Financial Performance - Revenue for the year ended March 31, 2024, was HKD 654,452,000, an increase from HKD 624,187,000 in the previous year, representing a growth of approximately 4.05%[29] - The gross loss for the year was HKD (118,255,000), compared to a gross loss of HKD (31,593,000) in the previous year, indicating a significant increase in losses[29] - The net loss for the year was HKD (190,198,000), up from HKD (112,222,000) in the previous year, reflecting a year-over-year increase of approximately 69.5%[29] - Administrative expenses and financial costs totaled HKD (54,804,000) and HKD (17,381,000) respectively, compared to HKD (41,299,000) and HKD (9,222,000) in the previous year, showing an increase in both categories[29] - The company reported a basic loss per share of HKD (8.31), compared to HKD (6.44) in the previous year, reflecting a worsening in per-share performance[44] - The company’s cash and cash equivalents decreased to HKD 26,535,000 from HKD 47,624,000, indicating a decline in liquidity[45] - The company’s total assets decreased from HKD 771,457,000 to HKD 593,764,000, reflecting a reduction in overall asset base[45] - The company has recognized a provision for litigation amounting to HKD (7,200,000) during the year, which was not present in the previous year[29] - The construction segment reported a loss of HKD 104,932,000 for the year ended March 31, 2024, compared to a loss of HKD 85,617,000 in the previous year, indicating a worsening performance[58] - The group reported a loss of HKD 155,403,000 for the year ended March 31, 2024, compared to a loss of HKD 111,719,000 in the previous year, reflecting increased financial challenges[64] Employee and Operational Costs - The total employee cost for the group during the reporting year was approximately HKD 92.8 million, an increase from HKD 90 million in 2023[22] - The group employed a total of 100 employees as of March 31, 2024, including 94 full-time and 6 temporary staff[22] - Administrative expenses increased by approximately HKD 13.5 million to HKD 54.8 million, primarily due to a rise in employee costs[94] Assets and Liabilities - The company's net asset value decreased to HKD 133,600,000 from HKD 339,656,000 in the previous year, a decline of approximately 60.7%[37] - Total liabilities decreased significantly from HKD 26,021,000 to HKD 932,000, indicating a reduction in non-current liabilities[37] - The company's current assets net value as of March 31, 2024, was approximately HKD 77.6 million, down from HKD 282.6 million in the previous year[96] - The debt-to-equity ratio as of March 31, 2024, was approximately 73.3%, up from 54.8% in 2023[124] Revenue Sources and Contracts - The group secured new engineering and pipeline contracts in Malaysia with a total value of approximately HKD 187,800,000 during the fiscal year[69] - The group’s engineering contract revenue in mainland China, the Philippines, and Malaysia amounted to HKD 320,000,000, with a total profit of HKD 11,000,000 during the reporting year[69] - Revenue from private projects in Hong Kong amounted to approximately HKD 9.3 million, with a gross profit of about HKD 0.3 million[90] - Revenue from road engineering contracts decreased by 52.6% to HKD 111.2 million from HKD 234.8 million in the previous year[109] - The company experienced a significant increase in construction contract revenue in Malaysia and the Philippines, totaling approximately HKD 234.7 million[110] Financial Policies and Risks - The group’s financial policy is conservative, with a focus on maintaining sufficient cash reserves and obtaining adequate committed loans from major banks[20] - The group has not held any significant investments amounting to 5% or more of total assets as of March 31, 2024[21] - The group has no major capital commitments as of March 31, 2024[120] - The group has no future plans for significant investments or capital assets[125] Other Financial Aspects - Bank interest income increased to HKD 644,000 in 2024 from HKD 133,000 in 2023, showing a significant improvement in financial income[59] - Financial costs for bank borrowings increased to HKD 16,969,000 in 2024 from HKD 11,609,000 in 2023, indicating rising interest expenses[59] - The group recorded a foreign exchange loss of HKD 5.7 million this fiscal year, compared to a loss of HKD 15.1 million in the previous fiscal year[123] - Other comprehensive expenses for the reporting year were approximately HKD 15.9 million, unchanged from 2023, with a fair value loss of HKD 10.1 million recorded this fiscal year compared to HKD 0.9 million in the previous year[123] Strategic Decisions and Future Outlook - The group is actively seeking opportunities in the construction markets of Malaysia and mainland China to mitigate losses from underperforming contracts[69] - The group incurred a strategic decision to liquidate investments in the Philippines, resulting in a loss of HKD 50.8 million from the sale of a development property[84] - The group is currently evaluating the impact of recently announced amendments to Hong Kong Financial Reporting Standards, expecting no significant effect on consolidated financial statements[73] - The group faced significant operational disruptions due to the ongoing impact of the COVID-19 pandemic, particularly in the civil engineering construction segment[83] Tax and Compliance - The group reported a tax expense of HKD 6.614 million for the current year, compared to HKD 128,000 in the previous year[78] - There were no significant contingent liabilities as of March 31, 2024, consistent with the previous year[19] - The group has maintained the minimum public float required by the listing rules as of the announcement date[13] - The group has not made any adjustments to the consolidated financial statements for prior years during the reporting year[23] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting year[126]

