Investment in Joint Ventures - As of March 31, 2022, the company's investment in Great Glory Developments Limited amounted to HKD 188,650,000, representing over 5% of the total assets[2] - As of March 31, 2022, the company's equity interest in the joint venture was valued at approximately HKD 81,896,000, accounting for about 30.0% of total assets[2] - As of September 30, 2022, the company's investment in the joint venture remained at HKD 188,650,000, with provided amounts totaling approximately HKD 84,502,000[4] - As of September 30, 2022, the company's equity interest in the joint venture was valued at approximately HKD 83,908,000, representing about 27.0% of total assets[4] Joint Venture Activities - The joint venture primarily engages in property investment and development activities in Hong Kong[4] - The board believes that the investment in the joint venture will enhance the company's commercial interests in the Hong Kong property market and create synergies with its existing construction business[4] Other Investments - No other significant investments, acquisitions, or disposals of subsidiaries or joint ventures were reported during the year and period[4]

Financial Performance - For the six months ended September 30, 2022, the group's revenue was approximately HKD 104.8 million, an increase of 16.5% compared to HKD 90.3 million for the same period last year[1]. - The profit attributable to the company's owners for the period was approximately HKD 2.5 million, a significant turnaround from a loss of approximately HKD 9 million in the previous period[1]. - The basic earnings per share for the period was approximately HKD 0.32, compared to a loss per share of HKD 1.12 in the previous period[1]. - The group's gross profit for the period was HKD 17.4 million, representing a gross margin of 16.6%, up from HKD 11.6 million in the previous period[3]. - Total revenue for the six months ended September 30, 2022, was HKD 104,843,000, an increase from HKD 90,288,000 in the same period of 2021, representing a growth of approximately 16.2%[22]. - Other income for the six months ended September 30, 2022, totaled HKD 1,985,000, compared to HKD 515,000 in the previous year, indicating a significant increase of approximately 284.4%[24]. - The pre-tax profit for the period was HKD 2,541,000, a decrease from a loss of HKD 8,978,000 in the previous year[33]. - The company recorded a net profit of approximately HKD 2,500,000, a turnaround from a loss of about HKD 9,000,000 in the previous period, attributed to increased revenue and reduced administrative expenses[65]. Revenue Sources - Revenue from building construction was HKD 35,749,000, while maintenance, repair, alteration, and addition (RMAA) works generated HKD 45,165,000, and design and build services contributed HKD 23,929,000[22]. - The company's total revenue increased by approximately 16.1% from about HKD 90,300,000 to approximately HKD 104,800,000, driven by new project commencements and significant increases in RMAA and design and construction services revenue[55]. Expenses and Costs - The group's administrative expenses decreased to HKD 15.8 million from HKD 19.4 million, reflecting a reduction of approximately 18.5%[3]. - The company’s total employee costs for the six months ended September 30, 2022, were HKD 8,664,000, compared to HKD 8,486,000 in the same period of 2021, reflecting a slight increase of about 2.1%[27]. - Direct costs rose by approximately 11.1%, increasing from about HKD 78,700,000 to approximately HKD 87,400,000[58]. - Financing costs increased to HKD 363,000 for the six months ended September 30, 2022, from HKD 242,000 in the same period of 2021, reflecting a rise of about 50%[26]. - Administrative expenses decreased by approximately 18.3%, from HKD 19,400,000 to about HKD 15,800,000, mainly due to reduced R&D costs related to innovative assembly synthetic building designs[61]. Assets and Liabilities - The group's total assets as of September 30, 2022, were approximately HKD 311.1 million, up from HKD 272.3 million as of March 31, 2022[4]. - The net current liabilities amounted to HKD 26.4 million, compared to HKD 24.4 million as of March 31, 2022[6]. - Non-current assets as of September 30, 2022, amounted to HKD 96,575,000, up from HKD 92,981,000 as of March 31, 2022, showing an increase of approximately 3.4%[20]. - Trade receivables as of September 30, 2022, were HKD 31,261,000, significantly higher than HKD 5,888,000 as of March 31, 2022, indicating a growth of approximately 430.5%[35]. - Trade payables increased from HKD 56,098,000 as of March 31, 2022, to HKD 72,289,000 as of September 30, 2022, reflecting a growth of 28.8%[41]. - The company’s accrued expenses rose from HKD 3,010,000 as of March 31, 2022, to HKD 4,512,000 as of September 30, 2022, marking a 49.8% increase[41]. Liquidity and Financial Position - The net cash used in operating activities was HKD 73.0 million, compared to HKD 20.9 million in the previous period, indicating increased cash outflow[11]. - The group had undrawn credit facilities of HKD 116.5 million available as of September 30, 2022, providing sufficient liquidity for operational needs[16]. - The company maintained a strong financial position with cash and cash equivalents of approximately HKD 15,100,000 as of September 30, 2022, down from about HKD 57,600,000 on March 31, 2022[67]. - The capital-to-debt ratio increased to approximately 40.4% from 15.5%, calculated based on bank borrowings and lease liabilities divided by total equity[70]. Corporate Governance - The company has complied with all provisions of the corporate governance code, except for the deviation regarding the roles of the Chairman and CEO[83]. - The company has three independent non-executive directors providing independent views to ensure adequate power balance within the board[86]. - The audit committee, established in September 2015, reviews the company's