2024年 2023年 附註 千港元 千港元 非流動資產 物業、廠房及設備 7,055 9,271 使用權資產 9,515 7,021 按公允值計入損益的金融資產 12,805 13,383 預付款項及按金 10,536 4,123 非流動資產總額 39,911 33,798 流動資產 合約資產及貿易應收款項 10 389,692 251,761 預付款項、按金及其他應收款項 33,917 57,013 按公允值計入損益的金融資產 19,010 13,735 抵押存款 34,190 34,190 現金及銀行結餘 77,467 64,226 流動資產總額 554,276 420,925 流動資產淨額 242,343 251,232 總權益 278,329 281,846 附註 總資產減流動負債 282,254 285,030 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Wecon Holdings Limited 偉工控股有限公司 （於開曼群島註冊 ...

Project and Contract Overview - As of September 30, 2023, the Group had nine major projects on hand with an awarded contract sum of HK$10.0 million or above[10]. - During the six months ended September 30, 2023, the Group completed four major projects with an awarded contract sum of HK$10.0 million or above[10]. - The Group was awarded two sizeable contracts during the same period, with an aggregate contract sum of approximately HK$546.7 million[11]. Business Strategy and Market Outlook - The Group aims to diversify its customer base and enhance its reputation by ensuring timely project completion with high quality[11]. - The management remains prudently optimistic about the prospects of the construction industry in Hong Kong[11]. - The Group plans to invest in building construction-related services to enhance capabilities and provide synergies to existing business[12]. - The Group believes that building information modeling services can differentiate it from competitors by providing innovative technical solutions[12]. - The Group is committed to maintaining high quality and workmanship in its services[12]. Financial Performance - The Group's revenue increased by approximately HK$43.0 million or approximately 9.5%, from approximately HK$451.4 million for the six months ended September 30, 2022, to approximately HK$494.4 million for the six months ended September 30, 2023[20][24]. - Revenue from building construction services decreased by approximately HK$1.4 million or approximately 0.4%, from approximately HK$315.0 million to approximately HK$313.6 million during the same period[21][25]. - Revenue from RMAA works services increased by approximately HK$44.4 million or approximately 32.6%, from approximately HK$136.4 million to approximately HK$180.8 million[22][26]. - The cost of sales increased by approximately HK$41.5 million or approximately 9.6%, from approximately HK$430.7 million to approximately HK$472.2 million[28][31]. - The gross profit increased by approximately HK$1.5 million or approximately 7.2%, from approximately HK$20.7 million to approximately HK$22.2 million[29][32]. - The gross profit margin slightly decreased from approximately 4.6% to approximately 4.5%[29][32]. - The gross profit from building construction services increased by approximately HK$0.3 million or approximately 2.2%, with a gross profit margin increase from approximately 4.4% to approximately 4.5%[30][33]. - The gross profit from RMAA works services increased by approximately HK$1.1 million or approximately 15.7%, but the gross profit margin decreased from approximately 5.1% to approximately 4.5%[35][38]. - Other income and gains decreased by approximately HK$1.9 million or approximately 32.8%, from approximately HK$5.8 million to approximately HK$3.9 million[36]. - Administrative and other operating expenses decreased by approximately HK$1.1 million or approximately 4.5%, from approximately HK$24.2 million to approximately HK$23.1 million[37]. Taxation and Profitability - The income tax expense was approximately HK$0.6 million for the six months ended September 30, 2023, compared to an income tax credit of approximately HK$0.2 million for the six months ended September 30, 2022, resulting in an effective tax rate of approximately 22.1%[43]. - Net profit decreased by approximately HK$0.4 million or approximately 15.4% from approximately HK$2.6 million for the six months ended September 30, 2022 to approximately HK$2.2 million for the six months ended September 30, 2023[44]. Financial Position and Liquidity - As at 30 September 2023, the Group had pledged deposits and cash and cash equivalents of approximately HK$75.3 million, down from approximately HK$98.4 million as at 31 March 2023[60]. - The current ratio of the Group was approximately 2.2 times as at 30 September 2023, compared to approximately 2.5 times as at 31 March 2023[60]. - As at 30 September 2023, the Group had no outstanding bank borrowings, and lease liabilities amounted to approximately HK$7.2 million[66]. - The Group's banking facilities were secured by pledged deposits of approximately HK$34.2 million and a life insurance policy of approximately HK$10.1 million[67]. - As of September 30, 2023, the gearing ratio of the Group was approximately 2.6%, an increase from 2.4% as of March 31, 2023[69][71]. - The Group had lease liabilities of approximately HKD 7.2 million as of September 30, 2023, compared to HKD 6.7 million as of March 31, 2023[70]. - The Group has no outstanding bank borrowings as of September 30, 2023, consistent with March 31, 2023[70]. Shareholder Information and Corporate Governance - The Board has resolved not to declare any interim dividend for the six months ended September 30, 2023, the same as the previous year[87][89]. - The number of share options available for grant under the Share Option Scheme remained at 80,000,000 as of September 30, 2023[91]. - No share options have been granted or exercised under the Share Option Scheme since its adoption on January 21, 2019[91]. - The Group has complied with all applicable code provisions of the Corporate Governance Code during the reporting period, except for the separation of the roles of Chairman and CEO[74][75]. - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, maintaining compliance with Listing Rules[81][84]. - The Group has recognized the importance of compliance with regulatory requirements and has adhered to relevant laws and regulations without any material breaches[86][88]. Stock Options and Share Awards - As of September 30, 2023, the number of stock options available for grant under the stock option plan was 80,000,000, representing 10% of the issued shares[94]. - No stock options were granted, exercised, expired, canceled, or lapsed under the stock option plan from its adoption date until September 30, 2023[94]. - As of September 30, 2023, the trustee held 6,796,000 shares under the share award plan, with no shares granted to eligible participants[95]. - No shares have been granted, vested, canceled, or lapsed under the share award plan since its adoption date until September 30, 2023[95]. Major Shareholders - Mr. KY Tsang holds a long position of 600,000,000 shares, representing 75% of the company's shareholding[100]. - Triple Arch Limited, which is 100% beneficially owned by Mr. KY Tsang, holds 600,000,000 shares, also representing 75% of the company's shareholding[106]. - Ms. Lai Yuk Lin, Eliza, holds an interest in 600,000,000 shares through her spouse, Mr. KY Tsang, representing 75% of the company's shareholding[106]. Related Party Transactions - No connected transactions or continuing connected transactions were entered into by the Group during the six months ended September 30, 2023[113]. - There were no significant contracts related to the Group's business involving any Director or their connected entities as of September 30, 2023[112]. - The Company and its subsidiaries did not purchase, sell, or redeem any shares during the six months ended September 30, 2023[115]. Cash Flow and Investments - Net cash flows used in operating activities improved to HK$4,648,000 in 2023 from HK$14,526,000 in 2022, indicating a reduction of 68.1%[149]. - The company reported a net cash flow used in investing activities of HK$1,370,000, a significant improvement from HK$10,261,000 in the previous year, showing a reduction of 86.6%[150]. - The principal portion of lease payments decreased to HK$2,335,000 from HK$3,454,000, a decrease of 32.5%[150]. - Cash generated used in operations was reported at HK$4,524,000, an improvement from HK$14,445,000 in the previous year, indicating a reduction of 68.7%[149]. Financial Statements and Accounting Policies - The interim financial information has been reviewed by the audit committee of the Board, ensuring compliance with relevant accounting standards[123]. - The financial statements of the subsidiaries are prepared for the same reporting period as the Company, ensuring consistent accounting policies[164]. - The Group's accounting policies remain consistent with those applied in the preparation of the annual consolidated financial statements for the year ended 31 March 2023, with no significant impact from new HKFRSs adopted[169]. - Segment results, assets, and liabilities for the six months ended 30 September 2023 and 2022 are provided for resource allocation and performance assessment[174]. Asset and Liability Overview - Total assets as of September 30, 2023, amounted to HK$473,455,000, an increase from HK$454,723,000 as of March 31, 2023[180]. - Total liabilities increased to HK$198,935,000 from HK$172,877,000, indicating a rise of 15.1%[180]. - Segment assets for construction contracts rose to HK$263,779,000 from HK$229,408,000, reflecting an increase of 15.0%[180]. - Segment liabilities for RMAA works increased to HK$40,527,000 from HK$38,920,000, a rise of 4.0%[180]. - Total non-current assets increased to HK$37,215,000 as of September 30, 2023, up from HK$33,798,000 on March 31, 2023, representing an increase of 10.4%[141]. - Current assets totaled HK$436,240,000 as of September 30, 2023, compared to HK$420,925,000 on March 31, 2023, reflecting a growth of 3.6%[141]. - Net current assets decreased to HK$240,411,000 as of September 30, 2023, down from HK$251,232,000 on March 31, 2023, a decline of 4.3%[141]. - Total equity attributable to equity holders of the Company decreased to HK$274,520,000 as of September 30, 2023, from HK$281,846,000 on March 31, 2023, a decrease of 2.6%[142]. Employee and Operational Expenses - Total staff costs (excluding Directors' remuneration) were approximately HK$46.9 million and HK$45.0 million for the six months ended September 30, 2023 and 2022, respectively[49]. - For the six months ended September 30, 2023, employee benefit expenses (excluding directors' remuneration) totaled HK$46,940,000, an increase of 4.4% from HK$44,959,000 in 2022[196]. - The employee benefit expense included in cost of sales was HK$38,182,000, compared to HK$36,346,000 in 2022, reflecting a growth of 5.1%[196]. - Administrative and other operating expenses decreased by approximately HK$1.1 million or approximately 4.5%, from approximately HK$24.2 million to approximately HK$23.1 million[37].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Wecon Holdings Limited 偉工控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1793） 截至2023年9月30日止六個月的 中期業績公告 財務摘要 • 收益由截至2022年9月30日止六個月約451.4百萬港元增加至截至2023年9月30日止六個月約 494.4百萬港元，增幅約43.0百萬港元或約9.5%。 • 毛利由截至2022年9月30日止六個月約20.7百萬港元增加至截至2023年9月30日止六個月約 22.2百萬港元，增幅約1.5百萬港元或約7.2%。 • 毛利率由截至2022年9月30日止六個月約4.6%輕微下跌至截至2023年9月30日止六個月約 4.5%。 • 本公司權益持有人應佔溢利由截至2022年9月30日止六個月約2.6百萬港元減少至截至2023 年9月30日止六個月約2.2百萬港元，減幅約0.4百萬港元或約15.4%。 ...