Revenue Performance - The group's revenue decreased from approximately HKD 2.104 billion to approximately HKD 1.877 billion, primarily due to a reduction in trading business by HKD 79.2 million[8]. - Revenue from construction-related segments surged from HKD 1.312 billion to approximately HKD 1.877 billion, driven by private construction projects in mainland China and Malaysia contributing HKD 88.2 million[8]. - For the six months ended September 30, 2023, the company reported revenue of HKD 187.74 million, a decrease of 10.7% from HKD 210.35 million in the same period of 2022[45]. - Total revenue for the six months ended September 30, 2023, was HKD 187,737,000, a decrease of 10.7% from HKD 210,353,000 for the same period in 2022[65]. - Revenue from external customers in Hong Kong decreased to HKD 99,524,000 from HKD 131,042,000, a drop of 24.1%[73]. Financial Performance - The gross loss for the period was approximately HKD 19.3 million, an improvement from a gross loss of approximately HKD 29.7 million in the same period last year[10]. - The group recorded a significant gross loss of approximately HKD 30.7 million from Hong Kong civil engineering projects, offset by a gross profit of approximately HKD 11 million from private construction contracts in Malaysia[10]. - The pre-tax loss for the period was HKD 49.76 million, compared to a pre-tax loss of HKD 43.55 million in the prior year[45]. - The total comprehensive loss for the period was HKD 72.86 million, down from HKD 81.29 million in the same period of 2022[47]. - The company recorded a total loss of HKD 51,535,000 for the period, compared to a loss of HKD 43,470,000 in the previous year, indicating a year-over-year increase in losses of approximately 18.8%[52]. - The loss for the period ended September 30, 2023, was HKD 51,535,000, which is a 18.5% increase from the loss of HKD 43,470,000 in the same period of 2022[83]. Expenses and Costs - Administrative expenses increased to approximately HKD 27.6 million from approximately HKD 17.6 million, mainly due to administrative costs related to construction contracts in Malaysia[13]. - The cost of services for the same period was HKD 206.99 million, resulting in a gross loss of HKD 19.26 million, compared to a gross loss of HKD 29.69 million in 2022[45]. - Employee costs for the reporting period were approximately HKD 53.4 million, compared to HKD 42.2 million for the six months ended September 30, 2022, representing a year-on-year increase of about 26%[19]. - Financial costs rose to approximately HKD 5.8 million from approximately HKD 4.2 million, attributed to rising bank loan interest rates[14]. - Financial costs for the six months ended September 30, 2023, amounted to HKD 5,842,000, an increase of 39.2% from HKD 4,195,000 in the same period of 2022[77]. Assets and Liabilities - As of September 30, 2023, total assets amounted to HKD 782.57 million, with current liabilities of HKD 562.00 million, resulting in a net current asset value of HKD 220.57 million[49]. - The company's net asset value decreased to HKD 266.79 million as of September 30, 2023, from HKD 339.66 million as of March 31, 2023[50]. - The total liabilities increased to HKD 579,415,000 from HKD 514,881,000, reflecting a rise of 12.5%[71]. - The company reported total bank borrowings of HKD 169,644,000 as of September 30, 2023, a slight decrease from HKD 170,022,000 as of March 31, 2023[104]. Cash Flow - As of September 30, 2023, the group's bank balance and cash amounted to approximately HKD 32.9 million, down from approximately HKD 47.6 million as of March 31, 2023[15]. - For the six months ended September 30, 2023, the company reported a net cash outflow from operating activities of HKD 39,476,000, an improvement from HKD 88,615,000 in the same period last year[54]. - The company’s cash and cash equivalents decreased to HKD 32,876,000 from HKD 41,583,000, representing a reduction of approximately 21.5%[54]. - The net cash used in investing activities was HKD 10,583,000, compared to HKD 4,048,000 in the previous year, indicating a significant increase in cash outflow for investments[54]. - The company raised HKD 43,774,000 from a related party loan during the financing activities, which contributed to a net cash inflow of HKD 35,680,000 for the period[54]. Governance and Compliance - The board confirmed compliance with the corporate governance code during the reporting period[21]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the reporting period[24]. - The audit committee consists of three independent non-executive directors, ensuring proper oversight and governance[23]. - The company has not reported any changes in director information during the reporting period[37]. Shareholder Information - Major shareholders, including Huaguan Group, hold approximately 55.61% of the issued share capital, equating to 1,039,456,250 shares[30]. - The company has established a financing agreement of HKD 80 million with a bank, requiring Huaguan Group to maintain at least 25% ownership[34]. - The company did not declare any interim dividends for the reporting period, consistent with the previous period[38]. - No purchases, sales, or redemptions of the company's listed securities occurred during the reporting period[35]. Operational Challenges - The group faced challenges in the civil engineering sector due to labor shortages and rising material costs, leading to project delays and increased indirect costs[5]. - The group is exploring collaboration with a renowned international hotel brand to develop serviced apartments and residential units in the Philippines[6]. - As of September 30, 2023, the group employed 255 staff members, a decrease from 284 as of March 31, 2023[19]. Related Party Transactions - The group engaged in related party transactions with Jiangsu Provincial Construction Engineering Group Co., Ltd., including financial guarantees amounting to HKD 28,670,000 for the six months ended September 30, 2023, down from HKD 52,207,000 in the same period of 2022[110]. - The group had payables to a related company totaling HKD 72,930,000 as of September 30, 2023, with no prior balance reported for the same period in 2022[110]. - The total remuneration for key management personnel was approximately HKD 5,565,000 for the six months ended September 30, 2023, compared to HKD 3,176,000 for the same period in 2022[110].

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告的內容概不負責， 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告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 均 安 控 股 (cid:31)(cid:30)(cid:29)(cid:28)(cid:27) (cid:26)(cid:28)(cid:27) (cid:25)(cid:24)(cid:23)(cid:22)(cid:21)(cid:28)(cid:20)(cid:19) KWAN ON HOLDINGS LIMITED 均 安 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股票代號：1559） 截至二零二三年九月三十日止六個月之 中期業績公告 均安控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）欣然公佈本公司及 其附屬公司（統稱為「本集團」）截至二零二三年九月三十日止六個月（「報告期間」） 之未經審核業績連同去年同期之比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審 ...

