Financial Performance - The total revenue for the period was approximately HKD 149,647,000, an increase of about HKD 36,628,000 or 32.4% compared to HKD 113,019,000 for the same period last year[8]. - Gross profit for the period was approximately HKD 21,736,000, with a gross profit margin of about 14.5%, compared to HKD 15,987,000 and 14.1% for the same period last year[10]. - The net profit for the period was approximately HKD 6,287,000, compared to HKD 5,390,000 for the same period last year[16]. - Operating profit increased to HKD 8,055,000, a rise of 27.1% from HKD 6,338,000 in the previous year[52]. - The company reported a total comprehensive income of HKD 6,287,000 for the period, up from HKD 5,390,000 in 2021[52]. - Basic and diluted earnings per share for the period were HKD 0.92, compared to HKD 0.79 in the same period last year[52]. - For the six months ended September 30, 2022, the company reported a profit attributable to equity holders of HKD 6,287,000, compared to HKD 5,390,000 for the same period in 2021, representing an increase of approximately 16.7%[84]. Income and Expenses - Other income increased by approximately 152.4% to HKD 5,478,000, primarily due to government subsidies from the "Employment Support Scheme" amounting to HKD 2,526,000[12]. - Administrative expenses decreased by approximately HKD 315,000 or 2.6% to HKD 11,816,000 due to effective cost control by management[14]. - Employee expenses, including director remuneration, amounted to HKD 30,063,000 for the six months ended September 30, 2022, compared to HKD 21,183,000 in the same period last year, reflecting a year-on-year increase of approximately 42%[76]. - Financing costs for the six months ended September 30, 2022, totaled HKD 1,768,000, compared to HKD 948,000 in the previous year, indicating an increase of approximately 86%[77]. - The group reported a net loss from the sale of property, plant, and equipment amounting to HKD 7,343,000 for the six months ended September 30, 2022[72]. Assets and Liabilities - As of September 30, 2022, the bank balance was approximately HKD 31,769,000, an increase from HKD 14,342,000 as of March 31, 2022[17]. - Total assets as of September 30, 2022, were HKD 191,471,000, compared to HKD 198,168,000 as of March 31, 2022[53]. - The net asset value increased to HKD 172,549,000 from HKD 166,262,000 as of March 31, 2022[54]. - The total carrying value of bank loans as of September 30, 2022, is approximately HKD 76,208,000, an increase from HKD 63,095,000 as of March 31, 2022, representing a growth of 20.5%[101]. - Trade receivables decreased to HKD 13,139,000 as of September 30, 2022, from HKD 20,975,000 as of March 31, 2022, representing a decline of about 37.4%[93]. - Trade payables decreased to HKD 18,026,000 as of September 30, 2022, from HKD 22,843,000 as of March 31, 2022, reflecting a decline of 21.3%[103]. Capital and Shareholder Information - The major shareholder, Creative Elite Global Limited, holds 495,000,000 shares, representing 72.29% of the company's equity[27]. - The board has decided not to declare an interim dividend for the six months ending September 30, 2022[40]. - The company’s issued and fully paid ordinary shares remain at 684,750,000 shares as of both September 30, 2022, and March 31, 2022[105]. Corporate Governance and Outlook - The board maintains a cautiously optimistic outlook for the business, anticipating stable demand for foundation engineering in Hong Kong[7]. - The board emphasizes a commitment to high standards of corporate governance, adhering to all applicable codes during the reporting period[41]. - The company has not engaged in any buybacks, sales, or redemptions of its listed securities during the reporting period[34]. Employment and Labor Relations - As of September 30, 2022, the group employed 85 staff members, with total compensation costs amounting to approximately HKD 30,063,000, compared to HKD 21,183,000 for the same period in 2021, reflecting a year-on-year increase of 42.03%[24]. - There were no significant labor disputes or difficulties in recruiting and retaining experienced staff during the reporting period[24]. - The remuneration for directors and key management personnel for the six months ended September 30, 2022, is approximately HKD 3,681,000, a decrease from HKD 4,062,000 for the same period last year[108]. Capital Expenditures - Capital expenditures for property, plant, and equipment amounted to approximately HKD 28,820,000 for the six months ended September 30, 2022, compared to HKD 16,818,000 for the same period in 2021, indicating a significant increase of about 71.5%[86]. - The company has no capital commitments as of September 30, 2022, a decrease from HKD 24,220,000 as of March 31, 2022[25].

