ANNUAL RESULTS ANNOUNCEMENT 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.KNT HOLDINGS LIMITED 嘉艺控股有限公司* (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1025) ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 2024 FINANCIAL HIGHLIGHTS For the year ended 31 March 2024 * Revenue was approximately HK$54.3 million (2023: approximately HK$71.7 million).* Gross profit was approximately HK$7.5 million (2023: approximately HK$8.8 million).* Loss for the year was approximately HK$24.4 million (2023: approximately HK$31.3 million).* Basic and diluted loss per share was approximately HK2.9 cents (2023: HK3.7 cents) * The Board does not recommend the payment of a final dividend (2023: nil).*　For identification purpose only 1The board of directors (the “Board”) of KNT Holdings Limited (the “Company”) is pleased to announce the audited consolidated financial results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31 March 2024 together with the comparative figures for the year ended 31 March 2023.CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the year ended 31 March 2024 20242023 Notes HK$’000 HK$’000 Revenue 4 54312 71667 Cost of sales (46862) (62860) Gross profit 7450 8807 Other income 424 1134 Other gains and losses net (649) (461) Selling and distribution expenses (5592) (6650) Administrative expenses (22485) (27116) Impairment loss reversed (recognised) in respect of trade receivables net 6 (7) Impairment loss recognised in respect of property plant and equipment (56) (1858) Finance costs (1230) (897) Share of results of associates (2311) (4089) Loss before taxation (24443) (31137) Income tax expense 5 (1) (147) Loss for the year 6 (24444) (31284) HK cents HK cents Loss per share 8 Basic (2.9) (3.7) Diluted (2.9) (3.7) 2CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 March 2024 20242023 Note HK$’000 HK$’000 Loss for the year 6 (24444) (31284) Other comprehensive (expense) income for the year: Items that will not be reclassified to profit or loss: – Net (loss) gain on revaluation of properties (2094) 198 – Deferred taxation relating to revaluation of properties 541 162 Item that may be reclassified subsequently to profit or loss: – Exchange differences arising on translation of foreign operation (45) (626) Other comprehensive expense for the year net of tax (1598) (266) Total comprehensive expense for the year (26042) (31550) 3CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 March 2024 20242023 Notes HK$’000 HK$’000 Non-current assets Property plant and equipment 29604 33445 Investment properties 11200 12300 Right-of-use assets 115 323 Intangible asset 26 52 Interests in associates – 2311 4094548431 Current assets Inventories 9340 6416 Trade receivables 9 7121 9823 Deposits prepayments and other receivables 36699 34734 Amount due from an associate 11597 11547 Bank balances and cash 4432 3155 6918965675 Current liabilities Trade payables 10 3817 3969 Other payables and accruals 10534 6844 Amounts due to directors 17077 7500 Contract liabilities 4712 2222 Lease liabilities 43 248 Borrowings 11(a) 16599 9260 Bank overdrafts 11(b) 5876 5962 5865836005 Net current assets 10531 29670 Total assets less current liabilities 51476 78101 420242023 Note HK$’000 HK$’000 Non-current liabilities Lease liabilities – 43 Deferred tax liabilities 4945 5485 49455528 Net assets 46531 72573 Capital and reserves Share capital 12 8424 8424 Reserves 38107 64149 Total equity 46531 72573 5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL INFORMATION KNT Holdings Limited (the “Company”) was incorporated in the Cayman Islands as an exempted company with limited liability and its shares are listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The address of the Company’s registered office is Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands and the address of principal place of business is 30th Floor EW International Tower No. 120 Texaco Road Tsuen Wan New Territories Hong Kong.The principal activity of the Company is investment holding. The principal activities of the subsidiaries of the Company are manufacturing and trading of garment products.The consolidated financial statements are presented in Hong Kong Dollars (“HK$”) which is also the functional currency of the Company. 2. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) New and amendments to HKFRSs that are mandatorily effective for the current year In the current year the Group has applied the following amendments to HKFRSs issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) for the first time which are mandatorily effective for the Group’s annual periods beginning on 1 April 2023 for the preparation of the financial statements: HKFRS 17 (including the Insurance Contracts October 2020 and February 2022 Amendments to HKFRS 17) 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 Amendments to HKAS 1 and Disclosure of Accounting Policies HKFRS Practice Statement 2 Except as described below the application of the new and amendments to HKFRSs in the current year has had no material impact on the Group’s financial positions and performance for the current and prior years and/or on the disclosures set out in these consolidated financial statements. 