[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Ling Holdings Limited significantly improved its financial performance for the year ended March 31, 2024, turning a loss into profit despite a decrease in revenue, with gross profit and basic earnings per share both moving from negative to positive Summary of Key Financial Data for FY2024 | Metric | 2024 (HK$ Million) | 2023 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 194.0 | 239.0 | -18.8% | | Gross profit (loss) | 28.6 | (6.6) | Turned to profit | | Gross profit (loss) margin | 14.8% | -2.8% | Significant improvement | | Profit (loss) attributable to owners of the Company | 0.7 | (30.0) | Turned to profit | | Basic earnings (loss) per share | 0.08 HK cents | (3.75) HK cents | Turned to profit | - The Board does not recommend the payment of any final dividend for the year ended March 31, 2024[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents Ling Holdings Limited's consolidated statement of profit or loss and other comprehensive income and consolidated statement of financial position for the year ended March 31, 2024, detailing key financial data including revenue, costs, profit, assets, liabilities, and shareholders' equity [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the year ended March 31, 2024, the company saw a decrease in revenue but, through effective cost control, turned gross loss into profit, ultimately achieving an annual profit and positive basic earnings per share Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Metric | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 194,043 | 238,957 | | Direct costs | (165,406) | (245,548) | | Gross profit (loss) | 28,637 | (6,591) | | Other income | 1,429 | 2,940 | | Administrative expenses | (27,651) | (27,387) | | Finance costs | (1,758) | (1,684) | | Profit (loss) before tax | 655 | (32,722) | | Income tax credit | – | 2,683 | | Profit (loss) and total comprehensive income (expense) for the year | 655 | (30,039) | | Basic earnings (loss) per share (HK cents) | 0.08 | (3.75) | [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of March 31, 2024, non-current assets remained stable, while current assets and liabilities decreased, leading to a slight increase in net current assets and total equity, indicating a stable financial position Consolidated Statement of Financial Position (Summary) | Metric | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 44,248 | 43,978 | | Current assets | 96,673 | 135,187 | | **Liabilities** | | | | Current liabilities | 58,734 | 98,888 | | Non-current liabilities | 4,739 | 3,484 | | **Equity** | | | | Net assets | 77,448 | 76,793 | | Total equity | 77,448 | 76,793 | - Bank balances increased from **HK$12,636 thousand** in 2023 to **HK$29,853 thousand** in 2024, indicating improved liquidity[7](index=7&type=chunk) - Trade receivables decreased from **HK$38,949 thousand** in 2023 to **HK$19,954 thousand** in 2024, and contract assets decreased from **HK$78,803 thousand** to **HK$43,315 thousand**, reflecting improved accounts receivable management or reduced business volume[7](index=7&type=chunk) [Notes to the Consolidated Financial Statements](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the consolidated financial statements, covering general company information, application of accounting standards, revenue recognition, other income components, taxation, earnings per share calculation, receivables and payables, contract assets and liabilities, and contingent liabilities [1. General Information](index=4&type=section&id=1.%20General%20Information) Ling Rui Holdings Limited is incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily engaged in foundation engineering services in Hong Kong, with financial statements presented in HKD - The Group is principally engaged in the provision of foundation engineering services in Hong Kong[9](index=9&type=chunk) - The consolidated financial statements are presented in Hong Kong dollars, which is also the functional currency of the Group[10](index=10&type=chunk) [2. Application of New and Revised Hong Kong Financial Reporting Standards](index=4&type=section&id=2.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) Several new and revised HKFRSs were first applied this year, with no significant impact on the Group's current and prior period financial position or performance, and no material impact is expected from future applications - The application of new and revised Hong Kong Financial Reporting Standards in the current year had no significant impact on the Group's financial position and performance and/or disclosures in these consolidated financial statements for the current and prior periods[11](index=11&type=chunk) - The Directors of the Company do not anticipate that the application of all other new Hong Kong Financial Reporting Standards that have been issued but are not yet effective will have a material impact on the consolidated financial statements in the foreseeable future[14](index=14&type=chunk) [3. Revenue and Segment Information](index=5&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's revenue is entirely derived from foundation engineering services provided in Hong Kong, recognized over time using the input method, operating as a single business segment - Revenue represents the net amounts received and receivable by the Group for foundation engineering services provided to customers, recognized over time using the input method based on the progress and outcome of foundation engineering service contracts[15](index=15&type=chunk) Revenue Recognition Time and Classification | Revenue Classification | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Recognized over time: Foundation engineering services | 194,043 | 238,957 | - The Group's revenue is solely derived from foundation engineering services in Hong Kong, thus operating as a single operating segment[17](index=17&type=chunk) [4. Other Income](index=6&type=section&id=4.%20Other%20Income) Other income primarily includes government grants, interest income, sales of scrap materials, and compensation received, with a significant decrease this year mainly due to the absence of government grants received in the prior period Other Income Components | Item | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Government grants | – | 2,233 | | Interest income - bank deposits | 10 | 47 | | Interest income from life insurance policies | 133 | 131 | | Sales of scrap materials | 91 | 93 | | Machine rental income | – | 70 | | Compensation received | 1,139 | – | | Miscellaneous income | – | 279 | | Other | 56 | 87 | | **Total** | **1,429** | **2,940** | - The decrease in other income was mainly due to the absence of government grants of approximately **HK$2.2 million** received under the Employment Support Scheme for the year ended March 31, 2023[19](index=19&type=chunk) [5. Profit (Loss) Before Tax](index=6&type=section&id=5.%20Profit%20(Loss)%20Before%20Tax) Profit before tax this year was primarily influenced by factors such as depreciation, directors' and staff costs, with total staff costs showing a decrease compared to the previous year Factors Affecting Profit (Loss) Before Tax | Item | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 900 | 900 | | Depreciation of property and equipment | 12,269 | 9,826 | | Directors' remuneration | 4,418 | 3,909 | | Other staff costs (salaries and benefits) | 35,377 | 48,686 | | Retirement benefit scheme contributions | 1,013 | 1,465 | | **Total staff costs** | **40,808** | **54,060** | [6. Income Tax Credit](index=7&type=section&id=6.%20Income%20Tax%20Credit) There was no income tax credit this year, compared to a tax credit last year, with Hong Kong implementing a two-tiered profits tax system for eligible entities Income Tax Credit | Item | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong profits tax: Current tax | – | 96 | | Hong Kong profits tax: Deferred tax | – | (2,779) | | **Total** | **–** | **(2,683)** | - Under the two-tiered profits tax regime in Hong Kong, eligible group entities are taxed at **8.25%** on the first **HK$2 million** of assessable profits and **16.5%** on profits above **HK$2 million**[22](index=22&type=chunk) [7. Dividends](index=7&type=section&id=7.%20Dividends) No dividends were paid or declared for the years ended March 31, 2024, and 2023, nor have any been proposed since the end of the reporting period - No dividends were paid or declared for the years ended March 31, 2024, and 2023, and no dividends have been proposed since the end of the reporting period[23](index=23&type=chunk) [8. Earnings (Loss) Per Share](index=7&type=section&id=8.%20Earnings%20(Loss)%20Per%20Share) Basic earnings per share improved significantly to **0.08 HK cents** this year, compared to a basic loss per share of **3.75 HK cents** last year, with no diluted earnings per share presented due to the absence of potential ordinary shares Earnings (Loss) Per Share Calculation | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Profit (loss) for the year (HK$ Thousand) | 655 | (30,039) | | Weighted average number of ordinary shares (thousands) | 800,000 | 800,000 | | Basic earnings (loss) per share (HK cents) | 0.08 | (3.75) | - Diluted earnings (loss) per share are not presented as there were no potential ordinary shares issued during these two years[24](index=24&type=chunk) [9. Trade Receivables](index=8&type=section&id=9.%20Trade%20Receivables) Both total trade receivables and the provision for impairment losses decreased, with the company granting credit periods of 7 to 45 days and a high proportion of short-term receivables in the aging analysis Trade Receivables and Provision for Impairment Losses | Item | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables | 24,731 | 41,601 | | Less: Provision for impairment losses | (4,777) | (2,652) | | **Net** | **19,954** | **38,949** | Aging Analysis of Trade Receivables | Aging | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 14,182 | 29,147 | | 31 to 60 days | 3,888 | 3,571 | | 61 to 90 days | 1,884 | – | | 91 to 365 days | – | 1,539 | | Over 365 days | – | 4,692 | | **Total** | **19,954** | **38,949** | [10. Contract Assets and Contract Liabilities](index=8&type=section&id=10.%20Contract%20Assets%20and%20Contract%20Liabilities) Both contract assets and contract liabilities decreased, with contract assets primarily representing rights to consideration for completed but unbilled work, which convert to trade receivables when unconditional Contract Assets and Contract Liabilities | Item | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | **Contract assets** | | | | Foundation engineering services | 43,526 | 81,137 | | Less: Provision for impairment losses | (211) | (2,334) | | **Net contract assets** | **43,315** | **78,803** | | **Contract liabilities** | | | | Foundation engineering services | 2,423 | 4,263 | - Contract assets primarily relate to the Group's rights to consideration for work completed but not yet billed, as these rights are conditional on the Group's future performance[27](index=27&type=chunk) [11. Trade Payables](index=9&type=section&id=11.