Announcement of Annual Results for the year ended 31 March 2024

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.(Incorporated in Hong Kong with limited liability) (Stock Code: 18) ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2024 The board (the “Board”) of directors (the “Director(s)”) of Oriental Enterprise Holdings Limited (the “Company”) announces that the audited consolidated results of the Company and its subsidiaries (the “Subsidiaries”) (collectively the “Group”) for the year ended 31 March 2024 (the “Reporting Period”) together with the comparative figures for the corresponding year 2023 are as follows: CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Year ended 31 March 2024 20242023 Note HK$’000 HK$’000 Revenue 3 628996 677165 Other income net 3 51316 66906 Raw materials and consumables used (89210) (90787) Staff costs including directors’ emoluments (369046) (381031) Depreciation of property plant and equipment (32641) (31775) Other operating expenses (87827) (87296) Impairment of leasehold buildings (5224) – Reversal of loss allowance for expected credit loss (“ECL”) on trade receivables 750 10272 Net fair value (loss)/gain on investment properties (4519) 38613 Fair value gain on financial asset at fair value through profit or loss (“FVTPL”) 2400 340 Net exchange loss (340) (687) Net gain on disposal of property plant and equipment 170 21 Net gain on disposal of investment properties classified as held for sale – 11295 Finance costs 6 (140 3) (25 8) Profit before tax 5 93422 212778 Income tax expenses 7 (1688 4) (4185 5) Profit for the year 7653 8 17092 3 –1–20242023 Note HK$’000 HK$’000 Other comprehensive loss for the year net of tax Item that may be reclassified subsequently to profit or loss: – Exchange differences on translation of foreign operations (1195 3) (4135 1) Total comprehensive income for the year 6458 5 12957 2 Profit for the year attributable to: Owners of the Company 75096 166564 Non-controlling interests 144 2 435 9 76538170923 Total comprehensive income attributable to: Owners of the Company 63512 126194 Non-controlling interests 107 3 337 8 64585129572 Earnings per share Basic and diluted 9 HK3.13 cent s HK6.95 cent s – 2 –CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 March 2024 20242023 Note HK$’000 HK$’000 Non-current assets Property plant and equipment 332785 400282 Leasehold land 18116 18904 Investment properties 367679 332649 Financial asset at FVTPL 11560 9160 Loans and interest receivables 12 3620 8385 Other debtors deposits and prepayments 4159 4187 Deferred tax assets 200 6 298 2 739925776549 Current assets Inventories 10 62645 74483 Trade receivables 11 45109 58774 Loans and interest receivables 12 523219 292832 Other debtors deposits and prepayments 16432 11126 Income tax recoverable 8504 13217 Cash and cash equivalents 56093 7 66519 6 Total current assets 121684 6 111562 8 –3–20242023 Note HK$’000 HK$’000 Current liabilities Trade payables 13 4304 11376 Other creditors accruals and deposits received 47921 50621 Contract liabilities 14714 12202 Income tax payables 2796 4392 Lease liabilities 1688 – Borrowings 14 759 2 757 2 Total current liabilities 7901 5 8616 3 Net current assets 113783 1 102946 5 Total assets less current liabilities 187775 6 180601 4 Non-current liabilities Lease liabilities 4851 – Deferred tax liabilities 7846 5 7615 9 8331676159 Net assets 179444 0 172985 5 Capital and reserves Share capital 1413964 1413964 Reserves 36743 3 30392 1 Equity attributable to owners of the Company 1781397 1717885 Non-controlling interests 1304 3 1197 0 Total equity 179444 0 172985 5 – 4 –NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 1. GENERAL INFORMATION AND BASIS OF PREPARATION The financial information relating to the years ended 31 March 2024 and 2023 included in this preliminary annual results announcement do not constitute the Company’s statutory annual consolidated financial statements for those years but is derived from those financial statements.Further information relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) (the “Companies Ordinance”) is as follows: The Company has delivered the financial statements for the year ended 31 March 2023 to the Registrar of Companies as required by section 662(3) of and Part 3 of Schedule 6 to the Companies Ordinance and will deliver the financial statements for the Reporting Period in due course.The Company’s auditor has reported on the financial statements of the Group for both years. The auditor’s reports were unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its reports; and did not contain a statement under sections 406(2) 407(2) or (3) of the Companies Ordinance.The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) which collective term includes all applicable Hong Kong Financial Reporting Standards Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) accounting principles generally accepted in Hong Kong and the Companies Ordinance. The consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The consolidated financial statements are presented in Hong Kong dollars (“HK$”) and all values are rounded to the nearest thousand except where otherwise indicated.The consolidated financial statements have been prepared on a basis consistent with the accounting policies adopted in the Group’s consolidated financial statements for the year ended 31 March 2023. 