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 ...

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides details on the company's governance structure, including board members, committees, key personnel, and contact information [BOARD OF DIRECTORS](index=3&type=section&id=BOARD%20OF%20DIRECTORS) This chapter lists the company's board members, including executive and independent non-executive directors - Executive Directors include Liu Bowen, Zheng Rongchang, and Guan Jiexin[5](index=5&type=chunk) - Independent Non-executive Directors include Leung Tsz Kin, Lam Chi Hung, and Yau Tsz Man[5](index=5&type=chunk) [AUDIT COMMITTEE](index=3&type=section&id=AUDIT%20COMMITTEE) The Audit Committee members are responsible for overseeing the company's financial reporting and internal controls - Audit Committee members are Leung Tsz Kin, Lam Chi Hung, and Yau Tsz Man[5](index=5&type=chunk) [REMUNERATION COMMITTEE](index=3&type=section&id=REMUNERATION%20COMMITTEE) The Remuneration Committee is responsible for formulating and reviewing remuneration policies for directors and senior management - Remuneration Committee members are Yau Tsz Man, Guan Jiexin, and Leung Tsz Kin[5](index=5&type=chunk) [NOMINATION COMMITTEE](index=3&type=section&id=NOMINATION%20COMMITTEE) The Nomination Committee is responsible for evaluating board composition and nominating new directors - Nomination Committee members are Lam Chi Hung, Zheng Rongchang, and Yau Tsz Man[5](index=5&type=chunk) [AUTHORISED REPRESENTATIVES](index=3&type=section&id=AUTHORISED%20REPRESENTATIVES) The company's authorized representatives are Guan Jiexin and Wong Sin Yee - Authorized representatives are Guan Jiexin and Wong Sin Yee[5](index=5&type=chunk) [COMPANY SECRETARY](index=3&type=section&id=COMPANY%20SECRETARY) The company secretary is Wong Sin Yee - Company secretary is Wong Sin Yee[5](index=5&type=chunk) [AUDITOR](index=3&type=section&id=AUDITOR) The company's auditor is KPMG, a registered public interest entity auditor - Auditor is KPMG[5](index=5&type=chunk) [PRINCIPAL BANKERS](index=3&type=section&id=PRINCIPAL%20BANKERS) The company's principal bankers include Bank of China (Hong Kong) Limited, Wing Lung Bank Limited, and HSBC - Principal bankers include Bank of China (Hong Kong) Limited, Wing Lung Bank Limited, and The Hongkong and Shanghai Banking Corporation Limited[5](index=5&type=chunk) [REGISTERED OFFICE](index=4&type=section&id=REGISTERED%20OFFICE) The company's registered office is located in the Cayman Islands - Registered office is located at Windward 3, Regatta Office Park PO Box 1350 Grand Cayman KY1-1108, Cayman Islands[7](index=7&type=chunk) [HEADQUARTERS AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG](index=4&type=section&id=HEADQUARTERS%20AND%20PRINCIPAL%20PLACE%20OF%20BUSINESS%20IN%20HONG%20KONG) The company's headquarters and principal place of business in Hong Kong are located in Causeway Bay - Principal place of business in Hong Kong is located at 26/F, Parkview Centre, 5 Moreton Terrace, Causeway Bay, Hong Kong[7](index=7&type=chunk) [HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE](index=4&type=section&id=HONG%20KONG%20BRANCH%20SHARE%20REGISTRAR%20AND%20TRANSFER%20OFFICE) The Hong Kong branch share registrar and transfer office is Tricor Investor Services Limited - Hong Kong branch share registrar and transfer office is Tricor Investor Services Limited[7](index=7&type=chunk) [CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE](index=4&type=section&id=CAYMAN%20ISLANDS%20PRINCIPAL%20SHARE%20REGISTRAR%20AND%20TRANSFER%20OFFICE) The Cayman Islands principal share registrar and transfer office is Ocorian Trust (Cayman) Ltd - Cayman Islands principal share registrar and transfer office is Ocorian Trust (Cayman) Ltd[7](index=7&type=chunk) [WEBSITE](index=4&type=section&id=WEBSITE) The company's website is www.inconstruction.hk - Company website is www.inconstruction.hk[7](index=7&type=chunk) [STOCK CODE](index=4&type=section&id=STOCK%20CODE) The company's stock code on the Hong Kong Stock Exchange is 1500 - Hong Kong Stock Exchange stock code is **1500**[7](index=7&type=chunk) [Highlights](index=5&type=section&id=Highlights) This section presents a concise overview of the company's key financial performance indicators [Financial Highlights](index=5&type=section&id=Financial%20Highlights) The company achieved significant financial growth in the first half of 2020, with substantial increases in revenue, gross profit, and net profit, alongside improved gross profit margin | Indicator | H1 2021 (HK$ million) | H1 2020 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 252.7 | 188.6 | +64.1 | +34.0% | | Gross Profit | 37.6 | 14.8 | +22.8 | +154.1% | | Net Profit | 21.4 | 2.5 | +18.9 | +756.0% | | Earnings Per Share (HK cents) | 2.6 | 0.3 | +2.3 | +766.7% | | Gross Profit Margin | 14.9% | 7.8% | +7.1% | - | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operational performance, financial position, and future outlook [BUSINESS AND FINANCIAL REVIEW](index=6&type=section&id=BUSINESS%20AND%20FINANCIAL%20REVIEW) The Group primarily operates as a contractor in the Hong Kong