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].