%20Trade%20Payables) Total trade payables significantly decreased, with credit terms ranging from 0 to 60 days, and the aging analysis showing a substantial reduction in payables over 60 days Aging Analysis of Trade Payables | Aging | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 6,479 | 7,449 | | 31 to 60 days | 6,514 | 12,256 | | Over 60 days | 2,526 | 17,338 | | **Total** | **15,519** | **37,043** | - The credit period for trade payables ranges from **0 to 60 days**[29](index=29&type=chunk) [12. Share Capital](index=9&type=section&id=12.%20Share%20Capital) The company's authorized and issued and fully paid share capital remained unchanged during the reporting period, consisting of **800,000,000 shares** with a par value of **HK$0.01** each Share Capital Structure | Item | Number of Shares | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Authorized share capital (par value HK$0.01 per share) | 2,000,000,000 | 20,000 | | Issued and fully paid share capital (par value HK$0.01 per share) | 800,000,000 | 8,000 | [13. Contingent Liabilities](index=9&type=section&id=13.%20Contingent%20Liabilities) The company was involved in two lawsuits with Sun Ming Construction Limited, which were later consolidated, and Ming Lee Foundation Engineering accepted a payment of **HK$9,300,000** on February 9, 2024, to resolve all consolidated actions - Ming Lee Foundation Engineering, an indirect wholly-owned subsidiary of the Company, received two writs of summons from Sun Ming Construction Limited alleging overpayments of approximately **HK$441,000** and **HK$2,001,000** respectively, later revised to approximately **HK$4,588,000**[30](index=30&type=chunk) - Ming Lee Foundation Engineering filed defenses and counterclaims against Sun Ming Construction Limited and Sun Ming Construction for unpaid amounts of approximately **HK$4,764,000** and **HK$5,536,000** for six completed construction projects[30](index=30&type=chunk) - A notice of acceptance of payment with conditions was issued on February 9, 2024, whereby Ming Lee Foundation Engineering accepted a total payment of **HK$9,300,000** into court to settle all consolidated actions[30](index=30&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) The Management Discussion and Analysis section reviews the Group's business performance, market outlook, key risks and uncertainties, and elaborates on financial review, capital structure, liquidity, financial resources, employee information, and corporate governance [Business Review](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group primarily provides foundation engineering services in Hong Kong, with revenue decreasing by **18.8%** to **HK$194.0 million** for the year ended March 31, 2024, mainly due to selecting reputable clients to improve credit control in a challenging business environment - The Group is a main contractor in Hong Kong primarily engaged in providing foundation engineering services, including excavation and lateral support works, pile cap works, and piling construction, site formation works, and other ancillary services[32](index=32&type=chunk) - For the year ended March 31, 2024, the Group recorded revenue of approximately **HK$194.0 million**, a decrease of approximately **18.8%** compared to approximately **HK$239.0 million** in the same period last year[32](index=32&type=chunk) - The decrease in revenue was due to selecting clients with good track records of settling receivables to improve the Group's credit control in response to a challenging business environment[32](index=32&type=chunk) [Outlook](index=10&type=section&id=%E5%B1%95%E6%9C%9B) Directors anticipate a continued slowdown in Hong Kong's private property market, with the construction industry facing economic uncertainty, reduced opportunities, increased competition, and rising construction costs, while the Group will maintain prudent financial management and enhance operational capabilities - The Directors believe that the general outlook and business environment for the industry in which the Group operates remain challenging, with the Hong Kong private property market expected to remain slow, adversely affecting the construction industry[33](index=33&type=chunk) - High interest rates lead to increased construction costs, impacting profitability[33](index=33&type=chunk) - The Group will adhere to prudent financial management in project selection and cost control, and will continue to obtain other qualifications and enhance its financial resources, investing in human and information systems to improve its operational capabilities and efficiency[33](index=33&type=chunk) [Key Risks and Uncertainties](index=10&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E7%A2%BA%E5%AE%9A%E6%80%A7) The Group's main risks include high revenue reliance on non-recurring contracts and a few clients, the risk of subcontractor non-performance, and potential deviations of actual project time and costs from estimates - A significant portion of the Group's revenue is derived from non-recurring contracts awarded by a few clients, and any reduction in the number of projects from the Group's major clients will adversely affect its operations and financial results[34](index=34&type=chunk) - The Group may be held responsible for non-performance, delayed performance, non-compliant performance, or breaches by its subcontractors[34](index=34&type=chunk) - The Group determines tender prices based on estimated time and costs involved in projects, and actual time and costs incurred may deviate from estimates due to unforeseen circumstances[34](index=34&type=chunk) [Financial Review](index=11&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section details the changes in the Group's revenue, direct costs, gross profit, other income, administrative expenses, and ultimately net profit (loss), along with their primary causes [Revenue](index=11&type=section&id=%E6%94%B6%E7%9B%8A) The Group's revenue decreased by **18.8%** from **HK$239.0 million** in 2023 to **HK$194.0 million** in 2024, primarily due to the economic downturn in the construction industry and client selection for improved credit control - The Group's revenue decreased by approximately **18.8%** from approximately **HK$239.0 million** for the year ended March 31, 2023, to approximately **HK$194.0 million** for the year ended March 31, 2024[35](index=35&type=chunk) - This decrease was mainly due to the economic downturn in the construction industry and the selection of clients with good track records of settling receivables to improve the Group's credit control in response to a challenging business environment[35](index=35&type=chunk) [Direct Costs](index=11&type=section&id=%E7%9B%B4%E6%8E%A5%E6%88%90%E6%9C%AC) The Group's direct costs decreased significantly by **32.6%** from **HK$245.5 million** in 2023 to **HK$165.4 million** in 2024 - The Group's direct costs for the year ended March 31, 2024, were approximately **HK$165.4 million**, a decrease of approximately **32.6%** compared to approximately **HK$245.5 million** for the year ended March 31, 2023[36](index=36&type=chunk) [Gross Profit (Loss) and Gross Profit (Loss) Margin](index=11&type=section&id=%E6%AF%9B%E5%88%A9%EF%BC%88%E6%90%8D%EF%BC%89%E5%8F%8A%E6%AF%9B%E5%88%A9%EF%BC%88%E6%90%8D%EF%BC%89%E7%8E%87) The Group's gross profit turned from a loss of **HK$6.6 million** in 2023 to a profit of **HK$28.6 million** in 2024, with the gross profit margin improving from **-2.8%** to **14.8%**, primarily due to close monitoring of project costs and schedules, reducing loss-making contracts - The Group's gross profit for the year ended March 31, 2024, was approximately **HK$28.6 million**, compared to a gross loss of approximately **HK$6.6 million** for the year ended March 31, 2023[37](index=37&type=chunk) - The gross profit margin improved from approximately **-2.8%** for the year ended March 31, 2023, to approximately **14.8%** for the year ended March 31, 2024[37](index=37&type=chunk) - The improvement in gross profit margin was mainly due to the Group's close monitoring of construction project costs and schedules to mitigate the risk of loss-making contracts[37](index=37&type=chunk) [Other Income](index=11&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income decreased from **HK$2.9 million** in 2023 to **HK$1.4 million** in 2024, primarily due to the absence of approximately **HK$2.2 million** in government grants received in the prior period - Other income decreased from approximately **HK$2.9 million** for the year ended March 31, 2023, to approximately **HK$1.4 million** for the year ended March 31, 2024[38](index=38&type=chunk) - This decrease was mainly due to the absence of government grants of approximately **HK$2.2 million** received under the Employment Support Scheme for the year ended March 31, 2023[38](index=38&type=chunk) [Administrative Expenses](index=11&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) The Group's administrative expenses for 2024 were approximately **HK$27.7 million**, remaining at a similar level compared to **HK$27.4 million** in 2023 - The Group's administrative expenses for the year ended March 31, 2024, were approximately **HK$27.7 million**, remaining at a similar level compared to approximately **HK$27.4 million** for the year ended March 31, 2023[39](index=39&type=chunk) [Profit (Loss) and Total Comprehensive Income (Expense) for the Year Attributable to Owners of the Company](index=12&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E5%B9%B4%E5%85%A7%E6%BA%A2%E5%88%A9%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E5%8F%8A%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89%E7%B8%BD%E9%A1%8D) The Group recorded a net profit of approximately **HK$0.7 million** in 2024, successfully reversing a net loss of approximately **HK$30.0 million** in the corresponding period of 2023 - For the year ended March 31, 2024, the Group recorded a net profit of approximately **HK$0.7 million**, compared to a net loss of approximately **HK$30.0 million** in the corresponding period of 2023[41](index=41&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=12&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B%E3%80%81%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's capital structure remained unchanged, with liquidity primarily funded by operating cash, bank borrowings, and shareholders' equity contributions, showing increased bank balances, slightly increased total