Financial Performance - Revenue decreased by 54.8% from approximately HKD 144.6 million for the six months ended September 30, 2019, to approximately HKD 65.4 million for the six months ended September 30, 2020[8]. - Gross loss for the six months ended September 30, 2020, was approximately HKD 20.8 million, compared to a gross profit of approximately HKD 19.8 million for the same period in 2019[9]. - The company reported a loss attributable to owners of approximately HKD 39.9 million for the six months ended September 30, 2020, compared to a profit of approximately HKD 0.6 million for the same period in 2019[11]. - The group recorded a gross loss of approximately HKD 20.8 million for the six months ended September 30, 2020, compared to a gross profit of approximately HKD 19.8 million for the same period in 2019[52]. - The group reported a loss before tax of approximately HKD 39.9 million for the six months ended September 30, 2020, compared to a profit before tax of approximately HKD 0.5 million for the same period in 2019[58]. - The company reported a total comprehensive loss of HKD 39,892,000 for the six months ended September 30, 2020, compared to a profit of HKD 587,000 for the same period in 2019[193]. - The revenue for the six months ended September 30, 2020, was HKD 65,417,000, a decrease of approximately 54.7% from HKD 144,583,000 in the previous year[193]. Administrative and Operational Expenses - Administrative expenses remained stable at approximately HKD 15.3 million for both the six months ended September 30, 2020, and 2019[10]. - The total employee costs incurred by the company for the six months amounted to approximately HKD 24.7 million, a decrease from HKD 31.1 million for the same period in 2019[134]. - The company had 113 employees as of September 30, 2020, down from 127 employees as of March 31, 2020[134]. - The company’s employee compensation policy allows for salary adjustments and discretionary bonuses based on individual performance evaluations[134]. - The company has undergone a review of its compensation policy and treatment for employees[134]. Project and Revenue Sources - Total revenue from building construction services was HKD 8.8 million (13.4% of total revenue) for the six months ended September 30, 2020, compared to HKD 6.2 million (4.3%) in 2019[17]. - Revenue from renovation, addition, and alteration works was HKD 47.1 million (72.1%) for the six months ended September 30, 2020, down from HKD 134.3 million (92.9%) in 2019[17]. - The company has ongoing projects with expected total revenue of approximately HKD 107.2 million to be recognized after September 30, 2020[18]. - The company has 1, 32, and 3 ongoing projects in building construction services, renovation works, and maintenance of historical buildings, respectively, as of September 30, 2020[17]. - The company completed contracts with amounts of HKD 300 million or more, including various renovation and maintenance projects in Hong Kong[19]. - The company has ongoing projects with contract amounts exceeding HKD 3 million, including residential developments and school renovations, with expected project durations ranging from 2018 to 2021[24]. - The company is involved in various construction categories such as building services, renovation, and historical building restoration, indicating a diverse project portfolio[28]. - The company is currently engaged in significant projects like the redevelopment of residential buildings and school renovations, which are expected to contribute to future revenue streams[28]. - The company has a strong focus on historical building restoration, which may provide unique market opportunities and align with heritage conservation trends[28]. - The expected project durations for key ongoing projects range from 2018 to 2021, indicating a long-term commitment to infrastructure development[24]. - The company has a diverse range of ongoing projects, including school renovations and residential developments, which may mitigate risks associated with reliance on a single sector[24]. Financial Position and Liquidity - As of September 30, 2020, the total interest-bearing borrowings amounted to approximately HKD 156.0 million, an increase from HKD 108.1 million as of March 31, 2020[67]. - The group's cash and bank balances were approximately HKD 35.7 million as of September 30, 2020, compared to HKD 23.3 million as of March 31, 2020[72]. - The current ratio decreased to 1.2 as of September 30, 2020, from 1.4 as of March 31, 2020, while the debt-to-equity ratio increased to 56% from 44%[73]. - The net proceeds from the share issuance amounted to approximately HKD 75.9 million, with about HKD 75.4 million utilized by September 30, 2020, representing 99.3% of the net proceeds[116]. - The company’s cash flow may be negatively impacted by the timing of cash inflows and outflows, particularly during the initial stages of construction projects[59]. Market Conditions and Challenges - The group faces significant uncertainty in its operating environment due to the COVID-19 pandemic, which has severely impacted its business performance and financial condition[49]. - Revenue decreased by 54.8% from approximately HKD 144.6 million to approximately HKD 65.4 million for the six months ended September 30, 2020, primarily due to intense competition and the negative impact of COVID-19 on the overall economy in Hong Kong[51]. - The construction industry in Hong Kong has