2. ADOPTION OF NEW/REVISED HKFRSs The Group has applied for the first time the following new/revised HKFRSs: Amendments to HKAS 1 Disclosure of Accounting Policies Amendments to HKAS 8 Definition of Accounting Estimates Amendments to HKAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction Amendments to HKAS 12 International Tax Reform – Pillar Two Model Rules – 5 –Amendments to HKAS 1: Disclosure of Accounting Policies The amendments require companies to disclose their material accounting policy information rather than their significant accounting policies.The amendments have no effect on the measurement recognition or presentation of any items in the consolidated financial statements. Management has reviewed the disclosure of accounting policy information and considered it is consistent with the amendments.Amendments to HKAS 8: Definition of Accounting Estimates The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates.The adoption of the amendments does not have any significant impact on the consolidated financial statements.Amendments to HKAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction The amendments narrow the scope of the recognition exemption in paragraphs 15 and 24 of HKAS 12 so that it no longer applies to transactions that on recognition give rise to equal taxable and deductible temporary differences.The adoption of the amendments does not have any significant impact on the consolidated financial statements.Amendments to HKAS 12: International Tax Reform – Pillar Two Model Rules The amendments provide entities with temporary relief from accounting for deferred taxes arising from the Organisation for Economic Co-operation and Development’s Pillar Two model rules.The amendments also introduce targeted disclosure requirements to help investors understand an entity’s exposure to income taxes arising from the rules.The adoption of the amendments does not have any significant impact on the consolidated financial statements.– 6 –Future changes in HKFRSs At the date of authorisation of the consolidated financial statements the HKICPA has issued the following new/revised HKFRSs that are not yet effective for the current year which the Group has not early adopted.Amendments to HKAS 1 Classification of Liabilities as Current or Non-current 1 Amendments to HKAS 1 Non-current Liabilities with Covenants 1 Amendments to HK Interpretation 5 Presentation of Financial Statements – Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause 1 Amendments to HKAS 7 and Supplier Finance Arrangements 1 HKFRS 7 Amendments to HKFRS 16 Lease Liability in a Sale and Leaseback 1 Amendments to HKAS 21 Lack of Exchangeability 2 Amendments to HKFRS 10 and Sale or Contribution of Assets between an Investor and its HKAS 28 Associate or Joint Venture 3 1 Effective for annual periods beginning on or after 1 January 2024 2 Effective for annual periods beginning on or after 1 January 2025 3 The effective date to be determined The Directors do not anticipate that the adoption of the new/revised HKFRSs in future periods will have any material impact on the financial performance and financial position of the Group.– 7 –3. REVENUE AND OTHER INCOME Revenue recognised during the year is as follows: 20242023 HK$’000 HK$’000 Revenue from contracts with customers within HKFRS 15 recognised at a point in time: Publication of newspaper and advertising income 464813 509900 Internet subscription and advertising income 99363 115162 Income from restaurant operation 4284 5010 Revenue from other sources: Interest earned on loans receivables 45453 30975 License fee income from hotel property 11535 9848 Rental income from investment properties 354 8 627 0 628996677165 Key items of other income are as follows: Other income from contracts with customers within HKFRS 15 recognised at a point in time: Sales of scrap materials 1749 1901 Other service income 14416 15409 Other income from contracts with customers within HKFRS 15 recognised over time: Other service income 7871 10167 Other income from other sources: Interest earned on bank balances and short-term deposits 26086 11103 Government grants (Note) – 2227 7 Note: During the year ended 31 March 2023 the Group had recognised government grants as follows: (i) approximately HK$22250000 of the government grants is the funding support from the Employment Support Scheme (“ESS”) under the Anti-epidemic Funds set up by the Hong Kong Special Administrative Region Government. The purpose of the ESS is to provide financial support to employers to retain employees who may otherwise be made redundant.Under the terms of the grant the Group is required not to implement redundancies during the subsidy period and to spend all the funding on payment of wages to its employees and (ii) approximately HK$27000 of the government grants is the funding support from Reimbursement of Maternity Pay Leave Scheme administered by the Labour Department.Through the scheme employers can apply for reimbursement of the statutory maternity leave pay paid to employees in respect of the 11th to 14th weeks subject to a cap of HK$80000 per employee.– 8 –4. SEGMENT INFORMATION Based on the regular internal financial information reported to the executive Directors being the chief operating decision makers for their decisions about resources allocation to the Group’s business components and review of these components’ performance the executive Directors have identified reportable operating segments including the publication of newspaper money lending business and other operating segments. The publication of newspaper includes publication of newspaper and advertising income and internet subscription and advertising income. The money lending business comprises of interest income earned in the provision of loan financing. The revenue of other operating segments includes rental income from investment properties license fee income from hotel property and income from restaurant operation.Reportable segment revenue and results represented revenue of the Group in the consolidated statement of profit or loss and other comprehensive income. Segment results represent the profit earned by or loss from each segment without allocation of government grants corporate income such as bank interest income sundry income net exchange difference corporate expenses such as directors’ emoluments and finance costs.Reportable segment assets represented all assets are allocated to each operating segment other than financial asset at FVTPL and cash and cash equivalents. Reportable segment liabilities represented all liabilities are allocated to each operating segment.