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Announcement of Annual Results for the Year Ended 31 March 2024

2024-06-28 00:00:00

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.HKC INTERNATIONAL HOLDINGS LIMITED 香港通讯国际控股有限公司* (Incorporated in the Cayman Islands with limited liability) (Stock code: 248) ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2024 The board of directors (the “Board”) of HKC International Holdings Limited (the “Company”) is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31 March 2024 together with audited comparative figures for the year ended 31 March 2023 as follows: CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2024 20242023 Notes HK$’000 HK$’000 Revenue 3 176302 169524 Cost of sales (130929) (140883) Gross profit 45373 28641 Other income gains and losses 4 1818 3423 Fair value loss on investment properties (18090) (9621) Fair value (loss) gain on financial assets at fair value through profit and loss (“FVTPL”) (332) 154 Impairment loss on trade receivables and contract assets net of reversal (2392) (451) Selling and distribution expenses (6377) (6918) Administrative and other operating expenses (32302) (29932) Finance costs 5 (9690) (4864) * For identification purpose only 120242023 Notes HK$’000 HK$’000 Loss before taxation 6 (21992) (19568) Taxation 7 24 – Loss for the year attributable to equity holders of the Company (21968) (19568) Other comprehensive (expense) income Items that may be reclassified subsequently to profit or loss Exchange differences on translation of overseas operations (553) (355) Realisation of exchange reserve upon deregistration of a subsidiary 50 – (503)(355) Item that will not be reclassified subsequently to profit or loss Change in fair value of financial assets at fair value through other comprehensive income (“FVTOCI”) 447 1619 Other comprehensive (expense) income for the year (56) 1264 Total comprehensive expense attributable to equity holders of the Company (22024) (18304) LOSS PER SHARE – (HK CENTS) – basic and diluted 8 (1.76) (1.57) 2CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 March 2024 20242023 Notes HK$’000 HK$’000 NON-CURRENT ASSETS Property plant and equipment 49690 50426 Investment properties 165200 193000 Financial assets at FVTPL 9442 9145 Financial assets at FVTOCI – 9854 224332262425 CURRENT ASSETS Inventories 12592 15906 Contract assets 10 119553 78344 Financial assets at FVTPL 398 596 Trade receivables 11 23796 19275 Prepayments deposits and other receivables 8917 12644 Tax recoverable 133 176 Pledged bank deposits 2765 2667 Cash and bank balances 22699 35463 190853165071 CURRENT LIABILITIES Trade payables 12 2160 4164 Accruals and other payables 12 5481 7237 Contract liabilities 2600 2137 Amounts due to directors 3000 10000 Lease liabilities 383 72 Bank borrowings 159031 140478 Tax payable 30 30 172685164118 320242023 HK$’000 HK$’000 NET CURRENT ASSETS 18168 953 TOTAL ASSETS LESS CURRENT LIABILITIES 242500 263378 NON-CURRENT LIABILITIES Lease liabilities 90 – Deferred tax liabilities 49 50 13950 NET ASSETS 242361 263328 CAPITAL AND RESERVES Share capital 12453 12453 Reserves 229908 250875 TOTAL EQUITY 242361 263328 4NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PREPARATION These consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) (which also include Hong Kong Accounting Standards (“HKASs”) and Interpretations (“Int(s)”)) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. These consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (“the Listing Rules”). They have been prepared under the historical cost convention except for certain financial instruments and investment properties which have been measured at fair values. These consolidated financial statements are presented in Hong Kong Dollars (“HK$”) and all values are rounded to the nearest thousand except where otherwise indicated. 