Financial Performance - The group recorded a gross loss of HKD 31.6 million for the fiscal year, including a total gross loss of HKD 54.4 million from delayed projects[7]. - The group incurred a loss of approximately HKD 112.2 million for the year, a substantial increase of 62.8% compared to a loss of approximately HKD 68.9 million in 2022[70]. - The group recorded a gross loss of approximately HKD 31.7 million in construction-related businesses, compared to a gross loss of approximately HKD 34.2 million in 2022, reflecting ongoing challenges in project profitability due to labor shortages and rising costs[57]. - The group reported trade business revenue of approximately HKD 94.6 million, a decrease from HKD 180 million in 2022, with a profit of approximately HKD 0.1 million compared to a loss of HKD 1.5 million in the previous year[59]. - Other income for the reporting year was approximately HKD 12.8 million, significantly up from approximately HKD 6 million in 2022, mainly due to one-time income sources[63]. Revenue Sources - The total value of contracts obtained in mainland China amounted to approximately HKD 399 million, with revenue generated from these contracts being HKD 216.5 million and a profit of HKD 4.3 million[12]. - The construction-related business reported segment revenue of approximately HKD 529.5 million, a significant increase of 57.9% compared to HKD 335.3 million in the previous year[48]. - Revenue from new contracts in mainland China and Malaysia contributed approximately HKD 216.5 million to the overall revenue growth[48]. - Revenue from waterworks contracts surged from approximately HKD 5.3 million to HKD 32.6 million, driven primarily by contract 2WSD21, which contributed around HKD 31.2 million[49]. - The group generated approximately 48% of its total revenue from government contracts during the reporting year, down from 63% in the previous year[178]. Contractual Obligations - The total amount of unfinished contracts as of March 31, 2023, was approximately HKD 760.1 million, an increase from HKD 715.5 million as of March 31, 2022[14]. - The total confirmed revenue from major contracts as of March 31, 2023, was HKD 2,036.9 million, with an estimated contract value of HKD 2,384.3 million[42]. - The company has submitted applications for further extensions on contract completion dates, which are currently under consideration by clients[45]. - The group has two major private construction projects and 12 government contracts on hand as of the reporting date[14]. Market Opportunities - The group is exploring opportunities in the mainland China and overseas construction markets to support growth and expansion[8]. - The group is in discussions with a well-known international hotel brand to develop serviced apartments and residential properties in the Philippines[13]. - The company is exploring opportunities in different markets, including property development in the Philippines and chemical materials trading in mainland China, facing various operational risks[187]. Operational Challenges - The group anticipates continued pressure on performance in the construction-related sectors due to the ongoing impact of the pandemic[14]. - The company operates in a labor-intensive industry, and any labor shortages or significant increases in labor costs could adversely affect operational and financial performance[182]. - Political disagreements and delays in public project approvals may lead to operational delays, negatively impacting business performance[186]. - The company faces risks related to reliance on government contracts, which could adversely affect its business and profitability if not secured[178]. Governance and Management - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced representation[98]. - The company has adopted a board diversity policy since its listing date, with measurable targets and progress disclosed[104]. - The board plans to appoint at least one female director by December 31, 2024, despite currently having a 100% male board and approximately 18% female employees[109]. - The company has held two regular board meetings and various committee meetings during the reporting year, ensuring proper governance and decision-making processes[112]. - The board acknowledges its responsibility to prepare the consolidated financial statements to reflect the group's affairs fairly and accurately[142]. Risk Management - The group has established a risk management framework that includes the board, audit committee, and risk management committee to oversee risk management effectiveness[146]. - The risk management process includes identifying potential risks, assessing their impact, and implementing response plans[148]. - The risk management committee meets at least once a year to review the overall risk management strategy and effectiveness[146]. - The Risk Management Committee reviewed the group's risk management work report for 2022 and updated the major risks and key risk indicators for 2023[139]. Employee and Compensation - The group employed a total of 284 employees, comprising 191 full-time and 93 temporary staff, with employee costs reaching approximately HKD 90 million, up from HKD 80.9 million in 2022[86]. - During the reporting year, the remuneration of directors and senior management ranged from less than HKD 1,000,000 to over HKD 2,000,000, with 2 members earning below HKD 1,000,000 and 3 members earning between HKD 1,000,001 and HKD 1,500,000[141]. Environmental and Social Responsibility - The company has implemented various environmental protection measures, including double-sided printing and encouraging paper recycling[164]. - The company is committed to sustainable practices and has implemented environmental management plans for all contracts[188]. - The company encourages employees to protect the environment and raises awareness of environmental issues[164]. - The company has established a whistleblowing policy to allow employees and other stakeholders to raise concerns confidentially and anonymously[169]. Shareholder Relations - The company continues to enhance investor relations and communication with existing and potential investors[160]. - The company has conducted an annual review of its shareholder communication policy, concluding it was effectively implemented for the year ending March 31, 2023[161]. - The company has not experienced any significant changes in its main business activities during the reporting year[175].

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告的內容概不負責， 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告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 均 安 控 股 (cid:31)(cid:30)(cid:29)(cid:28)(cid:27) (cid:26)(cid:28)(cid:27) (cid:25)(cid:24)(cid:23)(cid:22)(cid:21)(cid:28)(cid:20)(cid:19) KWAN ON HOLDINGS LIMITED 均 安 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股票代號：1559） 截至二零二三年三月三十一日止年度之 全年業績公告 均安控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）欣然公佈本公司及 其附屬公司（統稱為「本集團」）截至二零二三年三月三十一日止年度（「報告年度」） 之經審核業績連同去年同期之經審核比較數字如下： ...

