香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 SH GROUP (HOLDINGS) LIMITED 順 興 集 團（ 控 股 ）有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股份代號：1637） 截至二零二五年三月三十一日止年度 全年業績公告 財務摘要 （截至二零二五年三月三十一日止年度） 於二零二五年三月三十一日 | | | 於三月三十一日 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | 附註 | 千港元 | 千港元 | | 非流動資產 | | | | | 物業及設備 | | 16,520 | 17,387 | | 使用權資產 | | 503 | 2,350 | | 按金 | | 2,716 | 2,919 | | 按攤銷成本列賬的債務工具 | | 4,377 | 6,665 | | 按公平值計入損益的金融資產 | | 22,741 | 19,95 ...

SH GROUP (HOLDINGS) LIMITED 順 興 集 團 ( 控 股 ) 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於関曼群島註冊成立的有限公司) STOCK CODE 股份代號：1637 | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|---------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2024-25 Interim Report 中期報告 | | | | | | | | | | | | | | | | | | | | CONTENTS 目錄 2 Corporate Information 公司資料 4 Management Discussion and Analysis ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 SH GROUP (HOLDINGS) LIMITED 順 興 集 團（ 控 股 ）有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1637） 截至二零二四年九月三十日止六個月 中期業績公告 | --- | --- | |-------|----------------------------------------------------------------------| | | | | | （截至二零二四年九月三十日止六個月） | | | | | – | 收益約為 3 億 3,000 萬港元（二零二三年： 4 億 6,110 萬港元） | | – | 毛損約為 120 萬港元（二零二三年：毛利 320 萬港元） | | – | 本公司擁有人應佔期內虧損約為 870 萬港元（二零二三年： 1,100 萬港元） | | – | 每股基本虧損約為每股 2.2 港仙（二零二三年：每股 2.7 ...

Financial Performance - Revenue for the year ended March 31, 2024, was approximately HKD 876.18 million, a decrease of 8.2% compared to HKD 954.26 million in the previous year[3] - Gross profit for the same period was approximately HKD 16.29 million, an increase of 88.5% from HKD 8.66 million in the previous year[3] - Loss attributable to owners of the company for the year was approximately HKD 15.20 million, compared to a loss of HKD 11.00 million in the previous year, representing a 38.6% increase in losses[3] - Basic loss per share was approximately HKD 3.8 cents, compared to HKD 2.8 cents in the previous year[3] - The company reported a basic loss per share of HKD 0.038 from a loss of HKD 11.0 million in 2023 to a loss of HKD 15.2 million in 2024, with the number of ordinary shares remaining at 400 million[19] - Other income for fiscal year 2024 decreased by approximately HKD 740 million to about HKD 3.5 million, primarily due to the absence of government subsidies from the "Employment Support Scheme" in Hong Kong[37] - The company recorded a pre-tax loss of approximately HKD 17.3 million in fiscal year 2024, compared to HKD 14 million in fiscal year 2023, resulting in a tax credit of about HKD 2.1 million[42] - The company reported a loss attributable to owners of approximately HKD 15.2 million in fiscal year 2024, compared to HKD 11 million in fiscal year 2023[43] Assets and Liabilities - Non-current assets decreased to HKD 57.96 million from HKD 75.09 million in the previous year, a decline of 22.6%[5] - Trade receivables increased significantly to HKD 145.78 million from HKD 67.15 million, marking a 117.0% increase[5] - Current liabilities rose to HKD 265.32 million from HKD 262.27 million, indicating a slight increase of 0.4%[5] - Total assets less current liabilities decreased to HKD 230.13 million from HKD 244.47 million, a decline of 5.9%[5] - Trade receivables increased to HKD 147.3 million in 2024 from HKD 67.7 million in 2023, with a significant portion (HKD 136.6 million) being within 30 days[21] - Contract assets decreased to HKD 226.1 million in 2024 from HKD 233.4 million in 2023, while contract liabilities significantly dropped to HKD 15.0 million from HKD 59.1 million[22] - As of March 31, 2024, the company's capital structure included equity of approximately HKD 228.9 million and bank borrowings of HKD 35 million[45] - The company maintained a cash balance of approximately HKD 44.6 million as of March 31, 2024, down from HKD 61.4 million in the previous year[46] - The current ratio as of March 31, 2024, was approximately 1.6 times, consistent with the previous year[47] - As of March 31, 2024, the total bank borrowings of the group amounted to HKD 35 million, compared to zero in 2023[48] - The capital debt ratio as of March 31, 2024, was approximately 15.3%, calculated based on the total bank borrowings divided by total equity, which was zero in 2023[49] - The net current assets of the group as of March 31, 2024, were approximately HKD 171.2 million, an increase from HKD 169.4 million in 2023[50] Revenue Breakdown - The revenue from the supply, installation, and maintenance of mechanical ventilation and air conditioning systems was HKD 597.1 million, down from HKD 