Financial Performance - The group recorded total revenue of approximately HKD 452.6 million for the year ended March 31, 2020, an increase of 56.5% compared to HKD 289.2 million for the year ended March 31, 2019[23]. - The group achieved a net profit of approximately HKD 0.3 million for the year ended March 31, 2020, a significant improvement from a net loss of HKD 20.5 million in the previous year[23]. - The group's revenue increased by approximately 56.5% from about HKD 289.2 million for the year ended March 31, 2019, to about HKD 452.6 million for the year ended March 31, 2020, primarily due to significant contributions from three projects[34]. - Gross profit for the year ended March 31, 2020, was approximately HKD 27.8 million, with a gross margin of about 6.2%, an increase of approximately 5.9 percentage points from 0.3% in the previous year[36]. - The net profit attributable to the owners of the company for the year ended March 31, 2020, was approximately HKD 0.3 million, a significant improvement from a net loss of about HKD 20.5 million in the previous year[39]. Operational Challenges and Strategies - The board anticipates challenges in the foundation industry, including price wars and slow approval processes for infrastructure projects, which may impact bidding prices[24]. - The group aims to expand its client base in the public foundation sector despite current competitive pressures, focusing on key clients with productive construction projects[24]. - The company plans to maintain strict cost control and enhance operational efficiency through regular employee engagement and monitoring of resource usage[24]. - The group will continue to pursue additional qualifications and enhance financial resources to position itself favorably for private sector project tenders[27]. - The company recognizes significant risks, including reliance on non-recurring contracts and potential issues with subcontractor performance[28]. Human Resources and Workforce - The group has hired additional personnel, including 2 assistant quantity surveyors, 6 surveyors, 3 engineers, and 2 project managers, to support business growth[43]. - As of March 31, 2020, the total employee cost, including directors' remuneration and mandatory provident fund contributions, was approximately HKD 60.3 million, an increase from HKD 51.9 million in 2019, representing a growth of 16.5%[59]. - The group had 118 full-time employees in Hong Kong as of March 31, 2020, compared to 116 in 2019, indicating a slight increase in workforce[59]. - The total employee count as of March 31, 2020, was 156, with a male-to-female ratio of 18.5:1, compared to 17:1 in 2019[174]. - The employee turnover rate for 2020 was 35%, a decrease from 51% in 2019[174]. Corporate Governance - The board of directors confirmed compliance with corporate governance standards, ensuring transparency and accountability in operations[79]. - The board of directors is responsible for overseeing the company's overall strategy and business performance, monitoring financial performance, and supervising risk management systems[81]. - The company has established three board committees: the remuneration committee, nomination committee, and audit committee, each with clear written terms of reference[92]. - The chairman and CEO roles are separated to avoid power concentration, with Mr. Li serving as chairman and Mr. Chan as CEO during the year[90]. - The remuneration committee has reviewed the compensation of directors and senior management, deeming it fair and reasonable as of March 31, 2020[97]. Environmental and Sustainability Efforts - The company reported nitrogen oxide emissions of 1.55 tons in 2020, a decrease of 7.19% from 1.67 tons in 2019[146]. - The company is committed to minimizing greenhouse gas emissions primarily from vehicle use and electricity consumption[149]. - The environmental, social, and governance report aims to enhance stakeholder confidence and understanding of the company's sustainability efforts[135]. - The company has implemented measures to reduce vehicle emissions, including avoiding vehicle use during peak traffic hours and encouraging public transport[148]. - The company has established a comprehensive data collection system to identify key environmental, social, and governance issues[138]. Risk Management and Compliance - The company maintains an effective internal control and risk management system, with annual reviews conducted by the board to assess its effectiveness[122]. - The risk management process includes identifying major risks, assessing their potential impact, and planning effective mitigation activities, with annual updates on risk assessments[124]. - The company has established a policy for disclosing inside information, ensuring compliance with statutory disclosure requirements and maintaining confidentiality[126]. - The company has complied with anti-corruption and anti-money laundering laws and regulations during the reporting period, with no concluded corruption lawsuits against the issuer or its employees[194]. - The company has established a whistleblowing procedure to encourage employees to report any misconduct or dishonest behavior[193].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 188.91 million, an increase from HKD 101.47 million in the same period of 2018, representing an increase of 86%[16] - Gross profit for the same period was HKD 14.55 million, compared to a gross loss of HKD 6.26 million in 2018[16] - The company reported a net profit of HKD 0.63 million for the period, a significant recovery from a net loss of HKD 17.31 million in the previous year[16] - Basic and diluted earnings per share for the period was HKD 0.08, compared to a loss per share of HKD 2.16 in the same period last year[16] - For the six months ended September 30, 2019, the company reported a profit attributable to owners of HKD 627,000, compared to a loss of HKD 17,306,000 for the same period in 2018[70] - Basic earnings per share for the six months ended September 30, 2019, was HKD 0.08, a significant improvement from a loss of HKD 2.16 per share in the previous year[70] - Revenue increased by approximately 86.2% from about HKD 101.5 million for the six months ended September 30, 2018, to approximately HKD 