Revenue Performance - The company's revenue decreased from approximately HKD 287.6 million to about HKD 210.3 million during the reporting period, primarily due to a decline in trading business volume[8]. - Trading business revenue was approximately HKD 29.7 million, down about HKD 82.1 million from approximately HKD 111.8 million in the same period last year[8]. - Construction-related revenue increased from approximately HKD 175.9 million to about HKD 180.6 million, mainly due to contributions from newly awarded private construction projects in mainland China, which generated about HKD 49.1 million[8]. - Revenue for the six months ended September 30, 2022, was HKD 210,353,000, a decrease of 27% compared to HKD 287,639,000 for the same period in 2021[58]. - Total revenue for the six months ended September 30, 2022, was HKD 210,353 thousand, with external sales from construction at HKD 180,630 thousand and trade at HKD 29,723 thousand[83]. - Revenue from civil engineering and building maintenance contracts recognized over time was HKD 180,630,000, an increase of 2.4% from HKD 175,871,000 in the previous year[100]. - Revenue from chemical materials trading recognized at a point in time was HKD 29,723,000, a significant decrease of 73.4% from HKD 111,768,000 in the previous year[100]. Financial Losses - The gross loss for the reporting period was approximately HKD 29.7 million, compared to a gross loss of about HKD 23.3 million in the same period last year[11]. - The total loss for the reporting period was approximately HKD 43.8 million, compared to about HKD 37.2 million in the same period last year[17]. - The company reported a loss before tax of HKD 43,552,000, compared to a loss of HKD 37,155,000 in the previous year, indicating a 17% increase in losses[58]. - The company reported a loss of HKD 43,470,000 for the six months ended September 30, 2022, compared to a loss of HKD 36,568,000 for the same period in 2021, indicating an increase in loss of approximately 19.5%[106]. - Basic and diluted loss per share was HKD 2.71, compared to HKD 2.31 in the prior year, reflecting a 17% increase in loss per share[60]. Cash Flow and Liquidity - As of September 30, 2022, the group's bank balance and cash amounted to approximately HKD 41.6 million, a decrease from approximately HKD 149.4 million as of March 31, 2022[18]. - The company's cash and cash equivalents dropped significantly from HKD 149,353,000 to HKD 41,583,000, a decrease of approximately 72%[62]. - For the six months ended September 30, 2022, the net cash used in operating activities was HKD (88,615) thousand, compared to HKD (83,919) thousand in the same period of 2021, reflecting an increase of 8.5%[70]. - The net cash used in investing activities was HKD (4,048) thousand, significantly improved from HKD (14,616) thousand in the previous year, indicating a reduction of 72.3%[70]. - The net cash used in financing activities was HKD (14,784) thousand, a decrease of 55.1% from HKD (32,914) thousand in the prior year[70]. - The company reported a net decrease in cash and cash equivalents of HKD (107,447) thousand for the period, an improvement from HKD (131,449) thousand in the previous year[70]. Assets and Liabilities - Non-current assets decreased to HKD 81,107,000 from HKD 90,940,000, a decline of approximately 11%[62]. - Current assets decreased to HKD 642,895,000 from HKD 718,000,000, a reduction of about 10%[62]. - Total liabilities decreased from HKD 335,744,000 to HKD 303,681,000, a reduction of about 10%[62]. - The company's equity attributable to owners decreased from HKD 427,527,000 to HKD 389,126,000, reflecting a decline of approximately 9%[64]. - The group had no capital commitments or significant contingent liabilities as of September 30, 2022[21]. Shareholder and Capital Structure - As of September 30, 2022, the group's issued share capital was approximately HKD 18.7 million, with a total of 1,869,159,962 ordinary shares issued[22]. - The company completed a rights issue on September 19, 2022, raising approximately HKD 42.77 million, with a net amount of approximately HKD 41.27 million[49]. - The intended use of the net proceeds from the rights issue includes HKD 33.02 million (80%) for construction projects in Hong Kong and HKD 8.25 million (20%) for general working capital[52]. - The total issued and paid-up ordinary shares increased to 1,869,159,962 shares as of September 30, 2022, from 1,584,000,000 shares on April 1, 2021[137]. - As of September 30, 2022, the company has a major shareholder, Huaguan Group Limited, holding 1,039,456,250 shares, representing 55.61% of the issued share capital[40]. Operational Performance - The company continues to explore potential business opportunities in mainland China, despite recent challenges due to the global economic downturn[7]. - The company plans to continue focusing on construction and property development, with ongoing investments in new projects and technologies to enhance operational efficiency[72]. - The segment performance for construction showed a loss of HKD (32,220) thousand, while property development and trade reported losses of HKD (354) thousand and a profit of HKD 166 thousand, respectively[83]. Employee and Administrative Costs - Administrative expenses were approximately HKD 17.6 million, relatively stable compared to about HKD 17.2 million in the same period last year[13]. - The group employed 267 staff as of September 30, 2022, an increase from 211 as of March 31, 2022, with employee costs for the reporting period amounting to approximately HKD 42.2 million[27]. - The management's compensation during the reporting period was approximately HKD 3,176,000, compared to HKD 2,658,000 for the same period in 2021[141]. Financing and Borrowings - The group pledged bank deposits of approximately HKD 85.3 million as of September 30, 2022, to secure bank borrowings of approximately HKD 143 million[24]. - The company reported a total bank borrowings of HKD 180,524,000 as of September 30, 2022, down from HKD 235,842,000 as of March 31, 2022, a decrease of 23.5%[131]. - The company has entered into financing agreements totaling HKD 80 million and HKD 30 million with banks, requiring Huaguan Group to maintain at least 25% shareholding[44]. - The group had unused bank financing of approximately HKD 52,600,000 as of September 30, 2022, down from HKD 103,675,000 as of March 31, 2022[136]. Risks and Compliance - The group had no significant foreign exchange risks aside from receivables amounting to approximately HKD 26.4 million in Thai Baht and HKD 147.1 million in Philippine Pesos as of September 30, 2022[21]. - The group has not violated any covenants related to the drawn loans as of September 30, 2022[135]. - The group provided financial guarantees to Jiangsu Provincial Construction Engineering Group Co., Ltd. amounting to HKD 52,207,000 during the reporting period[139]. - The group has sufficient insurance coverage to mitigate potential losses from ongoing litigation, with minimal likelihood of significant adverse impact[142]. Other Notable Information - The company did not declare any interim dividends for the reporting period[48]. - The company has not reported any changes in the board of directors during the reporting period[47]. - The company has not granted any share options under its share option scheme since its adoption on March 16, 2015[56]. - The company did not engage in any significant acquisitions or disposals during the reporting period[23]. - No significant events occurred after September 30, 2022[143].

