Financial Performance - The company's total assets as of March 31, 2024, amounted to HKD 204,702,000, an increase from HKD 193,268,000 in the previous year, representing a growth of approximately 5.4%[35] - The company's net asset value decreased to HKD 108,743,000 from HKD 113,182,000, a decline of approximately 3.9%[35] - The total equity as of March 31, 2024, was HKD 108,743,000, down from HKD 113,182,000, reflecting a decrease of about 3.9%[35] - The company reported a loss of HKD 18,663,000 for the year, impacting retained earnings which decreased to HKD (1,316,000) from HKD 3,123,000[36] - Cash flow from operating activities before tax loss adjusted items improved to HKD 33,437 thousand in 2024 from a loss of HKD 2,401 thousand in 2023[37] - The net cash flow from operating activities was HKD 33,437 thousand, a significant recovery compared to a net cash outflow of HKD 2,401 thousand in the previous year[37] - The company reported a significant increase in revenue over the past five fiscal years, with a detailed summary available on page 108 of the report[102] Assets and Liabilities - Trade and other receivables decreased to HKD 28,918,000 from HKD 45,206,000, reflecting a decline of about 36.0%[35] - Cash and bank balances significantly increased to HKD 49,527,000 from HKD 17,087,000, marking a growth of approximately 189.5%[35] - Current liabilities rose to HKD 96,847,000 from HKD 28,101,000, indicating an increase of about 244.0%[35] - The available reserves for distribution as of March 31, 2024, were approximately HKD 75.3 million[5] - The expected credit loss provision for contract assets increased significantly to HKD 2,551 thousand in 2024 from HKD 40 thousand in 2023[37] - The company reported a decrease in trade and other payables by HKD 73,779 thousand in 2024 compared to a decrease of HKD 83,543 thousand in 2023[37] Shareholder and Governance - The company has a major shareholder, Yuanfeng, holding 75% of the issued share capital, which translates to 360,000,000 shares[82] - The company confirmed that it maintained sufficient public float as per listing rules throughout the review year[91] - There were no significant transactions or contracts involving directors or senior management that could impact the group's business during the review year[75] - The company has established a remuneration committee to review and recommend the remuneration policy for all directors and senior management based on market benchmarks[80] - The board of directors has undergone changes, with several members resigning and new appointments made on November 29, 2023[98] - The company has confirmed the independence of all independent non-executive directors as per the listing rules[98] Accounting Policies and Financial Instruments - Financial assets are primarily measured at fair value, with specific conditions outlined for amortized cost measurement[104] - The company has adopted a simplified approach for calculating expected credit losses based on historical loss experience and external indicators[112] - Contract liabilities are recognized when customers pay consideration before the company recognizes the related revenue[116] - The company has outlined its accounting policies regarding lease liabilities and financial assets in the report[108] - The group recognizes right-of-use assets and lease liabilities at the commencement date of the lease, with the cost of right-of-use assets including initial direct costs and estimated costs for dismantling and removing related assets[119] - The group reassesses lease liabilities based on revised lease terms and discounted rates at the effective date of the revision[121] Revenue Recognition - Revenue is recognized when control of the product transfers to the customer, typically upon delivery[150] - The company recognizes revenue when control of goods or services is transferred to customers, using the output method for gradual recognition based on the value of completed performance obligations[174] Risk Management and Provisions - The company reported a provision based on the present value of expected expenditures related to its obligations, using a pre-tax rate that reflects current market measures[190] - Contingent liabilities may arise from past events and are recognized only if future events, which are not fully controlled by the group, confirm their existence[192] - Deferred tax liabilities are generally recognized for all taxable temporary differences, while deferred tax assets are recognized for all deductible temporary differences and unused tax credits, subject to the likelihood of future taxable profits[195] Employee Benefits and Contributions - The company has a defined contribution retirement benefit plan, with contributions made based on a fixed percentage of employees' basic salaries[186] - The company participated in the Mandatory Provident Fund Scheme as per Hong Kong legislation but did not engage in any other pension plans during the review year[92] Corporate Social Responsibility - The company made charitable donations amounting to approximately HKD 14,000 in 2024, an increase from HKD 11,000 in 2023[52] - The company has arranged appropriate liability insurance for directors and staff against legal claims arising from corporate activities[178]

Financial Performance - For the fiscal year ending March 31, 2024, the company reported a loss attributable to equity holders of HKD 4,439,000, compared to a loss of HKD 18,663,000 for the fiscal year 2023[19]. - The basic loss per share for the fiscal year 2024 was HKD 0.92, down from HKD 3.89 in fiscal year 2023[19]. - The company's loss attributable to equity holders decreased by approximately HKD 14.3 million to about HKD 4.4 million for the fiscal year 2023, compared to HKD 18.7 million in fiscal year 2022[32]. - The loss before tax for the fiscal year was approximately HKD 4.4 million, significantly improved from a loss of HKD 18.7 million in the previous fiscal year[100]. - The total loss attributable to equity holders for the fiscal year was approximately HKD 4.4 million, compared to HKD 18.7 million in the previous fiscal year[100]. - The financial cost increased by approximately HKD 0.3 million to about HKD 5.8 million, primarily due to interest recorded for a full year compared to 11 months in the previous fiscal year[84]. - The group did not declare any dividends for the fiscal year, consistent with the previous fiscal year[100]. Revenue and Growth - The company's revenue increased over 100% to approximately HKD 460.3 million in the review year, compared to HKD 205.9 million in the fiscal year 2023[78]. - Revenue contribution from customer A1 was HKD 444,097 thousand in fiscal year 2024, a significant increase from HKD 163,960 thousand in fiscal year 2023[40]. - The group's revenue for the fiscal year was approximately HKD 460.3 million, compared to HKD 205.9 million in the previous fiscal year, representing an increase of about 123%[100]. - Customer contract revenue recognized over time amounted to HKD 460.3 million for the fiscal year 2024, compared to HKD 205.9 million in the previous year[155]. Expenses and Costs - The group reported a significant increase in subcontracting costs, which were HKD 309,725 thousand in fiscal year 2024, compared to HKD 135,794 thousand in fiscal year 2023[45]. - The gross profit margin for the fiscal year was approximately 4.4%, down from 5.9% in the previous fiscal year[100]. - The decrease in gross margin from 5.9% in fiscal year 2023 to 4.4% in the review year, a reduction of 1.5 percentage points, is attributed to intense industry competition[78]. - Employee costs, including director remuneration, increased to HKD 24,394,000 in 2024 from HKD 21,786,000 in 2023, representing a rise of about 12.0%[112]. - The total employee costs incurred by the group in the review