金宝通(00320) - 2025 - 年度业绩

Summary Summary The company reported a slight revenue decrease in FY2025, but achieved growth in gross profit and profit after tax, alongside a proposed increase in final dividend | Metric | FY2025 (Million HKD) | FY2024 (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 3,996.6 | 4,037.8 | -1.0% | | Gross Profit | 653.3 | 631.1 | 3.5% | | Adjusted EBITDA | 332.2 | 333.9 | -0.5% | | Profit After Tax | 90.3 | 83.9 | 7.6% | | Proposed Final Dividend | 0.054 HKD | 0.050 HKD | 8.0% | Management Discussion and Analysis Market Overview The complex macroeconomic environment in FY2025, marked by geopolitical tensions, inflation, and high interest rates, led to a downward revision of global growth forecasts and a slowdown in new housing activity, posing challenges to the company's business Geopolitical and Trade Developments The re-election of the Trump administration intensifies global trade uncertainty and tariff measures, while ongoing conflicts further dampen business confidence, necessitating supply chain resilience reassessments - The re-election of the US Trump administration exacerbates global policy uncertainty, particularly in trade and tariffs, leading to market volatility and supply chain disruptions[5] - Ongoing geopolitical tensions, such as the Russia-Ukraine war and the Israel-Hamas conflict, further undermine business confidence and hinder global economic recovery[5] Economic Growth and Monetary Policy Outlook The IMF lowered global GDP growth forecasts, with the US, Eurozone, and UK also seeing reductions, while the Federal Reserve maintained interest rates amid concerns that tariffs could fuel inflation - The International Monetary Fund (IMF) revised its global GDP growth forecast downwards from 3.3% to 2.8%[6] - The US 2025 growth forecast was lowered to 1.8%, with the Eurozone and UK forecasts reduced to 0.8% and 1.1% respectively[6] - The Federal Reserve maintained interest rates at 4.5% in March 2025, expressing concerns that tariff measures could lead to increased inflation[6] Slowdown in New Housing Activity US tariffs are expected to increase costs, leading to a slight decrease in new housing starts in 2025 compared to 2024, while the UK and EU also anticipate declines due to economic weakness and high construction costs - US tariff measures are expected to increase costs, negatively impacting new housing activity, with 2025 new housing starts projected at 1.35 million units, slightly below 2024's 1.364 million units[8] - The number of new housing starts in the UK decreased by 7% for the full year 2024[8] - New residential units in the EU are projected to decline by 5.5% to 1.5 million units in 2025, primarily due to sluggish economic growth, reduced public investment, and high construction costs[8] Business and Financial Review Despite a challenging macroeconomic environment, the company demonstrated resilient financial performance in FY2025 with a slight revenue dip, but growth in gross profit and profit after tax, maintaining a strong balance sheet - FY2025 revenue was 3,996.6 million HKD, a slight decrease of 1.0% compared to FY2024, mainly attributed to a persistent market downturn and backlog shipments in the Control Solutions segment[9] - Revenue in the second half of FY2025 saw strong growth of 20.6% to 2,185.3 million HKD, primarily driven by the appliance business within the Control Solutions segment[9] - Gross profit increased by 3.5% year-on-year to 653.3 million HKD, with the gross profit margin improving from 15.6% to 16.3%, benefiting from stringent operating expense control and improved margins in the Brand Business segment[10] - Profit after tax increased by 7.6% from 83.9 million HKD to 90.3 million HKD[10] - Adjusted EBITDA was 332.2 million HKD, slightly lower than the previous year, but the adjusted EBITDA margin remained robust at 8.3%[10] - Cash and bank balances remained strong at 214.2 million HKD (FY2024: 226.7 million HKD), with net cash at 95.9 million HKD (FY2024: 90.3 million HKD)[11] - Inventory levels decreased to 756.0 million HKD (FY2024: 824.0 million HKD), trade receivables increased to 770.9 million HKD (FY2024: 509.4 million HKD), and trade payables and bills payable increased to 950.8 million HKD (FY2024: 745.3 million HKD), primarily driven by strong sales momentum in the second half[12] - The gearing ratio improved from 9.9% a year ago to 8.4%, mainly due to reduced bank borrowings, further strengthening the financial position[13] Group Operations Review The Group operates through Control Solutions and Brand Business segments, with Control Solutions seeing a slight revenue decrease but steady growth in specific sub-segments, while Brand Business, affected by the weak US market, rebounded in H2 with new smart home solutions Control Solutions The Control Solutions segment recorded a slight 1.0% revenue decrease to 3,565.8 million HKD in FY2025, primarily due