financial information and oversees internal control procedures[105]. - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards and listing rules[105]. - The interim financial statements for the period were reviewed by external auditors and the audit committee, confirming adherence to statutory requirements[105]. Future Outlook and Strategy - The company maintains a relatively positive outlook for the construction industry in Hong Kong, driven by government initiatives in housing and infrastructure development[51]. - The company anticipates that the upcoming government transition in July 2022 may introduce new housing policies, potentially stimulating further growth in the construction sector[51]. - The company is actively seeking opportunities in modular synthetic construction projects and expanding the application of building information modeling technology, utilizing AI for site safety and robotic solutions in construction processes[53]. - The company has successfully expanded into new areas, including regular maintenance and repair projects, indicating its capability to diversify its service offerings[50]. Shareholder Information - The company has a significant shareholder, Mr. Lin, who holds 580,000,000 shares, representing 72.5% of the issued share capital[86].

Business Development and Strategy - The group successfully secured multiple new projects, including the construction of a public parking lot in Sheung Shui and renovation works at Cyberport[6]. - The group aims to enhance its market position by targeting projects with modular construction elements and exploring joint venture opportunities with strategic partners[8]. - A brand revitalization initiative will be launched in 2022 to attract young talent and strengthen the core business[8]. - The group plans to continue exploring property development opportunities following the acquisition of a property in Tsuen Wan[8]. - The group is actively pursuing opportunities to collaborate with property investors and developers to diversify its business[14]. - The group has invested in R&D for innovative assembly construction designs to enhance competitiveness in the assembly construction sector[13]. Financial Performance - The group's revenue increased from approximately HKD 151.8 million in the previous year to approximately HKD 204.3 million, representing a growth of about 34.6%[16]. - Revenue from building construction services surged by approximately 299.6%, rising from about HKD 21.8 million to approximately HKD 87 million[16]. - Gross profit rose from approximately HKD 19.5 million to about HKD 39.8 million, an increase of approximately 104.2%[18]. - The overall gross profit margin improved from approximately 12.8% in the previous year to about 19.5%[19]. - Direct costs increased by approximately 24.3%, from about HKD 132.3 million to approximately HKD 164.5 million, consistent with revenue growth[17]. - The group maintained a solid financial position with bank balances and cash of approximately HKD 57.6 million as of March 31, 2022, down from about HKD 92.3 million the previous year[28]. - The capital debt ratio decreased to approximately 15.5% from 22.1% in the previous year[29]. Governance and Compliance - The board believes the group's financial and liquidity position is good, considering the available credit facilities and cash resources as of March 31, 2022[45]. - The stock option plan was conditionally approved and remains effective since its transfer to the main board listing on October 26, 2017[46]. - No stock options have been granted, exercised, canceled, or lapsed under the stock option plan since its adoption[47]. - The board is responsible for ensuring timely publication of financial statements and compliance with legal requirements[81]. - The audit committee reviewed the group's financial performance and compliance with accounting principles, holding two meetings during the year[84]. - The company has established three committees: audit, remuneration, and nomination, all chaired by independent non-executive directors[80]. - The board is committed to acting in the best interests of the company and its shareholders, monitoring potential conflicts of interest[76]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an Environmental Management System (EMS) certified to ISO 14001:2015 to minimize environmental pollution from construction activities[134]. - Total greenhouse gas emissions for the reporting period amounted to 313 tons of CO2 equivalent, with direct emissions at 81 tons and indirect emissions at 232 tons[139]. - The company is committed to sustainable development and has set clear short-term and long-term goals for continuous emissions reduction[130]. - The company has implemented wastewater treatment facilities to ensure compliance with environmental standards, resulting in no complaints or violations during the reporting period[140]. - The company has established a corporate social responsibility policy to regulate its sustainable practices in various areas[130]. - The company has engaged stakeholders to enhance its sustainability practices and long-term business development[130]. Employee Management and Safety - The total number of employees as of March 31, 2022, is 69, with 50 males and 19 females[183]. - Employee turnover rate for 2022 is 3.4%, with male turnover at 3.7% and female turnover at 2.5%[185]. - The company achieved zero work-related accidents and zero fatalities in 2022, with a significant reduction in lost workdays due to injuries from 1,460 in 2020 to 0 in 2022[191]. - The company invests in employee training and development, providing both internal and external training opportunities[192]. - The company maintains a policy of equal employment opportunities regardless of age, gender, marital status, or other factors[178]. - The company has a strict policy against child and forced labor, ensuring no employees under 18 are hired[195].

