Financial Performance - For the year ended March 31, 2022, the Group's revenue was approximately HK$141.7 million, an increase of 32.8% from approximately HK$106.7 million in 2021[9] - The Group recorded a net loss of approximately HK$1.5 million for the year, significantly improved from a net loss of approximately HK$6.5 million in the previous year[10] - Gross profit for the year was approximately HK$39.6 million, an increase of approximately HK$0.6 million, or 1.5%, from approximately HK$39.0 million for the previous year[34] - The gross profit margin decreased to approximately 27.9% for the year, down from approximately 36.6% for the year ended 31 March 2021[34] - The Group recorded a net other gain of approximately HK$2.4 million for the Year, compared to a net other loss of approximately HK$3.7 million for the year ended 31 March 2021[38] - Selling and distribution expenses increased by approximately HK$1.1 million, or 17.5%, to approximately HK$7.4 million for the Year, primarily due to increased freight, transportation, and storage costs[44] - Administrative expenses decreased by approximately HK$0.8 million, or 2.2%, to approximately HK$35.8 million for the Year, mainly due to reduced staff costs and maintenance expenses[45] - The Group's revenue increased by approximately HK$35.0 million, or 32.8%, to approximately HK$141.7 million for the year, compared to approximately HK$106.7 million for the year ended 31 March 2021[25] Revenue Breakdown - Revenue from Hong Kong contributed approximately HK$128.9 million, accounting for about 91.0% of total revenue, compared to 93.1% in 2021[18] - Revenue from Macau increased to approximately HK$8.7 million, representing 6.1% of total revenue, up from 4.3% in 2021[19] - Revenue from the manufacturing and trading of DTH rockdrilling tools contributed approximately 82.1% of total revenue, down from approximately 89.0% in the previous year[23] - Revenue from trading of piling and drilling machineries accounted for approximately 7.1% of total revenue, up from approximately 2.6% in the previous year[24] - Revenue from trading of rockdrilling equipment accounted for approximately 10.8% of total revenue, up from approximately 8.3% in the previous year[24] Market Conditions - The improvement in the business environment in Hong Kong was attributed to a higher level of construction works and projects available during the year[9] - Increased competition in the Hong Kong market has exerted price pressure on products, leading to a decrease in gross profit margin[17] - The international market showed slight improvement, contributing positively to the Group's revenue as local and international customers increased their purchases[17] - The improvement in revenue was primarily due to a better business environment in Hong Kong, leading to increased construction activities[33] - The Group is cautiously optimistic about the future of the construction market in Hong Kong and internationally, aiming to capture business opportunities in Hong Kong, Macau, and overseas markets[53] Financial Position - As of 31 March 2022, the Group's total cash and cash equivalents amounted to approximately HK$64.6 million, a decrease from approximately HK$87.4 million as of 31 March 2021[56] - The gearing ratio as of 31 March 2022 was approximately 17.7%, down from approximately 18.7% as of 31 March 2021, primarily due to a decrease in lease liabilities[58] - The Group had no bank borrowings as of March 31, 2022, with other borrowings remaining at approximately HK$20.0 million[57] - The Group is comfortable with its current financial and liquidity position, maintaining a reasonable liquidity buffer[69] Corporate Governance - The Company focuses on maintaining high standards of corporate governance to enhance shareholder value and protect their interests[96] - The Board comprises two Executive Directors and three Independent Non-executive Directors, ensuring compliance with Listing Rules regarding board composition[104][105] - The Company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all Directors throughout the year[103] - The Board is responsible for determining the operational plan and investment proposals of the Company, including the annual financial budget proposal[111] - The Company must notify the Stock Exchange at least seven working days before meetings where dividends or profit resolutions are discussed[117] Board and Committees - The Board held a total of 11 meetings during the year, with attendance rates for individual directors ranging from 64% to 100%[121] - The Audit and Compliance Committee held 4 meetings during the year, with a 100% attendance rate for all members[138] - The Remuneration Committee conducted 2 meetings during the year, with Ms. Lam Hoi Yu Nicki and Mr. Yiu To Wa achieving a 100% attendance rate[148] - The Nomination Committee consists of three members, all of whom are Independent Non-executive Directors, with Mr. Lau Leong Yuen serving as the chairman[154] - The Company has established three board committees: Audit and Compliance Committee, Remuneration Committee, and Nomination Committee, to delegate responsibilities effectively[132] Risk Management - The Group's risk management framework follows the COSO Enterprise Risk Management — Integrated Framework, allowing effective risk management[175] - The Group has identified principal risks classified into compliance risks, financial risks, operational risks, and strategic risks, with no significant risks identified in compliance and financial categories[180] - The Group