Financial Performance - Revenue for 2023 decreased to HK$401.352 million from HK$591.900 million in 2022, a significant decline[6] - Net loss for 2023 increased to HK$38.065 million from HK$19.391 million in 2022, primarily due to reduced revenue and increased administrative expenses[8] - Revenue for the fiscal year ending March 31, 2023, was approximately HKD 401.4 million, a decrease of HKD 190.5 million or 32.2% compared to the previous year[12][17] - Gross profit for the fiscal year ending March 31, 2023, was approximately HKD 21.4 million, a decrease of HKD 5.4 million or 20.2% compared to the previous year[18] - Gross margin increased to 5.3% for the fiscal year ending March 31, 2023, up from 4.5% in the previous year, driven by profitability from certain acquired subsidiaries[18] - Other income, gains, and losses decreased by HKD 3.0 million or 878.4% to a loss of HKD 2.7 million in FY2023 compared to a gain of HKD 0.3 million in FY2022[19] - Administrative and other expenses increased by HKD 30.1 million or 116.2% to HKD 56.0 million in FY2023 compared to HKD 25.9 million in FY2022[20] - Loss attributable to owners of the company increased by HKD 18.7 million to HKD 38.1 million in FY2023 compared to HKD 19.4 million in FY2022[21] - Cash and cash equivalents plus pledged bank deposits totaled HKD 87.9 million as of March 31, 2023, compared to HKD 87.2 million as of March 31, 2022[22] - Capital expenditures for property, plant, and equipment acquisition totaled HKD 9.6 million in FY2023 compared to HKD 7.5 million in FY2022[25] - Equity increased to HKD 188.4 million as of March 31, 2023, compared to HKD 155.9 million as of March 31, 2022[22] - Debt (lease liabilities) stood at HKD 48.7 million as of March 31, 2023, compared to none as of March 31, 2022[22] - Current ratio decreased to 1.3 as of March 31, 2023, compared to 1.7 as of March 31, 2022[22] - The company did not recommend paying any dividends for the fiscal year ending March 31, 2023[37] Business Development and Strategy - The company secured multiple large-scale contracts during the fiscal year ending March 31, 2023, but remains cautiously optimistic due to uncertain economic conditions[9] - The company is exploring potential business development and investment opportunities in other construction sectors to diversify risks and enhance shareholder returns[9] - The company secured projects under the HKD 3.5 billion "EV屋苑充電易資助計劃" (EHSS), which is expected to cover approximately 140,000 private parking spaces over three years[10] - The company is focusing on integrating green and smart technologies into its core business to enhance competitiveness in green building and sustainable development[10][16] - The company is exploring opportunities in the electric vehicle (EV) aftermarket, including EV charging infrastructure and battery recycling, leveraging its construction expertise[16] - The company is actively seeking new business opportunities in environmental, social, and governance (ESG) related areas to drive long-term growth[10][16] - The company is optimizing its cost structure and exploring diversified financing methods to prepare for business expansion over the next two to three years[10] - The company completed the acquisition of Jin Yang International (Hong Kong) Limited and Cornerstone Energy Limited, expanding its reverse supply chain management and environmental-related services business[115] - The company has acquired an environmental services business, which may provide climate-related opportunities and potential revenue growth through sustainable services[157] Environmental, Social, and Governance (ESG) - The company is committed to environmental sustainability, implementing measures to reduce emissions, waste, and improve resource efficiency[39] - The company released its Environmental, Social, and Governance (ESG) report for the fiscal year ending March 31, 2023, highlighting efforts to improve sustainability practices[113] - The company's ESG report covers all operations, including office, construction projects, and environmental-related services, with a commitment to improving internal data collection procedures and gradually expanding disclosure scope[115] - The company adheres to the four reporting principles of materiality, quantification, balance, and consistency in its ESG report[116][118][119] - The company has implemented an integrated management system, including ISO 9001, ISO 14001, and ISO 45001 standards, to monitor and manage ESG-related risks[122] - The company has established a cross-departmental ESG working group to coordinate efforts and ensure consistent performance across departments[123] - The company has set clear short-term and long-term sustainability goals, including emission reduction targets, and integrates sustainability factors into strategic planning and decision-making processes[123] - The company's Board of Directors is responsible for overseeing ESG strategies and ensuring the establishment of effective risk management and internal control systems[124] - The ESG working group is tasked with collecting ESG data, monitoring risks, and reporting on the implementation of ESG initiatives to the Board[124] - NOx emissions increased to 110.88 kg in 2022/2023, up from 29.81 kg in the previous period due to new business acquisitions[138] - SOx emissions rose to 0.16 kg in 2022/2023, compared to 0.06 kg in the prior period[138] - PM emissions reached 10.72 kg in 2022/2023, up from 2.76 kg in the previous period[138] - The company aims to reduce air pollutant emissions by 50% from 2023 levels by 2035[137] - The company's environmental management system is certified to ISO 14001:2015 standards[134] - The company received the Hong Kong Green Organization Award for its environmental practices[134] - The company has implemented measures to reduce vehicle emissions, including regular maintenance and prohibiting engine idling[136] - The company's environmental policy includes guidelines for air pollution, noise control, and waste disposal[134] - The company has identified key environmental, social, and governance (ESG) issues through a materiality assessment[128] - The company engages with stakeholders through various channels, including annual reports, meetings, and surveys[127] - Total greenhouse gas emissions decreased by 39% to 210.88 tons of CO2 equivalent, with emissions density reduced by 10% to 0.53 tons of CO2 equivalent per million HKD revenue[139][141] - Scope 1 emissions decreased to 95.86 tons of CO2 equivalent, primarily due to reduced emissions from construction projects (78.82 tons)[141] - Scope 2 emissions decreased to 115.02 tons of CO2 equivalent, with a significant reduction in emissions from construction projects (65.52 tons)[141] - Construction projects accounted for approximately 68% of total greenhouse gas emissions during the reporting period[143] - Non-hazardous waste generation decreased by 12% to 2,344 tons, but waste density increased by 30% to 5.85 tons per million HKD revenue[145][146] - Total energy consumption decreased by 32% to 620 MWh, with energy consumption density increasing by 1% to 1.55 MWh per million HKD revenue[149] - The company aims to reduce greenhouse gas emissions density by 50% by 2035 compared to the baseline year ending March 31, 2023[140] - The company targets a 50% reduction in waste density by 2035 compared to the fiscal year ending March 31, 2023[145] - The company plans to reduce energy consumption density by 50% by 2035 compared to the fiscal year ending March 31, 2023[149] - Total energy consumption decreased to 620.34 MWh in 2022/2023 from 906.50 MWh in 2021/2022, with a density of 1.55 MWh per million HKD revenue[150] - Total water consumption decreased to 6,747 cubic meters in 2022/2023 from 7,275 cubic meters in 2021/2022, with a density of 16.83 cubic meters per million HKD revenue, a 7% decrease in consumption but a 37% increase in density[151][152] - The company aims to reduce water usage by 50% from the 2023 baseline by 2035[151] - The company plans to reduce carbon-related energy usage density by 50% from the 2023 baseline by 2035[157] - The company is committed to sustainable timber procurement, using only FSC-certified or recycled wood in construction projects[153] - The company has implemented water-saving measures, including reusing water for dust suppression and promoting water conservation education among employees[151] - The company is enhancing data collection systems to monitor and record water and energy usage more effectively[151][157] - The company is focusing on reducing emissions and waste, improving resource efficiency, and minimizing environmental impact through various sustainability measures[155] - The company is aligning with international and local certification standards to assess climate change risks and update mitigation strategies regularly[157] - Extreme weather conditions such as floods and typhoons pose risks of business and supply chain disruptions, potentially reducing revenue and causing severe asset damage[158] - High temperatures could increase operational costs, with long-term impacts expected over 4 to 10 years[158] - Changes in environmental regulations may lead to increased operational costs to comply with stricter laws, with medium and long-term impacts[158] - Emerging technologies could increase operational costs due to the adoption of new methods or technologies, with medium and long-term impacts[159] - Consumer preference shifts towards more environmentally friendly products and services could reduce demand and competitiveness, with long-term impacts[159] - Development and expansion of low-emission products and services could increase revenue and attract more investors, with short and medium-term opportunities[160] Corporate Governance and Board Composition - Mr. Hou Yingsheng, aged 50, was appointed as an Independent Non-Executive Director on July 24, 2018, and is a member of the Audit Committee and Nomination Committee[30] - Mr. Zhang Jue, aged 37, was appointed as an Independent Non-Executive Director on January 14, 2022, and serves as the Chairman of the Audit Committee and a member of the Remuneration