equity, and significantly reduced total debt, enhancing financial stability [Capital Structure](index=12&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group's capital structure remained unchanged for the year ended March 31, 2024, consisting solely of ordinary shares - The Group's capital structure remained unchanged for the year ended March 31, 2024, consisting solely of ordinary shares[42](index=42&type=chunk) [Liquidity and Financial Resources](index=12&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group primarily funds its liquidity and capital requirements through cash generated from operations, bank borrowings, and shareholders' equity contributions, with significantly increased bank balances, slightly increased total equity, and substantially reduced total debt - The Group primarily funds its liquidity and capital requirements through cash generated from operations, bank borrowings, and shareholders' equity contributions[43](index=43&type=chunk) Liquidity and Financial Resources Overview | Metric | 2024 (HK$ Million) | 2023 (HK$ Million) | | :--- | :--- | :--- | | Bank balances | 29.9 | 12.6 | | Total equity attributable to owners of the Company | 77.4 | 76.8 | | Total debt | 63.5 | 102.4 | [Bank Borrowings and Gearing Ratio](index=12&type=section&id=%E9%8A%80%E8%A1%8C%E5%80%9F%E8%B2%B8%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The Group's bank borrowings decreased to **HK$22.2 million**, and the gearing ratio significantly dropped from **133.3%** to **82.0%**, indicating reduced financial leverage and enhanced debt repayment capability - As of March 31, 2024, the Group's bank borrowings were approximately **HK$22.2 million** (2023: approximately **HK$29.3 million**)[44](index=44&type=chunk) - The Group's gearing ratio (calculated as total debt divided by total equity) was approximately **82.0%** (2023: approximately **133.3%**)[44](index=44&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Plans for Material Investments or Capital Assets](index=12&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E5%85%AC%E5%8F%B8%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E8%A8%88%E5%8A%83) For the year ended March 31, 2024, the Company had no significant investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures, nor any other plans for material investments or capital assets - Save as disclosed in this announcement, for the year ended March 31, 2024, the Company had no significant investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures[45](index=45&type=chunk) - As of March 31, 2024, the Group had no other plans for material investments or capital assets[45](index=45&type=chunk) [Pledge of the Group's Assets](index=13&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E7%9A%84%E6%8A%B5%E6%8A%BC) The Group has pledged machinery and construction equipment, as well as life insurance policy payments, to banks and financial institutions as collateral for short-term bank loans and general banking facilities - As of March 31, 2024, the Group had pledged machinery and construction equipment with an aggregate net book value of approximately **HK$16.3 million** (March 31, 2023: approximately **HK$21.2 million**) to banks and a financial institution[47](index=47&type=chunk) - As of March 31, 2024, life insurance policy payments of approximately **HK$4.1 million** were pledged to banks to secure banking facilities granted to the Group (2023: approximately **HK$4.0 million**)[47](index=47&type=chunk) [Foreign Exchange Risk](index=13&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) All of the Group's business and bank borrowings are denominated in Hong Kong dollars, so the Directors believe there is no significant foreign exchange risk, and while no hedging policy is currently in place, it will be reviewed and applied as necessary - All of the Group's revenue-generating business and bank borrowings are denominated in Hong Kong dollars (the Group's presentation currency), therefore, the Directors believe that the Group is not exposed to significant foreign exchange risk[48](index=48&type=chunk) - The Group currently does not have a foreign currency hedging policy, but the Board will review the Group's foreign exchange risk and exposure from time to time and apply hedging as necessary[48](index=48&type=chunk) [Treasury Policy](index=13&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Directors will continue to follow a prudent policy in managing cash balances and maintaining robust liquidity to capitalize on future growth opportunities - The Directors will continue to follow a prudent policy in managing the Group's cash balances and maintaining robust liquidity to ensure the Group is well-prepared to capitalize on future growth opportunities[49](index=49&type=chunk) [Contingent Liabilities](index=13&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group's significant contingent liabilities are disclosed in Note 13 - As of March 31, 2024, the Group's significant contingent liabilities are set out in Note 13 to this announcement[50](index=50&type=chunk) [Capital Commitments](index=13&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of March 31, 2024, the Group had no significant capital commitments for the acquisition of property and equipment - As of March 31, 2024, the Group had no significant capital commitments for the acquisition of property and equipment (2023: nil)[51](index=51&type=chunk) [Segment Information](index=13&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group primarily operates in one business segment, which is the provision of foundation engineering services - The Group primarily operates in one business segment, which is the provision of foundation engineering services[52](index=52&type=chunk) [Information on Employees](index=14&type=section&id=%E6%9C%89%E9%97%9C%E5%83%B1%E5%93%A1%E7%9A%84%E8%B3%87%E6%96%99) As of March 31, 2024, the Group had **88** full-time employees, a decrease from the previous year, with total staff costs amounting to approximately **HK$40.8 million**, also lower than last year - As of March 31, 2024, the Group had **88** full-time employees working in Hong Kong (2023: **98** employees)[54](index=54&type=chunk) - Total staff costs (including directors' remuneration and mandatory provident fund contributions) for the year ended March 31, 2024, were approximately **HK$40.8 million** (2023: approximately **HK$54.1 million**)[54](index=54&type=chunk) [Dividends](index=14&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any final dividend for the year ended March 31, 2024 - The Board does not recommend the payment of any final dividend for the year ended March 31, 2024 (2023: nil)[55](index=55&type=chunk) [Events After Reporting Period](index=14&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Save as disclosed in this announcement, the Board is not aware of any significant events from March 31, 2024, up to the date of this announcement - Save as disclosed in this announcement, the Board is not aware of any significant events from March 31, 2024, up to the date of this announcement[56](index=56&type=chunk) [Standard Code for Securities Transactions by Directors](index=14&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all Directors fully complied with it during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[57](index=57&type=chunk) - Following specific enquiries, all Directors confirmed full compliance with the required standards set out in the Model Code for the year ended March 31, 2024, with no instances of non-compliance[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=14&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year ended March 31, 2024 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year ended March 31, 2024[58](index=58&type=chunk) [Audit Committee](index=14&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors and chaired by Mr. Ho Chun Chung, has reviewed the annual consolidated financial statements, confirming their compliance with applicable accounting standards and Listing Rules, and adequate disclosure - The Audit Committee is chaired by Mr. Ho Chun Chung, an independent non-executive Director, with other members including independent non-executive Directors Mr. Chong Kam Fung and Mr. Sze Wai Lim[59](index=59&type=chunk) - The primary responsibilities of the Audit Committee include reviewing financial information and overseeing the financial reporting system, internal control system, risk management system, and the relationship with external auditors[61](index=61&type=chunk) - The Group's consolidated financial statements for the year ended March 31, 2024, have been reviewed by the Audit Committee, which believes that the consolidated financial statements comply with applicable accounting standards and the Listing Rules, and that adequate disclosures have been made[61](index=61&type=chunk) [Scope of Work of National Alliance CPA Limited](index=15&type=section&id=%E5%9C%8B%E8%A1%9B%E6%9C%83%E8%A8%88%E5%B8%AB%E4%BA%8B%E5%8B%99%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E7%9A%84%E5%B7%A5%E4%BD%9C%E7%AF%84%E5%9C%8D) The Group's auditor, National Alliance CPA Limited, has reconciled the figures in the preliminary announcement with the audited consolidated financial statements, but their work does not constitute an assurance engagement, thus no opinion or assurance conclusion is expressed - The Group's auditor, National Alliance CPA Limited, has reconciled the figures in the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and related notes for the year ended March 31, 2024, as set out in the preliminary announcement, with the figures in the Group's audited consolidated financial statements for that year[62](index=62&type=chunk) - The work performed by National Alliance CPA Limited in this regard does not constitute an assurance engagement, and therefore, National Alliance CPA Limited has not expressed an opinion or assurance conclusion on the preliminary announcement[62](index=62&type=chunk) [Review of the Annual Consolidated Financial Statements](index=15&type=section&id=%E5%AF%A9%E9%96%B1%E6%9C%AC%E5%B9%B4%E5%BA%A6%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Company's Audit Committee, in conjunction with the auditor, has reviewed the annual audited consolidated financial statements, confirming their preparation in accordance with applicable accounting standards and fair presentation of the Group's financial position and full-year results as of March 31, 2024 - The Company's Audit Committee (comprising three independent non-executive Directors of the Company) has reviewed the annual audited consolidated financial statements for the current year in conjunction with the Group's auditor, National Alliance CPA Limited[63](index=63&type=chunk) - Based on this review and discussions with the Company's management, the Audit Committee is satisfied that the audited consolidated financial statements have been prepared in accordance with applicable accounting standards and fairly present the Group's financial position as of March 31, 2024, and its full-year results for the year ended March 31, 2024[63](index=63&type=chunk)