year amounted to approximately HKD 25.3 million, compared to HKD 22.6 million in the fiscal year 2023[181]. - The group's direct costs increased to HKD 17,448,000 in 2024 from HKD 15,194,000 in 2023, representing a growth of about 14.8%[129]. Assets and Liabilities - The total assets decreased to HKD 108,789,000 in 2024 from HKD 167,129,000 in 2023, a decline of about 35.0%[116]. - The net asset value of the group was HKD 108,743,000 in 2024, down from HKD 113,182,000 in 2023, showing a decrease of approximately 3.9%[116]. - The asset-to-liability ratio increased from approximately 48.5% as of March 31, 2023, to about 55.0% as of March 31, 2024, primarily due to an increase in interest payable during the review year[33]. - There were no significant or contingent liabilities as of March 31, 2024[80]. Market and Industry Conditions - The company faced structural challenges in the renovation industry, particularly due to rising labor costs and limited experienced workers in Hong Kong[27]. - The company aims to balance growth and stability in its business strategy while navigating a complex market environment[29]. - The economic recovery in Hong Kong is reflected in a positive GDP growth of 3.2% in 2023, reversing the negative growth of 2.2% in 2022, driven by the lifting of COVID-19 control measures[57]. - The group anticipates significant recovery and growth in the renovation industry, driven by the Hong Kong government's removal of various property market taxes, leading to increased transaction volumes[173]. - The strategic planning for the development of the Northern New Territories aims to establish a second city center, expected to bring numerous large-scale construction projects, providing ample opportunities for the construction industry[173]. Corporate Governance and Compliance - The company has adhered to all corporate governance codes during the fiscal year[93]. - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2023, which are not expected to have a significant impact on the consolidated financial statements[120][106]. - The company has adopted a share option scheme since December 6, 2018, with a maximum of 48 million shares available for issuance under the scheme[77]. Future Outlook and Plans - The group has no significant future investment or capital asset plans as of the review year[67]. - The group has no major investments or acquisitions planned for the near future, indicating a cautious approach to capital expenditure[67]. - The group has not made any significant investments, acquisitions, or disposals of subsidiaries and associated companies during the review year[36]. - A proposal to change the company name is pending conditions to be met as outlined in the announcement dated June 13, 2024[200]. - The company will hold an annual general meeting to consider and approve special resolutions related to the proposed name change[200].

Financial Performance - For the six months ended September 30, 2023, the group's revenue increased significantly to approximately HKD 218.0 million, representing a 124.0% increase compared to approximately HKD 97.3 million for the same period in 2022[11]. - The group's gross profit rose by approximately HKD 4.1 million or 62.1% to about HKD 10.7 million, with a gross profit margin of approximately 4.9% for the six months ended September 30, 2023[14]. - The company recorded a net loss of approximately HKD 0.4 million for the six months ended September 30, 2023, a decrease of HKD 4.3 million compared to the same period in 2022, primarily due to increased revenue and gross profit as the economy continues to recover[40]. - Revenue for the six months ended September 30, 2023, was HKD 218,039,000, a significant increase from HKD 97,288,000 in the same period of 2022, representing a growth of 124.4%[80]. - Gross profit for the same period was HKD 10,685,000, compared to HKD 6,643,000 in 2022, indicating a gross margin improvement[80]. - Loss before tax decreased to HKD 350,000 from HKD 4,653,000 year-on-year, showing a reduction in losses by approximately 92.5%[80]. - Basic and diluted loss per share improved to HKD (0.07) from HKD (0.97) in the previous year, reflecting a positive trend in earnings performance[80]. Expenses and Costs - Administrative and other operating expenses decreased by 6.9% to approximately HKD 8.1 million, down from approximately HKD 8.7 million in the same period last year[16]. - The group's financial costs increased by approximately HKD 0.3 million or 11.5% to about HKD 2.9 million, primarily due to interest on existing borrowings[16]. - Employee costs for the six months ended September 30, 2023, totaled approximately HKD 11.5 million, up from HKD 10.0 million for the same period in 2022, indicating a year-on-year increase of 15%[74]. - Total direct costs increased to HKD 207,354,000 from HKD 90,645,000, primarily driven by higher subcontracting costs which rose to HKD 143,099,000 from HKD 62,763,000[100]. - Administrative expenses rose to HKD 3,871,000 from HKD 3,103,000, marking an increase of 25%[124]. Assets and Liabilities - The asset-liability ratio increased from approximately 48.5% as of March 31, 2023, to about 50.8% as of September 30, 2023, mainly due to an increase in interest payable[18]. - The total cash and cash equivalents, along with restricted cash, amounted to approximately HKD 40.3 million as of September 30, 2023, up from approximately HKD 20.1 million as of March 31, 2023, driven by a net cash inflow from operating activities of approximately HKD 20.2 million[42]. - Current liabilities increased to HKD 95,872 thousand from HKD 28,101 thousand, representing a significant rise of approximately 241%[56]. - Non-current liabilities decreased significantly, with borrowings reduced from HKD 48,000,000 to zero, indicating improved financial stability[82]. - The company’s total liabilities included 48,000 thousand HKD due within one year as of September 30, 2023[162]. Market and Economic Outlook - The Hong Kong government forecasts a GDP growth of 3.2% for the year, with an inflation rate of 1.8%[12]. - The group anticipates a positive recovery in the renovation industry in the short term, driven by the improving economic conditions post-COVID-19[13]. - The Hong Kong government plans to increase public housing units and accelerate urban redevelopment projects, which is expected to generate significant demand for renovation projects in Hong Kong[36]. - The residential property market saw a year-on-year transaction value decline of 18%, influenced by global economic uncertainty and rising local interest rates[32]. Shareholder and Corporate Governance - The company has not declared any interim dividend for the six months ended September 30, 2023, consistent with the same period in 2022[26]. - The company and its concert parties collectively own 360,000,000 shares, equivalent to 75.0% of the total issued share capital following the completion of a sale agreement on September 22, 2023[24]. - The company has complied with all provisions of the corporate governance code as of September 30, 2023[196]. - The audit committee consists of three members, all of whom are independent non-executive directors[197]. Operational Highlights - The company continues to focus on its core business of renovation services and supply of renovation materials, with all operations based in Hong Kong[87]. - Major client A1 contributed HKD 211,141,000 to revenue, up from HKD 74,711,000 in the previous year, indicating a growth of 182%[120]. - The company reported related party compensation of HKD 2,567,000 for the six months ended September 30, 2023, compared to HKD 1,671,000 for the same period in 2022[187]. - The company has not made any significant investments, acquisitions, or disposals of subsidiaries or associated companies during the reporting period[22].