to HVAC industry weakness, but saw robust growth in appliance, water & air products, and tools, with future expansion planned through new geographical markets - The Control Solutions segment's revenue in FY2025 reached 3,565.8 million HKD, a slight decrease of 1.0% compared to the previous fiscal year[14] - The slight revenue decline was primarily attributed to the weak performance of the HVAC industry, but the appliance, water & air products, and tools sub-segments achieved steady growth[14] - Looking ahead, this segment is poised for recovery and expansion through new business opportunities in target geographical markets[14] Brand Business The Brand Business segment's revenue slightly declined by 1.4% to 430.8 million HKD in FY2025, mainly due to a weak US market, but experienced strong growth in H2 driven by new smart home solutions and regaining market share in Eastern Europe - The Brand Business segment recorded revenue of 430.8 million HKD in FY2025, a slight decrease of 1.4% compared to FY2024[15] - The revenue contraction was primarily due to the weak market environment in the US[15] - Salus experienced strong growth in the second half of FY2025, benefiting from the successful launch of new smart home solutions and regaining market share in Eastern Europe[15] Our Approach: Global Localization within the Five-Year Plan The company is deepening its global localization strategy, leveraging Hong Kong as a central hub to support local operations, integrating global resources with local demands to navigate market volatility and achieve future growth - The Group is deepening its global localization strategy, emphasizing centralized management from Hong Kong to support local operations, combining "globalization" with "localization" to meet specific regional needs[16] - This strategy, implemented before market turbulence, serves as a guiding framework for sustainable development, enhancing crisis management capabilities and ensuring structural resilience[16] Strategies under Global Localization The Group adopts a region-to-region operating model with local business development teams to understand client needs and secure new business, while Hong Kong serves as a central hub for strategic support, optimizing resource allocation and market coverage - Adopting a region-to-region operating model, relying on dedicated local business development teams in each market for customer communication, production coordination, and frontline sales leadership[17] - Hong Kong serves as a central hub, providing strategic support and direction to regional offices to optimize resource allocation and ensure market coverage[17] Corporate Focus The company strengthens its leadership in smart and sustainable living by focusing on high-growth green and smart home markets, developing AI-driven energy and water management platforms, leveraging 1-to-N technology for scalable solutions, implementing a 'New Global Landscape' strategy, and enhancing efficiency through operational transformation - Focusing on high-growth potential green and smart home markets, developing AI-driven advanced energy and water resource management platforms, with all new products complying with MATTER standards[19] - Leveraging over 500 engineers and 200 patents to develop energy-saving products with quantifiable benefits using 1-to-N technology[20] - Implementing a "New Global Landscape" strategy to refine corporate culture, talent development models, and reporting structures, establishing integrated business development, engineering, and manufacturing capabilities across North America, the EU, Southeast Asia, and China[21] Operational Transformation The Group is implementing a region-to-region model and hub-and-spoke infrastructure to enhance market proximity and responsiveness, improving operational efficiency and decision-making flexibility through P&L accountability, empowered business structures, and comprehensive process re-engineering including SAP implementation - Implementing a region-to-region model and hub-and-spoke infrastructure to enhance responsiveness and efficiency[22] - Establishing profit and loss accountability for all business units and creating an empowered business structure to improve accountability and decision-making flexibility[22] - Enhancing operational efficiency through comprehensive process re-engineering and implementing the SAP system across all areas[22] Sustainable Management The company integrates ESG considerations into its operations and culture, achieving significant progress in FY2025 with multiple environmental certifications, exceeding carbon emission reduction targets, and committing to net-zero emissions by 2050 - Obtained 3 WWF Low-Carbon Manufacturing Programme (LCMP) Gold Labels, affirming continuous carbon reduction effectiveness in production facilities[24] - The Hong Kong office received the WWF Low-Carbon Office Programme (LOOP+) Label – Level 3, and