ANNUAL RESULTS ANNOUNCEMENTFOR 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.Tat Hong Equipment Service Co. Ltd.达丰设备服务有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 2153) ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 2024 FINANCIAL HIGHLIGHTS Revenue of the Group for the year ended 31 March 2024 amounted to RMB682.3 million representing a decrease of RMB88.5 million or 11.5% from the year ended 31 March 2023.Loss attributable to equity holders of the Company for the year ended 31 March 2024 amounted to RMB95.6 million representing an increase of RMB59.8 million or 167.0% from the year ended 31 March 2023. This rise in losses was primarily driven by the sluggish economic growth and the weak recovery of construction sector following the COVID-19 pandemic resulting in (i) a decrease in total TM in use from 3192710 for the year ended 31 March 2023 to 3178404 for the year ended 31 March 2024; and (ii) a reduction of our average monthly service price for tower cranes per tonne-meter (TM) in use from RMB241 to RMB215. Despite these challenges the Company remains committed to maintaining its operational efficiency and exploring new growth opportunities.Basic loss per share for the year ended 31 March 2024 amounted to RMB8.0 cents representing an increase of RMB5.0 cents when compared with the basic loss per share of RMB3.0 cents for the year ended 31 March 2023.The Board has resolved not to recommend the payment of final dividend for the year ended 31 March 2024.ANNUAL RESULTS The board (the “Board”) of directors (the “Directors”) of Tat Hong Equipment Service Co. Ltd.(the “Company” together with its subsidiaries collectively the “Group”) hereby announces the consolidated results of the Group for the year ended 31 March 2024 together with comparative figures for the year ended 31 March 2023 as set out below.- 1 -CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2024 Year ended 31 March 20242023 Note RMB’000 RMB’000 Revenue 4 682292 770752 Cost of sales 7 (601532) (597521) Gross profit 80760 173231 Selling and distribution expenses 7 (15033) (14464) General and administrative expenses 7 (81966) (90976) Research and development expenses 7 (19390) (29688) Provision for financial assets and contract assets (3327) (4413) Other income 5 2789 7120 Other (losses)/gains net 6 (5668) 2854 Operating (loss)/profit (41835) 43664 Finance costs 8 (64520) (81515) Finance income 8 948 718 Loss before income tax (105407) (37133) Income tax credit 9 9769 1320 Loss for the year (95638) (35813) Loss for the year attributable to: Owners of the Company (95638) (35813) Other comprehensive (loss)/income net of tax Item that may be reclassified to profit or loss: Currency translation difference (556) 10 Other comprehensive (loss)/income for the year net of tax (556) 10 Total comprehensive loss for the year net of tax (96194) (35803) Basic and diluted loss per share 11 (0.08) (0.03) - 2 -CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2024 As at 31 March 20242023 Note RMB’000 RMB’000 ASSETS Non-current assets Property plant and equipment 1556816 1651070 Right-of-use assets 101193 101209 Intangible assets 16710 21176 Contract assets 3 23797 66549 Other non-current assets 81247 60594 Total non-current assets 1779763 1900598 Current assets Inventories 44464 39584 Contract assets 3 236058 254235 Trade receivables 12 734470 631071 Prepayments and other receivables 128324 146658 Financial assets at fair value through other comprehensive income 15574 21925 Restricted cash 370 3423 Cash and cash equivalents 138938 155551 Total current assets 1298198 1252447 Total assets 3077961 3153045 - 3 -CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) AT 31 MARCH 2024 As at 31 March 20242023 Note RMB’000 RMB’000 LIABILITIES Non-current liabilities Borrowings 15 612405 617415 Lease liabilities 58306 47566 Deferred income tax liabilities 57805 67628 Provisions 24906 33906 Total non-current liabilities 753422 766515 Current liabilities Trade and bills payables 16 327771 387268 Contract liabilities 2531 896 Other payables and accruals 31436 37234 Borrowings 15 483476 363845 Lease liabilities 26138 38092 Provisions 31762 41576 Total current liabilities 903114 868911 Total liabilities 1656536 1635426 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Share capital 13 593026 593026 Reserves 14 514374 512974 Retained earnings 314025 411619 Total equity 1421425 1517619 Total equity and liabilities 3077961 3153045 - 4 -CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2024 Attributable to owners of the Company Share Share Capital Statutory Other Retained capital premium reserve reserve reserves earnings Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At 1 April 2022 593026 198353 243605 49814 29073 455962 1569833 Loss for the year – – – – – (35813) (35813) Other comprehensive income: – Currency translation difference – – – – 10 – 10 Total comprehensive income – – – – 10 (35813) (35803) Dividends (Note 