Committee[31] - Mr. Wen Yaoxiang, aged 55, was appointed as an Independent Non-Executive Director on July 24, 2018, and is the Chairman of the Remuneration Committee and a member of the Audit Committee and Nomination Committee[31] - Mr. Lan Zhanghua, aged 68, was appointed as an Independent Non-Executive Director on June 2, 2023, and is a member of the Audit Committee[33] - Mr. Hou Yingsheng has extensive experience in commercial transactions, litigation, banking, and bankruptcy matters, and has been a senior partner at Hou Yingsheng Zhou Mingbao Law Firm since May 2006[30] - Mr. Zhang Jue holds a Bachelor's degree in Financial Management from Shanghai University of Finance and Economics and a Master's degree in Accounting from Tsinghua University[31] - Mr. Wen Yaoxiang has over 26 years of experience in sales and marketing of building materials and interior decoration products[31] - Mr. Lan Zhanghua has extensive experience in banking, property development, and property investment, and has held senior positions at HSBC Canada and Hang Seng Bank[33] - Mr. Lan Zhanghua is an Independent Non-Executive Director of several listed companies, including Winland Real Estate Development Limited and Blue River Holdings Limited[33] - Mr. Wen Yaoxiang currently serves as the Regional Manager for Asia at Sebel Pty Ltd., a leading manufacturer and supplier of educational and school furniture[32] - The company's consolidated financial statements for the year ended March 31, 2023, were approved by the Board of Directors on June 23, 2023[75] - The company has adopted and complied with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules for the year ended March 31, 2023[76] - The Board of Directors held 10 meetings, the Audit Committee held 3 meetings, the Remuneration Committee held 3 meetings, the Nomination Committee held 3 meetings, and the Annual General Meeting was held once during the year ended March 31, 2023[82] - The company has established an effective mechanism to ensure the Board of Directors receives independent insights and recommendations, including having three independent non-executive directors who account for more than one-third of the Board[83] - The roles of the Chairman and the Chief Executive Officer are separate, with Mr. Kwok serving as the Chairman responsible for overall strategic planning and business development, and Mr. Chan serving as the CEO responsible for corporate and business strategy and major operational decisions[84] - The company has appointed four independent non-executive directors, accounting for more than one-third of the board members, with at least one possessing appropriate professional qualifications or expertise in accounting or financial management[85] - The audit committee reviewed and discussed the group's consolidated financial statements for the fiscal year ending March 31, 2023, and the unaudited interim results for the six months ending September 30, 2022[88] - The remuneration committee reviewed and approved the group's salary adjustments and discretionary bonus policies, which are applicable to directors and senior management[89] - The number of senior management members receiving remuneration in the range of HKD 0 to HKD 1,000,000 increased from 2 in 2022 to 4 in 2023[90] - The nomination committee discussed board composition, board diversity, and the re-election of directors at the upcoming annual general meeting, providing recommendations to the board[91] - The company's employee gender ratio as of March 31, 2023, is 2.4 males to 1 female[93] - The company plans to add a female director to the board by December 2024 to achieve board diversity[93] - The company has adopted a dividend policy to balance shareholder profit sharing with reserving sufficient funds for future growth[96] - The company has purchased appropriate liability insurance for directors and senior officers, with no claims made against them in the fiscal year ending March 31, 2023[97] - The company's risk management and internal control systems were deemed effective, with sufficient resources allocated for implementation in the fiscal year ending March 31, 2023[99] - The company uses a risk matrix to determine risk levels (L=Low, M=Medium, H=High) and has adopted a continuous risk management approach[100] - External auditors' fees for annual audit services amounted to HKD 0.8 million, while non-audit services fees were approximately HKD 0.6 million for the fiscal year ending March 31, 2023[103] - The company has established a whistleblowing policy to address fraud, unethical behavior, or violations of laws and policies, ensuring confidentiality and anonymity for reporters[109] - The company has implemented an anti-corruption policy to ensure compliance with Hong Kong and mainland China laws, covering all directors, employees, and external parties[110] - The company's risk management process involves identifying and assessing inherent risks, with residual risks reported to the board for oversight[101] - The company has developed internal control procedures for handling and disclosing insider information, ensuring compliance with disclosure regulations[102] - The company's shareholder communication policy was reviewed and deemed effective, with multiple communication channels established during the fiscal year[111] - The company plans to revise its articles of association to align with Cayman Islands laws and listing rules, with details to be disclosed in an upcoming announcement[112] - Shareholders holding at least 10% of the company's paid-up share capital can request a special general meeting, with procedures outlined in the company's articles of association[105] - The company secretary received at least 15 hours of professional training during the fiscal year, in compliance with listing rules[104] Human Resources and Employee Management - Total number of employees decreased to 51 as of March 31, 2023, compared to 72 as of March 31, 2022[27] - Total salaries and related costs (including directors' remuneration) increased to HKD 45.4 million in FY2023 compared to HKD 37.9 million in FY2022[27] - The company has established a robust human resources management policy, including fair recruitment, promotion, and performance evaluation systems[163] - The company provides comprehensive employee benefits, including salaries, bonuses, and contributions to the Mandatory Provident Fund (MPF) scheme[166] - Employee turnover rates for 2022/2023 were 59% overall, with higher rates among females (87%) and those under 30 years old (80%)[167] - The company has implemented an occupational health and safety management system certified under ISO 45001:2018 to ensure a safe working environment[168] - The company implemented safety measures including providing personal protective equipment, pre-employment training, and monthly recognition for safety performance among contractors[170] - The company received the "Occupational Safety and Health Star Enterprise" and "Outstanding Safety Performance Award" from the Occupational Safety and Health Council during the reporting period[170] - The company conducted safety training courses, including risk assessment and safety supervision, for various employee groups[173] - In the 2022/2023 fiscal year, the company reported 4 work-related injuries, a decrease from 9 in the previous year[175] - The company provided COVID-19 response measures, including flexible work arrangements and additional insurance coverage for employees[176] - 18% of the company's employees received training during the reporting period, with an average of 46 training hours per employee[177] - Male employees accounted for 44% of those trained, while female employees accounted for 56% in the 2022/2023 fiscal year[178] - General employees received the highest percentage of training at 67%, compared to 22% for senior management and 11% for middle management[178] - The average training hours per employee were 0.90 hours in 2022/2023, down from 9.49 hours in the previous year[180] - Employee headcount is categorized by gender, employment type (full-time or part-time), age group, and region[197] - Employee turnover rates are segmented by gender, age group, and region[197] - Over the past three years, the company has tracked annual work-related fatalities and their ratios[197] - Training activities are described, with percentages of trained employees broken down by gender and employee category (e.g., senior management, middle management)[197] Supply Chain and Quality Management - The company has

Financial Performance - For the fiscal year ended March 31, 2023, the group recorded revenue of approximately HKD 401.4 million, a decrease of about HKD 190.5 million or 32.2% compared to HKD 591.9 million for the fiscal year ended March 31, 2022[2] - The gross profit for the fiscal year ended March 31, 2023, was approximately HKD 21.4 million, down by about HKD 5.4 million or 20.2% from HKD 26.8 million in the previous year, resulting in a gross margin of approximately 5.3%[2] - The loss attributable to owners of the company for the fiscal year ended March 31, 2023, was approximately HKD 38.1 million, compared to a loss of HKD 19.4 million for the fiscal year ended March 31, 2022[2] - The basic and diluted loss per share for the fiscal year ended March 31, 2023, was approximately HKD 4.01, compared to HKD 2.42 for the previous year[2] - The company reported a net loss of HKD 38.1 million for the year, which included a fair value gain of HKD 4.05 million from derivative financial liabilities[4] - The company reported a net loss attributable to shareholders of HKD 38,065,000 for the year, compared to a loss of HKD 19,391,000 in the previous year[24] - Administrative and other expenses increased significantly to approximately HKD 56.0 million, up about HKD 30.1 million or 116.2% from approximately HKD 25.9 million in the previous year[57] Assets and Liabilities - The total assets less current liabilities as of March 31, 2023, amounted to HKD 197.9 million, compared to HKD 155.9 million as of March 31, 2022[6] - Non-current assets increased to HKD 145.8 million as of March 31, 2023, from HKD 11.3 million in the previous