6Impacts on application of Amendments to HKAS 1 and HKFRS Practice Statement 2 Disclosure of Accounting Policies The Group has applied the amendments for the first time in the current year. HKAS 1 Presentation of Financial Statements is amended to replace all instances of the term “significant accounting policies” with “material accounting policy information”. Accounting policy information is material if when considered together with other information included in an entity’s financial statements it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.The amendments also clarify that accounting policy information may be material because of the nature of the related transactions other events or conditions even if the amounts are immaterial. However not all accounting policy information relating to material transactions other events or conditions is itself material. If an entity chooses to disclose immaterial accounting policy information such information must not obscure material accounting policy information.HKFRS Practice Statement 2 Making Materiality Judgements (the “Practice Statement”) is also amended to illustrate how an entity applies the “four-step materiality process” to accounting policy disclosures and to judge whether information about an accounting policy is material to its financial statements. Guidance and examples are added to the Practice Statement.The application of the amendments has had no material impact on the Group’s financial positions and performance but has affected the disclosure of the Group’s accounting policies set out in the consolidated financial statements. 7Amendments to HKFRSs issued but not yet effective The Group has not early applied the following new and amendments to HKFRSs that have been issued but are not yet effective: Amendments to HKFRS 10 and Sale or Contribution of Assets between an Investor and its HKAS 28 Associate or Joint Venture1 Amendments to HKFRS 16 Lease Liability in a Sale and Leaseback2 Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related amendments to Hong Kong Interpretation 5 (2020)2 Amendments to HKAS 1 Non-current Liabilities with Covenants2 Amendments to HKAS 7 and Supplier Finance Arrangements2 HKFRS 7 Amendments to HKAS 21 Lack of Exchangeability3 1 Effective for annual periods beginning on or after a date to be determined. 2 Effective for annual periods beginning on or after 1 January 2024. 3 Effective for annual periods beginning on or after 1 January 2025. Except for the amendments to HKFRSs mentioned below the directors of the Company anticipate that the application of all other new and amendments to HKFRSs will have no material impact on the consolidated financial statements in the foreseeable future.Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related amendments to Hong Kong Interpretation 5 (2020) (the “2020 Amendments”) and Amendments to HKAS 1 Non-current Liabilities with Covenants (the “2022 Amendments”) The 2020 Amendments provide clarification and additional guidance on the assessment of right to defer settlement for at least twelve months from reporting date for classification of liabilities as current or non- current which: * clarify that if a liability has terms that could at the option of the counterparty result in its settlement by the transfer of the entity’s own equity instruments these terms do not affect its classification as current or non-current only if the entity recognises the option separately as an equity instrument applying HKAS 32 Financial Instruments: Presentation.* specify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period. Specifically the amendments clarify that the classification should not be affected by management intentions or expectations to settle the liability within 12 months. 8For rights to defer settlement for at least twelve months from reporting date which are conditional on the compliance with covenants the requirements introduced by the 2020 Amendments have been modified by the 2022 Amendments. The 2022 Amendments specify that only covenants with which an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date. Covenants which are required to comply with only after the reporting period do not affect whether that right exists at the end of the reporting period.In addition the 2022 Amendments specify the disclosure requirements about information that enables users of financial statements to understand the risk that the liabilities could become repayable within twelve months after the reporting period if an entity classifies liabilities arising from loan arrangements as non-current when the entity’s right to defer settlement of those liabilities is subject to the entity complying with covenants within twelve months after the reporting period.The 2022 Amendments also defer the effective date of applying the 2020 Amendments to annual reporting periods beginning on or after 1 January 2024. The 2022 Amendments together with the 2020 Amendments are effective for annual reporting periods beginning on or after 1 January 2024 with early application permitted. If an entity applies the 2020 Amendments for an earlier period after the issue of the 2022 Amendments the entity should also apply the 2022 Amendments for that period. Based on the Group’s outstanding liabilities as at 31 March 2024 the application of the 2020 and 2022 Amendments will not result in reclassification of the Group’s liabilities. 3. BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements have been prepared in accordance with HKFRSs issued by the HKICPA. For the purpose of preparation of the consolidated financial statements information is considered material if such information is reasonably expected to influence decisions made by primary users. In addition the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and by the Hong Kong Companies Ordinance. 94. REVENUE AND SEGMENT INFORMATION Revenue represents the fair value of amounts received and receivable for goods sold by the Group net of discounts.An analysis of revenue from operations is as follows: 20242023 HK$’000 HK$’000 Sales of garment products recognised at a point in time Bridesmaid dresses 25233 35045 Bridal gowns 4285 6320 Special occasion dresses 9749 13471 Accessories 11002 14498 Others (note) 4043 2333 Total 54312 71667 Note: Others include sales of fashion apparels fabrics and other garment accessories. 20242023 HK$’000 HK$’000 Geographical markets United States of America 22548 29482 Hong Kong 19689 19106 Europe 5078 12673 United Kingdom 5489 8278 Australia 1508 1991 Others – 137 Total 54312 71667 Segment information The Group’s operation is solely derived from manufacturing and trading of garment products during the year. For the purpose of resources allocation and performance assessment the chief operating decision maker (i.e. the executive directors of the Company) reviews revenue analysis by geographic location of customers overall results and financial position of the Group as a whole based on same accounting policies. No other discrete financial information is provided other than the Group’s result and financial position as a whole. Accordingly only entity-wide disclosures are presented. 10Geographical information The Group’s operations are mainly located in Hong Kong and the PRC. All non-current assets as at 31 March 2024 and 2023 were located in Hong Kong and the non-current assets located in the PRC had been fully impaired.The Group’s revenue from external customers based on the location of customers are disclosed above in this note.Information about major customers Revenue from customers individually contributing over 10% of the Group’s revenue during the year are as follows: 20242023 HK$’000 HK$’000 Customer A 11002 14498 Customer B N/A* 11107 Customer C N/A* 7693 Customer D 6772 N/A* * The corresponding revenue did not contribute over 10% of the total revenue of the Group. 5. INCOME TAX EXPENSE Income tax expense relating to operations has been recognised in profit or loss as follows: 20242023 HK$’000 HK$’000 Under provisions in prior years – PRC Enterprise Income Tax – 146 Deferred tax charge 1 1 Income tax expense 1 147 Under the two-tiered profits tax rates regime in Hong Kong the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25% and profits above HK$2 million will be taxed at 16.5%. The profits of corporations not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%. No Hong Kong Profits Tax has been provided in the consolidated financial statements as the subsidiaries of the Group operating in Hong Kong have no assessable profits for both years.Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”) and Implementation Regulation of the EIT Law the tax rate of the PRC subsidiary is 25% for both years.No PRC Enterprise Income Tax has been provided in the consolidated financial statements as the PRC subsidiaries of the Group have no assessable profits for both years. 116. LOSS FOR THE YEAR 20242023 HK$’000 HK$’000 Loss for the year has been arrived at after charging: Directors’ emoluments 3309 5600 Other staff costs: – Salaries and other allowances 20746 26175 – Retirement benefits scheme contributions 2263 2198 Total staff costs 26318 33973 Less: Amount capitalised in inventories (12146) (13926) 1417220047 Depreciation of right-of-use assets 2753 1146 Depreciation of property plant and equipment 1425 1593 41782739 Less: Amount capitalised in inventories (2261) (871) 19171868 Auditor’s remuneration 1000 840 Amortisation of intangible asset 26 26 Cost of inventories recognised as cost of sales (including write down of inventories of HK$1319000 (2023: reversal of write down of inventories of HK$1499000)) 46862 62860 7. DIVIDENDS No dividend was paid or proposed for ordinary shareholders of the Company during the years ended 31 March 2024 and 2023 nor has any dividend been proposed since the end of the reporting period. 