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]

Business Operations - The group's core business in civil engineering contracts in Hong Kong accounted for approximately 84% of total revenue during the review period[18]. - The acquisition of two adjacent land parcels in Manila, Philippines, includes a hotel with 145 rooms and a parking lot, with a total site area of approximately 3,312.00 square meters[19]. - The proposed development project on the acquired property will have a total floor area of approximately 128,132.00 square meters and a proposed usable area of approximately 104,294.00 square meters, aiming to provide over 2,000 residential units[19]. - The group plans to actively participate in Hong Kong government infrastructure projects over the next three years, enhancing project management and mechanization capabilities to reduce costs and improve efficiency[20]. - The group aims to leverage the Belt and Road Initiative to explore new business opportunities and diversify its operations internationally[20]. - The management believes that the acquisition and development of overseas properties represent a significant step in expanding the group's business in foreign markets[19]. - The company is involved in new projects, including hotel engineering in Phuket, Thailand, which previously contributed HKD 116.6 million in revenue[53]. - The company is actively pursuing new contracts to offset revenue declines from completed projects, indicating a strategy for market expansion[54]. - The company has a strong pipeline of contracts with expected income, demonstrating its ongoing operational capabilities and market presence[48]. Financial Performance - The company reported revenue of approximately HKD 599.9 million for the year ended March 31, 2020, a decrease of 18.0% or about HKD 131.9 million compared to HKD 731.8 million in the previous year[52]. - Revenue from water engineering services decreased by 49.0% to approximately HKD 65.8 million, primarily due to the completion of contract 9/WSD/13, which contributed about HKD 29.3 million in the previous year[53]. - Revenue from road engineering and drainage services decreased by 15.1% to approximately HKD 388.8 million, with a total revenue reduction of HKD 165.5 million from several contracts, partially offset by additional income from new contracts totaling approximately HKD 67.5 million[54]. - The company has a total of HKD 1,439.9 million in confirmed cumulative income from contracts, with an expected further confirmation of income amounting to HKD 1,110.9 million[48]. - The estimated total income to be received by the group from contracts is HKD 889.4 million, with confirmed cumulative income of HKD 721.8 million[50]. - Net profit decreased by 44.2% to approximately HKD 14.6 million, impacted by rising administrative expenses and financial costs[66]. - Total comprehensive expenses for the year amounted to approximately HKD 27.7 million, a decline from a gain of HKD 8.2 million in the previous year, mainly due to fair value losses on investments[67]. - Current assets increased by approximately HKD 190.7 million to HKD 461.2 million, driven by new property development projects in the Philippines[69]. Governance and Management - The chairman of the board, Mr. Chen Zhenghua, has been in his position since June 1, 2017, and has extensive experience in the construction industry[26]. - The company appointed Mr. Cao as the executive director on February 9, 2018, bringing over 20 years of experience in management and technology[6]. - Professor Lin has been an independent non-executive director since March 16, 2015, with extensive experience in corporate governance and strategy development[30]. - Mr. Lin has over 20 years of experience in the currency and capital markets, having held various independent directorships in listed companies[32]. - Mr. Gong was appointed as an independent non-executive director on April 23, 2018, with a strong background in high-tech product R&D and government roles[40]. - The company appointed Mr. Zhang as the CEO on January 15, 2020, following the departure of Mr. Tao due to company development needs[43]. - The operational director, Mr. Shen, has been with the company since February 9, 2018, and has a background in engineering and accounting[44]. - The board held only two regular meetings during the reporting year, falling short of the recommended four meetings per year[83]. - The group has taken sufficient measures to ensure compliance with corporate governance standards, despite deviations noted in the annual report[83]. - The company complies with listing rules by appointing three independent non-executive directors, with one possessing appropriate professional qualifications in accounting[101]. Risk Management - The group anticipates no significant adverse impact on its financial position or performance from ongoing litigation, as it has sufficient insurance coverage[81]. - The group maintains a policy of regularly monitoring its liquidity needs to ensure adequate cash reserves and sufficient committed loans from major banks[76]. - The board acknowledges its responsibility for maintaining and reviewing the effectiveness of the risk management and internal control systems annually[120]. - The company has implemented a risk management framework that includes participation from the board and relevant committees to assess risk tolerance and management effectiveness[121]. - The group has established a continuous process for identifying, assessing, and managing significant risks, categorized into reporting, operational, strategic, and compliance risks[122]. - An independent advisory firm has been engaged to conduct internal audits, assessing key risks and internal controls, with no significant deficiencies identified during the reporting year[125]. Environmental and Social Responsibility - The company has implemented environmental measures in daily operations, including double-sided printing and encouraging paper recycling[136]. - The group has adhered to environmental, social, and governance reporting guidelines during the reporting year, with details to be included in the ESG report available on the company website[137]. - The company has implemented environmental management plans for each contract to ensure compliance with environmental policies and regulations[150]. - The group maintains strong relationships with employees, customers, and suppliers, emphasizing the importance of these relationships for sustainable development[153]. Shareholder and Financial Structure - The total net proceeds from the subscription agreement amounted to approximately HKD 105.4 million, with about 70% allocated to the main construction business[168]. - Approximately HKD 21.1 million (20%) of the net proceeds was designated for developing and exploring overseas potential markets[170]. - The total net proceeds from another subscription agreement were approximately HKD 51.21 million, with about 70% used for the main construction business[180]. - Approximately HKD 10.24 million (20%) of the net proceeds from the second agreement was allocated for overseas market development[180]. - The company aims to enhance its financial position and broaden its shareholder base through the fundraising activities[180]. - The company reported a total issued share capital of 248,000,000 shares, representing 15.66% ownership by both Mr. Chen and Mr. Zhang[198]. - The company confirmed it maintained the minimum public float required by listing rules as of the report date[187]. - The remuneration of directors and the five highest-paid individuals is detailed in the financial statements, with a focus on performance and contributions to the group[195].