10) – (16411) – – – – (16411) Statutory reserve – – – 8530 – (8530) – At 31 March 2023 593026 181942 243605 58344 29083 411619 1517619 At 1 April 2023 593026 181942 243605 58344 29083 411619 1517619 Loss for the year – – – – – (95638) (95638) Other comprehensive income: – Currency translation difference – – – – (556) – (556) Total comprehensive income – – – – (556) (95638) (96194) Statutory reserve – – – 1956 – (1956) – At 31 March 2024 593026 181942 243605 60300 28527 314025 1421425 - 5 -NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1. BASIS OF PREPARATION These consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”). HKFRSs comprise Hong Kong Financial Reporting Standards (“HKFRS”); Hong Kong Accounting Standards (“HKAS”); and Interpretations. These consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange and with the disclosure requirements of the Companies Ordinance (Cap. 622). 2. ADOPTION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS (a) Application of new and revised HKFRSs The Group has applied the following new and amendments to HKFRSs issued by the HKICPA for the first time which are mandatorily effective for the annual period beginning on or after 1 January 2023 for the preparation of the consolidated financial statements: HKFRS 17 Insurance Contracts 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 12 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.(b) Revised HKFRSs in issue but not yet effective The Group has not early applied the following amendments to standards and interpretation that have been issued but not yet effective: Effective for accounting periods beginning on or after Amendments to HKAS 1 – Classification of Liabilities 1 January 2024 as Current or Non-current Amendments to HKAS 1 – Non-current Liabilities with Covenants 1 January 2024 Amendments to HKFRS 16 – Lease Liability in a Sales and Leaseback 1 January 2024 Hong Kong Interpretation 5 (Revised) Presentation of Financial 1 January 2024 Statements – Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause (“HK Int 5 (Revised)”) Amendments to HKAS 7 and HKFRS 7 1 January 2024 – Supplier Finance Arrangements Amendments to HKAS 21 – Lack of Exchangeability 1 January 2025 Except for the amendments to standards mentioned below the directors of the Company anticipate that the application of all other amendments to HKFRSs will not have material impact on the consolidated financial statements in the foreseeable future.- 6 -3. SEGMENT INFORMATION The Group has recognised the following assets and liabilities related to contracts with customers: As at 31 March 20242023 RMB’000 RMB’000 Contract assets Non-current 23997 66833 Loss allowance (200) (284) 2379766549 Current 236987 255435 Loss allowance (929) (1200) 236058254235 Total contract assets 259855 320784 4. REVENUE An analysis of revenue is as follows: Year ended 31 March 20242023 RMB’000 RMB’000 Timing of revenue recognition – Over the time One-stop tower crane solution services: – Operating Lease 289513 385331 – Hoisting Service 380443 380871 Dry lease 12336 4550 682292770752 5. OTHER INCOME Year ended 31 March 20242023 RMB’000 RMB’000 Value-added tax refund 668 3852 Government grants 621 2310 Others 1500 958 27897120 Government grants provided to the Group mainly related to financial assistance from the local government in the PRC. There are no unfulfilled conditions or other contingencies attaching to these grants.- 7 -6. OTHER (LOSSES)/GAINS NET Year ended 31 March 20242023 RMB’000 RMB’000 Exchange losses (38) (665) (Losses)/gains on disposal of property plant and equipment and right-of-use assets (5630) 3519 (5668)2854 7. EXPENSES BY NATURE Year ended 31 March 20242023 RMB’000 RMB’000 Depreciation of property plant and equipment and right-of-use assets 283185 283271 Labour subcontracting cost 228190 229343 Employee benefit expenses 88517 108803 Rental expenses 30028 22342 Material fees 16990 15894 Travel expenses 15518 15183 Repair expenses 4295 9316 Commission expenses 8637 8314 Entertainment expenses 5625 5948 Professional fees 4728 5572 Amortisation of intangible assets 4466 4497 Office expenses 5947 3888 Transportation expenses 2397 3176 Auditor’s remuneration 2981 3135 Others 16417 13967 717921732649 - 8 -8. FINANCE COSTS AND INCOME Year ended 31 March 20242023 RMB’000 RMB’000 Finance costs: Interest expenses on bank borrowings 57227 41509 Interest expenses on loans from a related party – 372 Interest expenses on lease liabilities 5278 3142 Net exchange losses on foreign currency borrowings and loans from a related party 2015 36492 Total finance costs 64520 81515 Finance income: Interest income (948) (718) Finance costs – net 63572 80797 9. INCOME TAX CREDIT The amount of income tax charged to the consolidated statement of comprehensive income represents: Year ended 31 March 20242023 RMB’000 RMB’000 Current tax on profits for the year 54 1758 Deferred income tax (9823) (3078) Income tax credit (9769) (1320) The difference between the