the Malaysia office received the Penang Green Office Label[24] - Achieved a Bronze medal in the EcoVadis ESG rating, with its percentile ranking significantly improving from 53rd to 78th[24] - Exceeded the five-year target for Scope 1 and Scope 2 greenhouse gas emissions, achieving a significant 38.3% reduction compared to the 2020 baseline[25] - Outlined an ESG roadmap for achieving net-zero emissions by 2050 and formally committed to this goal[25] Outlook Market Opportunities Despite short-term pressures, the company is optimistic about long-term growth opportunities, anticipating an HVAC market rebound, actively expanding into Asian and European markets (especially China), and continuously investing in advanced technologies and product portfolios to meet energy efficiency and smart control demands - The HVAC market is expected to rebound, providing an important channel for the expansion of the Brand Business segment[27] - The Control Solutions segment is actively expanding into key regional markets in Asia and Europe, particularly China, to diversify revenue sources[27] - Continuous investment in advanced technologies and expansion of the product portfolio are aimed at meeting the growing global demand for energy efficiency, smart control systems, and environmental monitoring[28] Southeast Asia Expansion As part of its globalization strategy, the company established an operational hub in Singapore to integrate business, engineering, customer support, and operations, leveraging Singapore's strategic advantages and regional connectivity to deepen its regional presence and capitalize on the healthcare sector's growth potential - Established an operational hub in Singapore to drive long-term growth, which has been approved under the Singapore Economic Development Board's Global Headquarters Programme[29] - The Singapore hub aims to integrate business, engineering, customer support, and operational functions to provide tailored end-to-end solutions[29] - The company is optimistic about the strong growth potential in the region's medical and healthcare sector, which aligns closely with its core capabilities and strategic direction[29] Operational Optimization and Strategic Investment Facing a dynamic business environment, the company is committed to a rigorous and flexible operating model, prioritizing financial prudence, strictly managing operating expenses, and precisely allocating capital expenditure to new product development, production plans, facility upgrades, and talent development, while increasing R&D investment to maintain competitive advantage - Committed to implementing a rigorous and flexible operating model, with a focus on financial prudence, strictly managing operating expenses to ensure financial stability[30] - Strategic investments will be precisely targeted, with capital expenditure prudently allocated to areas such as new product development, production plans, facility upgrades, and talent development[30] - Increased investment in R&D and continuous streamlining of operations will enhance overall efficiency across the value chain to address external challenges[31] Conclusion Navigating a continuously challenging global business environment, the company will advance steadily through strategic focus, operational flexibility, and adaptability, committed to creating lasting value for customers, partners, and shareholders through continuous innovation and global expansion - The global business environment will remain challenging, but climate change and global emphasis on sustainable development will create new avenues for innovation and growth[32] - The company will leverage strategic focus, operational flexibility, and adaptability to continuously improve its business model and operations, maintaining competitiveness and a customer-centric approach[32] - Emphasis on continuous innovation and global expansion is aimed at creating lasting value for customers, partners, and shareholders[32] Liquidity, Financial Resources and Capital Structure Liquidity, Financial Resources and Capital Structure | Metric | March 31, 2025 (Thousand HKD) | March 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Cash and Bank Deposits | 214,188 | 226,699 | | Of which: Cash and Bank Balances | 195,820 | 210,824 | | Of which: Restricted Deposits | 18,368 | 15,875 | | RMB-denominated Balances | 50,844 | 53,263 | - The current ratio remained robust at 1.4 times (FY2024: 1.5 times)[33] Interest-Bearing Bank Borrowings | Metric | March 31, 2025 (Thousand HKD) | March 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Interest-Bearing Bank Borrowings | 118,249 | 136,445 | - Total equity attributable to owners of the company was 1,401,268 thousand HKD (FY2024: 1,380,738 thousand HKD)[34] - Net cash (total cash and bank balances less total interest-bearing bank borrowings) was 95,939 thousand HKD (FY2024: 90,254 thousand HKD)[34] Treasury Policy The Group