2. APPLICATION OF NEW AND AMENDMENTS TO HKFRSs AND CHANGE IN ACCOUNTING POLICIES Application of new and amendments to HKFRSs In the current year the Group has applied for its first time the following new and amendments to HKFRSs issued by HKICPA which are effective for the Group’s financial year beginning on 1 April 2023. HKFRS 17 (including the October 2020 Insurance Contracts and February 2022 amendments to HKFRS 17) Amendments to HKAS 1 and Disclosure of Accounting Policies HKFRS Practice Statement 2 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 The application of the new and amendments to HKFRSs in the current year has had no material effect on the Group’s financial performance and positions for the current and prior periods and/or on the disclosures set out in these consolidated financial statements.Change in accounting policy New HKICPA guidance on the accounting implications of the abolition of the mandatory provident fund (“MPF”) – long service payment (“LSP”) offsetting mechanism In June 2022 the Hong Kong SAR Government (the “Government”) gazetted the Hong Kong Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 (the “Amendment Ordinance”) which will come into effect from 1 May 2025 (the “Transition Date”). Once the Amendment Ordinance takes effect an employer can no longer use any of the accrued benefits derived from its mandatory contributions to MPF scheme to reduce theLSP in respect of an employee’s service from the Transition Date (the abolition of the “offsettingmechanism”). In addition the LSP in respect of the service before the Transition Date will be calculated based on the employee’s monthly salary immediately before the Transition Date and theyears of service up to that date. In July 2023 the HKICPA published “Accounting implications ofthe abolition of the MPF-LSP offsetting mechanism in Hong Kong” that provides accounting guidance relating to the offsetting mechanism and the abolition of the mechanism. 5The Group has considered the accrued benefits derived from mandatory MPF contributions that are expected to be used to reduce the LSP payable to an employee as deemed contributions by that employee towards the LSP. Based on the HKICPA guidance upon the enactment of the Amendment Ordinance in June 2022 these deemed contributions should be attributed to periods of service in the same manner as the gross LSP benefit applying HKAS19.93(a).The Group has determined that the Amendment Ordinance has no material impact on the Group’s results and financial position for the current or prior periods.Amendments to HKFRSs issued but not yet effective The Group has not early applied the following amendments to HKFRSs that have been issued but are not yet effective: Amendments to HKFRS 10 and HKAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture3 Amendments to HKFRS 16 Lease Liability in a Sale and Leaseback1 Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and the related amendments to Hong Kong Interpretation 5 (2020) Presentation of Financial Statements – Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause1 Amendments to HKAS 1 Non-current Liabilities with Covenants1 Amendments to HKAS 7 and HKFRS 7 Supplier Finance Arrangements1 Amendments to HKAS 21 Lack of Exchangeability2 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 Effective for annual periods beginning on or after a date to be determined. The directors of the Company anticipate that the application of the amendments to HKFRSs will have no material impact on the results and the financial position of the Group. 63. SEGMENTAL INFORMATION Information reported to the executive directors as chief operating decision maker for the purposes of resource allocation and assessment of segment performance focuses on types of goods or services delivered or provided. The directors of the Company have chosen to organise the Group around differences in products and services. No operating segments identified by the chief operating decision maker have been aggregated in arriving at the reportable segments of the Group.Specifically the Group’s reportable segments are as follows: 1. Sales of mobile phones in Hong Kong 2. Sales of IOT solutions in Hong Kong 3. Sales of IOT solutions in Mainland China and other countries in South East Asia 4. Property investment For the purposes of monitoring segment performance and allocating resources between segments: * all assets are allocated to reportable segments other than financial assets at FVTOCI and financial assets at FVTPL.* all liabilities are allocated to reportable segments other than deferred tax liabilities. 