– 9 –Reconciliation between the reportable segment revenue and results to the Group’s profit before tax is presented below: Reportable segment revenue and results Publication of Money lending All other newspaper business operating segments Total 20242023202420232024202320242023 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Reportable segment revenue from external customers 56417 6 62506 2 4545 3 3097 5 1936 7 2112 8 62899 6 67716 5 Reportable segment results 6631 1 10686 4 3451 0 2299 9 (555 6) 7111 8 95265 200981 Government grants – 2169 5 – – – 58 2 – 22277 Unallocated corporate income 44395 34990 Unallocated exchange loss (340) (687) Unallocated corporate expenses (4589 8) (4478 3) Profit before tax 9342 2 21277 8 Other information Reversal of/(Provision for) loss allowance for ECL on trade receivables 120 (5) – – 630 10277 750 10272 Depreciation and amortisation (31046) (29055) – – (2383) (3508) (33429) (32563) Net fair value (loss)/gain on investment properties – – – – (4519) 38613 (4519) 38613 Net gain on the disposal of investment properties classified as held for sale – – – – – 11295 – 11295 Additions to property plant and equipment 16106 4676 – – 11 33 16117 4709 Impairment of leasehold buildings – – – – (522 4) – (522 4) – – 10 –An analysis of the Group’s assets and liabilities by operating segments is set out below: Reportable segment assets and liabilities Publication of Money lending All other newspaper business operating segments Total 20242023202420232024202320242023 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 ASSETS Segments assets 45581 0 49776 3 52746 8 30182 6 40099 6 41823 2 1384274 1217821 Unallocated assets Financial asset at FVTPL 11560 9160 Cash and cash equivalents 56093 7 66519 6 Total assets 195677 1 189217 7 LIABILITIES Segment liabilities 11067 3 11298 7 67 3 29 2 5098 5 4904 3 16233 1 16232 2 Geographical information The Group’s revenue from external customers and its non-current assets (other than financial asset at FVTPL loans and interest receivables other debtors deposits and prepayments and deferred tax assets) are divided into the following geographical areas: Revenue from external customers Non-current assets 2024202320242023 HK$’000 HK$’000 HK$’000 HK$’000 Hong Kong 617461 664796 504711 548438 Australia 1153 5 1236 9 21386 9 20339 7 628996677165718580751835 The geographical location of customers is determined based on the location in which the services were provided or the goods delivered. The geographical location of the non-current assets (other than the financial asset at FVTPL loans and interest receivables other debtors deposits and prepayments and deferred tax assets) is determined based on the physical location of the assets. For the purpose of presenting geographical location of the Group’s revenue from external customers and the Group’s non-current assets (other than financial asset at FVTPL loans and interest receivables other debtors deposits and prepayments and deferred tax assets) the location is determined by reference to the place where the majority business activities of the Subsidiaries operate.– 11 –Revenue from customers from segment of publication of newspaper for the years ended 31 March 2024 and 2023 contributed over 10% of the total sales of the Group are as follows: 20242023 HK$’000 HK$’000 Customer A 161630 179501 Customer B 15609 7 17052 9 317727350030 5. PROFIT BEFORE TAX The Group’s profit before tax is arrived at after charging/(crediting) the following: 20242023 HK$’000 HK$’000 Auditors’ remuneration* 1532 1536 Amortisation of leasehold land* 788 788 Raw materials and consumables used 89210 90787 Land tax expenses* 1962 3092 Expenses recognised for lease of low-value assets* – 1582 Provision for long service payments^ 4251 5557 Repairs and maintenance* 15948 15492 Water and electricity* 15739 15001 Rental income from investment properties (excluding hotel property)# (3548) (6270) Less: Direct operating expenses from investment properties that generated rental income* 344 1047 Rental income from investment properties (excluding hotel property) less direct operating expenses (320 4) (522 3) * recorded as “Other operating expenses” # recorded as “Revenue” ^ recorded as “Staff costs including directors’ emoluments” – 12 –6. FINANCE COSTS 20242023 HK$’000 HK$’000 Interest charges on borrowings 248 258 Interest on bank overdrafts 849 – Interest on lease liabilities 30 6 – 1403258 7. INCOME TAX EXPENSES Hong Kong Profits Tax is calculated at the rate of 16.5% (2023: 16.5%) on the estimated assessable profits for the year except for the first HK$2000000 of a qualified entity’s assessable profits which is calculated at 8.25%. The two-tiered profits tax rates regime is applicable to one entity within the Group for the years ended 31 March 2024 and 2023.The Group’s entity established in the Australia is subject to the Corporate Income Tax at a statutory rate of 30% for the years ended 31 March 2024 and 2023. Australia capital gains are calculated separately from income tax by identifying the capital proceeds with respect to the designated Capital Gains Tax events includes disposal of assets and events arising from the tax consolidation rules and deducting the relevant cost base. Capital gains are reduced by amounts that are otherwise assessable under the ordinary income tax rules. Capital losses are deductible only from taxable capital gains and cannot be offset against ordinary income. However ordinary or trading losses are deductible from net taxable capital gains. 