Financial Performance - The group recorded revenue of approximately HKD 243 million for the reporting period, an increase of about 17.3% compared to HKD 273 million for the same period in 2018[9]. - Revenue for the six months ended September 30, 2019, was HKD 243,032,000, an increase of 17.2% from HKD 207,275,000 in the same period of 2018[46]. - The group recorded a profit of approximately HKD 5 million for the reporting period, down from HKD 5.4 million in the previous year[17]. - Net profit for the period was HKD 5,034,000, down from HKD 5,380,000, representing a decrease of 6.4%[49]. - Profit before tax decreased to HKD 5,645,000 from HKD 6,154,000, indicating a decline of 8.3% year-over-year[46]. - Basic and diluted earnings per share were HKD 0.40, compared to HKD 0.52 in the previous year, a decline of 23.1%[51]. - The profit for the period was reported at 4,821 thousand HKD, down from 5,672 thousand HKD in the previous year, representing a decrease of about 15.0%[104]. Cost and Expenses - The service cost increased to approximately HKD 218.4 million, representing a growth of about 19.3% from HKD 183.1 million in the previous year[10]. - Administrative expenses increased by 10.2% to approximately HKD 18.7 million, primarily due to higher employee costs and professional fees for overseas projects[13]. - The financial costs for the six months ended September 30, 2019, were 3,722 thousand HKD, significantly higher than 1,436 thousand HKD for the same period in 2018, indicating a year-over-year increase of 159.5%[101]. Assets and Liabilities - Total assets as of September 30, 2019, amounted to HKD 580,570,000, an increase from HKD 373,151,000 as of March 31, 2019[54]. - Current assets increased to HKD 782,518,000 from HKD 537,836,000, reflecting a growth of 45.5%[53]. - The company’s total liabilities increased to 156,237,000 HKD as of September 30, 2019, up from 125,129,000 HKD as of March 31, 2019[112]. - The company’s borrowings increased to 212,390,000 HKD as of September 30, 2019, after net borrowings of 368,034,000 HKD were drawn during the period[115]. Cash Flow - The net cash used in operating activities for the six months ended September 30, 2019, was HKD (194,209) thousand, compared to HKD (41,043) thousand for the same period in 2018, indicating a significant increase in cash outflow[62]. - The net cash generated from financing activities was HKD 187,120 thousand, a substantial increase from HKD 43,885 thousand in the prior year, reflecting improved financing conditions[62]. - The total cash and cash equivalents at the end of the period were HKD 100,012 thousand, slightly up from HKD 98,637 thousand at the end of the previous year[62]. Share Capital and Governance - As of September 30, 2019, the company's issued share capital was HKD 13.2 million, with a total of 1,320,000,000 ordinary shares issued at a par value of HKD 0.01 each[21]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with its provisions during the reporting period[25]. - Major shareholders holding 5% or more of the issued share capital include Huaguan Group Limited and Jiangsu Provincial Construction Engineering Group Co., Ltd., each holding 248,000,000 shares (18.79%)[34]. Strategic Plans and Outlook - The group plans to continue seeking major contractor projects in Hong Kong and Southeast Asia to capture more potential opportunities and achieve market diversification[8]. - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, aiming for $625 million[121]. - Market expansion plans include entering three new countries, which are projected to add $75 million in revenue over the next two years[121]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $200 million allocated for potential deals[121]. Operational Developments - The group acquired two adjacent plots of land in the Philippines, totaling approximately 3,312 square meters, intended for a large residential project expected to commence in December 2019 and complete by December 2023[7]. - The company employed a total of 349 staff members as of September 30, 2019, down from 397 on March 31, 2019[22]. - The company reported a significant increase in revenue, achieving a total of $500 million for the quarter, representing a 20% year-over-year growth[121]. Compliance and Accounting - The financial statements for the period were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[66]. - The company has adopted new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting[70]. - The company has maintained compliance with the standards of the listing rules regarding securities transactions by directors[26].