Financial Performance - The total revenue for the fiscal year ended March 31, 2022, was approximately HKD 213,665,000, a decrease of about 23.4% compared to HKD 279,022,000 in the previous year[13] - Gross profit for the fiscal year was approximately HKD 32,536,000, with a gross profit margin of about 15.2%, an improvement from 2.4% in the previous year[15] - The company recorded a net profit of approximately HKD 11,192,000 for the fiscal year, compared to a net loss of HKD 14,475,000 in the previous year[21] - Other income decreased by approximately 52.9% to HKD 3,505,000, primarily due to the absence of government subsidies from the "Employment Support Scheme" amounting to HKD 4,058,000[17] - Administrative expenses increased by approximately 2.1% to HKD 25,915,000, in line with the inflation rate[19] - The total cost of employee compensation, including directors' remuneration, was approximately HKD 50,320,000 for the year, down from HKD 68,260,000 in the previous year[26] Projects and Contracts - The company had ten ongoing projects with a total contract value of approximately HKD 351,211,000 as of March 31, 2022[11] - The company was awarded two new foundation engineering projects after the fiscal year, with a contract value of approximately HKD 112,006,000[11] Debt and Financial Position - As of March 31, 2022, the group's bank balance was approximately HKD 14,342,000, a decrease from HKD 21,780,000 on March 31, 2021[22] - The group's interest-bearing debt as of March 31, 2022, was approximately HKD 76,445,000, up from HKD 32,630,000 on March 31, 2021[22] - The debt-to-equity ratio as of March 31, 2022, was approximately 45.98%, significantly increased from 21.04% on March 31, 2021, due to higher bank loans and lease liabilities[22] - The total net book value of properties, plants, and machinery held under finance leases was approximately HKD 11,379,000 as of March 31, 2022, compared to HKD 9,111,000 on March 31, 2021[24] - The group had approximately HKD 11,238,000 in bank deposits pledged for bank financing as of March 31, 2022, down from HKD 19,216,000 on March 31, 2021[24] Future Outlook and Strategy - The company remains cautiously optimistic about future business prospects, driven by government-led infrastructure and housing projects[8] - The company plans to closely monitor market developments and adjust business strategies as needed to maintain competitiveness in the construction industry[12] - The company will explore various potential business opportunities to expand revenue sources and maximize shareholder returns[12] Corporate Governance - The company has adhered to all applicable corporate governance codes since its listing date[32] - The company has implemented an adequate internal control system and risk management procedures[132] - The board consists of six directors, including three executive directors and three independent non-executive directors[130] - The company has received annual confirmations of independence from all independent non-executive directors[83] - The company has adopted a shareholder communication policy to ensure timely access to information for shareholders[170] Shareholder Information - The company holds 495,000,000 shares, representing 72.29% ownership by Mr. Chen Liwei through Creative Elite Global Limited[95] - Ms. Chen Qianying holds 7,140,000 shares, accounting for 1.04% of the company's total shares[95] - The group did not declare or recommend any dividends during the reporting period, consistent with the previous year[70] Risk Management - Key risks identified include project changes that may affect revenue generation, leading to potential adverse impacts on profitability[71] - The construction industry is facing intensified competition due to a decrease in available projects and rising construction costs, which has diluted profit margins[72] - The company has established a risk management