foundation industry, focusing on design and build projects, with significant business and financial growth driven by new projects and cost-effective solutions - The Group primarily operates as a foundation industry contractor in Hong Kong, undertaking foundation and related works, including demolition, site formation, ground investigation, and general building works[10](index=10&type=chunk) - The company focuses on design and build projects, achieving cost-effectiveness through alternative designs to offer more competitive prices[10](index=10&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) For the six months ended September 30, 2020, the company secured one new project with a contract sum of HK$17.9 million and completed two existing projects, with seven projects ongoing and an uncompleted contract sum of HK$378.1 million at period-end - One new project was secured with a contract sum of **HK$17.9 million** for the six months ended September 30, 2020[11](index=11&type=chunk) - Two existing projects were completed during the period[11](index=11&type=chunk) - As of September 30, 2020, seven projects were ongoing, with an uncompleted contract sum of **HK$378.1 million**[11](index=11&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) For the six months ended September 30, 2020, the company's revenue, gross profit, and net profit all significantly increased, with a notable improvement in gross profit margin, primarily due to new projects and successful project extensions | Indicator | H1 2020 (HK$ million) | H1 2019 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 252.7 | 188.6 | +64.1 | +34.0% | | Gross Profit | 37.6 | 14.8 | +22.8 | +154.1% | | Net Profit | 21.4 | 2.5 | +18.9 | +756.0% | | Gross Profit Margin | 14.9% | 7.8% | +7.1% | - | - Administrative and other operating expenses increased by approximately **HK$3.0 million** to **HK$15.5 million**, primarily due to an increase of **HK$6.0 million** in impairment provision for trade and other receivables[14](index=14&type=chunk)[16](index=16&type=chunk) [LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE](index=9&type=section&id=LIQUIDITY,%20FINANCIAL%20RESOURCES%20AND%20CAPITAL%20STRUCTURE) As of September 30, 2020, the company's liquidity and gearing ratios improved, cash and bank balances increased, capital structure is sound, and it possesses sufficient unutilized bank facilities | Indicator | As of Sep 30, 2020 | As of Mar 31, 2020 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 3.2 | 3.0 | +0.2 | | Gearing Ratio | 11.3% | 17.2% | -5.9% | | Cash and Bank Balances (HK$ million) | 51.9 | 46.1 | +5.8 | | Restricted Bank Deposits (HK$ million) | 40.8 | 35.6 | +5.2 | - The gearing ratio decreased by **5.9%**, mainly due to the repayment of a **HK$10 million** bank loan[19](index=19&type=chunk) - As of September 30, 2020, the company had equity of **HK$270.0 million** and debt of **HK$30.5 million**[19](index=19&type=chunk) - The company has bank facilities of **HK$170.0 million**, of which **HK$129.4 million** remains unutilized and unrestricted[19](index=19&type=chunk) [EMPLOYEES](index=10&type=section&id=EMPLOYEES) As of September 30, 2020, the company had 50 full-time employees, offering competitive remuneration and benefits including salaries, performance bonuses, training, and provident funds - As of September 30, 2020, the company had **50 full-time employees**, consistent with March 31, 2020[21](index=21&type=chunk) - The company provides competitive remuneration and benefits based on market levels and employee performance, including salaries, performance bonuses, training, and provident funds[21](index=21&type=chunk) [CAPITAL COMMITMENTS](index=10&type=section&id=CAPITAL%20COMMITMENTS) As of September 30, 2020, the company had no capital commitments - As of September 30, 2020, the company had no capital commitments[21](index=21&type=chunk) [CHARGE ON GROUP ASSETS](index=10&type=section&id=CHARGE%20ON%20GROUP%20ASSETS) Except for charges disclosed in notes 9 and 10 to the financial statements, the company had no other significant charges on group assets as of September 30, 2020 - Except as disclosed in notes 9 and 10 to the financial statements, the company had no other significant charges on group assets as of September 30, 2020[21](index=21&type=chunk) [CONTINGENT LIABILITIES](index=10&type=section&id=CONTINGENT%20LIABILITIES) Except for contingent liabilities disclosed in note 17 to the financial statements, the company had no other contingent liabilities as of September 30, 2020 - Except as disclosed in note 17 to the financial statements, the company had no other contingent liabilities as of September 30, 2020[21](index=21&type=chunk) [SIGNIFICANT INVESTMENTS HELD, MATERIAL ACQUISITIONS OR DISPOSALS OF SUBSIDIARIES AND AFFILIATED COMPANIES, AND PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS](index=10&type=section&id=SIGNIFICANT%20INVESTMENTS%20HELD,%20MATERIAL%20ACQUISITIONS%20OR%20DISPOSALS%20OF%20SUBSIDIARIES%20AND%20AFFILIATED%20COMPANIES,%20AND%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20OR%20CAPITAL%20ASSETS) For the six months ended September 30, 2020, the