IN CONSTRUCTION HOLDINGS LIMITED 現 恆 建 築 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) (Stock code 股份代號 : 1500) 2023/2024 ↑ ANNUAL REPORT 1 現恆建築控股有限公司 1 2023/2024 年報 Financial Summary 132 財務摘要 3 現恆建築控股有限公司 3 2023/2024 年報 PRINCIPAL BANKERS Bank of China (Hong Kong) Limited Wing Lung Bank Limited The Hongkong and Shanghai Banking Corporation Limited 註冊辦事處 Windward 3 Regatta Office Park PO Box 1350 Grand Cayman KY1-1108 Cayman Islands IN CONSTRUCTION HOLDINGS LIMITED ...

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佈的內容概不負責， 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佈全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：1500） 截至二零二四年三月三十一日止年度的 年度綜合業績公佈 年度綜合業績 現恆建築控股有限公司（「本公司」）董事會（「董事會」）欣然提呈本公司及其附屬公 司（統稱「本集團」）截至二零二四年三月三十一日止年度的年度綜合業績，連同截 至二零二三年三月三十一日止年度的比較數字如下： 1 綜合損益及其他全面收益表 | | | 二零二四年 | 二零二三年 | | --- | --- | --- | --- | | | 附註 | 千元 | 千元 | | 非流動負債 | | | | | 租賃負債 | | – | 65 | | 資產淨值 | | 261,580 | 274,435 | | 資本及儲備 | | | | | 股本 | | 8,300 | 8,300 | | 儲備 | | 253,280 | 266,135 | | 總權益 | | 261,580 | 274, ...

Financial Performance - Revenue for the six months ended September 30, 2023, was approximately HK$141.3 million, a decrease from HK$166.1 million in the same period of 2022[11]. - The Group recorded a gross loss of approximately HK$21.5 million, compared to a gross loss of HK$1.2 million in the corresponding period of 2022, resulting in a gross loss margin increase from 0.7% to 15.2%[24]. - The loss for the period increased by HK$18.9 million or 140% to HK$32.4 million, compared to HK$13.5 million in the prior year[25]. - For the six months ended September 30, 2023, the Group's revenue was approximately HK$141.3 million, a decrease from HK$166.1 million in the same period of 2022, representing a decline of about 14.9%[26]. - The five major projects contributed approximately HK$125.7 million to revenue, down from HK$157.2 million in the previous year, with the largest project accounting for 36.3% of total revenue[26]. - The Group recorded a gross loss of approximately HK$21.5 million, an increase of about HK$20.3 million from a gross loss of HK$1.2 million in the same period last year, resulting in a gross loss margin of 15.2%[26]. - The Group's loss for the period increased by 140% to HK$32.4 million, compared to HK$13.5 million in the same period last year[28]. - Loss from operations increased to HK$32.2 million, up from HK$13.3 million in the prior year, reflecting higher operational challenges[71]. - Total comprehensive loss for the period was HK$32.4 million, compared to a loss of HK$13.5 million in the same period last year[71]. - The company reported a basic and diluted loss per share of HK$3.90 for the six months ended September 30, 2023, compared to HK$1.62 in the previous year[71]. - For the six months ended 30 September 2023, the company reported a loss of HK$32,393,000, compared to a loss of HK$13,453,000 for the same period in 2022, indicating a significant increase in losses[76]. Project and Contract Information - Two new projects with an aggregate contract value of HK$642 million were awarded during the six months ended September 30, 2023[19]. - As of September 30, 2023, nine projects with an outstanding contract sum of HK$900.8 million were in progress[20]. - The top five projects contributed approximately HK$125.7 million in revenue, down from HK$157.2 million in the previous year, with the top project accounting for 36.3% of total revenue[23]. - The increase in gross loss was primarily due to provisions for liquidated and ascertained damages from unexpected delays in certain foundation projects[24]. - The Group's focus on private sector construction projects continues, with an emphasis on becoming the main contractor for design and build contracts[15]. Financial Position and Liquidity - As of September 30, 