About SHANYU GP-NEW Company

Over the past few years, the outbreak of the novel coronavirus (“COVID-19”) and the trade war (“trade war”) between the People's Republic of China (“China”) and the United States (“US”) have caused the global economy to deteriorate, putting significant pressure on the Group's operations. Since the beginning of 2020, the above events have had a significant impact on the Group's production and profitability. Due to deteriorating global economic conditions, demand for two-way wireless walkie-talkie products has declined, resulting in a significant reduction in purchase orders from customers. As a result, revenue decreased by approximately 24.8%, from approximately HK$66,400,000 for the year ended March 31, 2023 to approximately HK$50,000,000 for the year ended March 31, 2024. Since the Group's restructuring plan was implemented at the beginning of last year, the results proved that the plan was a successful operation to help the Group adapt to new market dynamics and recover from the effects of COVID-19 and the trade war. In the current financial year, the Group recorded its first annual profit of HK$2 million since the COVID-19 outbreak. Furthermore, the Group significantly successfully improved its financial position during the fiscal year. Although the Group maintained its net current liabilities on March 31, 2024, the Group has successfully reversed last year's net liabilities and recorded a net asset value of HK$6,300,000 for the year ended March 31, 2024. The Board will continue to seek appropriate measures to improve the Group's financial position in the next year and is expected to reverse the net current liabilities situation in the near future. Overall, the Board of Directors is pleased to inform all shareholders that the Group's performance has improved significantly during the year, and that the Board will continue to evaluate the Group's current business strategy to improve the Group's business efficiency and overall performance.