20242023 HK$’000 HK$’000 Current tax: – Hong Kong Profits Tax 9929 20376 – Australia Corporate Income tax 2680 14671 Over-provision in prior years – Hong Kong Profits Tax (102) – Deferred taxation – Origination of temporary differences 437 7 680 8 1688441855 – 13 –8. DIVIDENDS (a) Dividends attributable to the year 20242023 HK$’000 HK$’000 Interim dividend paid Nil (2023: HK3 cents per share) – 71938 Special interim dividend paid Nil (2023: HK2 cents per share) – 47958 Proposed final dividend HK3 cents per share (2023: Nil) 71938 – Proposed special dividend HK3 cents per share (2023: Nil) 7193 8 – 143876119896 A final dividend of HK3 cents (2023: Nil) per share of the Company (the “Shares”) and special dividend of HK3 cents (2023: Nil) per Share have been proposed by the Board and are subject to the approval by the shareholders in the forthcoming annual general meeting of the Company (the “AGM”).(b) Dividends recognised as distributions during the year 20242023 HK$’000 HK$’000 2022 final dividend – 71938 2022 special dividend – 71938 2023 interim dividend – 71938 2023 special interim dividend – 4795 8 –263772 9. EARNINGS PER SHARE The calculation of basic earnings per share is based on the profit attributable to owners of the Company of approximately HK$75096000 (2023: approximately HK$166564000) and on 2397917898 (2023: 2397917898) ordinary shares in issue during the Reporting Period. For the years ended 31 March 2024 and 2023 diluted earnings per share was the same as the basic earnings per share as there were no dilutive shares in issue.– 14 –10. INVENTORIES 20242023 HK$’000 HK$’000 Newsprint and printing materials 46118 58446 Spare parts and supplies 14497 14260 Others 203 0 177 7 6264574483 11. TRADE RECEIVABLES 20242023 HK$’000 HK$’000 Trade receivables 48029 62629 Less: Loss allowance for ECL (292 0) (385 5) 4510958774 The Group allows an average credit of 90 days to its trade customers and no interest is charged.For the individual customers that had a good track record the Group allows a longer credit term for them. All trade receivables are denominated in HK$ and Australian dollars (“AU$”).The following is an ageing analysis of trade receivables after deducting the loss allowance for ECL presented based on invoice dates at the end of the reporting period: 20242023 HK$’000 HK$’000 0 – 60 days 23504 25933 61 – 90 days 5816 7852 Over 90 days 1578 9 2498 9 4510958774 – 15 –12. LOANS AND INTEREST RECEIVABLES The Group seeks to maintain strict control over its loans granting and outstanding loan receivables to minimise credit risk. These loans were approved and monitored by the management of the Group whilst overdue balances are reviewed regularly for recoverability. At 31 March 2024 the Directors reassessed all collaterals located in Hong Kong with reference to recent market price of similar properties with a total market value of approximately HK$704900000 (2023: approximately HK$412040000).If the customers repaid all the principal and interest in accordance with the loan agreement the collateral is released and the transaction is deemed to be completed. In the event of default as defined in the relevant contract by customers the Group might collect and sell the collaterals (through legal proceedings) after taking into legal advice. The risk of unrecoverable principal and interest is compensated by the realisable value of these collaterals. 13. TRADE PAYABLES The credit periods granted by the Group’s suppliers range from 30 to 90 days. Based on the invoice dates the ageing analysis of trade payables at the end of the reporting period is as follows: 20242023 HK$’000 HK$’000 0 – 60 days 3922 10980 61 – 90 days 150 158 Over 90 days 23 2 23 8 430411376 14. BORROWINGS 20242023 HK$’000 HK$’000 Other loan 759 2 757 2 At 31 March 2024 and 2023 the other loan is denominated in AU$ and is made by a non- controlling shareholder of a Subsidiary which is unsecured and bears interest rate at 4% per annum and repayable on demand.– 16 –RESULTS The audited consolidated profit for the year attributable to owners of the Company for the Reporting Period amounted to approximately HK$75096000 a decrease of approximately HK$91468000 or approximately 55% compared with the same period of last year. The revenue of the Group amounted to approximately HK$628996000 representing a decrease of approximately HK$48169000 or approximately 7% compared with the same period of last year. The decrease in profit was mainly attributable to the decline of the overall performance of media business due to the decrease in revenue from publication and advertising and the government no longer provides support subsidies during the Reporting Period while the Group received the government support subsidies of approximately HK$22277000 in the same period of last year the gain on disposal of properties in Australia and the reversal of loss allowance for expected credit losses of license fee receivable from the settlement of the dispute with the hotel operator on license fee receivable in Australia with a total net amount of approximately HK$19472000 in the same period of last year.DIVIDENDS The Directors proposed a final dividend of HK3 cents (2023: Nil) per Share and a special dividend