2023, the current ratio was 3.0, down from 3.8 as of March 31, 2023, while the gearing ratio decreased to 6.5% from 6.7%[30]. - The Group had cash and bank balances of approximately HK$76.7 million as of September 30, 2023, down from HK$112.0 million as of March 31, 2023[30]. - Current assets as of September 30, 2023, totaled HK$364.0 million, slightly down from HK$372.9 million as of March 31, 2023[73]. - Net current assets decreased to HK$241.7 million from HK$274.1 million, indicating a reduction in liquidity[73]. - Total equity as of September 30, 2023, was HK$242.0 million, down from HK$274.4 million as of March 31, 2023[74]. - Cash and cash equivalents at the end of the period decreased to HK$33,259,000 from HK$81,250,000 at the end of the same period last year, representing a decline of 59%[78]. - The total equity attributable to equity shareholders of the company decreased to HK$242,042,000 as of 30 September 2023, down from HK$301,211,000 a year earlier, a reduction of 19.6%[76]. - The company had cash generated from investing activities of HK$3,121,000 for the six months ended 30 September 2023, compared to HK$5,239,000 in the same period of 2022, a decrease of 40.4%[78]. - The company’s retained profits decreased to HK$194,241,000 as of 30 September 2023, down from HK$226,634,000 at the beginning of the period, a decline of 14.3%[76]. Corporate Governance and Management - The company emphasizes its commitment to high standards of corporate governance and transparency[57]. - The board believes that the current arrangement of having the same individual serve as both Chairman and CEO does not impair the balance of power and authority[58]. - The company has resolved not to pay any interim dividend for the six months ended September 30, 2023, consistent with the previous year[52]. - The company has not identified any significant events requiring disclosure after September 30, 2023[54]. - The remuneration of key management personnel for the six months ended September 30, 2023, was HK$3,141,000, a decrease of 15.1% from HK$3,702,000 in the same period of 2022[137]. Future Outlook - The Group expects a rebound in the foundation industry in the coming years due to increased land supply and infrastructure investments by the Hong Kong government[42]. - To maintain competitiveness, the Group plans to expand its capacity, enhance foundation design capabilities, and improve project management skills[43]. Audit and Compliance - The interim financial report was authorized for issue on 27 November 2023, and it is unaudited but reviewed by KPMG[88]. - The interim financial report for In Construction Holdings Limited as of September 30, 2023, has been reviewed and is in compliance with Hong Kong Accounting Standard 34[145]. - The report includes the consolidated statement of financial position, profit or loss, changes in equity, and cash flow for the six-month period ending September 30, 2023[145]. - No significant issues were identified that would indicate the interim financial report is not materially prepared according to the relevant standards[145]. - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, focusing on inquiries and analytical procedures[141]. - The directors are responsible for the preparation and presentation of the interim financial report[145]. - The report confirms that the financial information is accurate and reliable as of the review date[145]. - KPMG conducted the review and issued the report on November 27, 2023[147].

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佈的內容概不負責， 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佈全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：1500） 截至二零二三年九月三十日止六個月的 未經審核中期業績公佈 中期業績 現恆建築控股有限公司（「本公司」）董事會（「董事會」）欣然提呈本公司及其附屬公 司（統稱「本集團」）截至二零二三年九月三十日止六個月的未經審核綜合中期業績， 連同截至二零二二年同期的比較數字如下： ...