year[6] - Current liabilities decreased to HKD 169.7 million as of March 31, 2023, from HKD 204.6 million as of March 31, 2022[6] - The company’s equity attributable to owners increased to HKD 188.5 million as of March 31, 2023, from HKD 155.9 million in the previous year[7] - The total trade receivables as of March 31, 2023, amount to HKD 37,813,000, down from HKD 49,170,000 in 2022, with a provision for losses of HKD 2,392,000[30] - Trade payables decreased significantly to HKD 49,788,000 in 2023 from HKD 138,820,000 in 2022, indicating improved cash flow management[35] - The accumulated contract retention money payable as of March 31, 2023, is HKD 22,661,000, down from HKD 31,033,000 in 2022, reflecting a reduction in outstanding obligations[35] Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the fiscal year ended March 31, 2023, consistent with the previous year[2] - The company did not declare or recommend any dividends for the year ending March 31, 2023, consistent with the previous year[23] - No dividends were declared or proposed for the year 2023, consistent with 2022[65] Government Support and Expenses - The company received government subsidies totaling HKD 2,288,000 during the reporting period, primarily related to employment support programs[19] - The company reported a total depreciation and amortization expense of HKD 14,005,000, significantly higher than HKD 2,009,000 in the previous year[21] - The company’s financing costs increased to HKD 1,901,000 in 2023 from HKD 36,000 in 2022, primarily due to interest expenses on promissory notes[20] - The actual interest expense for the issued promissory notes was HKD 1,477,000 for the year ended March 31, 2023[39] - Total salary and related costs for the year ended March 31, 2023, amounted to approximately HKD 45.4 million, up from HKD 37.9 million in 2022[64] Business Segments and Revenue Sources - For the fiscal year ending March 31, 2023, the company reported total segment revenue of HKD 401,352,000, with HKD 373,132,000 from construction services and HKD 28,220,000 from reverse supply chain management and environmental services[14] - The company recognized a significant decrease in revenue from construction services, down 37% from HKD 591,900,000 in 2022 to HKD 373,132,000 in 2023[17] - Revenue from superstructure construction projects contributed approximately HKD 370.8 million, down from approximately HKD 589.7 million in 2022[50] - The group generated revenue of approximately HKD 28.2 million from reverse supply chain management and environmental services, a new business segment introduced in the current year[52] Strategic Focus and Future Outlook - The board remains cautiously optimistic about industry recovery while acknowledging ongoing competitive pressures on profit margins[53] - The group plans to focus on accelerating its transformation towards green building, aiming to help clients reduce carbon emissions and explore potential business opportunities in the electric vehicle aftermarket[53] Employee and Operational Metrics - The company employed a total of 51 employees as of March 31, 2023, down from 72 employees in the previous year[64] - The company had no significant contingent liabilities or claims as of March 31, 2023[62] - There were no significant investments, acquisitions, or disposals of subsidiaries or associated companies during the year ended March 31, 2023[62] Acquisitions and Investments - The company completed the acquisition of a 40% stake in Jin Yang for approximately HKD 42,750,000 on April 29, 2022, with an initial equity recognized at HKD 27,720,000[38] - On August 8, 2022, the company acquired an additional 60% stake in Jin Yang, making it a wholly-owned subsidiary, with the total consideration for this acquisition being HKD 41,460,000[41] - The goodwill generated from the acquisition of Jin Yang amounted to HKD 53,197,000[44] - The total identifiable net assets acquired from Jin Yang were valued at HKD 14,882,000[43] - The cash and cash equivalents acquired from Jin Yang amounted to HKD 15,605,000[44] Compliance and Governance - The audit committee reviewed the annual performance for the fiscal year ended March 31, 2023, confirming compliance with applicable accounting standards[70] - The company maintained sufficient public float as per listing rules as of March 31, 2023[66] - The company entered into a subscription and debt capitalization agreement with its ultimate holding company on March 21, 2023, to issue 103,650,000 capitalization shares[65] - The company has adopted a share option scheme to incentivize and reward directors and eligible employees[64]

Financial Performance - For the six months ended September 30, 2022, the group recorded revenue of approximately HKD 265.9 million, an increase of about HKD 42.5 million or 19.0% compared to HKD 223.4 million for the same period in 2021[6]. - Gross profit for the same period was approximately HKD 15.6 million, up by about HKD 4.0 million or 34.4% from HKD 11.6 million in the previous year, with a gross margin of approximately 5.9%[6]. - The loss attributable to owners of the company for the six months was approximately HKD 5.2 million, compared to a loss of HKD 0.3 million for the same period in 2021[6]. - Revenue for the six months ended September 30, 2022, was HKD 265,875,000, representing an increase of 18.9% compared to HKD 223,408,000 for the same period in 2021[21]. - Gross profit for the same period was HKD 15,617,000, up from HKD 11,616,000, indicating a gross margin improvement[21]. - The net loss for the six months ended September 30, 2022, was HKD 5,195,000, compared to a loss of HKD 331,000 in the prior year, reflecting a significant increase in losses[22]. - The group reported a loss attributable to owners of the company of HKD 5,165,000 for the six months ended September 30, 2022, compared to a loss of HKD 331,000 for the same period in 2021[57]. Dividends and Shareholder Returns - The board has resolved not to declare any interim dividend for the six months ended September 30, 2022, consistent with the previous year[6]. - The company issued shares worth HKD 42,750,000 related to the acquisition of an associate during the period[27]. - The company issued 90,000,000 shares to finance the acquisition of the 40% stake in Junyang, reflecting a strategic move to expand its investment portfolio[78]. Assets and Liabilities - Total assets as of September 30, 2022, amounted to HKD 289,419,000, down from HKD 349,294,000 as of March 31, 2022[24]. - Current liabilities increased to HKD 214,973,000 from HKD 204,640,000, indicating a rise in short-term financial obligations[24]. - Cash and cash equivalents decreased to HKD 65,532,000 from HKD 87,200,000, reflecting a decline in liquidity[24]. - Trade receivables decreased to HKD 33,306,000 from HKD 49,170,000, indicating a reduction in outstanding customer payments[24]. - Total assets less current liabilities increased to HKD 223,153,000 as of September 30, 2022, compared to HKD 155,930,000 as of March 31, 2022, representing a growth of 43.1%[25]. - The net assets amounted to HKD 210,411,000 as of September 30, 2022, up from HKD 155,896,000 as of March 31, 2022, indicating a 35% increase[25]. - The company's equity attributable to owners increased to HKD 210,522,000 as of September 30, 2022, compared to HKD 155,896,000 as of March 31, 2022, reflecting a growth of 35%[27]. Operational Highlights - The group aims to accelerate its transformation into the green building sector, focusing on eco-friendly materials and designs to help clients reduce carbon emissions[10]. - The company is actively exploring potential business opportunities in the electric vehicle aftermarket, including the construction and installation of EV chargers and battery recycling[10]. - The anticipated rise in electric vehicle adoption is expected to create significant growth opportunities for the company[10]. - The board remains cautiously optimistic about industry recovery despite ongoing competitive pressures affecting profit margins[10]. - The group plans to invest in research and development to enhance its competitive edge and diversify its existing construction business[12]. Expenses and Cost Management - The company reported a significant increase in administrative and other expenses, which rose to HKD 23,886,000 from HKD 11,913,000[21]. - The group’s employee benefits expenses, including directors' remuneration, increased to HKD 25,306,000 from HKD 17,987,000 year-on-year[54]. - Administrative and other expenses rose to approximately HKD 23.9 million, an increase of about HKD 12.0 million or 100.5% from approximately HKD 11.9 million in 2021[104]. Acquisitions and Investments - The company completed the acquisition of a 40% stake in Junyang International (Hong Kong) Limited for approximately HKD 42,750,000 on April 29, 2022[74]. - The total consideration for the acquisition of 60% of Junyang was HKD 41,460,000, with the fair value of identifiable net assets acquired amounting to HKD 14,882,000[88]. - The goodwill generated from the acquisition of Junyang was HKD 53,197,000, leading to a total acquisition cost of HKD 68,079,000[88]. - The acquisition of 95% of Cornerstone Energy was completed for a consideration of approximately HKD 19,950,000, paid through the issuance of 42,000,000 new shares[91]. Compliance and Governance - The company has complied with the corporate governance code as per the listing rules during the six-month period ending September 30, 2022[130]. - All directors have adhered to the prescribed trading code during the six-month period ending September 30, 2022[131]. - The Audit Committee was established on July 25, 2018, in accordance with Listing Rule 3.21, consisting of three independent non-executive directors[132]. - The Group's interim financial statements for the six months ended September 30, 2022, were reviewed and approved by the Audit Committee, ensuring compliance with applicable accounting standards and regulations[133]. - The independent auditor, BDO Limited, conducted the review of the interim financial information in accordance with the Hong Kong Institute of Certified Public Accountants' standards[133].