Financial Performance - The group recorded a gross loss of approximately HKD 35.7 million for the fiscal year ending March 31, 2022, primarily due to project delays and increased costs related to pandemic measures [13]. - The group incurred additional fixed labor costs, subcontracting fees, and indirect costs amounting to approximately HKD 83.3 million due to project delays and pandemic-related measures [13]. - The group's revenue for the construction-related business was approximately HKD 335.3 million, a significant decrease of 29.1% compared to HKD 472.8 million in the previous year [49]. - Revenue from road engineering contracts decreased by 28.8%, accounting for 76.8% of total revenue in this category [50]. - The income from landslide prevention engineering services fell by 5.0% to approximately HKD 61 million [53]. - Waterworks engineering contract revenue decreased by 87.5% to approximately HKD 5.3 million, primarily due to the completion of contract 1/WSD/17 [53]. - The gross margin for waterworks engineering was -127.5% in the reporting year, compared to 1.0% in the previous year [56]. - The group reported a significant drop in revenue from contract NE201605 and HA20170102, with a year-on-year decline of 66.1% [50]. - The group expects to receive additional income of approximately HKD 500,000 from contract HA20189126 in the reporting year [53]. - The group anticipates that the impact of the local pandemic and related control measures will continue to affect construction-related operations [49]. - The company reported a loss of approximately HKD 68.9 million for the year, an increase of 180% compared to the previous year's loss of HKD 24.6 million [66]. - The gross loss from road engineering contracts was approximately HKD 31.3 million, with a negative gross margin of 12.1% [66]. - The gross loss from water engineering contracts was approximately HKD 6.7 million, resulting in a negative gross margin of 127.5% [66]. Contracts and Projects - As of March 31, 2022, the group had 15 ongoing government contracts in Hong Kong, with a total uncompleted contract value of approximately HKD 715.5 million [18]. - The group secured two new government contracts during the reporting year, with a total original contract value of approximately HKD 275.7 million [18]. - The proposed development project in the Philippines has a total floor area of approximately 128,132 square meters and will consist of two 55-story residential buildings providing over 2,000 residential units [17]. - The company has established a solid pipeline of contracts, with cumulative revenue from confirmed contracts amounting to millions of Hong Kong dollars [41]. - The company has submitted applications for further extensions of contract completion dates to clients [48]. Market Outlook and Strategy - Management maintains a cautiously optimistic outlook for the construction industry in Hong Kong and China, anticipating a gradual recovery post-pandemic [18]. - The ongoing pandemic continues to pose challenges, particularly in terms of labor and material shortages, impacting the international construction market [14]. - The group is committed to exploring potential opportunities, especially in China, which is expected to remain a global economic engine over the next decade [18]. - The company is actively involved in research and development of new construction technologies to improve service delivery and project outcomes [33]. - The company has a strategic focus on international projects, as indicated by the roles of its executives in international engineering companies [23][36]. - The company is exploring business opportunities in different markets, including property development in the Philippines and chemical materials trading in mainland China, which may face operational risks [170]. Corporate Governance - The management emphasizes the importance of corporate governance and strategic development, with board members possessing extensive experience in finance and management [26][29]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced representation to protect shareholder interests [90]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with the standards set out in the listing rules [87]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee, with written terms of reference available on the stock exchange and the company's website [119]. - The Audit Committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards and listing rules, and has reviewed the consolidated financial statements for the reporting year [122]. - The company ensures that all directors receive appropriate training and continuous professional development to understand their responsibilities under relevant regulations and governance policies [110]. - The company has established procedures for director training and development, ensuring new appointees receive comprehensive orientation and ongoing support [111]. Risk Management - The risk management framework includes a systematic process for identifying, assessing, and managing significant risks, categorized into reporting, operational, strategic, and compliance risks [136]. - The board confirmed that there were no significant internal control deficiencies identified during the reporting year, ensuring the effectiveness of the risk management and internal control systems [138]. - The risk management committee meets at least once a year to review the overall risk management strategy and the effectiveness of risk mitigation efforts [133]. - The company has engaged an independent advisory firm to conduct internal audits, ensuring the effectiveness of internal controls and risk management practices [138]. - The board of directors is committed to maintaining and annually reviewing the effectiveness of the group's risk management and internal control systems [132]. Employee and Operational Insights - The company employed a total of 211 employees, with employee costs amounting to approximately HKD 80.9 million, down from HKD 92.8 million in the previous year [81]. - The company operates in a labor-intensive industry, and any labor shortages or significant increases in labor costs could adversely affect operational and financial performance [165]. - The company has not experienced significant labor shortages or industrial actions during the reporting year, but future construction activities may pose challenges [165]. - The company maintains strong relationships with employees, customers, and suppliers, emphasizing the importance of training and communication [175]. Environmental and Social Responsibility - The group has implemented various environmental measures in daily operations, including double-sided printing and encouraging paper recycling [153]. - The company has adhered to the "comply or explain" provisions of the Environmental, Social, and Governance (ESG) reporting guidelines during the reporting year [154]. - The company has implemented environmental management plans for each contract to ensure compliance with environmental policies and regulations [171]. Shareholder Relations and Dividends - The company has established multiple communication channels with