Financial Performance - The Group's revenue for the financial year 2022/23 was HK$332.4 million, down HK$129.8 million from FY21/22[29]. - Gross profit decreased to HK$5.2 million, a decline of HK$86.5 million compared to FY21/22[30]. - For the financial year 2022/23, the Group recorded a net loss of HK$15.3 million, compared to a profit of HK$74.3 million in the previous year[52][55]. - Revenue for the financial year 2022/23 was approximately HK$332.4 million, a decrease of HK$129.8 million from HK$462.2 million in 2021/22[50][51]. - Gross profit for the financial year 2022/23 was approximately HK$5.2 million, down from HK$91.7 million in the previous year, resulting in a gross profit margin decrease to 1.6% from 19.8%[51][53]. - Administrative and other operating expenses increased to approximately HK$22.3 million, primarily due to foreign exchange losses from Renminbi deposits[52][54]. Contracts and Projects - The Group was awarded 2 new contracts with an aggregate contract sum of HK$156.1 million, compared to 5 new contracts totaling HK$411.6 million in the previous financial year[16]. - The Group was awarded two new projects with a total contract value of HK$156.1 million during the financial year 2022/23[42][53]. - As of March 31, 2023, there were seven ongoing or yet-to-commence projects with an outstanding contract sum of HK$427.1 million[42][53]. - The top five projects contributed revenue of HK$316.2 million, with the largest project accounting for 46.4% of total revenue[50][51]. Operational Challenges - The adverse financial results were impacted by loss-making projects due to delays caused by adverse weather and other unforeseen difficulties[15]. - The Group experienced temporary manpower shortages due to COVID-19 infections among staff, which slowed down project progress[14]. - The management is seeking extensions for project completion from employers due to delays caused by uncontrollable factors[15]. - The Group faces risks related to construction delays and potential claims for damages, which could adversely impact financial performance[59][62]. - The Group's financial performance may be adversely affected if it is unable to secure new tenders or obtain new contract awards with comparable contract sums after completing existing contracts[66]. Strategic Focus - The Group aims to focus on "design and build" projects to maintain profit margins and safeguard shareholder interests moving forward[23]. - The Group's focus on design and build projects allows for more cost-efficient construction solutions[41][53]. - The management expressed confidence in the construction industry's resilience as the local economy gradually recovers from COVID-19[23]. - The Group expects a rebound in the foundation industry in the medium run due to government policies on land supply and infrastructure investments[98]. - The Group plans to expand capacity and enhance project management skills to maintain its competitive edge[98]. Leadership and Management - The company has a strong leadership team with extensive experience across various sectors of the construction and engineering industries[106]. - The company is focused on project management, quality control, and strategic development in the construction sector[105]. - The company aims to leverage its experienced management team to enhance operational efficiency and market competitiveness[108]. Financial Position - As of March 31, 2023, the current ratio improved to 4.3 from 3.8 in 2022[83]. - The gearing ratio decreased to 7.4% as of March 31, 2023, down from 6.7% in 2022, primarily due to the repayment of HK$5.0 million in lease liabilities[83]. - The Group's cash and bank balances were HK$112.0 million as of March 31, 2023, compared to HK$147.8 million in 2022, with HK$43.6 million being restricted bank balances[83]. - The Group had no bank overdrafts as of March 31, 2023, maintaining a light debt leverage[83]. - The capital structure consisted of equity of HK$274.4 million and debts of HK$18.3 million as of March 31, 2023[83]. Shareholder Information - The Group's reserves available for distribution to equity shareholders amounted to approximately HK$130,692,000 as of 31 March 2023[141]. - The Board has resolved not to declare a final dividend for the Financial Year 2022/23[128]. - The largest customer contributed 46.4% to the Group's sales, with the five largest customers combined accounting for 95.1%[189]. - The largest supplier accounted for 19.2% of the Group's purchases, while the five largest suppliers combined represented 59.6%[186]. Compliance and Governance - The Company has complied with all necessary registrations and certifications for its business operations in Hong Kong during the financial year 2022/2023[78]. - The Company has received annual confirmations of independence from all independent non-executive Directors[152]. - The independent non-executive directors have confirmed compliance with the non-competition agreements, with no known violations since their inception[171]. - The company has taken out insurance against liabilities and costs associated with defending proceedings against its directors[161]. - The controlling shareholders have declared compliance with the undertakings given under the non-competition agreements disclosed in the prospectus[170]. Employee Information - The Group had 53 full-time employees as of March 31, 2023, an increase from 51 in 2022[87]. - The Group has a low staff turnover rate of 5% in the project management team in 2023, indicating a stable workforce[74].

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佈的內容概不負責， 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佈全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：1500） 截至二零二三年三月三十一日止年度的 年度綜合業績公佈 年度綜合業績 現恆建築控股有限公司（「本公司」）董事會（「董事會」）欣然提呈本公司及其附屬公 司（統稱「本集團」）截至二零二三年三月三十一日止年度的年度綜合業績，連同截 至二零二二年三月三十一日止年度的比較數字如下： ...