of HK3 cents (2023: Nil) per Share for the Reporting Period payable to the shareholders of the Company (the “Shareholder(s)”) whose names appear on the Register of Members of the Company on Thursday 29 August 2024. No interim dividend was paid by the Company (2023: an interim dividend of HK3 cents per Share and a special dividend of HK2 cents per Share). The dividends for the year amount to HK6 cents (2023: HK5 cents) per Share. The proposed final dividend and special dividend will be payable on or around Wednesday 11 September 2024.CLOSURE OF REGISTER OF MEMBERS For the purpose of ascertaining Shareholders’ entitlement to attend and vote at the AGM to be held on Wednesday 21 August 2024 the Register of Members of the Company will be closed from Thursday 15 August 2024 to Wednesday 21 August 2024 (both days inclusive) during which period no transfer of Shares will be effected. In order to qualify for attending and voting in the forthcoming AGM all transfers accompanied with the relevant Share certificates must be deposited with the Company’s Share registrar Tricor Friendly Limited whose address is at 17/F Far East Finance Centre 16 Harcourt Road Hong Kong for registration no later than 4:30 p.m. on Wednesday 14 August 2024.– 17 –Subject to Shareholders’ approval at the forthcoming AGM the proposed final dividend and special dividend will be distributed to the Shareholders whose names appear on the Register of Members of the Company on Thursday 29 August 2024. For the purpose of ascertaining Shareholders’ entitlement to receive the proposed final dividend and special dividend the Register of Members of the Company will be closed on Thursday 29 August 2024. In order to qualify for payment of the proposed final dividend and special dividend all transfers accompanied with the relevant Share certificates must be deposited with the Company’s Share registrar Tricor Friendly Limited whose address is at 17/F Far East Finance Centre 16 Harcourt Road Hong Kong for registration no later than 4:30 p.m. on Wednesday 28 August 2024. BUSINESS REVIEW “Oriental Daily News” continues to be the best-selling and most widely-read paid newspaper in Hong Kong and has so remained for the last 48 consecutive years. It is truly “The Paper for Hong Kong”.Being a voice for the people has been the foundation of Oriental Daily News in the industry for decades.Oriental Daily News continues to defy those in power adapt to changes and innovate maintain a strong competitive edge concern with people’s livelihood and persistently speak out for the public which demonstrated the value of the media and gained support from extensive readers thus consolidating its leading position in the local media.“on.cc” continues to develop and enrich its contents aiming at becoming the most popular news portal in Hong Kong. During the Reporting Period on.cc accumulated more than 10 million downloads onits mobile app achieving great success. Among others the fastest and most up-to-date “RealtimeNews” platform is widely known for its exclusive coverage and information together with its high resolution photos and videos. In addition on.cc assuming the role of the Fourth Estate in monitoringthe government has launched a brand new integrated information programme “Call on.cc With InstantResponse (东呼即应 )” which has become an instant hit among netizens and attracted a large number of viewers. In order to enable the public to watch the programme at any time with only one click a designated page has been added to the website and mobile app interface allowing them to enjoy thelatest content of the programme directly. A special section on “Call on.cc With Instant Response (东呼即应 )” has been set up for the public to voice out their grievances which had become the mainstay of the programme. Citizens could report their grievances through the 24-hour hotline and the production team will dig into the matters and seek professional advice from experts and scholars and try to identify and resolve the crux of the problem and speak for the victims so as to realise the programme’s mission of “Call on.cc (东呼 )” and get “Instant Response (即应 )” from all sectors of the community. This programme stands for the people of Hong Kong and support for it will get stronger and stronger. It had become a must-have mobile application for many people.– 18 –“onCH” continues to strive for excellence and innovation. During the Reporting Period onCH launched various brand new funny programmes including “Good Clothes And Good Food (好衣好食 )” “WhatAre They Arguing (嘈咩姐!嘈!)” and “Animal World (动物世界)” which explore the latest trends of entertainment and restaurants fashionable outfits social hot topics as well as funny pet news and trivia for the audience from Hong Kong and Mainland China offering fascinating contents. The infotainment programmes “Health Directions (健 康 全 方 位 )” “Cindy Lover (仙 迪LOVER)” and “Chill WithYammy (Yammy带你Chill)” launched in August 2023 cover information on medical matters fashion trends and travel tips providing the most useful information in onCH. In addition a designated page of “Call on.cc With Instant Response (东呼即应)” has been added to onCH which helped the audience to keep abreast of the latest hot topics of concern among the general public. onCH also provides live and rebroadcast sports coverage including the matches of FIFA World Cup Qualification AFC Champions League Hong Kong Premier League A1 Division Championship and other popular sports events allowing readers to enjoy a wide range of sports events anywhere anytime.