from increased depreciation of machinery and equipment Key Financial Metrics Changes (HKD Thousands) | Metric | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | Change Rate | | :------------------- | :-------------------------- | :-------------------------- | :------- | | Revenue | 70,500 | 74,100 | (4.8%) | | Cost of Services | 34,000 | 35,800 | (4.9%) | | Gross Profit | 36,500 | 38,300 | (4.7%) | | Other Income | 2,400 | 7,400 | (67.6%) | | Selling and Distribution Expenses | 7,300 | 7,600 | (3.9%) | | Administrative Expenses | 14,100 | 13,000 | 8.5% | | Profit for the Period | 13,600 | 19,000 | (28.1%) | - Other income significantly decreased, primarily due to the absence of approximately HKD 5.2 million in government subsidies from the Employment Support Scheme received in the prior period[14] - Administrative expenses increased by approximately HKD 1.3 million, mainly due to higher depreciation of machinery and equipment[16] Liquidity, Financial Resources, and Capital Structure The group maintains a sound financial position with stable gearing, though net current assets and cash and cash equivalents decreased; the group has no borrowings and plans to fund future operations from cash generated by business operations Liquidity Metrics | Metric | As at September 30, 2021 | As at March 31, 2021 | | :------------------- | :-------------- | :-------------- | | Gearing Ratio | 6.7% | 6.6% | | Net Current Assets | HKD 97,400,000 | HKD 131,500,000 | | Cash and Cash Equivalents | HKD 95,600,000 | HKD 132,500,000 | - The group had no borrowings, bank overdrafts, bank loans, or bank facilities at the end of the reporting period[23] - The group intends to fund its future operations, capital expenditures, and other capital needs with cash generated from business operations and available cash and bank balances[23] Employees and Remuneration Policy As of September 30, 2021, the group employed 91 full-time employees, with a slight decrease in employee costs, emphasizing talent retention and performance-based remuneration - As of September 30, 2021, the group employed 91 full-time employees (September 30, 2020: 95 employees)[23] - Employee costs (including directors' emoluments) for the reporting period were approximately HKD 23.8 million (corresponding period in 2020: approximately HKD 25.2 million)[23] - Remuneration policy considers group performance, individual employee performance, and prevailing market levels[23] Significant Investments / Acquisitions and Disposals For the six months ended September 30, 2021, the group made no significant investments or material acquisitions and disposals - The group made no significant investments or material acquisitions and disposals during the six months ended September 30, 2021[25] Pledge of Assets As of September 30, 2021, and September 30, 2020, the group had not pledged any of its assets - As of September 30, 2021, and September 30, 2020, the group had not pledged any of its assets[26] Future Plans for Material Investments or Capital Assets As of September 30, 2021, the group had no specific plans for material investments or capital assets - As of September 30, 2021, there were no specific plans for material investments or capital assets[27] Contingent Liabilities As of September 30, 2021, and September 30, 2020, the group had no significant contingent liabilities - As of September 30, 2021, and September 30, 2020, the group had no significant contingent liabilities[28] Dividends The Board recommends an interim dividend of 2.5 HK cents per share for the six months ended September 30, 2021, totaling HKD 10 million, payable by January 14, 2022, with share transfer registration suspended from December 14 to 17, 2021 - The Board recommends an interim dividend of 2.5 HK cents per share for the six months ended September 30, 2021 (six months ended September 30, 2020: nil), amounting to HKD 10 million[31] - The interim dividend is expected to be paid on or before Friday, January 14, 2022[31] - To ascertain the entitlement to the proposed interim dividend, the company will suspend share transfer registration from Tuesday, December 14, 2021, to Friday, December 17, 2021[32] Foreign Exchange Risk Given that the group's business activities are conducted solely in Hong Kong and primarily denominated in Hong Kong Dollars, the directors consider the group's foreign exchange risk to be insignificant - The group's business activities are conducted solely in Hong Kong and primarily denominated in Hong Kong Dollars, thus the directors consider the group's foreign exchange risk to be insignificant[33] Events After Reporting Period There were no significant events concerning the group after the end of the reporting period of this report - There were no significant events concerning the group after the end of the reporting period of this report[34] Acknowledgements The group extends its sincere gratitude to its clients, business