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 ...