primarily faces foreign exchange risks denominated in USD, RMB, EUR, and GBP, which are closely monitored with proactive and prudent measures taken to mitigate these risks - The Group's foreign exchange risk primarily arises from transactions denominated in currencies other than the functional currency of the respective operations, mainly USD, RMB, EUR, and GBP[35] - The Group closely monitors its overall foreign exchange risk and adopts proactive yet prudent measures to minimize such risks[35] Capital Expenditure and Commitments Total capital expenditure for the year was approximately 124.68 million HKD, primarily for leasehold land, property, plant & equipment, software, and new product development, with contracted but unprovided capital commitments of 12.211 million HKD as of March 31, 2025 - Total capital expenditure for the year was approximately 124,680 thousand HKD (FY2024: 160,320 thousand HKD), used for the acquisition of leasehold land, property, plant & equipment, software, and deferred expenses for new product development[36] - As of March 31, 2025, contracted but unprovided capital commitments, primarily for the acquisition of property, plant & equipment, amounted to 12,211 thousand HKD (FY2024: 8,102 thousand HKD)[36] Contingent Liabilities As of March 31, 2025, the Group had no significant contingent liabilities - As of March 31, 2025, the Group had no significant contingent liabilities (FY2024: Nil)[37] Pledged Assets The Group pledged 18.4 million HKD in short-term deposits to banks, required to be maintained for the duration of certain bills payable - The Group pledged short-term deposits of 18.4 million HKD (FY2024: 15.9 million HKD) to banks, which must be maintained in the respective banks for the duration of certain bills payable[38] Employee Information As of March 31, 2025, the Group employed 4,007 individuals with total staff costs of 661.386 million HKD, offering comprehensive benefits including year-end bonuses, medical insurance, and training Employee Data | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total Employees | 4,007 | 4,005 | | Total Staff Costs | 661,386 Thousand HKD | 652,372 Thousand HKD | - The Group generally reviews salaries and wages annually based on individual qualifications, performance, Group results, and market conditions[39] - The Group provides employees with year-end double pay, discretionary bonuses, medical insurance, provident funds, education subsidies, and training[39] Share Schemes 2023 Share Award Scheme The 2023 Share Award Scheme, effective for ten years, aims to recognize and incentivize eligible participants, with total shares awarded not exceeding 10% of issued shares; in FY2025, 17.6 million awards were granted, 1.6 million vested, 1.2 million lapsed, and 20.8 million remain unvested - The 2023 Share Award Scheme, adopted on September 7, 2023, aims to recognize and reward contributions of eligible participants to the Group's growth and development, and to attract suitable talent[40] - The scheme is valid for a period of ten years from September 7, 2023, and is administered by the Board or its delegates and the trustee[40] - The total number of shares to be awarded under the scheme shall not exceed 10% of the company's total issued shares on the date of adoption (i.e., 84,254,000 shares)[40] - On April 26, 2024 (the first grant date), 8,300,000 awards were granted to Mr. Ouyang Bok-kan and Mr. Wong Wah-shun, with a total fair value of approximately 3,071,000 HKD[41][42] - On March 20, 2025 (the second grant date), 9,300,000 awards were granted to eleven employee participants, with a total fair value of approximately 3,813,000 HKD[41][42] 2025 Share Award Scheme Movements | Status | Number of Shares | | :--- | :--- | | Granted during the year | 17,600,000 | | Vested | 1,600,000 | | Lapsed | 1,200,000 | | Unvested (end of period) | 20,800,000 | | Available for grant under scheme limit (end of period) | 61,854,000 | - Award vesting is subject to the achievement of certain performance targets and other requirements, including financial objectives (e.g., Group's annual net profit after tax) and management objectives (e.g., stakeholder engagement, productivity, customer satisfaction)[43] 2023 Share Option Scheme The 2023 Share Option Scheme rewards contributors and enhances company value, with no options granted, exercised, or cancelled during the year, leaving 61.854 million options available under the authorized limit, representing approximately 7.34% of issued share capital - The 2023 Share Option Scheme was adopted at the 2023 Annual General Meeting, aiming to reward individuals who have contributed to the Group and to encourage the enhancement of the value of the company and its shares[45] - During the current year, no share options were granted, exercised, or cancelled under the 2023 Share Option Scheme[45] - The number of share options available for grant under the scheme's