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 110,864,000, a decrease of 12.6% compared to HKD 126,715,000 in the same period of 2022[7] - The company reported a loss before tax of HKD 1,573,000, compared to a profit of HKD 1,059,000 in the previous year[7] - The group reported a revenue of approximately HKD 75 million for the six months ended September 30, 2023, compared to HKD 2,409 million for the same period in 2022, indicating a significant decrease in revenue[24] - The group recorded a pre-tax loss of HKD 23,904 thousand for the six months ended September 30, 2023, compared to HKD 26,502 thousand in the same period of 2022, reflecting a decrease in employee costs[27] - The group recorded a net loss of approximately HKD 1.6 million for the six months ended September 30, 2023, compared to a net profit of approximately HKD 1.0 million for the same period in 2022[59] Assets and Liabilities - Total assets as of September 30, 2023, were HKD 134,747,000, slightly down from HKD 135,187,000 as of March 31, 2023[9] - Current liabilities increased to HKD 103,243,000 from HKD 98,888,000, indicating a rise in short-term financial obligations[9] - Cash and cash equivalents decreased to HKD 7,844,000 from HKD 12,636,000, reflecting a net decrease of HKD 4,792,000 during the period[11] - The company’s net asset value as of September 30, 2023, was HKD 75,220,000, down from HKD 76,793,000 at the end of the previous reporting period[9] - As of September 30, 2023, the group's total debt was approximately HKD 109.6 million, an increase from approximately HKD 102.4 million as of March 31, 2023[62] Expenses - Administrative expenses rose to HKD 15,557,000, compared to HKD 13,558,000 in the same period last year, indicating increased operational costs[7] - Financing costs increased to HKD 949 thousand for the six months ended September 30, 2023, up from HKD 723 thousand in the same period of 2022, primarily due to higher lease liabilities and bank borrowings[25] - The total employee costs for the six months ended September 30, 2023, were HKD 23,904 thousand, a decrease from HKD 26,502 thousand in the same period of 2022[27] - The company’s management noted that the increase in employee salaries and warehouse rental expenses were significant factors contributing to the net loss[51] Shareholder Information - As of September 30, 2023, Mr. Ling Zhi-hui holds 130,000,000 shares, representing approximately 16.25% of the company's equity[77] - Mr. Li Jianming owns 402,910,000 shares, accounting for approximately 50.36% of the company's equity[80] - Mr. Chen Shaohong holds 57,090,000 shares, which is approximately 7.14% of the company's equity[80] - Ms. Yang Wanwen, as the spouse of Mr. Li Jianming, is deemed to hold the same number of shares, totaling 402,910,000 shares[81] Corporate Governance - The company has adopted a standard code of conduct for directors' securities transactions, with full compliance reported for the six months ending September 30, 2023[89] - The company is committed to maintaining high standards of corporate governance, aligning with the corporate governance code as of September 30, 2023[95] - The company has established a robust internal control and risk management system, which is regularly reviewed by management[95] Future Outlook - The company has not provided specific guidance for future performance but continues to focus on its core foundation engineering services in Hong Kong[13] - The board of directors did not recommend the payment of an interim dividend for the six months ended September 30, 2023, consistent with the previous year[30] Other Information - The company did not acquire any property, plant, or equipment during the six months ended September 30, 2023, compared to approximately HKD 25,000 in the same period in 2022[34] - The company did not receive any subsidies or grants from the Hong Kong government during the reporting period, contributing to the net loss[51] - The group did not recognize any government grants during the six months ended September 30, 2023, compared to HKD 2,160 thousand in the same period of 2022[24] - The company has not identified any significant matters from September 30, 2023, to the date of the interim report[100]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 LING YUI HOLDINGS LIMITED 凌 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：784） 截至二零二三年九月三十日止六個月 之未經審核中期業績公告 凌 控股有限公司（「本公司」）董事（「董事」）會（「董事會」）呈列本公司及其附屬公司（統稱為（「本集 團」）截至二零二三年九月三十日止六個月的未經審核中期業績，連同二零二二年同期的比較數字如 下： 未經審核簡明綜合損益及其他全面收益表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） ...

Financial Performance - The total revenue for the fiscal year ending March 31, 2023, was approximately HKD 239.0 million, a decrease of about 30.6% from HKD 344.3 million for the previous fiscal year[10]. - The decrease in revenue was primarily due to the selection of clients with a good track record of receivables to improve credit control in response to the challenging business environment caused by the COVID-19 pandemic[14]. - The group recorded a net loss of approximately HKD 30.0 million for the year ended March 31, 2023, compared to a net profit of approximately HKD 2.2 million for the same period in 2022[27]. - Direct costs for the year ended March 31, 2023, were approximately HKD 245.5 million, a decrease of about 23.2% from approximately HKD 319.5 million for the year ended March 31, 2022[22]. - Other income increased from approximately HKD 2.6 million for the year ended March 31, 2022, to approximately HKD 2.9 million for the year ended March 31, 2023, mainly due to an increase in government subsidies under the employment support scheme[24]. - Administrative expenses rose by approximately 27.7% to about HKD 27.4 million for the year ended March 31, 2023, compared to approximately HKD 21.4 million for the year ended March 31, 2022, primarily due to increased provisions for employee bonuses amid a tight labor market in Hong Kong[25]. - The company's bank balance as of March 31, 2023, was approximately HKD 12.6 million, compared to approximately HKD 10.1 million as of March 31, 2022[30]. - The total debt as of March 31, 2023, was approximately HKD 102.4 million, down from approximately HKD 114.2 million as of March 31, 2022[30]. - The capital debt ratio as of March 31, 2023, was approximately 133.3%, compared to approximately 106.9% as of March 31, 2022[31]. - The total employee cost for the year ended March 31, 2023, was approximately HKD 54.1 million, down from approximately HKD 66.2 million for the year ended March 31, 2022, reflecting a reduction in the number of employees from 172 to 98[40]. - The board of directors did not recommend the payment of a final dividend for the year ended March 31, 2023[41]. Strategic Initiatives - The company anticipates continued intense price competition in the private foundation sector as competitors seek to attract new business for recovery[11]. - A project team has been established to target well-known clients with a substantial number of construction projects, indicating optimism for satisfactory performance in this business sector[11]. - The company plans to maintain prudent financial management in project selection and cost control while enhancing its financial resources for bidding on suitable private projects[15]. - The company aims to invest in human resources and information systems to improve operational capabilities and efficiency[15]. - The company anticipates a revenue growth of 10% for the upcoming fiscal year, driven by new project acquisitions and market expansion strategies[49]. - Investment in new technology and product development has increased by 25%, focusing on innovative construction solutions[50]. - The company is exploring potential mergers and acquisitions to enhance its market position, targeting a 5% increase in market share[51]. - A new strategic partnership has been established, expected to generate an additional $2 million in annual revenue[52]. - The company has successfully completed several high-profile projects, contributing to a 30% increase in brand recognition[46]. - Employee training programs have been enhanced, resulting in a 40% improvement in workforce productivity[47]. - The company plans to expand its operations into two new regions, aiming for a 15% increase in overall market reach[48]. Governance and Compliance - The board believes that compliance with relevant laws and regulations has been maintained without any significant violations during the fiscal year[16]. - The company has adopted the corporate governance code principles and has fully complied with the corporate governance code for the fiscal year ending March 31, 2023[58]. - The company has implemented an anti-corruption policy since April 2017 to prevent, detect, and report fraudulent activities[58]. - The board of directors is composed of a majority of independent non-executive directors, exceeding the minimum requirement of one-third as per listing rules[79]. - The company has established a whistleblowing policy to report confirmed cases to designated senior staff and the audit committee since 2017[60]. - The company has a shareholder communication policy to maintain effective and ongoing dialogue with shareholders[60]. - The financial operations, compliance, and strategic management are overseen by the Chief Financial Officer, who has approximately 10 years of experience in accounting, auditing, and financial management[55]. - The board is responsible for overseeing the company's overall strategy and business performance, including financial performance and risk management[76]. - The company has purchased liability insurance for its directors and senior management to cover potential legal liabilities arising from their duties[77]. - The nomination committee is chaired by the chairman of the board and consists mainly of independent non-executive directors[67]. - The company has established a commitment to employee development, workplace safety, and sustainability, which is essential for attracting and retaining talent[72]. - The independent non-executive directors play a crucial role in providing impartial opinions on the company's strategy and performance[81]. - The company has renewed service contracts for its executive directors and independent non-executive directors for a period of three years[82]. - The company held two meetings of the Remuneration Committee during the fiscal year ending March 31, 2023, to review the