740.6 million in the previous year, while revenue from low-voltage electrical systems increased to HKD 279.1 million from HKD 213.6 million[14] - The contribution of mechanical ventilation and air conditioning systems to revenue was approximately 68.1%, while low-voltage electrical systems contributed about 31.9% in fiscal year 2024, compared to 77.6% and 22.4% respectively in fiscal year 2023[30] - Major customers contributing over 10% of total revenue included Customer A with HKD 224.5 million and Customer B with HKD 145.8 million in 2024[17] Business Operations - The company is primarily engaged in providing electromechanical engineering services in Hong Kong[7] - The company primarily operates in Hong Kong, with all revenue generated from this region[16] - The company plans to diversify its business into other types of electromechanical engineering projects, including fire protection systems, water supply, and sewage systems[33] - The company secured five projects related to mechanical ventilation and air conditioning system installation in the fiscal year 2024, with a total contract value of approximately HKD 226.8 million, compared to three projects valued at HKD 185.5 million in the previous year[28] Capital Expenditure and Commitments - The capital expenditure for the fiscal year 2024 was approximately HKD 300,000, down from HKD 700,000 in 2023, primarily for the purchase of properties and equipment[51] - The group had capital commitments related to the purchase of properties and equipment amounting to approximately HKD 100,000 as of March 31, 2024, unchanged from 2023[56] Employee and Corporate Governance - The total number of employees as of March 31, 2024, was 202, an increase from 200 in 2023[57] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year 2024[58] - The board did not recommend the payment of any final dividend for the year[67] - No dividends were declared for the fiscal year ending March 31, 2024, while a total of HKD 14 million was paid in dividends for the previous fiscal year[20] Performance Guarantees and Liabilities - As of March 31, 2024, the group had performance guarantees provided by banks amounting to approximately HKD 145.2 million, a decrease from HKD 178.9 million in 2023[53] - The group had no contingent liabilities as of March 31, 2024, and 2023[54]

Revenue Performance - Revenue decreased by approximately HK$28.9 million, or 5.9%, from approximately HK$490.0 million in the last period to approximately HK$461.1 million in the current period[11]. - Revenue for the six months ended September 30, 2023, was HK$461,149,000, a decrease of 5.9% compared to HK$489,954,000 for the same period in 2022[124]. - Revenue from the supply, installation, and maintenance of mechanical ventilation and air conditioning (MVAC) systems was HK$279,467,000, down 28.7% from HK$391,924,000 in 2022[149]. - Revenue from low voltage electrical system services increased significantly to HK$181,682,000, up 85.2% from HK$98,030,000 in 2022[149]. - The Group's revenue is solely derived from electrical and mechanical engineering services, focusing on the supply, installation, and maintenance of mechanical ventilation and air-conditioning systems and low voltage electrical systems in Hong Kong[145]. Project Awards and Contributions - The Group was awarded 3 projects in the current period with an aggregate contract sum of approximately HK$158.4 million, down from HK$185.5 million in the previous year[12]. - Major projects awarded include MVAC system installation for a property development at Aberdeen, Hong Kong, with a contract sum of HK$103.7 million[16]. - The contract sum for MVAC system installation for a housing development at Kai Tak, Kowloon, is HK$31.0 million[16]. - The five largest projects undertaken in the current period contributed significantly to revenue, with specific details to be outlined[20]. - Revenue contribution from MVAC system projects accounted for approximately 60.6% in the current period, compared to 80.0% in the previous year[19]. - The Group's revenue from low voltage electrical system projects accounted for approximately 39.4% in the current period, up from 20.0% in the previous year[19]. Financial Performance - The Group recorded a loss before taxation of approximately HK$12.5 million, compared to a loss of HK$11.4 million in the previous year, with an effective tax rate of approximately 12.2%[44]. - Loss attributable to owners of the Company was approximately HK$11.0 million for the Current Period, compared to HK$9.7 million in the previous year[45]. - Gross profit slightly increased by