Financial Performance - The revenue of Wecon Holdings Limited decreased by approximately HK$283.7 million or approximately 24.6%, from approximately HK$1,152.7 million for the year ended March 31, 2022, to approximately HK$869.0 million for the year ended March 31, 2023[7]. - The profit attributable to equity holders for the year ended March 31, 2023, was approximately HK$5.9 million, a decrease of approximately HK$8.3 million compared to the previous year[7]. - Revenue from building construction services decreased by approximately HK$426.0 million or approximately 43.2%, from approximately HK$986.7 million to approximately HK$560.7 million during the same period[32]. - Revenue from RMAA works services increased by approximately HK$142.3 million or approximately 85.7%, from approximately HK$166.0 million to approximately HK$308.3 million[33]. - The cost of sales decreased by approximately HK$269.0 million or approximately 24.5%, from approximately HK$1,099.0 million to approximately HK$830.0 million[38]. - The gross profit decreased by approximately HK$14.7 million or approximately 27.4%, from approximately HK$53.7 million to approximately HK$39.0 million[39]. - The gross profit margin for the Group was approximately 4.5% for the year ended March 31, 2023, compared to 4.7% for the previous year, representing a decrease of approximately 0.2 percentage points[39]. - The net profit of the group decreased by approximately HK$8.3 million or about 58.5%, from approximately HK$14.2 million to approximately HK$5.9 million[54]. - Other income and gains increased by approximately HK$5.9 million or about 80.8%, from approximately HK$7.3 million to approximately HK$13.2 million[46]. - Administrative and other operating expenses rose by approximately HK$1.1 million or about 2.5%, from approximately HK$44.3 million to approximately HK$45.4 million[47]. - Finance costs increased by approximately HK$51,000 or about 39.5%, from approximately HK$129,000 to approximately HK$180,000[52]. - Income tax decreased by approximately HK$1.6 million or about 69.6%, from approximately HK$2.3 million to approximately HK$0.7 million[53]. Contracts and Projects - The Group was awarded three sizeable contracts for redevelopment projects from new customers with an aggregate contract sum of approximately HK$1.5 billion during the year[8]. - An additional sizeable contract with a contract sum of approximately HK$500 million was awarded to the Group after March 31, 2023[8]. - As of March 31, 2023, the Group had 11 major projects on hand with an awarded contract sum of HK$10.0 million or above[21]. - The Group completed five major projects with an awarded contract sum of HK$10.0 million or above during the year ended March 31, 2023[21]. Strategic Plans and Industry Outlook - The Group plans to invest in building construction-related services to enhance capabilities and provide synergies to existing business[14]. - The management remains prudently optimistic about the prospects of the construction industry in Hong Kong[8]. - The Group aims to diversify its customer base and improve competitiveness through timely project completion and cost-effective measures[8]. - Building information modeling services are seen as a differentiator for the Group, providing creative technical solutions to customers[14]. Governance and Board Structure - The Board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[100]. - Mr. Tsang Ka Yip serves as both Chairman and CEO, a decision deemed beneficial for the Group and its shareholders[95]. - Independent non-executive directors (INEDs) represent at least one-third of the Board, ensuring sufficient independence to safeguard shareholder interests[102]. - The Board's key responsibilities include formulating overall strategies and supervising management performance[99]. - The Company believes all INEDs meet the independence guidelines set out in the Listing Rules[103]. - The Board aims to appoint at least three independent non-executive Directors, ensuring that at least one-third of the Board members are independent[114]. - The Nomination Committee is mandated to assess the independence of all independent non-executive Directors annually, adhering to the independence criteria set out in the Listing Rules[117]. Diversity and Inclusion - The Board Diversity Policy aims to enhance performance quality through diversity, considering factors such as gender, age, cultural background, and professional experience[127]. - As of 31 March 2023, the Board had no female members, and plans to appoint at least one female Board member by 31 December 2024 to meet gender diversity requirements[134]. - The Board aspires to achieve gender parity and ensure a balance of Directors with experience in the Group's core markets and diverse ethnic backgrounds[135]. - The Group maintains a commitment to fair employment practices, prohibiting discrimination based on gender, religion, race, disability, or age[141]. - The Board recognizes the need for diversity and plans to maintain a balance of gender diversity in the workforce in the foreseeable future[143]. Financial Management and Remuneration - The total staff costs (excluding Directors' remuneration) were approximately HK$93.5 million and HK$92.9 million for the years ended 31 March 2023 and 2022, respectively[59]. - The Group's remuneration policy aims to provide competitive but not excessive remuneration packages to attract and retain quality staff[175]. - Directors' remuneration includes fixed salary or service fee and variable components, benchmarked against comparable companies[176]. - The remuneration of Directors is reviewed annually and subject to Shareholders' approval[176]. - The total remuneration paid to the external auditor, Ernst & Young, for audit services was HK$1,070,000, while non-audit services amounted to HK$210,000, bringing the total to HK$1,280,000[185]. Shareholder Communication and Meetings - The upcoming annual general meeting is scheduled for August 18, 2023, providing an opportunity for shareholder communication[197]. - There are no material uncertainties that may cast significant doubt on the company's ability to continue as a going concern[190]. - The board may call an extraordinary general meeting if shareholders holding at least one-tenth of the voting rights request it[198]. - Shareholders holding at least 10% of voting rights can request a special general meeting[200]. - The board must convene the meeting within two months of the request[200]. - If the board fails to convene within 21 days, the requesting shareholders can call the meeting themselves[200]. - Reasonable expenses incurred due to the board's failure to convene will be reimbursed by the company[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Wecon Holdings Limited 偉工控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1793） 截至2023年3月31日止年度的年度業績公告 財務摘要 • 收益由截至2022年3月31日止年度約1,152.7百萬港元減少至截至2023年3月31日止年 度約869.0百萬港元，減幅約283.7百萬港元或約24.6%。 • 毛利由截至2022年3月31日止年度約53.7百萬港元減少至截至2023年3月31日止年度 約39.0百萬港元，減幅約14.7百萬港元或約27.4%。 • 毛利率由截至2022年3月31日止年度約4.7%下跌至截至2023年3月31日止年度約 4.5%。 • 本公司權益持有人應佔溢利由截至2022年3月31日止年度約14.2百萬港元減少至截至 2023年3月31日止年度約5.9百萬港元，減幅約8.3百萬港元或約58.5%。 ...

