香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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 對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。 Progressive Path Group Holdings Limited 進昇集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號︰1581） 截 至2023年3月31日 止 年 度 之 年 度 業 績 公 告 財務摘要 • 於本年度的收入約為511.0百萬港元，較截至2022年3月31日止年度減少 約1.0%。 • 於本年度的毛利約為3.7百萬港元，較截至2022年3月31日止年度減少約 89.1%。 • 於本年度的毛利率減至約0.7%，而截至2022年3月31日止年度為6.5%。 • 於本年度的本公司擁有人應佔虧損約為22.0百萬港元，而截至2022年3 月31日止年度本公司擁有人應佔溢利約為12.1百萬港元。 • 於本年度的每股虧損約為6.76港仙，而截至2022年3月31日止年度每股盈 利約為5.41港仙（經重列）。 ...

Financial Performance - The company recorded revenue of approximately HKD 249.2 million for the six months ended September 30, 2022, a decrease of 4.9% compared to HKD 262.1 million for the same period in 2021[5]. - Net profit dropped from approximately HKD 5.6 million for the six months ended September 30, 2021, to about HKD 1.0 million in the current period, primarily due to reduced income from construction projects and increased depreciation and financing costs[5]. - The gross profit decreased by approximately 69.9% from HKD 15.7 million to about HKD 4.7 million, with the gross profit margin falling from 6.0% to 1.9%[14]. - The net profit for the period was HKD 1,028,000, a significant decline of 81.7% compared to HKD 5,589,000 in the previous year[42]. - Basic and diluted earnings per share decreased to HKD 0.44, down 82.3% from HKD 2.49 in the same period last year[42]. - The group reported a segment loss of HKD 2,328,000 for the six months, compared to a profit of HKD 7,438,000 in the same period last year[59]. - The profit before tax for the six months ended September 30, 2022, was HKD 1,028,000, significantly lower than HKD 5,589,000 in 2021, a decline of 82%[74]. Revenue Breakdown - Construction revenue for the current period was approximately HKD 75.2 million, accounting for about 30.2% of total revenue, down from HKD 85.7 million and 32.7% in the previous period[10]. - The construction machinery rental income was approximately HKD 174.0 million, accounting for about 69.8% of total revenue, a slight decrease from HKD 176.4 million and 67.3% in the previous period[13]. - Revenue from construction projects was HKD 75,178,000, down 12.2% from HKD 85,674,000 year-on-year[56]. - Revenue from machinery leasing was HKD 173,976,000, a slight decrease of 1.3% compared to HKD 176,445,000 in the previous year[56]. Expenses and Costs - Administrative expenses rose by approximately 8.3% to HKD 11.8 million, compared to HKD 10.9 million in the previous period, primarily due to increased professional service fees[17]. - Financing costs for the period were approximately HKD 4.6 million, an increase of about 49.9% compared to HKD 3.1 million for the six months ended September 30, 2021, primarily due to increased interest-bearing liabilities and rising interest rates[18]. - Interest expenses for bank loans increased to HKD 1,347,000 in 2022 from HKD 615,000 in 2021, representing a 119% increase[67]. - Lease liabilities interest expenses rose to HKD 3,268,000 in 2022 from HKD 2,464,000 in 2021, marking a 33% increase[67]. - The total interest expenses amounted to HKD 4,615,000 in 2022, up from HKD 3,079,000 in 2021, reflecting a 50% increase[67]. Assets and Liabilities - As of September 30, 2022, the group had bank balances of approximately HKD 39.0 million, up from HKD 17.3 million as of March 31, 2022, while interest-bearing liabilities were approximately HKD 189.7 million, compared to HKD 182.2 million[20]. - The debt-to-equity ratio as of September 30, 2022, was approximately 73.7%, a decrease of about 15.5% from 89.2% as of March 31, 2022[20]. - Total assets less current liabilities increased to HKD 333,082,000 from HKD 274,016,000 as of March 31, 2022[44]. - Total assets increased to HKD 550,043,000 as of September 30, 2022, up from HKD 471,057,000 as of March 31, 2022[63]. - Total liabilities rose to HKD 292,667,000 as of September 30, 2022, compared to HKD 266,947,000 as of March 31, 2022[63]. Shareholder and Capital Structure - The group completed a rights issue on September 23, 2022, issuing 207,500,000 shares at a subscription price of HKD 0.26 per share, raising approximately HKD 54.0 million[23]. - The net proceeds from the rights issue were approximately HKD 52.0 million, with about HKD 37.3 million allocated for purchasing air compressors and HKD 14.7 million for general working capital[23]. - The company's issued and paid-up share capital increased to HKD 20,750,000 as of September 30, 2022, from HKD 10,375,000 as of March 31, 2022, following a rights issue[96]. - The weighted average number of ordinary shares for calculating basic and diluted earnings per share increased to 231,331,000 in 2022 from 224,027,000 in 2021, an increase of 3.3%[76]. Government and Market Outlook - The company anticipates more business opportunities due to the Hong Kong government's commitment to increase public infrastructure spending[6]. - The Hong Kong government plans to exceed HKD 100 billion in annual infrastructure spending over the next few years, which the group views positively for long-term market development[31]. - The group anticipates gradual recovery in the foundation industry and expects steady increases in tender opportunities and equipment rental business, despite challenges from competition and rising costs[29]. Corporate Governance - The company has complied with the corporate governance code, except for deviations regarding the separation of roles between the chairman and the CEO, which remains unfilled as of the report date[108][109]. - The company aims to enhance its corporate governance practices to align with its business operations and development[108].

