Financial Performance - Total revenue for the fiscal year ended March 31, 2023, was approximately HKD 78.4 million, an increase of HKD 0.1 million or 0.1% from approximately HKD 78.3 million for the fiscal year ended March 31, 2022[6]. - The company reported a loss of approximately HKD 24.4 million for the fiscal year ended March 31, 2023, compared to a profit of approximately HKD 0.6 million for the previous year, primarily due to decreased gross profit, increased administrative expenses, and higher impairment losses[6]. - Revenue slightly increased by approximately 0.1% from HKD 78.3 million for the year ended March 31, 2022, to HKD 78.4 million for the year ended March 31, 2023[15]. - Gross profit decreased by approximately 54.8% from HKD 23.0 million to HKD 10.4 million, with the overall gross margin dropping from 29.4% to 13.3%[18]. - Other income increased by approximately 225.0% from HKD 0.4 million to HKD 1.3 million, mainly due to subsidies received under the Employment Support Scheme[19]. - Trade receivables and contract assets impairment losses increased to approximately HKD 12.5 million from HKD 2.4 million, attributed to the economic impact of COVID-19[20]. - Administrative expenses rose by approximately 31.7% from HKD 18.0 million to HKD 23.7 million, mainly due to increased legal and professional fees[21]. - Cash and cash equivalents as of March 31, 2023, were approximately HKD 48.3 million, down from HKD 67.5 million in 2022[26]. - The current ratio as of March 31, 2023, was approximately 10.7 times, compared to 16.2 times in 2022[27]. - The company did not recommend any final dividend for the year ended March 31, 2023, consistent with the previous year[25]. Market Outlook - The company anticipates more bidding opportunities in the second half of the year, with ongoing projects including a HKD 31 million contract for the Hong Kong City University and two additional contracts exceeding HKD 10 million each[8]. - The construction market in Hong Kong is expected to become more active as the government relaxes COVID-19 measures, which may stimulate economic recovery[8]. - The overall economic recovery in Hong Kong is anticipated to provide opportunities for revenue expansion and long-term growth[8]. COVID-19 Impact - The gross profit margin decreased during the fiscal year due to increased direct costs resulting from COVID-19's impact on labor and supply chains[11]. - The company has experienced delays in project progress due to COVID-19, affecting revenue generation[7]. - The company will continue to monitor the COVID-19 situation and take appropriate measures to mitigate its adverse effects on financial performance[13]. - Direct costs rose by approximately 23.0% from HKD 55.3 million to HKD 68.0 million, primarily due to supply chain pressures from the COVID-19 pandemic[17]. Corporate Governance - The board believes that the dual role of the chairman and CEO is in the best interest of the group for effective management and business development[49]. - The group has adhered to the trading standards for directors as per the listing rules, with no non-compliance incidents reported for the year ending March 31, 2023[50]. - The board consists of five directors, including two executive directors and three independent non-executive directors as of March 31, 2023[52]. - The company held four board meetings during the year and one annual general meeting on August 26, 2022[63]. - All directors attended 100% of the board meetings and the annual general meeting[64]. - The company plans to have at least one female director by December 31, 2023, depending on suitable candidates[56]. - The board has adopted a diversity policy to ensure a balanced composition in terms of skills, experience, and background[56]. - The company has purchased appropriate insurance for its directors and senior management against potential legal actions[68]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory policies[53]. - The company emphasizes the importance of continuous professional development for its directors[67]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report outlines the company's commitment to sustainability and its core business in fire safety systems design, supply, and installation[110]. - The ESG report covers activities, challenges, and measures taken during the reporting period ending March 31, 2023[112]. - The board of directors is responsible for overseeing ESG issues, including management policies and risk assessments[116]. - An ESG committee has been established to collect data for the ESG report and assess the company's performance in various ESG-related areas[117]. - The company aims to integrate ESG principles into its risk management system to align with societal trends towards sustainability[111]. - The ESG report includes quantitative data with supplementary notes explaining the standards and methods used for calculations[118]. - The reporting methodology for the ESG report remains consistent with the previous year, with clarifications provided for any changes in data disclosure and calculation methods[118]. - The company recognizes the importance of stakeholder engagement and has conducted a materiality assessment to identify key issues for the ESG report[118]. - The group emphasizes stakeholder engagement and maintains close communication with key stakeholders, including the board, investors, customers, employees, suppliers, and regulatory authorities[120]. - In 2023, the group identified 15 key issues for stakeholders, including occupational