Financial Performance - The group's revenue for the six months ended September 30, 2021, was approximately HKD 90.3 million, a decrease of 14.7% compared to HKD 105.9 million for the same period in 2020[1]. - The loss attributable to the company's owners for the period was approximately HKD 9 million, compared to a profit of approximately HKD 9 million in the prior period[1]. - The basic loss per share for the period was approximately HKD 1.12, compared to earnings of approximately HKD 1.13 per share in the previous period[1]. - The group's gross profit for the six months was HKD 11.6 million, an increase of 22.3% from HKD 9.5 million in the prior period[3]. - Revenue for the six months ended September 30, 2021, was HKD 90,288,000, a decrease of 14.8% compared to HKD 105,920,000 for the same period in 2020[25]. - The company reported a loss attributable to owners of the company of HKD 8,978,000 for the six months ended September 30, 2021, compared to a profit of HKD 9,044,000 in the same period of 2020[35]. - The company recorded a net loss of approximately HKD 9 million, compared to a profit of about HKD 9 million in the previous period, mainly due to reduced other income and increased administrative expenses[75]. Revenue Segmentation - The construction segment generated HKD 35,882,000 in revenue, up from HKD 13,080,000 in the previous year, indicating a significant increase[25]. - The maintenance, repair, alteration, and addition (RMAA) segment saw a decline in revenue to HKD 42,028,000 from HKD 73,337,000, a decrease of 42.7%[25]. - Revenue from building construction services significantly increased from about HKD 13.1 million to about HKD 35.9 million, attributed to the commencement of several new projects[66]. Expenses and Liabilities - The group's administrative expenses increased to HKD 19.4 million, up 42.3% from HKD 13.6 million in the previous period[3]. - Total employee costs increased to HKD 8,486,000 from HKD 6,398,000, reflecting a rise of 32.4%[28]. - Accrued expenses as of September 30, 2021, reached HKD 37,275,000, significantly up from HKD 10,928,000 as of March 31, 2021, indicating a growth of 241.5%[46]. - The total liabilities of Great Glory Developments Limited included current liabilities of HKD 67,657,000 as of September 30, 2021, compared to HKD 65,333,000 as of March 31, 2021[59]. Cash Flow and Financial Position - The net cash used in operating activities was HKD 20.9 million, compared to a net cash inflow of HKD 33.3 million in the same period last year[11]. - The group's cash and cash equivalents at the end of the period were HKD 59.3 million, down from HKD 91.3 million at the beginning of the period[11]. - As of September 30, 2021, the company's cash and cash equivalents were approximately HKD 60.3 million, down from about HKD 92.3 million as of March 31, 2021[77]. - The debt-to-equity ratio improved to approximately 17.4% from 22.1% as of March 31, 2021, indicating a stronger capital structure[78]. Joint Ventures and Investments - The group agreed to provide a total capital injection of HKD 188,650,000 to a joint venture, with approximately HKD 80,045,000 already injected by September 30, 2021[83]. - The group's equity in joint ventures showed a cost of HKD 80,050,000 as of September 30, 2021, compared to HKD 74,699,000 as of March 31, 2021, reflecting an increase of 7.5%[54]. - The group’s share of losses from joint ventures for the six months ended September 30, 2021, was HKD 1,523,000, indicating ongoing challenges in joint venture performance[61]. Corporate Governance - The board did not recommend the payment of an interim dividend for the period[1]. - The company did not declare an interim dividend for the six months ended September 30, 2021, consistent with the previous year[34]. - The group has complied with all provisions of the corporate governance code during the reporting period, except for the aforementioned deviation[93]. - An audit committee was established on September 22, 2015, to review the company's financial information and monitor internal control procedures[110]. Research and Development - The company continues to invest in R&D for innovative assembly construction designs and has adopted new construction technologies to enhance productivity[64]. - Administrative expenses increased by approximately 42.3% to about HKD 19.4 million, primarily due to rising employee costs and R&D expenses related to innovative assembly construction[72]. Employee and Shareholder Information - As of September 30, 2021, the group had 62 employees, down from 79 employees as of March 31, 2021[85]. - As of September 30, 2021, the group’s major shareholder, Cheers Mate, holds 580,000,000 shares, representing 72.5% of the issued share capital[100].