Financial Performance - The company's revenue increased by approximately 18.4% to about HKD 515.9 million for the year ended March 31, 2022, compared to HKD 435.6 million for the previous year[6]. - Profit attributable to the owners of the company rose from approximately HKD 3.7 million to about HKD 12.1 million for the same period[6]. - Total revenue for the year was approximately HKD 515.9 million, an increase of 18.4% from HKD 435.6 million in the previous year[17]. - Construction engineering revenue decreased to approximately HKD 177.1 million, accounting for 34.3% of total revenue, down from 44.6% the previous year[18]. - Construction machinery leasing revenue increased significantly to approximately HKD 338.9 million, representing 65.7% of total revenue, up from 55.4% the previous year[21]. - Gross profit increased to approximately HKD 33.6 million, with a gross profit margin of 6.5%, up from 5.0% the previous year[22]. - Net profit for the year was approximately HKD 12.1 million, a substantial increase of 224.5% compared to HKD 3.7 million in the previous year[27]. - Other income decreased by approximately 52.8% to HKD 7.5 million, primarily due to the absence of non-recurring government subsidies from the previous year[24]. - Administrative expenses increased by approximately 8.1% to HKD 23.6 million, attributed to higher business volume and insurance costs[25]. Business Development and Strategy - The company secured five new projects and obtained two new contracts from existing projects, totaling approximately HKD 83.4 million[6]. - The company plans to continue focusing on business development through new construction projects and leasing arrangements in Hong Kong[12]. - The Hong Kong government is expected to continue investing in infrastructure as a major economic stimulus measure, which will create more opportunities in the construction industry[10]. - The company will adopt a more cautious approach in bidding for construction projects due to the ongoing uncertainties brought by the COVID-19 pandemic[6]. - The company is focused on upgrading its machinery fleet to maintain competitiveness and attract larger, more profitable projects[43]. Challenges and Risks - The construction industry faces challenges from rising material costs, inflation, and supply chain bottlenecks, which may threaten economic stability[10]. - The board remains optimistic about the long-term development of the construction industry, supported by government initiatives[7]. Environmental and Social Responsibility - The company has adopted new environmentally friendly machinery to comply with regulations and mitigate potential risks associated with environmental and social issues[15]. - The company recognizes the importance of balancing operational development with environmental protection, particularly in reducing greenhouse gas emissions[151]. - Total greenhouse gas emissions decreased from 6,917 tons in 2021 to 4,186 tons in 2022, representing a reduction of approximately 39.5%[154]. - The greenhouse gas emissions intensity improved from 16 tons per million HKD revenue in 2021 to 8 tons per million HKD revenue in 2022, a 50% reduction[154]. - The company has not violated any air and greenhouse gas emission-related laws and regulations[157]. - The company has established wastewater collection pits at construction sites to minimize wastewater pollution[166]. - The company has implemented measures to mitigate the impact of climate change, including regular policy reviews and employee training on greenhouse gas emissions[168]. Employee and Management Practices - The company has 508 employees as of March 31, 2022, with a gender distribution of 93% male (474) and 7% female (34)[170]. - The employee turnover rate for full-time staff is approximately 27%, with a significantly higher turnover rate among part-time employees[171]. - The company provides a full set of personal protective equipment to employees on construction sites to ensure safety[175]. - The company regularly reviews employee benefits to enhance engagement and reduce turnover[171]. - 21% of employees received training, with an average training duration of 1.5 hours per employee[178]. - The company has achieved ISO 45001:2018 certification for its occupational health and safety management system[174]. Corporate Governance - The company emphasizes effective corporate governance practices to enhance shareholder value and protect the interests of stakeholders[108]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a diverse range of business experience and expertise[113]. - The independent non-executive directors bring diverse expertise from various industries, contributing to the board's effectiveness[99][102][103]. - The company has adopted the corporate governance code as per the listing rules and has complied with it throughout the year, except for the deviation regarding the separation of roles between the Chairman and CEO[109]. - The board has adopted a diversity policy, considering factors such as gender, age, and professional experience to enhance performance and sustainable development[116]. Community Engagement - The group plans to continue its commitment to corporate social responsibility by contributing to local community initiatives, including donations to sports and charitable foundations[188]. - The group has expanded its donations to the Flyover Kai Tak Sports Fund Limited and the Jun Wo Charitable Foundation Limited to support community sports development and various charitable activities[188].