actual income tax expense charged to the consolidated statements of comprehensive income and the amounts which would result from applying the enacted tax rates to loss before taxation can be reconciled as follows: Year ended 31 March 20242023 RMB’000 RMB’000 Loss before taxation (105407) (37133) Tax calculated at tax rates applicable to profits of the respective subsidiaries (21027) (5823) Expenses not deductible for tax purposes 694 561 Temporary difference for which no deferred tax (liability)/asset was recognised (360) 124 Tax losses for which no deferred tax asset was recognised 14184 8564 Utilisation of the tax losses unrecognized previously (728) (1163) Super deductions from research and development expenditures (2532) (3583) Income tax credit (9769) (1320) The Group’s subsidiary in Singapore is subject to Singapore corporate income tax at a rate of 17% on estimated assessable profits.- 9 -The Group’s subsidiaries in the PRC are subject to the PRC corporate income tax at a rate of 25% on estimated assessable profits save for disclosed below.Pursuant to the relevant laws and regulation in the PRC in November 2021 the Group’s subsidiaries China Nuclear Huaxing Tat Hong Machinery Construction Co. Ltd. (“Huaxing Tat Hong”) and Jiangsu Zhongjian Tat Hong Machinery Construction Co. Ltd. (“Zhongjian Tat Hong”) were accredited as high- tech enterprises and were entitled to the preferential tax rate of 15% for three years effective from 2021.The qualification of high-tech enterprise is subject to renewal for each three years interval.Starting from 1 October 2022 the pre tax deduction ratio of the Group’s research and development expenses was increased from 75% to 100%. During the fourth quarter of 2022 high-tech enterprises were allowed to deduct the eligible equipment and appliances newly purchased from 1 October 2022 to 31 December 2022 in full in the calculation of taxable income and to implement a 100% additional deduction before income tax.Deferred income tax liability has not been recognised for the withholding tax that would be payable on part of distributable retained profits of the Company’s subsidiaries in the PRC. Such distributable retained profits are not expected to be distributed out of the PRC. 10. DIVIDENDS Year ended 31 March 20242023 RMB’000 RMB’000 Dividend payable at the beginning of the year – 29087 Declaration of dividends – 16411 Dividends paid – (45498) Dividends payable at the end of the year – – Pursuant to the resolution of the shareholders’ meeting held on 28 September 2022 dividends of RMB16411000 were approved by the shareholders. All dividends have been paid in cash during the year ended 31 March 2023.On 28 June 2024 the directors resolved not to recommend payment of a final dividend in respect of the year ended 31 March 2024. 11. LOSS PER SHARE Basic loss per share is calculated by dividing the loss attributable to the equity holders of the Company by the weighted average number of shares in issue during the financial year. Diluted loss per share is calculated by adjusting the weighted average number of shares outstanding to assume conversion of all dilutive potential shares. The fully diluted loss per share for the financial year is the same as the basic loss per share as there is no dilutive potential share during the current and previous year.- 10 -Year ended 31 March 20242023 RMB’000 RMB’000 Loss attributable to the ordinary equity holders of the Company (95638) (35813) Weighted average number of ordinary shares in issue (’000) 1166871 1166871 Basic and diluted loss per share (RMB) (0.08) (0.03) 12. TRADE RECEIVABLES As at 31 March 20242023 RMB’000 RMB’000 Accounts receivables 754428 647347 Less: provision for impairment (19958) (16276) 734470631071 The majority of the Group’s receivables are with credit terms from 30 days to 90 days. At 31 March 2024 and 2023 the aging analysis of the trade receivables based on invoice date were as follows: As at 31 March 20242023 RMB’000 RMB’000 Within credit term 221352 186923 Less than 180 days past due 218465 220259 181 days to 365 days past due 105702 98976 1 to 2 years past due 130033 79226 More than 2 years past due 78876 61963 754428647347 For the trade receivables the Group has assessed the expected credit losses by considering historical default rates existing market conditions and forward-looking information. Based on the assessment the creation and reversal for impaired receivables have been included in the net impairment losses on financial assets. Amounts charged to allowance account are written off when there is no expectation of receiving the receivables.As at 31 March 2024 the Group pledged accounts receivable with carrying amount of approximately RMB233124000 (2023: RMB179542000) for the bank borrowings of the Group.The Group’s trade receivables were denominated in RMB.