Financial Performance - The company reported revenue of HKD 591.9 million for the year ended March 31, 2022, compared to HKD 210.66 million in the previous year, representing an increase of approximately 180.5%[7]. - The net loss attributable to the owners of the company was HKD 19.39 million for the year ended March 31, 2022, compared to a net loss of HKD 12.31 million in the previous year, indicating an increase in loss of approximately 57.5%[7]. - The basic and diluted loss per share was HKD 2.42 cents for the year ended March 31, 2022, compared to HKD 1.54 cents in the previous year[7]. - The company's revenue for the year ended March 31, 2022, was approximately HKD 591.9 million, an increase of about HKD 381.2 million or 180.9% compared to HKD 210.7 million for the year ended March 31, 2021[16]. - The increase in total revenue was primarily due to a rise in revenue from superstructure construction projects by approximately HKD 379.5 million and from renovation, maintenance, and alteration projects by approximately HKD 1.7 million[21]. - The gross profit for the year ended March 31, 2022, was approximately HKD 26.8 million, an increase of about HKD 23.7 million or approximately 764.5% compared to HKD 3.1 million for the year ended March 31, 2021[22]. - The overall gross profit margin increased to approximately 4.5% for the year ended March 31, 2022, compared to approximately 1.5% for the year ended March 31, 2021[22]. - Other income, gains, and losses for the year ended March 31, 2022, amounted to approximately HKD 0.3 million, a decrease of about HKD 3.1 million or 91.2% compared to approximately HKD 3.4 million for the year ended March 31, 2021[23]. - Administrative and other expenses for the year ended March 31, 2022, were approximately HKD 25.9 million, an increase of about HKD 5.3 million or 25.7% compared to approximately HKD 20.6 million for the year ended March 31, 2021[25]. - Loss attributable to owners of the company increased by approximately HKD 7.1 million to about HKD 19.4 million for the year ended March 31, 2022, compared to approximately HKD 12.3 million for the year ended March 31, 2021[26]. Business Operations and Strategy - The company has successfully secured multiple large-scale building construction contracts, indicating a cautious optimism for maintaining competitiveness in the construction industry[11]. - The company anticipates increased pressure on profitability and profit margins due to intensified competition in the industry as the economic situation improves[11]. - The company is actively exploring business expansion opportunities and the feasibility of extending its operations[11]. - The company is exploring the integration of more environmental technology elements into the construction industry, focusing on the development and application of green building materials[20]. - The Hong Kong Environmental Protection Department launched a HKD 2 billion "Electric Vehicle Charging Subsidy Scheme," expected to cover approximately 60,000 private parking spaces over three years, which may lead to more construction projects available for tender[20]. - The company successfully secured a construction contract related to the subsidy scheme as a subcontractor during the reporting period[20]. - The board remains cautiously optimistic about the future, anticipating a gradual recovery of the Hong Kong economy and construction industry as the pandemic situation improves[20]. - The company is actively seeking business expansion opportunities to diversify its revenue sources and enhance long-term growth, particularly in the environmental sector[20]. - The company will continue to monitor the impact of the pandemic on its construction and renovation projects and other emerging construction opportunities[20]. Cash Flow and Financial Position - As of March 31, 2022, the total cash and cash equivalents amounted to approximately HKD 87.2 million, a slight decrease from approximately HKD 89.0 million as of March 31, 2021[27]. - The current ratio decreased from approximately 3.2 as of March 31, 2021, to about 1.71 as of March 31, 2022, primarily due to an increase in trade payables and accrued contract liabilities[27]. - Capital expenditures for the year ended March 31, 2022, totaled approximately HKD 7.5 million, a significant increase from approximately HKD 0.2 million for the year ended March 31, 2021[29]. - The total salary and related costs for the year ended March 31, 2022, were approximately HKD 37.9 million, compared to approximately HKD 30.0 million for the year ended March 31, 2021[36]. - The net proceeds from the IPO amounted to approximately HKD 78.5 million, which have been fully utilized as of March 31, 2022[35]. Governance and Management - The company appointed Mr. Tang Zhi Jian as an executive director on January 24, 2022, who has over 30 years of experience in the construction industry[40]. - Mr. Hou Ying Cheng has been an independent non-executive director since July 24, 2018, and is a member of the audit and nomination committees, providing independent judgment on strategy and performance[41]. - Mr. Zhang Jue, appointed as an independent non-executive director on January 14, 2022, has over 13 years of experience in investment and financial management[42]. - Mr. Wen Yao Xiang, independent non-executive director since July 24, 2018, has over 26 years of experience in sales and marketing of construction materials[42]. - The company’s contract manager, Mr. Wen Shi Xue, has over 41 years of experience in the construction industry, managing overall bidding and contract control[44]. - The company is focused on expanding its business network and exploring new development opportunities under the leadership of its experienced management team[40]. - The independent directors are responsible for ensuring compliance and providing independent assessments of the company's strategies and policies[41][42]. - The company has a strong emphasis on maintaining business growth through regional and local expansion plans in key market segments[43]. - The management team has extensive experience in various construction activities, ensuring effective project execution and compliance with industry standards[44]. Risk Management - The group has faced several risks, including reliance on winning non-recurring projects and potential cost overruns due to inaccurate project cost estimates[53]. - The group has experienced a competitive market environment, which may affect operations if the Hong Kong property market deteriorates further[53]. - The group has a financial risk management policy in place, with performance analysis based on key financial performance indicators[50]. - The board is responsible for evaluating risks associated with achieving strategic goals and ensuring effective risk management and internal control systems are in place[126]. - An external independent consulting firm was engaged to review the effectiveness of the company's risk management and internal control systems during the fiscal year ending March 31, 2022[126]. - The company has established a risk management and internal control system that includes a risk register to track and record identified risks, assess and evaluate risks, and develop and update response measures[128]. - The risk assessment process involves capturing and identifying inherent risks that affect the achievement of objectives, with risks categorized into low (L), medium (M), and high (H) levels based on a risk matrix[129]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report outlines the group's policies, measures, and performance regarding key ESG issues during the reporting period from April 1, 2021, to March 31, 2022[142]. - The report scope and boundaries remain consistent with the previous year's ESG report, focusing on core and significant business operations in Hong Kong[143]. - The company is committed to improving internal data collection processes and gradually expanding the scope of disclosures related to environmental and social key performance indicators[143]. - The company has implemented a comprehensive management system that includes ISO 9001, ISO 14001, and ISO 45001 standards to monitor and manage ESG-related risks[147]. - The company aims to continuously reduce emissions in accordance with government regulations across different countries and regions, with clear short-term and long-term sustainability goals[148]. - Stakeholder engagement is considered a solid foundation for the company's sustainable development and success, enhancing risk identification capabilities[150]. - The company has committed to integrating ESG factors into its long-term business strategy and operational decision-making processes[148]. - The report adheres to the "comply or explain" provisions and includes selective disclosures as recommended by ESG