128. LOSS PER SHARE The calculation of the basic and diluted loss per share attributable to the owners of the Company is based on the following data: 20242023 HK$’000 HK$’000 Loss Loss for the year attributable to owners of the Company for the purpose of calculating basic and diluted loss per share (24444) (31284) 20242023 ’000’000 Number of shares Weighted average number of ordinary shares for the purpose of calculating basic and diluted loss per share 842433 842433 No diluted loss per share was presented for the years ended 31 March 2024 and 2023 as there were no potential ordinary shares in issue during both years. 9. TRADE RECEIVABLES 20242023 HK$’000 HK$’000 Trade receivables from third parties 4618 7742 Trade receivables from a related company 2514 2098 71329840 Less: Loss allowance (11) (17) 71219823 13Trade receivables from third parties The following is an ageing analysis of trade receivables from third parties (net of loss allowance) of the Group presented based on the invoice dates which approximates to the dates of delivery of goods on which revenue was recognised at the end of the reporting period: 20242023 HK$’000 HK$’000 Within 30 days 3028 5039 31 – 60 days 607 2548 61 – 90 days 972 67 91 – 180 days – 10 181 – 365 days – 49 Over 365 days – 12 46077725 Trade receivables from a related company The following is an ageing analysis presented based on the invoice dates which are approximate to the dates of delivery of goods on which revenue was recognised at the end of the reporting period: 20242023 HK$’000 HK$’000 Within 30 days 384 427 31 – 60 days 17 8 61 – 90 days 1734 223 91 – 180 days 379 1440 25142098 10. TRADE PAYABLES The credit period on purchase of goods ranged from 0 to 60 days. The ageing analysis of the trade payables of the Group presented based on the invoice dates at the end of the reporting period is as follows: 20242023 HK$’000 HK$’000 Within 30 days 2395 2558 31 – 60 days 769 1033 61 – 90 days 484 214 91 – 180 days 161 159 181 – 365 days 3 – Over 365 days 5 5 38173969 1411. BORROWINGS AND BANK OVERDRAFTS (a) Borrowings 20242023 HK$’000 HK$’000 Unsecured and guaranteed: Bank loans 4170 5025 Secured and guaranteed: Bank loans 6929 4235 Other loan 5500 – Total 16599 9260 Carrying amounts of borrowings which are based on scheduled repayment dates set out in the loan agreements and classified as current due to repayment on demand clause: Within one year 11625 2560 More than one year but not more than two years 1788 1734 More than two years but not more than five years 3146 4543 More than five years 40 423 Amounts shown under current liabilities 16599 9260 The bank loans carry variable interest rates ranging from 3.000% - 8.300% (2023: 2.875% - 8.530%). As at 31 March 2024 the Group’s other loan from a third party carries interest at 12.25% per annum. 15(b) Bank overdrafts 20242023 HK$’000 HK$’000 Secured and guaranteed: Bank overdrafts 5876 5962 The variable-rate bank overdrafts bear interest at Hong Kong Prime Rate per annum. The effective interest rate (which is also equal to contracted interest rate) on the Group’s variable-rate bank overdrafts was 8.08% (2023: 6.38%).As at 31 March 2024 and 2023 the Group entered into several banking facilities with banks in Hong Kong. The banking facilities are secured by assets held by the Group and/or guaranteed by Mr. S Chong and Mr. P Chong details of which are set out as follows: (i) Corporate guarantee from the Company; and (ii) Leasehold land and buildings of the Group. 12. SHARE CAPITAL Number of shares HK$’000 Ordinary shares of HK$0.01 each Authorised: At 1 April 2022 31 March 2023 and 31 March 2024 10000000000 100000 Issued and fully paid: At 1 April 2022 31 March 2023 and 31 March 2024 842432607 8424 There was no movement of the Company’s share capital during the years ended 31 March 2024 and 2023. 16MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW The Group is a one-stop solutions provider of bridesmaid dresses bridal gowns and special occasion dresses. The Group principally sells its products to brand apparel companies based in the United States. Over the years the Group has built reputation and gained customers’ recognition from its dedication to provide its customers with one-stop solutions and consistently high quality products which has increased its customers’ reliance on it and in turn enabled it to maintain its market position as one of the leading bridesmaid dresses manufacturers in the PRC. The Group is the sole supplier of certain largest customers for bridesmaid dresses whom had maintained long years of relationship with the Group.In addition to manufacturing products for its customers the Group strives to become an integral part of its customers’ business operations by offering a wide range of value-added services ranging from fashion trend analysis product design and development raw material procurement production quality assurance to inventory management. The Group has also engaged in online business for the sale of fashion apparels; and the business of selling accessories.The Group recorded revenue of approximately HK$54.3 million for the year ended 31 March 2024 representing a decrease of approximately 24.3% as compared to that of approximately HK$71.7 million for the year ended 31 March 2023. Revenue from the United States accounted for approximately 41.1% and 41.4% of the total revenue of the Group for the year ended 31 March 2023 and 2024 respectively. The gross profit margin increased from 12.3% for the year ended 31 March 2023 to 13.8% for the year ended 31 March 2024. Loss for the year amounted to approximately HK$31.3 million and approximately HK$24.4 million for the years ended 31 March 2023 and 2024 respectively.During the year ended 31 March 2024 the Group continued to experience a challenging operating environment in view of prolonged trade disputes between the United States and China tariff imposed political tensions and continuing uncertainties in global economy. Since the Group’s revenue was mostly derived from customers based in the United States these factors in aggregate led to a certain extent of impact on the overall business performance of the Group. 17In addition the outbreak of the novel coronavirus disease (COVID-19) in past three years has brought significant disruption to the global economy and caused adverse impact to the business environment of the Group.PROSPECT In light of the prolonged trade disputes between the US and China and the resulting unprecedented negative business outlook from COVID-19 crisis the Group expects that the business environment and outlook for the coming financial year would remain highly challenging and uncertain. The Group will continue to review its existing business from time to time and take appropriate measures to tackle any possible impacts. In view of the unprecedented business environment the management is actively exploring new business opportunities with a view to diversifying the income stream of the Group and mitigating risks.Currently the Company is negotiating with a reputable outlet operator (the “Outlet Partner”) in the PRC in developing possible procurement and distribution business for new retailing and the Outlet Partner in the PRC which enables the Group to commence procurement and distribution business for branded fashion garments and accessories in the PRC; and have its products reach out to the consumers in the PRC through the platform of the Outlet Partner.This opportunity could on one hand complement the business of the Group and on the other hand enable the Group to be benefited from expanding its client base in the PRC. The Group’s revenue base will therefore be broadened in the future and is expected to increase investment returns to the shareholders.The Group is also taking cost-control measures throughout the year so as to cope with the lingering business downturn. With the Group’s proven track record experienced management team and reputation in the market the Group is well-positioned and well-equipped to sustain its development and grasp the opportunities to enhance the long-term potential growth in future for safeguard the interest of the shareholders.Revenue Revenue represents revenue from the sale of bridesmaid dresses bridal gowns special occasion dresses accessories fashion apparels and fabrics and other garment accessories. 18Revenue decreased by approximately HK$17.4 million or approximately 24.3% from approximately HK$71.7 million for the year ended 31 March 2023 to approximately HK$54.3 million for the year ended 31 March 2024. The overall decrease in revenue was primarily attributable to the decrease in revenue generated from the sale of bridesmaid dresses of approximately HK$9.8 million the decrease in revenue generated from the sale of special occasion dresses of approximately HK$3.8 million and the decrease in revenue generated from the sale of accessories of approximately HK$3.5 million.The decrease in revenue generated from the sale of bridesmaid dresses from approximately HK$35.0 million for the year ended 31 March 2023 to approximately HK$25.2 million for the year ended 31 March 2024 was primarily a result of the aggregate effect of the decrease in sales quantity from 113.7 thousand units for the year ended 31 March 2023 to 97.9 thousand units for the year ended 31 March 2024 and the decrease in average selling prices of bridesmaid dresses from HK$308 for the year ended 31 March 2023 to HK$258 for the year ended 31 March 2024.The decrease in revenue generated from the sale of special occasion dresses from approximately HK$13.5 million for the year ended 31 March 2023 to approximately HK$9.7 million for the year