shareholders, including annual reports and special meetings for feedback [152]. - The company has established a dividend policy that balances dividend distribution and retaining sufficient liquidity for operational needs and future growth opportunities [143]. - The board will periodically review the dividend policy and has the discretion to update or modify it as deemed appropriate, with no guarantee of specific dividend payments [145]. - The company has maintained the minimum public float required by the listing rules as of the report date [195]. Share Option Plan - The company has adopted a share option plan effective from March 16, 2015, valid for 10 years until March 15, 2025, with no options granted or agreed to be granted as of the report date [181]. - The maximum number of shares that may be issued under the plan is capped at 10% of the issued share capital as of September 29, 2020, which equates to 1,584,000,000 shares, unless further approval is obtained [182]. - The maximum number of options granted to any individual within a 12-month period cannot exceed 1% of the issued shares without shareholder approval [183]. - The share subscription price under the plan will be determined by the board but cannot be lower than the higher of the closing price on the date of the option grant or the average closing price over the preceding five trading days [186]. - Options can be exercised within a period determined by the board, not exceeding 10 years from the grant date, with the possibility of early termination [187]. - The company has not issued any new options under the plan since its adoption [181].

Revenue Performance - The group's revenue increased from approximately HKD 264.6 million to approximately HKD 287.6 million, primarily due to the growth in trade business, which contributed HKD 111.8 million in revenue during the reporting period [10]. - Revenue for the six months ended September 30, 2021, was HKD 287,639,000, an increase of 8.1% from HKD 264,570,000 in the same period of 2020 [58]. - Total revenue for the six months ended September 30, 2021, was HKD 287,639,000, an increase of 8.7% compared to HKD 264,570,000 for the same period in 2020 [108]. - Revenue from civil engineering and building maintenance contracts recognized over time was HKD 175,871,000, down 33.5% from HKD 264,570,000 in the previous year [112]. - Revenue from chemical materials trading recognized at a point in time was HKD 111,768,000, with no revenue reported in the previous year [112]. Financial Performance - The group recorded a gross loss of approximately HKD 23.3 million, compared to a gross profit of approximately HKD 19.6 million in the same period last year, largely due to delays in construction progress caused by the pandemic [13]. - The total loss for the reporting period was approximately HKD 37.2 million, compared to a profit of approximately HKD 3.6 million in the same period last year [19]. - The company reported a loss before tax of HKD 37,155,000, compared to a profit before tax of HKD 3,733,000 in the prior year [58]. - The total comprehensive loss for the period was HKD 52,314,000, compared to a total comprehensive income of HKD 23,712,000 in the same period last year [61]. - Basic and diluted loss per share was HKD (2.31), a decline from earnings of HKD 0.24 per share in the previous year [60]. Cost Management - The service costs rose from approximately HKD 245 million to approximately HKD 310.9 million, with trade business costs amounting to approximately HKD 110.3 million [12]. - The group’s administrative expenses were approximately HKD 17.2 million, down from approximately HKD 21.9 million in the same period last year, reflecting cost-cutting measures [16]. - Financial costs for the six months ended September 30, 2021, were HKD 5,385,000, down 26.0% from HKD 7,276,000 in the previous year [113]. - The company’s management compensation for the reporting period was approximately HKD 2,658,000, a decrease from HKD 3,400,000 in the prior year [150]. Assets and Liabilities - The group’s bank balance and cash amounted to approximately HKD 41 million as of September 30, 2021, down from approximately HKD 172.4 million as of March 31, 2021 [21]. - As of September 30, 2021, current assets totaled HKD 425,833,000, a decrease from HKD 452,710,000 as of March 31, 2021, representing a decline of approximately 5.9% [67]. - Non-current assets decreased from HKD 134,709,000 to HKD 111,393,000, a reduction of about 17.3% [64]. - Total liabilities decreased from HKD 371,646,000 to HKD 307,695,000, reflecting a decline of approximately 17.2% [65]. - The company’s total assets less current liabilities decreased from HKD 587,419,000 to HKD 537,226,000, a decline of approximately 8.5% [67]. Market and Strategic Initiatives - The group plans to develop two residential towers with over 2,000 units in the Philippines, with construction delayed due to pandemic-related restrictions [8]. - The group aims to enhance its competitive advantage in the construction industry by reducing costs and improving efficiency, while also exploring overseas market opportunities [9]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified that could increase market share by FF% [155]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer retention by GG% over the next year [155]. Shareholder and Equity Information - The issued share capital as of September 30, 2021, was HKD 15.84 million, with 1,584 million ordinary shares issued [25]. - The total number of issued shares as of September 30, 2021, was 1,584,000,000, unchanged from the previous reporting period [146]. - The major shareholder, Huaguan Group Limited, continues to hold at least 25% of the company's shares as per financing agreements [46]. Cash Flow and Financing Activities - The net cash used in operating activities for the six months ended September 30, 2021, was HKD (83,919,000), compared to HKD (1,218,000) for the same period in 2020 [75]. - The company reported a net cash outflow from financing activities of HKD (32,914,000) for the six months ended September 30, 2021, compared to HKD (53,204,000) in the previous year, indicating an improvement [75]. - The company’s bank borrowings increased from HKD 173,764,000 to HKD 142,775,000, a decrease of about 17.9% [65]. - The company has not violated any covenants related to its bank borrowings as of September 30, 2021 [146]. Inventory and Receivables - The group’s inventory, consisting of development properties on two parcels of land in the Philippines, was valued at approximately HKD 154,347,000 as of September 30, 2021, down from HKD 162,067,000 as of March 31, 2021, reflecting a decrease of about 4.4% [131]. - The total amount of trade and other receivables as of September 30, 2021, was HKD 243,848,000, compared to HKD 195,367,000 as of March 31, 2021, indicating an increase of about 24.8% [133]. - The group's trade receivables amounted to HKD 15,708,000, an increase from HKD 14,485,000 as of March 31, 2021, representing a growth of approximately 8.5% [139]. - The group reported no overdue or impaired trade receivables as of September 30, 2021, maintaining a healthy credit profile [139].