approximately HK$0.3 million, or 10.3%, from approximately HK$2.9 million to approximately HK$3.2 million, with a gross profit margin increase of 0.1 percentage points to approximately 0.7%[32]. - Total comprehensive loss for the period was HK$10,977,000, compared to HK$9,736,000 in the same period last year, indicating an increase of 12.8%[124]. - Basic loss per share was HK(2.7 cents), compared to HK(2.4 cents) for the same period in 2022, representing a 12.5% increase in loss per share[124]. Cash Flow and Liquidity - The Group held bank balance and cash of approximately HK$36.0 million as of 30 September 2023, down from HK$61.4 million as of 31 March 2023[48]. - The current ratio of the Group was approximately 1.7 times as of 30 September 2023, compared to 1.6 times as of 31 March 2023[49]. - For the six months ended September 30, 2023, the net cash used in operating activities was HK$128,918,000, compared to HK$45,953,000 for the same period in 2022, indicating a significant increase in cash outflow[133]. - The cash and cash equivalents at the end of the period decreased to HK$35,985,000 from HK$83,111,000 at the end of the previous period[133]. - The total cash used in operations was HK$128,051,000, reflecting a substantial increase in operational cash outflows compared to the previous year[133]. Capital Structure and Borrowings - As of 30 September 2023, the Group's capital structure consisted of equity of approximately HK$233.1 million and bank borrowings of HK$40.0 million[46]. - As of September 30, 2023, the Group's total bank borrowings amounted to HK$40.0 million, compared to nil as of March 31, 2023[56]. - The Group's gearing ratio was approximately 17.2% as of September 30, 2023, up from 0% as of March 31, 2023[57]. - New bank loans raised amounted to HK$40,000,000 during the financing activities, contributing to a net cash inflow of HK$38,601,000[133]. Employee and Operational Costs - Total staff costs for the current period were approximately HK$54.4 million, compared to HK$51.8 million in 2022[76]. - Total employee costs for the period amounted to approximately HKD 54.4 million, compared to HKD 51.8 million in 2022, reflecting a year-on-year increase of about 5%[80]. - Administrative expenses were HK$13,991,000, slightly higher than HK$13,756,000 in the previous year, indicating a 1.7% increase[124]. - Salaries for key management personnel increased to HK$3,452,000 for the six months ended 30 September 2023, up from HK$3,319,000 in the previous year, reflecting a growth of approximately 4%[194]. Shareholding and Corporate Governance - As of September 30, 2023, Yu Cheung Choy held a long position of 246 million shares, representing 61.50% of the issued share capital[94]. - Lau Man Ching held a long position of 54 million shares, representing 13.50% of the issued share capital[94]. - The company has adopted the Corporate Governance Code and complied with all relevant provisions during the current period[86]. - The Group maintains a register of substantial shareholders, with disclosures made in accordance with the Securities and Futures Ordinance[96]. Investments and Assets - The Group's property and equipment, along with right-of-use assets, amounted to HK$20,788,000 as of 30 September 2023, up from HK$18,960,000 as of 31 March 2023[152]. - The Group's investment in unlisted funds in overseas decreased to HK$17,145,000 as of 30 September 2023 from HK$22,170,000 as of 31 March 2023, representing a decline of about 23%[192]. - The Group's investment in listed bonds includes a bond with a fixed interest of 7.95% maturing in October 2023, valued at HK$227,000[191]. - The Group recognized HK$3,238,000 of right-of-use assets and HK$3,175,000 of lease liabilities for two new lease agreements during the six months ended 30 September 2023[173]. Performance Guarantees - Performance guarantees provided by banks in favor of the Group's customers amounted to approximately HK$158.5 million as of September 30, 2023, down from HK$178.9 million[66]. - As of 30 September 2023, performance guarantees amounted to HK$157,516,000, a decrease from HK$178,899,000 as of 31 March 2023[198]. - The Group does not consider it probable that a claim will be made against it regarding the performance guarantees[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 SH GROUP (HOLDINGS) LIMITED 順 興 集 團（ 控 股 ）有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1637） 截至二零二三年九月三十日止六個月 中期業績公告 財務摘要 （截至二零二三年九月三十日止六個月） – 收益約為4億6,110萬港元（二零二二年：4億9,000萬港元） – 毛利約為320萬港元（二零二二年：290萬港元） – 本公司擁有人應佔期內虧損約為1,100萬港元（二零二二年：970萬港元） – 每股基本虧損約為每股2.7港仙（二零二二年：每股2.4港仙） ...