adopts a "three lines of defence model" for corporate governance, with risk management monitoring conducted by the finance team and independent internal audit functions outsourced[189] - The risk management framework is evaluated at least annually, ensuring proactive management of identified risks[190] - The Group will continue to engage external independent professionals annually to review and enhance its internal control and risk management systems[191] Use of Proceeds - The net proceeds from the public offer were approximately HK$88.3 million, intended for various corporate purposes[77] - As of May 31, 2022, the Group had approximately HK$8.0 million of unutilized net proceeds, with allocations for overseas exhibitions and promotions, manpower increase, and office rental[78] - The unutilized net proceeds for overseas exhibitions and promotions were not utilized due to cancellations caused by the COVID-19 pandemic[85] - The Board resolved to reallocate approximately HK$8.0 million of unutilised net proceeds originally assigned for overseas exhibitions and promotions to fund working capital and other general corporate purposes[89] Employee and Remuneration - The Group had approximately 80 employees, a decrease from approximately 88 employees as of March 31, 2021[92] - The Group's remuneration policy is periodically reviewed, with employee benefits including discretionary bonuses and retirement plans for employees in Hong Kong and the PRC[92] - The performance evaluation standards for Directors and senior management are established by the Remuneration Committee to ensure accountability[144]

Financial Statements and Compliance - The condensed consolidated financial statements as of September 30, 2021, were reviewed, ensuring compliance with HKAS 34[10] - The Group's financial position includes a condensed consolidated statement of profit or loss for the six-month period ended September 30, 2021[10] - The review did not identify any issues that would suggest the financial statements were not prepared in accordance with HKAS 34[16] - Comparative financial data for the six-month period ended September 30, 2020, was extracted from previously reviewed statements, confirming consistency in reporting[17] - The Group's financial statements for the year ended March 31, 2021, were audited and expressed an unmodified opinion by the same auditor[17] - The report was prepared by Baker Tilly Hong Kong Limited, ensuring independent review and compliance with relevant standards[20] - The financial statements include comprehensive income and cash flow statements for the specified periods, reflecting the Group's operational performance[10] - The Group's management is responsible for the preparation and presentation of the financial statements, highlighting accountability in financial reporting[10] - The review process involved inquiries and analytical procedures, indicating a thorough examination of financial data[11] - The report was issued on November 24, 2021, providing timely insights into the Group's financial health[20] Revenue and Profitability - Revenue for the six months ended September 30, 2021, was HK$81,088,000, representing an increase of 43.5% compared to HK$56,602,000 in the same period of 2020[21] - Gross profit decreased to HK$17,991,000, down 31.2% from HK$26,208,000 year-on-year[21] - Loss for the period was HK$660,000, compared to a profit of HK$7,261,000 in the previous year, indicating a significant decline[21] - Total comprehensive income for the period was a loss of HK$526,000, compared to a gain of HK$9,675,000 in the same period last year[21] - Basic earnings per share decreased to 1.97 HK cents from 16 HK cents, reflecting the downturn in profitability[21] - For the six months ended September 30, 2021, the profit attributable to owners of the Company was HK$594,000, a decrease of 92.1% compared to HK$7,492,000 for the same period in 2020[72] Assets and Liabilities - Current assets totaled HK$202,948,000, a decrease from HK$210,850,000 as of March 31, 2021[24] - Current liabilities decreased to HK$32,324,000 from HK$40,156,000, improving the company's liquidity position[24] - Non-current assets amounted to HK$26,762,000, down from HK$28,243,000 as of March 31, 2021[24] - The company's equity attributable to owners increased slightly to HK$149,259,000 from HK$148,869,000[24] - As of 30 September 2021, trade receivables increased to HK$39,443,000 from HK$32,735,000 as of 31 March 2021, reflecting a growth of approximately 20.8%[80] - The allowance for credit losses rose to HK$3,165,000 from HK$2,475,000, indicating an increase of about 27.8%[80] - The Group's trade payables decreased significantly from HK$9,358,000 as of 31 March 2021 to HK$2,476,000 as of 30 September 2021, a reduction of approximately 73.6%[87] Cash Flow and Investments - Operating cash flows before movements in working capital were HK$2,424,000, a decrease from HK$11,804,000 in the prior year[28] - The net cash generated from operating activities was HK$692,000, contrasting with a net cash used of HK$7,473,000 in the previous year[28] - The company reported a net cash used in investing activities of HK$95,000, compared to HK$671,000 in the previous year[28] - The repayment of lease liabilities amounted to HK$838,000, slightly increasing from HK$804,000 in the prior year[28] - Cash and cash equivalents at the end of the period were HK$86,729,000, down from HK$92,556,000 at the end of the previous period[28] Market Performance and Strategy - The company is primarily engaged in manufacturing