7The following is an analysis of the Group’s revenue and results by reportable and operating segments.Segment revenues and results For the year ended 31 March 2024 Sales of IOT solutions in Mainland Sales of China mobile Sales of IOT and other phones in solutions in countries in Property Inter-segment Hong Kong Hong Kong South East Asia investment elimination Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 REVENUES Revenue 29047 142859 32315 1444 (29363) 176302 Less: i nter-segment revenue – – (29147) (216) 29363 – Reportable segment revenue-external 29047 142859 3168 1228 – 176302 Reportable segment (loss) profit (5670) 1039 3688 (2627) – (3570) Segment assets and liabilities: Reportable segment assets 8669 197526 18713 180437 – 405345 Reportable segment liabilities 30175 138898 3194 508 – 172775 Other segment information: Amounts included in the measure of segment profit or loss or segment assets Interest income from bank deposits 491 – – – – 491 Finance costs 1220 8309 23 138 – 9690 Depreciation 103 1530 267 31 – 1931 Write-off of inventories 18 – – – – 18 (Reversal of) provision for impairment of trade receivables (20) 369 91 – – 440 Provision for (reversal of) impairment of contract assets – 1956 (4) – – 1952 Additions to non-current assets 2 606 635 23 – 1266 8For the year ended 31 March 2023 Sales of IOT solutions in Mainland China Sales of mobile Sales of IOT and other phones in solutions in countries in Property Inter-segment Hong Kong Hong Kong South East Asia investment elimination Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 REVENUES Revenue 75039 82617 14937 2082 (5151) 169524 Less: inter-segment revenue (77) – (4858) (216) 5151 – Reportable segment revenue-external 74962 82617 10079 1866 – 169524 Reportable segment (loss) profit (3325) 2193 (8930) (39) – (10101) Segment assets and liabilities: Reportable segment assets 80595 116940 9581 200785 – 407901 Reportable segment liabilities 65020 79924 3404 15770 – 164118 Other segment information: Amounts included in the measure of segment profit or loss or segment assets Interest income from bank deposits 270 – – – – 270 Finance costs 2182 2089 13 580 – 4864 Depreciation 1374 253 420 82 – 2129 Write-off of inventories 297 – – – – 297 (Reversal of) provision for impairment of trade receivables (147) 199 16 – – 68 Provision for impairment of contract assets – 376 7 – – 383 Additions to non-current assets 438 141 51 2 – 632 The accounting policies of the reportable segments are the same as the Group’s accounting policies.Segment (loss) profit represents the (loss) profit earned by each segment without allocation of fair value change in financial assets at FVTPL and fair value loss on investment properties. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance. 9Geographical information Information about the Group’s revenue from external customers is presented based on the location of the Group’s operations. Information about the Group’s non-current assets is presented based on the geographical location of the assets.Revenues from external customers Non-current assets* 2024202320242023 HK$’000 HK$’000 HK$’000 HK$’000 Hong Kong (place of domicile) 173023 159007 214191 231196 Mainland China 581 6463 199 257 Singapore 2698 4054 500 11973 32791051769912230 176302169524214890243426 * Non-current assets exclude financial assets at FVTPL and financial assets at FVTOCI.Reconciliations of reportable segment profit or loss before taxation 20242023 HK$’000 HK$’000 PROFIT OR LOSS Total reportable segment loss (3570) (10101) Fair value loss on investment properties (18090) (9621) Fair value (loss) gain on financial assets at FVTPL (332) 154 Consolidated loss before taxation (21992) (19568) Reconciliations of reportable segment assets and liabilities 20242023 HK$’000 HK$’000 ASSETS Total reportable segment assets 405345 407901 Unallocated corporate assets 9840 19595 Consolidated total assets 415185 427496 LIABILITIES Total reportable segment liabilities 172775 164118 Deferred tax liabilities 49 50 Consolidated total liabilities 172824 164168 10Information about major customers Revenue from customers of the corresponding year contributing over 10% of the total revenue of the Group is as follows: 20242023 HK$’000 HK$’000 Customer A# 106442 47524 # Revenue from sale of IOT solutions in Hong Kong segment. 4. OTHER INCOME GAINS AND LOSSES 20242023 HK$’000 HK$’000 Bank interest income 491 270 Dividend income 1378 1378 Gain on deregistration of a subsidiary 50 – Loss on disposal of the property plant and equipment (54) – Exchange loss (80) (22) Government grant1 31 1756 Others 2 41 18183423 Note: 1 During the year ended 31 March 2024 the Group recognised government grants of HK$31000 (2023: HK$13000) relating to the subsidy from the Singapore government.There are no unfulfilled conditions and other contingencies attached to the receipts of the subsidy. During the year ended 31 March 2023 the Group recognised government grants of HK$1743000 relating to Employment Support Scheme provided by the Government of the Hong Kong Special Administrative Region under the Anti-Epidemic Fund. 115. FINANCE COSTS 20242023 HK$’000 HK$’000 Interest on