Financial Performance - The construction-related projects in overseas markets generated no revenue during the reporting year, compared to HKD 98.2 million in revenue and HKD 13.1 million in profit in the previous year[18]. - The construction-related business in Hong Kong recorded revenue of approximately HKD 472.8 million, a decrease of 5.8% compared to HKD 501.7 million in the previous year[59]. - The group reported a loss of approximately HKD 24.6 million, compared to a profit of HKD 14.6 million in the previous year, mainly due to decreased gross profit from civil engineering contracts in Hong Kong and no income from overseas construction projects[72]. - Other income and gains for the reporting year amounted to approximately HKD 16.6 million, a significant increase from HKD 7.5 million in the previous year[67]. - The revenue from landslide prevention engineering services increased by 36.4% to approximately HKD 64.1 million, driven by several contracts entering major execution phases[60]. - The gross profit margin for landslide prevention engineering services dropped significantly from 24.9% to 5.6% due to additional costs incurred during the COVID-19 pandemic[64]. - Revenue from roadworks and drainage and site formation works accounted for 76.5% of total revenue in Hong Kong, with a total of HKD 361.8 million, down from HKD 388.8 million[60]. - The group recorded revenue of approximately HKD 66 million from new chemical materials trading business in mainland China during the third quarter of the reporting year[66]. - The group's revenue from government contracts accounted for approximately 86.9% of total revenue for the reporting year, up from 83.6% in the previous year[162]. - Revenue from the largest customer accounted for approximately 30.4% of total revenue for the reporting year, down from 37.6% in the previous year[176]. - Revenue from the top five customers collectively represented about 87.0% of total revenue, compared to 95.4% in the previous year[176]. Business Operations - The company operates in civil engineering contracts, providing water engineering services, road engineering, drainage services, and site formation works[51]. - The company plans to actively participate in infrastructure projects in Hong Kong over the next three years, leveraging AI project management to reduce costs and enhance efficiency[23]. - The company has a strong focus on expanding its capabilities in public works and infrastructure projects in Hong Kong[51]. - The company aims to enhance its competitive position by participating in various government tenders for civil engineering projects[51]. - The company is actively seeking to diversify its service offerings to capture a broader market share in the construction sector[51]. - The group is exploring business opportunities in different markets, including property development in the Philippines and chemical materials trading in mainland China, while facing operational risks in overseas markets[170]. - The company has no long-term agreements with clients, making its revenue highly dependent on project-based contracts[165]. - The group did not secure any new construction projects in overseas markets during the reporting year, resulting in no revenue from overseas construction-related businesses[65]. Management and Governance - The management team includes experienced professionals with backgrounds in engineering, finance, and corporate governance[49][48]. - The board of directors is responsible for the overall management of the company and has adopted a diversity policy to enhance performance, considering factors such as gender, age, and professional experience[100][103]. - The company has established a governance framework to ensure compliance with legal and regulatory requirements, with regular reviews of governance policies[108]. - The company emphasizes the importance of continuous professional development for directors and senior management to maintain high governance standards[108]. - The board has a structured approach to decision-making, requiring approval for significant transactions before execution[104]. - The company has established four board committees: audit, remuneration, nomination, and risk management, each with defined terms of reference[117]. - The audit committee consists of three independent non-executive directors, with the chairman possessing appropriate accounting qualifications and experience[121]. - The nomination committee evaluates the board's structure and diversity, considering factors such as gender, age, and professional experience[128]. - The company has appointed three independent non-executive directors, meeting the requirement of having at least one-third of the board composed of independent directors[111]. Financial Position - As of March 31, 2021, the group's current assets net value was approximately HKD 452.7 million, with a current ratio of approximately 2.22, down from 2.40 in the previous year[74]. - The debt-to-equity ratio was approximately 38.2%, a decrease from 48.8% in the previous year[74]. - The group had no significant capital commitments or major acquisitions during the reporting year[76][78]. - The group employed a total of 270 staff, with employee costs amounting to approximately HKD 92.8 million, down from HKD 98.3 million in the previous year[85]. - The company aims to balance dividend distribution and retention of sufficient liquidity to meet operational funding requirements and seize future growth opportunities[145]. - The net proceeds from the issuance of equity securities amounted to approximately HKD 156.61 million, fully utilized as per the expected purposes by March 31, 2021[181]. Risk Management - The risk management framework includes regular assessments and monitoring of identified risks, categorized into reporting, operational, strategic, and compliance risks[135]. - The board has confirmed that the group's risk management and internal control systems are effective and adequate, with no significant deficiencies identified during the reporting year[139]. - The company has established procedures for handling and disclosing inside information, ensuring confidentiality and compliance with relevant regulations[136]. - The risk management committee meets at least once a year to review the overall risk management strategy and effectiveness of risk mitigation efforts[134]. - The board is responsible for overseeing the effectiveness of risk management and internal control systems, with management monitoring daily operations[133]. Sustainability and Corporate Social Responsibility - The company emphasizes environmental sustainability through initiatives like double-sided printing and encouraging paper recycling[154]. - The group has implemented an environmental management plan for each contract, ensuring compliance with environmental policies and monitoring performance[171]. - The group is committed to sustainable development and has established internal rules to ensure compliance with applicable laws and regulations[174]. Shareholder Relations - The company has established multiple communication channels with shareholders, including annual reports and special meetings[153]. - The company is committed to enhancing investor relations and welcomes feedback from shareholders and the public[150].