guidelines[145]. - The company emphasizes the importance of internal and external assessments to identify key ESG reporting issues[152]. - The board regularly reviews the effectiveness of management and adjusts action plans based on the company's ESG performance[148]. Employee and Labor Practices - As of March 31, 2022, the total number of employees is 72, an increase from 66 in the previous year[185]. - The employee turnover rate for the year is 29%, up from 17% in the previous year[185]. - The company is committed to complying with all relevant laws and regulations regarding employment and labor practices[179]. - The company provides various benefits to employees, including medical insurance and a mandatory provident fund[184]. - The company has adopted an occupational health and safety management system based on ISO 45001:2018 standards[186]. - The workforce consists of 48 males and 24 females, with a notable increase in female employees from 18 to 24[185]. - The company emphasizes the importance of employee development and conducts regular performance assessments[181]. - The company has established emergency plans for extreme weather conditions to ensure employee safety[177]. - The company conducted safety training for 21% of its employees, totaling 683 hours of training during the reporting period[195]. - The average training hours per employee was 9.49 hours, with male employees receiving an average of 11.09 hours and female employees 6.27 hours[197]. - The company reported zero fatalities during the reporting period, maintaining a death rate of 0.00 per 100,000 working hours[193]. - The number of lost workdays due to injuries was 399, resulting in a loss rate of 29.23 per 100,000 working hours[193]. - The company has established a safety management committee to oversee the implementation of safety policies and procedures[188]. - Monthly recognition programs were held to honor contractors with outstanding safety performance, enhancing safety awareness among employees[188]. - The company plans to continue reviewing and improving its occupational health and safety management systems to enhance safety awareness among employees and subcontractors[193]. Supply Chain Management - The group has 237 suppliers and subcontractors in 2021/2022, an increase from 187 in 2020/2021, all located in Hong Kong[199]. - The group strictly prohibits child labor and forced labor, with no violations reported during the reporting period[198]. - Procurement decisions are based on price, quality, delivery capability, service reputation, and integrity, ensuring ethical practices[200]. - The group evaluates suppliers and subcontractors based on their environmental and social performance to manage supply chain risks[200]. - The approved supplier list is regularly reviewed and updated based on performance assessments[200]. - Subcontractors must be legally employable individuals, with measures in place to prevent illegal labor on construction sites[198]. - The group has implemented strict identity verification processes for workers on construction sites[198]. - The group maintains constructive relationships with supply chain partners, focusing on long-term collaboration[199]. - The group’s procurement policy emphasizes objective and fair practices in sourcing materials and services[200]. - The group has not encountered any cases related to child labor, forced labor, or illegal immigrant workers during the reporting period[198].

Financial Performance - For the six months ended September 30, 2021, the group recorded revenue of approximately HKD 223.4 million, an increase of approximately HKD 138.8 million or 164.1% compared to HKD 84.6 million for the same period in 2020[6]. - Gross profit for the same period was approximately HKD 11.6 million, up by approximately HKD 10.0 million or 625.0% from HKD 1.6 million in the prior year, with a gross margin of approximately 5.2%[6]. - Loss attributable to owners of the company was approximately HKD 0.3 million, a decrease of approximately HKD 5.7 million or 95.0% compared to a loss of HKD 6.0 million in the same period last year[6]. - Revenue for the six months ended September 30, 2021, was HKD 223,408 thousand, a significant increase from HKD 84,585 thousand in the same period of 2020, representing a growth of 164.5%[13]. - Gross profit for the same period was HKD 11,616 thousand, compared to HKD 1,640 thousand in 2020, indicating a substantial increase of 608.5%[13]. - The company reported a net loss attributable to owners of HKD 331 thousand for the six months ended September 30, 2021, a significant improvement from a loss of HKD 6,015 thousand in the prior year[13]. Dividends and Shareholder Returns - The board has resolved not to declare any interim dividend for the six months ended September 30, 2021, consistent with the previous year[6]. - The company has not declared any dividends during the reporting period, maintaining a focus on reinvestment[16]. - The company did not declare any interim dividends for the six months ended September 30, 2021, consistent with the previous year[29]. - The board of directors resolved not to declare any interim dividend for the six months ended September 30, 2021[53]. Business Strategy and Development - The group is exploring business expansion opportunities and conducting feasibility studies on integrating more environmental technology elements into the construction industry[9]. - The latest government policy report on the Northern Metropolis development strategy presents new opportunities for the group, necessitating the exploration of various funding channels to support future business development[9]. - The group aims to enhance its sustainable development capabilities by focusing on environmental technology and leveraging opportunities in the green construction industry[9]. - The company is actively pursuing new strategies for market expansion and product development, although specific details were not disclosed in the financial report[16]. Financial Position and Assets - Trade receivables increased to HKD 50,291 thousand as of September 30, 2021, up from HKD 10,126 thousand as of March 31, 2021, reflecting a growth of 396.5%[14]. - Current liabilities rose to HKD 284,501 thousand as of September 30, 2021, compared to HKD 212,752 thousand as of March 31, 2021, an increase of 33.7%[14]. - Cash and cash equivalents decreased to HKD 49,229 thousand as of September 30, 2021, down from HKD 88,960 thousand as of March 31, 2021, a decline of 44.1%[14]. - The total assets less current liabilities stood at HKD 167,728 thousand as of September 30, 2021, slightly down from HKD 167,957 thousand as of March 31, 2021[15]. - The company reported a net cash outflow from operating activities of HKD 38,961 thousand for the six months ended September 30, 2021, compared to a net cash inflow of HKD 21,069 thousand in the same period of 2020[17]. - Trade receivables as of September 30, 2021, amounted to HKD 50,291,000, up from HKD 10,126,000 as of March 31, 2021, indicating a substantial increase of 396%[33][34]. - Contract assets as of September 30, 2021, were HKD 147,691,000, compared to HKD 84,597,000 as of March 31, 2021, reflecting a growth of 74.4%[24]. Expenses and Liabilities - Employee benefits expenses, including salaries and wages, increased to HKD 17,987,000 for the six months ended September 30, 2021, up from HKD 13,542,000 in 2020, reflecting a rise of approximately 32.5%[29]. - The company had a total administrative and other expenses of approximately HKD 11.9 million, an increase of about HKD 2.0 million or 20.2% compared to HKD 9.9 million for the same period in 2020[49]. - Trade payables increased significantly to HKD 105,242,000 as of September 30, 2021, compared to HKD 38,964,000 as of March 31, 2021, marking an increase of approximately 170%[36][37]. - The company had no significant outstanding debts other than certain liabilities, including lease liabilities, as of September 30, 2021[49]. Share Capital and Ownership - As of September 30, 2021, the controlling shareholders held 540 million shares, representing approximately 67.5% of the company's equity[57]. - Shiny Golden holds 540,000,000 shares, representing 67.5% of the company's equity[60]. - UG China Venture II Limited and UG Capital Limited each hold 40,000,000 shares, accounting for 5% of the company's equity[60]. - The company has maintained sufficient public float as of September 30, 2021, in accordance with listing rules[63]. Audit and Compliance - The audit committee was established on July 25, 2018, and is responsible for reviewing financial statements and overseeing external auditors[64]. - The interim financial statements for the six months ended September 30, 2021, were reviewed and approved by the audit committee, ensuring compliance with applicable accounting standards[65].