policy to identify, assess, and manage significant risks affecting the business[165] Audit and Compliance - The financial statements were audited by Kaiyuan Xinde CPA Limited, with no change in auditors during the reporting period[123] - The audit committee held three meetings during the reporting period to review financial reporting principles and the effectiveness of the company's risk management and internal control systems[144] - The audit identified key audit matters, including the recognition of construction contract revenue and the assessment of credit loss provisions[189] Employee Relations - The group employed 138 staff members as of March 31, 2022, with no significant issues related to labor disputes or recruitment difficulties reported during the year[26] - The group has maintained good relationships with employees, customers, and suppliers, with no significant disputes reported during the period[65]

Financial Performance - The total revenue for the period was approximately HKD 113,019,000, a decrease of about HKD 12,477,000 or 9.9% compared to HKD 125,466,000 for the same period last year[18]. - The gross profit for the period was approximately HKD 15,987,000, with a gross profit margin of approximately 14.1%, compared to a gross loss of HKD 7,847,000 and a gross loss margin of 6.3% for the same period last year[20]. - The net profit for the period was approximately HKD 5,390,000, a significant improvement from a net loss of approximately HKD 15,484,000 for the same period last year[24]. - Revenue for the six months ended September 30, 2021, was HKD 113,019,000, a decrease of 9.8% compared to HKD 125,466,000 for the same period in 2020[57]. - Gross profit for the same period was HKD 15,987,000, compared to a gross loss of HKD 7,847,000 in the previous year, indicating a significant recovery[57]. - Operating profit for the six months was HKD 6,338,000, a turnaround from an operating loss of HKD 15,172,000 in the prior year[57]. - The company reported a net profit of HKD 5,390,000 for the period, compared to a net loss of HKD 15,484,000 in the previous year[57]. - The operating profit for the six months ended September 30, 2021, was HKD 10,108,000, compared to HKD 7,061,000 for the same period in 2020, representing an increase of approximately 43%[79]. - The group reported other income of HKD 2,170,000 for the six months ended September 30, 2021, down from HKD 5,090,000 in the same period of 2020, reflecting a decrease of approximately 57%[77]. Expenses and Cost Management - Administrative expenses for the period were approximately HKD 12,131,000, a decrease of about HKD 216,000 or 1.7% compared to HKD 12,347,000 for the same period last year, due to effective cost control[22]. - Employee expenses for the six months ended September 30, 2021, were HKD 21,183,000, a decrease of approximately 43% from HKD 37,249,000 in the same period of 2020[79]. - Depreciation expenses for property, plant, and equipment increased to HKD 7,550,000 for the six months ended September 30, 2021, compared to HKD 6,405,000 in the same period of 2020, reflecting an increase of approximately 18%[79]. - The group incurred finance costs of HKD 948,000 for the six months ended September 30, 2021, compared to HKD 312,000 in the same period of 2020, representing an increase of approximately 203%[80]. Assets and Liabilities - The group had a total of nine projects on hand with a total contract value of approximately HKD 472,800,000, four of which are expected to be completed in the next fiscal year[17]. - Total assets as of September 30, 2021, were HKD 187,867,000, a decrease from HKD 201,841,000 as of March 31, 2021[58]. - The company's cash and cash equivalents decreased to HKD 14,485,000 from HKD 21,780,000 at the beginning of the period[64]. - The company's equity as of September 30, 2021, was HKD 160,460,000, up from HKD 155,070,000 as of March 31, 