188.9 million for the same period in 2019, driven by significant business development in the foundation and site formation industry[94] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 184.14 million, up from HKD 175.84 million as of March 31, 2019[18] - The company’s total equity increased to HKD 105.48 million as of September 30, 2019, compared to HKD 104.85 million as of March 31, 2019[18] - Non-current assets amounted to HKD 67.34 million, slightly down from HKD 68.29 million as of March 31, 2019[18] - The total debt of the company was approximately HKD 146.0 million as of September 30, 2019, compared to HKD 139.3 million as of March 31, 2019[114] - The company's capital debt ratio was approximately 138.4% as of September 30, 2019, up from 132.8% as of March 31, 2019[115] Cash Flow and Financing - The company's net cash used in operating activities was HKD 10.31 million, an improvement from HKD 17.81 million in the previous year[23] - Cash and cash equivalents at the end of the period were HKD 12.31 million, down from HKD 17.68 million at the end of the previous year[23] - The company reported cash and cash equivalents including short-term bank deposits with an interest rate of 0.01% per annum[78] - The company had secured bank borrowings of HKD 23,693,000 due within one year as of September 30, 2019, compared to HKD 21,901,000 as of March 31, 2019[84] - Total financing costs for the six months ended September 30, 2019, amounted to HKD 1,074,000, up from HKD 934,000 in the same period of 2018, reflecting a rise of approximately 15%[61] Expenses and Costs - Direct costs rose by approximately 61.9% to about HKD 174.4 million for the six months ended September 30, 2019, compared to approximately HKD 107.7 million for the same period in 2018, consistent with the increase in revenue[96] - Administrative expenses increased by approximately 22.8% to about HKD 13.0 million for the six months ended September 30, 2019, primarily due to an increase in employee costs to support significant business development in the foundation and site formation industry[98] - The company incurred a total employee cost of HKD 29,532,000 for the six months ended September 30, 2019, which is an increase from HKD 21,816,000 in the same period of 2018, reflecting a rise of about 35%[63] - The company recognized a depreciation expense of HKD 5,631,000 for property and equipment for the six months ended September 30, 2019, compared to HKD 4,192,000 in the previous year, representing an increase of about 34%[63] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance, which is essential for enhancing shareholder value and protecting stakeholder interests[140] - The company has complied with the corporate governance code as of the six-month period ending September 30, 2019, and continues to review its governance practices[140] - The audit committee's primary duties include reviewing financial information, internal control procedures, and risk management systems[143] - The audit committee, established on December 4, 2017, includes independent non-executive directors and has reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2019, ensuring compliance with applicable accounting standards and listing rules[141][143] Future Plans and Strategies - The company plans to continue focusing on market expansion and product development to drive future growth[10] - The company plans to enhance operational efficiency and profitability by expanding its machinery and equipment scale, which will improve its technical capabilities for bidding projects[93] Shareholder Information - Major shareholders include Simple Joy with a 67.86% stake and Simply Marvel with a 7.14% stake as of September 30, 2019[127][131] - The board did not recommend the payment of an interim dividend for the six months ended September 30, 2019, consistent with the previous year[125] Accounting Standards - The financial statements are prepared in accordance with applicable Hong Kong Financial Reporting Standards[27] - The company adopted several new and revised Hong Kong Financial Reporting Standards starting from January 1, 2019, including HKFRS 16 on leases[29] - The impact of adopting HKFRS 16 includes recognizing right-of-use assets and lease liabilities at the commencement date of leases[30] - The company will measure lease liabilities at the present value of lease payments not paid at the lease commencement date[41] - Lease payments include fixed payments and variable lease payments based on indices or rates[42] - The company will reassess lease liabilities in cases of changes in lease terms or assessments of purchase options[44] - The company will account for lease modifications as a separate lease if they increase the scope of the lease by adding the right to use one or more assets[45] - The financial statements are presented in Hong Kong dollars, which is the functional currency of the group[26]

Financial Performance - The total revenue for the fiscal year ending March 31, 2019, was approximately HKD 289.2 million, a decrease of 12.7% compared to HKD 331.1 million for the previous fiscal year[26] - The company recorded a net loss of approximately HKD 20.5 million for the fiscal year, compared to a net profit of HKD 17.4 million in the previous year, primarily due to increased costs of construction materials[26] - The company's revenue decreased by approximately 12.7% from about HKD 331.1 million for the year ended March 31, 2018, to about HKD 289.2 million for the year ended March 31, 2019[37] - Gross profit dropped to approximately HKD 0.9 million for the year ended March 31, 2019, resulting in a gross margin of 0.3%, down about 15.7 percentage points from approximately 16.0% in the previous year[39] - The company recorded a net loss of approximately HKD 20.5 million for the year ended March 31, 2019, compared to a net profit of approximately HKD 17.4 million in the same period of the previous year[42] - Administrative expenses increased by approximately 9.9% from about HKD 21.9 million to about HKD 24.0 million, mainly due to higher compliance-related legal and professional fees[40] Operational Challenges and Strategies - The board anticipates challenges in the foundation industry, including inevitable price wars and slow