health and safety, data privacy protection, and customer satisfaction[123]. Employee Relations - The group recognizes employees as valuable assets and offers competitive compensation based on market standards and individual performance[40]. - The group has maintained good relationships with employees, with no significant issues or labor disputes affecting operations as of March 31, 2023[40]. - The company adheres to local laws and regulations regarding employment and labor practices, ensuring the protection of employee rights[169]. - The company offers competitive compensation linked to employee performance and experience, including benefits such as medical plans and discretionary bonuses[170]. - The company promotes a culture of open recruitment and fair hiring practices, ensuring a diverse and capable workforce[170]. - As of March 31, 2023, the total number of employees in the company is 43, with a gender breakdown of 34 males (79%) and 9 females (21%)[176]. - The employee turnover rate for the reporting period is 35%, with a breakdown of 29% for males and 56% for females[176]. - The injury rate during the reporting period is 2.3%, with one recorded injury resulting in 14 lost workdays[179]. - The company achieved a 100% training rate for employees during the reporting period, totaling 148 training hours[188]. - The average training hours for male employees is 2.69 hours, while for female employees it is 6.28 hours[188]. Environmental Management - The group has implemented an environmental management system in accordance with ISO 14001:2004 to ensure compliance with environmental regulations[127]. - The group reported emissions of 33.66 kg of nitrogen oxides (NOx), 0.07 kg of sulfur oxides (SOx), and 3.21 kg of particulate matter (PM) for the fiscal year 2023[130]. - The group aims to reduce greenhouse gas emissions primarily from office electricity consumption and vehicle fuel usage[134]. - The group has established a "Green and Sustainable Program" to minimize adverse environmental impacts during operations[127]. - The group is committed to continuous improvement in environmental performance and compliance with relevant environmental laws and regulations[129]. - The group encourages the use of electronic meetings to reduce physical gatherings and promote sustainability[131]. - The group has developed a waste disposal plan to manage environmental procedures effectively[128]. - Direct greenhouse gas emissions (Scope 1) decreased from 17.12 tons CO2 equivalent in 2022 to 11.52 tons CO2 equivalent in 2023, a reduction of approximately 32.5%[135]. - Indirect greenhouse gas emissions (Scope 2) from electricity consumption decreased from 32.40 tons CO2 equivalent in 2022 to 27.40 tons CO2 equivalent in 2023, a reduction of approximately 15.5%[135]. - Total greenhouse gas emissions decreased from 58.28 tons CO2 equivalent in 2022 to 56.20 tons CO2 equivalent in 2023, a reduction of approximately 3.6%[135]. - The total greenhouse gas emissions density per employee decreased from 1.39 tons CO2 equivalent in 2022 to 1.31 tons CO2 equivalent in 2023, a reduction of approximately 5.8%[135]. - Total energy consumption decreased from approximately 152,791 kWh in 2022 to approximately 113,818 kWh in 2023, a reduction of 25.5%[152]. - The density of total energy consumption per employee decreased from 3,638 kWh in 2022 to 2,647 kWh in 2023, a reduction of approximately 27.2%[152]. - Paper disposal increased from 1.83 tons in 2022 to 3.60 tons in 2023, an increase of approximately 96.2%[144]. - The paper disposal density per employee increased from 0.044 tons in 2022 to 0.084 tons in 2023, an increase of approximately 90.9%[144]. - The company aims to reduce total greenhouse gas emissions density by 2025, using the reporting period as a baseline[135]. - The company has implemented measures to optimize operational procedures and reduce fuel consumption, contributing to lower greenhouse gas emissions[137]. - The company has implemented various energy-saving measures to improve energy efficiency, including monitoring energy usage monthly and using energy-efficient office equipment[157]. - The company encourages employees to turn off idle equipment and lights when not in use, promoting a culture of energy conservation[157]. - The company has established a series of procedures to assess environmental risks in accordance with ISO 14001 standards, focusing on minimizing negative environmental impacts[161]. - The company recognizes the threats posed by climate change and has implemented risk management measures to identify and mitigate climate-related risks[165]. - The company has set up contingency plans to minimize potential risks and damages from extreme weather events, ensuring business resilience[166]. Supplier and Quality Management - The company has established strict procedures for selecting suppliers and subcontractors to ensure compliance with quality, service, environmental, and safety standards[193]. - The company has a total of 244 suppliers located in Hong Kong, with no suppliers in mainland China or other regions[199]. - The company has implemented a quality assurance policy aligned with ISO 9001, ISO 45001, and ISO 14001 standards to foster a culture of sustainable development and continuous improvement[200]. - The company prioritizes local suppliers and environmentally friendly products to reduce carbon footprint and support local economic development[198]. - The company conducts annual evaluations of suppliers and subcontractors based on overall project performance and compliance[193]. - The company has a policy to ensure fair and open bidding processes for suppliers and subcontractors, preventing any bias or discrimination[194]. - The company emphasizes the importance of customer feedback for improving and optimizing performance[199]. - The company monitors suppliers to ensure compliance with health, safety, and labor laws[198].