and trading down-the-hole rock drilling tools, piling and drilling machinery, and rock drilling equipment[39] - The Macau market showed signs of improvement with increased revenue contributions during the reporting period[102] - The Group's revenue increased during the reporting period due to higher purchases from local customers, despite a decrease in gross profit margin due to price pressure[101] - The Group remains cautiously positive about the future of the construction market in Hong Kong and internationally, aiming to capture business opportunities in various markets[123] - The Group anticipates continued improvement in the approval of public works project budgets, subject to the COVID-19 pandemic situation[122] Shareholder Information - As of September 30, 2021, Colour Shine holds 188,192,000 shares, representing approximately 49.52% of the total issued share capital of the company[181] - Mr. Huang Shixin owns 27,304,000 shares, which is about 7.19% of the total issued share capital[181] - Mr. Chan Leung Choi holds 19,188,000 shares, accounting for approximately 5.05% of the total issued share capital[181] - The board of directors did not recommend the distribution of an interim dividend for the reporting period[175] Future Outlook and Developments - The company provided a positive outlook, projecting a revenue growth of 10-15% for the next fiscal year[188] - New product development includes the launch of a next-generation drilling equipment expected to increase market share by 5%[188] - The company plans to expand into Southeast Asia, targeting a market size of approximately HK$200 million[188] - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase revenue by 8%[188] - The company is investing HK$30 million in technology upgrades to improve efficiency and reduce costs by 10%[188] Compliance and Governance - The Audit and Compliance Committee reviewed the unaudited condensed consolidated financial statements and confirmed adequate disclosures were made[168] - The company emphasizes its commitment to compliance with local regulations in its operational jurisdictions[189]

Financial Performance - For the year ended March 31, 2021, the Group's revenue was approximately HK$106.7 million, a decrease of 40.2% from approximately HK$178.6 million in 2020[11]. - The Group recorded a net loss of approximately HK$6.5 million for the year, compared to a net profit of approximately HK$20.9 million for the year ended March 31, 2020[12]. - Revenue decreased by approximately HK$71.9 million, or 40.3%, to approximately HK$106.7 million for the Year, down from approximately HK$178.6 million for the year ended 31 March 2020[30]. - Gross profit decreased by approximately HK$27.4 million, or 41.3%, to approximately HK$39.0 million for the Year, with a gross profit margin of approximately 36.6%[38]. - Total comprehensive income for the year resulted in a loss of approximately HK$1.7 million, compared to a gain of approximately HK$18.0 million in the previous year[35]. Revenue Sources - Revenue generated from Hong Kong contributed approximately HK$99.3 million, accounting for about 93.1% of total revenue during the year, down from 95.1% in 2020[22]. - Revenue from the manufacturing and trading of DTH rockdrilling tools accounted for approximately 89.0% of total revenue during the Year, up from approximately 80.8% in the previous year[30]. - Revenue generated from Macau increased to approximately HK$4.6 million, contributing approximately 4.3% of total revenue, compared to approximately HK$2.9 million and 1.6% in the previous year[26]. - Revenue from the Scandinavia region decreased to approximately HK$2.0 million, representing approximately 1.9% of total revenue, down from approximately HK$3.2 million and 1.8% in the previous year[27]. - Revenue from trading of piling and drilling machineries contributed approximately 2.6% of total revenue, down from approximately 9.9% in the previous year[29]. - Revenue from trading of rockdrilling equipment accounted for approximately 8.3% of total revenue, a decrease from approximately 9.3% in the previous year[31]. Market Conditions - The stagnant market environment in Hong Kong was attributed to a slowdown in public works budget approvals due to the COVID-19 pandemic, leading to fewer construction projects[21]. - The overall construction activity in Hong Kong was at a comparatively lower level, impacting the demand for the Group's products[11]. - The business environment in Hong Kong remained stagnant, leading to lower demand for products due to reduced construction works and projects[37]. Strategic Focus - The Group plans to focus on the manufacturing and trading of down-the-hole (DTH) rockdrilling tools and aims to strengthen its presence in overseas markets[13]. - The Group intends to allocate more resources towards the development of its DTH rockdrilling tools business to maximize long-term returns for shareholders[13]. - The Group's management remains cautious about market prospects while focusing on core business operations[13]. Financial Position - As of 31 March 2021, total cash and cash equivalents amounted to approximately HK$87.4 million, a decrease from approximately HK$101.4 million as of 31 March 2020[55]. - The Group had no bank borrowings as of 31 March 2021, with other borrowings remaining at approximately HK$20.0 million, at a fixed interest rate of 1.0%[56]. - The gearing ratio as of 31 March 2021 was approximately 18.7%, slightly down from 19.3% as of 31 March 2020[57]. - The group maintained a comfortable financial