partners, shareholders, and all employees for their continuous support, trust, loyal contributions, and hard work - The group takes this opportunity to express its sincere gratitude to its clients, business partners, and shareholders for their continuous support and trust[35] - The group also sincerely thanks all employees for their loyal contributions and hard work during the period[35] Other Information This section discloses corporate governance-related information for Superior Group Holdings Limited, including directors' and substantial shareholders' equity interests, share option scheme, share dealings, compliance with corporate governance code, updates on directors' information, and the audit committee's operations, confirming compliance with listing rules and maintaining sufficient public float Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations As of September 30, 2021, Executive Directors Mr. Lam Kim Wan and Mr. Fong Wing Kwong each held a 29.1% long position in the company's shares through controlled corporations, while Independent Non-executive Director Mr. Yu Ming Wai held a 0.1% beneficial interest, with no other equity derivatives or short positions held by directors or the chief executive Directors' Long Positions in Company Shares | Director's Name | Long/Short Position | Capacity | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :----------- | :------- | :--------------- | :--------------- | :----------------------- | | Mr. Lam Kim Wan | Long Position | Interest in controlled corporation | 116,580,000 | 29.1% | | Mr. Fong Wing Kwong | Long Position | Interest in controlled corporation | 116,580,000 | 29.1% | | Mr. Yu Ming Wai | Long Position | Beneficial interest | 580,000 | 0.1% | - Mr. Lam Kim Wan and Mr. Fong Wing Kwong each hold share interests through their wholly-owned Brilliant Ray Global Limited and Long Peak Holdings Limited, respectively[39][40] - As of September 30, 2021, no director or chief executive of the company held any interests in underlying shares of the company or its associated corporations, whether in physical settlement, cash settlement, or other equity derivatives[40] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company As of September 30, 2021, Brilliant Ray Global Limited and Long Peak Holdings Limited each held a 29.1% long position in the company's shares, Wise Reward Enterprises Limited held 6.0%, and Long Style Investments Limited and its associates (including New Work Investments Limited, United Asia Finance Limited, and Lee Sing Fai, Lee Suk Wai, Lee Sing Hwong) collectively held a 5.4% long position Substantial Shareholders' Long Positions in Company Shares | Name | Long/Short Position | Capacity | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :----------------------------- | :------- | :--------------- | :--------------- | :----------------------- | | Brilliant Ray Global Limited | Long Position | Beneficial owner | 116,580,000 | 29.1% | | Long Peak Holdings Limited | Long Position | Beneficial owner | 116,580,000 | 29.1% | | Wise Reward Enterprises Limited | Long Position | Beneficial owner | 24,000,000 | 6.0% | | Mr. Lam Man Yiu | Long Position | Interest in controlled corporation | 24,000,000 | 6.0% | | Long Style Investments Limited | Long Position | Beneficial owner | 21,630,000 | 5.4% | | New Work Investments Limited | Long Position | Interest in controlled corporation | 21,630,000 | 5.4% | | United Asia Finance Limited | Long Position | Interest in controlled corporation | 21,630,000 | 5.4% | | Mr. Lee Sing Hwong | Long Position | Interest in controlled corporation | 21,630,000 | 5.4% | | Mr. Lee Sing Fai | Long Position | Interest in controlled corporation | 21,630,000 | 5.4% | | Ms. Lee Suk Wai | Long Position | Interest in controlled corporation | 21,630,000 | 5.4% | - Brilliant Ray is wholly-owned by Mr. Lam Kim Wan, Long Peak by Mr. Fong Wing Kwong, and Wise Reward Enterprises Limited by Mr. Lam Man Yiu[41][42][43] - Long Style Investments Limited is wholly-owned by New Work Investments Limited, which is controlled by United Asia Finance Limited, whose ultimate controlling shareholders are the trustees of the Lee and Lee Trust (Lee Sing Fai, Lee Suk Wai, and Lee Sing Hwong)[43] Share Option Scheme The company adopted a share option scheme on March 23, 2016, but no share options were granted or remained outstanding during the six months ended September 30, 2021; under the scheme, the company may issue up to 40 million shares, representing 10% of the existing issued share capital - The company conditionally adopted a share option scheme on March 23, 2016[45] - No share options were granted during the six months ended September 30, 2021, and no share options remained outstanding as of September 30, 2021[45] - As of September 30, 2021, the company could issue 40 million shares under the scheme, representing 10% of the company's existing issued share