ended 31 March 2024 was primarily as a result of the decrease in sales quantity from 23.1 thousand units for the year ended 31 March 2023 to 15.3 thousand units for the year ended 31 March 2024.The decrease in sales quantity of bridesmaid dresses and special occasion dresses was attributable to fewer orders from customers which facing keen competition.Cost of sales Cost of sales primarily consists of raw material costs subcontracting charges labour costs overhead costs and others.Cost of sales decreased by approximately HK$16.0 million or approximately 25.4% from approximately HK$62.9 million for the year ended 31 March 2023 to approximately HK$46.9 million for the year ended 31 March 2024. The decrease was in line with the decrease in revenue. 19Gross profit and gross profit margin The Group recorded a gross profit of approximately HK$7.5 million for the year ended 31 March 2024 and a gross profit of approximately HK$8.8 million for the year ended 31 March 2023. Gross profit margin was 13.8% for the year ended 31 March 2024 and gross profit margin was 12.3% for the year ended 31 March 2023. The decrease in gross profit was mainly attributable to the decrease in revenue for the year ended 31 March 2024 compared to that of last year.Other income Other income decreased by approximately HK$0.7 million or approximately 63.6% from approximately HK$1.1 million for the year ended 31 March 2023 to approximately HK$0.4 million for the year ended 31 March 2024. The decrease was mainly attributable to the decrease in government grants rental income and interest income from loan receivable during the year ended 31 March 2024.Other gains and losses net Other losses represented change in fair value of investment properties and loss on disposal of property plant and equipment net of net exchange gains for the year ended 31 March 2024 while other losses represented change in fair value of investment properties and loss on disposal of an investment property net of exchange gains for the year ended 31 March 2023. The increase in losses was mainly attributable to the decrease in exchange gain from transactions denominated in Renminbi which depreciated during the year ended 31 March 2024. Selling and distribution expenses Selling and distribution expenses decreased by approximately HK$1.1 million or approximately 16.4% from approximately HK$6.7 million for the year ended 31 March 2023 to approximately HK$5.6 million for the year ended 31 March 2024. The decrease was mainly attributable to the decrease in staff costs and transportation costs net of the increase in advertising and promotion expenses. 20Administrative expenses Administrative expenses decreased by approximately HK$4.6 million or approximately 17.0% from approximately HK$27.1 million for the year ended 31 March 2023 to approximately HK$22.5 million for the year ended 31 March 2024. The decrease was mainly attributable to the decrease in staff costs.Finance costs Finance costs increased by approximately HK$0.3 million or 33.3% from approximately HK$0.9 million for the year ended 31 March 2023 to approximately HK$1.2 million for the year ended 31 March 2024. The increase was mainly attributable to the increase in the borrowings during the year ended 31 March 2024.Income tax expense Income tax expense for the year ended 31 March 2024 represented the temporary differences arising from depreciation.Loss for the year The Group recorded a loss of approximately HK$24.4 million for the year ended 31 March 2024 and a loss of approximately HK$31.3 million for the year ended 31 March 2023. The decrease in loss was primarily attributable to (i) the decrease in administrative expenses and selling and distribution expenses of the Group; (ii) the decrease in impairment loss recognised in respect of property plant and equipment; and (iii) the decrease in share of losses of associates.Dividends The Board does not recommend the payment of a final dividend for the year ended 31 March 2024. Capital structure The capital structure of the Company comprises of issued share capital and reserves. As at the date of this announcement the issued share capital of the Company was HK$8.4 million and the number of issued ordinary shares was 842432607 of HK$0.01 each. 21Liquidity and financial resources The Group generally finances its operation by internal cash generated from operations and bank borrowings. As at 31 March 2024 the Group had bank balances and cash of approximately HK$4.4 million and bank overdrafts of approximately HK$5.9 million (31 March 2023: approximately HK$3.2 million and bank overdrafts of approximately HK$6.0 million) and had net current assets of approximately HK$10.5 million (31 March 2023: HK$29.7 million). The current ratio of the Group was approximately 1.2 times as at 31 March 2024 compared to that of approximately 1.8 times as at 31 March 2023. The current ratio decreased was mainly attributable to the increase in other payables and