company held no significant investments, made no material acquisitions or disposals of subsidiaries and affiliated companies, and had no other plans for material investments or capital assets - For the six months ended September 30, 2020, the company held no significant investments, nor made any material acquisitions or disposals of subsidiaries and affiliated companies[21](index=21&type=chunk) - As of September 30, 2020, the company had no other plans for material investments or capital assets[21](index=21&type=chunk) [USE OF NET PROCEEDS FROM LISTING](index=11&type=section&id=USE%20OF%20NET%20PROCEEDS%20FROM%20LISTING) The net proceeds from the company's listing were primarily allocated for hiring additional staff, acquiring machinery, and financing performance bonds for future projects, with some delays in utilization due to project requirements Use of Net Proceeds from Listing | Purpose | Planned Use (HK$ million) | Actual Use as of Sep 30, 2020 (HK$ million) | | :--- | :--- | :--- | | Recruitment of additional staff | 2.9 | 2.9 | | Acquisition of additional machinery and equipment | 29.9 | 29.9 | | Financing for issuing performance bonds for future projects | 56.7 | 51.3 | - Unutilized net proceeds for financing performance bonds for future projects, originally expected by March 31, 2020, were delayed as some projects did not require performance bonds or needed smaller amounts[28](index=28&type=chunk) - Unutilized net proceeds are expected to be used by March 31, 2022[23](index=23&type=chunk) [FUTURE PROSPECTS](index=12&type=section&id=FUTURE%20PROSPECTS) The company anticipates a long-term recovery in the Hong Kong foundation industry and plans to maintain competitiveness by expanding capacity, enhancing design and project management capabilities, and offering flexible solutions, while continuing to assess COVID-19 impacts - The company expects a long-term recovery in the foundation industry due to HKSAR Government policies on increasing land supply and infrastructure investment[30](index=30&type=chunk) - The company will maintain competitiveness by expanding capacity, enhancing foundation design and project management skills, and providing high-quality, flexible solutions[30](index=30&type=chunk) - The impact of the COVID-19 pandemic on the Hong Kong foundation industry is relatively low, but the company will continue to assess its effects and implement precautionary measures[30](index=30&type=chunk) [Disclosure of Interests](index=13&type=section&id=Disclosure%20of%20Interests) This section details the shareholdings of directors, chief executives, and substantial shareholders in the company's securities [DIRECTORS' AND CHIEF EXECUTIVES' INTEREST IN SECURITIES](index=13&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTEREST%20IN%20SECURITIES) As of September 30, 2020, the company's directors and chief executives held long positions in the company's shares, with Mr. Liu Bowen, Mr. Zheng Rongchang, and Ms. Guan Jiexin holding substantial shares through controlled corporations and spouse interests Directors' and Chief Executives' Interest in Securities | Director Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Liu Bowen | Interest in controlled corporation (In Play Limited) | 270,000,000 | 32.53% | | | Spouse's interest (Ms. Guan Jiexin) | 60,000,000 | 7.23% | | | Beneficial owner | 7,520,000 | 0.91% | | **Total** | | **337,520,000** | **40.67%** | | Mr. Zheng Rongchang | Interest in controlled corporation (Wealth Celebration Limited) | 270,000,000 | 32.53% | | | Beneficial owner | 5,900,000 | 0.71% | | **Total** | | **275,900,000** | **33.24%** | | Ms. Guan Jiexin | Interest in controlled corporation (Kinetic Kingdom Limited) | 60,000,000 | 7.23% | | | Spouse's interest (Mr. Liu Bowen) | 277,520,000 | 33.44% | | **Total** | | **337,520,000** | **40.67%** | | Mr. Yau Tsz Man | Beneficial owner | 2,970,000 | 0.36% | - Mr. Liu Bowen wholly owns **270 million shares** through In Play Limited and is deemed to own an additional **60 million shares** through his spouse, Ms. Guan Jiexin[34](index=34&type=chunk)[35](index=35&type=chunk)[38](index=38&type=chunk) - Mr. Zheng Rongchang wholly owns **270 million shares** through Wealth Celebration Limited[35](index=35&type=chunk)[38](index=38&type=chunk) - Ms. Guan Jiexin wholly owns **60 million shares** through Kinetic Kingdom Limited and is deemed to own an additional **277.52 million shares** through her spouse, Mr. Liu Bowen[36](index=36&type=chunk)[38](index=38&type=chunk) [SUBSTANTIAL SHAREHOLDERS' INTERESTS IN SECURITIES](index=14&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20IN%20SECURITIES) As of September 30, 2020, besides the directors, In Play Limited, Wealth Celebration Limited, and Kinetic Kingdom Limited were substantial shareholders holding significant long positions in the company's securities Substantial Shareholders' Interests in Securities | Substantial Shareholder Name | Capacity/Nature of Interest | Number of Shares | 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=15&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the company's corporate governance practices, dividend