capital as of the date of this report[45] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended September 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended September 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[46] Pre-emptive Rights The company's articles of association do not contain provisions for pre-emptive rights, and Cayman Islands law does not impose restrictions on such rights - The company's articles of association do not contain provisions for pre-emptive rights, and Cayman Islands law does not impose restrictions on such rights[47] Corporate Governance The company has adopted and complied with the Corporate Governance Code set out in Appendix 14 of the Listing Rules, and has consistently adhered to it throughout the six months ended September 30, 2021 - The company has adopted the code provisions set out in the Corporate Governance Code in Appendix 14 of the Listing Rules as its own corporate governance code[48] - For the six months ended September 30, 2021, the company has consistently complied with the code provisions set out in the Corporate Governance Code[48] Directors' and Controlling Shareholders' Interests in Competing Business For the six months ended September 30, 2021, no director, controlling shareholder of the company, or their respective close associates had any interest in a business that competes or is likely to compete with the group's business - For the six months ended September 30, 2021, no director, controlling shareholder of the company, or their respective close associates had any interest in a business that competes or is likely to compete with the group's business[51] Directors' Securities Transactions The company has adopted the Model Code as its code of conduct for directors' securities transactions, and all directors confirmed compliance during the reporting period; the company also applies the same standards to employees who may possess unpublished inside information - The company has adopted the Model Code as its own code of conduct governing directors' securities transactions[52] - Following specific enquiries, all directors confirmed their compliance with the required standards set out in the Model Code for the six months ended September 30, 2021[52] - The company has adopted the same standards for securities transactions for employees who may possess unpublished inside information of the company or its securities, and for directors or employees of its subsidiaries[53] Update on Directors' Information In accordance with Rule 13.51B(1) of the Listing Rules, Mr. Yu Ming Wai resigned as an executive director of Feishang Anthracite Resources Limited (stock code: 1738) on September 27, 2021 - Mr. Yu Ming Wai resigned as an executive director of Feishang Anthracite Resources Limited (stock code: 1738), a company listed on the Stock Exchange, on September 27, 2021[50] Sufficiency of Public Float Based on publicly available information and to the best of the directors' knowledge, the company maintained a sufficient public float of at least 25% of its issued shares as required by the Listing Rules throughout the six months ended September 30, 2021 - Throughout the six months ended September 30, 2021, the company maintained a sufficient public float of at least 25% of its issued shares as required by the Listing Rules[54] Audit Committee The company's Audit Committee, established on March 23, 2016, comprises three independent non-executive directors and has reviewed the group's unaudited condensed consolidated interim financial statements for the six months ended September 30, 2021 - The company's Audit Committee was established on March 23, 2016, with written terms of reference complying with the Listing Rules and the Corporate Governance Code[55] - The Audit Committee comprises three independent non-executive directors[55] - The Audit Committee has reviewed the group's unaudited condensed consolidated interim financial statements for the six months ended September 30, 2021[55] Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended September 30, 2021, Superior Group Holdings Limited's revenue, gross profit, and profit for the period all decreased year-on-year; revenue fell by 4.8%, gross profit by 4.7%, and profit and total comprehensive income attributable to owners of the company significantly decreased by 28.1%, primarily due to reduced government subsidies in other income, with basic and diluted earnings per share declining accordingly Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD Thousands) | Metric | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | Change Rate | | :------------------------------------------------- | :-------------------------- | :-------------------------- | :------- | | Revenue | 70,491 | 74,051 | (4.8%) | | Cost of Services | (34,018) | (35,781) | (4.9%) | | Gross Profit | 36,473 | 38,270 | (4.7%) | | Other Income | 2,394 | 7,424 | (67.8%) | | Selling