Project and Contract Management - The Group had eight major projects on hand with an awarded contract sum of HK$10.0 million or above as of September 30, 2022[10]. - During the six months ended September 30, 2022, the Group completed five major projects with an awarded contract sum of HK$10.0 million or above[10]. - In July 2022, Wecon Construction was admitted to Group C on probation, allowing it to tender for contracts exceeding HK$400 million, with a probationary limit of HK$1.5 billion[13]. - Subsequent to September 30, 2022, the Group was awarded two sizeable contracts for re-development projects with an aggregate contract sum of approximately HK$1 billion[14]. - The Group's indirect wholly-owned subsidiary, Wei Gong Construction, was included in the approved public works contractor list, allowing it to bid for contracts over HK$400 million[16]. - The Group secured two large contracts for reconstruction projects totaling approximately HK$1 billion after September 30, 2022[16]. Financial Performance - The Group's revenue decreased by approximately HK$87.0 million or approximately 16.2%, from approximately HK$538.4 million for the six months ended September 30, 2021, to approximately HK$451.4 million for the six months ended September 30, 2022[24][28]. - Revenue from building construction services decreased by approximately HK$173.8 million or approximately 35.6%, from approximately HK$488.8 million to approximately HK$315.0 million during the same period[25][29]. - Revenue from RMAA works services increased significantly by approximately HK$86.8 million or approximately 175.0%, from approximately HK$49.6 million to approximately HK$136.4 million[26][30]. - The gross profit decreased by approximately HK$13.4 million or approximately 39.3%, from approximately HK$34.1 million to approximately HK$20.7 million[35]. - The gross profit margin decreased from approximately 6.3% to approximately 4.6%, representing a decrease of approximately 1.7 percentage points[35]. - The net profit of the Group decreased by approximately HK$11.0 million or approximately 80.9%, from approximately HK$13.6 million for the six months ended September 30, 2021 to approximately HK$2.6 million for the six months ended September 30, 2022[49]. - Profit before tax decreased significantly to HK$2,322,000, a decline of 85.5% from HK$15,948,000 in the prior period[135]. - The company reported a profit for the period of HK$2,571,000, compared to HK$13,576,000 in the prior year, marking a decline of around 81.0%[172]. Cost Management - The cost of sales decreased by approximately HK$73.5 million or approximately 14.6%, from approximately HK$504.2 million to approximately HK$430.7 million[32][33]. - The gross profit of building construction services decreased by approximately HK$23.5 million or approximately 63.2%, from approximately HK$37.2 million for the six months ended 30 September 2021 to approximately HK$13.7 million for the six months ended 30 September 2022[36]. - The gross profit margin of building construction services decreased from approximately 7.6% for the six months ended 30 September 2021 to approximately 4.4% for the six months ended 30 September 2022[38]. - The gross profit of RMAA works services was approximately HK$7.0 million for the six months ended 30 September 2022, compared to a gross loss of approximately HK$3.1 million for the six months ended 30 September 2021[41]. Operational Challenges - The COVID-19 pandemic has created challenges, causing delays in raw material delivery and project progress, but the Group has taken measures to maintain construction works[10]. - The management will continuously monitor the pandemic's impact on the Group's business and financial performance[10]. Corporate Governance - The Group's commitment to corporate governance emphasizes transparency, accountability, and independence, with compliance to applicable code provisions[75]. - The Board comprises six directors, including three executive directors and three independent non-executive directors, ensuring compliance with the Listing Rules[86]. - The Group emphasizes transparency, accountability, and independence in its corporate governance practices[81]. - The Chairman and CEO roles are held by Mr. Tsang Ka Yip, which the Board believes is beneficial given his experience and knowledge of the industry[79]. Employee and Staff Costs - The total staff costs (excluding Directors' remuneration) of the Group were approximately HK$45.0 million for the six months ended September 30, 2022, compared to HK$42.8 million for the six months ended September 30, 2021[54]. - The Group's total employee count as of September 30, 2022, was 213 full-time employees, a decrease from 223 full-time employees as of September 30, 2021[57]. - The Group's profit before tax for the six months ended September 30, 2022, included employee benefit expenses of HK$43,387,000, an increase from HK$41,075,000 in 2021[198]. Cash Flow and Liquidity - The Group's current ratio as of September 30, 2022, was approximately 2.2 times, an increase from 2.1 times as of March 31, 2022[60]. - The Group had no outstanding bank borrowings as of September 30, 2022, and lease liabilities amounted to approximately HK$6.6 million, down from HK$7.9 million as of March 31, 2022[65]. - The gearing ratio as of September 30, 2022, was approximately 2.4%, a decrease from 2.8% as of March 31, 2022[68]. - Cash and bank balances decreased to HK$24,574,000 from HK$64,884,000 as of March 31, 2022[137]. - The company reported a net decrease in cash and cash equivalents of HK$37,777,000 compared to HK$78,172,000 in the prior period, showing a reduction in cash outflow[146]. Shareholder Information - The Board has resolved not to declare any interim dividend for the six months ended September 30, 2022, consistent with the previous year[91]. - The company paid dividends amounting to HK$9,536,000 to shareholders during the period, impacting retained earnings[142]. - The company did not purchase, sell, or redeem any shares during the six months ended September 30, 2022[116]. Future Outlook - The management remains prudently optimistic about the prospects of the construction industry in Hong Kong[14]. - The Group plans to invest in building construction-related services to enhance capabilities and provide synergies to existing business[15]. - The Group aims to differentiate itself through building information modeling services, providing creative technical solutions to customers[15].

Corporate Information The company provides essential corporate details, including its board composition, professional service providers, and key identification information [Directors and Committees](index=3&type=section&id=Directors%20and%20Committees) Wecon Holdings Limited discloses its board of directors' composition, including executive and independent non-executive directors, and the structure and chairpersons of its Audit, Remuneration, and Nomination Committees - Executive Directors include Mr. Tsang Ka Yip (Chairman), Mr. Tsang Tsz Him, and Mr. Tsang Tsz Kit[3](index=3&type=chunk) - Independent Non-executive Directors include Dr. Lau Chi Keung, Mr. Chan Tim Yiu, and Mr. Sze Kwok Wing[3](index=3&type=chunk) - The Audit Committee is chaired by Mr. Sze Kwok Wing, the Remuneration Committee by Mr. Chan Tim Yiu, and the Nomination Committee by Dr. Lau Chi Keung[3](index=3&type=chunk) [Company Details and Professional Services](index=3&type=section&id=Company%20Details%20and%20Professional%20Services) The company is registered in the Cayman Islands with its principal place of business in Hong Kong on Des Voeux Road Central, detailing its legal counsel, auditor, principal bankers, share registrar, and stock code - The company's registered office is in the Cayman Islands, with its principal place of business in Hong Kong at 18/F, Tung Hip Commercial Building, 244-252 Des Voeux Road Central, Hong Kong[3](index=3&type=chunk)[6](index=6&type=chunk) - Legal counsel is Woo Kwan Lee & Lo, and the auditor is Ernst & Young[6](index=6&type=chunk) - Principal bankers include The Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong), and Standard Chartered Bank (Hong Kong) Limited[6](index=6&type=chunk) - The company's stock code is **01793**, and its official website is http://www.wecon.com.hk[6](index=6&type=chunk) Management Discussion and Analysis This section provides an overview of the company's business operations, financial performance, future outlook, and key risks for the reporting period [Business Review](index=5&type=section&id=Business%20Review) Wecon Holdings Limited, a main contractor in Hong Kong, primarily offers building construction and repair, maintenance, alteration, and addition (RMAA) engineering services, with 12 major projects on hand, 4 new awards, and 1 completion as of September 30, 2021 - The company's principal businesses are building construction services and RMAA engineering services, serving both private and public sector clients[8](index=8&type=chunk) Project Overview (As of September 30, 2021) | Metric | Quantity | | :--- | :--- | | Major Projects on Hand (Contract sum of HK$10.0 million or above) | 12 projects | | New Major Projects Awarded During the Period | 4 projects | | Major Projects Completed During the Period | 1 project | [Prospects](index=5&type=section&id=Prospects) Facing COVID-19 challenges, the company has taken measures to ensure project progress and continuously monitors the pandemic's impact, planning to enhance competitiveness through client diversification, quality assurance, cost-effectiveness, and investment in Building Information Modeling (BIM) services and related technological innovations, maintaining cautious optimism for the Hong Kong construction industry - The pandemic has adversely affected business, causing delays in raw material delivery and project progress, but the company has taken necessary measures to proceed with construction works as planned[8](index=8&type=chunk) - The company will continue to diversify its client base and enhance competitiveness by maintaining its reputation, ensuring timely and high-quality project completion, and implementing cost-effective measures[11](index=11&type=chunk) - The company plans to invest in Building Information Modeling (BIM) services and building construction-related services to enhance capabilities and provide synergistic effects[13](index=13&type=chunk)[15](index=15&type=chunk) - Management remains cautiously optimistic about the prospects of the Hong Kong construction industry[11](index=11&type=chunk) [Principal Risks and Uncertainties](index=6&type=section&id=Principal%20Risks%20and%20Uncertainties) The company faces multiple operational risks, including pandemic impact, reliance on non-recurring tender contracts, customer concentration, subcontractor performance and cost fluctuations, cash flow mismatches, raw material price and supply changes, and the impact of performance bonds on liquidity - Business and operations may be affected by the pandemic or other public health incidents, leading to lockdowns, travel restrictions, and work stoppages[14](index=14&type=chunk) - Revenue relies on non-recurring tender or quotation processes, with no guarantee of continuous success, which could materially and adversely affect sustainability and financial performance[14](index=14&type=chunk) - The