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CORPORATE
INFORMATION
CORPORATE
PROFILE
CHAIRMAN'S
STATEMENT
FINANCIAL
HIGHLIGHTS
MANAGEMENT DISCUSSION AND ANALYSIS
MAJOR EVENTS OF
L.K. TECHNOLOGY IN 2023/2024
DIRECTORS AND SENIOR MANAGEMENT PROFILES
CORPORATE
GOVERNANCE REPORT
DIRECTORS'
REPORT
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58 | | |
60 | | |
61 | | |
62 | | |
64 | | |
65 | | |
- |
- |
INDEPENDENT
AUDITOR'S REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED INCOME
STATEMENT
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
MAJOR INVESTMENT PROPERTIES SUMMARY
FIVE-YEAR
FINANCIAL SUMMARY
BOARD OF DIRECTORS
Executive Directors
Ms. Chong Siw Yin (Chairperson)
Mr. Liu Zhuo Ming (Chief Executive Officer)
Mr. Tse Siu Sze
Independent Non-executive Directors
Dr. Low Seow Chay
Dr. Lui Ming Wah, SBS, JP
Mr. Tsang Yiu Keung, Paul
Mr. Look Andrew
COMPANY SECRETARY
Ms. Ng Ka Man
AUTHORISED REPRESENTATIVES
Ms. Chong Siw Yin
Ms. Ng Ka Man
AUDIT COMMITTEE
Mr. Tsang Yiu Keung, Paul (Chairperson)
Dr. Lui Ming Wah, SBS, JP
Dr. Low Seow Chay
Mr. Look Andrew
NOMINATION COMMITTEE
Mr. Look Andrew (Chairperson)
Dr. Low Seow Chay
Dr. Lui Ming Wah, SBS, JP
Mr. Tsang Yiu Keung, Paul
REMUNERATION COMMITTEE
Dr. Lui Ming Wah, SBS, JP (Chairperson)
Mr. Tsang Yiu Keung, Paul
Dr. Low Seow Chay
Mr. Look Andrew
AUDITOR
PricewaterhouseCoopers
Certified Public Accountants
Registered Public Interest Entity Auditor
CORPORATE INFORMATION
As at 28 June 2024
REGISTERED OFFICE
Cricket Square
Hutchins Drive, P.O. Box 2681
Grand Cayman, KY1-1111
Cayman Islands
PRINCIPAL PLACE OF BUSINESS IN HONG KONG
Unit A, 8th Floor
Mai Wah Industrial Building 1-7 Wah Sing Street Kwai Chung
New Territories Hong Kong
HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE
Computershare Hong Kong Investor
Services Limited
Shops 1712-1716, 17th Floor
Hopewell Centre
183 Queen's Road East
Wanchai
Hong Kong
PRINCIPAL BANKERS
China Construction Bank (Asia)
- Corporation Limited Bank of China Intesa Sanpaolo Spa
STOCK CODE
558
WEBSITE
www.lk.world
CORPORATE PROFILE
4 | L.K. TECHNOLOGY HOLDINGS LIMITED
CORPORATE PROFILE
L.K. Technology Holdings Limited (the "Company") is one of the world's largest die-casting machine manufacturers. The Group engages in the design, manufacture and sale of three product lines, i.e. die- casting machine, plastic injection moulding machine and computerised numerical controlled (CNC) machining centre. The Group has manufacturing bases and R&D centres in Shenzhen, Zhongshan, Ningbo, Shanghai, Fuxin, Kunshan, Taiwan and Italy. To capture overseas markets, the Group has established sales and services companies in the USA and India. The Group also operates a casting factory in Fuxin for the production of cast iron/steel components.
ANNUAL REPORT 2023/24 | 5
CHAIRMAN'S STATEMENT
Dear shareholders,
On behalf of the board of directors (the "Board") of L.K. Technology Holdings Limited (the "Company"), I hereby present the results of the Company and its subsidiaries (the "Group") for the year ended 31 March 2024 (the "Year").
The Group recorded HK$5,837,373,000 of revenue for the Year, representing a year-on-year decrease of 1%. Profit attributable to equity holders of the Group reached HK$484,118,000, representing a year-on- year decrease of 9.0%.
In 2023, China's alternative fuel vehicle market experienced rapid growth with a sales volume of 9.495 million vehicles, accounting for a market share of 31.6% and representing a year-on-year increase of 37.9%. Among which, 1.203 million alternative fuel vehicles were exported, representing
- year-on-yearincrease of 77.6%. China's production and sales volume accounted for over 60% of the global share. According to the forecast of the China Association of Automobile Manufacturers, sales of alternative fuel vehicles will grow to 11.5 million vehicles in 2024, and continue a stable and positive development trajectory at a growth rate of over 3%, which will be a crucial year for China's alternative fuel vehicle industry to further elevate its global position.
In terms of development momentum, China's alternative fuel vehicle industry maintains its leadership in both technology and regulations. In the competition landscape, the alternative fuel vehicle industry faces intense competition within the manufacturing sector, and will embrace a phase of deep restructuring this year, where the industry will witness an increasing concentration, while enterprises are required to sharpen their overall competitive edges. In the process of internationalization, our overseas production is experiencing rapid growth, gradually orienting our focus towards the development of localized overseas investments.
Currently, overseas customers recognize the immense development resilience and potential of integrated die-casting technology for the alternative fuel vehicle sector. The promising fundamentals of the Group remain unchanged in the long run, and we firmly grabs at new opportunities emerging from rapid overseas growth, where we are currently exploring overseas market through further expansion of direct investments. The Group will continue to make precise investment on R&D for successive rollout of different advanced technologies, so as to ensure rapid launch of various innovative products and continue to deepen the roadmap of die-casting solutions for alternative fuel vehicle.
Finally, on behalf of the Board and our management team, I would like to take this opportunity to express my appreciation to our customers, suppliers, bankers, business partners and shareholders for their great support and encouragement. My heartfelt gratitude also goes to our dedicated Board members and committed staff for their diligence and effort, which have contributed to the business development of the Group in the past year.
Chong Siw Yin
Chairperson
28 June 2024
"Currently, overseas customers recognize the immense development resilience and potential of integrated die-casting technology for the alternative fuel vehicle sector. The promising fundamentals of the Group remain unchanged in the long run."
6 | L.K. TECHNOLOGY HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS
For the year ended 31 March | |||
2024 | 2023 | Change | |
HK$'000 | HK$'000 | % | |
Operating results: | |||
Revenue | 5,837,373 | 5,896,349 | -1.0% |
Gross profit | 1,588,260 | 1,596,687 | -0.5% |
Gross profit margin | 27.2% | 27.1% | 0.1% |
Operating profit | 658,751 | 677,474 | -2.8% |
Operating profit margin | 11.3% | 11.5% | -0.2% |
Profit for the year | 517,739 | 532,235 | -2.7% |
Net profit margin | 8.9% | 9.0% | -0.1% |
Return on equity | 12.9% | 13.8% | -0.9% |
HK cents | HK cents | ||
Basic and diluted earnings per share | 35.3 | 38.7 | -8.8% |
At 31 March | |||
2024 | 2023 | Change | |
HK$'000 | HK$'000 | % | |
Financial position: | |||
Total assets | 10,905,823 | 8,539,878 | 27.7% |
Net assets | 4,016,099 | 3,855,716 | 4.2% |
Net current assets | 3,475,338 | 1,275,782 | 172.4% |
Cash and cash equivalents | 2,375,176 | 605,365 | 292.4% |
Total borrowings | 1,792,919 | 1,641,046 | 9.3% |