Financial Performance - The group's revenue decreased by approximately 71.7% from about HKD 536.6 million to about HKD 151.8 million for the year[13]. - Revenue from building construction services dropped from approximately HKD 369.1 million to about HKD 21.8 million, a decline of about 94.1%[13]. - Direct costs reduced by approximately 72.6% from about HKD 482.4 million to about HKD 132.3 million, consistent with the revenue decrease[14]. - Gross profit fell by approximately 64.0% from about HKD 54.2 million to about HKD 19.5 million due to reduced revenue and project numbers[16]. - Overall gross margin increased from approximately 10.1% in the previous year to about 12.8% in the current year[17]. - The total profit and comprehensive income increased from approximately HKD 12,700,000 in the previous year to about HKD 21,100,000 in the current year, an increase of approximately HKD 8,400,000[25]. - Administrative expenses rose by approximately 22.8%, from HKD 26,200,000 in the previous year to about HKD 32,100,000 in the current year[20]. - Income tax expenses increased by approximately 61.0%, from HKD 2,600,000 in the previous year to about HKD 4,200,000 in the current year due to an increase in taxable profits[24]. Strategic Focus and Future Outlook - The group will continue to focus on existing businesses and seek suitable projects aligned with overall strategy, including expanding the modular construction market[8]. - The group aims to enhance its market position by targeting projects with design for manufacturing and assembly (DfMA) elements and exploring joint venture opportunities[8]. - The acquisition of a property in Tsuen Wan is expected to create synergies with existing construction operations and diversify the business[12]. - The group maintains a positive outlook for the construction industry due to favorable long-term housing infrastructure policies from the Hong Kong government[8]. - The group plans to invest in advanced construction technologies, including Building Information Modeling (BIM) and 3D scanning and printing[8]. - The group will continue to seek opportunities for real estate development in collaboration with property investors and developers[12]. Cash Flow and Financial Position - As of March 31, 2021, the company's bank balance and cash amounted to approximately HKD 92,300,000, compared to HKD 60,900,000 in the previous year[27]. - The capital-to-debt ratio as of March 31, 2021, was approximately 22.1%, up from 1.2% in the previous year[28]. - The company has committed to provide capital injection totaling HKD 188,650,000 to a joint venture, with HKD 74,694,000 already provided as of March 31, 2021[33]. - The company held rental income of approximately HKD 1,200,000 from an investment property, significantly up from HKD 255,000 in the previous year[19]. Governance and Compliance - The management team emphasized a commitment to corporate governance, ensuring compliance with all regulatory requirements[65]. - The board of directors has approved a new risk management framework to mitigate potential operational risks[66]. - The company ensures compliance with the corporate governance code and has established clear responsibilities for its committees[80]. - The board is responsible for preparing the consolidated financial statements in accordance with statutory requirements and applicable accounting standards[76]. - Independent non-executive directors confirmed their independence as per the listing rules, ensuring no conflicts of interest[72]. - The company has a remuneration committee and a nomination committee to oversee the appointment and compensation of directors[70]. - The audit committee is responsible for corporate governance functions, including reviewing governance policies and compliance with legal regulations[98]. Environmental Management - The company has established an Environmental Management System (EMS) certified by SGS since 2009, compliant with ISO 14001:2015[125]. - The company has implemented measures to minimize dust emissions, including limiting vehicle speed to 5 km/h on construction sites[128]. - The company has achieved waste avoidance and recycling targets in compliance with the BEAM Plus rating system[134]. - The company has set appropriate goals for continuous improvement in waste management performance[134]. - The company has joined the Hong Kong Green Organization Certification for waste reduction and encourages employee participation in environmental initiatives[137]. - The company has implemented noise reduction measures and regularly monitors noise impact at construction sites[161]. Social Responsibility and Employee Welfare - The company ensures equal employment opportunities regardless of age, gender, marital status, pregnancy, family situation, disability, race, nationality, or religion[164]. - The company is committed to employee training and development, investing resources to enhance employee performance and capabilities for future responsibilities[175]. - There were no violations of child labor and forced labor laws during the reporting period[177]. - The company maintains high standards in supply chain management, ensuring suppliers meet criteria related to quality, reliability, and social responsibility[179]. Community Engagement - The company participated in various community activities, including the Hong Kong Construction Safety Award and the Hong Kong Environmental Excellence Award[191].