Financial Performance - The Group recorded a revenue increase of approximately HK$201.0 million, or 26.7%, from approximately HK$753.3 million in FY2022 to approximately HK$954.3 million in FY2023[13] - The Group reported a loss of approximately HK$11.0 million for FY2023, compared to a profit of approximately HK$11.7 million in FY2022[14] - Gross profit decreased by approximately HK$36.9 million, or 80.9%, from approximately HK$45.6 million for FY2022 to approximately HK$8.7 million for FY2023, with a gross profit margin decline of 5.2 percentage points to approximately 0.9%[50] - Other income for FY2023 increased by approximately HK$8.0 million to approximately HK$10.9 million, primarily due to a government grant of approximately HK$6.2 million received from the Employment Support Scheme[51] - The company recorded an other loss of approximately HK$4.2 million for FY2023, mainly due to a fair value loss of financial assets at fair value through profit or loss[52] - Net impairment loss under the expected credit loss model was approximately HK$1.8 million for FY2023, compared to HK$1.3 million for FY2022[53] - Administrative expenses increased by approximately HK$3.5 million to approximately HK$27.5 million for FY2023[54] - The Board did not recommend any final dividend for FY2023, compared to HK1.0 cent per ordinary share in FY2022[15] Revenue Breakdown - Revenue from MVAC system projects contributed 77.6% of total revenue, while low voltage electrical system projects contributed 22.4%[13] - Revenue contribution from low voltage electrical system projects remained stable at around 15% to 23% of total revenue, despite the overall revenue increase[23] - Projects related to the supply, installation, and maintenance of MVAC system and low voltage electrical system contributed approximately 77.6% and 22.4% of revenue respectively for FY2023[49] - Major projects undertaken in FY2023 included MVAC system installations, with revenue contributions of HK$213.5 million from a commercial development at Chek Lap Kok[44] - Revenue from MVAC system projects decreased from 84.4% in FY2022 to 77.6% in FY2023, indicating a shift in project focus[42] Future Outlook and Strategy - The Group aims to expand its service capabilities in MVAC and low voltage electrical systems to capture additional business opportunities[26] - The demand for construction and E&M engineering services is expected to remain strong due to government efforts to address housing supply[25] - The future demand for construction and E&M engineering services is expected to remain stable due to government initiatives to increase housing supply and develop infrastructure projects[28] - The Group plans to diversify its E&M engineering services, including fire services and plumbing systems, to enhance competitiveness[28] - The Group maintains a positive outlook for stable business growth and long-term value creation for shareholders[28] Capital Structure and Financial Position - As of March 31, 2023, the capital structure consisted of equity of approximately HK$244.1 million, down from HK$290.8 million in 2022, with no bank borrowings[64] - The group held cash and short-term bank deposits of approximately HK$114.0 million as of March 31, 2023, down from HK$249.5 million in 2022[65] - The current ratio as of March 31, 2023, was approximately 1.6 times, compared to 2.0 times in 2022[66] - As of March 31, 2023, the Group had net current assets of approximately HK$169.4 million, a decrease from HK$216.0 million in 2022, primarily due to a net loss and the declaration of dividends[82] - The Group's capital expenditures for FY2023 amounted to approximately HK$0.7 million, an increase from HK$0.2 million in 2022, mainly for the purchase of property and equipment[84] Corporate Governance - The Board currently consists of six Directors, including three executive Directors and three independent non-executive Directors[118] - The Chairman and Chief Executive Officer roles are held separately by Mr. Yu Cheung Choy and Mr. Lau Man Ching, respectively, ensuring independence and accountability[126] - All Directors participated in continuous professional development, enhancing their knowledge and skills relevant to their duties[121] - The independent non-executive Directors are appointed for a specific term and are subject to retirement by rotation at least once every three years[131] - The Board is primarily responsible for establishing overall strategies, setting objectives, and monitoring senior management performance[133] - Management is responsible for implementing strategies set by the Board and reporting on the Group's operations regularly[134] - Each Director has independent