- 11 -13. SHARE CAPITAL Number Number of shares of Shares Share Share Authorised Issued Capital Capital ’000 ’000 USD’000 RMB’000 As at 31 March 2023 and 2024 (ordinary shares of USD0.08 each) 1875000 1166871 93350 593026 14. RESERVES Reserves of the Group during the years ended 31 March 2024 and 2023 comprised of share premium capital reserve statutory reserve and other reserve.Share premium of the Company represents the capital contribution premium from shareholders. Where the Company issued shares at a premium whether for cash or otherwise a sum equal to the aggregate amount of the value of the premiums over share capital shall be classified as share premium.Capital reserve comprised of merger reserve arising from the combination of Tat Hong Equipment (China) Pte. Ltd. (“THEC”)’s subsidiaries in 2015.As stipulated by the relevant PRC laws and regulations applicable to the Company’s subsidiaries established and operated in the PRC the subsidiaries are required to make appropriation from profit after tax (after offsetting prior years’ losses) to statutory reserve. The PRC entities are required to transfer at least 10% of its net profit as determined under the PRC accounting rules and regulations to their statutory reserve.The appropriations to the statutory reserve are required until the balance reaches 50% of the subsidiaries’ registered capital. The statutory reserve can be utilised to offset prior year losses. The Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their reserve either in the form of dividends loans or advances.Other reserves consist of translation reserves and shares granted and vested under Share Award Schemes. 15. BORROWINGS As at 31 March 20242023 RMB’000 RMB’000 Non-current Bank borrowings – Secured 514903 598830 Bank borrowings – Unsecured 3414 – Other borrowings 94088 18585 612405617415 - 12 -As at 31 March 20242023 RMB’000 RMB’000 Current Bank borrowings – Secured 395232 316979 Bank borrowings – Unsecured 42290 36162 Other borrowings 45954 10704 483476363845 Total borrowings 1095881 981260 As at end of reporting period the Group’s borrowings were repayable as follows: As at 31 March 20242023 RMB’000 RMB’000 Within 1 year 483476 363845 Between 1 and 2 years 174941 134372 Between 2 and 5 years 437464 483043 1095881981260 Analysis of the carrying amounts of the Group’s borrowings by currency was as follows: As at 31 March 20242023 RMB’000 RMB’000 RMB 1053386 926784 HKD 42495 30569 SGD – 18764 USD – 5143 1095881981260 The weighted average effective interest rates per annum for the years ended 31 March 2024 and 2023 were as follows: Year ended 31 March 20242023 SGD – 4.8% RMB 5.0% 4.6% USD – 4.0% HKD 6.4% 1.7% - 13 -The fair values of the borrowings of the Group approximate to their carrying amounts since either the interest rates of those borrowings are close to current market rates or the borrowings are of a short-term nature. 16. TRADE AND BILLS PAYABLES As at 31 March 20242023 RMB’000 RMB’000 Accounts payable 290801 344296 Bills payable 36970 42972 327771387268 As at 31 March 2024 and 2023 the aging analysis of the trade payables (including amounts due to related parties of trading in nature) based on transaction date were as follows: As at 31 March 20242023 RMB’000 RMB’000 Within 3 months 116143 102443 Between 3 months and 1 year 114223 203526 Between 1 year and 2 years 50623 35777 Between 2 years and 3 years 6840 1296 Between 3 years and 5 years 821 768 Over 5 years 2151 486 290801344296 The carrying amounts of trade and bills payables approximate their fair values.As at 31 March 2024 and 2023 the aging of bills payable was within one year.- 14 -MANAGEMENT DISCUSSION AND ANALYSIS Business Review We are the first foreign-owned tower crane service provider established in the People’s Republic of China (“PRC”) and one of the leading crane rental companies in the Asia-Pacific region. Since 2007 we have established ourselves as a tower crane service provider for one-stop tower crane solution services from consultation technical design commissioning construction to after-sales services primarily to Chinese Special-tier and Tier-1 EPC contractors. We mainly engage in engineering procurement and construction projects (“EPC projects”) in infrastructure clean energy traditional energy general construction commercial building and residential building mainly in the PRC.During the financial year the post COVID-19 recovery of the construction industry was sluggish due to the downturn of the property market in the PRC. As a result both the supply of new domestic construction projects and average monthly service price of tower cranes per tonne meter (TM) decreased in the financial year. In order to maintain its domestic market position the Group had expanded its geographical frontier to the Greater Bay Area to cover Hong Kong and Macau. As of March 2024 we have deployed 10 and 19 tower cranes respectively in Hong Kong and Macau. We have also expanded our business portfolio to the construction projects related to clean energy thermal power and nuclear power. We expect such expansion in geographical locations and business