authorized limit at the end of the current year was 61,854,000, representing approximately 7.34% of the company's issued share capital[45] Consolidated Statement of Profit or Loss Consolidated Statement of Profit or Loss The consolidated statement details the Group's financial performance, showing revenue, cost of sales, gross profit, and profit for the year, along with basic earnings per share Consolidated Statement of Profit or Loss Summary | Metric | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 3,996,600 | 4,037,818 | | Cost of Sales | (3,343,337) | (3,406,739) | | Gross Profit | 653,263 | 631,079 | | Other Income | 8,825 | 14,499 | | Selling and Distribution Expenses | (110,525) | (106,631) | | Administrative Expenses | (400,303) | (377,892) | | Profit Before Tax | 112,881 | 107,580 | | Income Tax Expense | (22,576) | (23,668) | | Profit for the Year | 90,305 | 83,912 | | Basic Earnings Per Share Attributable to Owners of the Company | 11.12 HK cents | 10.10 HK cents | Consolidated Statement of Comprehensive Income Consolidated Statement of Comprehensive Income This statement presents the Group's profit for the year and other comprehensive income items, including exchange differences on translation of overseas operations, culminating in total comprehensive income Consolidated Statement of Comprehensive Income Summary | Metric | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Profit for the Year | 90,305 | 83,912 | | Exchange Differences on Translation of Overseas Operations | (31,733) | (1,659) | | Total Comprehensive Income for the Year | 58,572 | 82,253 | | Attributable to Owners of the Company | 60,907 | 83,129 | Consolidated Statement of Financial Position Consolidated Statement of Financial Position The consolidated statement provides a snapshot of the Group's assets, liabilities, and equity as of the reporting date, distinguishing between non-current and current classifications Consolidated Statement of Financial Position Summary | Metric | March 31, 2025 (Thousand HKD) | March 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Non-Current Assets | | | | Property, Plant and Equipment | 318,056 | 342,066 | | Intangible Assets | 322,847 | 302,615 | | Total Non-Current Assets | 926,133 | 953,419 | | Current Assets | | | | Inventories | 756,044 | 823,976 | | Trade Receivables | 770,881 | 509,376 | | Cash and Bank Deposits | 214,188 | 226,699 | | Total Current Assets | 1,882,654 | 1,667,509 | | Current Liabilities | | | | Trade Payables and Bills Payable | 950,807 | 745,346 | | Interest-Bearing Bank Borrowings | 118,249 | 136,445 | | Total Current Liabilities | 1,336,358 | 1,136,117 | | Non-Current Liabilities | | | | Total Non-Current Liabilities | 69,797 | 100,374 | | Equity | | | | Equity Attributable to Owners of the Company | 1,401,268 | 1,380,738 | | Total Equity | 1,402,632 | 1,384,437 | Notes Company and Group Information The company, incorporated in the Cayman Islands, primarily engages in R&D, manufacturing, sales, and brand management of electronic control devices, focusing on smart and sustainable living - The company was incorporated as an exempted company under the Companies Act of the Cayman Islands on June 23, 2006[50] - The Group is principally engaged in the research and development, manufacturing, sales, and brand management of electronic control device products, focusing on smart and sustainable living[51] Basis of Preparation The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, presented under the historical cost convention, with certain financial assets measured at fair value, and are denominated in HKD, covering the company and its subsidiaries with consistent accounting policies - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, presented under the historical cost convention, except for certain financial assets measured at fair value[52] - The consolidated financial statements include the financial statements of the company and its subsidiaries for the year ended March 31, 2025, and are prepared using consistent accounting policies[53][54] Changes in Accounting Policies and Disclosures This year saw the initial adoption of revised Hong Kong Financial Reporting Standards, including those for lease liabilities in sale and leaseback, classification of liabilities, non-current liabilities with covenants, and supplier finance arrangements, none of which had a material impact on the Group's financial position or performance due to the absence of relevant transactions - The financial statements for the current year saw the initial adoption of revised Hong Kong Financial Reporting Standards, including HKFRS 16 (Amendments), HKAS 1 (Amendments), and HKAS 7 and HKFRS 7 (Amendments)[55][56] - The amendments had no impact on the Group's financial position or performance, as the Group had no relevant sale and leaseback transactions, liability classifications remained unchanged, and there were no supplier