Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a 15% growth year-over-year[12] - For the fiscal year ending March 31, 2020, the company reported a profit attributable to owners of HKD 12.2 million, a decrease of 24.2% from HKD 16.1 million in 2019[20] - The group recorded a foreign exchange loss of HKD 2.4 million, contributing to a net loss of approximately HKD 0.2 million in FY2020[101] - The group's attributable profit decreased by approximately 24.2% from about HKD 16.1 million in FY2019 to about HKD 12.2 million in FY2020[113] User Growth and Market Expansion - User data showed a 20% increase in active users, reaching 500,000 by the end of the fiscal year[12] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[12] - User data showed a 15% increase in active users, reaching 2 million by the end of the fiscal year[41] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share within the next two years[41] Future Projections - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[12] - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming to reach $625 million[41] Product Development and Innovation - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on innovative technology solutions[12] - New product launches are expected to contribute an additional $100 million in revenue, with a focus on innovative technology solutions[41] - Research and development investments increased by 30%, totaling HKD 150 million, to drive innovation[12] - Research and development expenditures increased by 10%, totaling $50 million, to support new technology initiatives[41] Cost Management and Efficiency - The gross profit margin improved to 35%, up from 30% in the previous year, indicating better cost management[12] - The company aims to reduce operational costs by 15% through process optimization initiatives[12] - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 5% in the upcoming year[41] - Direct costs increased by approximately 24.1% from about HKD 121.4 million in FY2019 to about HKD 150.6 million in FY2020, primarily due to rising labor and subcontracting costs[96] Market Challenges - The decline in profit was primarily due to intense market competition and rising construction costs[20] - The COVID-19 pandemic significantly impacted the local economy and the Hong Kong construction industry, leading to a slowdown in business growth and project sizes[81] - The company anticipates ongoing challenges due to the unpredictable nature of the COVID-19 pandemic and its financial implications[81] Employee and Administrative Matters - Total employee compensation and related costs amounted to approximately HKD 77.8 million for the year ending March 31, 2020[178] - The company has a total of 383 employees as of March 31, 2020[178] - The board of directors' remuneration was temporarily adjusted due to the impact of the COVID-19 pandemic, with the new salary levels for directors being HKD 930,000 for Mr. Li Peixin and Ms. Liu Lijing, HKD 504,000 for Mr. Li Jiahao, and HKD 630,000 for Mr. Peng Ming[182] Financial Position and Cash Flow - As of March 31, 2020, the total cash and cash equivalents amounted to approximately HKD 60.6 million, an increase from HKD 55.0 million in 2019[114] - The total assets were approximately HKD 333.3 million, up from HKD 286.3 million in 2019[114] - The total interest-bearing debt increased to approximately HKD 64.4 million from HKD 30.0 million in 2019, resulting in a debt-to-equity ratio of approximately 25.9%, compared to 12.3% in 2019[114] - The net cash outflow from operating activities was HKD 10.9 million, primarily due to increases in trade receivables and other receivables[115] Shareholder and Management Information - Major shareholders include HY Steel, holding 570,000,000 shares, representing 74.26% of the company[199] - Well Link Holdings Limited and its associated entities hold 414,504,000 shares, accounting for 54% of the company[199] - The company has adopted a share option scheme as a reward for eligible individuals, details of which are provided in the report[178]

Revenue Performance - The group's overall revenue decreased from approximately HKD 98.0 million to approximately HKD 96.3 million, a decline of about 1.8%[13] - Revenue from steel and metal engineering services increased by approximately HKD 3.9 million or 4.9% to approximately HKD 83.0 million, mainly due to progress on ongoing projects[13] - Revenue from the sale of steel and metal products decreased by approximately HKD 5.7 million or 30.2% to approximately HKD 13.2 million, impacted by reduced demand for standard folding gates[13] - Revenue for the six months ended September 30, 2019, was HKD 96,264,000, a decrease of 1.8% from HKD 98,043,000 in the same period of 2018[73] - Revenue from steel and metal engineering services was HKD 83,028,000, an increase from HKD 79,120,000 year-on-year, reflecting a growth of about 3.6%[109] Profitability and Financial Performance - The gross profit for the reporting period decreased by approximately HKD 10.8 million or 29.5%, with the gross profit margin dropping from 37.4% to 25.9%[8] - Gross profit decreased from approximately HKD 36.7 million to approximately HKD 25.9 million, a reduction of about HKD 10.8 million or approximately 29.5%, with the gross margin dropping from about 37.4% to 26.9%[16] - The company's profit attributable to equity shareholders was HKD 9.9 million, a decrease of HKD 4.2 million compared to HKD 14.1 million in the same period last year[22] - Profit before tax decreased to HKD 11,079,000, a decline of 43.2% compared to HKD 19,436,000 in the previous year[73] - Net profit for the period was HKD 8,994,000, down 36.5% from HKD 14,108,000 in the prior year[73] - Basic earnings per share for the period was HKD 1.3, a decrease from HKD 2.5 in the same period last year[73] - Total comprehensive income for the period was HKD 6,054,000, down 46.3% from HKD 11,283,000 in the previous year[75] Costs and Expenses - The group's direct costs amounted to approximately HKD 70.4 million, an increase of about HKD 9.1 million or approximately 14.8% compared to HKD 61.3 million in the same period last year, primarily due to an increase in the number of site workers[14] - Administrative expenses rose from approximately HKD 7.2 million to approximately HKD 14.5 million, an increase of about HKD 7.3 million or approximately 102.2%[19] - Financing costs increased from approximately HKD 46,000 to approximately HKD 894,000, an increase of about HKD 0.8 million, consistent with increased bank borrowings during the reporting period[18] - The total administrative expenses for the six months ended September 30, 2019, were HKD 14,549,000, compared to HKD 7,196,000 in the same period of 2018, indicating an increase of approximately 102.0%[116] Assets and Liabilities - Non-current assets amounted to HKD 21,549,000 as of September 30, 2019, an increase from HKD 17,218,000 as of March 31, 2019[78] - Current assets included trade receivables of HKD 23,236,000, up from HKD 11,241,000 in the previous period[78] - The company’s total liabilities increased to HKD 1,238,000, compared to HKD 262,000 in the previous period, indicating a significant rise in financial obligations[80] - The company’s reserves increased to HKD 239,286,000 from HKD 236,089,000, reflecting a growth of approximately 1.0% in retained earnings[80] - The company reported a net cash outflow from operating activities of HKD 35,150,000 for the six months ended September 30, 2019, compared to a cash inflow of HKD 12,609,000 in the same period last year[87] Strategic Developments - The group has 55 ongoing or upcoming projects with a total contract value of approximately HKD 375.0 million, compared to 46 projects valued at approximately HKD 404.5 million as of March 31, 2019[8] - The group has secured two construction contracts in China with a total contract value of RMB 300 million, located in Zhejiang and Guangdong provinces[12] - The group has commenced its first real estate development project in Foshan, Guangdong, which is expected to contribute to revenue in the third and fourth quarters of the 2020 fiscal year[12] - The group aims to leverage its expertise in the public housing sector to capitalize on future opportunities in the market[9] - The company completed the acquisition of Fujian Hejin Construction Engineering Co., Ltd. for RMB 2,800,000 (approximately HKD 3,276,000) to obtain licenses for construction services in China[40] Shareholder and Capital Management - The board proposed an interim dividend of HKD 0.003 per share for the six months ended September 30, 2019, down from HKD 0.013 for the same period last year[43] - The company paid dividends totaling HKD 3,838,000 during the period, a decrease from HKD 24,000,000 paid in the same period last year, reflecting a strategic shift in capital allocation[87] - A shareholder loan agreement was established on November 11, 2019, for RMB 30 million with a 12% annual interest rate, to be repaid in 24 months[47] - The company has implemented a share option scheme to incentivize eligible participants and retain talent[51] Market Outlook and Risks - The group is optimistic about the construction industry outlook in Hong Kong due to ongoing housing shortages and government initiatives to expedite public housing supply[9] - The company faces foreign exchange risk due to revenue primarily in HKD and costs in RMB, but no significant impact from currency fluctuations was reported during the period[41] - The company has not adopted any currency hedging policies but will continue to monitor foreign exchange risks[41] Employee and Workforce - As of September 30, 2019, the company employed 308 full-time employees, with 151 located in Hong Kong and the remainder in China[46] - Accrued employee costs were reported at HKD 5,063,000, slightly up from HKD 4,943,000 as of March 31, 2019[144]