Financial Performance - The company reported a revenue of approximately HKD 210.7 million for the year ended March 31, 2021, a decrease of about HKD 72.4 million or 25.6% compared to HKD 283.1 million for the previous year[11]. - The net loss for the year was approximately HKD 12.3 million, an increase of about HKD 10.2 million from a net loss of HKD 2.1 million in the previous year[7]. - The gross profit margin declined due to additional service costs arising from changes in construction orders for completed projects, resulting in a gross loss for the year[7]. - The group recorded a gross profit of approximately HKD 3.1 million, down about HKD 17.0 million or approximately 84.6% from approximately HKD 20.1 million for the previous year, resulting in a gross margin of approximately 1.5% compared to 7.1%[16]. - Other income, gains, and losses increased to approximately HKD 3.4 million, up about HKD 1.6 million or 93.9% from approximately HKD 1.8 million in the previous year, primarily due to government subsidies related to COVID-19[17]. - The group reported a loss attributable to owners of the company of approximately HKD 12.3 million, an increase of about HKD 10.2 million compared to approximately HKD 2.1 million for the fiscal year ended March 31, 2020[20]. - The group did not recommend any dividend for the year ended March 31, 2021, compared to a dividend of HKD 0.01 per share in 2020[45]. Revenue Sources and Contracts - The company secured several large-scale building contracts expected to contribute to revenue in the second half of 2021[9]. - The company had six upper structure construction projects contributing approximately HKD 210.2 million in revenue, down from HKD 260.4 million from five projects in the previous year[12]. - The decrease in revenue was primarily due to reductions in upper structure construction and renovation, maintenance, and alteration projects, which decreased by approximately HKD 50.2 million and HKD 22.2 million, respectively[11]. Business Outlook and Strategy - The company maintains a cautiously optimistic outlook for future business and competitiveness despite the uncertain economic environment[9]. - The company is exploring potential business development and investment opportunities in other construction sectors to diversify risk and expand profit bases for shareholders[9]. - The board remains cautiously optimistic about the future, expecting a gradual recovery in the Hong Kong economy and construction industry as the post-pandemic economic recovery strengthens[14]. - The group plans to continue monitoring the pandemic situation and its impact on its construction and renovation business while enhancing customer satisfaction to ensure ongoing growth and profitability[14]. Human Resources and Employee Management - The total salary and related costs for the year ended March 31, 2021, were approximately HKD 30.0 million, compared to HKD 29.5 million in 2020[31]. - The company has a total of 66 employees as of March 31, 2021, an increase from 62 employees in the previous year[31]. - The employee turnover rate for the overall workforce is 17% for 2020/2021, up from 11% in 2019/2020, indicating a significant increase in employee attrition[171]. - The company provides a mandatory contribution to the MPF scheme, with employer contributions fully allocated to employees, ensuring compliance with local regulations[170]. - The company offers various employee benefits, including medical insurance and discretionary bonuses, to attract and retain talent[170]. - The company conducts regular performance evaluations to determine salary adjustments, bonuses, and promotions, ensuring a merit-based approach to employee development[165]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules for the fiscal year ending March 31, 2021[90]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balance of skills and experience[91]. - The roles of the chairman and CEO are separated to maintain a balance of power and authority within the company[96]. - The company’s governance policies and practices are regularly reviewed to ensure compliance with legal and regulatory requirements[103]. - The company has established a clear framework for the appointment and re-election of directors, ensuring compliance with its articles of association[98]. Risk Management - The board is responsible for evaluating the nature and extent of risks acceptable to achieve strategic goals and ensuring effective risk management systems are in place[114]. - An external independent consulting firm was hired to review the effectiveness of the company's risk management and internal control systems during the year ending March 31, 2021[114]. - The company employs a continuous risk management approach to identify and assess inherent risks affecting its objectives[115]. - The risk matrix categorizes risks into low, medium, and high levels, reflecting the management's focus and required efforts to address them[115]. Environmental, Social, and Governance (ESG) Initiatives - The group has implemented an integrated management system certified to ISO 9001, ISO 14001, and ISO 45001 standards to monitor and manage environmental, social, and governance risks[132]. - The group reported a slight decrease in air pollutant emissions for the 2020/2021 period, attributed to reduced diesel and gasoline consumption[143]. - The company has implemented waste management strategies to minimize environmental impact, including recycling and reusing materials[154]. - The company aims to balance operational needs with minimizing environmental impact through sustainable practices and compliance with relevant regulations[163]. - The company has committed to improving internal data collection processes and gradually expanding the scope of disclosures in its environmental, social, and governance (ESG) reporting[129]. Community Engagement and Social Responsibility - The company donated HKD 14,000 to educational initiatives during the reporting period, supporting organizations that assist students in need[200]. - The company encourages employee volunteerism and strategic donations to positively impact community development[200]. Safety and Health Management - The company has implemented a health and safety management system certified under ISO 45001:2018, demonstrating its commitment to occupational health and safety[174]. - Safety training is emphasized, with various courses provided to enhance safety knowledge among all workers, including basic safety training for all employees[179]. - The company reported zero fatalities during the reporting period, maintaining a death rate of 0.00 per 100,000 working hours[182]. - There were no lost workdays due to injuries, compared to 306 lost workdays in the previous year, resulting in a loss day rate of 0.00 per 100,000 working hours[182].

Financial Performance - For the six months ended September 30, 2020, the group recorded revenue of approximately HKD 84.6 million, a decrease of approximately HKD 50.6 million or 37.4% compared to HKD 135.2 million for the same period in 2019[10]. - Gross profit for the same period was approximately HKD 1.6 million, down approximately 76.5% from HKD 6.8 million in the prior year, resulting in a gross margin of approximately 1.9%[10]. - The loss attributable to owners of the company was approximately HKD 6.0 million, compared to a loss of approximately HKD 2.3 million for the same period in 2019[10]. - Basic and diluted loss per share for the period was approximately HKD 0.75, compared to HKD 0.28 for the same period in 2019[10]. - The decline in revenue was primarily due to decreases in both superstructure construction and renovation, maintenance, alteration, and addition works, which fell by approximately HKD 32.3 million and HKD 18.3 million, respectively[13]. - The company reported a loss before tax of approximately HKD 6,015,000 for the six months ended September 30, 2020, compared to a loss of HKD 2,276,000 for the same period in 2019, indicating an increase in loss of 164%[53][55]. Cash Flow and Assets - Cash and cash equivalents increased to HKD 121,995,000 as of September 30, 2020, from HKD 108,991,000 at the end of March 2020, reflecting a growth of 11.8%[33]. - The company reported a net cash inflow from operating activities of HKD 21,069,000, down 47.3% from HKD 39,751,000 in the previous year[33]. - Total assets less current liabilities decreased to HKD 174,256,000 from HKD 188,792,000, a decline of 7.7%[28]. - The company’s total equity as of September 30, 2020, was HKD 174,256,000, down from HKD 188,271,000 as of March 31, 2020, a decrease of 7.4%[28]. - Trade receivables as of September 30, 2020, were HKD 23,742 thousand, down 46.8% from HKD 44,584 thousand as of March 31, 2020[45]. - The company’s non-current assets decreased to HKD 2,526,000 from HKD 12,606,000, a significant reduction of 80%[25]. Dividends and Shareholder Information - The board has resolved not to declare any interim dividend for the six months ended September 30, 2020[10]. - The company did not declare any dividends during the period, compared to HKD 8,000,000 paid in the previous year[29]. - The major shareholders, Mr. Chan Kam Tong and Mr. Chan Kam Ming, each hold 67.5% of the company's shares through Shiny Golden Limited[98]. - Shiny Golden holds 67.5% of the company's equity, with 540,000,000 shares[102]. - UG China Venture II Limited and UG Capital Limited each hold 5% of the company's equity, with 40,000,000 shares[102]. Government Support and COVID-19 Impact - The COVID-19 pandemic has severely impacted the business and investment environment in Hong Kong, leading to reduced investment in the construction industry[14]. - The group recognized government subsidies of HKD 2,123 thousand during the reporting period, aimed at supporting employee wages[47]. - Other income for the six months ended September 30, 2020, was HKD 2,230 thousand, compared to HKD 657 thousand for the same period in 2019, representing a significant increase[47]. Corporate Governance - The audit committee was established on July 25, 2018, to oversee external auditor appointments and financial reporting[109]. - The interim financial statements for the six months ended September 30, 2020, were reviewed and approved by the audit committee[110]. - The company has adopted and complied with the corporate governance code as of September 30, 2020[106]. - All directors complied with the standard code of conduct regarding securities trading during the six months ended September 30, 2020[107]. - The board of directors includes both executive and independent non-executive members, ensuring governance oversight[111].