access to senior management and can seek independent professional advice at the Group's expense[135] - The Company considers all independent non-executive Directors to be independent under Rule 3.13 of the Listing Rules[132] - The Board adopted a board diversity policy to ensure a balanced composition of skills and experience[136] - The Company provides monthly updates on performance and financial position to all Directors to assist in fulfilling their duties[135] Board Meetings and Committees - The Board held five meetings during the year, ensuring all Directors had the opportunity to propose agenda items[152] - The Company is committed to maintaining a balanced mix of executive and non-executive directors to ensure strong independence[154] - The Board will review its structure and diversity policy at least annually to comply with relevant regulations[154] - The Nomination Committee is responsible for reviewing the Board Diversity Policy and setting measurable objectives for its implementation[141] - The Nomination Committee consists of three independent non-executive Directors, including Mr. Lee Wing Kee as chairman[163] - The Nomination Committee's primary duties include reviewing the Board's structure and diversity at least annually[164] - The Remuneration Committee held one meeting during the year and considered the adoption of a staff welfare scheme for current and potential talents[179] - The Remuneration Committee reviewed the bonus proposal for executive Directors and senior management for the year[179] - The Audit Committee held two meetings during the year and noted the existing risk management and internal control systems of the Group[187] - The accounts for the year were audited by Deloitte Touche Tohmatsu, which will be recommended for re-appointment at the upcoming annual general meeting[190] - The Audit Committee reviewed significant financial reporting judgments contained in the financial statements and annual report[183] - The terms of reference of both the Remuneration and Audit Committees are aligned with the provisions set out in the Corporate Governance Code[182] - The Company established the Audit Committee and Remuneration Committee on December 6, 2016, consisting of three independent non-executive Directors each[181] Employee and Operational Metrics - The total number of employees as of March 31, 2023, was 200, a decrease from 207 in 2022[96] - The Group did not have any material acquisitions or disposals during FY2023[97] - The Group did not hold any significant investments as of March 31, 2023[98] - The Group had no plans for material investments or capital assets as of March 31, 2023[99] - Appropriate insurance coverage has been arranged for actions against its Directors[155] - The Company held one general meeting during the year, specifically the 2022 annual general meeting on September 1, 2022[156] - The Company engaged an external professional company secretarial services provider to assist with compliance and regulatory needs[200]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 SH GROUP (HOLDINGS) LIMITED 順 興 集 團（ 控 股 ）有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1637） 截至二零二三年三月三十一日止年度 全年業績公告 財務摘要 （截至二零二三年三月三十一日止年度） – 收益約為9億5,430萬港元（二零二二年：7億5,330萬港元） – 毛利約為870萬港元（二零二二年：4,560萬港元） – 本公司擁有人應佔年內虧損約為1,100萬港元（二零二二年：溢利1,170萬港元） – 每股基本虧損約為每股2.8港仙（二零二二年：盈利每股2.9港仙） ...

Revenue and Projects - Revenue increased by approximately HK$120.0 million, or 32.4%, from approximately HK$370.0 million in the last period to approximately HK$490.0 million in the current period[13]. - The Group was awarded 3 projects with an aggregate contract sum of approximately HK$185.5 million related to MVAC system installation during the current period[14]. - Revenue from MVAC system projects accounted for approximately 80.0% of total revenue, while low voltage electrical system projects contributed approximately 20.0% in the current period[21]. - The largest project awarded was for MVAC system installation for a property development in Yuen Long, with a contract sum of HK$160.9 million[17]. - The second largest project was for MVAC system installation for a commercial building in Tuen Mun, with a contract sum of HK$14.6 million[17]. - The Group's focus remains on the supply, installation, and maintenance of MVAC systems and low voltage electrical systems[21]. - The revenue contribution from MVAC systems decreased slightly from 83.2% in the previous year to 80.0% in the current period[21]. - New projects awarded indicate a strong pipeline for future revenue growth[14]. - The Group continues to explore opportunities for market expansion in both private and public sectors[12]. Financial Performance - Gross