L K Technology : 2021/22 INTERIM REPORT

1. Financial Highlights
2. Corporate Information
3. Management Discussion and Analysis

7 Other Information

1. Report on Review of Interim Financial Information
2. Condensed Consolidated Statement

of Financial Position

18 Condensed Consolidated Income Statement

1. Condensed Consolidated Statement of Comprehensive Income
2. Condensed Consolidated Statement of Changes in Equity

1. Condensed Consolidated Statement of Cash Flows
2. Notes to the Condensed Consolidated Interim Financial Information

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, PhD, SBS, JP

Mr. Tsang Yiu Keung, Paul

COMPANY SECRETARY

Miss Chung Wing Man

AUTHORISED REPRESENTATIVES

Ms. Chong Siw Yin

Miss Chung Wing Man

AUDIT COMMITTEE

Mr. Tsang Yiu Keung, Paul

Dr. Lui Ming Wah, PhD, SBS, JP

Dr. Low Seow Chay

NOMINATION COMMITTEE

Dr. Low Seow Chay

Dr. Lui Ming Wah, PhD, SBS, JP

Mr. Tsang Yiu Keung, Paul

REMUNERATION COMMITTEE

Dr. Lui Ming Wah, PhD, SBS, JP

Mr. Tsang Yiu Keung, Paul

Dr. Low Seow Chay

AUDITOR

PricewaterhouseCoopers

Certified Public Accountants

Registered Public Interest Entity Auditor

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

2021/22 Report Interim

M A N A G E M E N T D I S C U S S I O N

BUSINESS REVIEW

For the six months ended 30 September 2021 (the "Period under Review"), the Group recorded a revenue of HK$2,773,518,000, representing an increase of approximately 60% as compared to the same period last year. The profit attributable to owners of the Company was HK$323,845,000, representing a substantial increase of 186.2% as compared to a profit of HK$113,151,000 in the corresponding period last year.

T h e G r o u p ' s r e v e n u e f r o m t h e P R C m a r k e t w a s HK$2,229,079,000, representing an increase of 64.0% as compared to the same period last year.

In 2021, with the gradual improvement of the pandemic situation in China, the automotive industry has seen tremendous recovery and the automotive market is recovering significantly from a low base. The production and sales volume of vehicles saw a substantial increase as compared to the same period last year, and the growth in alternative fuel vehicle sales has far exceeded expectations. According to the data provided by China Association of Automobile Manufacturers, the production and sales volume of vehicles in China from January to September 2021 were 18.243 million and 18.623 million, respectively, representing an increase of approximately 7.5% and 8.7% as compared to the same period last year. The production and sales volume of alternative fuel vehicles saw a significant increase and amounted to 2.166 million and 2.157 million, respectively, representing an increase of 1.8 times and 1.9 times, respectively, which drove the demand for die-casting machines.

Revenue from the overseas market was HK$544,439,000, representing an increase of 44.9% as compared to the same period last year. With the increase in vaccination rates and the gradual relaxation of social distancing measures, especially in European countries, major economies continue to gather recovery momentum, with clear signs that the demand for industrial equipment is turning around.

L.K. Technology Holdings Limited

A N D A N A L Y S I S

Die-casting Machine

During the Period under Review, the revenue of the Group's die-casting machine and peripheral equipment business was HK$1,889,649,000, representing an increase of 68.9% as compared to the same period last year.

Specifically, the revenue from the PRC market was HK$1,449,404,000, representing an increase of 85.2% as compared to the same period last year. During the period, the automotive industry in China demonstrated a distinctive growth trend, driving the development of the automotive components industry.

Plastic Injection Moulding Machine

During the Period under Review, the revenue of the plastic injection moulding machine business of the Group was HK$785,449,000, representing an increase of 39.2% as compared to the same period last year. Downstream industries of plastic injection moulding machine, such as medical care, packaging, small home appliances, and daily necessities, saw sound demands. Manufacturers are actively investing in new equipment.

Computerised Numerical Controlled (CNC) Machining Centre

During the Period under Review, the revenue of the Group's CNC machining centre business was HK$98,420,000, representing an increase of 90.0% as compared to the same period last year. As the Group endeavoured to reduce operating costs and enhance inventory management, the loss was further improved during the period.