Financial Performance - The group's revenue for the six months ended September 30, 2020, was approximately HKD 105.9 million, a decrease of 70% compared to HKD 354.9 million for the same period in 2019[1] - Profit attributable to the company's owners for the period was approximately HKD 9 million, down from HKD 18 million in the prior period, representing a decline of 50%[1] - Basic earnings per share for the period was HKD 1.13, compared to HKD 2.25 for the same period last year, reflecting a decrease of 50%[1] - The group reported a gross profit of HKD 9.5 million, down 70% from HKD 31.9 million in the previous period[3] - The company's pre-tax profit for the six months ended September 30, 2020, was HKD 9,044,000, down 49.7% from HKD 17,987,000 in the same period of 2019[36] - Total profit and comprehensive income decreased by approximately HKD 9,000,000 to about HKD 9,000,000, primarily due to a reduction in revenue and costs[67] Cash Flow and Assets - The group's cash and cash equivalents at the end of the period increased to HKD 102.2 million from HKD 54.9 million at the beginning of the period, showing a net increase of HKD 47.3 million[11] - Operating cash flow for the period was HKD 33.3 million, a significant improvement compared to a cash outflow of HKD 84.6 million in the prior period[11] - Total assets as of September 30, 2020, were HKD 239.2 million, compared to HKD 218.9 million as of March 31, 2020[4] - The group's net asset value increased to HKD 132.4 million from HKD 123.4 million at the end of the previous reporting period[6] - As of September 30, 2020, the group's bank balances and cash amounted to approximately HKD 103,200,000, an increase from HKD 60,900,000 on March 31, 2020[69] Revenue Sources - For the six months ended September 30, 2020, the company's revenue from construction contracts was HKD 105,920,000, a decrease of 69.4% compared to HKD 345,948,000 for the same period in 2019[25] - The company's revenue decreased by approximately 69.4% from about HKD 345,900,000 to approximately HKD 105,900,000 due to delays in construction projects caused by the COVID-19 pandemic[56] - Revenue from building construction services significantly dropped from approximately HKD 269,300,000 to about HKD 13,000,000, primarily due to the completion of several large projects and delays in new projects[58] Expenses and Costs - Total employee costs for the six months ended September 30, 2020, were HKD 6,398,000, a slight decrease of 2.1% from HKD 6,534,000 in 2019[30] - Administrative expenses increased by approximately 27.3% to HKD 13,600,000, primarily due to increased consulting fees related to expanding design and construction services[64] - The company's financing costs for the six months ended September 30, 2020, were HKD 147,000, a decrease of 13.0% from HKD 169,000 in 2019[28] - Income tax expenses were approximately HKD 2,000,000, down from HKD 3,900,000 in the previous period, due to a decrease in taxable profits[66] Dividends and Shareholder Information - The group did not recommend the payment of an interim dividend for the period[1] - The company did not declare an interim dividend for the six months ended September 30, 2020, compared to HKD 8,000,000 declared in the same period of 2019[34] - Cheers Mate Holding Limited holds 580,000,000 shares, representing 72.5% of the company's issued share capital[93] - No directors or major executives held any shares or related securities as of September 30, 2020[92] Strategic Initiatives - The company plans to enhance its market position by further developing the private sector market and allocating resources for R&D related to modular construction methods[55] - The company has successfully completed Hong Kong's first modular social housing project and is preparing to invest more resources in modular construction methods[54] - The company intends to acquire a 13-story industrial building in Tsuen Wan for HKD 310,000,000, with plans to redevelop it into a 23-story modern industrial building[51] - The company aims to target smaller contract amounts in design and build projects, including those involving modular construction elements[55] Risk and Impairment - The group recorded an expected credit loss of HKD 10 million during the period, which was not present in the prior period[3] - The group recorded a loss of HKD 10,000,000 in impairment losses on financial assets and contract assets during the period, attributed to a repayment agreement with a customer[62] Employee Information - As of September 30, 2020, the group had 81 employees, a decrease from 117 employees as of March 31, 2020[76] - Performance bonuses are awarded to eligible employees based on individual performance, and the group sponsors employees to attend seminars and training courses[76] Compliance and Governance - The audit committee reviewed the unaudited condensed consolidated financial statements, ensuring compliance with applicable accounting standards and disclosure requirements[104] - The company has a stock option plan approved conditionally by its sole shareholder on September 22, 2015, but no options have been granted or exercised since then[102][103]

Financial Performance - The group's revenue decreased from approximately HKD 835.2 million in the previous year to about HKD 536.6 million, primarily due to a decline in RMAA services and building construction services [13]. - Direct costs reduced from approximately HKD 746.8 million to about HKD 482.4 million, a decrease of approximately 35.4% [15]. - Gross profit decreased from approximately HKD 88.4 million to about HKD 54.2 million, a reduction of approximately 38.6% [16]. - The overall gross profit margin remained stable at approximately 10.1% for the current year compared to 10.6% in the previous year [17]. - The total profit and comprehensive income for the year decreased from approximately HKD 37,500,000 to about HKD 12,700,000, a reduction of approximately 66.1% [25]. - Income tax expenses decreased by approximately 64.5%, from HKD 7,400,000 to HKD 2,600,000, due to a reduction in profit for the year [24]. - The group maintained a strong financial position with cash and bank balances of approximately HKD 60,900,000, down from HKD 280,200,000 in the previous year [29]. - The current