2021[60]. - The total bank loans as of September 30, 2021, amounted to approximately HKD 23,364,000, an increase from HKD 19,459,000 as of March 31, 2021, representing a growth of 20%[101]. - Trade payables as of September 30, 2021, were HKD 48,102,000, up from HKD 46,672,000 as of March 31, 2021, indicating an increase of 3%[106]. - The group’s total liabilities included trade payables and other payables amounting to HKD 76,193,000 as of September 30, 2021, down from HKD 87,995,000 as of March 31, 2021, reflecting a decrease of 13%[106]. Shareholder Information - The major shareholder, Creative Elite Global Limited, holds 495,000,000 shares, representing 72.29% of the company's equity[34]. - The company’s major shareholders include individuals with significant stakes in Creative Elite Global Limited, with percentages of 45%, 28%, and 18% held by different directors[37]. - The company has not reported any changes in the ownership structure of its shares as of September 30, 2021[38]. - The weighted average number of ordinary shares used for calculating basic earnings per share remained constant at 684,750,000 shares for both periods[86]. - The group’s issued and fully paid ordinary shares as of September 30, 2021, were 684,750,000 shares, with a total value of HKD 6,848,000[108]. Corporate Governance and Future Outlook - The company maintains a high level of corporate governance and has complied with all applicable codes during the reporting period[47]. - The company’s board believes that enhancing public accountability and corporate governance will benefit the company's performance and shareholder interests[47]. - The management remains optimistic about future business prospects, citing government focus on increasing land supply for private residential and commercial buildings in Hong Kong[17]. - The company plans to continue focusing on operational efficiency and cost management to enhance profitability in the future[53]. - The group continues to focus on foundation engineering services in Hong Kong and Macau, with no independent operating segment financial information presented due to the unified resource allocation[73]. Cash Flow and Financing - Net cash generated from operating activities was HKD 3,203,000, compared to a net cash used of HKD 2,813,000 in the same period last year[64]. - The company has no current tax liabilities due to accumulated tax losses offsetting taxable profits for the period[83]. - The company has pledged its short-term deposits as collateral for bank financing[100]. - The actual interest rate for bank loans ranged from 2.75% to 5.00% as of September 30, 2021, compared to a fixed rate of 5.00% as of March 31, 2021[105]. Other Information - The company has not made any significant investments or acquisitions during the period[28][29]. - The company has not declared an interim dividend for the six months ending September 30, 2021[46]. - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2021, consistent with the previous year[85]. - The group has not reported any significant events or transactions that would materially affect the financial position and performance since the publication of the consolidated financial statements for the year ended March 31, 2021[68]. - The group has three labor claims arising from normal business operations, with no specific claim amounts determined at the time of reporting[112].

版 ........ 上 諭 集 團 控 股 有 限 公 司 SHEUNG YUE GROUP HOLDINGS LIMITED （於開曼群島註冊成立的有限公司) 股份代號:1633 公司資料2 主席報告3 管理層討論及分析4 董事及高級管理層履歷9 董事會報告 15 企業管治報告 25 獨立核數師報告 37 綜合損益及其他全面收益表 44 綜合財務狀況表 45 綜合權益變動表 47 綜合現金流量表 48 綜合財務報表附註 50 五年財務概要 112 目 錄 公司資料 2 董事會 執行董事 陳立緯先生 陳立銓先生 陳千瑩女士 獨立非執行董事 李漢雄先生銅紫荊星章，榮譽勳章，太平紳士 鄭志洪先生 黃業光先生 審核委員會 鄭志洪先生 李漢雄先生銅紫荊星章，榮譽勳章，太平紳士 黃業光先生 薪酬委員會 黃業光先生 李漢雄先生銅紫荊星章，榮譽勳章，太平紳士 鄭志洪先生 提名委員會 李漢雄先生銅紫荊星章，榮譽勳章，太平紳士 鄭志洪先生 黃業光先生 授權代表 陳立緯先生 呂舜華先生 公司秘書 呂舜華先生 核數師 開元信德會計師事務所有限公司 法律顧問 張岱樞律師事務所 主要往來銀行 香港上海滙豐銀行有限公司 大新銀行有限公 ...