Financial Performance - The group's revenue for the six months ended September 30, 2023, was approximately HKD 218.0 million, compared to HKD 97.3 million for the same period in 2022, representing a growth of 124.5%[7] - The gross profit margin for the six months ended September 30, 2023, was approximately 4.9%, down from 6.8% for the same period in 2022[7] - The loss attributable to equity holders for the six months ended September 30, 2023, was approximately HKD 0.4 million, a significant improvement from a loss of HKD 4.7 million in the same period of 2022[7] - The basic and diluted loss per share for the six months ended September 30, 2023, was approximately HKD 0.07, compared to HKD 0.97 for the same period in 2022[7] - Revenue for the six months ended September 30, 2023, was HKD 4,218,039, compared to HKD 97,288 for the same period in 2022, indicating a significant increase[29] - The loss before tax for the six months ended September 30, 2023, was HKD 350, compared to a loss of HKD 4,653 in the same period last year, showing an improvement in financial performance[30] - Basic and diluted loss per share improved to HKD 0.07 from HKD 0.97 year-on-year, indicating a reduction in losses[31] - The group recorded a net loss of approximately HKD 0.4 million for the six months ended September 30, 2023, a decrease of HKD 4.3 million compared to a net loss of approximately HKD 4.7 million for the same period in 2022[68] Expenses and Costs - The total administrative and other operating expenses for the six months ended September 30, 2023, were HKD 8,111 million, a decrease from HKD 8,673 million in the same period of 2022[8] - The financial costs for the six months ended September 30, 2023, were HKD 2,925 million, compared to HKD 2,623 million for the same period in 2022, indicating an increase of 11.6%[22] - Direct costs for the same period were HKD 207,354, up from HKD 90,645 in the previous year, reflecting a rise in operational expenses[29] - Total employee costs for the six months ended September 30, 2023, amounted to approximately HKD 11.5 million, an increase from HKD 10.0 million for the same period in 2022[102] - Employee costs, including director's remuneration, rose to HKD 11,525 from HKD 10,006, reflecting increased staffing expenses[46] Assets and Liabilities - The net asset value as of September 30, 2023, was HKD 112,832 million, slightly down from HKD 113,182 million as of March 31, 2023[12] - Trade and other receivables decreased to HKD 38,173 from HKD 45,206, suggesting a reduction in outstanding debts[34] - The total equity as of September 30, 2023, was HKD 112,832, slightly down from HKD 113,182 at the end of the previous period[37] - Trade payables as of September 30, 2023, amounted to HKD 33.3 million, up from HKD 15.4 million as of March 31, 2023[56] - The group’s trade receivables aged 0 to 30 days were HKD 15.2 million as of September 30, 2023, down from HKD 24.0 million as of March 31, 2023[76] - The group has not recognized any provision for expected credit losses on trade receivables for the six months ended September 30, 2023, compared to approximately HKD 2,000 as of March 31, 2023[50] - As of September 30, 2023, the group recorded a write-off of receivables amounting to HKD 1,000,000, compared to zero on March 31, 2023[79] - Other receivables decreased to HKD 815,000 as of September 30, 2023, from HKD 1,107,000 as of March 31, 2023[80] - Prepayments increased significantly to HKD 6,817,000 as of September 30, 2023, compared to HKD 3,580,000 as of March 31, 2023, primarily due to new projects[80] Market and Economic Conditions - The Hong Kong government plans to increase the number of public housing units and accelerate redevelopment projects, which is expected to generate significant demand for renovation projects in Hong Kong[63] - The group has experienced a resurgence in renovation project inquiries following the improvement in the overall economic situation post-COVID-19[62] - The unemployment rate in Hong Kong decreased to 2.8%, reflecting the positive impact of government strategies to attract tourists and promote local consumption[59] - The Hong Kong government forecasts a GDP growth of 3.2% for the year, with an inflation rate of 1.8%[90] - The residential property market saw a year-on-year transaction value decline of 18% in the second quarter[87] Corporate Governance and Management - The interim financial results for the six months ended September 30, 2023, have been reviewed and approved by the audit committee[108] - The audit committee, consisting of three independent non-executive directors, was established to comply with corporate governance standards[136] - The board members include both executive and independent non-executive directors, ensuring a diverse governance structure[139] - The company has maintained sufficient public float as required by listing rules as of September 30, 2023[135] - The board expressed gratitude to the management team and employees for their efforts and contributions[138] Future Outlook and Strategy - The group believes that the renovation industry is expected to see a good recovery in the short term, driven by economic indicators and market conditions[112] - The company has resolved not to declare any interim dividend for the six months ended September 30, 2023, consistent with the previous year[7] - The company has no significant future investment or capital asset plans as of September 30, 2023[126] - The group has not made any significant investments, acquisitions, or disposals of subsidiaries or associated companies during the reporting period[125] - The company is preparing a composite document related to the offer[127] - The company agreed to sell 360,000,000 shares, representing 75% of the total issued share capital, for a total price of HKD 165,700,000, equivalent to approximately HKD 0.4603 per share[126] - The group has adopted a share option scheme to attract and retain top talent, with a maximum of 48,000,000 shares available for issuance, representing 10% of the issued shares as of the announcement date[104] Miscellaneous - There were no significant subsequent events after September 30, 2023, up to the date of this announcement[3] - The company has applied for a waiver to extend the deadline for sending the composite document to November 29, 2023[127] - There were no purchases, sales, or redemptions of the company's securities by the company or its subsidiaries during the six months ended September 30, 2023[134] - The group has maintained a prudent financial management approach to ensure liquidity and meet funding needs[120] - There are no significant contingent liabilities as of September 30, 2023, and no major liabilities were reported[124] - The group has a total of 67 full-time employees as of September 30, 2023, compared to 58 on March 31, 2023[102]