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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，並明確表示概不就因本公 告全部或任何部分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。 LUMINA GROUP LIMITED 瑩嵐集團有限公司 （於開曼群島註冊成立之有限公司） 1162 （股份代號： ） 2023 3 31 截至 年 月 日止年度的 全年業績公告 瑩嵐集團有限公司（「本公司」）董事（「董事」）會欣然宣佈本公司及其附屬公司（統稱 「本集團」）截至2023年3月31日止年度（「2023 年度」）的經審核綜合業績，連同截至 2022年3月31日止年度（「2022 年度」）的比較數字如下： 綜合損益及其他全面收益表 截至2023年3月31日止年度 2023 年 2022年 附註 千港元 千港元 收益 3 78,448 78,260 直接成本 (68,001) (55,286) 毛利 10,447 22,974 其他收入 5 1,317 443 ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 44,342,000, an increase of 18.4% from HKD 37,362,000 in the same period of 2021[8] - Gross profit decreased to HKD 10,333,000, down 20.9% from HKD 13,051,000 year-on-year[8] - The net loss attributable to owners for the period was HKD 1,412,000, compared to a profit of HKD 501,000 in the same period of 2021, representing a significant decline[8] - Basic loss per share was HKD 0.24, compared to earnings of HKD 0.08 per share in the previous year[8] - The group reported a loss before tax of HKD 1,447,000 for the six months ended September 30, 2022, compared to a profit of HKD 682,000 in the same period of 2021[31] - The company reported a total loss of approximately HKD 1.4 million for the six months ended September 30, 2022, compared to a profit of about HKD 0.5 million for the same period in 2021, marking a decrease of approximately 380%[77] Revenue Breakdown - Revenue from fire safety system installation services was HKD 39,366,000, up from HKD 33,283,000, reflecting a growth of 18.4%[27] - Revenue from maintenance services increased to HKD 4,976,000 from HKD 4,079,000, marking a rise of 22.0%[27] - Revenue increased by approximately 18.5% from about HKD 37.4 million for the six months ended September 30, 2021, to about HKD 44.3 million for the six months ended September 30, 2022, primarily due to significant progress in several large fire safety system installation projects[68] Cash Flow and Assets - Cash and cash equivalents at the end of the period were HKD 53,202,000, down from HKD 67,513,000 at the beginning of the period[17] - The company reported a net cash outflow from operating activities of HKD 13,641,000, compared to HKD 3,810,000 in the previous year, indicating increased cash burn[17] - Total assets as of September 30, 2022, were HKD 144,583,000, slightly up from HKD 144,220,000 as of March 31, 2022[10] Liabilities and Equity - Current liabilities increased to HKD 10,544,000 from HKD 8,877,000, indicating a rise in short-term obligations[10] - Non-current liabilities decreased significantly to HKD 354,000 from HKD 969,000, reflecting a reduction in long-term obligations[10] - Trade payables as of September 30, 2022, totaled HKD 8,068,000, an increase from HKD 6,306,000 as of March 31, 2022[57] Employee and Operational Costs - Total employee costs for the period were HKD 11,397,000, slightly up from HKD 11,387,000 in the previous year[43] - Administrative expenses increased by approximately 12.0% from about HKD 10.8 million to about HKD 12.1 million, primarily due to higher professional fees related to financial advisory and maintaining listing services[74] - Employee costs for the six months ending September 30, 2022, were approximately HKD 11.4 million, unchanged from the same period in 2021[90] Government Support and Other Income - Other income for the six months ended September 30, 2022, was HKD 753,000, significantly higher than HKD 148,000 in the previous year, primarily due to government subsidies related to COVID-19[39] - The group confirmed government subsidies of HKD 679,000 related to the Employment Support Scheme during the reporting period[39] - Other income increased from about HKD 0.1 million to about HKD 0.8 million, mainly due to subsidies received under the Hong Kong government's "Employment Support Scheme"[71] Corporate Governance and Structure - The board of directors includes two executive directors and three independent non-executive directors[119] - The audit committee has reviewed the unaudited consolidated financial statements for the six months ending September 30, 2022, and believes they have been prepared in accordance with applicable accounting standards and regulations[116] Shareholder Information - As of September 30, 2022, Mr. Ho holds 427,500,000 shares, representing a 71.25% ownership in the company through Foxfire, which is wholly owned by him[101] - Foxfire, as a major shareholder, also holds 427,500,000 shares, equating to a 71.25% stake in the company[106] - The company’s issued share capital as of September 30, 2022, was HKD 6,000,000, with 600,000,000 ordinary shares issued at a par value of HKD 0.01 each[85] Future Outlook and Risks - The company continues to focus on expanding its fire safety services in Hong Kong, aiming for market growth despite recent financial challenges[20] - Major risks include reliance on non-recurring projects and potential cash flow mismatches due to payment timing[98] - The group has made significant progress in its business objectives, including hiring additional personnel to enhance service capabilities[92]