Financial Performance - The company recorded revenue of approximately HKD 262.1 million for the six months ended September 30, 2021, representing an increase of 28.7% compared to HKD 203.6 million for the same period in 2020[4]. - Net profit slightly decreased from approximately HKD 6.2 million for the six months ended September 30, 2020, to approximately HKD 5.6 million for the current period, primarily due to the impact of non-recurring government subsidies[4]. - The gross profit increased by approximately HKD 4.0 million or 34.1% to approximately HKD 15.7 million, with a slight increase in gross margin from 5.7% to 6.0%[15]. - The basic and diluted earnings per share decreased to HKD 0.54 from HKD 0.59[37]. - The profit before tax for the six months ended September 30, 2021, was HKD 5,386,000, a decrease from HKD 6,158,000 in the same period of 2020, reflecting a decline of approximately 12.5%[67]. Revenue Breakdown - Revenue from construction machinery leasing increased to approximately HKD 176.4 million, accounting for 67.3% of total revenue, compared to HKD 108.6 million and 53.4% in the previous period[13]. - Revenue from construction engineering decreased to HKD 85,674,000 in 2021 from HKD 94,995,000 in 2020, a decline of 9.3%[54]. - Revenue from construction machinery leasing significantly increased to HKD 176,445,000 in 2021, up 62.5% from HKD 108,644,000 in 2020[54]. Expenses and Liabilities - Administrative expenses rose to approximately HKD 10.9 million, an increase of about 8.2% from HKD 10.1 million in the previous period, mainly due to higher employee costs and insurance expenses[18]. - The group’s interest-bearing liabilities rose to approximately HKD 144.9 million from HKD 114.3 million, an increase of about 26.8%[22]. - The debt-to-equity ratio increased to approximately 73.3% from 59.5%, reflecting a rise of about 13.8%[22]. - The total employee cost for the period was approximately HKD 95.2 million, compared to HKD 70.9 million for the six months ended September 30, 2020, marking an increase of about 34.5%[28]. Cash Flow and Investments - The company reported a net cash inflow from operating activities of HKD 47,619,000 for the six months ended September 30, 2021, compared to HKD 23,820,000 for the same period in 2020, representing a 99.5% increase[45]. - The net cash used in investing activities was HKD 33,243,000 for the six months ended September 30, 2021, compared to HKD 11,276,000 in 2020, indicating increased investment activity[45]. - The company raised new bank loans amounting to HKD 36,421,000 during the period, compared to HKD 28,992,000 in the previous year[45]. Assets and Equity - The company’s total equity as of September 30, 2021, was HKD 197,584,000, an increase from HKD 194,415,000 as of September 30, 2020[43]. - Total assets increased to HKD 432,166,000 as of September 30, 2021, compared to HKD 389,737,000 as of March 31, 2021, reflecting a growth of approximately 10.8%[60]. - Trade receivables as of September 30, 2021, amounted to HKD 176,909,000, with a provision for impairment of HKD 25,664,000, leading to a net trade receivable of HKD 151,245,000[73]. Corporate Governance - The group has adhered to corporate governance standards, ensuring transparency and accountability, although the position of CEO remains vacant as of the report date[104]. - The company believes that effective corporate governance practices are essential for enhancing shareholder value and protecting stakeholder interests[103]. - The company confirms compliance with the standard code of conduct for securities transactions by directors during the reporting period[106]. Future Outlook - The company remains cautiously optimistic about the prospects of the foundation industry and construction machinery leasing business in Hong Kong[5]. - The group anticipates steady growth in the foundation construction sector due to an expected increase in tender opportunities from public and private institutions[24]. - The company plans to continue enhancing operational efficiency and profitability while actively seeking potential opportunities to broaden revenue sources and enhance shareholder value[5].