accruals amounts due to directors and borrowings.The gearing ratio of the Group which is calculated by dividing the total borrowings by the total equity and then multiplied by 100% was 48.3% as at 31 March 2024 (31 March 2023: 21.0%). The gearing ratio increased was mainly attributable to the increase in borrowings as at 31 March 2024 and the increase in loss which led to decrease in total equity compared to that of 31 March 2023.Pledge of assets As at 31 March 2024 the Group pledged leasehold land and buildings with carrying value of approximately HK$27.8 million (31 March 2023: approximately HK$31.1 million) and investment properties with carrying value of HK$11.2 million (31 March 2023: nil) to secure certain banking facilities and other loan granted to the Group respectively.Foreign exchange risk Certain transactions of the Group are denominated in foreign currencies which are different from Hong Kong Dollar the functional currency of the Group and therefore the Group is exposed to foreign currency risk.The Group currently does not have a foreign currency hedging policy. However the management of the Group monitors foreign exchange exposure and will consider hedging significant foreign currency exposure should the need arise. 22Material acquisitions and disposals of subsidiaries and associated companies During the year ended 31 March 2024 the Group did not have any material acquisitions and disposals of subsidiaries and associated companies.Significant investments held Save as disclosed elsewhere in this announcement as at 31 March 2024 the Group had no significant investments held (31 March 2023: nil).Events after the reporting period Lease modification On 1 April 2024 the Group modified leases entered into with Mr. S Chong and Mr. P Chong for the use of factory premises and staff dormitories to extend for one year with gross undiscounted lease payment of approximately HK$2734000.Subscription of new shares under general mandate Subsequent to 31 March 2024 on 23 May 2024 the Company entered into the subscription agreement with a subscriber (the “Subscriber”) pursuant to which the Subscriber has agreed to subscribe for and the Company has agreed to allot and issue an aggregate of 168480000 subscription shares (the “Subscription Share”) at the subscription price of HK$0.1 per Subscription Share. On 21 June 2024 and 26 June 2024 the Company and the Subscriber agreed in writing to extend the completion date of subscription to 26 June 2024 and no later than 12 July 2024 respectively. Details of which are disclosed in the announcements of the Company dated 23 May 2024 21 June 2024 and 26 June 2024 respectively.Employees and remuneration policy As at 31 March 2024 the Group had 227 employees (31 March 2023: 246 employees). The total staff costs including directors’ emoluments of the Group for the year ended 31 March 2024 were approximately HK$26.3 million (2023: approximately HK$34.0 million). Remuneration is determined with reference to market norms and the performance qualification and experience of individual employee. The Group reviews the remuneration policies and packages on a regular basis and will make necessary adjustment commensurate with the pay level in the industry. The remuneration package generally includes basic salaries discretionary bonuses and contributions to retirement benefits scheme. The Group provides training for its employees so that new employees can master the basic skills required to perform their functions and existing employees can upgrade or improve their production skills. 23Capital commitment As at 31 March 2024 the Group did not have any material capital commitment (31 March 2023: nil). Contingent liabilities As at 31 March 2024 the Group did not have any material contingent liabilities (31 March 2023: nil). PURCHASE SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY Neither the Company nor any of its subsidiaries had purchased sold or redeemed any listed securities of the Company during the year.ANNUAL GENERAL MEETING The annual general meeting (the “AGM”) of the Company will be held on Monday 26 August 2024. The notice of AGM will be sent to the shareholders in the manner required by the Listing Rules in due course.CLOSURE OF REGISTER OF MEMBERS FOR ENTITLEMENT TO ATTEND AND VOTE AT AGM For the purpose of determining shareholders who are entitled to attend and vote at the AGM the register of members of the Company will be closed from Wednesday 21 August 2024 to Monday 26 August 2024 both days inclusive during which period no transfer of shares will be registered. In order to qualify for attending and voting at the AGM all properly completed transfer forms accompanied by the relevant share certificates must be lodged with the Company’s Hong Kong Branch Share Registrar Tricor Investor Services Limited at 17/F Far East Finance Centre 16 Harcourt Road Hong Kong for registration not later than 4:30 p.m.on Tuesday 20 August 2024.COMPLIANCE WITH CORPORATE GOVERNANCE CODE The Board is committed to maintaining good corporate governance standards. 