Financial Performance - For the year ended March 31, 2022, the Group recorded total revenue of approximately HK$548.8 million, representing an increase of approximately 13.9% compared to HK$481.7 million for the year ended March 31, 2021[15]. - The profit attributed to owners of the Company for the year was approximately HK$23.5 million, a decrease from approximately HK$31.1 million for the previous year, primarily due to a decrease in gross profit and an increase in administrative expenses[15]. - The Group's net profit for the fiscal year 2020/21, excluding listing expenses, was approximately HK$45.4 million[16]. - The overall gross profit decreased from approximately HK$60.8 million to approximately HK$46.2 million, a decline of approximately 24.1%[97]. - The gross profit margin fell from 12.6% for FY2020/21 to 8.4% for the Year[97]. - Administrative expenses rose from approximately HK$7.5 million to approximately HK$11.4 million, an increase of approximately HK$3.9 million or 51.7%[104]. - Finance costs increased from approximately HK$289,000 to approximately HK$541,000, representing an increase of approximately HK$252,000 or 87.2%[105]. - Income tax expenses decreased from approximately HK$8.9 million to approximately HK$4.7 million, a reduction of approximately HK$4.2 million or 46.6%[108]. - Profit and total comprehensive income for the year decreased from approximately HK$31.1 million to approximately HK$23.5 million, a decline of approximately HK$7.6 million or 24.5%[115]. - The Group's cost of sales increased from approximately HK$420.9 million to approximately HK$502.7 million, an increase of approximately HK$81.8 million or 19.4%[96]. - Other income and gains decreased from approximately HK$4.6 million to approximately HK$1.5 million, a decline of approximately HK$3.1 million[98]. Strategic Plans and Outlook - The Group plans to utilize net proceeds from the listing to finance project upfront costs, purchase additional machinery, expand manpower by recruiting additional staff, and acquire building information modeling software along with supporting hardware[24]. - The Board is cautiously optimistic about the Group's business outlook based on accumulated expertise and experiences in the industry[25]. - The Group expects to create greater value for shareholders and investors through an active business strategy in the coming year[25]. - The increase in revenue reflects the Group's enhanced service capacity and market position following the successful listing[14]. - The Group aims to strengthen its competitive edge in the Hong Kong foundation works industry through strategic investments and resource allocation[24]. - The Group aims to improve operational efficiency and profitability while seeking opportunities to expand its customer base and market share[89]. - The Group recognizes the risk of customer concentration and is actively working to diversify its customer base[149]. Corporate Governance and Management - The company has a strong governance structure with independent directors overseeing management and providing independent advice to the board[56]. - The board includes members with diverse backgrounds in finance, engineering, and management, ensuring comprehensive oversight[68]. - The company is committed to maintaining high standards of corporate governance through its independent board members[60]. - The independent directors do not have any interests in the shares of the company, maintaining a conflict-free governance environment[65]. - The remuneration for Mr. Yip and Ms. Kwan will be reviewed annually by the Board and the Remuneration Committee, with both entitled to discretionary bonuses based on performance[33][40]. Human Resources - The Group employed a total of 123 employees as of March 31, 2022, a decrease from 133 employees as of March 31, 2021[184]. - The total staff cost incurred by the Group for the Year was approximately HK$55.5 million, compared to approximately HK$55.1 million for FY2020/21[184]. - The Group has adopted a share option scheme to motivate, attract, and retain employees[148]. - The Group faced temporary labour shortages due to the COVID-19 pandemic, impacting recruitment efforts[182]. Environmental, Social, and Governance (ESG) - The Group emphasizes environmental, social, and governance (ESG) strategies in its daily management to balance economic performance and stakeholder satisfaction[198]. - The Board is committed to formulating and implementing ESG strategies, with performance supervision embedded in the Group's strategic goals[199]. - Corporate social responsibilities are integrated into the Group's business strategy and management approach[199]. - The ESG Report for the year ended 31 March 2022 highlights the Group's efforts in sustainable development[200]. Risks and Challenges - The company faces risks related to the foundation industry, which depend on the property market's development in Hong Kong, influenced by government policies and economic conditions[128]. - A significant portion of revenue was derived from a limited number of customers, raising concerns about future contract acquisition and project margins[140]. Financial Position - As of March 31, 2022, the Group had total cash and cash equivalents of approximately HK$42.6 million, a decrease from approximately HK$107.6 million as of March 31, 2021[152]. - The Group's issued capital was HK$10.0 million, with 1,000,000,000 ordinary shares issued at HK$0.01 each as of March 31, 2022[156]. - The current ratio remained stable at approximately 4.7 times as of March 31, 2022, compared to 4.8 times as of March 31, 2021[119]. - The gearing ratio increased to approximately 9.6% as of March 31, 2022, from approximately 8.2% as of March 31, 2021, primarily due to an increase in interest-bearing bank borrowings[120]. - The return on total assets decreased to approximately 7.6% for the year from approximately 11.0% for the year ended March 31, 2021[125]. - The return on equity decreased to approximately 9.5% for the year from approximately 13.9% for the year ended March 31, 2021[126]. - The net profit margin decreased to approximately 4.3% for the year from approximately 6.5% for the year ended March 31, 2021, mainly due to a decrease in gross profit and an increase in administrative expenses[127]. Use of Proceeds - The Listing on the Stock Exchange raised net proceeds of approximately HK$97.1 million, enhancing the Group's service capacity and market position in Hong Kong[13]. - The actual use of proceeds for purchasing additional machinery was HK$26.0 million, with HK$10.5 million remaining to be utilised by March 31, 2023[180]. - The Group's planned use of proceeds included financing project costs (HK$39.9 million) and purchasing building information modelling software (HK$5.2 million), both fully utilised[180]. - The Group confirmed that the utilisation of proceeds for expanding manpower has resumed, with the remaining proceeds expected to be fully utilised by March 31, 2023[182]. Company Background - Kwong Luen Engineering Holdings Limited has been operating since 1995, focusing on foundation works primarily in residential developments in Hong Kong[197]. - The Group's foundation works include excavation and lateral support (ELS), pile cap construction, underground drainage works, and site formation works[197].

Kwong Luen Engineering Holdings Limited (incorporated in the Cayman Islands with limited liability) Stock Code 股份代號 : 1413 Interim Report 2021/22 CONTENTS 目錄 | --- | --- | --- | --- | --- | |-------|-------|-------|-------|---------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2–3 | Corporate Information 公司資料 | | | | | 4–12 | Management Discussion and Analysis 管理層討論及分析 | | | | | 13–59 | Condensed Consolidated Interim Financial Sta ...

Kwong Luen Engineering Holdings Limited 廣 聯 工 程 控 股 有 限 公 司 (incorporated in the Cayman Islands with limited liability) ( 於 閲 曼 群 島 註 册 成 立 的 有 限 公 可 ) Stock Code 股份代號：1413 2 0 2 0 - 2 1 ANNUAL REPORT Sp CONTENTS 目錄 2 Corporate Information | --- | --- | --- | |---------------------------------------------------------------------------------------------------|-------|-------| | | | | | 公司資料 | | | | Chairman's Statement 主席報告 | | | | Directors and Senior Management 董事及高級管理層 | | | | Management Discussion and An ...