Financial Performance - The group's revenue increased by approximately 39.6% to about HKD 435.6 million for the year ended March 31, 2021, compared to HKD 312.1 million for the previous year[7]. - The loss attributable to the company's owners decreased from approximately HKD 15.6 million in the previous year to a profit of about HKD 3.7 million for the current year[7]. - The group's total revenue for the year was approximately HKD 435.6 million, an increase of 39.6% from HKD 312.1 million in the previous year[19]. - Revenue from construction projects was approximately HKD 194.5 million, accounting for 44.6% of total revenue, up from 37.9% in the previous year[20]. - Revenue from construction machinery leasing was approximately HKD 241.1 million, representing 55.4% of total revenue, down from 62.1% in the previous year[23]. - The group's gross profit increased to approximately HKD 21.9 million, with a gross profit margin of 5.0%, compared to HKD 13.3 million and 4.3% in the previous year[24]. - Other income for the year was approximately HKD 16.0 million, a significant increase of 255.9% from HKD 4.5 million in the previous year, mainly due to non-recurring government subsidies[27]. - The net profit for the year was approximately HKD 3.7 million, a turnaround from a loss of HKD 15.6 million in the previous year[30]. Business Operations - The group secured two new projects and obtained nine new contracts from existing projects, totaling approximately HKD 251.7 million[7]. - The construction machinery leasing business improved significantly due to the demand from new foundation projects and infrastructure works in Hong Kong[12]. - The group has terminated the operation of the construction machinery sales segment due to difficulties in identifying potential customers[12]. - The group will continue to pursue new construction projects and leasing arrangements in Hong Kong for business development[13]. - The group plans to actively participate in bidding for new public and private construction projects to maintain market share amid increasing competition[20]. - The group has six ongoing projects with a total uncompleted contract value of approximately HKD 148.1 million, expected to be completed by March 31, 2023[20]. Government Support and Market Outlook - The group received non-recurring government subsidies related to COVID-19, which contributed to the overall performance improvement[12]. - The construction market in Hong Kong is expected to reverse in the coming years due to increased government investment in public works[11]. - The group anticipates a rebound in the construction industry due to government commitments to infrastructure spending averaging HKD 100 billion annually over the next few years[45]. Financial Position and Liabilities - The total interest-bearing liabilities as of March 31, 2021, were approximately HKD 114.3 million, an increase from HKD 100.3 million in the previous year, with a debt-to-equity ratio of 59.5%[32]. - The retained earnings available for distribution to shareholders as of March 31, 2021, were approximately HKD 37.085 million[61]. - The group reported no significant contingent liabilities as of March 31, 2021, and had no major investments or acquisitions during the year[39][41]. Employee and Labor Relations - The group employed 512 staff as of March 31, 2021, up from 386 in 2020, with total employee costs amounting to approximately HKD 149.7 million, an increase from HKD 116.7 million in 2020[35]. - The employee turnover rate for the year was approximately 8%, with 27% of female employees leaving and 7% of male employees[160]. - The company has maintained competitive salary and benefits levels for employees, with no significant labor disputes reported during the year[35]. - The company provides a full set of personal protective equipment to employees on construction sites[166]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and transparency in operations[110]. - The board consists of five members, including two executive directors and three independent non-executive directors, enhancing decision-making with diverse expertise[113]. - The company emphasizes the importance of effective corporate governance practices to enhance shareholder value and protect stakeholder interests[109]. - The independent non-executive directors have confirmed their independence annually, complying with the listing rules[114]. - The company has a strong focus on internal controls and accountability within its governance framework[109]. Environmental and Social Responsibility - The group has been actively implementing environmentally friendly measures to minimize adverse environmental impacts[92]. - The company has maintained compliance with environmental regulations, with no significant non-compliance issues reported during the year[153]. - The company is committed to continuous improvement in energy efficiency and environmental performance, verified by ISO 14001 certification[155]. - The company has implemented various energy-saving measures and adopted clean energy strategies to mitigate environmental impact[151]. - The group is committed to corporate social responsibility by contributing to the local community, including donations to the Hong Kong Construction Association[176]. Audit and Financial Reporting - The independent auditor, Shinewing (HK) CPA Limited, audited the consolidated financial statements for the year ending March 31, 2021, and is eligible for reappointment at the annual general meeting[87]. - The company is responsible for preparing financial statements that are true and fair according to the Hong Kong Financial Reporting Standards and the Companies Ordinance[194]. - The auditor's responsibility is to provide reasonable assurance that the financial statements are free from material misstatement due to fraud or error[196]. - The independent auditor's report was issued on June 28, 2021, confirming the appropriateness of the going concern basis of accounting[200].