and Distribution Expenses | (7,270) | (7,605) | (4.4%) | | Administrative Expenses | (14,102) | (12,953) | 8.9% | | Impairment Loss on Trade Receivables | (1,466) | (2,402) | (39.0%) | | Finance Costs | (158) | (37) | 327.0% | | Profit Before Tax | 15,871 | 22,697 | (30.1%) | | Income Tax Expense | (2,242) | (3,728) | (39.9%) | | Profit and Total Comprehensive Income Attributable to Owners of the Company | 13,629 | 18,969 | (28.1%) | | Earnings Per Share (HK cents) – Basic and Diluted | 3.41 | 4.74 | (28.1%) | - The decrease in profit for the period was primarily due to the absence of government subsidies received in the period ended September 30, 2020, under the Employment Support Scheme for job retention and combating COVID-19[58] Unaudited Condensed Consolidated Statement of Financial Position As of September 30, 2021, Superior Group Holdings Limited's total assets, net current assets, and net assets all decreased compared to March 31, 2021; contract assets and bank balances significantly declined within current assets, while trade and other receivables increased, and non-current assets saw reductions in machinery and equipment and right-of-use assets Summary of Condensed Consolidated Statement of Financial Position (HKD Thousands) | Metric | As at September 30, 2021 (Unaudited) | As at March 31, 2021 (Audited) | Change | | :----------------------------- | :-------------------------- | :-------------------------- | :----- | | Non-current Assets | | | | | Property, Plant and Equipment | 10,784 | 13,159 | (2,375) | | Right-of-Use Assets | 7,781 | 9,904 | (2,123) | | Goodwill | 11,423 | 11,423 | 0 | | Lease Deposits | 1,462 | 1,462 | 0 | | Total Non-current Assets | 31,450 | 35,948 | (4,498) | | Current Assets | | | | | Contract Assets | 1,312 | 15,426 | (14,114) | | Trade and Other Receivables | 35,651 | 22,618 | 13,033 | | Income Tax Recoverable | 195 | 1,175 | (980) | | Bank Balances | 95,550 | 132,493 | (36,943) | | Total Current Assets | 132,708 | 171,712 | (39,004) | | Current Liabilities | | | | | Trade and Other Payables | 25,993 | 27,560 | (1,567) | | Contract Liabilities | 4,860 | 8,252 | (3,392) | | Lease Liabilities | 4,457 | 4,354 | 103 | | Income Tax Payable | – | 18 | (18) | | Total Current Liabilities | 35,310 | 40,184 | (4,874) | | Net Current Assets | 97,398 | 131,528 | (34,130) | | Total Assets Less Current Liabilities | 128,848 | 167,476 | (38,628) | | Non-current Liabilities | | | | | Lease Liabilities | 4,043 | 6,300 | (2,257) | | Deferred Tax Liabilities | 241 | 241 | 0 | | Total Non-current Liabilities | 4,284 | 6,541 | (2,257) | | Net Assets | 124,564 | 160,935 | (36,371) | | Capital and Reserves | | | | | Share Capital | 4,000 | 4,000 | 0 | | Reserves | 120,564 | 156,935 | (36,371) | | Total Equity | 124,564 | 160,935 | (36,371) | - Net current assets decreased from approximately HKD 131.5 million to approximately HKD 97.4 million[60] - Bank balances decreased from approximately HKD 132.5 million to approximately HKD 95.6 million[60] Unaudited Condensed Consolidated Statement of Changes in Equity For the six months ended September 30, 2021, Superior Group Holdings Limited's total equity decreased from HKD 160.935 million at the beginning of the period to HKD 124.564 million, primarily due to the declaration and payment of a HKD 50 million dividend for the year ended March 31, 2021, partially offset by profit for the period of HKD 13.629 million Summary of Condensed Consolidated Statement of Changes in Equity (HKD Thousands) | Item | Share Capital | Share Premium | Other Reserves | Retained Profits | Total | | :-------------------------------------------------------- | :----- | :------- | :------- | :------- | :------- | | As at April 1, 2021 (Audited) | 4,000 | 35,954 | (1) | 120,982 | 160,935 | | Profit and Total Comprehensive Income for the Period | – | – | – | 13,629 | 13,629 | | Dividend Declared and Paid for the Year Ended March 31, 2021 | – | – | – | (50,000) | (50,000) | | As at September 30, 2021 (Unaudited) | 4,000 | 35,954 | (1) | 84,611 | 124,564 | | As at April 1, 2020 (Audited) | 4,000 | 35,954 | (1) | 93,399 | 133,352 | | Profit and Total Comprehensive Income for the Period | – | – | – | 18,969 | 18,969 | | As at September 30, 2020 (Unaudited) | 4,000 | 35,954 | (1) | 112,368 | 152,321 | - The decrease in total equity was primarily due to the declaration and payment of a HKD 50 million dividend for the year ended March 31, 2021[63] Unaudited Condensed Consolidated Statement of Cash Flows For the six months ended September 30, 2021, Superior Group Holdings Limited's cash and cash equivalents saw a net decrease of HKD 36.943 million, mainly attributable to a significant increase in net cash used in financing activities (primarily dividend payments) and a decrease in net cash generated from operating activities Summary of Condensed Consolidated Statement of Cash Flows (HKD Thousands) | Item | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | | :--------------------------------- | :-------------------------- | :-------------------------- | | Net Cash Generated from Operating Activities | 13,222 | 26,211 | | Net Cash (Used in) Generated from Investing Activities | (7) | 308 | | Net Cash Used in Financing Activities | (50,158) | (37) | | Net (Decrease) Increase in Cash and Cash Equivalents | (36,943) | 26,482 | | Cash and Cash Equivalents at April 1 | 132,493 | 105,214 | | Cash and Cash Equivalents at September 30 | 95,550 | 131,696 | - Net cash used in financing activities significantly increased to HKD 50.158 million, primarily due to dividend payments[66] - Net cash generated from operating activities decreased from HKD 26.211 million to HKD 13.222 million[66] Notes to the Unaudited Condensed Consolidated Interim Financial Statements This section provides detailed notes to Superior Group Holdings Limited's unaudited condensed consolidated interim financial statements, covering company information, basis of preparation, accounting policy changes, revenue analysis, segment information, other income, finance costs, income tax expense, profit for the period, dividends, earnings per share, property, plant and equipment acquisitions, trade and other receivables and payables, share capital structure, and related party transactions 1. Company Information Superior Group Holdings Limited was incorporated in the Cayman Islands as an exempted company on April 20, 2015, operating as an investment holding company with its principal operating subsidiary engaged in financial printing services, and its ultimate holding company being Brilliant Ray Global Limited - The company was incorporated as an exempted company in the Cayman Islands on April 20, 2015[72] - The company is an investment holding company, and its principal operating subsidiary is engaged in providing financial printing services[73] - Its parent company and ultimate holding company is Brilliant Ray Global Limited[72] 2. Basis of Preparation The condensed consolidated financial statements are presented in Hong Kong Dollars, prepared on a historical cost basis, and comply with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and applicable disclosure provisions of the Listing Rules; these statements are unaudited but have been reviewed by the Audit Committee - The unaudited condensed consolidated financial statements are presented in Hong Kong Dollars, which is the group's functional currency[74] - The condensed consolidated financial statements are prepared on a historical cost basis and in accordance with Hong Kong Financial Reporting Standards and Hong Kong Generally Accepted Accounting Principles issued by the Hong Kong Institute of Certified Public Accountants[75] - The condensed consolidated financial statements have not been audited by the company's independent auditor but have been reviewed by the Audit Committee[76] 3. Changes in Accounting Policies During this interim period, the group first applied amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, including those related to Covid-19-related rent concessions and Phase 2 of interest rate benchmark reform, which had no significant impact on the group's financial position or performance - The group has first applied the amendments to the Conceptual Framework for Financial Reporting and the following revised Hong Kong Financial Reporting Standards, issued by the Hong Kong Institute of Certified Public Accountants, which are mandatorily effective for annual periods beginning on or after April 1, 2021[78] - The application of the revised Hong Kong Financial Reporting Standards had no significant impact on the group's financial position and performance for the current and prior periods and/or the disclosures contained in these condensed consolidated financial statements[78] 4. Revenue The group's revenue primarily derives from providing financial printing services in Hong Kong, totaling HKD 70.491 million for the six months ended September 30, 2021, a decrease from HKD 74.051 million in the prior year, though revenue from debt circulars and IPO prospectuses increased - Revenue refers to revenue generated from providing financial printing services in Hong Kong[79] Revenue by Segment (HKD Thousands) | Segment | 2021 (Unaudited) | 2020 (Unaudited) | | :----------------------------- | :----------------- | :----------------- | | Performance Announcements and Financial Reports | 36,327 | 42,889 | | Corporate Announcements and Shareholder Circulars | 18,298 | 19,702 | | Debt Circulars and IPO Prospectuses | 12,743 | 8,032 | | Fund Documents | 978 | 572 | | Others | 2,145 | 2,856 | | Total | 70,491 | 74,051 | 5. Segment Information In accordance with HKFRS 8, the group is primarily engaged in providing financial printing services, constituting a single reportable and operating segment; all revenue is derived from Hong Kong, and all