approval processes for infrastructure projects, which may pressure bidding prices[27] - The company plans to implement strict cost control measures and enhance operational efficiency to mitigate resource wastage and improve employee loyalty[27] - Future opportunities are expected to arise from expanding the client base in the public foundation sector, with a focus on key clients holding productive construction projects[27] - The company aims to enhance its technical capabilities by expanding its machinery and equipment fleet to compete for future projects[30] Financial Position and Resources - As of March 31, 2019, the company's cash and bank balances were approximately HKD 26.4 million, down from HKD 47.7 million in the previous year[51] - The total debt as of March 31, 2019, was approximately HKD 139.3 million, an increase from HKD 106.5 million in the previous year[51] - The company's debt-to-equity ratio was approximately 132.8% as of March 31, 2019, compared to 83.9% in the previous year[53] - The net proceeds from the IPO were approximately HKD 52.0 million, with about HKD 47.3 million utilized by March 31, 2019[45] Human Resources and Employee Management - The total employee cost for the year ended March 31, 2019, was approximately HKD 51.9 million, an increase from HKD 44.8 million in 2018[62] - The group employed 116 full-time employees in Hong Kong as of March 31, 2019, an increase from 110 in 2018[62] - The company has hired additional personnel, including 2 assistant quantity surveyors, 6 surveyors, and 3 engineers, to strengthen project management and supervision[44] - The employee gender ratio in 2019 was approximately 17:1 male to female, compared to 15:1 in 2018[181] - The total number of employees as of March 31, 2019, was 140, with a new hire percentage of 62% for males and 51% for females[185] - The employee turnover rate in 2019 was 33% for males and 51% for females[185] - The company reported a zero accident and injury rate during the reporting period, consistent with the previous year[189] - The company has established a comprehensive occupational health and safety management system based on OHSAS 18001[188] - A comprehensive training program is implemented annually to assess and meet employee training needs, ensuring appropriate training based on job nature and position[193] - In 2019, 100% of senior management and 94% of general employees received training, with an overall training percentage of 81%[194] Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has fully complied with it for the year ending March 31, 2019[84] - The board consists of a majority of independent non-executive directors, exceeding the requirement of at least one-third as per the listing rules[91] - All independent non-executive directors have confirmed their independence and possess appropriate qualifications and relevant financial management experience[92] - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with clear written terms of reference[97] - The company has provided directors with training to enhance their knowledge and skills regarding the Listing Rules and corporate governance practices[96] - The board is responsible for overseeing the company's overall strategy and business performance, including financial performance and risk management[86] - The company has purchased liability insurance for its directors and senior management to cover potential legal liabilities arising from their duties[87] - The roles of the Chairman and the CEO are separated to avoid power concentration in one individual, with Mr. Li serving as Chairman and Mr. Chen as CEO during the year[95] Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report reflects the company's performance in sustainability from April 1, 2018, to March 31, 2019[147] - The company identifies key environmental, social, and governance issues and performance indicators relevant to its operations[148] - The company emphasizes stakeholder engagement to assess significant environmental and social issues[149] - The company aims to enhance the transparency and accountability of its ESG reporting[147] - The company reported a nitrogen oxide (NOx) emission of 0.69 tons in 2018, with a slight increase in emissions due to additional vehicle usage in 2019[159] - Sulfur oxide (SOx) emissions rose to 1.67 tons in 2019 from 0.0010 tons in 2018, indicating a significant increase in pollution levels[159] - The total carbon dioxide (CO2) emissions from electricity usage in 2019 were approximately 48.63 tons for office and construction site power, down from 59.44 tons in 2018[161] - The company generated 73,191 tons of inert construction and demolition waste in 2019, a substantial increase from 9,272 tons in 2018, due to increased excavation activities[161] - The company is committed to reducing waste through measures of reduction, reuse, and recycling of construction materials[163] - The company has implemented effective noise reduction equipment to minimize environmental impact during construction[156] - The company has implemented ISO 14001 and ISO 9001 certifications to minimize significant environmental impacts and monitor performance[177] Future Outlook and Growth Strategies - Revenue for the fiscal year reached $150 million, representing a 15% increase compared to the previous year[81] - The company has outlined a future outlook with a projected revenue growth of 20% for the next fiscal year[81] - New product launches are expected to contribute an additional $30 million in revenue, with a focus on innovative technology solutions[75] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year[81] - A strategic acquisition is planned, which is anticipated to enhance operational efficiency and increase market competitiveness[75] - The company has invested $5 million in research and development for new technologies aimed at improving service delivery[81] - The management team emphasized the importance of maintaining compliance with industry regulations to mitigate risks[80] - The company aims to improve its profit margins by 5% through cost optimization strategies implemented in the upcoming year[81] - The board of directors has approved a new strategic plan focusing on sustainability and long-term growth initiatives[75]