bank borrowings 9373 4651 Interest on lease liabilities 12 13 Total interest expenses 9385 4664 Bank charges 305 200 96904864 6. LOSS BEFORE TAXATION Loss before taxation has been arrived at after charging (crediting): 20242023 HK$’000 HK$’000 Auditor’s remuneration 703 703 Depreciation on: – Property plant and equipment 1697 1764 – Right-of-use assets 234 365 19312129 Employee benefits expenses (including directors’ emoluments) – Salaries allowances and benefits in kind 20035 19004 – Retirement benefit scheme contributions (Note (i)) 1666 1572 – Share-based payment 1057 830 Total staff costs 22758 21406 Impairment loss on trade receivables 440 68 Impairment loss on contract assets 1952 383 Write-off of inventories (included in cost of sales) (Note (ii)) 18 297 Donations 250 – Gross rental income from investment properties under operating leases less outgoings of HK$745000 (2023: HK$466000) (483) (1400) Notes: (i) Forfeited contributions in respect of unvested benefits of employees leaving the Group’s employment cannot be used to reduce ongoing contributions.(ii) During the year ended 31 March 2024 the Group wrote off certain inventories of HK$18000 (2023: HK$297000) as they are no longer suitable for use. 127. TAXATION The Group’s subsidiaries operating in Hong Kong are subject to Hong Kong Profits Tax. Under the two tiered profits tax rates regime the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25% and profits above HK$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%.No provision for Hong Kong Profits Tax was made for the years ended 31 March 2024 and 2023 as there were no assessable profits generated during both years.Taxes on profits assessable in elsewhere have been calculated at the rates of tax prevailing in those places in which the Group operates based on existing legislation interpretations and practices in respect thereof. In general the Group’s subsidiaries operating in the PRC are subject to the Enterprise Income Tax rate of 25% and those operating in Singapore and Thailand are subject to Singapore Corporate Tax rate and Thailand Corporate Tax rate of 17% and 20% respectively.No provision for Enterprise Income Tax of the PRC Singapore Corporate Tax and Thailand Corporate Tax has been made as the Group did not have any assessable profits subject to tax in the PRC Singapore and Thailand respectively for the years ended 31 March 2024 and 2023. 8. LOSS PER SHARE The calculation of the basic and diluted loss per share is based on the following data: 20242023 HK$’000 HK$’000 Loss attributable to equity holders of the Company (21968) (19568) Number Number of shares of shares Number of shares Weighted average number of ordinary shares for the purpose of basic and diluted loss per share 1245331256 1245331256 As a result of the Group’s net loss for the years ended 31 March 2024 and 2023 share options outstanding were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive. 9. DIVIDEND No dividend was paid or proposed during the year ended 31 March 2024 nor has any dividend been proposed since the end of the reporting period (2023: nil). 1310. CONTRACT ASSETS 20242023 HK$’000 HK$’000 Smart systems construction service 121735 79083 Less: Loss allowance (2182) (739) 11955378344 11. TRADE RECEIVABLES 20242023 HK$’000 HK$’000 Trade debtors 25056 22196 Less: Loss allowance (1260) (2921) 2379619275 The Group does not hold any collateral over these receivables.At as 31 March 2024 the gross amount of trade receivable arising from contracts with customers amounted to approximately HK$25056000 (2023: HK$22196000).Ageing analysis The Group allows average credit period ranging from seven days to one month to its customers. The following is an aged analysis of trade receivables presented based on the invoice date at the end of the reporting period. In addition for certain customers with long-established relationship and have good credit worthiness a longer credit period may be granted. 20242023 HK$’000 HK$’000 Within 30 days 19085 11497 31 to 60 days 670 4857 61 to 90 days 2560 435 91 to 180 days 1057 1024 181 to 365 days 400 525 Over 365 days 1284 3858 2505622196 1412. TRADE PAYABLES ACCRUALS AND OTHER PAYABLES 20242023 HK$’000 HK$’000 Trade payables 2160 4164 Accruals and deposit received 5481 7237 764111401 The following is an aged analysis of accounts payable presented based on the invoice date at the end of the reporting period. 