ratio decreased to approximately 1.3 from 1.6 in the previous year, indicating a decline in liquidity [29]. - The capital debt ratio improved to approximately 1.2% from 3.6% in the previous year, as there was no significant debt financing requirement during the year [29]. - The group did not recommend a final dividend for the year, compared to a dividend of HKD 0.025 per share in the previous year [26]. - The total annual dividend amounted to HKD 0.01 per share, down from HKD 0.0375 per share in the previous year [27]. Market Strategy and Development - The company plans to further develop the private sector market and enhance its workforce to meet business growth demands [12]. - The company has expanded into the new market of modular construction, securing a project to design, supply, and construct 89 social housing units in Hong Kong [11]. - The company aims to strengthen its market position and increase market share through strategic project selection and collaboration with property investors and developers [12]. - The company aims to expand its market share in the Hong Kong public construction industry and RMAA services by leveraging its licenses and extensive experience [188]. - The company plans to broaden its customer base by expanding RMAA services and building construction services to include design and build projects [190]. Workforce and Management - The number of employees decreased from 223 to 117, indicating a reduction in workforce [34]. - The company has a strong management team with over 32 years of experience in the construction industry, led by Mr. Hsieh, who has been with the group since 1998 and became General Manager in 2008 [43]. - Mr. Chung, appointed as Executive Director and Managing Director in April 2016, has over 30 years of experience in various construction companies, contributing to the group's strategic planning [44]. - The independent non-executive directors bring over 22 years of experience in auditing, finance, and accounting, enhancing the company's governance and oversight [48]. - The management team includes members with qualifications from prestigious institutions, ensuring a high level of expertise in construction and project management [51]. - The company invests in employee training and development to enhance performance and prepare for future responsibilities [155]. - The company recognizes employees as its most valuable asset and aims to enhance corporate value for shareholders through competitive compensation and career development opportunities [184]. Corporate Governance - The board consists of 3 executive directors and 3 independent non-executive directors, ensuring a balanced composition for effective management [59]. - The company has complied with all corporate governance code provisions during the year, except for provision A.2.1 regarding the separation of roles between the chairman and the chief executive [58]. - The board meets at least four times a year, with additional meetings held as necessary, ensuring regular oversight of strategic and operational matters [58]. - The company has a remuneration committee and a nomination committee to ensure proper governance in director appointments and compensation [62]. - The company has established a risk management monitoring system to ensure effective oversight of potential risks [58]. - The company has a policy for regular review of the board's composition to maintain a balance of skills and experience relevant to its business needs [62]. - The audit committee reviewed the group's financial performance and compliance with applicable accounting principles and regulations, holding two meetings during the year [73]. - The company has purchased appropriate liability insurance for its directors and senior officers, providing protection against risks associated with their duties [90]. Environmental and Social Responsibility - The company is committed to sustainable development and has implemented environmental, social, and governance (ESG) policies and measures in its construction business [106]. - The board is responsible for the company's ESG strategy and reporting, with management tasked with identifying and managing related risks [106]. - The company has established an Environmental Management System (EMS) certified by SGS, compliant with ISO 14001:2015 since 2009 [110]. - The company has joined the Hong Kong Green Organization Certification "Waste Reduction Certificate" to promote environmentally friendly operations [119]. - The company reported that all construction equipment powered by diesel fuel uses ultra-low sulfur diesel [110]. - The company has implemented various energy-saving products and services to enhance resource utilization [129]. - The company has engaged in extensive worker education on water-saving practices at construction sites [137]. - The company has implemented measures to minimize dust emissions, including regular watering of work sites and limiting vehicle speeds to 5 km/h [110]. - The company achieved a waste reduction and recycling rate of 30%-60% across its projects [122]. - The company has established a framework for shareholders to propose special meetings and resolutions, ensuring their rights are protected [100]. Financial Management and Risk - The group conducts credit investigations on clients to mitigate credit risk, ensuring that credit levels do not exceed predetermined limits set by the board [192]. - The group has a monitoring procedure in place to ensure follow-up actions are taken to recover receivables [192]. - The group has receivables that may take a long time to recover, with retention money typically ranging from 1% for government contracts to 5-10% for private sector contracts [191]. - The company has a strong focus on cash flow management, especially in light of rising subcontracting costs [189]. - The company has provided training to employees to ensure compliance with new competition regulations [181]. Community Engagement - The company actively engages in community investment and corporate social responsibility initiatives, participating in various local community activities [169][170]. - Charitable donations made by the group during the year amounted to HKD 139,000, significantly lower than HKD 1,072,485 in 2019 [197].