Financial Performance - Total revenue increased by approximately HKD 20.7 million or 35.9% to about HKD 78.3 million for the fiscal year ending March 31, 2022, compared to approximately HKD 57.6 million for the previous year[21]. - The company reported a profit of approximately HKD 0.6 million for the fiscal year ending March 31, 2022, a significant improvement of about HKD 1.1 million or 220.0% from a loss of approximately HKD 0.5 million in the previous year[21]. - Revenue increased by approximately 35.9% from HKD 57.6 million for the year ended March 31, 2021, to HKD 78.3 million for the year ended March 31, 2022, primarily due to an increase in new contracts for fire safety system installations[30]. - The total profit and comprehensive income for the year was approximately HKD 0.6 million, a significant increase of approximately 220.0% from a loss of HKD 0.5 million in the previous year[42]. Project and Market Outlook - The company has unconfirmed revenue totaling over HKD 80 million as of March 31, 2022, with several projects in hand, including a HKD 31 million project at the Hong Kong Polytechnic University and two additional projects each exceeding HKD 20 million[23]. - The company anticipates more bidding opportunities in the Hong Kong fire safety market in the second half of the fiscal year, despite ongoing challenges from COVID-19[23]. - The company is optimistic about the fire safety market in Hong Kong, with an increase in tender opportunities and higher tender amounts compared to previous years[doc id='27']. Cost and Profitability - Direct costs rose by approximately 30.1% from HKD 42.5 million to HKD 55.3 million, aligning with the revenue increase[32]. - Gross profit increased by approximately 52.3% from HKD 15.1 million to HKD 23.0 million, with the overall gross profit margin rising from approximately 26.3% to 29.4%[33]. - Other income decreased by approximately 84.0% from HKD 2.5 million to HKD 0.4 million, mainly due to the lack of government subsidies under the employment support scheme[34]. Financial Position - As of March 31, 2022, the company maintained a strong cash position with cash and cash equivalents of approximately HKD 67.5 million, down from HKD 72.1 million in the previous year[43]. - The current ratio as of March 31, 2022, was approximately 16.2 times, compared to 17.6 times in the previous year[44]. - The company has no interest-bearing bank borrowings or other borrowings as of March 31, 2022[45]. Employee and Operational Insights - As of March 31, 2022, the group employed a total of 42 employees, with employee costs amounting to approximately HKD 19.8 million, an increase from HKD 17.4 million in 2021[55]. - The group has not encountered any significant difficulties in procuring materials or hiring subcontractors during the fiscal year[64]. - The group has maintained good relationships with employees, with no significant labor disputes reported[55]. Corporate Governance - The board of directors consists of five members, including two executive directors and three independent non-executive directors[89]. - The company has adopted a board diversity policy to ensure a balanced composition of skills, experience, and perspectives among its directors[92]. - The board has confirmed compliance with all applicable corporate governance code provisions, except for a deviation regarding the separation of the roles of chairman and CEO[86]. - The company has established five board committees, including the audit committee, remuneration committee, nomination committee, risk and technology committee, and the environmental, social, and governance committee[105]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of integrating environmental, social, and governance (ESG) principles into its risk management system to align with sustainable business practices[143]. - The company is committed to sustainable development and recognizes the importance of environmental protection and resource conservation[143]. - The company has identified 16 key ESG issues, with health and safety, anti-corruption, and data protection being among the top priorities[161]. - The company has established an environmental and waste management plan to minimize the potential adverse impacts of solid waste, chemical waste, general waste, and wastewater generated from its operations[186]. Emissions and Waste Management - The company generated a total greenhouse gas emission of 58.28 tons of CO2 equivalent in the fiscal year 2022, an increase from 54.49 tons in 2021, representing a 5.2% rise[181]. - The paper waste disposal amount was 1.83 tons in 2022, a decrease from 1.92 tons in 2021, representing a 4.7% reduction[193]. - The company has set a target to reduce the total density of harmless waste by 2025, using the reporting period as a baseline[196]. - The company has implemented measures to optimize operational procedures to increase loading rates and reduce idle vehicle time, contributing to lower direct greenhouse gas emissions[182].