Revenue Growth - The group's revenue for the six months ended September 30, 2020, was approximately HKD 203.6 million, a significant increase from HKD 124.4 million for the same period in 2019, representing a growth of 63.5%[9]. - Revenue for the six months ended September 30, 2020, was approximately HKD 203.6 million, compared to HKD 124.4 million for the same period in 2019, representing a significant increase[37]. - For the six months ended September 30, 2020, the company's revenue was HKD 203,639,000, a significant increase of 63.5% compared to HKD 124,445,000 for the same period in 2019[51]. - The construction segment generated revenue of HKD 94,995,000, up from HKD 33,089,000, reflecting a growth of 187.5% year-over-year[51]. - The construction machinery leasing segment reported revenue of HKD 108,644,000, an increase of 19.0% from HKD 91,356,000 in the previous year[51]. Profitability and Margins - The gross profit for the period was approximately HKD 11.7 million, down from HKD 13.1 million in the previous year, resulting in a gross profit margin decrease from 10.6% to 5.7%[18]. - Gross profit for the period was approximately HKD 11.7 million, down from HKD 13.1 million in the previous year, indicating pressure on margins[37]. - Net profit increased from approximately HKD 1.2 million for the six months ended September 30, 2019, to approximately HKD 6.2 million, mainly due to the recognition of a non-recurring government subsidy of approximately HKD 5.9 million[22]. - The group achieved a profit before tax of HKD 5,386,000 for the six months ended September 30, 2020, compared to HKD 2,203,000 for the same period in 2019, indicating an increase of about 144.5%[58]. Government Support and Economic Conditions - Other income increased to approximately HKD 7.6 million from HKD 2.2 million in the previous year, primarily due to non-recurring government subsidies related to COVID-19 amounting to approximately HKD 5.9 million[19]. - The group faced challenges due to the COVID-19 pandemic, which impacted global economic activities, but government financial measures provided some relief[6]. - The group received government subsidies of HKD 5,891,000 due to the COVID-19 pandemic, which was not present in the previous year[64]. Project and Contract Management - The group had a total of eight ongoing projects with an uncompleted contract value of approximately HKD 205.1 million as of September 30, 2020[10]. - The group received a new project and secured seven contracts from existing projects with a total contract value of approximately HKD 237.5 million during the period[10]. - The construction machinery leasing income increase was driven by rising demand for machinery in infrastructure and reclamation projects in Hong Kong[16]. Financial Position and Cash Flow - As of September 30, 2020, the group had bank balances of approximately HKD 6.2 million, down from approximately HKD 13.5 million as of March 31, 2020, with interest-bearing liabilities of approximately HKD 93.1 million, down from approximately HKD 100.3 million[23]. - The debt-to-equity ratio as of September 30, 2020, was approximately 47.9%, a decrease of about 5.4% from 53.3% as of March 31, 2020[23]. - Operating cash flow for the six months was HKD 23,820,000, compared to HKD 31,423,000 in 2019, indicating a decrease of 24.3%[45]. - The net cash used in investing activities was HKD 11,276,000, a reduction from HKD 33,312,000 in the prior year, showing improved cash management[45]. - The total equity attributable to owners increased to HKD 205,082,000 as of September 30, 2020, from HKD 203,855,000 at the beginning of the period[43]. Employee and Administrative Expenses - The group employed 391 staff as of September 30, 2020, compared to 303 staff a year earlier, with total employee costs of approximately HKD 70.9 million, up from approximately HKD 50.2 million for the six months ended September 30, 2019[30]. - Administrative expenses for the period were approximately HKD 11.1 million, an increase of about 8.7% compared to HKD 10.2 million for the six months ended September 30, 2019, primarily due to a trade receivables loss provision of approximately HKD 1.0 million[21]. Asset Management - Total assets as of September 30, 2020, amounted to HKD 384,675,000, an increase from HKD 362,788,000 as of March 31, 2020, representing a growth of approximately 6.5%[61]. - Total liabilities increased to HKD 190,277,000 as of September 30, 2020, from HKD 174,547,000 as of March 31, 2020, reflecting an increase of about 9.0%[62]. - Trade receivables increased to HKD 190,334,000 as of September 30, 2020, compared to HKD 161,738,000 as of March 31, 2020, reflecting a growth of 17.6%[78]. - Contract assets totaled HKD 46,715,000 as of September 30, 2020, up from HKD 39,666,000 as of March 31, 2020, representing a growth of 17.5%[83]. - Trade and other payables increased to HKD 88,268,000 as of September 30, 2020, compared to HKD 64,291,000 as of March 31, 2020, indicating a rise of 37.3%[86]. Shareholder and Governance - The company did not declare or recommend any dividends for the six months ended September 30, 2020, nor since the reporting date[71]. - The basic and diluted earnings per share for the six months ended September 30, 2020, were HKD 5.93, a significant increase from HKD 1.18 in 2019, representing a growth of 408%[73]. - The company has not engaged in any significant acquisitions or disposals during the period[33]. - The company has not granted any share options under its share option scheme since its adoption, indicating a focus on maintaining current equity structure[105]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated interim financial information for the period[125].

Financial Performance - The group's revenue increased by approximately 41.0% to about HKD 312.1 million for the year ended March 31, 2020, compared to HKD 221.3 million for the previous year[6]. - The loss attributable to owners of the company decreased significantly from approximately HKD 45.5 million in the previous year to about HKD 15.6 million in the current year[6]. - The improvement in performance was primarily due to the commencement of infrastructure projects in Hong Kong, leading to a substantial increase in revenue from construction machinery leasing[6]. - The company's total revenue for the year was approximately HKD 312.1 million, an increase of 41.0% from HKD 221.3 million in the previous year[18]. - Revenue from construction projects was approximately HKD 118.4 million, accounting for 37.9% of total revenue, up from HKD 82.8 million (37.4%) in the previous year[19]. - Revenue from construction machinery leasing was approximately HKD 193.7 million, representing 62.1% of total revenue, an increase from HKD 132.0 million (59.6%) in the previous year[21]. - The gross profit for the year was approximately HKD 13.3 million, a significant improvement from a gross loss of HKD 19.3 million in the previous year, with a gross profit margin of 4.3%[23]. - The net loss for the year was approximately HKD 15.6 million, a reduction from a loss of HKD 45.5 million in the previous year, primarily due to increased revenue and improved gross margins[25]. - The company reported a pre-tax loss of HKD 14,422,000 for 2020, improving from a loss of HKD 44,725,000 in 2019[187]. - Total comprehensive