seen a decline, and future profitability will depend on the availability of large-scale construction projects and overall economic conditions[66]. - The group experienced a decrease in the number of projects awarded in both the public and private construction markets due to the adverse economic conditions[51]. - The company anticipates a significant challenge in business operations due to the long-term impact of COVID-19, with the Hong Kong government forecasting a 4% to 7% decline in the economy for 2020[118]. Corporate Governance and Compliance - The company’s board of directors consists of four independent non-executive directors and two executive directors, ensuring a balance of power and accountability[183]. - The company has complied with the corporate governance code, except for a specific provision regarding the separation of the roles of chairman and CEO[182]. - The company’s audit committee, composed solely of independent non-executive directors, has reviewed the interim financial results[189]. Shareholder Information - The company’s major shareholders, including Mr. Liang Jin Hui and Mr. Lin Jia Hao, hold a combined total of 594,600,000 shares, which constitutes 61.94% of the issued share capital[140]. - The company’s major shareholder, Ms. Hou Lingling, holds 100% of the issued share capital, with no pledges against the shares for company debts[168]. - The company has entered into a sale agreement for 594,600,000 shares, representing approximately 61.94% of the total issued share capital, for a total consideration of HKD 167.2 million[128]. - The company agreed to acquire 594,600,000 shares, representing approximately 61.94% of the total issued share capital, for a total consideration of HKD 167.2 million, equivalent to HKD 0.28125 per share[139]. Asset and Liability Management - Total assets increased to HKD 403,367 million as of September 30, 2020, compared to HKD 392,954 million as of March 31, 2020, reflecting a growth of approximately 2.1%[196]. - Total non-current assets rose to HKD 37,089 million, up from HKD 28,794 million, indicating a significant increase of approximately 29%[196]. - Current assets totaled HKD 366,278 million, slightly up from HKD 364,160 million, showing a marginal increase of about 0.6%[196]. - Total liabilities increased to HKD 299,088 million from HKD 267,983 million, representing an increase of approximately 11.5%[200]. - Current liabilities rose to HKD 296,992 million, compared to HKD 252,249 million, marking an increase of around 17.7%[200]. - Share capital increased to HKD 96,000 million from HKD 80,000 million, reflecting a growth of 20%[196]. - Total equity decreased to HKD 104,279 million from HKD 124,971 million, indicating a decline of approximately 16.6%[196]. - Cash and bank balances increased significantly to HKD 35,681 million from HKD 23,268 million, representing an increase of about 53.5%[196]. - Trade receivables and other receivables decreased to HKD 55,806 million from HKD 58,695 million, showing a decline of approximately 4.9%[196]. - The company reported a decrease in contract assets to HKD 221,166 million from HKD 228,873 million, reflecting a decline of about 3.4%[196].

Financial Performance - Total revenue for the year ended March 31, 2020, was HKD 260,950,000, a decrease of 46.8% compared to HKD 491,839,000 in 2019[9] - The company reported a loss attributable to owners of HKD 17,038,000 for the year, compared to a profit of HKD 14,666,000 in the previous year[9] - Total assets as of March 31, 2020, were HKD 392,954,000, down from HKD 458,755,000 in 2019, representing a decrease of 14.3%[9] - The net asset value as of March 31, 2020, was HKD 124,971,000, down from HKD 142,009,000 in 2019, indicating a decline of 12.0%[9] - The group's gross profit decreased by 64.3% from approximately HKD 62.4 million for the year ended March 31, 2019, to about HKD 22.3 million for the year ended March 31, 2020, with a gross margin decline from 12.7% to 8.5%[49] - The group recorded a loss before tax of approximately HKD 16.9 million for the year ended March 31, 2020, compared to a profit of HKD 17.1 million for the previous year[51] - The loss attributable to the company's owners was approximately HKD 17.0 million for the year ended March 31, 2020, compared to a profit of HKD 14.7 million for the previous year[52] - The company's revenue decreased by 46.9% from approximately HKD 491.8 million for the year ended March 31, 2019, to about HKD 261.0 million for the year ended March 31, 2020[46] Revenue Segmentation - The construction services segment generated revenue of HKD 8,483,000, representing a decline of 87.3% compared to HKD 66,650,000 in the previous year[19] - The renovation and addition services segment accounted for HKD 240,097,000, a decrease of 41.5% from HKD 409,834,000 in the previous year[19] - The company has ongoing projects with an expected total revenue of approximately HKD 133.9 million to be recognized after March 31, 2020[20] - The decline in revenue was primarily due to the completion or near completion of several projects with relatively large initial contract amounts, which contributed less to revenue[46] Market Strategy and Future Outlook - The company is focusing on expanding its market presence and exploring new strategies for growth in the upcoming fiscal year[10] - New product development and technological advancements are being prioritized to enhance service offerings and operational