finance arrangements[58][59] Operating Segment Information The Group operates through two main segments, Control Solutions and Brand Business, with management monitoring their performance separately for resource allocation and assessment, and inter-segment revenues and transfers conducted at market prices - The Group operates through two main segments: Control Solutions and Brand Business, with management separately monitoring their performance to make decisions regarding resource allocation and performance assessment[60] Operating Segment Performance Summary | Metric | Control Solutions (Thousand HKD) | Brand Business (Thousand HKD) | Total (Thousand HKD) | | :--- | :--- | :--- | :--- | | 2025 Segment Revenue | 3,565,761 | 430,839 | 3,996,600 | | 2024 Segment Revenue | 3,600,983 | 436,835 | 4,037,818 | | 2025 Segment Results | 295,143 | 783 | 295,926 | | 2024 Segment Results | 314,476 | (29,544) | 284,932 | Geographical Information The Group's revenue primarily originates from Asia, Europe, and the Americas, with Asia being the largest contributor, and non-current assets predominantly located in Asia Revenue by Geographical Region | Region | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Americas | 813,219 | 1,077,248 | | Europe | 1,558,216 | 1,408,846 | | Asia | 1,612,526 | 1,543,826 | | Oceania | 12,639 | 7,898 | | Total | 3,996,600 | 4,037,818 | Non-Current Assets by Geographical Region (excluding goodwill, etc.) | Region | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Americas | 38,659 | 37,478 | | Europe | 30,539 | 8,026 | | Asia | 378,909 | 458,643 | | Total | 448,107 | 504,147 | Major Customer Information For the year ended March 31, 2025, 24.5% and 21.8% of the Group's total revenue were derived from sales to two major customers within the Control Solutions segment - For the year ended March 31, 2025, approximately 979,456 thousand HKD (representing 24.5% of total revenue) and 871,637 thousand HKD (representing 21.8% of total revenue) were derived from sales to two major customers within the Control Solutions segment[65] Revenue and Other Income Group revenue primarily stems from customer contracts, with sales of electronic control devices being the main performance obligation, while other income includes bank interest, government grants, and miscellaneous income, predominantly from Hong Kong and mainland China - Revenue primarily consists of income from contracts with customers, totaling 3,996,600 thousand HKD in FY2025[66] - Performance obligations are satisfied upon delivery of goods, with payments typically due within 30 to 150 days after delivery[67] Other Income Analysis | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Bank Interest Income | 2,021 | 2,060 | | Government Grants | 5,351 | 9,467 | | Miscellaneous Income | 1,453 | 2,972 | | Total | 8,825 | 14,499 | - Government grants are primarily awarded by government authorities in Hong Kong and mainland China, including enterprise employment stabilization unemployment insurance refunds and industry development subsidies[68] Finance Costs The Group's finance costs primarily comprise interest on bank loans and lease liabilities Finance Costs Analysis | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest on Bank Loans | 54,252 | 61,428 | | Interest on Lease Liabilities | 4,281 | 4,249 | | Total | 58,533 | 65,677 | Profit Before Tax The Group's profit before tax is calculated after deducting items such as cost of inventories sold, depreciation, amortization, R&D costs, impairment of trade receivables, and inventory write-downs Profit Before Tax Deductions/Additions | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Cost of Inventories Sold | 3,318,426 | 3,395,023 | | Depreciation of Property, Plant and Equipment | 67,770 | 70,263 | | Depreciation of Right-of-Use Assets | 47,425 | 49,752 | | Amortization of Intangible Assets | 4,895 | 2,957 | | Research and Development Costs (Amortization of deferred expenses + current year expenses) | 57,630 | 61,823 | | Net Foreign Exchange Differences | (14,224) | (5,549) | | Net Impairment Loss on Trade Receivables | 73 | 3,249 | | Write-down of Inventories to Net Realizable Value | 24,911 | 11,716 | | Fair Value Loss/(Gain) on Financial Assets at Fair Value Through Profit or Loss | 1,581 | (7,045) | Income Tax Expense Hong Kong profits tax is provisioned at 16.5% (or two-tiered 8.25%), with other regions taxed at applicable local rates, resulting in a total tax expense of 22.576 million HKD for the year - Hong Kong profits tax is provisioned at 16.5% (or a two-tiered rate of 8.25%), while other regions are taxed at the applicable rates in the jurisdictions where the Group entities operate[71] Income Tax Expense Analysis | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Current - Hong Kong | 19,159 | 12,393 | | Current - Mainland China and Other Countries | 13,584 | 7,043 | | Deferred | (10,167) | 4,232 | | Total Tax