loss for the year was HKD 15,618,000, down from HKD 45,499,000 in the previous year[187]. - Basic and diluted loss per share improved to HKD 1.50 compared to HKD 4.39 in 2019[187]. Business Operations - Business operations have gradually resumed since March 2020 after a temporary suspension due to the COVID-19 pandemic[12]. - The company aims to enhance its competitiveness and profitability through improved bidding strategies and service offerings[7]. - The company will continue to focus on undertaking new construction projects and machinery leasing arrangements in Hong Kong for future business development[13]. - The company has eight ongoing projects with a total uncompleted contract value of HKD 32.3 million, with six expected to be completed by March 31, 2021[19]. - The group secured a foundation contract worth approximately HKD 89.7 million after March 31, 2020, contributing to a total uncompleted contract value of about HKD 122.0 million[40]. - The company is actively participating in both public and private sector construction projects to mitigate market risks associated with government infrastructure projects[16]. Investments and Acquisitions - The company established a subsidiary in Hong Kong for aluminum formwork system leasing, acquiring 51% of the issued shares for HKD 5,100[11]. - The company sold all equity in a joint venture aimed at renting aluminum formwork systems in China due to the changing business environment[11]. - The group has not engaged in any significant investments or acquisitions during the year[35]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $30 million allocated for potential deals[22]. Environmental and Social Responsibility - The company has invested in upgrading its rental fleet with new environmentally friendly equipment to ensure the provision of high-quality and reliable machinery to the construction market[10]. - The company has implemented energy-saving measures and adopted cleaner energy sources to reduce carbon emissions[142]. - The company has not produced any hazardous waste during the reporting year and complied with environmental regulations[144]. - The company encourages a paperless office environment, promoting electronic communication and document usage to minimize paper consumption[145]. - The total greenhouse gas emissions decreased from 4,571 tons in 2019 to 3,439 tons in 2020, representing a reduction of approximately 24.7%[143]. - The company has established a recycling program to promote waste reduction and resource conservation among employees[145]. - The company is committed to enhancing its environmental, social, and governance (ESG) performance through regular assessments and policy implementations[138]. Corporate Governance - The board emphasized the importance of corporate governance, ensuring transparency and accountability in all operations[22]. - The company maintained compliance with all regulatory requirements, reinforcing its commitment to good corporate governance practices[22]. - The board held five regular meetings and one annual general meeting during the year, with all executive directors attending all meetings[112]. - The audit committee, composed of three independent non-executive directors, held two meetings to review the audited financial statements for the year ended March 31, 2019[118]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and industry experience in board composition[113]. - The company has established three committees: audit committee, nomination committee, and remuneration committee, with specific members assigned to each[116]. - The company has adopted a dividend policy that considers actual and expected financial performance, retained earnings, and other internal or external factors when deciding on dividend declarations[129]. Financial Position - As of March 31, 2020, the group's bank balance was approximately HKD 13.5 million, a decrease from HKD 42.7 million in 2019, primarily due to the acquisition of new machinery[27]. - The total interest-bearing liabilities as of March 31, 2020, amounted to approximately HKD 100.3 million, down from HKD 104.8 million in 2019, resulting in a debt-to-equity ratio of about 53.3%[27]. - The group employed 386 staff as of March 31, 2020, with total employee costs of approximately HKD 116.7 million, compared to HKD 89.0 million in 2019[30]. - Non-current assets increased to HKD 145,130,000 in 2020 from HKD 113,566,000 in 2019[188]. - Current assets decreased to HKD 217,658,000 in 2020 from HKD 237,708,000 in 2019[188]. - Total liabilities decreased to HKD 174,294,000 in 2020 from HKD 147,369,000 in 2019[190]. - Cash and cash equivalents at year-end were HKD 13,507,000, down from HKD 42,655,000 at the beginning of the year[194]. - Operating cash flow for 2020 was HKD 70,528,000, an increase from HKD 45,113,000 in 2019[193]. Compliance and Risk Management - The independent auditor has audited the consolidated financial statements for the year ending March 31, 2020[83]. - The independent auditor's report emphasizes the importance of evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures made by the company's directors[181]. - The audit committee is responsible for overseeing the financial reporting process of the company[180]. - The company engaged an independent consultant to review the effectiveness of its risk management and internal control systems, implementing recommendations to enhance internal controls[126]. - The board believes that the risk management and internal control systems remain effective for the year[126]. Employee and Labor Relations - The company has implemented strict recruitment procedures to prevent child labor and forced labor, with no incidents reported in the fiscal year ending March 31, 2020[157]. - The employee turnover rate for the year was approximately 3%, with male employees having a turnover rate of 3% and female employees at 6%[151]. - The company reported a total of 6 work-related injuries in 2020, an increase from 5 in 2019, with a total of 814 workdays lost due to injuries[154]. - The company emphasizes training and development, providing equal training opportunities for employees at all levels[156]. Customer Relations - The group has established dedicated customer communication channels to effectively handle inquiries and feedback[159]. - The largest customer accounted for 17.63% of total revenue in 2020, down from 34.3% in 2019[75]. - The top five customers collectively represented 51.83% of total revenue in 2020, compared to 50.4% in 2019[75]. - The group has not received any customer complaints regarding service and construction quality for the year ended March 31, 2020[160].