and liquidity position, with no bank borrowings as of March 31, 2021, and deposits of approximately HK$4.7 million pledged to secure banking facilities[68][69]. Corporate Governance - The Company has adopted the Corporate Governance Code and has complied with most provisions, except for Code Provisions A.2.1 and A.4.1[88]. - The Board consists of at least three Independent Non-executive Directors, representing at least one-third of the Board, in compliance with Listing Rules[96]. - The Audit and Compliance Committee consists of three independent non-executive directors, responsible for overseeing financial reporting and internal control systems[119]. - The Company has established procedures for the appointment of directors, with terms set at three years[110]. - The Company emphasizes meritocracy in Board appointments while considering diversity perspectives[149]. Risk Management - The Group has established an enterprise risk management framework, with the Board responsible for maintaining effective internal controls and management tasked with implementing these systems[162]. - Principal risks identified include financial risks such as foreign exchange rate risk, operational risks related to sales and purchases concentration, and strategic risks from reduced market demand[167]. - The effectiveness of the risk management framework is evaluated at least annually, with periodic management meetings to update risk monitoring progress[174]. - The Group will continue to engage external independent professionals for annual reviews of its internal controls and risk management systems[179]. Employee Information - As of March 31, 2021, the company had issued share capital of HK$38 million and 380 million ordinary shares, with no changes in the statutory and issued share capital during the year[62]. - As of March 31, 2021, the group had approximately 88 employees, a decrease from approximately 104 employees in 2020[83]. Shareholder Communication - The Company values effective communication with shareholders and maintains a website for public access to business operations and financial information[196]. - The annual general meeting serves as a platform for direct communication between the Board and shareholders, with separate resolutions proposed for each issue[197]. - The Company will handle shareholder inquiries in a timely and appropriate manner[194].

Financial Statements and Compliance - The condensed consolidated financial statements as of September 30, 2020, were reviewed and found to be in compliance with HKAS 34[9] - The report covers the financial position and performance for the six-month period ending September 30, 2020[9] - The company is responsible for the preparation and presentation of the financial statements[9] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[10] - No significant matters were identified that would lead to a belief that the financial statements were not prepared in all material respects according to HKAS 34[14] - The audit was performed by Deloitte Touche Tohmatsu, a certified public accountant firm[16] - The interim report was published on November 25, 2020[16] Revenue and Profit Performance - Revenue for the six months ended September 30, 2020, was HK$56,602,000, a decrease of 51.4% compared to HK$116,667,000 in 2019[17] - Gross profit for the same period was HK$26,208,000, down 38.7% from HK$42,843,000 in 2019[17] - Profit for the period was HK$7,261,000, a decline of 64.8% from HK$20,586,000 in the previous year[17] - Total comprehensive income for the period was HK$9,675,000, compared to HK$17,799,000 in 2019, reflecting a decrease of 45.3%[17] - Basic earnings per share decreased to 1.97 HK cents from 4.23 HK cents, representing a decline of 53.5%[17] - Profit before tax for the six months ended September 30, 2020, was HK$9,271,000, a decrease of 63.7% compared to HK$25,591,000 in the same period of 2019[21] - The overall profit before tax for the six months ended September 30, 2020, was HK$9,271,000, compared to HK$25,591,000 for the same period in 2019, reflecting a decline of 63.7%[50][53] Assets and Liabilities - Current assets increased to HK$226,007,000 as of September 30, 2020, up from HK$208,258,000 at March 31, 2020[18] - Inventories rose significantly to HK$67,550,000 from HK$50,448,000, indicating a 33.9% increase[18] - Net current assets improved to HK$182,758,000, compared to HK$172,498,000 at the end of March 2020[18] - Total assets less current liabilities increased to HK$211,279,000 from HK$202,442,000[18] - Equity attributable to owners of the Company rose to HK$159,095,000 from HK$149,975,000, reflecting an increase of 6.8%[18] Cash Flow and Financing - Operating cash flows before movements in working capital decreased to HK$11,804,000 from HK$27,695,000, reflecting a decline of 57.5%[21] - Net cash used in operating activities was HK$7,473,000, compared to a net cash inflow of HK$10,119,000 in the previous year[21] - Cash and cash equivalents at the end of the period were HK$92,556,000, down from HK$101,421,000 at the beginning of the period[21] - The Group did not raise any new bank borrowings during the period, compared to HK$6,389,000 raised in the previous year[21] - Interest paid decreased to HK$326,000 from HK$1,539,000, indicating a reduction in financing costs[21] Market Environment and Business Impact - The business environment in Hong Kong was stagnant, leading to a reduction in revenue due to fewer construction projects available in the market[24] - The Group's financial performance was negatively impacted