segments will enhance the Group’s financial performance in the coming year.During the year we had continued our investment in the digitalization of our management platform and the research and development of new tower crane technical solutions. As at 31 March 2024 we possess 158 registered patents for utility models and inventions relating to tower cranes. We believe our robust technical capabilities will continue to enable us to procure projects and the enhancement in our research and development capabilities for tower crane technical solutions will reinforce our excellent delivery in services.As at 31 March 2024 we are managing a total of 1174 tower cranes so as to cater for our customers’ specialised range of EPC projects throughout the PRC. As at 31 March 2024 We had 259 projects in progress with a total outstanding contract value of approximately RMB417.7 million and 168 projects on hand of total expected contract value at approximately RMB690.3 million.Operating Results The Group recorded a net loss of approximately RMB95.6 million for the year ended 31 March 2024 representing an increase of approximately 167.0% as compared with the net loss of approximately RMB35.8 million for the year ended 31 March 2023. This increase in loss was primarily due to the slower economic growth and the sluggish recovery of the construction sector post-COVID. Consequently our (i) total TM in use decreased from 3192710 for the year ended 31 March 2023 to 3178404 for the year ended 31 March 2024; and (ii) our average monthly service price for tower cranes per TM in use decreased from RMB241 to RMB215.- 15 -Future Development While both of the property market and the construction industry in the PRC were in a downturn during the financial year the Group has promptly adopted adjustments to the Group’s development strategies including the expansion to the clean energy construction segment and the geographical expansion to the Greater Bay Area and Indonesia so as to cope with the difficult and rapidly changing business environment. In the coming financial year we will continue to further strength our position in the above new segments and locations and seize new opportunities in the market.With our core corporate values “Virtue (厚德) Safety (安全) and Excellence (卓越)” we will continue to concentrate on the research and development of new tower crane technologies to equip ourselves with the most robust technical capabilities to deliver excellent services to our clients. During the year we had implemented the digitalized management platforms namely “TOP” and “iSmartCon”. In the coming year we will continue our efforts to optimize our operation and digitalize our management platforms so as to achieve resources sharing cost reduction and efficiency enhancement. With all theabove measures we believe we can fulfil the Group’s goal to become “the best construction equipmentservice provider” in the industry.FINANCIAL REVIEW Revenue The Group’s revenue decreased by approximately 11.5% from RMB770.8 million for the year ended 31 March 2023 to RMB682.3 million for the year ended 31 March 2024 primarily due to our total tonne metre (TM) in use decreased from 3192710 for the year ended 31 March 2023 to 3178404 for the year ended 31 March 2024 and the average monthly service price of tower cranes per tonne metres (TM) in use decreased from RMB241 to RMB215.Cost of Sales Our cost of sales slightly increased by approximately 0.7% from RMB597.5 million for the year ended 31 March 2023 to RMB601.5 million for the year ended 31 March 2024. The increase in cost of sales was primarily due to rising rental costs which was partially mitigated by the decrease in labor subcontracting and staff costs.Gross Profit and Gross Profit Margin Our overall gross profit decreased by approximately 53.4% from RMB173.2 million for the year ended 31 March 2023 to RMB80.8 million for the year ended 31 March 2024. Our overall gross profit margin decreased from approximately 22.5% for the year ended 31 March 2023 to approximately 11.8% for the year ended 31 March 2024.- 16 -Other income Our other income for the year ended 31 March 2024 amounted to approximately RMB2.8 million representing a decrease of approximately RMB4.3 million or 60.8% as compared to that of approximately RMB7.1 million for the year ended 31 March 2023. The other income mainly comprised of value-add tax refund and government grants. The decrease was primarily attributed to lower value-added tax refunds and government grants.Research and development expenses Our research and development expenses decreased from approximately RMB29.7 million for the year ended 31 March 2023 to approximately RMB19.4 million for the year ended 31 March 2024. This was mainly due to the decrease in development works on patents.Selling and distribution expenses Our selling and distribution expenses increased by approximately 3.9% from approximately RMB14.5 million for the year ended 31 March 2023 to approximately RMB15.0 