Financial Performance - The group's revenue for the fiscal year ending March 31, 2023, was approximately HKD 205.9 million, a decrease from HKD 232.2 million in the previous fiscal year[1]. - The group reported a loss before tax of approximately HKD 18.7 million, compared to a loss of HKD 4.0 million in the previous fiscal year[1]. - The loss attributable to equity holders for the fiscal year was approximately HKD 18.7 million, compared to HKD 4.0 million in the previous fiscal year[1]. - Basic and diluted loss per share attributable to equity holders was approximately HKD 3.89, compared to HKD 0.84 in the previous fiscal year[1]. - Revenue from customer contracts recognized over time was HKD 205.9 million, down from HKD 221.5 million in the previous fiscal year[26]. - The company's net loss attributable to equity holders increased by approximately HKD 14.7 million to about HKD 18.7 million, primarily due to increased administrative and other operating expenses[124]. - The company reported a total of HKD 45,206,000 in receivables, up from HKD 30,208,000 in the previous year, reflecting growth in business operations[44]. - The group aims to balance growth and stability in its business strategy amid ongoing market challenges and opportunities for expansion[76]. Profitability and Margins - The gross profit margin for the fiscal year was approximately 5.9%, up from 4.3% in the previous fiscal year[1]. - The group's gross profit increased by approximately HKD 2.2 million to about HKD 12.1 million, with a gross profit margin of approximately 5.9%, up from 4.3% in the fiscal year 2022[121]. - Gross profit increased to HKD 12,122,000, up from HKD 9,890,000, representing a growth of 22.9%[99]. Dividends - The board has resolved not to declare any dividends for the fiscal year, consistent with the previous fiscal year[1]. - The company does not recommend the payment of dividends for the year ended March 31, 2023, consistent with no dividends declared in 2022[51]. - The company has not declared any dividends for the review year[146]. Assets and Liabilities - Current assets include trade and other receivables of HKD 45.2 million and cash and bank balances of HKD 17.1 million[2]. - Current liabilities include trade and other payables of HKD 24.4 million and borrowings of HKD 43.5 million[2]. - The group's net asset value as of March 31, 2023, was HKD 113.182 million, compared to HKD 131.845 million in the previous year[93]. - The group's asset-to-liability ratio increased from approximately 34.7% as of March 31, 2022, to about 48.5% as of March 31, 2023, mainly due to an increase in borrowings[126]. Operational Costs - Administrative and other operating expenses rose by approximately HKD 12.25 million or 96.8% to about HKD 24,882,000 compared to HKD 12,635,000 in the previous year[99][113]. - Financial costs increased by approximately HKD 4.1 million or 292.9% to about HKD 5,508,000, up from HKD 1,432,000 in the previous year[99][114]. - The company has incurred depreciation and lease payments for right-of-use assets and lease liabilities amounting to HKD 428,000 and HKD 449,000 respectively for the year ended March 31, 2023[50]. Market Conditions - The local GDP is expected to rebound significantly in 2023, with an estimated growth of 3.5% to 5.5%[87]. - The first quarter of 2023 saw a recovery in local GDP with a growth of 2.7%, aided by the easing of social distancing measures and the resumption of cross-border activities[80]. - The group has been impacted by rising operational costs and labor shortages due to global events affecting the supply chain[81]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all provisions during the review year[157]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and compliance[171]. - The audit committee has reviewed and approved the consolidated financial statements for the review year, ensuring compliance with applicable accounting standards and regulations[173]. Shareholder Information - The annual general meeting is scheduled for August 21, 2023, at a specified location in Hong Kong[147]. - The company will temporarily suspend share registration procedures from August 16, 2023, to August 21, 2023, for the upcoming annual general meeting[176]. - Following a sale of 264,000 shares, the public now holds 120,000,000 shares, which is 25% of the total issued share capital, meeting the minimum public float requirement[138]. Future Outlook - The group expects to continue its focus on improving gross profit margins and managing operational costs in the upcoming fiscal year[1]. - The company has significant capital expenditures planned, including major investments and acquisitions[143].

Financial Performance - For the six months ended September 30, 2022, the group's revenue decreased by approximately HKD 8.4 million or 7.9% to about HKD 97.3 million, compared to HKD 105.7 million for the same period in 2021[21]. - The group's gross profit increased by approximately HKD 1.7 million or 34.7% to about HKD 6.6 million, with a gross profit margin of approximately 6.8%, up from 4.6% in the previous year[22]. - The company recorded a net loss of approximately HKD 4.7 million for the six months ended September 30, 2022, an increase of 261.5% compared to a net loss of approximately HKD 1.3 million for the same period in 2021[27]. - Revenue for the six months ended September 30, 2022, was HKD 97,288,000, a decrease of 8% compared to HKD 105,714,000 for the same period in 2021[52]. - The company reported a loss attributable to equity holders of HKD 4,653,000, compared to a loss of HKD 1,296,000 in the same period last year, indicating a significant increase in losses[52]. - Basic and diluted loss per share was HKD 0.97, compared to HKD 0.27 for the same period in 2021[52]. - The company reported a pre-tax loss of HKD 10,006,000 for the six months ended September 30, 2022, compared to a loss of HKD 9,158,000 in the same period of 2021[80]. Expenses and Costs - Administrative and other operating expenses for the six months ended September 30, 2022, were approximately HKD 8.7 million, an increase of 61.1% compared to about HKD 5.4 million in the same period last year[24]. - Financial costs increased by approximately HKD 1.9 million or 271.4% to about HKD 2.6 million, primarily due to higher interest rates on new borrowings[25]. - Total direct costs for the six months ended September 30, 2022, were HKD 6,903 thousand, up from HKD 6,176 thousand in 2021, reflecting an increase of 11.7%[83]. - Administrative expenses increased to HKD 3,103 thousand for the six months ended September 30, 2022, compared to HKD 2,982 thousand in 2021, marking a rise of 4.1%[83]. Cash Flow and Liquidity - As of September 30, 2022, the company's cash and cash equivalents totaled approximately HKD 23.1 million, up from approximately HKD 20.7 million as of March 31, 2022, reflecting a net cash inflow of approximately HKD 2.4 million from operating and financing activities[28]. - The net cash flow from operating activities for the six months ended September 30, 2022, was HKD 85,000, compared to a net cash outflow of HKD 9,770,000 for the same period in 2021[61]. - The net increase in cash and cash equivalents was HKD 2,452,000, compared to a decrease of HKD 9,439,000 in the same period of 2021[61]. - Cash and bank balances increased to HKD 20,068,000 from HKD 17,616,000, showing a positive cash flow trend[54]. Market Conditions and Strategy - The decrease in revenue was mainly attributed to a reduction in the number of large projects in the market during the reporting period[21]. - The ongoing COVID-19 pandemic and geopolitical tensions have created long-term changes in the overall economy, impacting market conditions[19]. - The company aims to leverage future opportunities as the market is expected to recover, following the government's emphasis on providing more public and private housing units[19]. - The company continues to optimize operational management and cost control, demonstrating effective business strategies despite the revenue decline[18]. - The company remains committed to enhancing resilience against market challenges and adapting to the new normal post-COVID-19[19]. Shareholder and Corporate Governance - The board of directors resolved not to declare any interim dividend for the six months ended September 30, 2022, consistent with the previous year[44]. - Major shareholders include Wan Shih Cheng International Investment Limited, holding 360 million shares, representing 75% of the total issued share capital[137]. - The company has complied with all provisions of the corporate governance code during the six months ending September 30, 2022[147]. - The audit committee, consisting of independent non-executive directors, reviewed and approved the unaudited interim financial statements for the six months ending September 30, 2022[153]. Employee and Management Information - The total employee costs incurred