policy, and other relevant disclosures [INTERIM DIVIDEND](index=15&type=section&id=INTERIM%20DIVIDEND) The Board resolved not to declare an interim dividend for the six months ended September 30, 2020, consistent with the prior year - The Board resolved not to declare an interim dividend for the six months ended September 30, 2020 (2019: nil)[43](index=43&type=chunk)[46](index=46&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=15&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECU%20RITIES) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[44](index=44&type=chunk)[46](index=46&type=chunk) [EVENTS AFTER THE REPORTING PERIOD](index=15&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) As of the report date, the Board was not aware of any significant events after September 30, 2020, requiring disclosure - The Board is not aware of any significant events after September 30, 2020, up to the date of this report that require disclosure[42](index=42&type=chunk)[45](index=45&type=chunk) [CORPORATE GOVERNANCE](index=16&type=section&id=CORPORATE%20GOVERNANCE) The company is committed to high standards of corporate governance and complies with the Corporate Governance Code in Appendix 14 of the Listing Rules, noting that the Chairman and Chief Executive are the same person (Mr. Liu Bowen), which the company believes ensures strategic consistency, while the diverse background of independent non-executive directors and board composition provide sufficient independence - The company is committed to achieving high standards of corporate governance and complies with the Corporate Governance Code in Appendix 14 of the Listing Rules[50](index=50&type=chunk)[52](index=52&type=chunk) - The roles of Chairman and Chief Executive are combined and held by Mr. Liu Bowen, a deviation from Code Provision A.2.1, but the Board believes this arrangement ensures strategic consistency and continuous execution[51](index=51&type=chunk)[52](index=52&type=chunk) - The diverse background of independent non-executive directors and the board's composition with an equal number of independent non-executive and executive directors ensure a balance of power and independent decision-making[51](index=51&type=chunk)[52](index=52&type=chunk) [COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS](index=16&type=section&id=COMPLIANCE%20WITH%20THE%20MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules as its code of conduct for directors' dealings in the company's securities[53](index=53&type=chunk)[54](index=54&type=chunk) - All directors confirmed compliance with the Model Code for the six months ended September 30, 2020[53](index=53&type=chunk)[54](index=54&type=chunk) [REVIEW OF INTERIM RESULTS](index=17&type=section&id=REVIEW%20OF%20INTERIM%20RESULTS) The interim financial report for the six months ended September 30, 2020, was unaudited but reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410. The Audit Committee reviewed the Group's accounting principles, practices, and interim results and financial report - The interim financial report was unaudited but reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[55](index=55&type=chunk) - The Audit Committee reviewed the Group's accounting principles and practices, as well as the interim results and financial report for the six months ended September 30, 2020[55](index=55&type=chunk) [SPECIFIC PERFORMANCE OF CONTROLLING SHAREHOLDERS UNDER RULE 13.18 OF THE LISTING RULES](index=17&type=section&id=SPECIFIC%20PERFORMANCE%20OF%20CONTROLLING%20SHAREHOLDERS%20UNDER%20RULE%2013.18%20OF%20THE%20LISTING%20RULES) The company, as guarantor, and its indirect wholly-owned subsidiary, as borrower, entered into general banking and term loan facilities totaling HK$80 million and an installment loan of HK$25 million with a bank, requiring controlling shareholders Mr. Liu Bowen, Mr. Zheng Rongchang, and Ms. Guan Jiexin to maintain a combined beneficial interest of not less than 50% and one of them to remain as Chairman, with non-compliance constituting an event of default - The company entered into general banking and term loan facilities totaling **HK$80 million** and an installment loan of **HK$25 million** with a bank[55](index=55&type=chunk) - Controlling shareholders Mr. Liu Bowen, Mr. Zheng Rongchang, and Ms. Guan Jiexin committed to maintaining a combined beneficial interest of not less than **50%** of the company's issued share capital[55](index=55&type=chunk) - The financing agreement requires any one of Mr. Liu Bowen, Mr. Zheng Rongchang, and Ms. Guan Jiexin to remain as the company's Chairman[55](index=55&type=chunk) - Violation of these undertakings constitutes an event of default, allowing the lender to cancel or suspend facilities and demand repayment[55](index=55&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the company's financial performance, including revenue, expenses, and net profit for the period [Profit or Loss and Other Comprehensive Income](index=18&type=section&id=Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended September 30, 2020, the company experienced significant growth in revenue and profit, a notable