Expense | 22,576 | 23,668 | Dividends The Group paid a final dividend of 0.050 HKD per share for FY2024 and proposes a final dividend of 0.054 HKD per share for FY2025, subject to shareholder approval Dividends Paid | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | 2024 Final Dividend (0.050 HKD per share) | 42,127 | 17,693 | | Less: Dividends on Ordinary Shares Held by Share Award Scheme | (431) | – | | Total | 41,696 | 17,693 | Proposed Final Dividend | Item | FY2025 (Thousand HKD) | FY2024 (Thousand HKD) | | :--- | :--- | :--- | | Final Dividend (0.054 HKD per share) | 45,497 | 42,127 | - The proposed final dividend for the year ended March 31, 2025, is subject to approval by the company's shareholders at the upcoming Annual General Meeting[73] Earnings Per Share Attributable to Owners of the Company Both basic and diluted earnings per share are calculated based on profit attributable to owners of the company and the weighted average number of ordinary shares outstanding, with diluted EPS accounting for the potential impact of share awards Earnings Per Share Data | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Profit for the Year Attributable to Owners of the Company | 92,602 Thousand HKD | 84,772 Thousand HKD | | Basic Earnings Per Share | 11.12 HK cents | 10.10 HK cents | | Diluted Earnings Per Share | 11.03 HK cents | 10.08 HK cents | Weighted Average Number of Ordinary Shares for EPS Calculation | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares for Basic EPS | 832,659,000 | 839,589,000 | | Dilutive Effect of Share Awards | 7,213,000 | 1,103,000 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 839,872,000 | 840,692,000 | Trade Receivables The Group primarily trades with customers on credit, typically with terms of one to five months; as of March 31, 2025, total trade receivables increased to 770.881 million HKD, driven by strong sales in the second half - Total trade receivables amounted to 770,881 thousand HKD (2024: 509,376 thousand HKD), primarily from trade terms with customers on credit, typically ranging from one to five months[74] Trade Receivables Ageing Analysis (by Invoice Date) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Within one month | 516,683 | 249,472 | | One to two months | 134,330 | 136,841 | | Two to three months | 63,090 | 67,214 | | Over three months | 56,778 | 55,849 | | Total | 770,881 | 509,376 | Trade Receivables Ageing Analysis (by Due Date) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current and within one month | 741,089 | 459,258 | | One to two months | 5,452 | 27,897 | | Two to three months | 2,907 | 7,125 | | Over three months | 21,433 | 15,096 | | Total | 770,881 | 509,376 | Trade Payables and Bills Payable As of March 31, 2025, total trade payables and bills payable increased to 950.807 million HKD, primarily due to strong sales momentum in the second half of FY2025, with payment terms generally ranging from one to six months - Total trade payables and bills payable amounted to 950,807 thousand HKD (2024: 745,346 thousand HKD), an increase from the previous year, primarily driven by the Group's strong sales momentum in the second half of FY2025[12][76] Trade Payables and Bills Payable Ageing Analysis (by Invoice Date) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Within one month | 291,727 | 300,741 | | One to two months | 339,840 | 245,388 | | Two to three months | 199,612 | 28,256 | | Over three months | 119,628 | 170,961 | | Total | 950,807 | 745,346 | Trade Payables and Bills Payable Ageing Analysis (by Due Date) | Ageing | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current and within one month | 850,863 | 695,280 | | One to two months | 84,687 | 13,642 | | Two to three months | 14,144 | 15,565 | | Over three months | 1,113 | 20,859 | | Total | 950,807 | 745,346 | Final Dividend Final Dividend The Board proposes a final dividend of 0.054 HKD per share for the year, subject to shareholder approval at the AGM on September 4, 2025, payable on October 24, 2025, to shareholders on record as of October 6, 2025 - The Board resolved to recommend the payment of a final dividend of 0.054 HKD per share for the current year to shareholders, subject to approval at the Annual General Meeting on September 4, 2025[77] - The proposed final dividend will be paid on Friday, October 24, 2025, to shareholders whose names appear on the company's register of members on Monday, October 6, 2025[77] Closure of Register of Members Closure of Register of Members The register of members will be closed from September 1 to September 4, 2025, to determine eligibility for attending and voting at the AGM, and from October 2 to October 6, 2025, to determine eligibility for the proposed final dividend - To determine eligibility for attending and voting at the 2025 Annual General Meeting, the register of members will be closed from Monday, September 1, 2025, to Thursday, September 