by the company for the six months ended September 30, 2022, amounted to approximately HKD 10.0 million, compared to approximately HKD 9.2 million for the same period in 2021[43]. - The company employed a total of 54 full-time employees as of September 30, 2022, a decrease from 56 employees as of March 31, 2022[43]. - The total remuneration for key management personnel for the six months ended September 30, 2022, was 1,711 thousand HKD, slightly up from 1,704 thousand HKD in the previous year[122]. Legal and Compliance Matters - The company is currently involved in ongoing legal proceedings regarding a claim of approximately 44.0 million HKD from a subcontractor, with a counterclaim of about 8.0 million HKD[125]. - The company has no provisions made in the interim financial statements for the ongoing legal claims as the outcomes remain uncertain[125]. Assets and Liabilities - Total assets as of September 30, 2022, were HKD 200,411,000, a slight decrease from HKD 206,548,000 as of March 31, 2022[54]. - The company's debt-to-equity ratio increased from approximately 34.7% as of March 31, 2022, to approximately 39.8% as of September 30, 2022, primarily due to an increase in borrowings during the six months[28]. - Current liabilities decreased significantly to HKD 23,706,000 from HKD 75,957,000, indicating improved liquidity[54]. - Non-current liabilities increased to HKD 50,242,000 from HKD 44,000, reflecting new borrowings[56].

Financial Performance - The total revenue for the fiscal year ended March 31, 2022, was approximately HKD 232.2 million, a decrease of about 16.5% compared to the previous fiscal year[9]. - The loss attributable to equity holders for the fiscal year was approximately HKD 4.0 million, an improvement of about HKD 28.5 million from the previous fiscal year due to cost control measures implemented by the company[9]. - The group's revenue decreased by approximately HKD 46.0 million or 16.5% to about HKD 232.2 million for the fiscal year, compared to HKD 278.2 million in the previous fiscal year[15]. - The group recorded a gross profit of approximately HKD 9.9 million, a turnaround from a gross loss of about HKD 28.1 million in the previous fiscal year, attributed to improved cost control[20]. - Other income decreased to approximately HKD 158,000 from about HKD 11.8 million in the previous fiscal year, primarily due to government subsidies received in the prior year[21]. - Administrative and other operating expenses decreased by approximately HKD 1.9 million or 13.1% to about HKD 12.6 million, down from HKD 14.5 million in the previous fiscal year[22]. - Financial costs decreased by approximately HKD 0.3 million or 17.6% to about HKD 1.4 million, compared to HKD 1.7 million in the previous fiscal year[23]. - The net loss attributable to equity holders decreased by approximately HKD 28.5 million to about HKD 4.0 million, down from HKD 32.5 million in the previous fiscal year, due to improved cost control[26]. - As of March 31, 2022, the group's cash and bank balances totaled approximately HKD 20.7 million, down from HKD 26.6 million in the previous fiscal year[27]. - The group's debt-to-equity ratio decreased from approximately 35.3% to about 34.7% as of March 31, 2022, mainly due to a reduction in amounts payable to a director[27]. Economic Environment - The economic growth forecast for Hong Kong in 2022 has been revised down from 2%-3.5% to 1%-2% due to anticipated challenges from the ongoing COVID-19 pandemic[9]. - The company expects to continue operating in a challenging environment over the next two years, with ongoing pandemic measures and rising operational costs hindering recovery momentum[11]. - The construction industry, which the company is part of, has been significantly affected by the pandemic, with the renovation market still struggling to recover[8]. - The overall economic environment in Hong Kong remains below pre-pandemic levels, approximately 2% lower than in 2018, despite a GDP growth of 6.4% in 2021[13]. - The construction industry's business sentiment remains low, particularly among large enterprises, indicating ongoing challenges in the sector[8]. - The construction industry in Hong Kong is expected to face ongoing challenges due to economic uncertainties and inflation pressures[18]. Business Outlook - The company maintains a cautious outlook for future business prospects but remains optimistic about regaining growth momentum once market conditions normalize[11]. - The company will closely monitor industry trends and adopt a prudent approach to improve profitability in the coming year[11]. - The company faced significant industry risks due to competition from rivals with more resources and established customer relationships, potentially leading to downward price pressure and reduced profit margins[29]. - The company plans to maintain a cautious approach in daily operations while closely monitoring market conditions for potential opportunities post-COVID-19[18]. Corporate Governance - The company emphasizes the importance of good corporate governance to maximize shareholder value and has adopted the applicable code provisions of the Corporate Governance Code[69]. - The board consists of 6 members, including 3 executive directors and 3 independent non-executive directors, ensuring a balanced composition for effective independent judgment[71]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member selection[73]. - All independent non-executive directors have confirmed their independence according to the relevant listing rules, ensuring compliance with the requirement that independent directors must constitute at least one-third of the board[74]. - The board is responsible for overall management and has delegated daily operational management to the executive team led by the CEO[78]. - The company provides appropriate insurance for all directors to cover their responsibilities[81]. - Directors receive internal training on applicable laws and regulations, with costs borne by the company[82]. - The board has not established a corporate governance committee, but it undertakes corporate governance functions, including policy review and compliance monitoring[80]. - The company has a policy for the appointment and re-election of directors, ensuring that one-third of the directors retire at each annual general meeting[77]. - The company emphasizes the importance of board diversity to enhance the quality and effectiveness of the board[73]. - The independent non-executive directors contribute expertise and independent judgment through active participation in board meetings and committees[74]. - The board held five meetings and one annual general meeting during the review year, with all board members attending 100% of the meetings[85]. - The Audit Committee conducted two meetings, reviewing the annual performance for the fiscal year 2021 and the interim report for the six months ending September 30, 2021[90]. - The Compensation Committee also held two meetings, evaluating the compensation structure for directors and senior management based on their responsibilities and the company's performance[97]. - The Nomination Committee met twice, reviewing the board's diversity policy and overseeing its implementation[100]. - The company has adopted a nomination policy outlining the procedures for selecting candidates for the board[101]. - The Audit Committee consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management[88]. - The Compensation Committee ensures that no individual participates in determining their own compensation[94]. - The company provided sufficient resources for each committee to fulfill its responsibilities and seek independent professional advice when necessary[87]. - The board and the Audit Committee reported no disagreements during the review year[93]. - The company has established three committees: Audit, Compensation, and