improvement in gross profit margin, and a substantial increase in basic earnings per share Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | For the six months ended Sep 30, 2020 (HK$ thousand) | For the six months ended Sep 30, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 252,739 | 188,587 | | Direct costs | (215,161) | (173,808) | | Gross profit | 37,578 | 14,779 | | Other income | 3,576 | 1,152 | | Administrative and other operating expenses | (15,545) | (12,505) | | Operating profit | 25,609 | 3,426 | | Finance costs | (531) | (575) | | Profit before taxation | 25,078 | 2,851 | | Income tax | (3,727) | (322) | | Profit and total comprehensive income for the period | 21,351 | 2,529 | | Basic and diluted earnings per share (HK cents) | 2.57 | 0.30 | [Consolidated Statement of Financial Position](index=19&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This section provides a snapshot of the company's assets, liabilities, and equity at a specific point in time [Assets and Liabilities](index=19&type=section&id=Assets%20and%20Liabilities) As of September 30, 2020, the company's total assets less current liabilities and net assets both increased, with a significant rise in net current assets, indicating a robust financial position Consolidated Statement of Financial Position | Indicator | As of Sep 30, 2020 (HK$ thousand) | As of Mar 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 114 | 184 | | Lease receivables | 12,781 | 15,159 | | Deferred tax assets | 73 | 69 | | **Total non-current assets** | **12,968** | **15,412** | | **Current assets** | | | | Contract assets | 221,423 | 189,499 | | Inventories | 706 | 868 | | Lease receivables | 4,708 | 4,606 | | Trade and other receivables | 111,836 | 129,182 | | Tax recoverable | 598 | 4,187 | | Cash and bank balances | 51,873 | 46,125 | | **Total current assets** | **391,144** | **374,467** | | **Current liabilities** | | | | Contract liabilities | 1,563 | 4,027 | | Trade and other payables | 101,877 | 94,330 | | Lease liabilities | 4,715 | 4,615 | | Tax payable | 172 | 93 | | Bank loan – secured | – | 10,000 | | Loan from a shareholder | 13,000 | 13,000 | | **Total current liabilities** | **121,327** | **126,065** | | **Net current assets** | **269,817** | **248,402** | | **Total assets less current liabilities** | **282,785** | **263,814** | | **Non-current liabilities** | | | | Lease liabilities | 12,765 | 15,145 | | **Net assets** | **270,020** | **248,669** | | **Total equity** | **270,020** | **248,669** | [Consolidated Statement of Changes in Equity](index=21&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) This section illustrates the movements in the company's equity over the reporting period [Changes in Equity](index=21&type=section&id=Changes%20in%20Equity) For the six months ended September 30, 2020, the company's total equity significantly increased due to the profit and total comprehensive income for the period Consolidated Statement of Changes in Equity | Indicator | Share Capital (HK$ thousand) | Share Premium (HK$ thousand) | Capital Reserve (HK$ thousand) | Retained Profits (HK$ thousand) | Total Equity (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | As of April 1, 2020 | 8,300 | 75,453 | (35,952) | 200,868 | 248,669 | | Profit and total comprehensive income for the period | – | – | – | 21,351 | 21,351 | | As of September 30, 2020 | 8,300 | 75,453 | (35,952) | 222,219 | 270,020 | - As of September 30, 2020, the company's total equity increased from **HK$248,669 thousand** on April 1, 2020, to **HK$270,020 thousand**, primarily due to a profit of **HK$21,351 thousand** for the period[66](index=66&type=chunk) [Condensed Consolidated Cash Flow Statement](index=23&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) This section summarizes the cash inflows and outflows from operating, investing, and financing activities [Cash Flow Activities](index=23&type=section&id=Cash%20Flow%20Activities) For the six months ended September 30, 2020, the company's operating cash flow turned positive, investment cash outflow increased, and financing cash outflow significantly rose, resulting in a net increase in cash and cash equivalents Condensed Consolidated Cash Flow Statement | Indicator | For the six months ended Sep 30, 2020 (HK$ thousand) | For the six months ended Sep 30, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 17,423 | (26,416) | | Net cash (used in)/generated from investing activities | (4,033) | 4,240 | | Net cash (used in)/generated from financing activities | (12,811) | 20,373 | | Net increase/(decrease) in cash and cash equivalents | 579 | (1,803) | | Cash and cash equivalents at end of period | 11,113 | 7,033 | - Net cash inflow from operating activities was **HK$17,423 thousand**, a significant improvement from a net outflow of **HK$26,416 thousand** in the prior year[68](index=68&type=chunk) - Net cash outflow from financing activities was **HK$12,811 thousand**, primarily due to the repayment of a **HK$10,000 thousand** bank loan[68](index=68&type=chunk) [Notes to the Financial Statements](index=24&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [GENERAL