company faces significant concentration risk due to heavy reliance on its largest and major customers[17](index=17&type=chunk) - Fluctuations in subcontracting costs, poor subcontractor performance, or inability to source subcontractors could materially and adversely affect operations and profitability[18](index=18&type=chunk) - Mismatches between receiving progress payments from customers and paying suppliers and subcontractors may lead to insufficient cash flow[18](index=18&type=chunk) - Changes in raw material prices and supply could materially and adversely affect operating results[18](index=18&type=chunk) - Providing performance bonds may affect the liquidity position[18](index=18&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The company's reportable and operating segments are building construction services and repair, maintenance, alteration, and addition (RMAA) engineering services, with detailed segment information disclosed in Note 3 to the financial statements - The Group's reportable and operating segments are building construction services and RMAA engineering services[18](index=18&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) During the reporting period, the company experienced a decrease in total revenue and net profit, but an improvement in gross profit margin, with revenue decline primarily due to large project completions, and margin improvement from final account negotiations with subcontractors for building construction services; other income decreased due to non-recognition of government subsidies, and administrative expenses slightly increased due to fair value losses on financial assets [Revenue](index=8&type=section&id=Revenue) For the six months ended September 30, 2021, the company's total revenue decreased by **16.4%** year-on-year to **HK$538.4 million**, primarily due to the completion of a large building construction project and an RMAA project entering its completion phase Changes in Total Revenue | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 538,359 | 643,757 | (105,398) | (16.4%) | Changes in Segment Revenue | Segment | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Building Construction Services | 488,766 | 567,707 | (78,941) | (13.9%) | Revenue decreased due to the actual completion of a large project, partially offset by progress on other large projects | | RMAA Engineering Services | 49,593 | 76,050 | (26,457) | (34.8%) | Revenue decreased due to a large project entering its completion phase, partially offset by an increase from two newly awarded large projects | [Cost of Sales](index=9&type=section&id=Cost%20of%20Sales) For the six months ended September 30, 2021, the company's cost of sales decreased by **17.3%** year-on-year to **HK$504.2 million**, primarily consistent with the corresponding decrease in revenue, with cost of sales mainly comprising subcontracting costs, material costs, direct staff costs, and site overheads Changes in Cost of Sales | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 504,235 | 609,450 | (105,215) | (17.3%) | - Cost of sales primarily includes subcontracting costs, material costs, direct staff costs, and site overheads[28](index=28&type=chunk)[29](index=29&type=chunk) [Gross Profit and Gross Profit Margin](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) For the six months ended September 30, 2021, the company's gross profit slightly decreased by **0.6%** to **HK$34.1 million**, but the gross profit margin increased from **5.3%** to **6.3%**, primarily due to increased gross profit from building construction services after final account negotiations with subcontractors, while RMAA engineering services turned from profit to gross loss Changes in Total Gross Profit and Gross Profit Margin | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 34,124 | 34,307 | (183) | (0.6%) | | Gross Profit Margin | 6.3% | 5.3% | +1.0% | - | Changes in Segment Gross Profit and Gross Profit Margin | Segment | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | Gross Profit Margin (2021) | Gross Profit Margin (2020) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Building Construction Services | 37,238 | 27,235 | +10,003 | +36.8% | 7.6% | 4.8% | Increased gross profit from several large projects after final account negotiations with subcontractors | | RMAA Engineering Services | (3,114) (Gross Loss) | 7,072 (Gross Profit) | (10,186) | - | (6.3)% | 9.3% | Decreased gross profit from a completed project and significant site overheads incurred during the initial stages of two new projects resulted in a gross loss | [Other Income and Gains](index=10&type=section&id=Other%20Income%20and%20Gains) For the six months ended September 30, 2021, the company's other income and gains decreased by **47.2%** year-on-year to **HK$4.7 million**, primarily due to the non-recognition of non-recurring government subsidies (Employment Support Scheme) recognized in the prior period, partially offset by dividend income Changes in Other Income and Gains | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Income and Gains | 4,667 | 8,901 | (4,234) | (47.2%) | - Primarily due to the non-recognition of non-recurring government subsidies (Employment Support Scheme) recognized in the prior period, partially offset by dividend income from equity investments[38](index=38&type=chunk)[41](index=41&type=chunk) [Administrative and Other Operating Expenses, Net](index=10&type=section&id=Administrative%20and%20Other%20Operating%20Expenses%2C%20Net) For the six months ended September 30, 2021, administrative and other operating expenses, net, slightly increased by **1.3%** to **HK$22.8 million**, primarily due to fair value losses on financial assets at fair value through profit or loss, partially offset by reduced staff costs and professional fees Changes in Administrative and Other Operating Expenses, Net | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Administrative and Other Operating Expenses, Net | 22,769 | 22,487 | +282 | +1.3% | - Primarily due to an increase in net fair value losses on financial assets at fair value through profit or loss, partially offset by a decrease in staff costs and professional fees[39](index=39&type=chunk)[42](index=42&type=chunk) [Finance Costs](index=11&type=section&id=Finance%20Costs) For the six months ended September 30, 2021, the company's finance costs decreased by **42.2%** year-on-year to **HK$74 thousand**, primarily due to reduced interest expenses on lease liabilities Changes in Finance Costs | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 74 | 128 | (54) | (42.2%) | - Primarily due to a decrease in interest expenses on lease liabilities[44](index=44&type=chunk)[46](index=46&type=chunk) [Income Tax](index=11&type=section&id=Income%20Tax) For the six months ended September 30, 2021, the company's income tax increased by **14.3%** year-on-year to **HK$2.4 million**, with the effective tax rate rising from **10.0%** to **14.9%**, primarily due to the non-recognition of non-taxable government subsidies recognized in the prior period Changes in Income Tax | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Income Tax | 2,372 | 2,064 | +308 | +14.9% | Changes in Effective Tax Rate | Metric | For the six months ended September 30, 2021 | For the six months ended September 30, 2020 | Change | | :--- | :--- | :--- | :--- | | Effective Tax Rate | 14.9% | 10.0% | +4.9% | - The increase in the effective tax rate is primarily due to the non-recognition of non-taxable non-recurring government subsidies recognized in the prior period[48](index=48&type=chunk) [Net Profit](index=11&type=section&id=Net%20Profit) For the six months ended September 30, 2021, the company's net profit decreased by **26.5%** year-on-year to **HK$13.6 million**, with the net profit margin declining from **2.9%** to **2.5%**, primarily due to the non-recognition of non-recurring government subsidies recognized in the prior period Changes in Net Profit | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Profit | 13,576 | 18,529 | (4,953) | (26.5%) | Changes in Net Profit Margin | Metric | For the six months ended September 30, 2021 | For the six months ended September 30, 2020 | Change | | :--- | :--- | :--- | :--- | | Net Profit Margin | 2.5% | 2.9% | (0.4%) | - The decrease in net profit is primarily attributable to the non-recognition of non-recurring government subsidies recognized in the prior period[48](index=48&type=chunk) [Employees and Remuneration Policies](index=12&type=section&id=Employees%20and%20Remuneration%20Policies) As of September 30, 2021, the company had **224** employees (**223** full-time, **1** part-time), an increase in total headcount, with remuneration reviewed regularly based on performance, qualifications, responsibilities, and market conditions, offering benefits such as provident fund, medical insurance, annual leave, and share awards Employee Headcount | Metric | As of September 30, 2021 | As of September 30, 2020 | | :--- | :--- | :--- | | Full-time Employees | 223 | 204 | | Part-time Employees | 1 | 1 | | Total Employees | 224 | 205 | - The company determines remuneration based on factors such as employee performance, qualifications, merits, responsibilities, and market conditions, and regularly reviews remuneration packages[51](index=51&type=chunk)[53](index=53&type=chunk) - Employee benefits include provident fund contributions, medical insurance, annual leave, and share options and share awards that may be granted to eligible employees[51](index=51&type=chunk)[53](index=53&type=chunk) Total Staff Costs (Excluding Directors' Emoluments) | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Total Staff Costs | 42,800 | 42,200 | [Significant Investments, Material Acquisitions and Disposal of Subsidiaries and Associated Companies](index=12&type=section&id=Significant%20Investments%2C%20Material%20Acquisitions%20and%20Disposal%20of%20Subsidiaries%20and%20Associated%20Companies) For the six months ended September 30, 2021, the company held no other significant investments apart from its equity interests in subsidiaries, nor did it undertake any material acquisitions or disposals of subsidiaries and associated companies - For the six months ended September 30, 2021, the company held no significant investments other than its equity interests in subsidiaries[52](index=52&type=chunk)[54](index=54&type=chunk) - The Group did not make any material acquisitions or disposals of subsidiaries and associated companies during the reporting period[52](index=52&type=chunk)[54](index=54&type=chunk) [Capital Commitments](index=12&type=section&id=Capital%20Commitments) As of September 30, 2021, the company had no significant capital commitments - As of September 30, 2021, the Group had no significant capital commitments (as of March 31, 2021: nil)[52](index=52&type=chunk) [Contingent Liabilities](index=12&type=section&id=Contingent%20Liabilities) Apart from performance bonds disclosed in Note 13 to the interim condensed consolidated financial information, the company had no other significant contingent liabilities as of September 30, 2021 - Apart from those disclosed in Note 13 to the interim condensed consolidated financial information, the Group had no other significant contingent liabilities as of September 30, 2021[52](index=52&type=chunk) [Foreign Exchange