Nomination, to enhance governance and oversight[87]. Environmental, Social, and Governance (ESG) Practices - The company has conducted a comprehensive internal materiality assessment to identify and evaluate environmental, social, and governance issues that are of concern to stakeholders[123]. - Emissions and resource utilization are considered the most significant issues impacting stakeholders and the company[123]. - The company strictly complies with relevant environmental laws and regulations, with no known violations regarding the use of natural resources or emissions[127]. - The governance structure for environmental, social, and governance matters includes the board of directors, a sustainable development team, and third-party consultants[120]. - The company emphasizes the importance of communication with stakeholders to understand their expectations and requirements[124]. - Key stakeholders include shareholders, government and regulatory bodies, customers, employees, communities, and media[124]. - The company is committed to sustainable business practices while ensuring financial returns and social responsibility[118]. - The sustainable development team reports directly to the board of directors on the implementation of environmental, social, and governance principles[120]. - Direct greenhouse gas emissions (Scope 1) decreased to 6,815 kg CO2 equivalent, with a reduction in emission intensity to 29.35 kg per million revenue compared to 9,762 kg and 35.09 kg per million revenue in the previous year[131]. - Indirect greenhouse gas emissions (Scope 2) were recorded at 10,298 kg CO2 equivalent, with an emission intensity of 44.35 kg per million revenue, down from 22,015 kg and 79.13 kg per million revenue in the previous year[131]. - Total greenhouse gas emissions amounted to 17,113 kg CO2 equivalent, with a significant reduction in emission intensity to 73.70 kg per million revenue from 31,777 kg and 114.22 kg per million revenue in the previous year[131]. - Total energy consumption was 46,175 kWh, with an energy intensity of 198.86 kWh per million revenue, down from 72,334 kWh and 260.95 kWh per million revenue in the previous year[135]. - The company used 2,562 liters of unleaded gasoline, resulting in an intensity of 11.03 liters per million revenue, compared to 3,605 liters and 12.96 liters per million revenue in the previous year[135]. - The company purchased 21,346 kWh of electricity, with an intensity of 91.93 kWh per million revenue, down from 37,397 kWh and 134.42 kWh per million revenue in the previous year[135]. - The company aims to maintain resource usage and pollutant emission density at stable levels compared to the previous year, focusing on reducing energy and resource consumption[130]. - The company has implemented measures to reduce waste generation and disposal, including reusing construction tools and guiding employees on proper waste disposal[130]. - The company emphasizes the importance of monitoring subcontractors' compliance with environmental regulations on construction sites[130]. - The company continues to seek optimal methods to reduce its environmental footprint while balancing business development and environmental protection[130]. Employee and Workplace Practices - The total employee turnover rate for the group significantly decreased compared to previous years, with male turnover at 19% (down from 23%) and female turnover at 7% (down from 88%) in 2022[140]. - The average training hours per employee in 2022 were 0.75 hours for both male and female employees, with 21% of male employees and 50% of female employees receiving training[145]. - The group recorded only 1 work-related injury in 2022, resulting in 0 lost workdays, consistent with the previous year[146]. - The total number of suppliers decreased from 92 in 2021 to 54 in 2022, with a notable drop in suppliers from Hong Kong from 89 to 52[150]. - The group implemented attractive compensation packages and equal promotion opportunities to retain senior management and frontline employees[140]. - The employee composition is diverse, with ages ranging from under 30 to 60, although there is a higher number of male employees due to industry interest[141]. - The group has established safety policies and training programs to ensure a safe working environment, particularly during the COVID-19 pandemic[146]. - The group has not received any complaints regarding unequal employment or treatment, reflecting its commitment to equal opportunities[141]. - The group emphasizes the importance of risk awareness education and maintains high safety standards in the office environment[146]. - The group regularly reviews and updates its list of approved suppliers to ensure quality and compliance with safety standards[148]. Shareholder and Stakeholder Relations - The company has recorded approximately HKD 82.5 million in distributable reserves as of March 31, 2022[164]. - The board of directors decided not to recommend a final dividend for the year under review, consistent with the previous fiscal year[165]. - The company aims to reduce reliance on major clients by taking on more projects from other customers, focusing on profitable and large-scale projects[175]. - The company has established stable relationships with suppliers and subcontractors to effectively meet customer demands[176]. - There were no recorded incidents of bribery, extortion, corruption, fraud, or money laundering during the review year[156]. - The company emphasizes high standards of corporate governance and compliance with anti-corruption regulations[155]. - The company encourages employee participation in volunteer activities and contributions to charitable organizations, despite not engaging in corporate community activities during the COVID-19 pandemic[157]. - The company has not recorded any serious violations of environmental laws that would significantly impact its business operations[171]. - The company has implemented internal guidelines to minimize resource consumption and promote recycling in its daily operations[171]. - The company will suspend share transfer registration from August 23, 2022, to August 26, 2022, to facilitate attendance at the annual general meeting[178]. - The board of directors includes three executive directors and three independent non-executive directors, with specific terms for rotation and re-election[180]. - No directors or major shareholders have disclosed any interests in competing businesses during the review period[182]. - The company has arranged appropriate liability insurance for directors and senior management against legal claims arising from corporate activities[186]. - As of March 31, 2022, the chairman holds 360,000,000 shares, representing 75% of the company's issued share capital[194]. - The company has established a remuneration committee to review the compensation policies for all directors and senior management[191]. - There were no significant contracts involving the company or its subsidiaries where directors had direct or indirect interests during the review period[187]. - The company has confirmed that all independent non-executive directors are independent as per the listing rules[180]. - The company has not entered into any management contracts for the execution of its business during the review period[189]. - The board of directors has received annual independence confirmations from all independent non-executive directors[184]. - Kairong Holdings Limited holds a substantial 75% stake in the company, representing 360,000,000 shares[199]. - The beneficial ownership of Kairong Holdings is distributed among three executives: 50% by Mr. Wen Haiyuan, 30% by Ms. Wu Yuanzhen, and 20% by Mr. He Zhikang[199]. - No other individuals, excluding directors or senior executives, hold any significant interests or short positions in the company's shares as of March 31, 2022[200].

