# 7. LOSS/PROFIT FROM OPERATIONS

<table><tr><td rowspan="4"></td><td colspan="2">For the three months ended
30 September</td><td colspan="2">For the six months ended
30 September</td></tr><tr><td>2021</td><td>2020</td><td>2021</td><td>2020</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td></tr><tr><td>The Gr’oups (loss)/profit 
from operations is arrived 
at after charging/(crediting):</td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of sales</td><td>6,205</td><td>2,516</td><td>8,651</td><td>208,107</td></tr><tr><td>Depreciation charge</td><td></td><td></td><td></td><td></td></tr><tr><td>– property, plant and 
equipment</td><td>57</td><td>66</td><td>111</td><td>171</td></tr><tr><td>– right-of-use assets</td><td>–</td><td>1,359</td><td>–</td><td>2,704</td></tr><tr><td>Net foreign exchange 
(loss)/gain</td><td>1</td><td>18</td><td>1</td><td>19</td></tr><tr><td>Staff costs (including 
director’s remuneration)</td><td>5,940</td><td>6,415</td><td>12,398</td><td>11,395</td></tr></table>

# 8. FINANCE COSTS

<table><tr><td rowspan="4"></td><td colspan="2">For the three months ended
30 September</td><td colspan="2">For the six months ended
30 September</td></tr><tr><td>2021</td><td>2020</td><td>2021</td><td>2020</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td></tr><tr><td>Interest on other borrowing</td><td>10,280</td><td>14,625</td><td>26,496</td><td>28,748</td></tr><tr><td>Interest on lease liabilities</td><td>–</td><td>319</td><td>–</td><td>319</td></tr><tr><td>Total</td><td>10,280</td><td>14,944</td><td>26,496</td><td>29,067</td></tr></table>

# 9. INCOME TAX EXPENSE

<table><tr><td rowspan="4"></td><td colspan="2">For the three months ended 
30 September</td><td colspan="2">For the six months ended 
30 September</td></tr><tr><td>2021</td><td>2020</td><td>2021</td><td>2020</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td><td>(Unaudited)</td></tr><tr><td>Current tax charged:</td><td></td><td></td><td></td><td></td></tr><tr><td>PRC Enterprise Income Tax</td><td>13</td><td>67</td><td>1,532</td><td>5,659</td></tr><tr><td>Total tax charged</td><td>13</td><td>67</td><td>1,532</td><td>5,659</td></tr></table>

Under the Law of the PRC on Enterprise Income Tax (the “EIT Law”) and Implementation Regulation of the EIT Law, the tax rate of the PRC subsidiaries is 25% from 1 January 2008 onwards.

No provision for Hong Kong Profits Tax has been made as the Group has no assessable profits in Hong Kong or the estimated assessable profit was wholly absorbed by tax losses brought forward for the six months ended 30 September 2021 (2020: Nil).

The Group had no significant unprovided deferred tax assets and liabilities at 30 September 2021 (2020: Nil).

# 10. LOSS PER SHARE

# Basic loss per share

The calculation of the basic loss per share is based on the loss attributable to owners of the Company for the three months ended 30 September 2021 of approximately HK\$11,253,000 (2020: loss attributable to owners of the Company of approximately HK\$27,994,000) and loss attributable to owners of the Company for the six months ended 30 September 2021 of approximately HK\$26,499,000 (2020: loss attributable to owners of the Company of approximately HK\$27,524,000) and the weighted average of 3,640,627,457 shares in issue during the three months ended 30 September 2021 (2020: 3,564,945,946 shares) and the weighted average of 3,640,627,457 shares in issue during the six months ended 30 September 2021 (2020: 3,564,945,946 shares).

# Diluted loss per share

No diluted loss per share were presented as there were no potential ordinary shares in issue for the three months and six months ended 30 September 2021.