4, 2025[78] - To determine eligibility for the proposed final dividend, the register of members will be closed from Thursday, October 2, 2025, to Monday, October 6, 2025[79] Annual General Meeting Annual General Meeting The Annual General Meeting is scheduled for September 4, 2025, with the notice to be dispatched to shareholders in due course - The 2025 Annual General Meeting is scheduled to be held on Thursday, September 4, 2025, and the notice will be dispatched to shareholders in due course[80] Purchase, Sale or Redemption of the Company's Listed Securities Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the year - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the current year[81] Corporate Governance Corporate Governance The company maintains high corporate governance standards, adhering to the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules, with a deviation from C.2.1 where the CEO also serves as Chairman, deemed effective for consistent leadership and strategy execution - The company is committed to maintaining high standards of corporate governance practices and has complied with the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the current year[82] - A deviation from Corporate Governance Code provision C.2.1 (roles of chairman and chief executive should be separate) exists, as Mr. Ouyang Bok-kan, the company's Chief Executive Officer, has also served as the Chairman of the Board since April 13, 2022[82] - The Board believes that combining the roles of Chairman and Chief Executive Officer ensures consistent leadership for the Group and more effective execution of its overall strategy, further supported by a high proportion of independent non-executive directors reviewing key decisions[82] Audit Committee Audit Committee The Audit Committee, comprising three independent non-executive directors and one non-executive director, reviewed the Group's consolidated financial statements for the year, discussing accounting principles, internal controls, and financial reporting with management and auditors - The company's Audit Committee comprises three independent non-executive directors (Ms. Mui Man-yee, Mr. Ho Pak-chuen, Ms. Lee Sheung-yuk) and one non-executive director (Mr. Kam Chi-chiu)[83] - The Audit Committee has reviewed the Group's consolidated financial statements for the current year and discussed accounting principles and practices, internal controls, and financial reporting matters with management and the auditors[83] Scope of Work by Ernst & Young in Preliminary Announcement Scope of Work by Ernst & Young in Preliminary Announcement Ernst & Young confirmed that the financial figures in this preliminary announcement align with the Group's consolidated financial statements for the year ended March 31, 2025, noting that their work does not constitute an assurance engagement under HKSA, HKSRS, or HKSAE - Ernst & Young has confirmed that the figures for the Group's consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of financial position, and related notes for the year ended March 31, 2025, as presented in this announcement, are consistent with the amounts set out in the Group's consolidated financial statements for the current year[84] - Ernst & Young's work in this regard does not constitute an assurance engagement conducted in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements, or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and therefore no assurance is expressed[84] Publication of Further Information Publication of Further Information The company's annual report for the year, containing information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and company websites in due course - The company's annual report for the current year, containing information required by the Listing Rules, will be dispatched to shareholders and published on the websites of The Stock Exchange of Hong Kong Limited and the company in due course[85] Acknowledgement Acknowledgement The Board extends its sincere gratitude to the Group's management and employees for their efforts and contributions throughout the year - The Board wishes to express its sincere gratitude to the Group's management and employees for their continuous efforts and contributions to the Group throughout the current year[86] By Order of the Board By Order of the Board The Board of Directors comprises executive directors Mr. Ouyang Bok-kan (Chairman and CEO) and Mr. Wong Wah-shun, non-executive directors Mr. Kam Chi-chiu and Mr. Wong Chun-kwong, and independent non-executive directors Mr. Ho Pak-chuen, Ms. Lee Sheung-yuk, and Ms. Mui Man-yee - The Board of Directors includes executive directors Mr. Ouyang Bok-kan (Chairman and Chief Executive Officer) and Mr. Wong Wah-shun, non-executive directors Mr. Kam Chi-chiu and Mr. Wong Chun-kwong, and independent non-executive directors Mr. Ho Pak-chuen, Ms. Lee Sheung-yuk, and Ms. Mui Man-yee[87]