Revenue Performance - For the six months ended September 30, 2019, the group's total revenue was approximately HKD 124.4 million, an increase of 13.2% compared to HKD 109.8 million for the same period in 2018[8]. - Revenue from construction engineering decreased to approximately HKD 33.1 million, accounting for 26.6% of total revenue, down from 37.3% in the previous year[9]. - Revenue from construction machinery leasing significantly increased to approximately HKD 91.4 million, representing 73.4% of total revenue, compared to 57.3% in the same period last year[13]. - The group reported revenue of HKD 124.4 million for the six months ended September 30, 2019, an increase from HKD 109.8 million in the same period of 2018[36]. - Revenue from construction contracts decreased to HKD 33,089,000, down 19.4% from HKD 41,022,000 in the previous year[72]. - Revenue from construction machinery leasing services increased significantly to HKD 91,356,000, up 45.3% from HKD 62,919,000 in 2018[72]. Profitability - The gross profit turned from a loss of approximately HKD 19.9 million in 2018 to a profit of approximately HKD 13.1 million in 2019, with a gross profit margin of 10.6%[15]. - The net profit for the six months ended September 30, 2019, was approximately HKD 1.2 million, a significant improvement from a loss of approximately HKD 30.8 million for the same period in 2018, primarily due to a shift from gross loss to gross profit[19]. - The group reported a segment profit of HKD 6,480,000 for the six months, compared to a segment loss of HKD 27,900,000 in the same period last year[76]. - For the six months ended September 30, 2019, the company reported a profit of HKD 1,227,000 compared to a loss of HKD 30,787,000 in the same period of 2018[88]. Expenses and Costs - Administrative expenses decreased by approximately 21.1% to HKD 10.2 million from HKD 13.0 million in the previous year, primarily due to the absence of trade receivables impairment losses in the current period[16]. - The total employee cost for the six months ended September 30, 2019, was approximately HKD 50.2 million, compared to HKD 42.6 million for the same period in 2018, with the number of employees increasing to 303 from 222[26]. - The company's financing costs totaled HKD 2,902,000 for the six months ended September 30, 2019, a slight increase from HKD 2,781,000 in 2018[83]. - The company recorded depreciation of property, plant, and equipment amounting to HKD 27,425,000 for the six months ended September 30, 2019, down from HKD 28,118,000 in 2018[85]. Assets and Liabilities - As of September 30, 2019, the group had bank balances of approximately HKD 5.3 million, down from HKD 42.7 million as of March 31, 2019, while interest-bearing liabilities increased to approximately HKD 117.9 million from HKD 104.8 million[20]. - The debt-to-equity ratio as of September 30, 2019, was approximately 57.5%, an increase of about 6.1% from 51.4% as of March 31, 2019[20]. - Total liabilities increased to HKD 172,742,000 from HKD 138,423,000, indicating a rise of about 24.8%[39]. - The company's total equity as of September 30, 2019, was HKD 205,077,000, slightly up from HKD 203,855,000 as of March 31, 2019, showing a growth of approximately 0.6%[39]. - Total assets as of September 30, 2019, amounted to HKD 377,819,000, an increase from HKD 351,274,000 as of March 31, 2019[79]. Investments and Projects - The group established a subsidiary in Hong Kong, investing HKD 5,100 to acquire 51% of the shares in a new aluminum formwork leasing service company[5]. - The group has nine ongoing projects with a total outstanding contract amount of approximately HKD 130.3 million, with six projects expected to be completed by March 31, 2020[9]. - The group has committed to invest approximately HKD 1.13 million in a joint venture in Shenzhen, with no capital injected as of September 30, 2019[28]. - The company invested approximately HKD 31,920,000 in property, plant, and equipment during the six months ended September 30, 2019, compared to HKD 7,088,000 in the same period of 2018[90]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with its provisions for the six months ending September 30, 2019, except for the deviation regarding the separation of roles between the Chairman and CEO[115]. - The company has confirmed compliance with the standard code for securities trading by all directors for the six months ending September 30, 2019[116]. - The company has not appointed a CEO, but the board believes that the balance of power and authority is maintained through its operations[115]. - The company will continue to strengthen its corporate governance practices to align with its business operations and development[115]. Lease Liabilities and Right-of-Use Assets - The adoption of HKFRS 16 resulted in a recognition of lease liabilities amounting to approximately HKD 74,499,000 as of April 1, 2019[58]. - The carrying amount of right-of-use assets as of September 30, 2019, was HKD 87,441,000, compared to HKD 61,727,000 on April 1, 2019[61]. - The group recognized lease liabilities based on the present value of remaining lease payments[54]. - The total carrying value of property, plant, and equipment increased from HKD 107,371,000 to HKD 108,751,000 due to the adoption of HKFRS 16[58]. - The group’s right-of-use assets are depreciated over the shorter of the lease term or the useful life of the related asset[69]. Shareholder Information - As of September 30, 2019, Mr. Hu Yongheng holds 610,995,000 shares, representing 58.89% of the company, through a controlled corporation[118]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending September 30, 2019[126]. - There are no other individuals with recorded interests in the company's shares or related securities as of September 30, 2019, apart from those disclosed[122].