Financial Performance - The group's revenue for the six months ended September 30, 2019, was approximately HKD 345.9 million, an increase from HKD 321.9 million in the previous period, representing a growth of 7.8%[2] - Profit attributable to the company's owners for the same period was approximately HKD 18.0 million, compared to HKD 15.8 million in the previous period, reflecting a growth of 7.5%[2] - Basic earnings per share for the period was approximately HKD 2.25, up from HKD 1.98 in the previous period, indicating a growth of 13.6%[3] - The group's gross profit for the period was HKD 31.9 million, down from HKD 35.0 million in the previous period, showing a decrease of 6.0%[3] - The group reported a total revenue of HKD 345,948,000 for the six months ended September 30, 2019, compared to HKD 321,933,000 for the same period in 2018, representing an increase of approximately 7.7%[44] - Profit and total comprehensive income increased by approximately HKD 2,200,000 to about HKD 18,000,000 from HKD 15,800,000 in the previous period, primarily due to a significant reduction in administrative expenses[82] Cash Flow and Assets - The group's total assets decreased from HKD 356.7 million as of March 31, 2019, to HKD 222.7 million as of September 30, 2019, a decline of 37.6%[4] - Cash and cash equivalents decreased from HKD 274.0 million at the beginning of the period to HKD 155.8 million at the end, a reduction of 43.0%[11] - The group reported a net cash outflow from operating activities of HKD 84.6 million for the period, compared to a net outflow of HKD 27.0 million in the previous period[11] - As of September 30, 2019, the group's bank balances and cash amounted to approximately HKD 162,000,000, down from HKD 280,200,000 as of March 31, 2019[85] - The current ratio improved to approximately 2.3 from 1.6 as of March 31, 2019, with no bank borrowings reported as of September 30, 2019[85] Dividends - The interim dividend declared was HKD 0.01 per share, down from HKD 0.0125 per share in the previous period[2] - The group declared an interim dividend of HKD 8,000,000 for the six months ended September 30, 2019, down from HKD 10,000,000 in 2018[53] Expenses and Costs - The group's administrative expenses decreased from HKD 16.5 million in the previous period to HKD 10.7 million, a reduction of 35.5%[3] - The total employee costs for the six months ended September 30, 2019, amounted to HKD 6,534,000, a decrease of approximately 49.3% compared to HKD 12,939,000 in 2018[48] - Financing costs increased to approximately HKD 169,000 from HKD 100,000 in the previous period, attributed to the adoption of HKFRS 16, leading to higher interest expenses on lease liabilities[80] Joint Ventures and Acquisitions - The group has adopted the equity method for joint ventures, recognizing investments initially at cost and subsequently adjusting for the group's share of joint venture profits and other comprehensive income[21] - The group will not recognize further losses if the share of joint venture losses exceeds the group's interest in the joint venture[21] - A joint venture was established with Nova Deko Modular Building Co., Ltd. in April 2019 to operate steel-related modular construction projects[95] - The company plans to acquire all issued share capital of Chuang Wei Development Limited for HKD 90,629,000, to be funded from internal resources[69] - The company announced plans to acquire all issued share capital of Chuang Wei Industrial Development Co., Ltd. for HKD 90,629,000, with the transaction subject to certain conditions[98] Lease Accounting - The group has applied HKFRS 16 Leases for the first time, replacing HKAS 17 and related interpretations[25] - Short-term leases of twelve months or less are recognized as an expense on a straight-line basis[28] - The cost of right-of-use assets includes the initial measurement of lease liabilities and any lease payments made before the commencement date[30] - Lease liabilities are recognized at the present value of unpaid lease payments at the lease commencement date[32] - The group will reassess lease liabilities and adjust the corresponding right-of-use assets in certain circumstances[35] - The group recognized additional lease liabilities and corresponding right-of-use assets amounting to HKD 3,088,000 upon the initial application of HKFRS 16 on April 1, 2019[38] Shareholding and Governance - As of September 30, 2019, Mr. Lin holds 580,000,000 shares in Cheers Mate Holding Limited, representing a 72.5% ownership stake in the company[106] - Mr. Zhong holds 2,000,000 shares, accounting for 0.25% of the company's issued share capital[106] - Ms. Zheng Peihua, as Mr. Lin's spouse, is deemed to have the same ownership of 580,000,000 shares, also representing 72.5%[108] - No other directors or key executives have disclosed any additional interests or short positions in the company's shares as of September 30, 2019[109] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the period[115] - The audit committee confirmed that the financial performance was prepared in accordance with applicable accounting standards and regulatory requirements[115] Market Position and Strategy - The group aims to enhance its market position and increase market share by penetrating the private sector client segment and developing opportunities in design and build services[71] - The group will continue to strengthen its workforce to meet the growing demand for its services[71]