“Money18” is a free real-time quote website designated by the Stock Exchange. Trusted by Hong Kong investors with nearly one million registered users on its website and mobile app it is undoubtedly one of the most influential real estate and finance information platforms in Hong Kong. The quality and functionality of its programmes are well recognised by stakeholders both within and outside the industry. Money18 also strives to develop live financial programmes. Financial experts have been invited to analyse market trends and share their investment insights with our readers through a wide range of financial programmes and live broadcasts so that readers can understand the pulse of the market and anticipate the best opportunities for investment.Hong Kong borders reopened in the beginning of 2023 which brought a short boom to local economy.However the number of inbound tourists has not been satisfactory and the consumption pattern of tourists is gradually changing. The public is travelling out of Hong Kong and to the Mainland to spend money there after the borders reopened related industries like tourism and retail have been experiencing difficulties despite reopening of the borders. The number of application for deregistration submitted by local companies in the first quarter of 2024 increased drastically which showed the challenging environment for local business. The imminent implementation of various fee-charging policies and the increase in fares of livelihood-related services amid the sluggish economy have added to the operating costs of all industries while aggravating the pressure on household expenditure thus reducing their spending. Under the dual influence of the persistently high interest rate and the levy of Special Stamp Duty the value and number of transactions in Hong Kong’s residential property market fell for consecutive months while the number of negative equity cases and loss selling cases continues to rise.Thus property developers slowed down their selling paces hitting hard on asset values and the property investment market. The global atmosphere remained tense while the Russian-Ukraine war and Israeli- Palestinian conflict do not seem to have any sign of a ceasefire. Local business environment remains uncertain with foreign-invested enterprises relocating their business out of Hong Kong the Hang Seng Index hitting near-decade low and the port container throughput of Hong Kong continuing to drop.In view of the negative factors such as economic downturn and the uncertain business environment the public has become more cautious in spending and advertisers have cut down their advertising budgets in order to reduce operating costs. The Group’s media business faced significant operational challenges during the Reporting Period with overall revenue down by approximately HK$60886000 or approximately 10% compared with the same period of last year. Among others the publication and advertising income of “Oriental Daily News” was approximately HK$464813000 representing a decrease of approximately HK$45087000 or approximately 9% compared with the same period of last year. The revenue from the digital media business stood at approximately HK$99363000 down by approximately HK$15799000 or approximately 14% compared with the same period of last year.– 19 –Although the revenue of print media business recorded a decline during the Reporting Period the increasingly complex global situation and heightened global inflation as well as the persistently high oil prices and transportation costs resulted in a slight decrease in cost of raw materials for print media by approximately HK$1577000 or approximately 2% compared with the same period of last year.In a challenging and difficult operating environment the management kept a tight rein on cost control cutting expenses on staff costs by approximately HK$11985000 or approximately 3% compared with the same period of last year which to some extent offset the falling revenue and the high production costs.Most of the local commercial properties held by the Group in North Point have been leased out and the rental income stood at approximately HK$3548000 during the Reporting Period representing a decrease of approximately HK$201000 or approximately 5% compared with last year. However affected by uncertainties such as the uncertainty over the trend of Hong Kong dollar interest rate the continuous downturn of the local economy and the high vacancy rate of local offices in recent years the valuation of the investment properties held by the Group at the end of the Reporting Period decreased by approximately HK$21817000 or approximately 12% compared to that of last year and to the valuation of the investment properties transferred during the Reporting Period. In addition an impairment loss of approximately HK$5224000 was also recorded in respect of the local leasehold property held by the Group. That said the Group’s segment in Australia performed well leading to a rise in the valuation of the Group’s hotel property by AU$3360000 or approximately 9% compared to that of last year partially offset the loss on valuation of the local investment properties.The money lending business showed steady growth with loan receivables of approximately HK$523917000 at the end of the Reporting Period an increase of approximately HK$224077000 or approximately 75% compared with last year. The average loan-to-value (“LTV”) ratio stood at approximately 74%. During the Reporting Period the effective interest rate of loan receivables from customers was approximately 10% per annum. The total loan interest income amounted to approximately HK$45453000 up by approximately HK$14478000 or approximately 47% compared with the same period of last year. The Group’s money lending business had a solid track record of selecting quality