Revenue and Profitability - Revenue for the six months ended 30 September 2022 was approximately HK$166.1 million, a decrease of approximately HK$185.0 million compared to HK$351.1 million in the corresponding period in 2021[14] - The Group recorded a gross loss of approximately HK$1.2 million, down from a gross profit of approximately HK$103.4 million in the same period last year, resulting in a gross loss margin of -0.7% compared to a gross profit margin of 29.5% in 2021[15] - The loss for the period was HK$13.5 million, compared to a profit of HK$78.6 million in the corresponding period of the previous year[16] - Revenue for the six months ended September 30, 2022, was approximately HK$166.1 million, a decrease from HK$351.1 million in the same period of 2021[17] - The group recorded a gross loss of approximately HK$1.2 million, down from a gross profit of HK$103.4 million in the previous year, resulting in a gross margin decline from 29.5% to a gross loss margin of 0.7%[17] - The group incurred a loss of HK$13.5 million for the period, compared to a profit of HK$78.6 million in the same period last year[19] - Total comprehensive loss for the period was HK$13,453,000, compared to a total comprehensive income of HK$78,589,000 in the same period of 2021[63] - Basic and diluted loss per share was HK$1.62, down from earnings of HK$9.47 per share in the previous year[63] Project and Contract Status - The top five projects contributed approximately HK$157.2 million in revenue, with the leading project accounting for 43.3% of total revenue[14] - As of 30 September 2022, six projects with an outstanding contract sum of HK$407.4 million were either in progress or had not yet commenced, with one project completed during the period[12] - The decrease in contract revenue was attributed to provisions for liquidated damages on certain foundation projects due to unexpected delays[15] - No new projects were awarded to the Group during the six months ended 30 September 2022[12] Financial Position and Ratios - The current ratio decreased to 3.4 as of September 30, 2022, from 4.3 as of March 31, 2022[21] - The gearing ratio improved to 6.9% as of September 30, 2022, down from 7.4% as of March 31, 2022, primarily due to the repayment of HK$2.5 million in lease liabilities[21] - Cash and bank balances were approximately HK$126.8 million as of September 30, 2022, compared to HK$147.8 million as of March 31, 2022[21] - Current assets decreased to HK$423,850,000 from HK$410,445,000 as of March 31, 2022[65] - Net current assets decreased to HK$300,765,000 from HK$314,172,000 as of March 31, 2022[65] - Total equity as of September 30, 2022, was HK$301,211,000, down from HK$314,664,000 as of March 31, 2022[67] Cash Flow and Financing - For the six months ended September 30, 2022, the net cash used in operating activities was HK$21,264,000, compared to HK$86,185,000 generated in the same period of 2021[22] - The net cash generated from investing activities was HK$5,239,000, a significant improvement from the net cash used of HK$1,295,000 in the prior year[22] - The net cash used in financing activities was HK$2,683,000, slightly lower than the HK$2,690,000 used in the same period of 2021[22] - Cash and cash equivalents at the end of the period were HK$81,250,000, down from HK$96,355,000 at the end of the same period in 2021[22] - The company reported a decrease in cash and cash equivalents of HK$18,708,000 for the six months ended September 30, 2022, compared to an increase of HK$82,200,000 in the prior year[22] Shareholding and Corporate Governance - As of September 30, 2022, Mr. Lau Pak Man holds a total of 337,520,000 shares, representing approximately 40.67% of the issued share capital of the Company[35] - Mr. Cheng Wing Cheong holds a total of 275,900,000 shares, representing approximately 33.24% of the issued share capital of the Company[35] - Ms. Kwan Kit Sum Kit holds a total of 337,520,000 shares, representing approximately 40.67% of the issued share capital of the Company[35] - The roles of chairman and chief executive officer are held by the same individual, Mr. Lau Pak Man, which deviates from the Corporate Governance Code[50] - The company has committed to maintaining an aggregate beneficial shareholding of not less than 50% by its controlling shareholders as part of its loan agreements[57] Operational Challenges and Future Outlook - The Group expects a rebound in the foundation industry in the coming years due to the Hong Kong government's commitment to increasing land supply and infrastructure investments[30] - The progress of some construction projects has been slowed down due to staff being quarantined during the COVID-19 pandemic, leading to temporary manpower shortages[30] - The Group will continue to assess the impact of the COVID-19 pandemic on its operational and financial aspects[30] - The Group aims to provide qualitative and flexible solutions to its customers to maintain its competitive edge[30] Compliance and Audit - The interim financial report for the six months ended September 30, 2022, has been reviewed by KPMG, ensuring compliance with relevant standards[54] - The interim financial report as of September 30, 2022, is prepared in accordance with Hong Kong Accounting Standard 34, with no material discrepancies noted[130] - KPMG conducted the review and found no issues that would affect the integrity of the financial report[132] Dividends and Shareholder Returns - The company has not declared any interim dividend for the six months ended September 30, 2022, compared to HK$0.03 for the same period in 2021[47] - The company did not declare any interim dividend for the six months ended September 30, 2022, compared to a dividend of 3 cents for the same period in 2021[113]