Financial Performance - The total revenue for the period was approximately HKD 125,466,000, a decrease of about HKD 21,392,000 or 14.6% compared to HKD 146,858,000 for the same period last year[22] - The gross loss for the period was approximately HKD 7,847,000, resulting in a gross loss margin of about 6.3%, compared to a gross profit of HKD 2,073,000 and a gross profit margin of 1.4% in the previous year[24] - The net loss for the period was approximately HKD 15,484,000, compared to a net profit of HKD 1,101,000 for the same period last year[28] - Revenue for the six months ended September 30, 2020, was HKD 125,466 thousand, a decrease of 8.8% from HKD 146,858 thousand in the same period of 2019[69] - The company reported a gross loss of HKD 7,847 thousand compared to a gross profit of HKD 2,073 thousand in the previous year[69] - Operating loss for the period was HKD 15,172 thousand, a significant decline from an operating profit of HKD 1,197 thousand in the prior year[69] - The net loss attributable to shareholders for the period was HKD 15,484 thousand, compared to a profit of HKD 1,101 thousand in the same period last year[69] - Basic and diluted loss per share was HKD (2.26), compared to earnings of HKD 0.16 per share in the previous year[69] Expenses and Costs - Service costs for the period were approximately HKD 133,313,000, down by about HKD 11,472,000 or 7.9% from HKD 144,785,000 in the previous year[23] - Administrative expenses increased to approximately HKD 16,085,000, an increase of about HKD 2,886,000 or 21.9% compared to HKD 13,199,000 in the previous year[25] - Total employee compensation costs for the period were approximately HKD 37,249,000, compared to HKD 24,167,000 for the six months ended September 30, 2019[35] - Employee expenses increased to HKD 37,249,000 in 2020 from HKD 24,167,000 in 2019, reflecting a rise of approximately 54%[98] - The group incurred a depreciation expense of HKD 6,405,000 for property, plant, and equipment, compared to HKD 5,889,000 in the previous year, marking an increase of about 9%[98] Assets and Liabilities - As of September 30, 2020, the group's bank balance was approximately HKD 17,449,000, down from HKD 23,044,000 as of March 31, 2020[29] - Total assets as of September 30, 2020, were HKD 206,881 thousand, down from HKD 221,957 thousand as of March 31, 2020[70] - Current liabilities amounted to HKD 106,114 thousand, an increase from HKD 101,474 thousand as of March 31, 2020[70] - The group's interest-bearing debt increased to approximately HKD 17,850,000 as of September 30, 2020, compared to HKD 8,795,000 as of March 31, 2020[29] - The debt-to-equity ratio as of September 30, 2020, was approximately 11.6%, up from 5.2% as of March 31, 2020, due to an increase in bank loans[29] - The group's trade receivables amounted to HKD 19,258,000, a decrease from HKD 22,195,000 as of March 31, 2020, reflecting a reduction of approximately 13.3%[115] - The group's other receivables increased to HKD 20,923,000 as of September 30, 2020, compared to HKD 15,073,000 as of March 31, 2020, representing an increase of approximately 38.5%[115] - The group's cash and cash equivalents decreased to HKD 17,449,000 as of September 30, 2020, down from HKD 23,044,000 as of March 31, 2020, indicating a decline of approximately 24.5%[120] - The total bank loans as of September 30, 2020, were HKD 17,850,000, an increase from HKD 8,795,000 as of March 31, 2020, representing a growth of approximately 102.4%[123] Corporate Governance and Compliance - The company remains committed to high standards of corporate governance and has complied with all applicable codes during the reporting period[58] - The financial statements were prepared in accordance with Hong Kong Accounting Standards and the applicable disclosure requirements of the Listing Rules[82] Business Operations and Strategy - The group had seven projects on hand with a total contract value of approximately HKD 438,000,000, with three projects expected to be completed in the next fiscal year[17] - A new foundation engineering project was awarded after the period, with a contract value of approximately HKD 32,400,000[17] - The group plans to diversify its business in China by acquiring a portion of the issued share capital of Mianyang Chiyuan Real Estate Co., Ltd.[20] - The group aims to mitigate risks and uncertainties by tightening costs, enhancing manpower, and improving information technology and construction processes[20] - The board believes that the government's long-term policies on large infrastructure investment will increase demand for the group's services[20] Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD (2,813,000) for the six months ended September 30, 2020, compared to a net inflow of HKD 21,354,000 in the same period of 2019[77] - The net cash outflow from investing activities was HKD (10,900,000) for the six months ended September 30, 2020, compared to HKD (27,350,000) in the previous year[77] - The net cash inflow from financing activities was HKD 8,118,000, an increase from HKD 6,683,000 in the same period of 2019[77] - The group did not declare an interim dividend for the six months ended September 30, 2020, consistent with the previous year[104] - There were no significant investments or acquisitions during the period[32][33] Shareholder Information - Major shareholders include Creative Elite Global Limited, holding 