remuneration of directors and senior management, concluding that the compensation was fair and reasonable[91]. - The Nomination Committee conducted two meetings to review and recommend the re-election of directors, including the appointment of Mr. Ling and Mr. Li as executive directors[92]. - The Audit Committee held three meetings to review the company's annual performance for 2022, interim results, and the audit plan for the fiscal year ending March 31, 2023, ensuring compliance with applicable accounting standards and listing rules[93]. Environmental, Social, and Governance (ESG) Performance - The environmental, social, and governance (ESG) strategy and performance details are reported in the annual report[18]. - The company emphasizes transparency in its Environmental, Social, and Governance (ESG) report, detailing measures and performance in sustainability to enhance stakeholder confidence[132]. - The ESG report covers the period from April 1, 2022, to March 31, 2023, reflecting the company's performance in environmental management and social responsibility[134]. - The company has identified several key ESG issues and performance indicators after establishing a comprehensive data collection system[135]. - The board is responsible for ensuring the effectiveness of the company's ESG policies and overseeing risk management related to ESG matters[136]. - The company engages with stakeholders through various channels to gather feedback on significant environmental and social issues[138]. - A total of 17 major ESG issues were identified and assessed for their importance to the company's business and stakeholders[140]. - The company identified key issues such as occupational health and safety, labor practices, and waste management as critical areas for improvement in its environmental, social, and governance (ESG) performance[143]. - The company aims to reduce greenhouse gas emissions through various environmental policies and measures, focusing on operational emissions and engaging suppliers to lower supply chain emissions[144]. - In 2023, the company reported nitrogen oxide emissions of 1.935 tons, sulfur oxide emissions of 0.001 tons, and particulate matter emissions of 0.134 tons, maintaining stable levels compared to 2022[150]. - The company has implemented measures to enhance vehicle efficiency, including avoiding travel during peak hours and encouraging public transport use[150]. - The company has established a comprehensive data collection system to monitor greenhouse gas emissions and maintain optimal vehicle usage efficiency[153]. - Total greenhouse gas emissions increased from 265.03 tons in 2022 to 356.42 tons in 2023, representing a 34.5% increase[157]. - The density of greenhouse gas emissions per project rose from 16.56 tons in 2022 to 23.76 tons in 2023, a 43.5% increase[157]. - Total non-hazardous waste generated increased significantly from 18,924 tons in 2022 to 46,209 tons in 2023, marking a 143.5% increase[159]. - The density of non-hazardous waste per project rose from 1,183 tons in 2022 to 3,081 tons in 2023, an increase of 160.5%[159]. - Total water consumption decreased from 15,141 cubic meters in 2022 to 2,544 cubic meters in 2023, a reduction of 83.2%[165]. - Total energy consumption increased from 891,639 kWh in 2022 to 1,110,560 kWh in 2023, a rise of 24.6%[166]. - The density of total energy consumption per project increased from 55,727 kWh in 2022 to 74,037 kWh in 2023, a 32.8% increase[166]. Employee and Workplace Management - The company has implemented a risk assessment plan to manage health and safety risks in the workplace[180]. - The company reported zero fatal accidents during the reporting period, consistent with the previous year[182]. - The company continues to prioritize health and safety measures, including regular cleaning and adherence to safety guidelines[181]. - The company adheres to local employment laws and regulations, ensuring compliance with labor standards[175]. - The company has established a comprehensive training program to enhance employee skills and management capabilities[185]. - The percentage of employees receiving training was 85% for senior management, 52% overall, and 15% for female employees in 2023[185]. - The average training hours for male employees in 2023 was 1.6 hours, while female employees averaged 1.8 hours[188]. - The average training hours for employees decreased from 7 hours in 2022 to 6 hours in 2023[188]. - Employee injury rate was 0.85 per 100 employees in 2023, down from 1.16 in 2022[184]. - The number of workplace injuries reported was 1 in 2023, compared to 2 in 2022[184]. - Total employee turnover rate increased to 80.3% in 2023 from 61.6% in 2022[177]. - The company maintains a low employee turnover rate, with new hires and turnover percentages remaining relatively low[176]. - The company has implemented a quality management system certified by ISO9001 and ISO14001, ensuring high standards in project construction[197]. - The company conducts annual reviews of each subcontractor and supplier, ensuring compliance with regulatory requirements[193]. - The company has a systematic recruitment process to prevent illegal employment of child labor[190]. - The company emphasizes the importance of protecting intellectual property and consumer privacy, complying with relevant laws and regulations[196]. - The company has a whistleblowing procedure in place to report any misconduct, including corruption and fraud[198]. - The company has established a commitment to employee development, workplace safety, and sustainability, which is essential for attracting and retaining talent[72]. - The number of key suppliers in Hong Kong increased from 32 in 2022 to 50 in 2023, representing a 56.25% growth[195].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 LING YUI HOLDINGS LIMITED 凌 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：784） 截至二零二三年三月三十一日止年度 之全年業績公告 財務摘要 • 收益由截至二零二二年三月三十一日止年度約344.3百萬港元減少約30.6％至截至二零二三年 三月三十一日止年度約239.0百萬港元。 • 截至二零二三年三月三十一日止年度的毛損約6.6百萬港元，而截至二零二二年三月三十一日 止年度的毛利約為24.8百萬港元。 • 毛利率由截至二零二二年三月三十一日止年度約7.2%下降至截至二零二三年三月三十一日止 ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 126,715, a decrease of 22.6% compared to HKD 163,698 for the same period in 2021[7] - Gross profit increased to HKD 13,033, up 3.3% from HKD 12,619 in the previous year[7] - The company reported a profit before tax of HKD 1,059, down 48.0% from HKD 2,037 in the prior year[7] - Total comprehensive income for the period was HKD 1,019, compared to HKD 1,497 in the same period last year, reflecting a decline of 31.9%[7] - Basic and diluted earnings per share were HKD 0.13, down from HKD 0.19 in the previous year, representing a decrease of 31.6%[7] - The company reported a current tax expense of HKD 40,000 for the six months ended September 30, 2022, significantly lower than HKD 540,000 for the same period in 2021, reflecting a decrease of approximately 92.6%[36] - The group recorded a net profit of approximately HKD 1.0 million for the six months ended September 30, 2022, down from approximately HKD 1.5 million in the same period of 2021, attributed to the economic downturn caused by sporadic COVID-19 outbreaks[62] Assets and Liabilities - Non-current assets amounted to HKD 48,656 as of September 30, 2022, compared to HKD 51,143 as of March 31, 2022[9] - Current assets totaled HKD 159,026, a decrease from HKD 169,920 as of March 31, 2022[9] - Current liabilities were HKD 88,549, down from HKD 110,724 in the previous period, indicating improved liquidity[9] - Total equity increased to HKD 107,851 from HKD 106,832 as of March 31, 2022, showing a slight growth in shareholder value[9] - The company's non-current assets located in Hong Kong were approximately HKD 48,359,000 as of September 30, 2022, a decrease from HKD 50,846,000 as of March 31, 2022[25] - Trade receivables as of September 30, 2022, totaled HKD 34,892,000, a decrease from HKD 53,873,000 as of March 31, 2022, indicating a reduction of about 35.2%[45] - The company's bank borrowings as of September 30, 2022, were HKD 30,470,000, an increase from HKD 24,385,000 as of March 31, 2022, representing an increase of approximately 25.5%[52] - The total amount of other payables and accrued expenses as of September 30, 2022, was HKD 26,677,000, slightly up from HKD 26,350,000 as of March 31, 2022, indicating a marginal increase of about 1.2%[50] - The group’s total debt was approximately HKD 99.8 million as of September 30, 2022, down from about HKD 114.2 million as of March 31, 2022[71] - The capital debt ratio was approximately 92.6% as of September 30, 2022, compared to about 106.9% as of March 31, 2022[72] Cash Flow - For the six months ended September 30, 2022, the net cash used in operating activities was HKD (5,132) thousand, a decrease from HKD 13,260 thousand in the same period of 2021[14] - The net cash used in investing activities was HKD (2,543) thousand, compared to HKD (6,221) thousand in the previous year, indicating a reduction in investment outflows[14] - Financing activities generated a net cash inflow of HKD 6,842 thousand, a significant improvement from the net cash outflow of HKD (12,518) thousand in the prior year[14] - The total cash and cash equivalents decreased by HKD 833 thousand, compared to a decrease of HKD 5,479 thousand in the same period of 2021[14] Revenue Sources - Revenue from major customers for the six months ended September 30, 2022, included HKD 70,149 thousand from Customer A and HKD 33,272 thousand from Customer B, down from HKD 88,643 thousand and HKD 39,465 thousand respectively in 2021[27] - Direct costs for the six months ended September 30, 2022, were approximately HKD 113.7 million, a decrease of about 24.8% from approximately HKD 151.1 million in the same period of 2021, consistent with the revenue decline[66] - Gross profit for the six months ended September 30, 2022, was approximately HKD 13.0 million, with a gross profit margin of about 10.3%, compared to a gross profit of approximately HKD 12.6 million and a margin of about 7.7% in the same period of 2021[67] Employee Costs - Total employee costs for the six months ended September 30, 2022, amounted to HKD 26,502,000, down from HKD 30,448,000 in the previous year, indicating a reduction of about 13.8%[40] - As of September 30, 2022, the total employee cost for the six months was approximately HKD 26.5 million, a decrease from HKD 30.4 million for the same period in 2021[82] - The company had 113 full-time employees in Hong Kong as of September 30, 2022, down from 172 employees as of March 31, 2022[82] - Administrative expenses increased by approximately 20.4% to about HKD 13.6 million for the six months ended September 30, 2022, primarily due to employee costs related to bonuses and salary increases[68] Corporate Governance - The company is committed to maintaining high standards of corporate governance, which it believes is essential for enhancing shareholder value and protecting the interests of stakeholders[106] - The company has established an audit committee to review financial information, internal controls, and risk management systems, ensuring transparency and accountability[108] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2022, and believes they comply with applicable accounting standards and listing rules[108] Dividends and Shareholder Information - The company did not recommend an interim dividend for the six months ended September 30, 2022, consistent with no dividend declared for the same period in 2021[37] - The board of directors did not recommend the payment of an interim dividend for the six months ended September 30, 2022, consistent with the previous year[83] - As of September 30, 2022, major shareholders included Mr. Li Jianming with a 57.86% stake and Mr. Chen Shaohong with a 7.14% stake[91] Future Outlook - The company plans to focus on new product development and market expansion strategies to enhance future performance[7] - The company is currently evaluating the potential impact of new and revised Hong Kong Financial Reporting Standards on its financial performance and position[22] - There were no significant capital commitments related to the acquisition of property and equipment as of September 30, 2022[80] - The company did not report any significant acquisitions or expansions during the reporting period[84] - There have been no significant events affecting the company since September 30, 2022, up to the date of this report[109]

Financial Performance - The group recorded total revenue of approximately HKD 344.3 million for the year ended March 31, 2022, an increase of about 42.9% compared to HKD 241.0 million for the previous year[21]. - The increase in revenue was primarily due to the recovery of the construction industry and the resumption of construction projects, such as those in Kai Tak[21]. - The company's revenue increased by approximately 42.9% from about HKD 241.0 million for the year ended March 31, 2021, to about HKD 344.3 million for the year ended March 31, 2022[32]. - Direct costs rose by approximately 44.0%, from about HKD 222.0 million to about HKD 319.5 million during the same period[33]. - Gross profit increased to approximately HKD 24.8 million, with a gross margin of about 7.2%, down from 7.9% the previous year, a decrease of about 0.7 percentage points[34]. - Other income decreased significantly from about HKD 9.1 million to approximately HKD 2.6 million, primarily due to a one-time government subsidy of about HKD 4.8 million received in the previous year[35]. - Administrative expenses decreased by approximately 13.0%, from about HKD 24.6 million to about HKD 21.4 million, mainly due to the absence of bonuses paid to employees during the COVID-19 pandemic[36]. - The company recorded a net profit of approximately HKD 2.2 million for the year ended March 31, 2022, compared to a net loss of about HKD 0.6 million in the previous year[38]. - As of March 31, 2022, the company's total cash and bank balance was approximately HKD 10.1 million, slightly down from HKD 10.7 million the previous year[41]. - The company's total debt was approximately HKD 114.2 million, up from HKD 103.2 million the previous year, resulting in a debt-to-equity ratio of about 106.9%[43]. Human Resources and Operational Efficiency - The total employee cost for the year was approximately HKD 66.2 million, an increase from about HKD 63.2 million in the previous year, with the workforce growing from 119 to 172 full-time employees[52]. - The company will continue to invest in human resources and information systems to improve operational capabilities and efficiency[25]. - The overall percentage of employees receiving training in 2022 was 100%, an increase from 55% in 2021[185]. - The percentage of male employees receiving training was 91%, while female employees accounted for 9%[185]. - Average training hours for male employees were 3.0 hours, while female employees had an average of 2.5 hours[190]. - The employee retention strategy has resulted in a relatively low percentage of new hires and turnover rates[175]. - Total employee turnover rate for 2022 was 61.6%, significantly up from 32.2% in 2021[176]. - The number of work-related injuries reported was 2, with an injury rate of 1.16 per 100 employees[184]. - The company maintained a zero fatal accident rate during the reporting period, consistent with the previous year[181]. - The company has implemented health and safety measures in response to COVID-19, including daily temperature checks and health declarations[180]. - The company has developed a risk assessment plan to manage health and safety risks in daily operations[179]. - The training programs include quality management and environmental management training to meet ISO standards[185]. - The company has established a comprehensive occupational health and safety management system based on OHSAS18001[179]. Corporate Governance - The company is committed to maintaining high standards of corporate governance through independent directors and various committees[60]. - The company has fully complied with the standards set forth in the securities trading code for directors during the reporting period[74]. - The board consists of a majority of independent non-executive directors, exceeding the requirement of at least one-third as stipulated by the listing rules[80]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with clear written terms of reference[86]. - The company complies with the corporate governance code, ensuring the separation of roles between the Chairman and the CEO to avoid power concentration[84]. - The company provided ongoing professional development training for all directors to enhance their knowledge and skills[85]. - The Audit Committee confirmed that the consolidated financial statements for the year ending March 31, 2022, comply with applicable accounting standards and listing rules[94]. - The company has a structured approach to corporate governance, which is essential for maintaining stakeholder trust and long-term value creation[73]. - The board's composition includes members with diverse experiences, ensuring a balanced approach to the company's operational strategies[80]. - The company has purchased liability insurance for its directors and senior management to cover potential legal liabilities arising from their duties[76]. - The board is responsible for monitoring the company's financial performance and internal controls, ensuring effective risk management systems are in place[75]. - The company ensures that all significant issues at the shareholders' meeting are presented as individual resolutions for consideration and voting[117]. - Shareholders can request to convene a special general meeting if they hold at least 10% of the paid-up capital[117]. - The company will disclose the progress of the board diversity policy and measurable targets in the annual corporate governance report[107]. - The nomination committee will conduct a review of the nomination policy to ensure its effectiveness and propose necessary amendments to the board[106]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the company's measures and performance in sustainable development[132]. - The company has identified key environmental, social, and governance issues and key performance indicators relevant to its operations[135]. - A dedicated team has been established to manage ESG matters and monitor progress towards climate change goals[136]. - The company reported nitrogen oxide emissions of 1.927 tons in 2022, an increase from 1.532 tons in 2021, attributed to a rise in vehicle usage due to an increase in employee numbers[149]. - The company aims to maintain low emission levels and has implemented measures such as avoiding vehicle use during peak traffic hours and encouraging public transport[149]. - The company is committed to reducing greenhouse gas emissions through various environmental policies and measures, including promoting energy-saving practices in the office[142]. - The company has identified extreme weather events as a significant risk that could impact operations, prompting the development of emergency response plans[143]. - The company engages with stakeholders regularly to gather feedback and improve its environmental, social, and governance performance[141]. - The company has adopted effective noise reduction equipment at construction sites to minimize environmental noise disturbances[145]. - The company has obtained necessary permits for wastewater management in compliance with the Water Pollution Control Ordinance[145]. - The company focuses on enhancing the resilience of its business and advocating for collective action to address climate change[142]. - In 2022, the total greenhouse gas emissions amounted to 265.03 tons, an increase from 236.00 tons in 2021, representing an increase of approximately 12.3%[156]. - The total amount of inert construction and demolition waste generated was 18,895 tons in 2022, up from 14,747 tons in 2021, reflecting an increase of about 28.9%[158]. - The company has established an environmental management system and obtained ISO14001 and ISO9001 certifications to support sustainable development[168]. - The company aims to use the current year's density of greenhouse gas emissions as a benchmark to maintain emission levels over the next five years[156]. - The company emphasizes the importance of environmental issues and the use of eco-friendly materials in its supply chain management[195]. Risk Management - Significant risks include reliance on non-recurring contracts and a limited number of clients, which could adversely affect operations and financial performance[26]. - The company maintains an effective internal control and risk management system to safeguard shareholder investments and group assets[119]. - Risk management procedures include identifying major risks, assessing their potential impact, and planning effective mitigation activities[121]. - The board reviews the effectiveness of the risk management and internal control systems at least annually[122]. - An independent consultant has reviewed the internal control system, including financial, operational, and compliance measures, and found it effective and sufficient[122]. - The company has established procedures to address any non-compliance issues, including immediate notification of relevant personnel and investigation of incidents[146]. - The company has not been aware of any significant violations of environmental laws and regulations during the reporting period[147].