Contracts and Projects - The Group was awarded 5 new contracts with an aggregate contract sum of HK$411.6 million, compared to 4 new contracts with a total of HK$468.2 million in the previous financial year[19] - The ongoing projects faced delays due to COVID-19, resulting in manpower shortages and slow progress, particularly during the 4th and 5th waves of the pandemic[17] - The management is hopeful for time extensions on project completions due to unforeseen delays caused by the pandemic[18] - The Group continues to provide quality and flexible solutions to the construction industry, leveraging technical know-how and stringent quality control[16] - The Group undertook 16 projects contributing to revenue and gross profit, compared to 19 projects in the previous year[39] - As of March 31, 2022, seven projects with an outstanding contract sum of HK$569.2 million were either in progress or not yet commenced[35] - The increase in revenue and gross profit was attributed to projects undertaken during the year and recovery of certified variation orders for completed projects[39] - The Group's business relies on successful tenders for foundation works, with contract awards varying from year to year due to their non-recurring nature[42] - The Group faces risks related to construction progress, including potential damage to adjacent buildings, which could lead to additional costs and project delays[40] Financial Performance - For the financial year 2021/22, the group reported revenue of approximately HK$462.2 million, an increase of HK$83.4 million from the previous year[39] - Gross profit for the same period was approximately HK$91.7 million, up by HK$35.1 million compared to the previous year[39] - The gross profit margin improved to 19.8% in 2021/22 from 14.9% in 2020/21[29] - Profit before taxation increased by HK$40.6 million or 120.5% to HK$74.3 million for the financial year 2021/22[39] - Administrative and other operating expenses decreased by approximately HK$8.9 million to HK$18.8 million[39] - The top five projects contributed revenue of HK$423.6 million, with the largest project accounting for 54.3% of total revenue[39] - The Group's financial performance may be adversely affected if it fails to secure new tenders or contract awards after completing current contracts[43] - The Group's future growth and profitability are closely tied to the health of the property market and the construction industry in Hong Kong[44] Market Outlook - The Group aims to focus on "design and build" projects to maintain profit margins and safeguard shareholder interests as the economy is expected to recover[24] - The economic outlook for Hong Kong is optimistic with upcoming government projects expected to stimulate growth[24] - The Group expects a rebound in the foundation industry in the long run due to the Hong Kong government's commitment to increasing land supply and infrastructure investments[68] - The group anticipates a long-term recovery in the construction industry due to the Hong Kong government's increased land supply policy and commitment to infrastructure investment[70] - Despite intense competition in the Hong Kong construction sector, the board remains confident in the group's future net profit and operational scale growth, supported by its strong reputation and financial stability[70] Management and Governance - The management team has successfully built credibility and trust with existing and new customers despite the challenges posed by the pandemic[16] - The Group maintains a low staff turnover rate of 5% in the project management team for 2022, down from 9% in 2021, indicating a stable workforce[50] - The Group has established long-term relationships with customers and partners, with some relationships exceeding 10 years, which is crucial for its business model[49] - The Company is committed to achieving high standards of corporate governance and transparency[161] - The roles of chairman and chief executive officer are held by the same individual, which the board believes ensures consistent strategic planning[163] - The Board oversees major matters including policy formulation, overall strategies, and risk management systems, ensuring objective decision-making in the Company's interests[167] Shareholder Information - The Board proposes a final dividend of HK$0.03 per ordinary share for the year ended March 31, 2022, compared to HK$0 for the previous year[95] - As of March 31, 2022, the Company's reserves available for distribution to equity shareholders amounted to approximately HKD 1.5 billion[102] - The Company has not entered into any management contracts concerning the management and administration of its business during the financial year 2021/22[102] - The Company has taken out insurance against liabilities and costs associated with defending any proceedings against its Directors[116] - The Company has maintained compliance with the Listing Rules, ensuring at least three independent non-executive Directors, with one possessing appropriate professional qualifications[165] Risk Factors - The Group experienced difficulties with raw material shortages from Mainland China due to transportation issues during the pandemic[17] - The construction industry in Hong Kong is influenced by external factors such as government policies and economic conditions, which may impact future project availability[44] - The Group's ability to maintain its registrations is critical, as any failure could materially affect its business operations[40] - The ongoing COVID-19 pandemic has impacted construction projects, leading to manpower shortages and slower progress, but the Group has managed to redeploy staff to maintain project timelines[69] - The Group is committed to evaluating the ongoing impact of COVID-19 on its operations and finances, implementing preventive measures to mitigate its effects[70]

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides essential company details, including board composition, key management, auditors, and registered office information [Corporate Information](index=2&type=section&id=Corporate%20Information) This chapter details the company's fundamental information, including board members, key management roles, auditors, and principal business locations - The company's Board of Directors comprises executive directors Mr. Lau Pak Man, Mr. Cheng Wing Cheong, Ms. Kwan Kit Sum, and independent non-executive directors Mr. Leung Tsz Kin, Mr. Lam Chi Hung, and Mr. Yau Tsz Man[5](index=5&type=chunk) - The company's auditor is **KPMG**[5](index=5&type=chunk) [Financial Highlights](index=4&type=section&id=Highlights) This section presents key financial performance indicators, showcasing significant growth in revenue and profitability [Performance Highlights](index=4&type=section&id=Highlights) For the six months ended September 30, 2021, the company achieved robust financial growth, with revenue increasing by **38.9%** and gross profit margin significantly improving to **29.5%** Key Financial Performance Indicators | Metric | H1 FY2022 | H1 FY2021 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue (HKD million) | 351.1 | 252.7 | +38.9% | | Gross Profit (HKD million) | 103.4 | 37.6 | +175.0% | | Net Profit (HKD million) | 78.6 | 21.4 | +267.3% | | Earnings Per Share (HK cents) | 9.5 | 2.6 | +265.4% | | Gross Profit Margin | 29.5% | 14.9% | +14.6pp | [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's insights into the company's operational performance, financial position, and future outlook [Business and Financial Review](index=6&type=section&id=Business%20and%20Financial%20Review) During the period, the company focused on Hong Kong private sector foundation projects, achieving significant revenue growth of **38.9%** to **HKD 351.1 million** and a substantial increase in net profit by **267.3%** to **HKD 78.6 million** - The company's core business is foundation and related works in Hong Kong, focusing on **'design and build' projects** to enhance cost-effectiveness and competitiveness through alternative designs[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - As of September 30, 2021, the company had **5 ongoing projects** with an outstanding contract sum of **HKD 296.5 million**, with no new projects awarded during the reporting period[16](index=16&type=chunk) Key Financial Performance Comparison | Financial Metric | H1 FY2022 (HKD million) | H1 FY2021 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 351.1 | 252.7 | +98.4 | | Gross Profit | 103.4 | 37.6 | +65.8 | | Profit for the Period | 78.6 | 21.4 | +57.2 | | Gross Profit Margin | 29.5% | 14.9% | +14.6pp | - Administrative and other operating expenses decreased from **HKD 15.5 million** to **HKD 10.7 million**, primarily due to a **HKD 5.4 million** reduction in impairment losses on trade and other receivables and contract assets[19](index=19&type=chunk) [LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE](index=8&type=section&id=LIQUIDITY,%20FINANCIAL%20RESOURCES%20AND%20CAPITAL%20STRUCTURE) The company maintains a robust financial position with cash and bank balances significantly increasing to **HKD 141.7 million** as of September 30, 2021, supported by ample unutilized banking facilities Liquidity and Gearing Ratios | Metric | As of Sep 30, 2021 | As of Mar 31, 2021 | | :--- | :--- | :--- | | Current Ratio | 2.9 | 4.7 | | Gearing Ratio | 7.2% | 10.1% | - As of September 30, 2021, cash and bank balances significantly increased to approximately **HKD 141.7 million** from **HKD 56 million** as of March 31, 2021, with **HKD 45.3 million** being restricted bank deposits for project performance guarantees[24](index=24&type=chunk) [USE OF NET PROCEEDS FROM LISTING](index=10&type=section&id=USE%20OF%20NET%20PROCEEDS%20FROM%20LISTING) The company has largely utilized net proceeds from listing as planned for staff recruitment and equipment acquisition, with a minor delay in funds for performance guarantees Utilization of Net Proceeds from Listing | Intended Use | Intended Amount (HKD million) | Actual Utilization as of Sep 30, 2021 (HKD million) | | :--- | :--- | :--- | | Recruitment of additional staff | 2.9 | 2.9 | | Acquisition of additional machinery and equipment | 29.9 | 29.9 | | Financing for future project performance guarantees | 56.7 | 55.2 | - The utilization of net proceeds for performance guarantees has been delayed, now expected to be fully used by **March 31, 2022**, instead of the original **March 31, 2020**[27](index=27&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [FUTURE PROSPECTS](index=12&type=section&id=FUTURE%20PROSPECTS) Management is optimistic about the long-term recovery of Hong Kong's foundation industry, driven by government policies, and plans to enhance capacity and project management capabilities while mitigating COVID-19 impacts - Management anticipates a long-term recovery in the Hong Kong foundation industry, supported by government policies on increasing land supply and infrastructure investment[32](index=32&type=chunk) - The company will adhere to its business strategy of expanding capacity and strengthening foundation design and project management capabilities to provide quality, flexible solutions and maintain competitive advantage[32](index=32&type=chunk) - The company believes the **COVID-19 pandemic** has had a relatively low impact on the Hong Kong foundation industry but will continue to assess its operational and financial effects and implement precautionary measures[33](index=33&type=chunk) [Disclosure of Interests](index=12&type=section&id=Disclosure%20of%20Interests) This section details the shareholding interests of the company's directors, chief executives, and substantial shareholders [DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS IN SECURITIES](index=12&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTERESTS%20IN%20SECURITIES) This chapter discloses the shareholding interests of the company's directors and chief executives as of September 30, 2021, highlighting the significant control held by key executive directors Directors' and Chief Executives' Interests in Securities | Director's Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Lau Pak Man | Controlled corporation and personal interests | 337,520,000 | 40.67% | | Mr. Cheng Wing Cheong | Controlled corporation and personal interests | 275,900,000 | 33.24% | | Ms. Kwan Kit Sum | Controlled corporation and personal interests | 337,520,000 | 40.67% | [SUBSTANTIAL SHAREHOLDERS' INTERESTS IN SECURITIES](index=14&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20IN%20SECURITIES) This chapter details the shareholdings of substantial shareholders, including In Play Limited, Wealth Celebration Limited, and Kinetic Kingdom Limited, all wholly owned by the company's executive directors Substantial Shareholders' Interests in Securities | Name of Substantial Shareholder | Capacity | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | In Play Limited | Beneficial Owner | 270,000,000 | 32.53% | | Wealth Celebration Limited | Beneficial Owner | 270,000,000 | 32.53% | | Kinetic Kingdom Limited | Beneficial Owner | 60,000,000 | 7.23% | [Corporate Governance and Other Information](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the company's corporate governance practices, including interim dividend declaration and compliance with listing rules [INTERIM DIVIDEND](index=14&type=section&id=INTERIM%20DIVIDEND) The Board has resolved to declare an interim dividend of **HKD 0.03 per share**, a change from no dividend in the prior corresponding period - The Board resolved to declare an interim dividend of **HKD 0.03 per share**, compared to zero for the same period in **2020**[47](index=47&type=chunk) [CORPORATE GOVERNANCE](index=15&type=section&id=CORPORATE%20GOVERNANCE) The company maintains high corporate governance standards, largely complying with listing rules, with the Chairman and CEO roles held by the same individual, Mr. Lau Pak Man - The company complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are held by the same person, **Mr. Lau Pak Man**[51](index=51&type=chunk) - The company's banking facilities include specific performance clauses requiring controlling shareholders (Mr. Lau Pak Man, Mr. Cheng Wing Cheong, and Ms. Kwan Kit Sum) to collectively hold no less than **50%** of