Financial Performance - The company reported a revenue of HKD 283.148 million for the year ended March 31, 2020, a decrease of 33.5% from HKD 425.773 million in 2019[6]. - The company incurred a loss before tax of HKD 935,000 compared to a profit of HKD 22.383 million in the previous year[6]. - The loss attributable to shareholders was HKD 2.051 million, translating to a loss per share of HKD 0.26, down from a profit of HKD 16.824 million and earnings per share of HKD 2.33 in 2019[6]. - The group's gross profit for the fiscal year ended March 31, 2020, was approximately HKD 20.1 million, a decrease of about HKD 24.9 million or approximately 55.3% from approximately HKD 45.0 million for the fiscal year ended March 31, 2019[18]. - The overall gross profit margin decreased to approximately 7.1% for the fiscal year ended March 31, 2020, down from approximately 10.6% for the fiscal year ended March 31, 2019[18]. - Other income for the fiscal year ended March 31, 2020, was approximately HKD 1.8 million, a decrease of about HKD 2.7 million or 60.0% compared to approximately HKD 4.5 million for the fiscal year ended March 31, 2019[19]. - Administrative and other expenses for the fiscal year ended March 31, 2020, were approximately HKD 19.8 million, a decrease of about HKD 7.2 million or 26.7% from approximately HKD 27.0 million for the fiscal year ended March 31, 2019[20]. - The group reported a loss attributable to owners of the company of approximately HKD 2.1 million for the fiscal year ended March 31, 2020, compared to a profit of approximately HKD 16.8 million for the fiscal year ended March 31, 2019[21]. - For the fiscal year ended March 31, 2020, the group's revenue was approximately HKD 283.1 million, a decrease of about HKD 142.7 million or 33.5% compared to approximately HKD 425.8 million for the fiscal year ended March 31, 2019[17]. Revenue Sources and Projects - The company had five upper structure construction projects contributing approximately HKD 260.4 million in revenue, down from eight projects contributing about HKD 285.5 million in 2019[15]. - The decline in revenue was attributed to ongoing projects nearing completion, resulting in reduced revenue contributions[10]. - The local economy has entered a technical recession since the third quarter of 2019, severely impacting the construction industry and reducing the number of available tender projects[10]. - The company is exploring potential business development and investment opportunities in the construction industry to broaden revenue sources and enhance shareholder value[11]. - The company is committed to prudently bidding for new projects with better profit margins in the upcoming fiscal year[11]. Economic Outlook - The company anticipates a challenging economic environment in Hong Kong, with expectations of a downturn in the coming year[11]. - The increase in expected credit losses on long-term trade receivables has contributed to the overall financial challenges faced by the company[10]. Cash and Capital Management - As of March 31, 2020, the group's cash and cash equivalents totaled approximately HKD 109.0 million, an increase from approximately HKD 75.4 million as of March 31, 2019[22]. - The current ratio increased from approximately 2.7 as of March 31, 2019, to approximately 2.8 as of March 31, 2020, primarily due to an increase in cash and bank balances[22]. - Capital expenditure for the fiscal year ended March 31, 2020, was approximately HKD 0.2 million, a significant decrease from approximately HKD 2.0 million for the fiscal year ended March 31, 2019[23]. - The group has no significant capital commitments as of March 31, 2020[24]. - The net proceeds from the IPO amounted to HKD 78.5 million, with actual usage as of March 31, 2020, being HKD 65.2 million, leaving an unutilized amount of HKD 13.3 million[29]. Dividend and Shareholder Information - The company proposed a final dividend of HKD 0.01 per share for the year ended March 31, 2020, compared to no dividend in 2019[41]. - Directors and key executives hold a total of 540,000,000 shares, representing approximately 67.5% of the company's equity[75]. - Shiny Golden holds 540,000,000 shares, representing 67.5% of the company's equity[78]. - UG China Venture II Limited and UG Capital Limited each hold 40,000,000 shares, accounting for 5% of the company's equity[78]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules for the fiscal year ending March 31, 2020[84]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balance of skills and experience[90]. - The roles of the chairman and CEO are separated to ensure a balance of power and authority[89]. - The company has committed to continuous professional development for all directors to enhance their knowledge and skills[88]. - All independent non-executive directors have confirmed their independence according to the listing rules[90]. - The board held a total of 6 meetings, with all directors attending 100% of the meetings[96]. - The Audit Committee consists of three independent non-executive directors, ensuring compliance with listing rules and corporate governance standards[98]. - The Remuneration Committee reviewed the remuneration policy and monitored the compensation of executive directors and senior management, with 4 individuals earning between HKD 1,000,001 and HKD 1,500,000 in 2020[99][100]. - The Nomination Committee is responsible for evaluating the board's structure and diversity, and it includes two independent non-executive directors[101]. Environmental, Social, and Governance (ESG) Practices - The group has implemented an integrated management system certified to ISO 9001, ISO 14001, and ISO 45001 standards to monitor and manage environmental, social, and governance risks[127]. - The group aims to enhance stakeholder engagement and improve sustainability practices to create long-term value[127]. - The group has established a governance framework where the board is responsible for environmental, social, and governance strategies and risk assessments[128]. - The group has not reported any violations of environmental regulations during the reporting period, ensuring compliance with local laws[135]. - The group plans to continue monitoring air pollutant emissions and improve data collection systems for future reduction targets[136]. - The company has implemented measures to reduce emissions and manage waste effectively[185]. Employee and Workplace Safety - The total number of employees as of March 31, 2020, was 62, an increase from 59 in the previous year, with a male to female ratio of 46 to 16[161]. - The employee turnover rate decreased to 11% in 2019/2020 from 31% in 2018/2019, with male turnover at 13% and female turnover at 6%[161]. - The group adheres to ISO 45001:2018 standards for occupational health and safety management, ensuring a safe working environment for employees and subcontractors[162]. - Safety training is recognized as a crucial factor in preventing workplace injuries, with external training providers engaged to deliver safety courses[166]. - The group has established a corporate safety management committee to oversee the implementation of safety policies and procedures[163]. - The company maintained a zero fatality rate with no deaths reported during the reporting period[169]. Community Engagement and Contributions - The company donated HKD 17,000 to support community initiatives, including the "Star Program" for students in need and the "Hong Kong and Mainland Charity Fund" for underprivileged communities[183]. - The company focuses on sustainable community development and encourages employee volunteerism through strategic donations and capacity-building activities[183]. - The company has established a framework for community investment, sponsorship, and donation activities to contribute positively to community welfare[183]. - The company emphasizes long-term cooperation with stakeholders based on mutual trust and respect[183].