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 163,698,000, representing a 49.7% increase from HKD 109,306,000 in the same period of 2020[11] - Gross profit for the same period was HKD 12,619,000, up from HKD 5,924,000, indicating a significant improvement in profitability[11] - The company reported a profit before tax of HKD 2,037,000, compared to HKD 344,000 in the previous year, reflecting a substantial increase[11] - Net profit attributable to owners for the period was HKD 1,497,000, compared to HKD 340,000 in the prior year, marking a notable growth[11] - Basic and diluted earnings per share increased to HKD 0.19 from HKD 0.04, showcasing improved earnings performance[11] - Other income for the six months ended September 30, 2021, was HKD 2,537,000, a decrease from HKD 7,211,000 in 2020, representing a decline of approximately 64.8%[31] - Revenue from major customers contributing over 10% of total revenue was HKD 1 from Customer A in 2021, down from HKD 35,710,000 in 2020, indicating a significant loss of business from this customer[30] - Total employee costs for the six months ended September 30, 2021, amounted to HKD 30,448,000, up from HKD 28,648,000 in the previous year, indicating a year-over-year increase of approximately 6.3%[38] - The company reported a total tax expense of HKD 540,000 for the six months ended September 30, 2021, significantly higher than HKD 4,000 in the same period of 2020[40] Assets and Liabilities - Total assets as of September 30, 2021, were HKD 170,015,000, up from HKD 149,483,000 as of March 31, 2021[13] - The company's net asset value increased to HKD 106,089,000 from HKD 104,592,000, indicating a positive trend in equity[13] - Trade receivables and contract assets increased to HKD 35,721,000, reflecting growth in operational activities[13] - As of September 30, 2021, the company had bank borrowings of HKD 29,583,000, a decrease from HKD 40,400,000 as of March 31, 2021, indicating a reduction of approximately 26.8%[56] - The total amount of other payables and accrued expenses as of September 30, 2021, was HKD 23,807,000, compared to HKD 19,887,000 as of March 31, 2021, reflecting an increase of about 19.4%[56] - Total debt increased to approximately HKD 121.9 million as of September 30, 2021, from HKD 103.2 million as of March 31, 2021[76] Cash Flow - Net cash generated from operating activities for the six months ended September 30, 2021, was HKD 13,260,000, a significant increase from HKD 5,881,000 in 2020, representing a growth of approximately 125.4%[18] - The net cash used in investing activities was HKD 6,221,000 for the six months ended September 30, 2021, compared to HKD 6,100,000 in 2020, indicating a slight increase of 2%[18] - The net cash used in financing activities was HKD 12,518,000 for the six months ended September 30, 2021, compared to HKD 1,268,000 in 2020, reflecting a substantial increase of approximately 887%[18] - The total cash and cash equivalents decreased by HKD 5,479,000 for the six months ended September 30, 2021, compared to a decrease of HKD 1,487,000 in 2020, indicating a worsening liquidity position[18] - The cash and cash equivalents at the end of the period were HKD 5,179,000, up from HKD 3,750,000 in 2020, showing an increase of approximately 38.1%[18] Operational Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[11] - The company plans to maintain prudent financial management in project selection and cost control amid ongoing challenges in the industry due to COVID-19[67] - The company aims to enhance its financial resources and continue bidding for suitable projects in the private sector[67] - The group continues to manage its cash reserves prudently to ensure the ability to capitalize on future growth opportunities[83] Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance shareholder value and protect stakeholder interests[111] - The company has adopted a standard code of conduct for directors' securities transactions, which all directors complied with during the reporting period[106] - The company has established a non-competition agreement with its controlling shareholders to prevent any potential competition[103] - The company has not engaged in any competitive business activities that may conflict with its existing operations during the reporting period[102] Employment and Human Resources - The group employed 154 full-time employees in Hong Kong as of September 30, 2021, an increase from 119 employees as of March 31, 2021[88] - The company adopted a share option scheme to provide additional incentives to employees, directors, and other stakeholders, which will remain effective for 10 years[107] - No share options were granted, exercised, expired, or lapsed during the six months ending September 30, 2021, and there are no unexercised options under the scheme[110] Events and Announcements - Independent non-executive director Mr. Zhuang resigned from the board of Base Jinbiao Group Holdings Limited effective August 31, 2021[115] - The interim results announcement and interim report will be published on the Hong Kong Stock Exchange website and the company's website[118] - The interim report for the six months ending September 30, 2021, will be sent to shareholders[118] - No significant events affecting the group have occurred since September 30, 2021, up to the date of this report[114]

Financial Performance - The group recorded total revenue of approximately HKD 241.0 million for the year ended March 31, 2021, a decrease of about 46.8% compared to HKD 452.6 million for the year ended March 31, 2020[24]. - The group reported a net loss of approximately HKD 0.6 million for the year ended March 31, 2021, compared to a net profit of approximately HKD 0.3 million for the previous year[24]. - The decline in revenue was primarily due to the economic recession caused by the COVID-19 pandemic, which led to project delays and suspensions in new construction projects[24]. - The company's revenue decreased by approximately 46.8% from about HKD 452.6 million for the year ended March 31, 2020, to about HKD 241.0 million for the year ended March 31, 2021, primarily due to the economic downturn caused by COVID-19[35]. - Direct costs for the year ended March 31, 2021, were approximately HKD 222.0 million, a reduction of about 47.7% compared to approximately HKD 424.8 million for the year ended March 31, 2020, aligning with the decrease in revenue[36]. - Gross profit for the year ended March 31, 2021, was approximately HKD 19.0 million, compared to about HKD 27.8 million for the year ended March 31, 2020, with a gross margin of approximately 7.9%, an increase of about 1.7 percentage points from 6.2%[37]. - Other income increased from approximately HKD 0.8 million for the year ended March 31, 2020, to about HKD 9.1 million for the year ended March 31, 2021, mainly due to government subsidies related to COVID-19 totaling approximately HKD 4.8 million[38]. - Administrative expenses decreased by approximately 2.7% to about HKD 24.6 million for the year ended March 31, 2021, from approximately HKD 25.3 million for the year ended March 31, 2020[39]. Business Strategy and Future Outlook - The board anticipates that the public foundation sector will present potential business opportunities in the next fiscal year despite current competitive challenges[25]. - The company has established a project team targeting well-known clients with a substantial number of construction projects, aiming for satisfactory performance in the foundation business[25]. - The board believes that the company's listing on the Hong Kong Stock Exchange enhances its influence in the relevant industry sector[25]. - The company plans to adhere to prudent financial management in project selection and cost control moving forward[28]. - The group will continue to obtain additional qualifications and enhance its financial resources to position itself as a suitable bidder for private sector projects[28]. - The company intends to invest in human resources and information systems to improve operational capabilities and efficiency[28]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange's listing rules, ensuring compliance and transparency in operations[78]. - The board of directors includes a majority of independent non-executive directors, exceeding the minimum requirement, which supports effective governance[85]. - The company has implemented a risk management system to monitor financial performance and internal controls, ensuring accountability and long-term value creation for shareholders[80]. - The company has a comprehensive insurance policy for its directors and senior management to cover potential legal liabilities arising from their duties[81]. - The daily operations and management of the business have been delegated to executive directors and senior management, who report regularly to the board[82]. - The company has a commitment to maintaining high standards of corporate governance, which is essential for building trust with stakeholders[78]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with clear written terms of reference[91]. - The Remuneration Committee held one meeting during the year to review the remuneration of directors and senior management, finding it fair and reasonable[96]. - The Audit Committee held three meetings to review the company's annual results, interim results, and audit plans, ensuring compliance with applicable accounting standards and disclosure requirements[99]. - The Nomination Committee has reviewed and recommended the re-election of directors, considering factors such as diversity in gender, age, and industry experience[97][98]. - The company has provided ongoing professional development for all directors to ensure they remain informed and capable of contributing effectively[90]. - The chairman and CEO roles are separated to avoid power concentration, with Mr. Li serving as chairman and Mr. Chen as CEO during the year[89]. - The company has complied with the requirement that the Audit Committee includes at least one member with appropriate professional qualifications or accounting expertise[99]. - The company continues to enhance its corporate governance practices, including training and updates on regulatory developments for directors[93]. - The company held board meetings with full attendance from executive directors, achieving a participation rate of 100% for the fiscal year ending March 31, 2021[103]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified key environmental, social, and governance (ESG) issues relevant to its operations and has set key performance indicators for these areas[139]. - The ESG report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange, reflecting the company's performance in environmental management and social responsibility[137]. - The reporting period