Financial Performance - For the six months ended September 30, 2021, the group's revenue decreased by approximately HKD 38.6 million or 26.7% to about HKD 105.7 million, compared to HKD 144.3 million for the same period in 2020[15] - The group achieved a gross profit of approximately HKD 4.9 million, a significant improvement of 120.3% from a gross loss of HKD 24.1 million in the same period last year[16] - The gross profit margin for the six months ended September 30, 2021, was approximately 4.6%, compared to a gross loss margin of 16.7% for the same period in 2020[16] - Revenue for the six months ended September 30, 2021, was HKD 105,714,000, a decrease of 26.9% compared to HKD 144,341,000 for the same period in 2020[40] - Loss attributable to equity holders for the period was HKD 1,296,000, significantly improved from a loss of HKD 26,552,000 in the same period last year[40] - Basic and diluted loss per share was HKD 0.27, compared to HKD 5.53 for the same period in 2020[40] - The net loss for the six months ended September 30, 2021, was approximately HKD 1.3 million, a significant decrease of 95.1% from approximately HKD 26.6 million in the same period of 2020[21] Revenue and Market Conditions - The decrease in revenue was primarily attributed to a reduction in the number of large projects in the market during the reporting period[15] - The overall business atmosphere has shifted significantly due to the pandemic, affecting operational dynamics in the renovation market[13] - There is an expectation of a future increase in the number of pending renovation and refurbishment projects, which may lead to improved business opportunities[13] Operating Expenses and Costs - Administrative and other operating expenses for the six months ended September 30, 2021, were approximately HKD 5.4 million, a decrease of 21.7% from approximately HKD 6.9 million in the same period of 2020[18] - Financial costs decreased by approximately HKD 0.2 million or 22.2% to about HKD 0.7 million for the six months ended September 30, 2021, compared to approximately HKD 0.9 million for the same period in 2020[19] - Total employee costs for the six months ended September 30, 2021, were approximately HKD 9.2 million, a decrease from approximately HKD 14.9 million for the same period in 2020[31] - Employee costs for the six months ended September 30, 2021, were HKD 8,800,000, a decrease of 38.5% from HKD 14,263,000 in 2020[68] Cash Flow and Financial Position - As of September 30, 2021, the total cash and cash equivalents amounted to approximately HKD 17.2 million, down from approximately HKD 26.6 million as of March 31, 2021, due to a net cash outflow of approximately HKD 9.4 million from operating and financing activities[22] - The company reported a net cash outflow from operating activities of HKD 9,770,000 for the six months ended September 30, 2021, compared to a cash inflow of HKD 4,580,000 in the previous year[50] - Cash and bank balances decreased to HKD 14,109,000 from HKD 23,548,000 at the end of March 2021[42] - The cash and bank balances decreased to HKD 14,109,000 as of September 30, 2021, down from HKD 23,548,000 as of March 31, 2021, representing a decline of 40.3%[94] Assets and Liabilities - Total assets less current liabilities amounted to HKD 134,958,000, a slight decrease from HKD 136,707,000 as of March 31, 2021[42] - The total liabilities for trade and other payables were HKD 17,219,000 as of September 30, 2021, compared to HKD 26,191,000 as of March 31, 2021, reflecting a decrease of 34.2%[97] - The debt-to-equity ratio increased from approximately 35.3% as of March 31, 2021, to approximately 36.5% as of September 30, 2021, primarily due to an increase in bank borrowings[22] Corporate Governance and Shareholder Information - The board resolved not to declare any interim dividend for the six months ended September 30, 2021, consistent with the same period in 2020[32] - Kairong Holdings Limited holds 75% of the issued share capital of the company, with ownership distributed among its directors: Mr. Wen Haiyuan (50%), Ms. Wu Yanzhen (30%), and Mr. He Zhikang (20%)[125] - The company has maintained sufficient public float as required by the listing rules as of September 30, 2021[131] - The company has complied with all provisions of the corporate governance code during the reporting period[133] Audit and Management - The audit committee, consisting of independent non-executive directors, reviewed and approved the unaudited interim financial statements for the six months ending September 30, 2021[136] - The board expressed gratitude to the management team, employees, shareholders, investors, and business partners for their support and contributions[137]

Financial Performance - The total revenue for the fiscal year ended March 31, 2021, was approximately HKD 278.2 million, a decrease of about 33.8% compared to the previous fiscal year[9]. - The loss attributable to equity holders for the fiscal year was approximately HKD 32.5 million, primarily due to unexpected additional costs from project delays caused by the COVID-19 pandemic[9]. - The company's revenue decreased by approximately HKD 142.1 million or 33.8% to about HKD 278.2 million for the fiscal year 2021, compared to HKD 420.3 million in fiscal year 2020[15]. - The gross loss for the company was approximately HKD 28.1 million, a decrease of about HKD 39.5 million from a gross profit of HKD 11.4 million in fiscal year 2020[20]. - The company's net loss attributable to equity holders increased by approximately HKD 24.5 million to about HKD 32.5 million, compared to HKD 8.0 million in fiscal year 2020[26]. - The company's cash and bank balances totaled approximately HKD 26.6 million as of March 31, 2021, down from HKD 28.3 million in fiscal year 2020[27]. - The debt-to-equity ratio increased from approximately 29.3% to about 35.3% due to the net loss incurred during the fiscal year[27]. Market Conditions - The actual GDP growth for Hong Kong in the first quarter of 2021 was 7.8%, marking the highest growth rate in a decade and ending six consecutive quarters of decline[9]. - The construction industry in Hong Kong is expected to benefit from a series of promising infrastructure projects driven by government investment and demand for residential and commercial properties[9]. - The overall economic situation in Hong Kong showed signs of recovery starting from the second half of 2020, which is expected to stabilize the construction industry[11]. - The government plans to invest over HKD 100 billion annually in public construction projects, which is expected to support the recovery of the renovation market[18]. Competition and Strategy - The company anticipates continued intense competition in the renovation engineering market, which may persist in the future[11]. - The company plans to enhance its competitiveness by securing more projects and improving cost efficiency in the upcoming year[11]. - The company aims to capture favorable business opportunities and enhance competitiveness in the renovation industry as the market stabilizes[18]. - The company aims to remain vigilant regarding operational performance by taking on more projects and enhancing cost-effectiveness[11]. Operational Challenges - The rising prices of raw materials and the aging labor force in the industry are expected to continue impacting the company in the next year[11]. - The Hong Kong Construction Academy is expected to alleviate the aging labor force issue by offering new full-time and part-time construction courses starting from the 2021/22 academic year[11]. - The company faces significant industry risks due to competition from established firms with more resources and better client relationships, which could lead to downward pricing pressure and affect profit margins[30]. - Compliance risks are present as the company must adhere to