Financial Performance - For the six months ended September 30, 2019, the group recorded revenue of approximately HKD 135.2 million, a decrease of about HKD 112.2 million or 45.4% compared to the same period in 2018[8]. - Gross profit for the same period was approximately HKD 6.8 million, down about 65.8% from HKD 19.9 million in the prior year, resulting in a gross margin of approximately 5.0%[8]. - The company reported a loss attributable to owners of approximately HKD 2.3 million, compared to a profit of HKD 2.6 million in the same period of 2018[8]. - Basic and diluted loss per share for the period was HKD 0.28, while the basic and diluted earnings per share for the same period in 2018 was HKD 0.40[8]. - The group recognized other income of HKD 657,000 for the six months ended September 30, 2019, a significant decrease from HKD 2,616,000 in the same period of 2018, representing a drop of about 75%[56]. - The group reported a loss attributable to owners of the company of approximately HKD 2.3 million for the six months ended September 30, 2019, compared to a profit of approximately HKD 2.6 million for the same period in 2018[96]. Revenue Breakdown - Revenue for the six months ended September 30, 2019, was HKD 135,212 thousand, a decrease of 45.3% compared to HKD 247,383 thousand for the same period in 2018[17]. - The revenue from superstructure construction projects contributed approximately HKD 116.6 million, down from approximately HKD 217.9 million in 2018, reflecting a decrease of about HKD 101.3 million[89]. - The revenue from repair, maintenance, renovation, and addition projects was approximately HKD 18.6 million, compared to approximately HKD 29.5 million in 2018, a decrease of about HKD 10.9 million[90]. Cash Flow and Assets - Cash and cash equivalents increased to HKD 103,101 thousand from HKD 63,380 thousand, representing a 62.7% increase[22]. - Operating cash flow for the six months was HKD 39,751 thousand, a significant improvement from a cash outflow of HKD 6,756 thousand in the same period last year[22]. - Total assets less current liabilities as of September 30, 2019, were HKD 189,161 thousand, slightly down from HKD 190,322 thousand as of March 31, 2019[19]. - The company's net assets decreased to HKD 188,046 thousand from HKD 190,322 thousand, reflecting a decline of 1.2%[19]. - Trade receivables decreased significantly to HKD 28,986 thousand from HKD 63,297 thousand, indicating a reduction of 54.3%[18]. Dividends and Share Capital - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2019[8]. - The company issued 200,000,000 new ordinary shares at a price of HKD 0.55 per share, raising a total of HKD 110,000,000 before issuance costs[84]. - The board did not recommend the payment of an interim dividend for the six months ended September 30, 2019, compared to no dividend in 2018[110]. Financial Reporting Standards - The interim financial statements as of September 30, 2019, are presented in Hong Kong dollars (HKD) and are not audited, but have been reviewed by an independent auditor[24]. - The adoption of new or revised Hong Kong Financial Reporting Standards effective from April 1, 2019, includes HKFRS 16 on leases, which significantly impacts the accounting treatment of leases[25]. - The impact of adopting HKFRS 16 resulted in the recognition of right-of-use assets amounting to HKD 2,874,000 and lease liabilities of HKD 2,819,000 as of April 1, 2019[30][33]. - The adoption of HKFRS 16 did not have a significant impact on the group's accounting policies or the presentation of its performance and financial position[27]. Employee and Operational Costs - Employee benefit expenses, including directors' remuneration, increased to HKD 14,449,000 for the six months ended September 30, 2019, compared to HKD 11,521,000 in the same period of 2018, marking an increase of about 25%[58]. - Total employee costs for the six months ended September 30, 2019, were approximately HKD 14.4 million, an increase from HKD 11.5 million for the same period in 2018[106]. - Administrative and other expenses for the six months ended September 30, 2019, were approximately HKD 9.6 million, a decrease of about HKD 7.9 million or 45.1% compared to HKD 17.5 million for the same period in 2018[95]. Corporate Governance - Major shareholders, Chen Jintang and Chen Jinming, each hold 540,000,000 shares, representing 67.5% of the company's equity[112]. - The company confirmed compliance with the corporate governance code as per the listing rules for the six months ended September 30, 2019[120]. - The audit committee was established on July 25, 2018, in accordance with Listing Rule 3.21, with responsibilities including recommending the appointment and remuneration of external auditors and reviewing financial statements[125].

Financial Performance - The company's revenue for the fiscal year ended March 31, 2019, was approximately HKD 425.8 million, a decrease of 5.1% from HKD 448.6 million in the previous year[33]. - Profit attributable to the company's owners was approximately HKD 16.8 million, down 27.9% from HKD 23.3 million in the previous year[37]. - The gross profit for the fiscal year was approximately HKD 45.0 million, an increase of 2.3% from HKD 44.0 million in the previous year, with a gross margin of 10.6% compared to 9.8% in the previous year[34]. - Other income increased by 200.0% to approximately HKD 4.5 million, up from HKD 1.5 million in the previous year, mainly due to one-time interest income from public offering subscription funds[35]. - Administrative and other expenses rose by 66.7% to approximately HKD 27.0 million, compared to HKD 16.2 million in the previous year, largely due to one-time listing expenses and increased legal and professional fees[36]. - The company recorded an adjusted net profit of approximately HKD 26.2 million, down 8.4% from HKD 28.6 million in the previous year, excluding non-recurring listing expenses[37]. Project Performance - The company completed 8 upper structure construction projects contributing approximately HKD 285.5 million in revenue, down from HKD 420.7 million from 7 projects in the previous year[31]. - The company undertook 10 renovation, maintenance, and alteration projects, generating approximately HKD 140.3 million in revenue, a significant increase from HKD 27.9 million from 7 projects in the previous year[32]. Future Outlook - The company maintains a cautious optimism regarding future business prospects despite global economic uncertainties, focusing on prudent bidding for new development projects and consolidating human resources[30]. - The company plans to leverage its listing advantages and resources to explore potential business developments in the construction industry[30]. Financial Position - As of March 31, 2019, the group's cash and cash equivalents totaled approximately HKD 75.4 million, an increase from HKD 24.7 million as of March 31, 2018[38]. - The current ratio improved from 1.8 as of March 31, 2018, to 2.7 as of March 31, 2019, due to an increase in cash and bank balances[38]. - The debt-to-asset ratio decreased from 10.3% as of March 31, 2018, to 0% as of March 31, 2019, primarily due to the repayment of bank loans using net proceeds from the listing[38]. - Total capital expenditure for the year ended March 31, 2019, was approximately HKD 2.0 million, mainly for leasing a new office for business expansion[40]. - The net proceeds from the listing amounted to approximately HKD 78.5 million, with HKD 48.2 million utilized by March 31, 2019[45]. Employee Information - As of March 31, 2019, the group employed a total of 59 employees, with total salary and related costs amounting to approximately HKD 24.0 million[43]. - The total number of employees as of March 31, 2019, was 59, with a turnover rate of 31% overall[177]. - The male employee turnover rate was 35%, while the female turnover rate was 19%[177]. - 12% of the total workforce received training during the reporting period, amounting to 320 training hours[186]. - The average training hours per employee were 5.42 hours, with male employees averaging 6.51 hours and female employees averaging 2.50 hours[186]. - 20% of senior management and 50% of middle management received training, indicating a focus on higher-level employee development[187]. Corporate Governance - The board of directors includes six members, with the chairman appointed on July 25, 2018[72]. - The independent non-executive directors confirmed that there were no breaches of the non-competition commitments by the controlling shareholders[77]. - The board consists of three independent non-executive directors, representing more than one-third of the board, with at least one possessing relevant professional qualifications[125]. - The board held a total of 7 meetings, with all directors attending 100% of the meetings[109]. - The Audit Committee, consisting of three independent non-executive directors, was established on August 21, 2018, to oversee financial reporting and internal controls[112]. - The Remuneration Committee reviewed the remuneration policies and monitored the compensation of executive directors and senior management[115]. - The Nomination Committee was formed to evaluate the board's structure and diversity, ensuring alignment with the company's strategic goals[117]. Environmental, Social, and Governance (ESG) Initiatives - The first Environmental, Social, and Governance (ESG) report covers the group's overall performance from April 1, 2018, to March 31, 2019[143]. - The report outlines key performance indicators related to environmental and social aspects, focusing on core and significant business operations in Hong Kong[144]. - The company aims to integrate ESG factors into operations to create sustainable value and manage associated risks through strict internal controls[146]. - The company has implemented an environmental management system certified to ISO 14001:2015 standards, focusing on minimizing adverse environmental impacts from its operations[153]. - The company has committed to improving waste reduction measures and will continue to disclose relevant results in the future[160]. - The company has established a waste management strategy prioritizing waste avoidance, material reuse, and recycling to mitigate environmental impact[160]. Safety and Health - The company adheres to OHSAS 18001:2007 standards for occupational health and safety management systems[178]. - Safety measures include mandatory personal protective equipment for new workers and monthly recognition for top-performing contractors in safety[180]. - The company reported a total of 5 work-related injury cases during the reporting period, resulting in an accident rate of 0.16 per 100,000 working hours[185]. - No fatalities were reported due to work-related incidents, indicating a strong safety performance[199]. - The company has implemented internal control measures, including hiring full-time safety personnel to enhance safety management systems[185]. Community Engagement - Community investment efforts include a donation of HKD 14,000 to the Starry Sky Project and HKD 1,000,000 to the Hong Kong Community Chest, focusing on education and community development[196].