INFORMATION](index=24&type=section&id=GENERAL%20INFORMATION) In Construction Holdings Limited and its subsidiaries primarily operate as foundation industry contractors in Hong Kong, incorporated in the Cayman Islands on September 29, 2014, and listed on the Stock Exchange on April 16, 2015 - The company primarily operates as a foundation industry contractor in Hong Kong[70](index=70&type=chunk) - The company was incorporated in the Cayman Islands on **September 29, 2014**, and listed on the Stock Exchange on **April 16, 2015**[70](index=70&type=chunk) [BASIS OF PREPARATION](index=24&type=section&id=BASIS%20OF%20PREPARATION) The interim financial report is prepared in accordance with applicable disclosure provisions of the Hong Kong Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA, and was reviewed by KPMG - The interim financial report is prepared in accordance with the Hong Kong Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[70](index=70&type=chunk) - The report was unaudited but reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[71](index=71&type=chunk)[75](index=75&type=chunk) [CHANGES IN ACCOUNTING POLICIES](index=25&type=section&id=CHANGES%20IN%20ACCOUNTING%20POLICIES) Revisions to Hong Kong Financial Reporting Standards issued by the HKICPA had no significant impact on the Group's results or financial position for the current period, and no new standards or interpretations not yet effective were applied - Revisions to Hong Kong Financial Reporting Standards issued by the HKICPA had no significant impact on the Group's results and financial position for the current accounting period[73](index=73&type=chunk)[76](index=76&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[73](index=73&type=chunk)[76](index=76&type=chunk) [REVENUE AND SEGMENT INFORMATION](index=25&type=section&id=REVENUE%20AND%20SEGMENT%20INFORMATION) Revenue represents construction contract revenue earned during the period, and as the chief operating decision-maker views the Group's business as a single operating segment solely in Hong Kong, no segment information is presented - Revenue represents construction contract revenue earned during the period[74](index=74&type=chunk) - The chief operating decision-maker views the Group's business as a single operating segment and operates solely in Hong Kong, thus no segment information is presented[74](index=74&type=chunk) [OTHER REVENUE](index=26&type=section&id=OTHER%20REVENUE) For the six months ended September 30, 2020, the company's other revenue significantly increased, primarily due to higher government grants and scrap sales Other Revenue | Item | For the six months ended Sep 30, 2020 (HK$ thousand) | For the six months ended Sep 30, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 210 | 335 | | Interest income from lease receivables | 457 | 503 | | Sales of scrap materials | 1,190 | 296 | | Government grants | 1,630 | – | | Others | 89 | 18 | | **Total** | **3,576** | **1,152** | - The company successfully applied for a **HK$1,630 thousand** subsidy under the HKSAR Government's Anti-epidemic Fund "Employment Support Scheme" to cover employee salaries[81](index=81&type=chunk)[82](index=82&type=chunk) [PROFIT BEFORE TAXATION](index=26&type=section&id=PROFIT%20BEFORE%20TAXATION) For the six months ended September 30, 2020, the company's profit before taxation significantly increased, driven by higher revenue and gross profit, despite an increase in impairment provision for trade and other receivables within administrative and other operating expenses Profit Before Taxation | Item | For the six months ended Sep 30, 2020 (HK$ thousand) | For the six months ended Sep 30, 2019 (HK$ thousand) | | :--- | :--- | :--- | | **Finance costs** | | | | Interest on bank overdrafts | 12 | 1 | | Interest on bank loans | 136 | 71 | | Interest on lease liabilities | 383 | 503 | | **Total finance costs** | **531** | **575** | | **Staff costs** | | | | Contributions to defined contribution retirement plans | 379 | 399 | | Salaries, wages and other benefits | 14,772 | 15,286 | | **Total staff costs** | **15,151** | **15,685** | | **Other items** | | | | Depreciation | 70 | 125 | | Lease charges for short-term leases | 596 | 596 | | Impairment provision for trade and other receivables | 6,115 | 120 | - Impairment provision for trade and other receivables significantly increased from **HK$120 thousand** in the prior year to **HK$6,115 thousand** in the current period[80](index=80&type=chunk) [INCOME TAX](index=27&type=section&id=INCOME%20TAX) For the six months ended September 30, 2020, the company's income tax provision significantly increased due to higher profits, with Hong Kong profits tax calculated at an estimated effective annual rate of 16.5%, and a two-tiered tax rate applicable to some subsidiaries Income Tax | Item | For the six months ended Sep 30, 2020 (HK$ thousand) | For the six months ended Sep 30, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Current tax: Hong Kong profits tax provision for the period | 3,731 | 331 | | Deferred tax: Origination and reversal of temporary differences | (4) | (9) | | **Total income