20242023 HK$’000 HK$’000 0 – 30 days 943 3360 31 – 60 days 187 3 61 – 90 days 155 32 Over 90 days 875 769 21604164 The trade payables were due according to the terms stated in the relevant contracts. The average credit period on purchase of goods is 30 to 60 days. The Group has financial risk management policies in place to ensure that all payables are settled within the credit timeframe. 15MANAGEMENT DISCUSSION AND ANALYSIS For the year ended 31 March 2024 the Group’s turnover increased by 4% to HK$176 million (2023: HK$170 million) and loss attributable to equity holders of the Company was HK$22 million as compared with the loss of HK$20 million for the year ended 31 March 2023.SALES OF MOBILE PHONES The turnover decreased from HK$75 million to HK$29 million during the year under review due to weak demand and the division recorded loss of HK$6 million (2023: HK$3 million).SALES OF IOT SOLUTIONS During the year under review the turnover increased from HK$93 million to HK$146 million and the division recorded profit of HK$5 million (2023: loss of HK$7 million).PROPERTY INVESTMENT During the year under review the rental income decreased from HK$1.9 million to HK$1.2 million and the division recorded loss of HK$3 million (2023: HK$0.1 million).PROSPECTS Regarding the mobile phone business we are the authorised distributors of both Nokia and vivo brands. We expect that the sales for the coming year will be weak due to the decrease in overall demand of the mobile phones.For IOT solutions segment we will develop new and innovative products to meet market demand. We expect that the sales will be stable.Regarding the property investment segment the weak demand of the leasing market still affects the occupancy rate. The rental income for the coming year will depend upon the success to lease our vacant properties.LIQUIDITY AND FINANCIAL RESOURCES As at 31 March 2024 the Group’s cash and bank balances amounted to approximately HK$25 million (2023: HK$38 million) while the bank borrowings were HK$159 million (2023: HK$140 million). Additional bank loans were obtained to finance new projects which will be implemented in the coming two years. The Board believes that the Group has sufficient cash balances and banking facilities to satisfy its commitments and working capital requirements. 16GEARING RATIO The gearing ratio was 66% (2023: 53%) which is expressed as a percentage of total borrowings to shareholders’ equity.CAPITAL STRUCTURE There was no change to the Group’s capital structure for the year ended 31 March 2024.CAPITAL EXPENDITURE During the year the Group spent HK$1.3 million on property plant and equipment.EMPLOYEES As at 31 March 2024 the total number of employees of the Group was 100 (2023: 99) and the aggregate remuneration of employees (excluding directors’ emoluments) amounted to HK$18 million (2023: HK$17 million). The remuneration and bonus packages of the employees are based on the individual merits and performance and are reviewed at least annually. The Group maintains a good relationship with its employees.PLEDGE OF ASSETS As at 31 March 2024 the Group’s general banking facilities were secured by (1) first legal charge on certain leasehold land and buildings with total carrying value of HK$47783000 (2023: HK$48846000) (2) first legal charge on certain investment properties with total fair value of HK$165200000 (2023: HK$182400000) (3) bank deposits of HK$2765000 (2023: HK$2667000) and (4) financial assets at FVTPL with total fair value of HK$9206000 (2023: HK$9145000).FOREIGN EXCHANGE FLUCTUATIONS The Group’s assets and liabilities are mainly denominated in Hong Kong Dollars Chinese Renminbi and Singapore Dollars. Income and expenses derived from operations in PRC and Singapore are mainly denominated in Chinese Renminbi and Singapore Dollars respectively. There is no significant exposure to the fluctuations of foreign exchange rates but the Group is closely monitoring the financial market and would consider appropriate measures if required. The Group has no hedging arrangement for foreign currencies and has not involved in the financial derivatives.CONTINGENT LIABILITIES As at 31 March 2024 the Company had provided corporate guarantees of HK$138 million (2023: HK$118 million) to secure general banking facilities granted to the subsidiaries. 