Financial Performance - The group's revenue increased by 14.8% to approximately HKD 1.166 billion, driven by overseas hotel construction projects in Thailand[6]. - Shareholders' profit decreased by 13.9% to HKD 26.1 million, primarily due to a decline in gross profit margin to about 9.5% from 11.5% in the previous year[6]. - The company reported revenue of approximately HKD 731.84 million for the fiscal year, an increase of 14.8% or about HKD 94.59 million compared to HKD 637.25 million in the previous year[34]. - Revenue from roadworks and drainage increased by 7.4% to approximately HKD 480.37 million, primarily due to contributions from contracts totaling about HKD 289.24 million[36]. - The company’s overseas project in Phuket, Thailand, contributed approximately HKD 116.6 million in revenue, marking its first overseas development[37]. - Revenue from landslide prevention services decreased by 65.7% to approximately HKD 27.86 million, primarily due to the completion of project GE/2013/16, which contributed about HKD 61.1 million in the previous year[36]. - The company anticipates further revenue recognition of approximately HKD 345.4 million from ongoing projects[32]. - Revenue from government contracts accounted for 83.6% of total revenue in the reporting year, down from 99.7% in 2018[108]. - The company operates in a project-based, non-recurring revenue model, with no long-term agreements in place, leading to potential revenue volatility[109]. - The net profit for the year was HKD 26,104,000, a decrease of 13.3% compared to HKD 30,307,000 in 2018[180]. - Total comprehensive income for the year was HKD 34,317,000, an increase of 13.3% from HKD 30,307,000 in 2018[182]. Contracts and Projects - The group secured a contract worth approximately HKD 340.74 million for a 61-story apartment building in Manila, Philippines, marking an expansion into overseas markets[6]. - As of March 31, 2019, the company had ongoing contracts with a total estimated contract value of HKD 100 million, with confirmed revenue of HKD 50 million[24]. - The company has ongoing contracts with various government departments, including the Highways Department and the Drainage Services Department, with significant contributions expected from these projects[32]. - The cumulative revenue recognized from various contracts totaled approximately HKD 1,005.3 million, with HKD 659.9 million already recognized[32]. - The company is actively pursuing new contracts and projects to enhance its market presence and revenue streams[34]. Financial Position and Ratios - As of March 31, 2019, the group's current assets net value was approximately HKD 270.45 million, a decrease of about HKD 24.38 million from the previous year[47]. - The group's current ratio was approximately 2.01 times as of March 31, 2019, compared to 2.44 times in 2018[48]. - The debt-to-equity ratio increased to approximately 22.3% in 2019 from 5.7% in 2018, mainly due to an increase in bank borrowings[49]. - Total equity attributable to owners of the company increased to HKD 371,401,000 from HKD 340,379,000 in 2018[185]. Administrative and Operational Costs - Service costs increased from approximately HKD 564 million in 2018 to about HKD 662 million in 2019, representing a growth of 17.4%[38]. - Administrative expenses rose to approximately HKD 36.58 million in 2019, an increase of 16.87% from HKD 31.3 million in 2018[43]. - Financial costs increased to about HKD 3.89 million in 2019 from HKD 2.71 million in 2018, primarily due to increased bank borrowings[44]. Corporate Governance - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced representation of shareholder interests[65]. - The company has complied with the corporate governance code, except for the deviation regarding the number of board meetings held[62]. - The board has confirmed that the risk management and internal control systems of the group are effective and adequate[92]. - The company has implemented a board diversity policy since its listing date, aiming to enhance the effectiveness of the board[69]. Risk Management - The company has established procedures to identify, assess, and manage significant risks, categorized into reporting, operational, strategic, and compliance risks[91]. - An independent advisory firm has been engaged to conduct internal audits, with findings and recommendations presented to senior management and the audit committee[92]. - The company acknowledges its responsibility to prepare financial statements that fairly reflect its affairs and has no significant uncertainties affecting its ability to continue as a going concern[86]. Environmental and Social Responsibility - The group has implemented environmental measures and practices to promote sustainability, including double-sided printing and encouraging paper recycling[102]. - The group has complied with the Environmental, Social, and Governance (ESG) reporting guidelines during the reporting year[103]. - The company has implemented environmental management plans for each contract to ensure compliance with sustainability practices[113]. Shareholder Information - As of March 31, 2019, major shareholders including Huaguan Group and Jiangsu Construction Group hold 248,000,000 shares, representing 22.55% of the company's issued share capital[140]. - The company has received a financial guarantee from a major shareholder for receivables amounting to HKD 12,930,000 related to a construction project in Thailand[146]. - The company has established a joint venture with Zhuo Yu for contract 10/WSD/10, which involves collaborative bidding and project execution[144]. Accounting and Audit - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2019[161]. - The company adopted the expected credit loss model under HKFRS 9, which fundamentally changed the accounting treatment for loan loss impairment[168]. - The auditor's report indicated that the audit aimed to provide reasonable assurance that the consolidated financial statements were free from material misstatement[173].