495,000,000 shares, representing 72.29% of the total shares[48] - The total equity attributable to owners of the company was HKD 154,061,000 as of September 30, 2020, compared to HKD 169,314,000 at the end of the previous period[74] - The company's retained earnings decreased to HKD 35,402,000 as of September 30, 2020, from HKD 50,656,000 a year earlier[74] - The total equity as of September 30, 2020, included 684,750,000 issued and fully paid ordinary shares, amounting to HKD 6,848,000[127] Risk Management - The group has sufficient insurance coverage to mitigate potential losses from ongoing labor claims, indicating a proactive risk management strategy[131] - The group has not entered into any derivative contracts to hedge foreign exchange risks, as the majority of transactions are conducted in HKD[31] - The group had no taxable profits for the period, resulting in no provision for Hong Kong profits tax[103]

Financial Performance - The total revenue for the fiscal year was approximately HKD 351,944,000, an increase of about 45.7% compared to the previous year's revenue of HKD 241,612,000[24]. - The gross profit for the year was approximately HKD 15,117,000, with a gross profit margin of about 4.3%, compared to a gross loss of HKD 8,554,000 in the previous year[27]. - The company recorded a net profit of approximately HKD 1,331,000, a significant recovery from a net loss of HKD 45,321,000 in the previous year[31]. - The total employee compensation for the year was approximately HKD 64,628,000, compared to HKD 41,865,000 in the previous year, reflecting a significant increase[36]. - The construction contract revenue for the year ended March 31, 2020, was approximately HKD 351,944,000[198]. Financial Position - As of March 31, 2020, the company had a bank balance of approximately HKD 23,044,000, down from HKD 40,997,000 the previous year[32]. - The company had a debt of approximately HKD 8,795,000, an increase from HKD 5,489,000 the previous year, resulting in a debt-to-equity ratio of about 5.2%[32]. - As of March 31, 2020, the group's bank deposits used as collateral amounted to approximately HKD 20,689,000, an increase from HKD 19,671,000 as of March 31, 2019[33]. - The group had no capital commitments or significant contingent liabilities as of March 31, 2020, maintaining a stable financial position[37][38]. Cost Management and Efficiency - Administrative expenses decreased by approximately 34.5% to HKD 32,812,000 from HKD 50,102,000 in the previous year[29]. - The company is implementing strict cost control measures to enhance project management efficiency and maintain competitiveness in the construction industry[19]. Future Outlook and Growth Strategy - The company plans to utilize the remaining unutilized funds from the IPO for purchasing machinery and equipment, with expected expenditures of approximately HKD 9,125,000 by March 31, 2021[42]. - The company has set a future outlook with a revenue target of HKD 1.5 billion for the next fiscal year, indicating a projected growth of 25%[60]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next three years[60]. - A strategic acquisition of a local competitor is in progress, which is anticipated to increase the company's market share by 5%[60]. Project Management - The company has nine ongoing projects with a total contract value of approximately HKD 715,058,000, five of which are expected to be completed in the next fiscal year[22]. - User data indicates a steady increase in project completions, with a total of 150 projects completed in the last year, up from 130 the previous year, marking a 15% increase[60]. Corporate Governance - The company has adhered to all applicable corporate governance codes since its listing date, ensuring high levels of accountability and governance[46]. - The audit committee has been established in accordance with listing rules, serving as a communication bridge between the board, external auditors, and management[48]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balance of power and safeguarding shareholder interests[142]. - The company has established a risk management policy to identify, assess, and manage significant risks affecting the business[174]. Compliance and Regulations - The company has confirmed compliance with relevant laws and regulations that significantly impact its business operations during the reporting period[137]. - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2020[193]. Shareholder Relations - The company encourages shareholders to attend annual general meetings to understand the business's current status and communicate their concerns[180]. - The company has a dedicated investor relations department to respond to public inquiries and feedback[186]. Risks and Challenges - Key risks include potential revenue fluctuations due to client-initiated project changes, which may adversely affect profitability[86]. - Increased competition in the construction industry due to project approval delays and a shortage of construction workers, leading to reduced profit margins[87]. - The company faces significant risks if there are inaccuracies in estimating project costs and timelines during the bidding process, which could lead to substantial losses[89]. Social Responsibility - The company made charitable donations of approximately HKD 40,000 during the reporting period, up from HKD 33,000 in the previous year[92].