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 37,362,000, an increase of 43.1% compared to HKD 26,102,000 for the same period in 2020[6] - Gross profit for the same period was HKD 13,051,000, representing a 74.6% increase from HKD 7,471,000 in 2020[6] - The group reported a profit before tax of HKD 682,000 for the six months ended September 30, 2021, compared to HKD 285,000 for the same period in 2020[30] - Profit and total comprehensive income for the period increased by approximately 150% from HKD 0.2 million to HKD 0.5 million, driven by increased revenue and gross profit[73] - The company reported a profit attributable to owners of HKD 501,000 for the period, up from HKD 210,000 in the same period last year[6] - Basic earnings per share increased to HKD 0.08 from HKD 0.04 year-on-year[6] - The basic earnings per share attributable to the company's owners for the six months ended September 30, 2021, was 501 thousand HKD, compared to 210 thousand HKD for the same period in 2020, representing a 138.6% increase[44] Revenue Breakdown - Revenue from fire safety system installation services was HKD 33,283,000, up 100% from HKD 16,595,000 in the previous year[25] - Revenue from maintenance services decreased to HKD 4,079,000, down 57% from HKD 9,507,000 in the previous year[25] - Revenue increased by approximately 43.3% from HKD 26.1 million for the six months ended September 30, 2020, to HKD 37.4 million for the six months ended September 30, 2021, primarily due to an increase in new contracts for fire safety system installations[63] Cash Flow and Assets - The net cash used in operating activities was HKD (3,810,000), an improvement from HKD (5,960,000) in the previous year[15] - The company experienced a net decrease in cash and cash equivalents of HKD (6,353,000) compared to HKD (4,998,000) in the previous year[15] - Total assets as of September 30, 2021, were HKD 144,082,000, compared to HKD 142,987,000 as of March 31, 2021[8] - The total equity as of September 30, 2021, was HKD 137,883,000, slightly up from HKD 137,382,000 as of March 31, 2021[8] - Trade receivables as of September 30, 2021, totaled 10,896 thousand HKD, a decrease of 10.9% from 12,231 thousand HKD as of March 31, 2021[48] - Trade payables as of September 30, 2021, amounted to 6,598 thousand HKD, an increase of 28.8% from 5,127 thousand HKD as of March 31, 2021[50] Operational Highlights - The company continues to focus on expanding its fire safety services in Hong Kong[18] - The group operates primarily in Hong Kong, with no regional segment reporting due to the location of its services and assets[35] - The group has established a new computer system to digitize project and document processes[98] - The group has hired six engineers and assistant engineers to enhance service capacity[93] - The group has maintained good relationships with employees, with no significant labor disputes reported as of September 30, 2021[86] Expenses and Costs - Direct costs rose by approximately 30.6% from HKD 18.6 million to HKD 24.3 million, consistent with the revenue increase[64] - Administrative expenses increased by approximately 24.1% from HKD 8.7 million to HKD 10.8 million, primarily due to higher administrative staff costs[69] - The total employee costs for the six months ended September 30, 2021, amounted to 11,387 thousand HKD, an increase of 12.2% from 10,148 thousand HKD in the same period of 2020[39] - Employee costs for the six months ended September 30, 2021, were approximately HKD 11.4 million, compared to HKD 10.1 million for the same period in 2020[86] Government Subsidies - Other income decreased significantly to HKD 148,000 from HKD 2,230,000 in the previous year, primarily due to the absence of COVID-19 related government subsidies[36] - The group did not recognize any COVID-19 related government subsidies during the current interim period, compared to HKD 1,806,000 in the previous year[36] - Other income decreased significantly from HKD 2.2 million to HKD 0.1 million, mainly due to the absence of subsidies from the Hong Kong government's "Employment Support Scheme" during the reporting period[66] Financial Position - As of September 30, 2021, the group maintained a strong financial position with bank balances of approximately HKD 47.3 million and a current ratio of approximately 18.2 times[75] - The group had no interest-bearing bank and other borrowings as of September 30, 2021[76] - As of September 30, 2021, the group had performance guarantees provided by two banks amounting to approximately HKD 4.1 million[85] Corporate Governance - The audit committee reviewed the unaudited consolidated financial statements for the six months ending September 30, 2021, and confirmed compliance with applicable accounting standards and regulations[120] - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting and risk management[120] - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO, which is deemed appropriate by the board[117] - There were no known business or interest conflicts involving directors and the company's controlling shareholders as of September 30, 2021[115] Future Outlook - The company expects the difficulties caused by the COVID-19 pandemic to ease, leading to a gradual recovery of the Hong Kong economy[60] - The company will continue to strengthen its market position and optimize productivity and efficiency amid intense market competition and economic uncertainty[60] Shareholder Information - As of September 30, 2021, Foxfire holds 427,500,000 shares, representing a 71.25% ownership stake in the company[110] - No stock options were granted, exercised, expired, canceled, or lapsed under the stock option plan from its adoption until September 30, 2021[111] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending September 30, 2021[116] - The company has not disclosed any major shareholders or interests exceeding 5% as of September 30, 2021, apart from those already mentioned[109]