by the slowdown in public works budget approvals due to the COVID-19 pandemic[24] - The market environment in Hong Kong remains stagnant, with no public works budget approved by the Finance Committee since the commencement of the LegCo year 2020–21[123] - The approval process for public works project budgets is expected to remain sluggish for the remainder of the year due to the ongoing COVID-19 pandemic[130] - The Group remains cautious about the future of the construction market in Hong Kong and internationally, while continuing to seek business opportunities in Hong Kong, Macau, and overseas markets[131] Segment Performance - Revenue from manufacturing and trading of DTH rockdrilling tools was HK$49,639,000, down 47.4% from HK$94,215,000 in the previous year[41][53] - Trading of piling and drilling machineries generated revenue of HK$2,808,000, a decline of 80.1% from HK$14,096,000 in the prior period[41][53] - Trading of rockdrilling equipment revenue was HK$4,155,000, down 50.2% from HK$8,356,000 year-over-year[41][53] - The segment result for manufacturing and trading of DTH rockdrilling tools was HK$24,654,000, a decrease of 36.4% from HK$38,754,000 in the same period last year[50][53] - Revenue from the manufacturing and trading of DTH rockdrilling tools contributed approximately 87.6% of total revenue during the Reporting Period, up from approximately 80.7% in the previous period[110] Employee and Management Information - The Group had 92 employees as of September 30, 2020, down from 111 employees a year earlier[156] - The total remuneration for key management personnel during the six months ended 30 September 2020 was HK$3,026,000, compared to HK$2,912,000 for the same period in 2019, reflecting an increase of approximately 3.9%[103] Share Capital and Ownership - The Group's issued and fully paid share capital remained at HK$38,000,000 as of 30 September 2020, unchanged from previous periods[97] - As of September 30, 2020, Mr. Huang Shixin holds 18,962,000 shares, representing approximately 4.99% of the total issued share capital of the Company[187] - Colour Shine holds 188,192,000 shares, accounting for approximately 49.52% of the total issued share capital of the Company[194] - Mr. He Xiaoming has an interest in 188,192,000 shares through Colour Shine, also representing approximately 49.52% of the total issued share capital[194] - Mr. Chan Leung Choi holds 19,188,000 shares, which is about 5.05% of the total issued share capital of the Company[194] Dividends and Recommendations - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2020, consistent with the previous year[72] - The Board does not recommend the distribution of an interim dividend for the Reporting Period[179] Compliance and Governance - The Audit and Compliance Committee reviewed the unaudited condensed consolidated financial statements and confirmed adequate disclosures were made[176] - The Company has complied with the Listing Rules after appointing Mr. Huang Shixin as an authorized representative on November 13, 2020[181] - The Company has adopted the standard code for securities transactions by directors as per the Listing Rules[180] - The Company has complied with the provisions of the SFO regarding the disclosure of interests in shares[198]

Financial Performance - For the year ended March 31, 2020, the Group's revenue was approximately HK$178.6 million, an increase of 9.1% from HK$163.4 million in 2019[9]. - The Group's net profit increased to approximately HK$20.9 million from HK$19.8 million in the previous year, reflecting a growth of 5.6%[10]. - Revenue from Hong Kong contributed approximately HK$169.9 million, accounting for 95.1% of total revenue, up from 79.6% in 2019[18]. - Revenue from the Scandinavia region increased to approximately HK$3.2 million, representing 1.8% of total revenue, compared to 0.7% in 2019[19]. - Revenue from Macau decreased significantly by approximately HK$19.5 million or 87.1%, from HK$22.4 million in 2019 to HK$2.9 million[20]. - The Group's manufacturing and trading of DTH rockdrilling tools accounted for approximately 80.8% of total revenue, up from 66.3% in 2019[21]. - The Group's revenue increased by approximately HK$15.2 million, or 9.3%, to approximately HK$178.6 million for the Year, from approximately HK$163.4 million for the year ended 31 March 2019[33]. - Revenue from the manufacturing and trading of DTH rockdrilling tools accounted for approximately 80.8% of the total revenue for the Year, compared to 66.3% in the previous year[27]. - Revenue generated from Hong Kong accounted for approximately 95.1% of total revenue for the Year, up from 79.6% in the previous year[27]. - Revenue from the trading of piling and drilling machineries contributed approximately 9.9% of total revenue, down from 23.7% in the previous year[28]. - Revenue from the trading of rockdrilling equipment accounted for approximately 9.3% of total revenue, compared to 10.1% in the previous year[28]. Expenses and Profitability - Gross profit increased by approximately HK$40,000, or 0.1%, to approximately HK$66.40 million for the Year, with a gross profit margin decreasing to approximately 37.2% from 40.6%[35]. - Selling and distribution expenses increased by approximately HK$0.8 million, or 12.7%, to approximately HK$7.1 million for the Year[36]. - Administrative expenses decreased by approximately HK$1.1 million, or 3.3%, to approximately HK$32.7 million for the Year[37]. - Finance costs increased by approximately HK$0.9 million, or 90.0%, to approximately HK$1.9 million