Exposure](index=13&type=section&id=Foreign%20Exchange%20Exposure) As most of the company's business transactions, assets, and liabilities are denominated in Hong Kong Dollars, the foreign exchange exposure is minimal, and no foreign currency hedging policy has been arranged - As most business transactions, assets, and liabilities are denominated in Hong Kong Dollars, the Group's foreign exchange exposure is minimal[56](index=56&type=chunk) - The Directors consider the Group's foreign exchange risk to be insignificant, thus no foreign currency hedging policy is required, and no instruments were entered into for hedging during the six months ended September 30, 2021[56](index=56&type=chunk) [Gearing Ratio](index=13&type=section&id=Gearing%20Ratio) As of September 30, 2021, the company's gearing ratio (lease liabilities divided by total equity) was approximately **1.0%**, a decrease from **1.7%** as of March 31, 2021 Changes in Gearing Ratio | Metric | As of September 30, 2021 | As of March 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 1.0% | 1.7% | (0.7%) | [Liquidity and Financial Resources and Capital Structure](index=13&type=section&id=Liquidity%20and%20Financial%20Resources%20and%20Capital%20Structure) The company primarily funds its liquidity and capital requirements through shareholders' contributions, bank borrowings, and net cash from operating activities; as of September 30, 2021, pledged deposits, time deposits, and cash and bank balances totaled approximately **HK$93.1 million**, with a current ratio of **2.0 times**, and the Board believes the company has sufficient working capital - The Group primarily funds its liquidity and capital requirements through shareholders' contributions, bank borrowings, and net cash generated from operating activities[56](index=56&type=chunk) Cash and Deposit Situation (As of September 30, 2021) | Metric | Amount (HK$ Thousand) | | :--- | :--- | | Pledged Deposits | 45,563 | | Time Deposits | 23,612 | | Cash and Bank Balances | 23,964 | | **Total** | **93,139** | Current Ratio | Metric | As of September 30, 2021 | As of March 31, 2021 | | :--- | :--- | :--- | | Current Ratio | 2.0 times | 2.2 times | - The Directors believe that the Group has sufficient working capital to meet its present commitments and future requirements[59](index=59&type=chunk) - There was no change in the company's capital structure during the six months ended September 30, 2021[60](index=60&type=chunk) [Debts and Charge on Assets](index=14&type=section&id=Debts%20and%20Charge%20on%20Assets) As of September 30, 2021, the company had no outstanding bank borrowings, with lease liabilities of approximately **HK$2.9 million**; bank financing is secured by pledged deposits and corporate guarantees, and the company's borrowings are denominated in Hong Kong Dollars with interest primarily at floating rates, with continuous monitoring of interest rate risk - As of September 30, 2021, the Group had no outstanding bank borrowings (as of March 31, 2021: nil)[62](index=62&type=chunk) Lease Liabilities | Metric | As of September 30, 2021 (HK$ Thousand) | As of March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Lease Liabilities | 2,900 | 4,700 | - The Group's bank financing is secured by pledged deposits (approximately **HK$45.6 million**) and corporate guarantees provided by the Group[62](index=62&type=chunk) - The Group's borrowings are denominated in Hong Kong Dollars, with interest primarily at floating rates. The Group currently has no interest rate hedging policy but continuously and prudently monitors interest rate risk[62](index=62&type=chunk) [Use of Proceeds](index=15&type=section&id=Use%20of%20Proceeds) The company listed in 2019, with net proceeds of approximately **HK$93.5 million**; as of September 30, 2021, some proceeds remained unutilized, primarily allocated to strengthening human resources, office upgrades and renovations, and R&D of innovative engineering technologies, with delays attributed to recruitment difficulties and technological innovation development delays, and the company plans to utilize the remaining proceeds within the next six months - The company's shares were successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on February 27, 2019, with net proceeds of approximately **HK$93.5 million**[66](index=66&type=chunk)[67](index=67&type=chunk) Use of Proceeds and Remaining Balance (As of September 30, 2021) | Planned Use | Total Planned Amount (HK$ Million) | Actual Use for the six months ended September 30, 2021 (HK$ Million) | Remaining Balance as of September 30, 2021 (HK$ Million) | Expected Timeline for Remaining Balance | | :--- | :--- | :--- | :--- | :--- | | Strengthening capabilities for building construction and RMAA engineering projects in Hong Kong | 66.7 | – | – | Not applicable | | Strengthening human resources | 14.4 | 2.4 | 4.4 | March 31, 2022 | | Office upgrades and renovations | 3.6 | 0.4 | 0.7 | June 30, 2022 | | R&D of innovative engineering and technologies | 2.9 | – | 0.4 | March 31, 2022 | | General working capital | 5.9 | – | – | Not applicable | | **Total** | **93.5** | **2.8** | **5.5** | | - The utilization of net proceeds for strengthening human resources, office upgrades and renovations, and R&D of innovative engineering and technologies was delayed, primarily due to difficulties in recruiting suitable candidates and delays in technological innovation development[73](index=73&type=chunk) - The Group plans to utilize the remaining balance of allocated net proceeds in the aforementioned areas during the next six months ending March 31, 2022[73](index=73&type=chunk) Corporate Governance and Other Information This section details the company's commitment to corporate governance, including board structure, compliance with regulations, and disclosures regarding directors' and major shareholders' interests [Corporate Governance Practices](index=17&type=section&id=Corporate%20Governance%20Practices) The company is committed to achieving and maintaining the highest standards of corporate governance, emphasizing transparency, accountability, and independence, with the Board continuously reviewing and strengthening its practices; as of September 30, 2021, the company complied with the applicable provisions of the Corporate Governance Code in Appendix 14 of the Listing Rules, except for the combined roles of Chairman and Chief Executive - The company is committed to achieving and maintaining the highest standards of corporate governance, based on principles of transparency, accountability, and independence[75](index=75&type=chunk) - As of September 30, 2021, the company complied with the applicable code provisions set out in the Corporate Governance Code in Appendix 14 of the Listing Rules, except for the combined roles of Chairman and Chief Executive Officer[76](index=76&type=chunk)[78](index=78&type=chunk) [Chairman and Chief Executive](index=17&type=section&id=Chairman%20and%20Chief%20Executive) Mr. Tsang Ka Yip has served as both Chairman of the Board and Chief Executive Officer since the listing date, which deviates from Code Provision A.2.1 of the Corporate Governance Code; the Board believes this arrangement is in the best interest of the company and shareholders as a whole, given Mr. Tsang's in-depth knowledge and experience in the industry and company operations - Mr. Tsang Ka Yip has served as both Chairman of the Board and Chief Executive Officer since the listing date, which deviates from Code Provision A.2.1 of the Corporate Governance Code[77](index=77&type=chunk)[79](index=79&type=chunk) - The Board believes that this arrangement is in the best interest of the Group and its shareholders as a whole, given Mr. Tsang Ka Yip's in-depth knowledge and experience in the industry in which the Group operates, and his familiarity with the Group's operations[77](index=77&type=chunk)[79](index=79&type=chunk) [Model Code for Securities Transactions by Directors](index=18&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules, and all Directors have confirmed full compliance with the Code for the six months ended September 30, 2021 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules[82](index=82&type=chunk)[83](index=83&type=chunk) - All Directors confirmed their full compliance with the required standards set out in the Model Code for the six months ended September 30, 2021[82](index=82&type=chunk)[83](index=83&type=chunk) [Board of Directors](index=18&type=section&id=Board%20of%20Directors) The Board of Directors comprises six directors, including three executive and three independent non-executive directors, responsible for formulating overall strategies, setting management objectives, and overseeing management performance, with its composition meeting Listing Rules requirements of at least one-third independent non-executive directors and one possessing professional accounting or financial management expertise - The primary responsibilities of the Board include formulating the Group's overall strategies, setting management objectives, and overseeing management performance[84](index=84&type=chunk) - The Board comprises six Directors, including three executive Directors and three independent non-executive Directors[84](index=84&type=chunk) - The Board's composition complies with Listing Rules requirements, with at least one-third of its members being independent non-executive Directors, and Mr. Sze Kwok Wing possessing relevant expertise in accounting or financial management[84](index=84&type=chunk) [Compliance with the Laws and Regulations](index=19&type=section&id=Compliance%20with%20the%20Laws%20and%20Regulations) The company recognizes the importance of regulatory compliance; for the six months ended September 30, 2021, and up to the date of this interim report, the company has complied in all material respects with relevant laws and regulations significantly impacting the Group's business and operations, with no material breaches or non-compliance - The Group understands the importance of complying with regulatory requirements and the risks of non-compliance with applicable laws and regulations[86](index=86&type=chunk)[87](index=87&type=chunk) - For the six months ended September 30, 2021, and up to the date of this interim report, the Group has complied in all material respects with relevant laws and regulations significantly impacting its business and operations, with no serious breaches or non-compliance with applicable laws and regulations[86](index=86&type=chunk)[87](index=87&type=chunk) [Results and Dividends](index=19&type=section&id=Results%20and%20Dividends) The Group's profit and financial position for the six months ended September 30, 2021, are presented in the interim condensed consolidated financial information, and the Board resolved not to declare an interim dividend for the period - The Group's profit for the six months ended September 30, 2021, and its financial position as of September 30, 2021, are presented in the interim condensed consolidated financial information on pages 27 to 29 of this interim report[89](index=89&type=chunk) - The Board resolved not to declare any interim dividend to the company's shareholders for the six months ended September 30, 2021 (for the six months ended September 30, 2020: nil)[89](index=89&type=chunk) [Share Options Scheme](index=19&type=section&id=Share%20Options%20Scheme) The