Financial Performance - Total revenue decreased by approximately HKD 52.5 million or 47.7% to about HKD 57.6 million for the fiscal year ending March 31, 2021, compared to approximately HKD 110.1 million for the previous year[8]. - The company reported a loss of approximately HKD 0.5 million, a decrease of about HKD 17.7 million or 102.9% from a profit of approximately HKD 17.2 million in the previous fiscal year[8]. - Revenue decreased by approximately 47.7% from HK$110.1 million for the year ended March 31, 2020, to HK$57.6 million for the year ended March 31, 2021, primarily due to a reduction in new contracts for fire safety system installations[16]. - Gross profit fell by approximately 59.5% from HK$37.3 million for the year ended March 31, 2020, to HK$15.1 million for the year ended March 31, 2021, with a slight decrease in gross profit margin from 33.9% to 26.3%[19]. - Administrative expenses have increased, contributing to the overall decline in performance for the fiscal year[8]. - Other income increased by approximately 177.8% from HK$0.9 million for the year ended March 31, 2020, to HK$2.5 million for the year ended March 31, 2021, mainly due to government subsidies received[20]. Market Outlook - The company has a total unconfirmed revenue of up to HKD 100 million, with significant projects including a HKD 31 million contract for the City University of Hong Kong and two contracts exceeding HKD 20 million each[10]. - The company is optimistic about the Hong Kong fire safety market in the second half of the fiscal year, with an increase in bidding opportunities and higher bid amounts compared to previous years[10]. - The impact of COVID-19 has led to delays in project schedules and a decrease in inquiries for fire safety installation services for existing buildings[12]. - The construction market is experiencing intense competition, resulting in a decline in the number of public tenders and contract prices, negatively affecting contract revenue[13]. - The company plans to leverage the anticipated economic recovery in Hong Kong to expand its revenue base and achieve long-term growth[10]. Operational Efficiency - Direct costs decreased by approximately 41.6% from HK$72.8 million for the year ended March 31, 2020, to HK$42.5 million for the year ended March 31, 2021, aligning with the revenue decline[18]. - Administrative expenses rose by approximately 34.8% from HK$11.5 million for the year ended March 31, 2020, to HK$15.5 million for the year ended March 31, 2021, primarily due to increased employee costs[22]. - As of March 31, 2021, the company maintained a strong liquidity position with cash and bank balances of approximately HK$53.7 million, down from HK$81.8 million as of March 31, 2020[28]. - The current ratio as of March 31, 2021, was approximately 17.6 times, compared to 10.4 times as of March 31, 2020[29]. - The company had no interest-bearing bank borrowings as of March 31, 2021, consistent with the previous year[30]. Human Resources - As of March 31, 2021, the group employed a total of 40 employees, down from 45 employees in the previous year[40]. - Employee costs for the year ended March 31, 2021, amounted to approximately HKD 17.4 million, an increase from HKD 12.9 million in 2020[40]. - The group has maintained good relationships with employees, with no significant issues or labor disputes reported during the year[40]. - The proportion of female employees increased from 20% in 2020 to 25% in 2021, with a total of 40 employees as of March 31, 2021[162]. - The company employs a consultant engineer with over 30 years of experience to provide training and technical support, enhancing employee skills in modern fire protection technology[177]. Corporate Governance - The company aims to maintain high corporate governance standards to enhance accountability and transparency, ensuring shareholder value creation[55]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[59]. - The company has confirmed compliance with the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[56]. - The board regularly reviews and monitors compliance with legal and regulatory requirements, ensuring effective governance practices[59]. - The company has established four board committees: audit, remuneration, nomination, and risk and technology[78]. Environmental, Social, and Governance (ESG) Initiatives - The group has established an Environmental, Social, and Governance (ESG) working group to collect relevant data and assess ESG risks[114]. - The total greenhouse gas emissions decreased from approximately 62.33 tons of CO2 equivalent in 2020 to about 54.49 tons in 2021, representing a reduction of approximately 13%[135]. - The company is committed to continuous improvement of its environmental management system to minimize negative environmental impacts[130]. - The company adheres to local environmental laws and regulations, including the Air Pollution Control Ordinance and the Noise Control Ordinance[130]. - The company has established procedures to assess environmental risks in accordance with ISO 14001 standards[157]. Community Engagement - Community investment is a strategic focus, aiming to support social stability and improve the quality of life for underprivileged individuals[197]. - The company donated HKD 7,000 to support the "Star Picking Program" aimed at assisting underprivileged students in rural areas of mainland China[198]. - A total of HKD 75,000 was donated to the Po Leung Kuk Child Sponsorship Program, benefiting 50 children, demonstrating the company's commitment to local youth[198]. - The company sponsored HKD 120,000 to the One Well Dunk! basketball team to encourage young talents to pursue their dreams[198].