for the ESG report covers from April 1, 2020, to March 31, 2021[138]. - The company has established a dedicated team to manage environmental, social, and governance (ESG) matters across its business sectors, ensuring effective implementation of sustainability strategies[140]. - The company reported nitrogen oxide emissions of 1.53 tons in 2021, a slight decrease from 1.55 tons in 2020, while sulfur oxide emissions dropped from 0.0016 tons to 0.0009 tons[153]. - The company aims to maintain low emission levels and will continue to monitor its emissions closely[153]. - The company has implemented various environmental policies and measures to mitigate climate change risks, focusing on reducing operational emissions and enhancing business resilience[147]. - The company has not been aware of any significant violations of environmental laws and regulations during the reporting period[152]. - The company engages with stakeholders regularly to gather feedback and improve its ESG performance, ensuring transparency and accountability[143]. - The company has adopted proactive guidelines and action plans to address ESG issues, regularly reviewing and adjusting its sustainability policies[140]. - The company emphasizes the importance of stakeholder participation in assessing significant environmental and social issues[143]. - The company has established procedures to address any non-compliance situations, including immediate notification and investigation of incidents[151]. - The company is committed to reducing its operational impact on the environment through effective management of emissions and waste[148]. - Greenhouse gas emissions in 2021 totaled 236.00 tons, a slight decrease from 240.24 tons in 2020, with a notable reduction in direct emissions from 191.74 tons to 156.08 tons[161]. - The total water consumption decreased significantly from 31,649 cubic meters in 2020 to 13,045 cubic meters in 2021, resulting in a reduction in water density from 2,877 to 625 cubic meters per project[170]. - Total energy consumption decreased from 824,500 kWh in 2020 to 765,609 kWh in 2021, attributed to a reduction in overall vehicle usage[172]. - The company implemented a comprehensive data collection system to monitor and control greenhouse gas emissions, ensuring optimal vehicle efficiency[157]. - The density of total greenhouse gas emissions per project decreased from 21.84 tons in 2020 to 11.80 tons in 2021, due to the completion of several large projects[161]. - The company aims to reduce construction and demolition waste through measures of reduction, reuse, and recycling, with inert construction waste significantly reduced from 24,544 tons in 2020 to 14,747 tons in 2021[163]. - The company has established an environmental management system and obtained ISO14001 and ISO9001 certifications to support sustainable development[173]. - The total consumption of non-renewable fuels decreased from 768,064 kWh in 2020 to 624,867 kWh in 2021[171]. - The company encourages the use of public transportation and carpooling among employees to enhance vehicle efficiency and reduce emissions[154]. - The company has committed to proper management of non-hazardous solid waste, with designated areas for temporary storage of construction waste[167]. Employee and Labor Relations - The employee gender ratio in 2021 was approximately 23.3:1 (male to female), compared to 18.5:1 in 2020[180]. - The total number of employees as of March 31, 2021, was 146, with 140 males and 6 females[180]. - The percentage of new hires in 2021 was 25% for males and 5.4% for females, compared to 54% for males in 2020[180]. - Employee turnover in 2021 was 32% for males and 100% for females aged 30 to 50, with a total turnover of 47 employees[182]. - The company reported zero fatal accidents during the reporting period, maintaining a low injury rate[188]. - The company implemented health and safety measures in response to COVID-19, including daily temperature checks and health declarations[184]. - The company has established a comprehensive occupational health and safety management system based on OHSAS18001[183]. - There were no significant violations of health and safety regulations reported during the period[189]. - The company has a low injury rate of 0 per 100 employees in 2021, compared to 1.3 in 2020[190]. - The company maintains a harmonious labor relationship and ensures compliance with employment regulations[178]. - The company emphasizes the importance of skilled and professionally trained employees for business growth and future success[191]. - In 2021, 52% of employees received training, an increase from 50% in 2020[192]. - The average training hours for male senior management was 8.0 hours, while general employees received an average of 1.6 hours[192]. - The average training hours for female general employees was 0.8 hours in 2021[192]. - The company provides comprehensive training opportunities to support talent development and business growth[191]. - The company has implemented strict recruitment measures to prevent illegal child labor and ensure compliance with labor laws[193]. - The company conducted annual reviews of supplier capabilities, ensuring compliance with ISO9001 and ISO14001 standards[198]. - In 2021, the number of key suppliers in Hong Kong was 32, with no data available for 2020[199]. Audit and Compliance - The company appointed National Audit Limited as its auditor on April 29, 2021, to fill the vacancy left by the resignation of Deloitte Touche Tohmatsu on April 28, 2021[57]. - The external auditor, Guo Wei CPA Limited, was appointed on April 29, 2021, with audit fees amounting to approximately HKD 880,000 for the fiscal year, down from HKD 1,100,000 in the previous year[120]. - The fees for non-audit services paid to the external auditor were approximately HKD 20,000, a decrease from HKD 68,000 in the previous year[120]. - The company has established procedures to address any non-compliance situations, including immediate notification and investigation of incidents[151]. - The company is committed to protecting intellectual property and consumer privacy through appropriate licenses and confidentiality agreements[200].

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 109,306, a decrease of 42% compared to HKD 188,910 for the same period in 2019[10] - Gross profit for the same period was HKD 5,924, down 59% from HKD 14,553 in 2019[10] - The company reported a profit before tax of HKD 344, a decline of 68% from HKD 1,077 in the previous year[10] - Total comprehensive income for the period was HKD 340, compared to HKD 627 in the prior year, representing a decrease of 46%[10] - The company’s basic and diluted earnings per share for the period were HKD 0.04, down from HKD 0.08 in the previous year[10] - The company's profit before tax for the six months ended September 30, 2020, was 340,000 HKD, a decrease of 45.9% compared to 627,000 HKD for the same period in 2019[42] - The company recorded a net profit of approximately HKD 0.3 million for the six months ended September 30, 2020, down from approximately HKD 0.6 million in the same period of 2019, representing a decrease of about 50%[63] - Revenue decreased by approximately 42.1% to about HKD 109.3 million for the six months ended September 30, 2020, compared to approximately HKD 188.9 million for the same period in 2019, primarily due to the impact of COVID-19 on the economy[65] Assets and Liabilities - The company's total assets as of September 30, 2020, were HKD 165,802, down from HKD 197,785 as of March 31, 2020[12] - Current liabilities decreased to HKD 115,309 from HKD 151,574, indicating improved liquidity management[12] - The net asset value attributable to the owners of the company increased to HKD 105,482 from HKD 105,142[12] - Trade receivables as of September 30, 2020, were 48,632,000 HKD, a decrease of 4.4% from 50,853,000 HKD as of March 31, 2020[47] - The company's bank borrowings as of September 30, 2020, totaled 44,646,000 HKD, an increase of 8.3% from 41,101,000 HKD as of March 31, 2020[54] - Total debt was approximately HKD 123.7 million as of September 30, 2020, down from approximately HKD 155.8 million as of March 31, 2020[73] - The company's debt-to-equity ratio was approximately 117.3% as of September 30, 2020, compared to 148.1% as of March 31, 2020[74] Cash Flow - For the six months ended September 30, 2020, the net cash generated from operating activities was HKD 5,881,000, compared to a net cash used of HKD 10,305,000 in the same period of 2019, representing a significant improvement[17] - The net cash used in investing activities was HKD 6,100,000, an increase from HKD 266,000 in the prior year, primarily due to the purchase of property and equipment amounting to HKD 6,256,000[17] - The net cash used in financing activities decreased to HKD 1,268,000 from HKD 3,484,000 in the previous year, reflecting a reduction in bank loan repayments[17] - The total cash and cash equivalents decreased by HKD 1,487,000, compared to a decrease of HKD 14,055,000 in the same period last year[17] Expenses and Cost Management - Administrative expenses were reduced to HKD 11,825 from HKD 12,971, reflecting cost control measures[10] - Total employee costs amounted to 28,648,000 HKD for the six months ended September 30, 2020, down 3.0% from 29,532,000 HKD in the previous year[42] - Administrative expenses decreased by approximately 8.8% to about HKD 11.8 million for the six months ended September 30, 2020, from approximately HKD 13.0 million in the same period of 2019[70] Business Strategy and Future Outlook - The company plans to focus on market expansion and new product development to drive future growth[10] - The company anticipates ongoing challenges in the construction industry due to the economic uncertainties caused by COVID-19, including supply chain disruptions and labor shortages[64] Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance shareholder value and protect stakeholder interests[106] - The company has adopted the standard code of conduct for securities transactions by directors, and all directors complied with these standards during the reporting period[101] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2020, and confirmed compliance with applicable accounting standards and listing rules[109] Shareholder Information - Major shareholders include Simple Joy with 66.61% and Simply Marvel with 7.14% of the shares[89][90] - The board of directors includes executive directors Li Jianming, Chen Shaohong, and Han Zhenghai, along with independent non-executive directors Zhuang Jinfeng, He Zhencong, and Shi Weilian[114] Employee Information - The group employed 125 full-time employees in Hong Kong as of September 30, 2020, an increase from 118 employees as of March 31, 2020[85]