for the Year[38]. - The Group recorded a net profit of approximately HK$20.9 million, an increase from approximately HK$19.8 million for the previous year, attributed to higher revenue and gross profit, along with lower administrative expenses[42]. Cash and Liquidity - As of March 31, 2020, the Group's total cash and cash equivalents amounted to approximately HK$101.4 million, up from HK$74.0 million the previous year, mainly due to increased revenue and decreased trade receivables[49]. - The gearing ratio increased to approximately 19.3% as of March 31, 2020, compared to 14.9% the previous year, primarily due to the recognition of lease liabilities under HKFRS 16[51]. - The Group had no bank borrowings as of March 31, 2020, compared to approximately HK$5.3 million in bank borrowings the previous year[50]. - The Group maintained a reasonable liquidity buffer to meet liquidity requirements at all times[11]. Business Strategy and Development - The Group plans to focus on strengthening its core business in DTH rockdrilling tools and expanding its presence in overseas markets[11]. - New product developments include drill pipes, cluster drills, and casing tubes, which are part of the Group's strategy to enhance its product offerings[21]. - The Group will allocate more resources towards the development of its DTH rockdrilling tools business to maximize long-term returns for shareholders[11]. - The overall business environment in Hong Kong improved, leading to higher demand for the Group's products compared to the previous year[9]. - The Group is focusing on expanding its presence in key international markets, including Scandinavia, Peru, Germany, Brazil, Japan, and India, with progress made in Germany during the year[45]. Corporate Governance - The company has adopted and complied with the corporate governance code, except for provisions A.2.1 and A.4.1, which relate to the separation of the roles of Chairman and CEO[1]. - The Board consists of three Executive Directors and three Independent Non-executive Directors, meeting the requirement of at least one-third being independent[90]. - The Board is responsible for convening general meetings, implementing resolutions, and determining operational plans and investment proposals[96]. - The company has established a standard code for securities trading by directors, confirming compliance by all directors for the year[88]. - The Board meets at least four times a year, ensuring timely and reliable information is provided for informed discussions[100]. - The company has at least three Independent Non-executive Directors, with at least one possessing professional qualifications related to finance management[91]. - The quorum for a Board meeting requires the presence of two Directors, allowing participation via conference calls[102]. - The company must notify the Stock Exchange at least seven working days before meetings concerning dividends or profit resolutions[101]. - The senior management is responsible for daily business management and implementing Board resolutions, including operational plans and internal management systems[97]. - The company will provide independent professional advice to Directors upon request to assist in fulfilling their duties[92]. Risk Management - The Company has established an enterprise risk management framework to manage various risks, with the Board responsible for maintaining effective internal controls[158]. - The Board conducted an annual review of the effectiveness of the risk management and internal control systems, finding them effective and sufficient[152]. - The Group identified principal risks including operational risks related to sales concentration and strategic risks due to reduced market demand[163]. - The financial risk encompasses credit risk, liquidity risk, exchange rate risk, and interest rate risk associated with financial transactions[166]. - The operational risk arises from inadequate internal processes, including fraud risk and processing errors[167]. - The Group employs a "three lines of defence model" for corporate governance, with risk management monitored by the finance team and internal audits conducted by external professionals[169]. - The risk register is maintained to track major risks and is updated annually to ensure proactive risk management[169]. - The risk management framework is evaluated at least annually, with management committed to integrating risk management into daily operations[174]. - The Company has appointed external advisors for professional advice on compliance with applicable laws and regulations[153]. Shareholder Engagement - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting[185]. - The Company maintains a website for effective communication, providing access to the latest information on business operations and financial data[193]. - The company held one annual general meeting on August 21, 2019, with a 100% attendance rate from all directors[199]. - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of its business and strategies[196]. - The company values shareholder opinions and actively organizes various investor relations activities[196]. - The attendance record of the general meeting indicates strong engagement from the board with shareholders[199]. - The company is committed to addressing shareholder inquiries in a timely manner[195]. - The annual general meeting serves as a platform for direct communication between the board and shareholders[199]. - The company aims to meet reasonable demands from shareholders promptly[196].