Financial Performance - The company reported revenue of HKD 26,102,000 for the six months ended September 30, 2020, a decrease of 52.7% compared to HKD 55,178,000 in the same period of 2019[15]. - Gross profit for the same period was HKD 7,471,000, down 58.8% from HKD 18,132,000 in 2019[15]. - The company recorded a net cash outflow from operating activities of HKD (5,960,000) for the six months ended September 30, 2020, compared to a cash inflow of HKD 7,084,000 in 2019[24]. - The company reported a total comprehensive income of HKD 210,000 for the six months ended September 30, 2020, compared to HKD 7,835,000 in 2019[15]. - Basic earnings per share for the period were HKD 0.04, a significant decrease from HKD 1.31 in the same period of 2019[15]. - The pre-tax profit for the six months ended September 30, 2020, was HKD 285,000, down from HKD 9,768,000 in the previous year, indicating a decline of about 97.1%[44]. - The total comprehensive income for the period decreased by approximately 97.4% from HKD 7.8 million to HKD 0.2 million, attributed to reduced revenue and gross profit, increased administrative expenses, and decreased other expenses[79]. Assets and Liabilities - Total assets as of September 30, 2020, were HKD 145,686,000, slightly down from HKD 149,200,000 as of March 31, 2020[17]. - Cash and cash equivalents at the end of the period were HKD 76,836,000, down from HKD 81,834,000 at the beginning of the period[24]. - Trade receivables as of September 30, 2020, totaled HKD 16,753,000, an increase from HKD 15,246,000 as of March 31, 2020[60]. - The average credit period for trade payables was between 30 to 60 days, with total trade payables amounting to HKD 7,791,000 as of September 30, 2020, down from HKD 8,019,000[62]. Operational Overview - The company is primarily engaged in providing fire safety services in Hong Kong[27]. - Revenue from fire safety system installation services was HKD 16,595,000, while maintenance services generated HKD 9,507,000 for the six months ended September 30, 2020[38]. - The company experienced delays in customer inquiries for fire safety installation services due to the COVID-19 pandemic, impacting revenue recognition[66]. - The company has implemented a credit period of 0 to 30 days for customers from the invoice date of contract progress payments[37]. - The company’s operational segments are identified based on the information reviewed by the chief operating decision maker, focusing on fire safety system installation and maintenance services[39]. Employee and Administrative Costs - The total employee costs for the six months ended September 30, 2020, amounted to HKD 10,148,000, which is an increase of 70.5% compared to HKD 5,937,000 in the same period of 2019[52]. - Administrative expenses increased by approximately 64.2% from HKD 5.3 million to HKD 8.7 million, primarily due to higher administrative staff costs[75]. - As of September 30, 2020, the company employed a total of 43 employees, a decrease from 45 employees as of March 31, 2020[92]. Strategic Initiatives - The company transitioned from GEM to the main board of the Hong Kong Stock Exchange on April 20, 2020[26]. - The company has utilized approximately HKD 41.8 million of the net proceeds from its IPO as of September 30, 2020, leaving HKD 2.2 million unutilized[97]. - The company has made significant investments in expanding its fire safety system installation services, utilizing approximately HKD 27.5 million for initial payments and HKD 1.2 million for performance guarantees[94]. - The company has established a new computer system to enhance its information management processes[94]. - The company has revised its planned use of net proceeds from HKD 44.0 million to HKD 41.8 million, with specific allocations for market growth and service capacity expansion[96]. Risks and Challenges - The company has faced risks related to reliance on non-recurring projects, which could significantly impact its operational and financial performance if project numbers decline[99]. - The company has identified potential risks related to subcontractor performance and supply chain issues that could adversely affect its operations and financial results[99]. - The company has not faced significant foreign exchange risks as all revenue-generating activities are conducted in Hong Kong dollars[85]. Shareholder Information - As of September 30, 2020, Mr. Ho holds 427,500,000 shares, representing a 71.25% ownership in the company through Foxfire, which he wholly owns[102]. - Mr. Ho is the beneficial owner of 1 share in Foxfire, representing 100% ownership[103]. - The company has not granted, exercised, or cancelled any share options under the share option scheme since its adoption on September 22, 2017, up to September 30, 2020[108]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending September 30, 2020[113]. Audit and Compliance - The audit committee has reviewed the unaudited consolidated financial statements for the six months ending September 30, 2020, and believes they comply with applicable accounting standards and regulations[117]. - There are no known significant matters that require disclosure following September 30, 2020, up to the report date[119].