tax** | **3,727** | **322** | - Hong Kong profits tax provision is calculated at an estimated effective annual tax rate of **16.5%**[88](index=88&type=chunk)[92](index=92&type=chunk) - A two-tiered profits tax rate applies to some subsidiaries, with the first **HK$2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[89](index=89&type=chunk)[92](index=92&type=chunk) [EARNINGS PER SHARE](index=27&type=section&id=EARNINGS%20PER%20SHARE) For the six months ended September 30, 2020, the company's basic earnings per share significantly increased to 2.57 HK cents, primarily due to a substantial rise in profit for the period, with no potential dilutive shares Earnings Per Share | Indicator | For the six months ended Sep 30, 2020 | For the six months ended Sep 30, 2019 | | :--- | :--- | :--- | | Profit attributable to equity shareholders of the company (HK$ thousand) | 21,351 | 2,529 | | Weighted average number of shares in issue | 830,000,000 | 830,000,000 | | Basic earnings per share (HK cents) | 2.57 | 0.30 | - There were no potential dilutive shares during the period, thus basic and diluted earnings per share are the same[90](index=90&type=chunk)[93](index=93&type=chunk) [TRADE AND OTHER RECEIVABLES](index=28&type=section&id=TRADE%20AND%20OTHER%20RECEIVABLES) As of September 30, 2020, the company's total trade and other receivables were HK$111,836 thousand, a decrease from HK$129,182 thousand as of March 31, 2020, with changes in the aging structure of trade receivables and HK$31,841 thousand in deposits pledged for performance bonds Trade and Other Receivables | Item | As of Sep 30, 2020 (HK$ thousand) | As of Mar 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | **Trade receivables (net of loss allowance)** | | | | Within 1 month | 6,824 | 12,965 | | 1 to 2 months | 11,288 | 38,288 | | 2 to 3 months | 12,092 | 5,076 | | Over 3 months | 13,678 | 1,240 | | **Subtotal** | **43,882** | **57,569** | | Deposits, prepayments and other receivables | 34,160 | 38,101 | | Retention receivables | 33,784 | 33,502 | | Amount due from a shareholder | 10 | 10 | | **Total** | **111,836** | **129,182** | - As of September 30, 2020, **HK$31,841 thousand** of deposits were pledged for performance bonds[96](index=96&type=chunk)[98](index=98&type=chunk) - Trade receivables are normally due within **14 to 30 days** from the invoice date[96](index=96&type=chunk)[98](index=98&type=chunk) [CASH AND BANK BALANCES](index=29&type=section&id=CASH%20AND%20BANK%20BALANCES) As of September 30, 2020, the company's total cash and bank balances were HK$51,873 thousand, of which HK$40,760 thousand were restricted bank deposits pledged for performance bonds and bank facilities Cash and Bank Balances | Item | As of Sep 30, 2020 (HK$ thousand) | As of Mar 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Cash and bank on hand | 11,113 | 10,534 | | Bank deposits | 40,760 | 35,591 | | **Cash and bank balances in the consolidated statement of financial position** | **51,873** | **46,125** | | Less: Restricted bank deposits | (40,760) | (35,591) | | **Cash and cash equivalents in the condensed consolidated cash flow statement** | **11,113** | **10,534** | - Restricted bank deposits are pledged to secure performance bonds and bank facilities[102](index=102&type=chunk)[103](index=103&type=chunk) [CONTRACT ASSETS AND CONTRACT LIABILITIES](index=29&type=section&id=CONTRACT%20ASSETS%20AND%20CONTRACT%20LIABILITIES) As of the reporting period end, all contract assets and contract liabilities respectively arose from the performance of construction contracts and advances received for construction contracts - All contract assets and contract liabilities arose from the performance of construction contracts and advances received for construction contracts, respectively[104](index=104&type=chunk)[105](index=105&type=chunk) [TRADE AND OTHER PAYABLES](index=30&type=section&id=TRADE%20AND%20OTHER%20PAYABLES) As of September 30, 2020, the company's total trade and other payables were HK$101,877 thousand, an increase from HK$94,330 thousand as of March 31, 2020, with changes in the aging structure of trade payables and a new amount payable to a shareholder Trade and Other Payables | Item | As of Sep 30, 2020 (HK$ thousand) | As of Mar 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | **Trade payables** | | | | Within 1 month | 42,257 | 38,166 | | 1 to 2 months | 7,608 | 13,377 | | 2 to 3 months | 13,187 | 4,498 | | Over 3 months | 23,013 | 29,998 | | **Subtotal** | **86,065** | **86,039** | | Other payables and accrued expenses | 14,984 | 8,291 | | Amount due to a shareholder | 828 | – | | **Total** | **101,877** | **94,330** | - As of September 30, 2020, the amount payable to a shareholder was unsecured, interest-free, and expected to be repaid within one year[107](index=107&type=chunk)[108](index=108&type=chunk) [BANK LOAN – SECURED](index=30&type=section&id=BANK%20LOAN%20–%20SECURED) As of September 30, 2020, the company had fully repaid its bank loan, which was HK$10,000 thousand as of March 31, 2020, secured by HK$13,500 thousand in bank deposits at an annual interest rate of 4.3% Bank Loan – Secured | Item | As