24The Board believes that good corporate governance standards are essential in providing a framework for the Group to safeguard the interests of shareholders enhance corporate value formulate its business strategies and policies and enhance its transparency and accountability.The Company has adopted the principles and code provisions of the Corporate Governance Code (the “CG Code”) contained in Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”) as the basis of the Company’s corporate governance practices.The Board is of the view that throughout the year ended 31 March 2024 the Company has complied with the code provisions set out in the CG Code except for code provision C.2.1.Code provision C.2.1 of the CG Code stipulates that the roles of chairman and chief executive should be separate and should not be performed by the same individual.The chairman and chief executive officer of the Company are held by Mr. Chong Sik who is one of the co-founders of the Group and has extensive experience in the industry. The Board believes that Mr. Chong Sik can provide the Company with strong and consistent leadership that allows for effective and efficient planning and implementation of business decisions and strategies.The Board is of the view that given that Mr. Chong Sik had been responsible for leading the strategic planning and business development of the Group the arrangement would allow for effective and efficient planning and implementation of business decisions and strategies under the strong and consistent leadership and should be overall beneficial to the management and development of the Group’s business.DIRECTORS’ SECURITIES TRANSACTIONSThe Company has devised its own Code of Ethics and Securities Transactions (the “Codeof Ethics”) regarding dealings in the Company’s securities by directors and the relevant employees who are likely to be in possession of inside information of the Company on terms no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules.Specific enquiry has been made of all the directors and the directors have confirmed that they have complied with the Code of Ethics throughout the year. 25No incident of non-compliance of the Code of Ethics by the employees was noted by the Company.AUDIT COMMITTEE The Company has established an audit committee (the “Audit Committee”) on 31 January 2019 with written terms of reference in compliance with Rule 3.21 of the Listing Rules and the Code Provisions of the CG Code as set out in Appendix C1 to the Listing Rules.The Audit Committee comprises four members namely Mr. Leung Martin Oh Man Mr. Lau Koong Yep Mr. Yuen King Sum and Mr. Lau Kwok Fan all being independent non-executive directors. Mr. Leung Martin Oh Man is the chairman of the Audit Committee.The Audit Committee has reviewed the audited consolidated financial results of the Group for the year ended 31 March 2024 including the accounting principles and practices adopted by the Group and discussed matters relating to auditing risk management and internal control and financial reporting.SCOPE OF WORK OF CL PARTNERS CPA LIMITED The figures in respect of the Group’s consolidated statement of financial position consolidated statement of profit or loss consolidated statement of profit or loss and other 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 CL Partners CPA Limited to the amounts set out in the Group’s audited consolidated financial statements for the year. The work performed by CL Partners 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 Hong Kong Institute of Certified Public Accountants and consequently no assurance has been expressed by CL Partners CPA Limited on the preliminary announcement.SUFFICIENCY OF PUBLIC FLOAT Based on the information that is publicly available to the Company and within the knowledge of the directors as at the date of this announcement the Company has maintained the prescribed percentage of public float under the Listing Rules. 26PUBLICATION OF ANNUAL RESULTS ANNOUNCEMENT AND ANNUAL REPORT This annual results announcement is published on the website of the Company (http://www.kntholdings.com) and the website of the Stock Exchange (http://www.hkexnews.hk).The annual report of the Company for the year ended 31 March 2024 will also be published on the respective websites of the Company and the Stock Exchange and will be despatched to the shareholders of the Company in due course.By Order of the Board KNT Holdings Limited Chong Sik Chairman and Executive Director Hong Kong 28 June 2024 As at the date of this announcement the Board comprises four executive directors namely Mr. Chong Sik Mr. Chong Pun Mr. Lam Chi Yuen and Dr. Dong Bin; one non-executive director namely Mr. Hu Shilin; and four independent non-executive directors namely Mr. Leung Martin Oh Man Mr. Lau Koong Yep Mr. Yuen King Sum and Mr. Lau Kwok Fan. 27