various legal regulations and government policies, which could increase costs and impact financial performance if not managed properly[31]. - The company relies on subcontractors for timely project delivery, and any failure in their performance could adversely affect service quality and project completion timelines[32]. - The company’s revenue is primarily derived from non-recurring projects, and there is no guarantee of securing new business due to the impact of COVID-19 on client invitations for bids[33]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules[69]. - The board of directors confirmed compliance with the standard code of conduct for securities trading during the review period[70]. - The company is committed to maintaining good corporate governance to protect shareholder interests and ensure accountability[69]. - The independent non-executive directors are responsible for providing independent judgment on the group's strategy and performance[63]. - The company has established a remuneration committee and an audit committee to oversee management[63]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced composition for effective independent judgment[71]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member selection[73]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) issues, particularly in relation to pollution and resource use from its renovation business[120]. - A comprehensive internal materiality assessment was conducted to identify and prioritize ESG issues impacting the company and its stakeholders[120]. - The company has maintained compliance with all relevant environmental laws and regulations during the review period[126]. - The company has implemented internal guidelines to minimize resource consumption and promote environmental protection[164]. - The company aims to balance business achievements with energy efficiency to further reduce emissions in the future[125]. Employee and Labor Relations - The total employee turnover rate for the year was approximately 36%[136]. - The company employed 73 employees at the beginning of the year, which decreased to 55 by year-end[132]. - The number of new hires during the year was 5, while 23 employees resigned[132]. - The employee distribution by gender showed 39 males and 16 females as of March 31, 2021[132]. - The company recorded 1 work-related injury during the year, with no fatalities reported[140]. - The average training hours per employee were 1.6 for males and 1.5 for females[142]. Shareholder and Financial Policies - The company did not declare any annual dividends for the review year, consistent with the previous fiscal year[46]. - The board of directors decided not to recommend a final dividend for the year under review, consistent with the previous fiscal year[158]. - The company has a shareholder communication policy to ensure timely and fair information dissemination to shareholders and investors[115]. - The annual general meeting for 2021 is scheduled for August 27, 2021, with a notice to be sent to shareholders at least 20 business days prior[115].

Financial Performance - For the six months ended September 30, 2020, the group's revenue decreased by approximately HKD 83.8 million or 36.7% to approximately HKD 144.3 million, compared to HKD 228.1 million for the same period in 2019[9]. - The group recorded a gross loss of approximately HKD 24.1 million for the six months ended September 30, 2020, a decrease of approximately HKD 37.6 million or 278.5% from a gross profit of approximately HKD 13.5 million for the same period in 2019[12]. - The company recorded a net loss of approximately HKD 26.6 million for the six months ended September 30, 2020, compared to a net profit of approximately HKD 3.7 million for the same period in 2019[17]. - Basic and diluted loss per share was HKD (5.53), compared to earnings of HKD 0.78 per share in the prior year[39]. - The company's pre-tax loss for the six months ended September 30, 2020, was HKD 26,552,000, compared to a profit of HKD 3,742,000 for the same period in 2019[83]. Revenue and Income - Revenue for the six months ended September 30, 2020, was HKD 144,341,000, a decrease of 36.8% compared to HKD 228,059,000 for the same period in 2019[39]. - Other income for the six months ended September 30, 2020, was approximately HKD 5.4 million, primarily from government subsidies, compared to a loss of approximately HKD 34,000 for the same period in 2019[13]. - The company recognized HKD 10,000,000 in rental concessions related to COVID-19 as other income during the reporting period[61]. - The group recognized financial support of approximately HKD 5,313,000 from the Hong Kong government under the "Employment Support Scheme" as part of COVID-19 relief measures[72]. Expenses and Costs - Administrative and other operating expenses decreased by 11.5% to approximately HKD 6.9 million for the six months ended September 30, 2020, down from HKD 7.8 million for the same period in 2019[14]. - Total financial costs for the six months ended September 30, 2020, were HKD 907,000, a decrease from HKD 1,072,000 in the same period of 2019[73]. - The total employee costs for the six months ended September 30, 2020, amounted to approximately HKD 14.9 million, a decrease from HKD 22.9 million for the same period in 2019[30]. - The overall construction costs increased due to project delays caused by the COVID-19 pandemic, leading to additional operational costs[12]. Cash Flow and Financial Position - As of September 30, 2020, the company's cash and cash equivalents totaled approximately HKD 31.5 million, an increase from approximately HKD 28.3 million as of March 31, 2020, due to a net cash inflow of approximately HKD 3.2 million from operating, investing, and financing activities[18]. - The net increase in cash and cash equivalents was HKD 3,138,000, compared to a net increase of HKD 15,203,000 in the previous year[50]. - Cash and cash equivalents at the end of the period were HKD 28,405,000, down from HKD 65,675,000 at the end of the same period in 2019[50]. - The company's debt-to-equity ratio increased from approximately 29.3% as of March 31, 2020, to approximately 34.4% as of September 30, 2020, primarily due to an increase in bank borrowings[18]. Operational Overview - The construction industry in Hong Kong continues to face challenges due to the economic downturn and the impact of the COVID-19 pandemic[6]. - The group is closely monitoring market conditions and is prepared to respond actively to any changes[10]. - The board remains confident in maintaining the group's competitiveness and has a positive outlook for the future, despite the challenging operating environment[10]. - The group will implement appropriate measures, such as cost control, to improve financial performance in response to the ongoing market conditions[10]. Corporate Governance and Compliance - The audit committee, consisting of independent non-executive directors, reviewed and approved the unaudited condensed consolidated interim financial statements for the six months ending September 30, 2020[143]. - The company confirmed compliance with all provisions of the corporate governance code during the reporting period[140]. - There were no conflicts of interest reported by directors or major shareholders in any business that competes with the group during the six months ending September 30, 2020[139]. Shareholder Information - The company holds 75% equity interest in the issued share capital, with 360,000,000 shares held by the controlling entity[127]. - The company has a significant shareholder, Kairong Holdings Limited, which holds 75% of the issued share capital, with Mr. Wen Haiyuan owning 50%, Ms. Wu Yanzhen 30%, and Mr. He Zhikang 20% of that entity[132][133]. - The group did not declare or propose any interim dividends for the six months ended September 30, 2020[81].