million for the year ended 31 March 2024. Such increase was mainly due to increase in travel expenses.General and administrative expenses Our general and administrative expenses decreased by approximately RMB9.0 million or 9.9% from approximately RMB91.0 million for the year ended 31 March 2023 to RMB82.0 million for the year ended 31 March 2024. The general and administrative expenses mainly comprised of professional expenses salary costs and office expenses. Such decrease was primarily attributable to decrease in employee benefit expenses.Finance costs Our finance costs decreased by approximately RMB17.0 million or 20.9% from approximately RMB81.5 million for the year ended 31 March 2023 to RMB64.5 million for the year ended 31 March 2024.The decrease was mainly due to the decrease in recognition of net exchange losses which arose from foreign currency borrowings.Income Tax Credit Our income tax credit for the year ended 31 March 2024 amounted to approximately RMB9.8 million representing an increase of approximately RMB8.5 million or 640.1% as compared to that of approximately RMB1.3 million for the year ended 31 March 2023. This was primarily due to the increase of loss for the year ended 31 March 2024.- 17 -Loss for the year As a result of the foregoing reason the Group recorded a loss of RMB95.6 million for the year ended 31 March 2024 as compared to a loss of RMB35.8 million for the year ended 31 March 2023 representing an increase of approximately RMB59.8 million or approximately 167.0%.Working capital structure The Group’s net current assets amounted to RMB395.1 million as at 31 March 2024 representing an increase of RMB11.5 million from 31 March 2023 which was mainly due to the increase in the trade receivables.Liquidity and financial management We require a substantial amount of capital to fund our purchases of tower cranes working capital requirements and general business expansion. Our operation and growth have primarily been financed by cash generated from our operations.The Group strives to maintain a healthy financial position and liquidity for its normal operation development needs and ad-hoc events. As at 31 March 2024 the cash and cash equivalents plus restricted cash were RMB139.3 million representing a decrease of RMB19.7 million when compared with those for the year ended 31 March 2023.The Group’s current ratio which represents the total sum of current assets divided by the total sum of current liabilities was 1.44 times as at 31 March 2024 which was equal to that of 31 March 2023.The gearing ratio of the Group which represents the total sum of borrowings loans from a related party and lease liabilities divided by total equity was 83.0% as at 31 March 2024 compared to that of 70.3% as at 31 March 2023. The increase in gearing ratio was mainly attributable to the increase in borrowings.Pledge of assets As at 31 March 2024 the Group pledged machineries with carrying amount of approximately RMB966.7 million (2023: RMB962.3 million) for the bank borrowings and other borrowings of the Group.As at 31 March 2024 the Group pledged accounts receivable with carrying amount of approximately RMB233.1 million (2023: RMB180.0 million) for the bank borrowing of the Group.- 18 -As at 31 March 2024 the land-use rights with carrying value of approximately RMB11.9 million (2023: RMB12.4 million) were secured for the bank borrowings of the Group.As at 31 March 2024 the buildings with carrying value of approximately RMB5.0 million (2023: 5.0 million) were secured for the bank borrowings of the Group.Lease Liabilities The lease liabilities decreased by 1.4% from approximately RMB85.7 million as at 31 March 2023 to approximately RMB84.4 million as at 31 March 2024. This was mainly due to the payments for lease liabilities during the year ended 31 March 2024.As at 31 March 2024 the lease liabilities of RMB18.9 million were secured by the pledge of machinery with carrying value of 16.4 million (2023: nil).CAPITAL COMMITMENT As at 31 March 2024 the contracted but not provided property plant and equipment was RMB3.1 million representing a decrease of RMB16.0 million from that as at 31 March 2023.CONTINGENT LIABILITIES Save as disclosed in this announcement the Group had no contingent liabilities.FOREIGN EXCHANGE RISK MANAGEMENT The net exchange loss for the year ended 31 March 2024 amounted to approximately RMB2.1 million representing a decrease of approximately RMB35.1 million as compared to that of approximately RMB37.2 million for the year ended 31 March 2023. The Group mainly operates in the PRC with RMB as the functional currency and the most of foreign currency loans have been converted into the RMB loans. The Board is of the view that the Group’s foreign exchange rate risks are not the main risks in the subsequences period. Thus the Group did not enter into any derivative contracts to hedge against the foreign exchange rate risk during the year ended 31 March 2024.USE OF PROCEEDS FROM THE