Financial Performance - The total revenue for the period was approximately HKD 146,858,000, representing an increase of about 27.1% compared to HKD 115,557,000 for the same period last year[11] - The gross profit margin for the period was approximately 1.4%, a decrease from 4.9% in the same period last year, primarily due to lower project profitability[12] - The net profit for the period was approximately HKD 1,101,000, a significant improvement from a net loss of HKD 22,128,000 in the same period last year[15] - The operating profit for the six months was HKD 1,197,000, a significant recovery from an operating loss of HKD 26,731,000 in the previous year[48] - The company reported a basic and diluted earnings per share of HKD 0.16, a recovery from a loss per share of HKD 3.23 in the previous year[48] - The company reported revenue of HKD 146,858,000 for the six months ended September 30, 2019, an increase of 27% compared to HKD 115,557,000 for the same period in 2018[48] Expenses and Costs - Administrative expenses for the period were approximately HKD 13,199,000, a decrease of about 60.0% compared to HKD 33,010,000 for the same period last year[13] - The company’s operating profit for the six months ended September 30, 2019, was impacted by employee benefit expenses amounting to HKD 24,167,000, compared to HKD 19,094,000 in the previous year[79] - Depreciation expenses for property, plant, and equipment amounted to HKD 5,889,000, up from HKD 5,123,000 in the previous year[79] - The finance costs for the six months ended September 30, 2019, totaled HKD 97,000, compared to HKD 48,000 in 2018[80] Cash Flow and Financial Position - The net cash generated from operating activities for the six months ended September 30, 2019, was HKD 21,354,000, compared to a net cash used of HKD 8,282,000 in the same period of 2018[55] - The net cash used in investing activities was HKD 27,350,000, an increase from HKD 1,176,000 in the previous year[55] - The net cash generated from financing activities was HKD 6,683,000, compared to a net cash used of HKD 1,141,000 in 2018[55] - The cash and cash equivalents increased by HKD 687,000, reversing a decrease of HKD 10,599,000 in the prior year[55] - The group’s cash and cash equivalents were HKD 40,137,000 as of September 30, 2019, compared to HKD 40,997,000 as of March 31, 2019[97] Debt and Liabilities - The group’s interest-bearing debt was approximately HKD 8,000,000 as of September 30, 2019, an increase from HKD 5,500,000 as of March 31, 2019[16] - The debt-to-equity ratio as of September 30, 2019, was approximately 4.7%, up from 3.3% as of March 31, 2019, due to an increase in bank loans[16] - Current liabilities increased to HKD 97,033,000 from HKD 59,019,000, reflecting a rise in trade payables and bank loans[49] - The total lease liabilities as of September 30, 2019, were HKD 14,778,000, with current liabilities at HKD 8,794,000 and non-current liabilities at HKD 5,984,000[108] Shareholder Information - As of September 30, 2019, the major shareholder, Creative Elite Global Limited, holds 495,000,000 shares, representing 72.29% of the company's equity[26] - The shareholding percentage of Creative Elite Global Limited decreased from 75% to 72.29% due to the issuance of 24,750,000 shares on December 2, 2016[33] - The board has decided not to declare an interim dividend for the six months ending September 30, 2019[39] - The company did not recommend any interim dividend for the six months ended September 30, 2019, consistent with the previous year[83] Project and Business Development - The group is focusing on prudent development of its core business while exploring additional opportunities, including general construction services, to diversify revenue sources[9] - The group currently has seven projects with a total contract value of approximately HKD 537,800,000, with two projects expected to be completed in the next fiscal year[8] Use of Proceeds - The net proceeds from the IPO amount to approximately HKD 95,300,000 after deducting underwriting fees and expenses[24] - As of the report date, the actual use of proceeds for purchasing machinery and equipment is HKD 49,283,000, leaving HKD 17,765,000 unutilized[24] - The company plans to utilize the unspent amount of HKD 17,765,000 for purchasing specific machinery by March 31, 2020, including HKD 6,060,000 for pile drivers and HKD 3,756,000 for hydraulic hammers[25] Compliance and Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[40] - The company has established an audit committee to enhance communication between the board, external auditors, and management regarding financial reporting and internal controls[42] Other Financial Metrics - The total assets as of September 30, 2019, were HKD 218,792,000, an increase from HKD 181,249,000 as of March 31, 2019[49] - The company's equity as of September 30, 2019, was HKD 169,314,000, up from HKD 168,215,000 as of March 31, 2019[50] - The group recognized a credit loss reversal of HKD 2,179,000 for trade receivables and HKD 5,455,000 for contract assets during the reporting period[79] - The group recorded a profit of approximately HKD 3,881,000 from the sale of properties, plants, and equipment, compared to a loss of HKD 80,000 in the same period last year[86]