Financial Performance - The group's revenue decreased by approximately 42.0% to about HKD 221.3 million, down from HKD 381.8 million in the previous year[5]. - Shareholders' profit turned from approximately HKD 5.7 million in the previous year to a loss of about HKD 45.5 million for the current year[5]. - The decline in revenue was primarily due to the completion of most construction projects and severe competition in acquiring new business[5]. - Total revenue for the year was approximately HKD 221.3 million, a decrease of 42.1% from HKD 381.8 million in 2018[16]. - The group reported a net loss of approximately HKD 45.5 million compared to a profit of HKD 5.7 million in the previous year[24]. - The group’s total gross loss was approximately HKD 19.3 million, with a gross loss margin of 8.7%, down from a gross profit of HKD 36.6 million (9.6%) in 2018[22]. - The company reported a loss before tax of HKD 44,725,000, a significant decline from a profit of HKD 7,961,000 in 2018[183]. - Net loss attributable to shareholders for the year was HKD 45,499,000, compared to a profit of HKD 5,713,000 in the previous year[183]. - Basic and diluted loss per share was HKD 4.39, compared to earnings of HKD 0.55 per share in 2018[183]. - Total assets decreased to HKD 249,164,000 in 2019 from HKD 311,556,000 in 2018, reflecting a decline of 20%[184]. - Current assets decreased to HKD 237,708,000 from HKD 327,925,000, a reduction of 27.5%[184]. - Cash and cash equivalents decreased to HKD 42,655,000 from HKD 77,441,000, a decline of 45%[184]. Business Strategy and Operations - The group plans to enhance its bidding strategy and improve product and service offerings to increase competitiveness and profitability[6]. - The introduction of new environmentally friendly equipment is part of the strategy to upgrade the rental fleet and ensure quality service to the construction market[9]. - The group is optimistic about the future demand for construction machinery due to upcoming major projects like the Chek Lap Kok Airport third runway system[9]. - The company will continue to focus on new construction projects, rental arrangements, and the sale of construction machinery for business development[11]. - The group is actively participating in bidding for new public and private construction projects to maintain market share[17]. Financial Management and Risks - The group has identified operational risks, including adverse weather and geological issues, which may impact project costs and timelines[12]. - Measures such as reallocating human resources and hiring additional staff will be taken to mitigate project delays[13]. - The company regularly conducts aging analysis of accounts receivable to manage financial liquidity pressures[13]. - The expected credit loss provision for trade receivables and contract assets was approximately HKD 18,452,000 and HKD 97,000, respectively[170]. - The company adopted the expected credit loss model for estimating the loss provisions for trade receivables and contract assets starting from April 1, 2018[170]. Employee and Corporate Governance - The group employed 263 employees as of March 31, 2019, down from 279 in 2018, with total employee costs amounting to approximately HKD 89.0 million, an increase from HKD 86.9 million in 2018[29]. - The company has maintained competitive salary and benefits levels for employees, with performance-based rewards implemented through a bonus system[29]. - The board consists of five members, including two executive directors and three independent non-executive directors, complying with regulations[108]. - The chairman and CEO roles are not held by the same individual, maintaining a separation of responsibilities[105]. - The company emphasizes effective corporate governance practices to enhance shareholder value and protect stakeholder interests[104]. - The independent non-executive directors confirmed their independence annually, adhering to the listing rules[109]. Environmental and Social Responsibility - The company is committed to sustainability and has implemented environmentally friendly measures to minimize adverse impacts on the environment[88]. - The company has implemented measures to reduce greenhouse gas emissions, recognizing the importance of carbon footprint assessment in mitigating climate change[138]. - The company has received ISO 14001 certification for its waste management and resource supply in construction projects, ensuring ongoing environmental compliance[145]. - The company has not generated any hazardous waste and has complied with all relevant environmental regulations without any significant non-compliance issues[142]. - The company has made contributions exceeding HKD 100,000 to various organizations focused on youth development and promoting traditional Chinese culture[161]. Customer and Supplier Relations - The largest customer accounted for 34.3% of total revenue, an increase from 21.3% in 2018[75]. - The top five customers collectively accounted for 50.4% of total revenue, slightly down from 51.2% in the previous year[75]. - All suppliers used by the company are sourced locally from Hong Kong to reduce transportation costs, ensuring all services or goods are procured from approved suppliers[156]. - The company has not received any customer complaints regarding its services during the year, indicating a strong commitment to product responsibility[159]. Audit and Compliance - The independent auditor, Shinewing (HK) CPA Limited, has audited the consolidated financial statements for the year ended March 31, 2019[83]. - The audit committee is responsible for overseeing the financial reporting process of the company[176]. - The total remuneration for the auditor, including audit and non-audit services, amounted to HKD 1,180,000, with audit services costing HKD 894,000 and non-audit services costing HKD 286,000[128].