LISTING On 13 January 2021 the shares of the Company (the “Shares”) were listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The shares were issued to the public at HKD1.73 per share and the Group received net proceeds (the “Net Proceeds”) of approximately HKD485.5 million from the global offering of its Shares (the “Global Offering”) after deducting the underwriting fees and commissions and other expenses incurred by the Group in connection with the Global Offering. As of 31 March 2024 the amount of net proceeds have been fully utilised. Set out below are details of the planned allocation of the net proceeds the utilised and unutilised amount of the net proceeds as of 31 March 2024: - 19 -Utilised net Expected Planned Unutilised proceeds timeline allocation net proceeds during the Utilised net Unutilised net of full of the net as at year ended proceeds up to proceeds as at utilization Usage proceeds 1 April 2024 31 March 2024 31 March 2024 31 March 2024 of the balance % HKD’000 HKD’000 HKD’000 HKD’000 HKD’000 Purchase tower cranes 63.0% 305865 60493 60493 305865 – Fully utilised Purchase equipment and to conduct foundation work for our Yangzhou Refurbishment Centre (as defined in the prospectus of the Company dated 30 December 2020) 5.3% 25732 – – 25732 – Fully utilised Hire additional personnel equipped with special skills to improve our service capacity and competitiveness 3.2% 15536 – – 15536 – Fully utilised Repay part of our bank borrowings 18.5% 89817 – – 89817 – Fully utilised Working capital and other general corporate purposes 10.0% 48550 – – 48550 – Fully utilised 100%4855006049360493485500– FINAL DIVIDEND The Board has resolved not to recommend the payment of final dividend for the year ended 31 March 2024 (2023: nil). MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES ASSOCIATES AND JOINT VENTURES FUTURE PLAN FOR MATERIAL INVESTMENTS AND CAPITAL ASSETS During the year ended 31 March 2024 the Group did not have any material acquisitions or disposals of subsidiaries associates or joint ventures. As at 31 March 2024 the Group did not have any immediate plans for material investments and capital assets.SIGNIFICANT INVESTMENTS AND CAPITAL ASSETS As at 31 March 2024 the Group did not have any significant investment or capital assets.- 20 -EMPLOYEES AND REMUNERATION POLICIES As at 31 March 2024 the Group employed around 732 employees who include the Directors of the Company and those of subsidiaries (2023: 1353 employees). The total employee benefit expense for the year ended 31 March 2024 was RMB88.5 million a decrease of 18.6% when compared with that for the year ended 31 March 2023. Such decrease was mainly attributable to decrease in number of staff headcount.The Group offers its employees competitive remuneration packages based on their performance qualifications competence displayed and market comparable to attract retain and motivate high quality individuals. Remuneration package typically comprises salary contribution to pension schemes and discretionary bonuses. The Group also provides trainings to its staff. Remuneration packages are reviewed regularly to reflect the market practice and employees’ performance.Employees of the Group in the PRC are entitled to participate in various PRC Government supervised housing funds medical insurances and other social insurance plan. The Group contributes on a monthly basis to these funds based on certain percentages of the salaries of the employees subject to certain ceiling. The Group’s liability in respect of these funds is limited to the contributions payable in each year. Contributions to the housing funds medical insurances and other social insurances are expensed as incurred.EVENTS AFTER THE REPORTING PERIOD On 3 April 2024 the Company has launched a SGD50 million multicurrency multi-series unsecuredand unsubordinated commercial paper facility programme (the “SDAX Multicurrency CP FacilityProgramme”) pursuant to which the Company may issue and list commercial paper in the form of security tokens in multiple series on the SDAX digital platform operated by SDAX Exchange Pte.Ltd. a company incorporated in Singapore that is a recognised market operator and regulated by the Monetary Authority of Singapore.On 3 April 2024 the Company has launched the first issue of commercial papers in the form of digital securities denominated in Singapore Dollars under the SDAX Multicurrency CP Facility Programme at an interest rate of 5.6% per annum and matures approximately three (3) months from the date of issuance (the “3-month SGD Series 001 Issuance”). For further details please refer to the announcement of the Company dated 3 April 2024.Save as disclosed in this announcement there were no other significant events that might affect the Group since 31 March 2024 and up to the date of this announcement.SUFFICIENCY OF PUBLIC FLOAT According to the information that is publicly available to the Company and within the knowledge of the Board as at the date of this announcement the Company has maintained the public float as required under the Listing Rules.