company adopted a share option scheme on January 21, 2019; since its adoption date and up to the date of this interim report, no share options have been granted, exercised, expired, cancelled, or lapsed under the scheme - The company adopted a share option scheme on January 21, 2019[89](index=89&type=chunk) - Since the adoption date and up to the date of this interim report, no share options have been granted, exercised, expired, cancelled, or lapsed under the share option scheme[89](index=89&type=chunk) [Share Award Plan](index=20&type=section&id=Share%20Award%20Plan) The company adopted a share award plan on July 31, 2020, to recognize, reward, retain, and attract talent; the plan's trustee purchased **5,304,000** shares on December 23, 2020, but as of September 30, 2021, no share awards have been granted or vested, with the plan valid for 10 years and a maximum share limit of **10%** of total issued shares - The Board adopted a share award plan on July 31, 2020, for the purpose of recognizing and rewarding contributions, incentivizing retention, and attracting talent[92](index=92&type=chunk)[94](index=94&type=chunk) - The Group has established a trust to administer the share award plan, which will acquire shares from the Stock Exchange and hold them until vesting[93](index=93&type=chunk)[94](index=94&type=chunk) - On December 23, 2020, the company allocated **HK$1,000,000** to the share award plan trust, of which approximately **HK$996,000** was used to purchase **5,304,000** shares; as of September 30, 2021, no share awards have been granted or vested under the share award plan[98](index=98&type=chunk) - According to the plan rules, the maximum number of shares that may be subscribed for and/or purchased shall not exceed **10%** of the total issued shares as of the adoption date (i.e., **80,000,000** shares)[96](index=96&type=chunk)[97](index=97&type=chunk) [Disclosure of Interests](index=22&type=section&id=Disclosure%20of%20Interests) This section discloses the interests of Directors, chief executives, and substantial shareholders in the company's shares; Mr. Tsang Ka Yip holds **75%** of the company's shares through his wholly-owned Triple Arch Limited, and his spouse, Ms. Lai Yuk Lin, is deemed to have the same interest [Directors' and Chief Executives' Interests in the Company and Associated Corporation](index=22&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests%20in%20the%20Company%20and%20Associated%20Corporation) As of September 30, 2021, Mr. Tsang Ka Yip held **600 million** shares, representing **75%** of the company's share capital, through his wholly-owned Triple Arch Limited Mr. Tsang Ka Yip's Long Position in the Company's Shares | Name of Director | Capacity/Nature of Interest | Number of Shares Held (Long Position) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Tsang Ka Yip | Interest in controlled corporation (through Triple Arch Limited) | 600,000,000 | 75% | - Mr. Tsang Ka Yip beneficially owns **100%** interest in Triple Arch Limited[106](index=106&type=chunk) [Substantial Shareholders' Interests in Shares in the Company other than Directors and Chief Executives](index=23&type=section&id=Substantial%20Shareholders%27%20Interests%20in%20Shares%20in%20the%20Company%20other%20than%20Directors%20and%20Chief%20Executives) As of September 30, 2021, apart from Directors and chief executives, substantial shareholder Triple Arch Limited held **75%** of the company's shares, and Mr. Tsang Ka Yip's spouse, Ms. Lai Yuk Lin, was deemed to have the same interest due to spousal relationship Substantial Shareholders' Interests in the Company's Shares | Name | Nature of Interest | Number of Shares Held (Long Position) | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Triple Arch Limited | Beneficial owner | 600,000,000 | 75% | | Ms. Lai Yuk Lin | Interest of spouse (spouse of Mr. Tsang Ka Yip) | 600,000,000 | 75% | [Directors' Interests in Competing Business](index=24&type=section&id=Directors%27%20Interests%20in%20Competing%20Business) For the six months ended September 30, 2021, and up to the date of this interim report, no Director or their close associates had any interest in any business that directly or indirectly competes or may compete with the Group's business - For the six months ended September 30, 2021, and up to the date of this interim report, no Director or their close associates had any interest in any business that directly or indirectly competes or may compete with the Group's business[116](index=116&type=chunk) [Directors' Interests in Contracts of Significance](index=24&type=section&id=Directors%27%20Interests%20in%20Contracts%20of%20Significance) Except as disclosed in this interim report, as of September 30, 2021, or at any time during the reporting period, no Director or their associated entities had a significant interest in any material contract related to the Group's business entered into by the company, its holding company, or any of its subsidiaries - Except as disclosed in this interim report, as of September 30, 2021, or at any time during the six months ended September 30, 2021, no Director or their associated entities had a significant direct or indirect interest in any material contract related to the Group's business entered into by the company, its holding company, or any of its subsidiaries[116](index=116&type=chunk) [Connected Transactions](index=24&type=section&id=Connected%20Transactions) For the six months ended September 30, 2021, the company did not enter into any connected transactions - For the six months ended September 30, 2021, the Group did not enter into any connected transactions[116](index=116&type=chunk) [Related Party Transactions](index=24&type=section&id=Related%20Party%20Transactions) Details of significant related party transactions entered into by the company for the six months ended September 30, 2021, are set out in Note 14 to the interim condensed consolidated financial information - Significant related party transactions entered into by the Group for the six months ended September 30, 2021, are set out in Note 14 to the interim condensed consolidated financial information[116](index=116&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended September 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares - For the six months ended September 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares[116](index=116&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events requiring disclosure have occurred after September 30, 2021, and up to the date of this interim report - No significant events requiring disclosure have occurred after September 30, 2021, and up to the date of this interim report[120](index=120&type=chunk) [Audit Committee Review](index=25&type=section&id=Audit%20Committee%20Review) The Group's interim condensed consolidated financial information for the six months ended September 30, 2021, has been reviewed by the Audit Committee - The Group's interim condensed consolidated financial information for the six months ended September 30, 2021, has been reviewed by the Audit Committee[121](index=121&type=chunk)[122](index=122&type=chunk) [Appreciation](index=25&type=section&id=Appreciation) Mr. Tsang Ka Yip, Chairman and Chief Executive Officer, on behalf of the Board, expressed gratitude to shareholders, clients, subcontractors, suppliers, management, and staff - Mr. Tsang Ka Yip, Chairman and Chief Executive Officer, on behalf of the Board, expressed gratitude to shareholders, clients, subcontractors, and suppliers for their continued confidence and support, and sincerely thanked management and staff for their hard work and loyalty[124](index=124&type=chunk) Report on Review of Interim Financial Information This section presents the independent review report on the interim financial information, outlining the scope and conclusion of the review conducted by the auditor [Scope of Review and Conclusion](index=26&type=section&id=Scope%20of%20Review%20and%20Conclusion) Ernst & Young reviewed Wecon Holdings Limited's interim financial information for the six months ended September 30, 2021, in accordance with Hong Kong Standard on Review Engagements 2410; the scope of review is less than an audit, thus no audit opinion is expressed, and based on the review, nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 - Ernst & Young reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[130](index=130&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - The scope of review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and consequently, no audit opinion is expressed[132](index=132&type=chunk)[133](index=133&type=chunk) - Based on the review, nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[134](index=134&type=chunk)[135](index=135&type=chunk) Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the company's financial performance, including revenue, profit, and other comprehensive income, for the six months ended September 30, 2021 [Key Financial Performance Indicators](index=28&type=section&id=Key%20Financial%20Performance%20Indicators) For the six months ended September 30, 2021, the company reported revenue of **HK$538.4 million**, gross profit of **HK$34.1 million**, profit before tax of **HK$15.9 million**, and total profit and comprehensive income attributable to equity holders of **HK$13.6 million**, with basic and diluted earnings per share of **HK1.7 cents** Key Financial Data (For the six months ended September 30, 2021) | Metric | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 538,359 | 643,757 | (105,398) | (16.4%) | | Cost of Sales | (504,235) | (609,450) | 105,215 | (17.3%) | | Gross Profit | 34,124 | 34,307 | (183) | (0.5%) | | Other Income and Gains | 4,667 | 8,901 | (4,234) | (47.6%) | | Administrative and Other Operating Expenses, Net | (22,769) | (22,487) | (282) | 1.3% | | Finance Costs | (74) | (128) | 54 | (42.2%) | | Profit Before Tax | 15,948 | 20,593 | (4,645) | (22.6%) | | Income Tax | (2,372) | (2,064) | (308) | 14.9% | | Total Profit and Comprehensive Income Attributable to Equity Holders of the Company | 13,576 | 18,529 | (4,953) | (26.7%) | | Earnings Per Share (Basic and Diluted) | HK1.7 cents | HK2.3 cents | (HK0.6 cents) | (26.1%) | Interim Condensed Consolidated Statement of Financial Position This statement provides a snapshot of the company's assets, liabilities, and equity as of September 30, 2021, reflecting its financial health [Key Financial Position Indicators](index=29&type=section&id=Key%20Financial%20Position%20Indicators) As of September 30, 2021, the company's total assets less current liabilities were **HK$286.1 million**, net assets were **HK$285.1 million**, net current assets were **HK$262.2 million**, and the current ratio was **2.0 times** Key Financial Position Data (As of September 30, 2021) | Metric | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | | Property, Plant and Equipment | 10,067 | 8,148 | 1,919 | 23.5% | | Right-of-use Assets | 5,112 | 7,584 | (2,472) | (32.6%) | | Financial Assets at Fair Value Through Profit or Loss | 2,450 | 2,150 | 300 | 14.0% | | Prepayments, Deposits and Other Receivables | 6,237 | 5,379 | 858 | 15.9% | | **Total Non-current Assets** | **23,866** | **23,261** | **605** | **2.6%** | | **Current Assets** | | | | | | Contract Assets and Trade Receivables | 355,676 | 260,376 | 95,300 | 36.6% | | Prepayments, Deposits and Other Receivables | 40,918 | 21,295 | 19,623 | 92.2% | | Financial Assets at Fair Value Through Profit or Loss | 18,957 | 17,452 | 1,505 | 8.6% | | Tax Recoverable | 5,302 | 7,997 | (2,695) | (33.7%) | | Pledged Deposits | 45,563 | 42,193 | 3,370 | 8.0% | | Time Deposits | 23,612 | 5,109 | 18,503 | 362.2% | | Cash and Bank Balances | 23,964 | 120,639 | (96,675) | (80.1%) | | **Total Current Assets** | **513,992** | **475,061** | **38,931** | **8.2%** | | **Current Liabilities** | | | | | | Trade and Retention Payables | 214,611 | 143,758 | 70,853 | 49.3% | | Other Payables and Accruals | 34,862 | 68,166 | (33,304) | (48.9%) | | Lease Liabilities | 2,300 | 3,344 | (1,044) | (31.2%) | | **Total Current Liabilities** | **251,773** | **215,268** | **36,505** | **17.0%** | | **Net Current Assets** | **262,219** | **259,793** | **2,426** | **0.9%** | | **Total Assets Less Current Liabilities** | **286,085** | **283,054** | **3,031** | **1.1%** | | **Non-current Liabilities** | | | | | | Deferred Tax Liabilities | 405 | 728 | (323) | (44.4%) | | Lease Liabilities | 625 | 1,311 | (686) | (52.3%) | | **Total Non-current Liabilities** | **1,030** | **2,039** | **(1,009)** | **(49.5%)** | | **Net Assets** | **285,055** | **281,015** | **4,040** | **1.4%** | | **Equity** | | | | | | Issued Share Capital | 8,000 | 8,000 | 0 | 0.0% | | Reserves | 277,055 | 273,015 | 4,040 | 1.5% | | **Total Equity** | **285,055** | **281,015** | **4,040** | **1.4%** | Interim Condensed Consolidated Statement of Changes in Equity This statement outlines the changes in the company's total equity for the six months ended September 30, 2021, primarily driven by profit for the period and dividends paid [Equity Changes Overview](index=31&type=section&id=Equity%20Changes%20Overview) For the six months ended September 30, 2021, the company's total equity increased from **HK$281 million** at the beginning of the period to **HK$285.1 million**, primarily due to profit for the period of **HK$13.6 million**, partially offset by dividends paid of **HK$9.5 million** Changes in Equity (For the six months ended September 30, 2021) | Metric | April 1, 2021 (HK$ Thousand) | Total Profit and Comprehensive Income for the Period (HK$ Thousand) | Dividends Paid to Equity Holders of the Company (HK$ Thousand) | September 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Issued Share Capital | 8,000 | – | – | 8,000 | | Share Premium | 76,767 | – | (9,536) | 67,231 | | Merger Reserve | 18,900 | – | – | 18,900 | | Shares Held Under Share Award Scheme | (996) | – | – | (996) | | Retained Profits | 178,344 | 13,576 | – | 191,920 | | **Total Equity** | **281,015** | **13,576** | **(9,536)** | **285,055** | Interim Condensed Consolidated Statement of Cash Flows This statement summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended September 30, 2021 [Cash Flow Activities Summary](index=32&type=section&id=Cash%20Flow%20Activities%20Summary) For the six months ended September 30, 2021, the company reported net cash outflow from operating activities of **HK$58.8 million** (compared to an inflow of **HK$22 million** in the prior period), net cash outflow from investing activities of **HK$8 million**, and net cash outflow from financing activities of **HK$11.3 million**, with cash and cash equivalents decreasing to **HK$47.6 million** at period-end Cash Flow Summary (For the six months ended September 30, 2021) | Cash Flow Category | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Net Cash Flows from/(used in) Operating Activities | (58,818) | 21,952 | (80,770) | | Net Cash Flows used in Investing Activities | (8,058) | (14,271) | 6,213 | | Net Cash Flows used in Financing Activities | (11,296) | (20,420) | 9,124 | | **Net Decrease in Cash and Cash Equivalents** | **(78,172)** | **(12,739)** | **(65,433)** | | Cash and Cash Equivalents at Beginning of Period | 125,748 | 140,773 | (15,025) | | **Cash and Cash Equivalents at End of Period** | **47,576** | **128,034** | **(80,458)** | Notes to Interim Condensed Consolidated Financial Information This section provides detailed explanatory notes to the interim condensed consolidated financial information, covering company background, accounting policies, and specific financial items [1. Corporate and Group Information](index=35&type=section&id=1.%20Corporate%20and%20Group%20Information) Wecon Holdings Limited was incorporated in the Cayman Islands on March 23, 2018, as an investment holding company, with its subsidiaries primarily engaged in building construction and RMAA services; its direct and ultimate holding company is Triple Arch Limited, registered in the British Virgin Islands - The company was incorporated in the Cayman Islands as an exempted company with limited liability on March 23, 2018, and is an investment holding company[153](index=153&type=chunk) - During the period, the Group's subsidiaries were principally engaged in the provision of building construction and repair, maintenance, alteration, and addition (RMAA) services[153](index=153&type=chunk) - The company's immediate and ultimate holding company is Triple Arch Limited, incorporated in the British Virgin Islands[153](index=153&type=chunk) [2. Basis of Preparation](index=35&type=section&id=2.%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of Appendix 16 of the Listing Rules, presented in Hong Kong Dollars; the accounting policies adopted are consistent with those used for the annual consolidated financial statements for the year ended March 31, 2021, except for the initial adoption of amended HKFRS (Interest Rate Benchmark Reform – Phase 2), which had no significant impact on the results and financial position for the current or prior periods - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of Appendix 16 of the Listing Rules[153](index=153&type=chunk) - The interim condensed consolidated financial information is presented in Hong Kong Dollars, and all values are rounded to the nearest thousand[155](index=155&type=chunk)[158](index=158&type=chunk) - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended March 31, 2021[165](index=165&type=chunk)[166](index=166&type=chunk) - The initial adoption of amended HKFRS 9, HKAS 39, HKFRS 7, HKFRS 4 and HKFRS 16 (Amendments) – Interest Rate Benchmark Reform – Phase 2 had no significant impact on the results and financial position for the current or prior accounting periods[167](index=167&type=chunk)[168](index=168&type=chunk) [3. Operating Segment Information](index=39&type=section&id=3.%20Operating%20Segment%20Information) The company's reportable operating segments are building contracts and repair, maintenance, alteration, and addition (RMAA) engineering; for the six months ended September 30, 2021, the building contracts segment generated **HK$488.8 million** in revenue and **HK$37.2 million** in gross profit, while the RMAA segment generated **HK$49.6 million** in revenue and incurred a gross loss of **HK$3.1 million**, with significant increases in both assets and liabilities for the building contracts segment Segment Revenue and Results (For the six months ended September 30, 2021) | Metric | Building Contracts (HK$ Thousand) | RMAA (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Revenue from External Customers | 488,766 | 49,593 | 538,359 | | Segment Results (Gross Profit/Loss) | 37,238 | (3,114) | 34,124 | Segment Assets and Liabilities (As of September 30, 2021) | Metric | Building Contracts (HK$ Thousand) | RMAA (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Segment Assets | 343,232 | 57,335 | 400,567 | | Segment Liabilities | 212,085 | 34,720 | 246,805 | [4. Revenue](index=41&type=section&id=4.%20Revenue) For the six months ended September 30, 2021, the company's total revenue from customer contracts was **HK$538.4 million**, with building contracts contributing **HK$488.8 million** and RMAA engineering contributing **HK$49.6 million**; most revenue (**HK$508.2 million**) was recognized "over time," while the remainder (**HK$30.2 million**) was recognized "at a point in time" Revenue by Source (For the six months ended September 30, 2021) | Category | Amount (HK$ Thousand) | | :--- | :--- | | Building Contracts | 488,766 | | RMAA Engineering | 49,593 | | **Total Revenue** | **538,359** | Revenue Recognition Timing (For the six months ended September 30, 2021) | Timing of Recognition | Amount (HK$ Thousand) | | :--- | :--- | | Over time | 508,153 | | At a point in time | 30,206 | | **Total Revenue** | **538,359** | [5. Finance Costs](index=42&type=section&id=5.%20Finance%20Costs) For the six months ended September 30, 2021, the company's finance costs were **HK$74 thousand**, primarily comprising **HK$30 thousand** in bank borrowing interest and **HK$44 thousand** in lease liabilities interest, representing a **42.2%** year-on-year decrease Composition of Finance Costs (For the six months ended September 30, 2021) | Category | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 30 | 32 | | Interest on lease liabilities | 44 | 96 | | **Total** | **74** | **128** | [6. Profit Before Tax](index=43&type=section&id=6.%20Profit%20Before%20Tax) For the six months ended September 30, 2021, the company's profit before tax was **HK$15.9 million**, with total depreciation expenses of **HK$3.492 million** and staff welfare expenses (excluding directors' emoluments) of **HK$42.8 million**; other key adjustments included fair value losses on financial assets of **HK$1.876 million**, gains on disposal of financial assets of **HK$0.734 million**, and dividend income of **HK$1.126 million** - For the six months ended September 30, 2021, the Group's profit before tax was **HK$15,948 thousand**[191](index=191&type=chunk)[192](index=192&type=chunk) Key Expense/Income Items (For the six months ended September 30, 2021) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,020 | 1,324 | | Depreciation of right-of-use assets | 2,472 | 2,372 | | Staff welfare expenses (excluding directors' emoluments) | 42,810 | 42,226 | | Net fair value losses/(gains) on financial assets at fair value through profit or loss | 1,876 | (200) | | Gains on disposal of financial assets at fair value through profit or loss | (734) | – | | Dividend income from equity investments at fair value through profit or loss | (1,126) | – | | Impairment of contract assets, net | 38 | 136 | | Impairment/(reversal of impairment) of trade receivables, net | (12) | 2 | - For the six months ended September 30, 2020, government grants of **HK$6,328 thousand** were included in "Other income and gains," with no such grants in the current period[193](index=193&type=chunk) [7. Income Tax](index=44&type=section&id=7.%20Income%20Tax) The company is exempt from income tax in the Cayman Islands and British Virgin Islands; Hong Kong profits tax is levied at **16.5%**, with qualifying subsidiaries taxed at **8.25%** on the first **HK$2 million** of assessable profits under the two-tiered tax rate regime, and total tax expense for the six months ended September 30, 2021, was **HK$2.372 million** - The Group is not subject to any income tax in the Cayman Islands and British Virgin Islands[196](index=196&type=chunk)[197](index=197&type=chunk) - Hong Kong profits tax is provided at **16.5%**, with qualifying subsidiaries taxed at **8.25%** on the first **HK$2,000,000** of assessable profits under the two-tiered tax rate regime, and the remainder at **16.5%**[196](index=196&type=chunk)[197](index=197&type=chunk) Total Tax Expense for the Period (For the six months ended September 30, 2021) | Category | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Current – Hong Kong tax for the period | 2,695 | 1,896 | | Deferred tax deduction/(credit) | (323) | 274 | | **Total Tax Expense for the Period** | **2,372** | **2,064** | [8. Earnings Per Share Attributable to Equity Holders of the Company](index=45&type=section&id=8.