17CLOSURE OF REGISTER OF MEMBERS The register of members of the Company will be closed from Wednesday 21 August 2024 to Friday 23 August 2024 (both days inclusive) during which period no transfers of shares will be registered. In order to qualify for attending and voting at the forthcoming annual general meeting all transfers accompanied by the relevant share certificates must be lodged with the Company’s Hong Kong branch registrar Pilare Limited at 17th Floor Leighton Center 77 Leighton Road Causeway Bay Hong Kong for registration not later than 4:30 p.m. on Tuesday 20 August 2024.CORPORATE GOVERNANCE The Board considers that good corporate governance is central to safeguarding the interests of the shareholders customers employees and other stakeholders of the Group.The Company had complied throughout the year ended 31 March 2024 with the codeprovisions of the Corporate Governance Code (the” Code”) contained in Appendix 14 to the Listing Rules except the following provisions: Code provision A.2.1 stipulates that the roles of chairman and chief executive officer should be separate and should not be performed by the same individual. The Company does not segregate the roles of chairman and chief executive officer and Mr. Chan Chung Yee Hubert currently holds both positions. The Board believes that vesting the roles of chairman and chief executive officer in the same person provides the Group with strong and consistent leadership in the development and execution of long-term business strategies. The Board will continuously review and improve the corporate governance practices and standards of the Company to ensure that business activities and decision making processes are regulated in a proper and prudent manner.Code provision A.6.7 stipulates among other things that the independent non-executive directors and other non-executive directors should attend general meetings. Mr. Chiu Ngar Wing and Dr. Chu Chor Lup did not attend the annual general meeting of the Company held on 25 August 2023 due to their other commitments.REVIEW OF PRELIMINARY ANNOUNCEMENT OF RESULTS BY THE INDEPENDENT AUDITOR The figures in respect of the Group’s consolidated statement of financial position consolidated statement of comprehensive income and the related notes thereto for the year ended 31 March 2024 as set out in the preliminary announcement have been agreed by the Group’s auditor SHINEWING (HK) CPA Limited to the amounts set out in the Group’s audited consolidated financial statements for the year. The work performed by SHINEWING (HK) CPA Limited 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 SHINEWING (HK) CPA Limited on the preliminary announcement. 18COMPLIANCE WITH THE MODEL CODE SET OUT IN APPENDIX 10 TO THE LISTING RULES The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (“Model Code”) set out in Appendix 10 to the Listing Rules as its own code of conduct regarding directors’ securities transactions. Having made specific enquiry of all directors each of the directors confirmed that he had complied with the required standard set out in the Model Code during the year ended 31 March 2024.AUDIT COMMITTEE During the year the audit committee reviewed the unaudited condensed interim financial statements for the six months ended 30 September 2023 and the audited consolidated financial statements for the year ended 31 March 2024 with recommendations to the Board for approval reviewed reports on internal control system of the Group and discussed with the management and the external auditor the audit plans the accounting policies and practices which may affect the Group and financial reporting matters.PURCHASE SALE OR REDEMPTION OF THE COMPANY’S LISTED SHARES There was no purchase sale or redemption of the Company’s listed shares by the Company or any of its subsidiaries during the year.APPRECIATION The Board would like to extend its sincere gratitude to the Company’s shareholders business counterparts and all management and staff members of the Group for their contribution and continued support during the year.ANNUAL GENERAL MEETING AND DESPATCH OF ANNUAL REPORT The annual general meeting (“AGM”) of the Company will be held on Friday 23 August 2024. The annual report of the Company for the year ended 31 March 2024 together with the notice of the AGM will be dispatched to shareholders of the Company and will be published on the Company’s website at “www.hkc.com.hk” and the website of The Hong Kong Exchange and Clearing Limited at “www.hkexnews.hk” in due course.BOARD OF DIRECTORS As at the date of this announcement the Board comprises Mr. Chan Chung Yee Hubert Mr. Chan Chung Yin Roy Mr. Chan Ming Him Denny Mr. Wu Kwok Lam Mr. Ip Man Hon and Mr. Lam Man Hau as executive directors and Mr. Chiu Ngar Wing Dr.Chu Chor Lup Dr. Law Ka Hung and Mr. Wong Kwok Leung as independent non-executive directors.On behalf of the Board Chan Chung Yee Hubert Chairman Hong Kong 28 June 2024 19