profit decreased by approximately HK$30.0 million, or 91.2%, from approximately HK$32.9 million to approximately HK$2.9 million, with a gross profit margin decline of approximately 8.3 percentage points to approximately 0.6%[32]. - Other income increased by approximately HK$6.3 million to approximately HK$8.1 million, primarily due to government grants received during the Current Period[34]. - Other loss increased by approximately HK$2.8 million to approximately HK$7.7 million, attributed to increased fair value loss on financial assets[39]. - Administrative expenses rose by approximately HK$1.2 million to approximately HK$13.8 million for the Current Period[41]. - The Group recorded a loss attributable to owners of approximately HK$9.7 million for the Current Period, compared to a profit of approximately HK$13.5 million for the Last Period[44]. - The company reported a loss before taxation of HK$11,363,000, compared to a profit of HK$16,943,000 in the same period last year[127]. - Basic loss per share was HK$2.4, a decline from earnings of HK$3.4 per share in the prior year[127]. - For the six months ended September 30, 2022, the company reported a loss of HK$9,736,000 compared to a profit of HK$13,538,000 for the same period in 2021, representing a year-over-year decline of 172%[134]. Assets and Liabilities - The current ratio of the Group was approximately 1.5 times as of 30 September 2022, down from 2.0 times as of 31 March 2022[48]. - The Group held short-term bank deposits and cash equivalents of approximately HK$183.1 million as of 30 September 2022, down from HK$249.5 million as of 31 March 2022[47]. - As of September 30, 2022, the group had net current assets of approximately HK$171.5 million, a decrease from HK$216.0 million as of March 31, 2022, primarily due to the net loss recorded and the declaration of dividends[64]. - Total assets as of September 30, 2022, were HK$493,566,000, an increase from HK$432,341,000 as of March 31, 2022[130]. - Current liabilities increased to HK$322,110,000, up from HK$216,312,000 at the end of the previous fiscal year[130]. - Net assets decreased to HK$245,383,000 from HK$290,836,000 as of March 31, 2022[131]. - Trade receivables saw a significant decrease of HK$59,225,000 in 2022, contrasting with an increase of HK$23,467,000 in 2021, suggesting challenges in collection[136]. Cash Flow and Investments - Operating cash flows before movements in working capital were negative at HK$3,190,000 for the six months ended September 30, 2022, compared to positive cash flows of HK$22,143,000 in the prior year[136]. - Net cash used in operating activities increased significantly to HK$45,953,000 in 2022 from HK$10,483,000 in 2021, indicating a deterioration in cash flow management[136]. - The company experienced a net cash outflow from investing activities of HK$101,254,000 for the six months ended September 30, 2022, compared to HK$10,354,000 in the same period of 2021, highlighting increased investment activity[136]. - Cash and cash equivalents at the end of the period decreased to HK$83,111,000 from HK$198,671,000, a decline of approximately 58%[136]. Employee and Operational Metrics - The total staff costs for the current period amounted to approximately HK$51.8 million, compared to HK$45.9 million in the previous year, reflecting an increase in employee remuneration[78]. - The group had a total of 209 employees as of September 30, 2022, an increase from 207 employees as of March 31, 2022[78]. - The Group's property and equipment, along with right-of-use assets, amounted to HK$20,688,000 as of 30 September 2022, a slight decrease from HK$21,527,000 as of 31 March 2022[170]. Shareholder Information - The interests of directors in shares included 246 million shares held by Yu Cheung Choy, representing 61.5% of the issued share capital[99]. - Lau Man Ching held 54 million shares, representing 13.5% of the issued share capital[99]. - The Company did not purchase, sell, or redeem any of its listed securities during the current period[109]. - The Company has established an Audit Committee to monitor financial integrity and risk management[110]. Accounting Policies and Changes - The Group's accounting policies and calculation methods for the interim financial statements remain consistent with those used in the annual financial statements for the year ended March 31, 2022[3]. - The application of HKAS 37 amendments resulted in a net decrease in loss and total comprehensive expense for the period of HK$5,837,000[156]. - The cumulative effect of the new accounting policy was recognized at the date of initial application, April 1, 2022, without restating comparative information[151].