Financial Performance - The total revenue for the reporting period increased by approximately 8.9% to about HKD 264.6 million, primarily driven by the growth in landslide prevention engineering service contracts[13] - The gross profit for the reporting period was approximately HKD 19.6 million, a decrease of about 20.6% compared to the same period last year[15] - Revenue from landslide prevention engineering service contracts recorded approximately HKD 39.1 million, representing a significant increase of about 142.8% compared to the previous year[13] - The profit for the reporting period was approximately HKD 3.5 million, down from HKD 5 million in the same period last year[21] - The company reported a profit of HKD 3,832,000 for the six months ended September 30, 2020, compared to HKD 4,821,000 in the same period of 2019, indicating a decrease of approximately 20.5%[108] - The company incurred a loss of HKD 4,821,000 during the period, leading to a total comprehensive loss of HKD 3,787,000[68] - Total comprehensive income for the period amounted to HKD 23,712,000, compared to a loss of HKD 3,574,000 in 2019[58] - Basic and diluted earnings per share were HKD 0.24, down from HKD 0.40 in the previous year[58] Expenses and Costs - Administrative expenses remained relatively stable at approximately HKD 21.9 million, compared to HKD 22.5 million in the same period last year[18] - The financial cost for the reporting period increased to approximately HKD 4.2 million, attributed to higher costs from lease liabilities[19] - The company’s financial cost for the six months ended September 30, 2020, totaled HKD 7,276,000, up from HKD 4,221,000 in 2019, reflecting an increase of approximately 72.5%[103] - The interest expense on bank borrowings rose to HKD 6,827,000 in 2020 from HKD 4,199,000 in 2019, marking an increase of approximately 62.5%[103] Assets and Liabilities - As of September 30, 2020, the group's bank balance and cash amounted to approximately HKD 49.3 million, a decrease from approximately HKD 100.95 million as of March 31, 2020[24] - The group's total outstanding borrowings were approximately HKD 212.3 million, down from approximately HKD 251.6 million as of March 31, 2020[24] - The current ratio as of September 30, 2020, was approximately 2.53, an increase from approximately 2.40 as of March 31, 2020[24] - The debt-to-equity ratio was approximately 52.8% as of September 30, 2020, compared to approximately 48.8% as of March 31, 2020[24] - Total liabilities decreased to HKD 304,635,000 from HKD 329,906,000[61] - The company’s total assets as of September 30, 2020, were HKD 540,518,000, reflecting a decrease from HKD 495,896,000 in the previous year[68] Contracts and Projects - The company has 14 ongoing contracts in Hong Kong, with an estimated outstanding contract value of approximately HKD 1 billion as of September 30, 2020[5] - The company plans to redevelop two connected land parcels in Manila, Philippines, into two residential towers with over 2,000 units and a shopping center[9] - The company has a performance bond of HKD 29,782,000 related to a construction project in the Philippines, expected to be repaid upon project completion within two to three years[121] Share Capital and Dividends - The group's issued share capital was HKD 15.84 million, with 1,584,000,000 ordinary shares as of September 30, 2020[28] - The company did not recommend any dividend payment for the reporting period[49] - The company issued a total of 264,000,000 new shares at HKD 0.1976 per share, raising approximately HKD 52,166,000 for enhancing its capital base and supporting project operations[139] Employee and Management Information - The group employed 291 staff members as of September 30, 2020, a decrease from 358 as of March 31, 2020[32] - The board of directors includes prominent figures such as Chairman Chen Zhenghua and independent non-executive directors[146] - The company has established a remuneration committee to oversee executive compensation[146] Risk Management and Financial Policies - The company has established financial risk management policies to ensure all payables are settled within the credit terms[129] - The company has not violated any covenants related to its bank borrowings as of September 30, 2020, ensuring continued access to financing[135] Market and Economic Conditions - The company expects to face challenges in the second half of the year due to uncertainties from the COVID-19 pandemic and US-China trade tensions[10] - The company has not disclosed any new strategies or market expansions during the reporting period[47] Other Financial Metrics - The average number of ordinary shares used to calculate basic earnings per share increased to 1,584,000, up from 1,209,392 in 2019, representing an increase of about 31%[108] - The company reported a significant increase in contract liabilities, which rose by HKD 16,015,000 compared to a decrease of HKD 5,011,000 in the previous year[70]