efficiency[10] - The management anticipates a gradual recovery in the construction sector, which may positively impact future revenue streams[10] - Future guidance indicates a cautious optimism, with expectations of improved performance as market conditions stabilize[10] - The company plans to focus on low-risk bidding strategies and strict cost control measures to maintain competitiveness[14] - The company is actively considering potential mergers and acquisitions to strengthen its market position and diversify its service portfolio[10] - The government of Hong Kong has introduced measures to stimulate the construction industry, which may provide new opportunities for growth[19] Financial Position and Cash Flow - Total liabilities decreased to HKD 267,983,000 from HKD 316,746,000, a reduction of 15.3%[9] - Total interest-bearing borrowings amounted to approximately HKD 108.1 million as of March 31, 2020, down from HKD 139.9 million as of March 31, 2019[63] - The group held cash and bank balances of approximately HKD 23.3 million as of March 31, 2020, compared to HKD 19.7 million as of March 31, 2019[65] - The group faces risks related to cash flow patterns, which may lead to net cash outflows during the early stages of construction projects[53] - The accuracy of estimated time and costs for public and private contracts is uncertain, potentially affecting project execution and profitability[54] Cost Management and Operational Efficiency - Administrative expenses reduced from approximately HKD 40.6 million to about HKD 31.8 million, primarily due to decreases in employee benefits, meal and entertainment costs, and legal and professional fees[50] - Financial costs increased from approximately HKD 5.9 million to about HKD 9.5 million, with borrowing interest expenses rising from HKD 5.8 million to HKD 8.4 million, attributed to unexpected delays in project cash flow[51] - The company is implementing strict cost control measures to maintain competitiveness amid economic challenges[76] - The company has successfully reduced operational costs by 5% through efficiency improvements in project management[96] Corporate Governance - The management team emphasized the importance of corporate governance and transparency in decision-making processes[95] - The company has adopted the corporate governance code principles and has been compliant with the relevant regulations as of March 31, 2020[112] - The board of directors consists of six members, including four independent non-executive directors, ensuring compliance with listing rules[119] - The company emphasizes the importance of corporate transparency and accountability in its governance practices[112] - The company has established written guidelines for employee trading of company securities, adhering to the standard code[114] - The company has confirmed the independence of all independent non-executive directors according to the listing rules[122] Shareholder Relations and Dividends - The company reported a distributable reserve of approximately HKD 69.5 million as of March 31, 2020, compared to HKD 69.4 million as of March 31, 2019[182] - The board does not recommend the payment of any final dividend for the year ended March 31, 2020, consistent with the previous year[170] - The company’s financial performance and cash flow will be considered when determining future dividend payments[174] - The company’s governance report emphasizes the importance of shareholder rights and communication policies[160] - The company’s website provides extensive information for shareholders and the market[161] Employee and Operational Metrics - The group has 127 employees as of March 31, 2020, a decrease from 161 employees the previous year[85] - Employee costs for the year amounted to approximately HKD 61.0 million, down from HKD 76.0 million in the previous year[85] Risk Management - The board is responsible for evaluating the effectiveness of risk management and internal control systems, which are deemed effective and sufficient for the year[150] - The company has implemented monitoring procedures to prevent unauthorized access to insider information[149] - The board has not identified any significant uncertainties that may affect the company's ability to continue as a going concern[156]

Revenue Performance - Total revenue for the six months ended September 30, 2019, was HKD 144,583,000, a decrease of 52.8% compared to HKD 306,608,000 for the same period in 2018[15]. - The construction services segment generated revenue of HKD 6,240,000, accounting for 4.3% of total revenue, down from 21.8% in the previous year[15]. - Revenue from renovation, addition, and decoration services was HKD 134,285,000, representing 92.9% of total revenue, compared to 74.0% in the prior year[15]. - The historical building repair and restoration segment generated revenue of HKD 3,947,000, which is 2.7% of total revenue, down from 4.1% in the previous year[15]. - Property development and investment segment contributed HKD 111,000, representing 0.1% of total revenue, consistent with the previous year[15]. - The group's revenue decreased by 52.8% from approximately HKD 306.6 million for the six months ended September 30, 2018, to approximately HKD 144.6 million for the six months ended September 30, 2019[43]. - The company's revenue for the six months ended September 30, 2019, was HKD 144,583,000, a decrease of 52.8% compared to HKD 306,608,000 in the same period