Financial Performance - Total revenue decreased by approximately HKD 10.7 million or 8.9% to about HKD 110.1 million for the fiscal year ended March 31, 2020, compared to approximately HKD 120.8 million for the previous year[9] - Net profit for the year dropped by approximately HKD 6.9 million or 28.6% to about HKD 17.2 million, primarily due to reduced revenue and gross profit, as well as increased other expenses including professional service fees related to the transfer listing[9] - Revenue decreased by approximately 8.9% from about HKD 120.8 million for the year ended March 31, 2019, to about HKD 110.1 million for the year ended March 31, 2020[15] - Total comprehensive income decreased by approximately 28.6% from about HKD 24.1 million to about HKD 17.2 million, primarily due to reduced revenue and gross profit[27] - Direct costs decreased by approximately 11.0% from about HKD 81.8 million to about HKD 72.8 million, consistent with the revenue decline[17] - Gross profit decreased by approximately 4.4% from about HKD 39.0 million to about HKD 37.3 million, with a slight increase in gross profit margin from 32.3% to 33.9%[18] - Bank interest income increased to approximately HKD 898,000 from HKD 649,000, reflecting an increase in short-term deposits[19] - As of March 31, 2020, the group maintained a strong financial position with cash and bank balances of approximately HKD 81.8 million, up from HKD 65.4 million[28] - The current ratio as of March 31, 2020, was approximately 10.4 times, down from 11.8 times[29] - The company had no interest-bearing bank borrowings as of March 31, 2020[30] Contracts and Projects - The company remains optimistic about the Hong Kong fire safety market, having secured significant contracts including a project for upgrading and replacing an automatic fire alarm system with a total contract value exceeding HKD 10 million[9] - The company was awarded a major contract for the Jockey Club Integrated Health Building at City University of Hong Kong, with a contract value exceeding HKD 31 million, marking the largest contract amount since its establishment[9] - The company experienced project delays primarily due to other contractors' delays on the same projects, but expects to complete these projects within the fiscal year ending March 31, 2021[13] COVID-19 Impact and Response - The company has communicated with major suppliers and subcontractors to ensure a continuous and sufficient supply of materials, equipment, and manpower amid the COVID-19 pandemic[13] - The company anticipates that the COVID-19 outbreak will not have a significant adverse impact on its business operations and sustainability[13] Corporate Governance - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a diverse governance structure[62] - The company has adopted a board diversity policy aiming for at least one female director by December 31, 2022, depending on suitable candidates[65] - The company has confirmed compliance with corporate governance codes, except for a deviation regarding the separation of the roles of chairman and CEO[59] - The board is responsible for overseeing the company's compliance with legal and regulatory requirements, ensuring accountability and transparency[62] - The company has maintained a strong commitment to corporate governance, which is deemed essential for long-term success and sustainable development[59] - The company held four board meetings and one annual general meeting in the fiscal year ending March 31, 2020[75] - All directors attended 100% of the board meetings and the annual general meeting[76] - The Audit Committee held four meetings during the fiscal year, with all members attending every meeting[83] - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk and Technology Committee[82] - The Remuneration Committee met once in the fiscal year and reviewed the remuneration of directors and senior management[86] - The Nomination Committee also met once in the fiscal year, reviewing the board's structure and recommending the reappointment of retiring directors[90] - The company has purchased appropriate insurance for its directors and senior management against potential legal actions[81] - All directors participated in training related to good corporate governance practices during the fiscal year[79] - The company is committed to ensuring compliance with current listing rules and corporate governance codes[79] - The Audit Committee recommended the reappointment of Deloitte as the company's external auditor at the annual general meeting[85] Employee Relations and Human Resources - As of March 31, 2020, the group employed a total of 45 employees, down from 48 employees in the previous year[41] - Employee costs for the year ended March 31, 2020, were approximately HKD 12.9 million, compared to HKD 15.5 million in 2019, reflecting a decrease of about 16.8%[41] - The group has maintained good relationships with employees, with no significant issues or labor disputes reported during the year[41] - The group has established long-term relationships with five major clients, with business ties ranging from 1 to 7 years[49] - The group has provided competitive compensation packages to attract and retain high-quality employees, including performance-based bonuses and stock options[41] - The company emphasizes that employees are its most valuable asset and has implemented human resource management policies to maximize their potential[164] - Employees receive competitive compensation linked to performance and experience, including benefits such as holidays, medical plans, and discretionary bonuses[165] - The company provides ongoing training and development programs to enhance employee skills, including external training from experienced consultants[176] - Continuous education funding is offered to employees to support their personal development and encourage participation in relevant courses[177] - The company strictly prohibits child labor and forced labor in its recruitment process, complying with local laws and regulations[179] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to integrating environmental, social, and governance (ESG) principles into its risk management system to align with sustainable business practices[118] - The company has established an ESG working group to collect relevant data and assess risks related to environmental, social, and governance factors[119] - The ESG report covers the group's main operational revenue activities, including installation and maintenance of fire safety systems and sales of fire equipment[120] - The company has implemented measures to reduce direct greenhouse gas emissions, including optimizing operational procedures and regular vehicle maintenance[141] - The total greenhouse gas emissions decreased from approximately 64.50 tons of CO2 equivalent in 2019 to about 62.33 tons in 2020, representing a reduction of approximately 3%[141] - The total paper waste disposal decreased by approximately 19% from about 2.24 tons in 2019 to about 1.82 tons in 2020[146] - The company has implemented policies for effective resource usage, including energy, water, and other raw materials[200] - The company has adopted green procurement strategies and aims to minimize environmental impact through reduction, reuse, recycling, and replacement[159] - The company has established guidelines for hazardous waste management and disposal, ensuring compliance with environmental regulations[149] - The company has described its methods for handling hazardous and non-hazardous waste, along with measures to reduce generation[198] Community Engagement - The company has donated HKD 7,500 to support the "Star Plan" for underprivileged students in rural areas of China, and HKD 75,000 to the Po Leung Kuk Child Sponsorship Program[196] - The company purchased sports equipment worth HKD 10,200 for the Hong Kong rugby team to support children's sports development[196] - The company encourages employee participation in community activities to foster social responsibility and positive values[195]