assets and liabilities are located in Hong Kong, thus no segment or geographical information is presented - The group is primarily engaged in providing financial printing services, which constitutes a single reportable and operating segment[83] - All of the group's revenue is derived from Hong Kong, and its assets and liabilities are all located in Hong Kong, thus no geographical information is presented[83] 6. Other Income Other income significantly decreased from HKD 7.424 million in the prior period to HKD 2.394 million in 2021, primarily due to the absence of approximately HKD 5.223 million in government subsidies received in the prior period, while reversal of impairment loss on trade receivables increased Other Income Details (HKD Thousands) | Item | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | | :----------------------------- | :-------------------------- | :-------------------------- | | Bank Interest Income | 105 | 477 | | Government Subsidies | – | 5,223 | | Others | 77 | 207 | | Reversal of Impairment Loss on Trade Receivables | 2,212 | 1,517 | | Total | 2,394 | 7,424 | - The decrease in other income was primarily due to the absence of approximately HKD 5.2 million in government subsidies received in the period ended September 30, 2020, under the Employment Support Scheme for job retention and combating COVID-19[84] 7. Finance Costs Finance costs increased from HKD 37,000 in the prior period to HKD 158,000 in 2021, entirely attributable to interest on lease liabilities Finance Costs Details (HKD Thousands) | Item | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | | :------------------- | :-------------------------- | :-------------------------- | | Interest on Lease Liabilities | 158 | 37 | 8. Income Tax Expense Income tax expense decreased from HKD 3.728 million in the prior period to HKD 2.242 million in 2021; Hong Kong profits tax is calculated at 8.25% on the first HKD 2 million of assessable profits and 16.5% on the remainder, while the company, incorporated in the Cayman Islands, is exempt from local taxation Income Tax Expense Details (HKD Thousands) | Item | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | | :------------------- | :-------------------------- | :-------------------------- | | Current Tax: Hong Kong Profits Tax | 2,242 | 3,728 | | Deferred Tax | – | – | | Total | 2,242 | 3,728 | - Hong Kong profits tax is calculated at 8.25% on the first HKD 2 million of estimated assessable profits for the period and 16.5% on the remaining assessable profits[87] - The company, being an exempted company incorporated in the Cayman Islands, is not subject to any tax on profit, income, gains, or appreciation by individuals or corporations[88] 9. Profit for the Period Profit for the period is arrived at after deducting various expenses; for the six months ended September 30, 2021, total staff costs (excluding directors' emoluments) decreased, while depreciation of machinery and equipment and right-of-use assets increased Profit for the Period Deductions (HKD Thousands) | Item | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | | :------------------------------------ | :-------------------------- | :-------------------------- | | Salaries, Wages, and Other Benefits | 20,652 | 21,975 | | Contributions to Defined Contribution Retirement Benefit Plans | 689 | 712 | | Total Staff Costs (Excluding Directors' Emoluments) | 21,341 | 22,687 | | Directors' Emoluments | 2,447 | 2,497 | | Depreciation of Property, Plant and Equipment | 2,487 | 1,145 | | Depreciation of Right-of-Use Assets | 2,122 | 1,459 | - Depreciation of machinery and equipment increased by approximately HKD 1.342 million, and depreciation of right-of-use assets increased by approximately HKD 663,000[91] 10. Dividends The Board recommends an interim dividend of 2.5 HK cents per share for the six months ended September 30, 2021; the company paid a final dividend of 12.5 HK cents per share, totaling HKD 50 million, for the year ended March 31, 2021, during the period - The Board recommends an interim dividend of 2.5 HK cents per share for the six months ended September 30, 2021 (six months ended September 30, 2020: nil)[92] Dividends Paid (HKD Thousands) | Item | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | | :------------------------------------------------- | :-------------------------- | :-------------------------- | | Final Dividend Paid for the Year Ended March 31, 2021 of 12.5 HK cents per share | (50,000) | – | 11. Earnings Per Share For the six months ended September 30, 2021, basic and diluted earnings per share attributable to owners of the company were 3.41 HK cents, a decrease from 4.74 HK cents in the prior period; diluted earnings per share are the same as basic earnings per share due to the absence of potentially dilutive ordinary shares outstanding Earnings Per Share Calculation (HKD Thousands/Thousands of Shares) | Item | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | | :------------------------------------ | :-------------------------- | :-------------------------- | | Profit Used for Basic Earnings Per Share Calculation | 13,629 | 18,969 | | Weighted Average Number of Ordinary Shares Used for Basic Earnings Per Share Calculation | 400,000 | 400,000 | | Basic and Diluted Earnings Per Share (HK cents) | 3.41 | 4.74 | - Diluted earnings per share for the six months ended September 30, 2021, and 2020, are the same as basic earnings per share because there were no potentially dilutive ordinary shares outstanding[94] 12. Property, Plant and Equipment During the reporting period, the group's expenditure on acquiring property, plant and equipment was approximately HKD 111,000, a decrease from approximately HKD 169,000 in the prior period - During the reporting period, the group incurred approximately HKD 111,000 (six months ended September 30, 2020: approximately HKD 169,000) on the acquisition of property, plant and equipment[95] 13. Trade and Other Receivables As of September 30, 2021, total trade and other receivables amounted to HKD 35.651 million, an increase from March 31, 2021; trade receivables (net of impairment allowance) increased, with a significant rise in receivables aged between 31 and 180 days, and the group's average credit period granted to customers is 30 days Trade and Other Receivables Details (HKD Thousands) | Item | As at September 30, 2021 (Unaudited) | As at March 31, 2021 (Audited) | | :----------------------------- | :-------------------------- | :-------------------------- | | Trade Receivables | 37,873 | 27,642 | | Less: Impairment Allowance for Trade Receivables | (4,894) | (7,107) | | Net Trade Receivables | 32,979 | 20,535 | | Other Receivables and Deposits | 2,672 | 2,083 | | Total Trade and Other Receivables | 35,651 | 22,618 | Ageing Analysis of Trade Receivables (Net of Impairment Allowance, HKD Thousands) | Ageing | As at September 30, 2021 (Unaudited) | As at March 31, 2021 (Audited) | | :---------------- | :-------------------------- | :-------------------------- | | Within 30 days | 11,951 | 11,017 | | 31 to 60 days | 3,781 | 1,914 | | 61 to 90 days | 5,812 | 1,412 | | 91 to 180 days | 8,295 | 3,226 | | 181 to 365 days | 2,810 | 2,873 | | Over 365 days | 330 | 93 | | Total | 32,979 | 20,535 | - The average credit period granted by the group to its trade customers is 30 days[97] 14. Trade and Other Payables As of September 30, 2021, total trade and other payables amounted to HKD 25.993 million, a decrease from March 31, 2021; trade payables decreased, while accrued bonuses and commissions increased, and the average credit period granted to the group ranges from 30 to 90 days Trade and Other Payables Details (HKD Thousands) | Item | As at September 30, 2021 (Unaudited) | As at March 31, 2021 (Audited) | | :----------------------------- | :-------------------------- | :-------------------------- | | Trade Payables | 13,478 | 16,156 | | Accrued Bonuses and Commissions | 5,398 | 4,512 | | Payables for Acquisition of Property, Plant and Equipment | 2,756 | 2,820 | | Accrued Expenses | 4,361 | 4,072 | | Total Trade and Other Payables | 25,993 | 27,560 | Ageing Analysis of Trade Payables (HKD Thousands) | Ageing | As at September 30, 2021 (Unaudited) | As at March 31, 2021 (Audited) | | :---------------- | :-------------------------- | :-------------------------- | | Within 30 days | 10,067 | 14,947 | | 31 to 60 days | 2,670 | 582 | | 61 to 90 days | 48 | – | | Over 90 days | 693 | 627 | | Total Trade Payables | 13,478 | 16,156 | - The average credit period granted ranges from 30 to 90 days[100] 15. Share Capital As of September 30, 2021, the company's authorized share capital was HKD 80 million, divided into 8 billion ordinary shares of HKD 0.01 each; the issued and fully paid share capital was HKD 4 million, comprising 400 million ordinary shares, all of which rank pari passu in all respects Share Capital Structure | Item | Number of Ordinary Shares | Share Capital (HKD) | | :------------------------------------ | :--------------- | :----------- | | Authorized: As at March 31, 2021 and September 30, 2021 | 8,000,000,000 | 80,000,000 | | Issued and Fully Paid: As at March 31, 2021 and September 30, 2021 | 400,000,000 | 4,000,000 | - All issued shares rank pari passu in all respects with all existing issued shares[103] 16. Related Party Transactions Total remuneration for key management personnel (directors and other key management) for the period was HKD 4.65 million, primarily consisting of short-term benefits, representing a slight decrease from the prior period Key Management Personnel Remuneration (HKD Thousands) | Item | 2021 (Unaudited) | 2020 (Unaudited) | | :------------------- | :----------------- | :----------------- | | Short-term Benefits | 4,593 | 4,871 | | Post-employment Benefits | 57 | 63 | | Total | 4,650 | 4,934 |