of 2018[110]. Profitability and Financial Performance - The company’s net profit for the six months ended September 30, 2019, was HKD 18,000,000, reflecting a significant increase compared to previous periods[11]. - Gross profit fell by 40.7% from approximately HKD 33.4 million to approximately HKD 19.8 million, while the gross profit margin increased from approximately 10.9% to approximately 13.7% due to cost control measures[45]. - Profit before tax decreased by approximately 95.5%, from about HKD 11.0 million to approximately HKD 0.5 million, attributed to reduced revenue and increased financial costs[47]. - Total comprehensive income dropped by approximately 93.4%, from about HKD 9.1 million to approximately HKD 0.6 million[47]. - The net profit attributable to the company's owners was HKD 587,000, significantly lower than HKD 9,088,000 in the prior year, representing a drop of 93.5%[110]. - Basic earnings per share fell to HKD 0.07, down from HKD 1.14, indicating a decrease of 93.9%[110]. Cash Flow and Financial Position - As of September 30, 2019, the group held cash and bank balances of approximately HKD 23.0 million, an increase from HKD 19.7 million as of March 31, 2019[60]. - The current ratio remained stable at 1.4 as of September 30, 2019, consistent with March 31, 2019, while the debt-to-equity ratio improved to 43% from 46%[60]. - The total interest-bearing borrowings decreased from approximately HKD 139.9 million as of March 31, 2019, to approximately HKD 131.2 million as of September 30, 2019[59]. - The company maintained a cash and bank balance of HKD 23,000,000, an increase from HKD 19,747,000 as of March 31, 2019[113]. - Operating cash flow for the six months ending September 30, 2019, was 5,698 thousand HKD, compared to a cash outflow of 31,715 thousand HKD in the same period of 2018[149]. - The net cash generated from operating activities was 4,845 thousand HKD, a significant recovery from the previous year's cash outflow[149]. - The company recorded a cash inflow from investing activities of 19,519 thousand HKD, compared to a cash outflow of 35,769 thousand HKD in the prior year[149]. Project and Business Development - The company has ongoing projects in various categories, with a total expected revenue of approximately HKD 250.4 million to be recognized after September 30, 2019[16]. - The company has ongoing projects exceeding HKD 3 million, including residential developments and renovation works scheduled from 2018 to 2020[22]. - Major projects include the construction of residential buildings in Yuen Long and the installation of electrical and plumbing systems in various locations, with project durations ranging from 2018 to 2020[24]. - The company is focused on expanding its property development and investment business, which has been reclassified to enhance revenue recognition[10]. - The group is actively developing its property development and investment business, with a new investment property in Osaka expected to be completed in the second half of the fiscal year[41]. - The group plans to continue its property development and investment business in Japan, with the first development project in Osaka expected to be completed in the second half of the fiscal year[70]. Risks and Challenges - The group faces risks related to cash flow volatility and the accuracy of time and cost estimates for projects, which could adversely affect profitability and liquidity[52][53]. - Future growth in Hong Kong's construction industry is contingent upon large-scale projects and overall economic conditions, which may impact demand for construction services[58]. - The overall financial condition of the group remains stable despite the challenges faced in the construction sector[42]. Governance and Compliance - The company has established an audit committee composed solely of independent non-executive directors to ensure compliance and oversight[104]. - The board believes that the current governance structure does not affect accountability and independent decision-making despite the roles of the chairman and CEO being held by the same individual[103]. - The company’s major shareholders confirmed compliance with a non-competition agreement dated March 16, 2017[92]. - No directors were found to have interests in any competing businesses as of September 30, 2019[91]. Accounting and Financial Reporting - The company has adopted new accounting standards effective April 1, 2019, which may impact financial reporting and asset recognition[163]. - The group adopted HKFRS 16 from April 1, 2019, resulting in a lease liability of HKD 8,464,000 recognized on the balance sheet[168]. - The change in accounting policy for investment properties was retrospectively applied, affecting comparative data for the six months ended September 30, 2018[188]. - The group reported an increase in tax expenses of HKD 32,000 due to the change in accounting policy for investment properties[189].

WILESTONE Milestone Builder Holdings Limited 進階發展集團有限公司 (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限責任公司) Stock code 股份代號: 1667 ANNUAL REPORT 年報 2018/2019 2 公司資料 3 財 務 概 要 5 主席致辭 7 管理層討論與分析 17 董事及高级管理層 20 企業管治報告 30 董事會報告 42 獨立核數師報告 47 綜合全面收益表 48 綜合資產負債表 20 綜合權益變動表 52 綜合現金流量表 53 綜合財務報表附註 130 五年財務概要 進階發展集團有限公司 2018/19年報 公司資料 | --- | --- | |--------------------------------------------|------------------------------------------| | | | | 董事會 | 註冊辦事處 | | 執行董事 | P.O. Box 10008, Willow ...