- 21 -COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE The Directors are committed to achieving high standards of corporate governance with a view to safeguarding the interests of the Shareholders. The Board has reviewed the corporate governance practices of the Company and is of the view that the Company has applied and complied with all the principles and code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the year ended 31 March 2024.PURCHASE SALE OR REDEMPTION OF THE LISTED SECURITIES OF THE COMPANY During the year ended 31 March 2024 and up to the date of this announcement neither the Company nor any of its subsidiaries has purchased sold or redeemed any of the listed securities of the Company.MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted its code of conduct regarding the securities transactions by the Directors on the terms no less exacting terms than the required standard set forth in the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix C3 to the Listing Rules. Having made specific enquiries of all Directors of the Company all Directors confirmed that they have complied with the required standard set out in the Model Code during the year ended 31 March 2024. 2024 AGM The 2024 AGM of the Company will be held at Room 601 Building 8 PortMix No. 2377 Shenkun Road Minhang District Shanghai the PRC on Thursday 26 September 2024. The notice of the 2024 AGM of the Company will be published and despatched to the Shareholders in the manner as required by the Listing Rules and the Articles of Association of the Company in due course.CLOSURE OF REGISTER OF MEMBERS For determining the entitlement to attend and vote at the 2024 AGM the register of members of the Company will be closed from Monday 23 September 2024 to Thursday 26 September 2024 (both days inclusive) during which period no share transfers will be registered. In order to be eligible to attend and vote at the 2024 AGM all transfer forms accompanied by relevant share certificates must be lodged for registration with Tricor Investor Services Limited the Company’s Hong Kong branch share registrar and transfer office at 17/F Far East Finance Centre 16 Harcourt Road Hong Kong not later than 4:30 p.m. on Friday 20 September 2024.- 22 -AUDIT COMMITTEE The Company has set up an audit committee (the “Audit Committee”) for the purposes of reviewing and providing supervision over financial reporting process and internal audit function of the Group reviewing the internal controls and risk management system of the Group. The Audit Committee comprises three Independent Non-executive Directors namely Ms. Pan I-Shan Mr. Wan Kum Tho and Dr. Huang Chao-Jen. Ms. Pan I-Shan is the Chairlady of Audit Committee. The Audit Committee has reviewed the consolidated annual results of the Group for the year ended 31 March 2024 and the accounting principles and practices adopted by the Group the internal controls and risk management system and financial reporting matters and has given their opinion and recommendations to the Board on 28 June 2024. The Audit Committee considers that the annual financial information of the Company has complied with the applicable accounting standards and the Company has made appropriate disclosure thereof.SCOPE OF WORK OF RSM HONG KONG The figures in respect of the Group’s consolidated statement of comprehensive income consolidated statement of financial position consolidated statement of changes in equity and the related notes thereto for the year ended 31 March 2024 as set out in this announcement have been agreed by the Group’s external auditor RSM Hong Kong to the amounts set out in the Group’s audited consolidated financial statements for the year ended 31 March 2024. The work performed by RSM Hong Kong 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 opinion or assurance conclusion has been expressed by RSM Hong Kong on this announcement.PUBLICATION OF AUDITED ANNUAL RESULTS AND DESPATCH OF ANNUAL REPORT This annual results announcement of the Company has been published on the website of the Stock Exchange (www.hkexnews.hk) and on the website of the Company (www.tathongchina.com). The annual report of the Company for the year ended 31 March 2024 containing all the relevant information required by the Listing Rules will be despatched to the Shareholders and published on the websites of the Stock Exchange and the Company in accordance with the Listing Rules.By order of the Board Tat Hong Equipment Service Co. Ltd.Mr. Ng San Tiong Chairman and Non-executive Director Hong Kong/the PRC 28 June 2024 As at the date of this announcement the Board comprises Mr. Yau Kok San and Mr. Lin Han-wei as Executive Directors; Mr. Ng San Tiong Mr. Sun Zhaolin Mr. Liu Xin Mr. Guo Jinjun as Non-executive Directors; and Ms. Pan I-Shan Mr. Wan Kum Tho and Dr. Huang Chao-Jen as Independent Non- executive Directors.