Financial Performance - The revenue for the six-month period ended September 30, 2019, was reported at HKD 500 million, reflecting a year-on-year increase of 10%[8]. - The net profit for the same period was approximately HKD 50 million, representing a profit margin of 10%[8]. - Revenue for the six months ended September 30, 2019, increased to HK$116,667,000, up 46.4% from HK$79,685,000 in 2018[16]. - Gross profit for the same period rose to HK$42,843,000, representing a 39.9% increase compared to HK$30,617,000 in 2018[16]. - Profit for the period attributable to owners of the Company was HK$16,071,000, a significant increase of 96.5% from HK$8,164,000 in the previous year[16]. - Basic earnings per share improved to 4.23 HK cents, up from 2.15 HK cents, reflecting a 96.3% increase[16]. - Total comprehensive income for the period was HK$17,799,000, compared to HK$8,389,000 in 2018, marking a 112.9% increase[16]. - Profit before tax for the six months ended September 30, 2019, was HK$25,591,000, an increase of 71.1% compared to HK$14,989,000 for the same period in 2018[21]. - The Group reported a net profit of approximately HK$20.6 million, an increase from approximately HK$11.7 million for the same period last year, primarily due to increased revenue during the reporting period[162]. Assets and Liabilities - The financial position as of September 30, 2019, includes a total asset value of approximately HKD 1.2 billion[8]. - Non-current assets decreased to HK$31,577,000 from HK$16,462,000 as of March 31, 2019[17]. - Current assets increased to HK$221,131,000, up from HK$202,881,000, indicating a growth of 9%[17]. - Net current assets improved to HK$171,460,000 from HK$153,231,000, reflecting an increase of 11.9%[17]. - Total assets less current liabilities rose to HK$203,037,000, compared to HK$169,693,000, showing a growth of 19.6%[17]. - Equity attributable to owners of the Company increased to HK$152,336,000 from HK$137,939,000, representing a growth of 10.4%[17]. - The Group's bank borrowings were approximately HK$6.4 million as of September 30, 2019, compared to HK$5.3 million as of March 31, 2019, with a gearing ratio of approximately 14.1%[171][172]. Revenue Sources - Revenue from manufacturing and trading of DTH rockdrilling tools was HK$94,215,000, up 90.2% from HK$49,472,000 in the previous year[89]. - Revenue from Hong Kong increased significantly to HK$110,652,000, up 83.7% from HK$60,185,000 in 2018[100]. - Revenue from trading of piling and drilling machineries generated revenue of HK$14,096,000, a decrease of 27.5% compared to HK$19,376,000 in the prior year[89]. - Revenue from trading of rockdrilling equipment revenue was HK$8,356,000, down 22.8% from HK$10,837,000 in the same period last year[89]. - Revenue from trading of piling and drilling machineries contributed approximately 12.1% of total revenue, down from 24.3%[148]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 15% growth in revenue from this region over the next fiscal year[8]. - The company is exploring potential acquisition opportunities to enhance its market share and operational capabilities[8]. - The Group has made progress in expanding its presence in international markets, including Germany, during the reporting period[165]. Operational Efficiency and Investments - The company continues to invest in technology upgrades to improve operational efficiency, with a budget allocation of HKD 30 million for the current fiscal year[8]. - New product development initiatives are underway, with an expected launch of two new product lines by Q2 2020[8]. - The Group acquired property, plant, and equipment amounting to HK$619,000 during the current interim period, compared to HK$119,000 in the same period last year[119]. Cash Flow and Financing - Operating cash flows before movements in working capital increased to HK$27,695,000, up from HK$16,228,000, reflecting a growth of 70.6%[21]. - Net cash from operating activities was HK$10,119,000, a significant recovery from a net cash used of HK$10,301,000 in the previous year[21]. - The Group reported a net increase in cash and cash equivalents of HK$8,320,000, compared to HK$17,621,000 in the prior period[21]. - The total cash and cash equivalents at the end of the period were HK$81,840,000, down from HK$88,886,000 at the beginning of the period[21]. Corporate Governance and Compliance - The company has established a corporate governance structure in compliance with the Listing Rules and the Corporate Governance Code[200]. - The Group has adopted HKFRS 16 "Leases," resulting in significant changes in accounting policies related to lease liabilities and right-of-use assets[39]. Employee and Operational Metrics - The Group had 111 employees as of September 30, 2019, an increase from 109 employees a year earlier, reflecting ongoing business development efforts[188]. - The average credit period granted to customers ranges from 30 to 90 days, with trade receivables aged 0 to 30 days amounting to HK$16,037,000[124].