Financial Performance - The total revenue for the year ended March 31, 2019, was approximately HKD 241,612,000, representing an increase of about 9.7% compared to the previous year (HKD 220,240,000) [16] - The group recorded a gross loss of approximately HKD 8,554,000 for the year, compared to a gross profit of HKD 7,716,000 in the previous year, resulting in a gross loss margin of approximately 3.5% [17] - The net loss for the year was approximately HKD 45,321,000, compared to a net loss of HKD 25,716,000 in the previous year [22] - The total employee compensation cost for the year was approximately HKD 41,900,000, a decrease from HKD 49,400,000 in the previous year, reflecting a reduction of about 11.4% [28] Cash and Debt Management - As of March 31, 2019, the group had cash and bank balances of approximately HKD 41,000,000, down from HKD 50,100,000 the previous year [23] - The group had interest-bearing debt of approximately HKD 5,500,000 as of March 31, 2019, compared to HKD 2,300,000 the previous year, resulting in a debt-to-equity ratio of approximately 3.3% [23] Project and Business Development - The group had seven ongoing projects with a total contract value of approximately HKD 557,500,000 as of March 31, 2019 [14] - Two new foundation engineering projects were awarded after the fiscal year-end, with a total contract value of approximately HKD 79,100,000 [14] - The company aims to enhance its project management skills and diversify its service offerings to capture more business opportunities [15] - The management anticipates that government policies regarding large infrastructure projects will benefit the group's business demand in the future [15] Corporate Governance and Compliance - The company has maintained compliance with all applicable corporate governance codes since its listing [42] - The board will decide on dividend declarations based on factors such as operational performance, financial condition, and liquidity [47] - The company reserves the right to update or modify its dividend policy at any time without any legal obligation to declare dividends [50] - The company has adopted corporate governance practices as detailed in the corporate governance report [136] Market and Strategic Outlook - The company provided an optimistic outlook for the next fiscal year, projecting a revenue increase of 10% to HKD 1.32 billion [56] - New product development initiatives are underway, with an investment of HKD 50 million allocated for research and development in innovative construction technologies [56] - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share within the next two years [56] - A strategic acquisition of a local construction firm is in progress, expected to enhance operational capabilities and increase revenue by an estimated HKD 200 million annually [56] Sustainability and Quality Control - The company emphasized its commitment to sustainability, with plans to implement eco-friendly practices across all projects, aiming for a 30% reduction in carbon footprint by 2025 [56] - Quality control measures have been strengthened, resulting in a 25% decrease in project delays due to compliance issues [56] Risk Management - Key risks identified include potential revenue fluctuations due to client-initiated project changes, which may significantly impact profitability [88] - The construction industry is facing intensified competition due to a decrease in available projects and rising construction costs [89] - The company has established risk management policies to identify and manage significant risks affecting the business [185] Shareholder Engagement - The company encourages shareholders to attend general meetings to communicate with the board and management [191] - The company has adopted a policy for the timely and accurate disclosure of significant information [186] Board Structure and Meetings - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balance of expertise and experience [150] - The board held four meetings during the reporting period to discuss overall strategy and financial performance [154] - The audit committee held three meetings during the reporting period to review the group's accounts and internal control reports [166] Financial Transparency - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors [190] - The consolidated financial statements for the reporting period were audited by KPMG, which will be proposed for reappointment at the upcoming annual general meeting [143]