Revenue and Profitability - The group's revenue decreased from approximately HKD 911.5 million to approximately HKD 835.2 million, driven by a decline in RMAA services and design and build services[13] - Revenue from building construction services increased from approximately HKD 224.8 million to approximately HKD 400.8 million, while RMAA services revenue decreased from approximately HKD 589.2 million to approximately HKD 429.4 million[13] - Gross profit decreased from approximately HKD 103.2 million to approximately HKD 88.4 million, a decline of about 14.4%[15] - Total profit and comprehensive income for the year decreased to approximately HKD 37,500,000, down about HKD 23,700,000 from approximately HKD 61,200,000 in 2018[26] - The company recorded an impairment loss of approximately HKD 14,400,000 for financial and contract assets, compared to zero in 2018[19] Costs and Expenses - Direct costs decreased from approximately HKD 808.3 million to approximately HKD 746.8 million, representing a reduction of about 7.6%[14] - Administrative expenses increased by approximately 11.1%, totaling about HKD 30,800,000 for the year ended March 31, 2019, up from HKD 27,700,000 in 2018[21] - Financing costs rose significantly to approximately HKD 242,000 in 2019 from HKD 67,000 in 2018, primarily due to increased bank borrowings[23] - Income tax expenses decreased by approximately 44.3%, amounting to about HKD 7,400,000 in 2019, down from HKD 13,300,000 in 2018[25] Cash Flow and Financial Position - As of March 31, 2019, the company maintained a cash balance of approximately HKD 280,200,000, compared to HKD 264,100,000 in 2018, with a current ratio of about 1.6[31] - Cash and cash equivalents were approximately HKD 274 million as of March 31, 2019, compared to HKD 238.1 million as of March 31, 2018[187] - The group will continue to monitor cash flow closely, especially due to rising subcontracting costs, and focus on projects with higher profitability[187] - The group’s cash flow may fluctuate due to payment practices associated with projects, with initial cash outflows expected before client payments[187] - The group’s financial position may be negatively impacted if clients fail to make timely payments for progress claims and retention money[189] Market Position and Strategy - The group aims to enhance its market position by further developing private client segments and targeting smaller design and build projects[11] - The group aims to expand its market share in the public construction sector and RMAA services through its licenses and industry experience[186] - The group has secured contracts totaling over HKD 431 million that have not yet been invoiced, contributing to future revenue[7] Corporate Governance - The board of directors consists of 3 executive directors and 3 independent non-executive directors, ensuring a balanced governance structure[61] - The company remains committed to adhering to corporate governance standards, with regular board meetings held at least four times a year[60] - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, all chaired by independent non-executive directors[71] - The audit committee reviewed the group's financial performance and compliance with applicable accounting principles and regulations, holding two meetings during the year[75] Environmental Management - The company has established an Environmental Management System (EMS) certified by SGS since 2009, compliant with ISO 14001:2015 standards[110] - The company has implemented measures to control dust emissions, including limiting vehicle speed to 5 km/h on construction sites[111] - The company has set appropriate targets for waste management and achieved goals for waste avoidance and recycling in compliance with the BEAM Plus rating system[117] - The company has adopted energy-efficient equipment and practices, including the use of LED lighting and energy-efficient appliances in offices[134] Employee and Labor Practices - The total number of employees was 223 as of March 31, 2019, a slight decrease from 224 in 2018, with regular reviews of compensation schemes to attract and retain talent[37] - The company maintains a commitment to employee development, ensuring equal employment opportunities regardless of age, gender, or other factors[145] - The company invests in employee training and development, recognizing that staff knowledge and skills are crucial for achieving corporate goals[155] Community Engagement and Corporate Social Responsibility - The group made charitable donations totaling HKD 1,072,485 during the year, significantly up from HKD 302,500 in the previous year[196] - The company actively participates in community activities, including safety awards and environmental excellence awards, to enhance corporate social responsibility[170] Shareholder Returns - The board proposed a final dividend of HKD 0.025 per share, consistent with the previous year, resulting in a total annual dividend of HKD 0.0375 per share, down from HKD 0.045 in 2018[28] - The total dividend for the year reached HKD 0.0375 per share, down from HKD 0.045 per share in the previous year[175]