Financial Performance - For the year ended March 31, 2019, the Group's revenue was approximately HK$163.4 million, an increase of 64% compared to HK$99.7 million in 2018[14]. - The Group's net profit rose significantly from approximately HK$0.5 million in 2018 to approximately HK$19.8 million in 2019, reflecting a substantial increase in profitability[15]. - The Group's revenue increased by approximately HK$63.7 million, or 63.9%, to approximately HK$163.4 million for the year ended 31 March 2019, compared to approximately HK$99.7 million for the previous year[31]. - The Group's gross profit increased by approximately HK$28.9 million, or 77.1%, to approximately HK$66.4 million for the year, resulting in a gross profit margin of approximately 40.6%, up from 37.6%[36]. - The Group's profit for the year increased significantly to approximately HK$19.8 million, up from approximately HK$0.5 million in the previous year[31]. Revenue Sources - The increase in revenue was primarily driven by improved business conditions in Hong Kong, leading to higher construction activities and demand for products[14]. - Revenue from the manufacturing and trading of DTH rockdrilling tools accounted for approximately 66.3% of total revenue for the year, an increase from 62.8% in the previous year[31]. - Revenue generated from Hong Kong contributed approximately HK$130.0 million, or 79.6% of total revenue, while revenue from Macau increased to approximately HK$22.4 million, or 13.7% of total revenue[24]. - Revenue from trading of piling and drilling machineries contributed approximately 23.7% of total revenue, while revenue from trading of rockdrilling equipment accounted for approximately 10.1%[26]. - The Group generated revenue from Peru amounting to approximately HK$5.7 million, representing 3.5% of total revenue for the year[24]. Business Strategy - The Group plans to focus on the manufacturing and trading of down-the-hole (DTH) rock-drilling tools in Hong Kong and Macau, while also expanding its presence in overseas markets[16]. - The Group aims to allocate more resources towards the development of its DTH rock-drilling tools business to maximize long-term returns for shareholders[16]. - The Group intends to invest more resources in the development of its manufacturing and trading business to maximize long-term returns for shareholders[20]. - The Group remains optimistic about the construction market in Hong Kong and Macau and plans to continue expanding its presence in overseas markets[48]. Expenses and Costs - Selling and distribution expenses increased by approximately HK$1.5 million, or 31.3%, to approximately HK$6.3 million, primarily due to higher sales staff costs and commissions[39]. - Administrative expenses rose by approximately HK$6.4 million, or 23.4%, to approximately HK$33.8 million, mainly due to increased staff costs, rental expenses, and donations[40]. - Finance costs increased by approximately HK$0.5 million, or 100.0%, to approximately HK$1.0 million, attributed to higher borrowings during the Year[41]. Financial Position - The Group's total cash and cash equivalents amounted to approximately HK$74.0 million as of 31 March 2019, an increase from approximately HK$72.0 million in the previous year[49]. - The gearing ratio increased to approximately 14.9% as of 31 March 2019, up from approximately 1.1% in the previous year, primarily due to increased borrowings[51]. - As of March 31, 2019, bank borrowings amounted to approximately HK$5.3 million, an increase from approximately HK$1.7 million in 2018[69]. - The Group is comfortable with its current financial and liquidity position, maintaining a reasonable liquidity buffer[70]. Corporate Governance - The Company has established a corporate governance structure in compliance with the Listing Rules and the Corporate Governance Code, ensuring high standards of governance to protect shareholder interests[88]. - The Board of Directors includes three Independent Non-executive Directors, representing at least one-third of the Board, in compliance with Listing Rules[96]. - The roles of the chairman and chief executive officer are currently held by the same person, which is a deviation from Code Provision A.2.1, but the Board believes this arrangement enhances operational efficiency[89]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance throughout the year[91]. Risk Management - The Company’s risk management and internal control system aims to manage risks without eliminating them, ensuring compliance with applicable laws and regulations[160]. - An annual review of the risk management and internal control systems was conducted, confirming their effectiveness and compliance with the Code[161]. - The Group appointed Corporate Governance Professionals Limited to perform independent internal control reviews and assess the effectiveness of risk management systems[163]. - The risk register is updated at least annually to track major risks and management actions taken to mitigate them[176]. Shareholder Communication - The Company values effective communication with shareholders to enhance investor relations and understanding of its business strategies[199]. - The Company actively organizes activities to maintain communication with shareholders and address their reasonable demands[199]. - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting[192]. - Shareholders have the right to make inquiries directly to the Company at its principal place of business in Hong Kong[198].