of Sep 30, 2020 (HK$ thousand) | As of Mar 31, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Within one year or on demand | – | 10,000 | - The bank loan was fully repaid during the period ended September 30, 2020[110](index=110&type=chunk)[112](index=112&type=chunk) - The bank loan as of March 31, 2020, was secured by **HK$13,500 thousand** in bank deposits at an annual interest rate of **4.3%**[110](index=110&type=chunk)[112](index=112&type=chunk) [LOAN FROM A SHAREHOLDER](index=30&type=section&id=LOAN%20FROM%20A%20SHAREHOLDER) The shareholder loan is unsecured, interest-free, and repayable with two months' prior notice - The shareholder loan is unsecured, interest-free, and repayable with two months' prior notice[111](index=111&type=chunk)[112](index=112&type=chunk) [DIVIDENDS](index=31&type=section&id=DIVIDENDS) The Board resolved not to declare an interim dividend for the six months ended September 30, 2020, consistent with the prior year - The Board resolved not to declare an interim dividend for the six months ended September 30, 2020 (2019: nil)[114](index=114&type=chunk)[120](index=120&type=chunk) [FAIR VALUES MEASUREMENT OF FINANCIAL INSTRUMENTS](index=31&type=section&id=FAIR%20VALUES%20MEASUREMENT%20OF%20FINANCIAL%20INSTRUMENTS) As of September 30, 2020, and March 31, 2020, there were no significant differences between the carrying amounts and fair values of the company's financial instruments measured at amortized cost - As of September 30, 2020, and March 31, 2020, there were no significant differences between the carrying amounts and fair values of the company's financial instruments measured at amortized cost[113](index=113&type=chunk)[120](index=120&type=chunk) [CONTINGENT LIABILITIES](index=31&type=section&id=CONTINGENT%20LIABILITIES) As of September 30, 2020, the company had contingent liabilities of HK$94,207 thousand for performance bonds related to its subsidiaries' projects, an increase from HK$87,587 thousand as of March 31, 2020 - As of September 30, 2020, the company had contingent liabilities of **HK$94,207 thousand** for performance bonds (March 31, 2020: **HK$87,587 thousand**)[115](index=115&type=chunk)[120](index=120&type=chunk) - Performance bonds are expected to be released according to the terms of each construction contract[115](index=115&type=chunk)[120](index=120&type=chunk) [MATERIAL RELATED PARTY TRANSACTIONS](index=31&type=section&id=MATERIAL%20RELATED%20PARTY%20TRANSACTIONS) During the reporting period, the company engaged in material related party transactions, including key management personnel compensation and rental expenses paid to an associated company, which the Board considers to be in the ordinary course of business Material Related Party Transactions | Item | For the six months ended Sep 30, 2020 (HK$ thousand) | For the six months ended Sep 30, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Key management personnel compensation | 2,921 | 3,367 | | Rental expenses paid to an associated company | 596 | 596 | - The Board considers the related party transactions to be entered into in the ordinary course of business[116](index=116&type=chunk)[121](index=121&type=chunk) [Review Report to the Board of Directors](index=32&type=section&id=Review%20Report%20to%20the%20Board%20of%20Directors) This section presents the independent review report on the interim financial information [INTRODUCTION](index=32&type=section&id=INTRODUCTION) KPMG reviewed In Construction Holdings Limited's interim financial report for the six months ended September 30, 2020, which includes the consolidated statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and condensed consolidated cash flow statement, with directors responsible for its preparation under HKAS 34 - KPMG reviewed the interim financial report for the six months ended September 30, 2020[123](index=123&type=chunk) - Directors are responsible for preparing and presenting the interim financial report in accordance with Hong Kong Accounting Standard 34[123](index=123&type=chunk) [SCOPE OF REVIEW](index=32&type=section&id=SCOPE%20OF%20REVIEW) KPMG conducted the review in accordance with Hong Kong Standard on Review Engagements 2410, which has a narrower scope than an audit, thus providing no assurance of detecting all material matters and no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries of personnel responsible for financial and accounting matters, and analytical and other review procedures[123](index=123&type=chunk) - The scope of a review is substantially less than an audit conducted in accordance with Hong Kong Standards on Auditing, therefore no audit opinion is expressed[123](index=123&type=chunk) [CONCLUSION](index=33&type=section&id=CONCLUSION) Based on the review, KPMG found no matters suggesting that the interim financial report for the six months ended September 30, 2020, was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - KPMG found no matters that lead them to believe the interim financial report for the six months ended September 30, 2020, was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[124](index=124&type=chunk)[125](index=125&type=chunk)