Financial Performance - The Group recorded a revenue increase of approximately HK$45.7 million, or 6.5%, from approximately HK$707.6 million in FY2021 to approximately HK$753.3 million in FY2022[13] - The profit for the Year was approximately HK$11.7 million, representing a decrease of 73.5% or HK$32.4 million from approximately HK$44.1 million in FY2021[14] - Gross profit decreased by approximately HK$15.8 million, or 25.7%, from approximately HK$61.4 million for FY2021 to approximately HK$45.6 million for FY2022, with a gross profit margin decrease of approximately 2.6 percentage points to 6.1%[51] - Other income decreased by approximately HK$7.3 million, from approximately HK$10.2 million for FY2021 to approximately HK$2.9 million for FY2022, primarily due to the absence of government grants[52] - The profit attributable to owners of the Company decreased by approximately HK$32.4 million, or approximately 73.5%, from approximately HK$44.1 million for FY2021 to approximately HK$11.7 million for FY2022[63] Revenue Sources - The revenue generated by MVAC system projects contributed 84.4% of total revenue, while low voltage electrical system projects contributed 15.6%[13] - The Group aims to steadily increase revenue and profit from low voltage electrical system projects, maintaining a contribution level of around 15% to 20%[23] - Revenue from MVAC system projects accounted for approximately 84.4% and low voltage electrical system projects accounted for approximately 15.6% of total revenue in FY2022[42] Project Awards - The Group was awarded 11 MVAC system installation projects with an aggregate contract sum of approximately HK$682.9 million during the Year[16] - One project related to low voltage electrical system installation was awarded with a contract sum of approximately HK$108.7 million[23] - The Group was awarded 12 projects in FY2022 with an aggregate contract sum of approximately HK$791.6 million, including a project related to electrical system installation valued at approximately HK$108.7 million[36] - Major projects undertaken in FY2022 included MVAC system installations for residential developments at Kai Tak and Tseung Kwan O, with contract sums of HK$145.4 million and HK$125.4 million respectively[40] - The five largest projects awarded in FY2022 included significant contracts for MVAC and electrical system installations, reflecting the Group's strong market position[40] Industry Challenges and Outlook - The construction and E&M engineering services industry faced challenges such as manpower shortages and logistic delays due to the ongoing Covid-19 pandemic[24] - The anticipated increase in demand for construction and engineering services is driven by government initiatives to boost housing supply and infrastructure development in Hong Kong[27] - The Group anticipates that the progress of construction and E&M engineering projects in Hong Kong will ramp up as the impacts of Covid-19 are gradually controlled[25] - The impact of Covid-19 on logistics and material costs is expected to gradually improve as the situation stabilizes in Hong Kong and mainland China[27] Corporate Governance - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective leadership[120] - The Company has adopted a Board Diversity Policy to achieve diversity on the Board, considering factors such as gender, age, and professional experience[139] - The independent non-executive Directors are appointed for a specific term and are subject to retirement by rotation at least once every three years[134] - The Board is primarily responsible for establishing overall strategies and monitoring the performance of senior management[136] - The management, led by executive Directors, is responsible for implementing strategies and reporting on the Group's operations to the Board regularly[137] Financial Position - As of March 31, 2022, the Group held cash and cash equivalents of approximately HK$249.5 million, an increase from HK$236.0 million in 2021[66] - The current ratio of the Group was approximately 2.0 times as of March 31, 2022, compared to 2.1 times in 2021[67] - As of March 31, 2022, the Group had net current assets of approximately HK$216.0 million, a decrease from HK$232.2 million in 2021, primarily due to the purchase of financial assets and the payment of final dividends[84] - The Group had a facility agreement with a limit of HK$150.0 million as of March 31, 2022, up from HK$80.0 million in 2021[76] Committees and Meetings - The Company established a Nomination Committee on December 6, 2016, consisting of three independent non-executive Directors[159] - The Audit Committee held 2 meetings during the Year[181] - The Remuneration Committee also held 1 meeting during the year[174] - The Nomination Committee held 1 meeting during the year[169] - The Board held 4 meetings during the year, with all Directors attending all meetings, achieving a 100% attendance rate[146] Employee and Management Information - The total number of employees increased to 207 as of March 31, 2022, from 191 in 2021[98] - Senior management's remuneration for the Year fell within the following bands: 1 individual earned up to HK$1,000,000, 3 individuals earned between HK$1,000,001 and HK$1,500,000, and 1 individual earned between HK$1,500,001 and HK$2,000,000[190] Miscellaneous - The Group expresses appreciation to its management team, staff, customers, suppliers, and shareholders for their ongoing support during challenging times[30] - The Company engaged Uni-1 Corporate Services Limited for compliance and company secretarial services to adapt to regulatory changes[197] - The Corporate Governance Report has been published, indicating a focus on governance practices[200]