customers for the properties first mortgage loans and mainly undertake short-term loans. Each loan is subject to prudently assessment in terms of mortgage ratios and lending rates in order to control the loan risk. Besides we kept an eye on mortgage repayments and the market value of pledged properties so as to reduce default risk. There were no bad debts recorded in the money lending business during the Reporting Period.At the end of the Reporting Period the Group’s portfolio of outstanding loan receivables are as below: LTV ratio Outstanding Loan annual upon granting loan receivables Borrower interest rate Assets pledged of loans Loan period (HK$ per loan) (Units) (%) (%) (Year(s)) More than 10000000 6 6.96% – 11.52% Hong Kong properties 61% – 70% 1 Not more than 10000000 (*) 2 Not more than 2% Hong Kong properties 50% – 68% 20 (*) Staff loans – 20 –BUSINESS OUTLOOK The global situation has become increasingly complex and geopolitical tensions have intensified with the Russian-Ukrainian war still raging and the conflict in the Middle East escalating again spurring a surge in oil prices and persistent inflation. High interest rates have increased the operating costs of enterprises and undermined the recovery of the property market while tensions between China and the US have not yet eased and the rise of trade protectionism have impacted on global supply chains and the rebuilding of the global economy in the aftermath of the epidemic. However the government has introduced a number of measures to consolidate the momentum of recovery and organised various large-scale sports events and international summit to promote Hong Kong. The complete cancellation of the Special Stamp Duty for residential properties stimulated the transaction volume of residential property advertisers in various industries are scrambling to seize the opportunities to increase their promotional campaign budgets which is expected to boost the Group’s advertising revenue. Besides with international sports events like UEFA European Football Championship and Olympic Games being held in the second half of the year which is expected to bring positive consumer sentiment and help to stimulate the local economy leading to a direct benefit to the Group’s media business. Against the backdrop of the complex geopolitical situation coupled with the change in the global production supply chain it is forecast that global inflation and the trend of transportation costs remain uncertain in 2024 and production costs for the Group’s media business are expected to remain under pressure. The management will continue to implement cost-saving measures and will adjust its inventory level based on the conditions of the printing material market from time to time to minimise costs while maintaining sufficient raw materials for production. The Board is reasonably optimistic that the print media business would remain stable.on.cc has seized the opportunities to launch a stylish advertising format. With an innovative mindset and a bold attitude to achieving a breakthroughs on.cc will work with newspapers through digital technology to provide advertisers with a full range of online and offline cross-platform promotions expanding the target consumer base and rendering potential advertisers greater confidence in the Group’s promotions. on.cc will continue to produce and broadcast a wide range of exciting and popular programmes including the expansion of video programmes on different themes and also sports programmes in cooperation with diversified and international sports events aiming to achieve stronger competitiveness and increase the number of advertisers and readers. Although traditional print newspapers are constantly challenged by digital media the media business remains the Group’s most profitable segment. It proves that Oriental Daily News as the “Paper for Hong Kong” and the best- selling newspaper in Hong Kong has a large readership and an excellent and professional workforce which is capable of keeping up with the times and withstanding any challenge by means of digitisation and complementing with online platforms.Most of the local properties held by the Group have been leased out and are generating steady rental income for the Group. Owing to the downturn in the local office leasing market however rental income is expected to drop in the coming year. Meanwhile the valuation of the hotel property held by the Group in Australia has risen as the tourism industry remains buoyant which also led to a stable growth in the hotel licence fee. The Group has been holding the hotel property for almost two decades accumulating a steady licence fee income and a significant growth in property valuation. The Group continues to actively seek buyers to lock in profits and to increase its cash flow. However the overall office vacancy rate in Hong Kong also reached a record high for several months in a row during the Reporting Period coupled with the high interest rate investors exercise cautions in entering the market. Although the cancellation of the Special Stamp Duty for residential properties by the government has promoted a rise in property transaction volume it will take time to restore investors confidence in the market. The Group will also look for and select high-yield projects for investment carefully.