%20Earnings%20Per%20Share%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) For the six months ended September 30, 2021, the company's basic earnings per share were **HK1.7 cents** (compared to **HK2.3 cents** in the prior period), calculated based on profit attributable to equity holders of **HK$13.576 million** and a weighted average of **794,696,000** ordinary shares; there were no potentially dilutive ordinary shares during the reporting period Basic Earnings Per Share | Metric | 2021 (HK cents) | 2020 (HK cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.7 | 2.3 | - The basic earnings per share amount is calculated based on the profit attributable to equity holders of the company of **HK$13,576 thousand** (2020: **HK$18,529 thousand**) and the weighted average number of ordinary shares of **794,696,000** (2020: **800,000,000**)[201](index=201&type=chunk) - For the six months ended September 30, 2021 and 2020, there were no potentially dilutive ordinary shares in issue by the Group[201](index=201&type=chunk) [9. Dividends](index=45&type=section&id=9.%20Dividends) The Board recommended a final dividend of **HK1.2 cents** per share for the financial year ended March 31, 2021, totaling **HK$9.536 million**, and resolved not to declare an interim dividend for the six months ended September 30, 2021 - The Board recommended a final dividend of **HK1.2 cents** per share for the financial year ended March 31, 2021, totaling **HK$9,536 thousand**[201](index=201&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended September 30, 2021 (for the six months ended September 30, 2020: nil)[201](index=201&type=chunk) [10. Contract Assets and Trade Receivables](index=46&type=section&id=10.%20Contract%20Assets%20and%20Trade%20Receivables) As of September 30, 2021, the company's total contract assets and trade receivables amounted to **HK$355.7 million**, comprising net contract assets of **HK$191.9 million** (including other contract assets of **HK$90.7 million** and retention receivables of **HK$101.6 million**) and net trade receivables of **HK$163.8 million**; both other contract assets and retention receivables increased due to continuous provision of construction services and significant progress on more contracts at the reporting period end Total Contract Assets and Trade Receivables | Metric | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Contract Assets and Trade Receivables | 355,676 | 260,376 | Net Contract Assets | Category | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Other contract assets | 90,656 | 61,569 | | Retention receivables | 101,640 | 90,462 | | Impairment of contract assets | (392) | (354) | | **Net Contract Assets** | **191,904** | **151,677** | Net Trade Receivables | Category | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables | 163,795 | 108,734 | | Impairment of trade receivables | (23) | (35) | | **Net Trade Receivables** | **163,772** | **108,699** | - The increase in other contract assets as of September 30, 2021, and March 31, 2021, was due to the continuous provision of construction services at the end of the reporting period[207](index=207&type=chunk)[208](index=208&type=chunk) - Retention receivables increased as of September 30, 2021, and March 31, 2021, primarily due to significant progress on more contracts that were not yet completed at the end of the reporting period; retention receivables are repayable within one to two years[211](index=211&type=chunk) Ageing Analysis of Trade Receivables (As of September 30, 2021) | Ageing | Amount (HK$ Thousand) | | :--- | :--- | | Within 90 days | 158,660 | | 91 to 180 days | 1,218 | | 181 to 365 days | 3,894 | | **Total** | **163,772** | [11. Trade and Retention Payables](index=49&type=section&id=11.%20Trade%20and%20Retention%20Payables) As of September 30, 2021, the company's total trade and retention payables amounted to **HK$214.6 million**, a significant increase from March 31, 2021, comprising trade payables of **HK$129.1 million** (within 3 months) and retention payables of **HK$85.5 million**; retention payables are typically settled within one to two years, and trade payables generally have a credit period of 30 days Total Trade and Retention Payables | Metric | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Trade and Retention Payables | 214,611 | 143,758 | Ageing Analysis of Trade and Retention Payables (As of September 30, 2021) | Category | Ageing | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Trade payables | Within 3 months | 129,094 | | Retention payables | - | 85,517 | - Retention payables are generally settled within one to two years; payment terms for trade payables are stipulated in the relevant contracts, with a typical credit period of 30 days[218](index=218&type=chunk) [12. Share Capital](index=50&type=section&id=12.%20Share%20Capital) As of September 30, 2021, the company's authorized share capital was **HK$50 million** (**5 billion** ordinary shares of **HK$0.01** each), and its issued and fully paid share capital was **HK$8 million** (**800 million** ordinary shares of **HK$0.01** each) Share Capital Structure (As of September 30, 2021) | Category | Number of Shares | Par Value | Amount (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Authorized share capital | 5,000,000,000 | HK$0.01 | 50,000 | | Issued and fully paid share capital | 800,000,000 | HK$0.01 | 8,000 | [13. Contingent Liabilities](index=50&type=section&id=13.%20Contingent%20Liabilities) As of September 30, 2021, the company's contingent liabilities primarily consisted of performance bonds totaling **HK$65.9 million**, a significant decrease from **HK$119.1 million** as of March 31, 2021; part of the performance bonds were secured by pledged deposits of **HK$31.19 million** Performance Bonds | Metric | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Performance Bonds | 65,896 | 119,107 | (53,211) | (44.7%) | - Part of the performance bonds were secured by pledged deposits of **HK$31,190 thousand** (March 31, 2021: **HK$34,193 thousand**)[225](index=225&type=chunk) [14. Related Party Transactions](index=51&type=section&id=14.%20Related%20Party%20Transactions) As of September 30, 2021, the company had no outstanding balances with related companies; total remuneration paid to key management personnel for the period was **HK$2.164 million**, including salaries, allowances, and benefits in kind paid to a director's spouse - As of September 30, 2021, and March 31, 2021, the Group had no balances with related companies[227](index=227&type=chunk) Key Management Personnel Remuneration (For the six months ended September 30, 2021) | Category | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 2,017 | 1,900 | | Post-employment benefits | 147 | 137 | | **Total Remuneration** | **2,164** | **2,037** | - Total salaries, housing allowances, other allowances, and benefits in kind paid to Ms. Lai Yuk Lin, the spouse of a Director, including a housing allowance in kind of **HK$820,000**[230](index=230&type=chunk) [15. Fair Value and Fair Value Hierarchy of Financial Instruments](index=52&type=section&id=15.%20Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) Management assessed that the fair values of cash and cash equivalents, contract assets and trade receivables, trade and retention payables, certain financial assets and liabilities, and lease liabilities approximate their carrying amounts, primarily due to their short-term maturities; as of September 30, 2021, total assets measured at fair value were **HK$21.407 million**, including listed equity investments of **HK$18.005 million** (Level 1) and other investments of **HK$3.402 million** (Level 2), with no transfers between Level 1 and Level 2, or into or out of Level 3 during the reporting period - Management has assessed that the fair values of cash and cash equivalents, contract assets and trade receivables, trade and retention payables, financial assets included in prepayments, deposits and other receivables, financial liabilities included in other payables and accruals, and lease liabilities approximate their carrying amounts, primarily due to the short-term maturities of these instruments[234](index=234&type=chunk)[236](index=236&type=chunk) Assets Measured at Fair Value (As of September 30, 2021) | Category | Quoted prices in active markets (Level 1) (HK$ Thousand) | Significant observable inputs (Level 2) (HK$ Thousand) | Significant unobservable inputs (Level 3) (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Listed equity investments | 18,005 | – | – | 18,005 | | Other investments | – | 3,402 | – | 3,402 | | **Total** | **18,005** | **3,402** | **–** | **21,407** | - During the reporting period, there were no transfers between Level 1 and Level 2 fair value measurements, nor any transfers into or out of Level 3 for financial assets[242](index=242&type=chunk)[244](index=244&type=chunk) [16. Approval of the Unaudited Interim Financial Information](index=53&type=section&id=16.%20Approval%20of%20the%20Unaudited%20Interim%20Financial%20Information) The unaudited interim financial information was approved and authorized for issue by the Board of Directors on November 26, 2021 - The unaudited interim financial information was approved and authorized for issue by the Board of Directors on November 26, 20

WECON HOLDINGS LIMITED 偉工控股有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock code 股份代號: 1793 年 報 ANNUAL REPORT 2020/21 CONTENTS 目錄 | --- | --- | |---------------------------------------------------------------------------------------------------|-------| | Corporate Information 公司資料 | | | Chairman's Statement 主席報告 | | | Management Discussion and Analysis 管理層討論及分析 | | | Corporate Governance Report 企業管治報告 | 17 | | Biographical Details of Directors and Senior Management 董事 ...

WECON Janu Trans Than INTERIM REPORT 中期報告 2020/2021 ul Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 中期簡明綜合損益及其他全面收入表 25 Interim Condensed Consolidated Statement of Financial Position 中期簡明綜合財務狀況表 26 Interim Condensed Consolidated Statement of Changes in Equity 中期簡明綜合權益變動表 28 Interim Condensed Consolidated Statement of Cash Flows 中期簡明綜合現金流量表 29 Notes to Interim Condensed Consolidated Financial Information 中期簡明綜合財務資料附註 32 WECON CONTENTS 目錄 | --- | --- | |----------- ...

２０１９/２０ ＡＮＮＵＡＬ ＲＥＰＯＲＴ | 年 報 WE T WECON HOLDINGS LIMITED 偉工控股有限公 司 Stock code 股份代號: 1793 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司） CONTENTS 目錄 Corporate Information 公司資料 2 Chairman's Statement 主席報告 4 Management Discussion and Analysis 管理層討論及分析 6 Corporate Governance Report 企業管治報告 17 Biographical Details of Directors and Senior Management 董事及高級管理層的履歷詳情 36 wecon Report of the Directors 50 | --- | --- | |------------------------------------------------------------------------- ...