the equity, with one serving as Chairman[60](index=60&type=chunk)[63](index=63&type=chunk) [Financial Statements](index=17&type=section&id=Financial%20Statements) This section presents the company's consolidated financial statements, including the statement of profit or loss, financial position, cash flows, and accompanying notes [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=17&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended September 30, 2021, the company reported **HKD 351.1 million** in revenue, a **38.9%** increase, with net profit surging **267.3%** to **HKD 78.6 million** Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Item (HKD thousand) | For the six months ended Sep 30, 2021 | For the six months ended Sep 30, 2020 | | :--- | :--- | :--- | | Revenue | 351,066 | 252,739 | | Gross Profit | 103,361 | 37,578 | | Operating Profit | 94,136 | 25,609 | | Profit before tax | 93,826 | 25,078 | | Profit for the period | 78,589 | 21,351 | | Basic earnings per share (HK cents) | 9.47 | 2.57 | [Consolidated Statement of Financial Position](index=18&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2021, total assets reached **HKD 548.5 million**, with total equity increasing **28.3%** to **HKD 356.0 million**, driven by higher current assets Consolidated Statement of Financial Position Summary | Item (HKD thousand) | As of Sep 30, 2021 | As of Mar 31, 2021 | | :--- | :--- | :--- | | **ASSETS** | | | | Non-current assets | 8,545 | 10,704 | | Current assets | 539,906 | 351,812 | | **TOTAL ASSETS** | **548,451** | **362,516** | | **LIABILITIES AND EQUITY** | | | | Current liabilities | 184,644 | 74,814 | | Non-current liabilities | 7,846 | 10,330 | | **TOTAL LIABILITIES** | **192,490** | **85,144** | | **TOTAL EQUITY** | **355,961** | **277,372** | [Condensed Consolidated Cash Flow Statement](index=22&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) Net cash from operating activities significantly increased to **HKD 86.2 million**, resulting in a net increase of **HKD 82.2 million** in cash and cash equivalents for the period Condensed Consolidated Cash Flow Statement Summary | Item (HKD thousand) | For the six months ended Sep 30, 2021 | For the six months ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash from operating activities | 86,185 | 17,423 | | Net cash used in investing activities | (1,295) | (4,033) | | Net cash used in financing activities | (2,690) | (12,811) | | **Net increase in cash and cash equivalents** | **82,200** | **579** | | Cash and cash equivalents at beginning of period | 14,155 | 10,534 | | **Cash and cash equivalents at end of period** | **96,355** | **11,113** | [Notes to the Financial Statements](index=23&type=section&id=Notes%20to%20the%20Financial%20Statements) These notes provide detailed explanations of the financial statements, covering business segments, accounting policies, receivables and payables aging, cash balances, and contingent liabilities - The company's business is considered a single operating segment, with all operations conducted in **Hong Kong**[82](index=82&type=chunk) - As of September 30, 2021, net trade receivables amounted to **HKD 111.3 million**, with **HKD 98.8 million** aged within one month[109](index=109&type=chunk)[110](index=110&type=chunk) - As of September 30, 2021, trade payables significantly increased to **HKD 137.5 million** from **HKD 43.9 million** as of March 31, 2021[120](index=120&type=chunk) - The company has **HKD 80 million** in contingent liabilities, primarily for performance guarantees provided for projects in the ordinary course of business[127](index=127&type=chunk) [Review Report to the Board of Directors](index=31&type=section&id=Review%20Report%20to%20the%20Board%20of%20Directors) This section contains the independent auditor's review report on the interim financial information, providing an unmodified conclusion [Auditor's Review Report](index=31&type=section&id=Review%20Report%20to%20the%20Board%20of%20Directors) Independent auditor **KPMG** has reviewed the interim financial report, concluding that it is prepared in all material respects in accordance with **HKAS 34** without modification - Independent auditor **KPMG** reviewed the interim financial report in accordance with **Hong Kong Standard on Review Engagements 2410**[136](index=136&type=chunk) - The review conclusion is an **unmodified opinion**, indicating no material issues were found suggesting the financial report was not prepared in accordance with accounting standards[137](index=137&type=chunk)

IN CONSTRUCTION HOLDINGS LIMITED 現 恆 建 築 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) (Stock code 股份代號 : 1500) Annual Report 年報 現恆建築控股有限公司 2021 年報 1 Page╱頁次 Management Discussion and Analysis 7 管理層討論及分析 Biographies of Directors and Senior Management 18 董事及高級管理人員履歷 Directors' Report 22 董事會報告 Corporate Governance Report 33 企業管治報告 Independent Auditor's Report 49 獨立核數師報告 Consolidated Statement of Profit or Loss and Other Comprehensive Income 57 綜合損益及其他全面收益表 Consolidat ...