– 21 –The money lending business continues to expand as large-scale properties mortgages continue to be the target clientele of the Group. The overall loan amount granted and the growth in interest income have reached their peak in recent years. Although residential property transactions in Hong Kong have picked up in recent months the overall trend of property prices remains unclear as new residential properties are being sold at low prices the vacancy rate of office buildings is high and the interest rates are high.The management will adopt stringent approval and risk management measures to maximise the return on the money lending business and minimise risks. In addition despite persistently high Hong Kong dollar interest rates the financing market has become more active. The management expects the Group’s money lending business to expand steadily in the coming year and will reserve funds for development and higher returns. The Board is optimistic about the prospect of the money lending business.Rooted in Hong Kong for 55 years the Group has gone through thick and thin with the Hong Kong people. We will speak out fearlessly for people as always. The Group will keep diversifying its operations and accordingly its business risks creating corporate values and maximising returns for its shareholders. The Group will continue to invest in the development of new media business in response to the ever-changing technology and the far-reaching impact of digital media so as to promote the concept of “seeing the world via on.cc”.SIGNIFICANT MATTERS AFTER THE END OF THE REPORTING PERIOD Subsequent to 31 March 2024 save as disclosed elsewhere in the consolidated financial statements the Group has no significant subsequent events.FINANCIAL RESOURCES AND LIQUIDITY The Group always maintains a strong liquidity. The net current assets as at 31 March 2024 amounted to approximately HK$1137831000 (2023: approximately HK$1029465000) which include time deposits bank balances and cash amounting to approximately HK$560937000 (2023: approximately HK$665196000). As at 31 March 2024 the Group’s gearing ratio measured on the basis of total borrowings as a percentage of total shareholders’ equity was 0.4% (2023: 0.4%).CAPITAL EXPENDITURE During the Reporting Period the Group’s capital expenditure was approximately HK$16117000 (2023: approximately HK$4709000).CONTINGENT LIABILITY As at 31 March 2024 the Group had no material contingent liability.EXPOSURE TO FOREIGN EXCHANGE The Group mainly operates in Hong Kong and most of the Group’s transactions are denominated in Hong Kong dollars. The Group is exposed to foreign exchange currency risk on transaction that is in a currency other than the respective functional currency of the Group entities. The currency giving rise to this risk is primarily AU$. Currently the Group does not have foreign currency hedging policy but the management continuously monitors foreign exchange exposure and will consider hedging significant foreign currency exposure where appropriate.– 22 –EMPLOYEES AND REMUNERATION POLICIES As at 31 March 2024 the Group employed 856 employees (2023: 908). Remuneration for employees including medical benefits is determined based on industry practice the performance and working experience of the employees and the prevailing market conditions. The Group has implemented a training scheme to groom a new generation of journalists.CORPORATE GOVERNANCE The Company has complied with all the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the Reporting Period. The Company has adopted most of the recommended best practices stated therein.AUDIT COMMITTEE The audit committee of the Company was established in compliance with Rule 3.21 of the Listing Rules.It has reviewed the accounting principles and practices adopted by the Group and the annual results for the Reporting Period with the management.SCOPE OF WORK OF MAZARS CPA LIMITED The figures in respect of this announcement of the Group for the Reporting Period have been reviewed and agreed by the Company’s auditor Mazars CPA Limited (“Mazars”) to the amounts set out in the Group’s audited consolidated financial statements for the Reporting Period. The work performed by Mazars in this respect did not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the HKICPA and consequently no assurance has been expressed by Mazars on this announcement.MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as the Company’s model code for Directors’ securities transactions (the “Model Code”) .Following specific enquiries by the Company all Directors have confirmed in writing their compliance with the required standards set out in the Model Code for the Reporting Period.PURCHASE SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES During the Reporting Period neither the Company nor any of the Subsidiaries had purchased sold or redeemed any of the Company’s listed securities.AGM The AGM will be held on Wednesday 21 August 2024 and the notice of AGM will be published and dispatched in the manner as required by the Listing Rules in due course.– 23 –PUBLICATION OF ANNUAL RESULTS ANNOUNCEMENT AND ANNUAL REPORT This announcement is published on the website of the Company at https://oeh.on.cc and on the website of the Stock Exchange at www.hkexnews.hk. The annual report for the Reporting Period containing all the information required by Appendix D2 to the Listing Rules will be dispatched to the Shareholders and published on the aforesaid websites of the Company and the Stock Exchange in accordance with the Listing Rules in due course.On behalf of the Board Oriental Enterprise Holdings Limited Ching-fat MA Chairman Hong Kong 21 June 2024 As at the date hereof the Board comprises seven directors of which three are executive Directors namely Mr. Ching-fat MA (Chairman) Mr. King-ho MA (Vice Chairman) and Mr. Shun-chuen LAM (Chief Executive Officer) one non-executive Director namely Mr. Dominic LAI and three independent non-executive Directors namely Mr. Yau-nam CHAM Mr. Yat-fai LAM and Ms. Ching-wah YIP.–24–