Financial Performance - For the six months ended September 30, 2021, the Group recorded unaudited consolidated revenue of HK$380.5 million, representing a growth of 60.4% from HK$237.2 million for the same period in 2020[15]. - The unaudited consolidated profit attributable to owners of the Company for the same period was HK$21.8 million, an increase of 8.7% compared to HK$20.1 million in the prior period[16]. - Basic earnings per share for the six months ended September 30, 2021, remained at HK$0.05, unchanged from the same period in 2020[17]. - The diluted earnings per share for the current period were HK$0.05, while no diluted earnings per share were presented for the corresponding period last year[17]. - The gross profit margin decreased from 15.5% in the prior period to 10.9% in the current period due to lower margin projects and increased material costs[16]. - The total comprehensive income for the period was HK$22,665,000, slightly down from HK$23,321,000 in the same period last year[140]. - Profit for the period was HK$21,800,000, up from HK$20,050,000 in the prior year, reflecting an increase of approximately 8.7%[140]. - Revenue for the six months ended 30 September 2021 was HK$380,544,000, an increase from HK$237,220,000 in the same period of 2020, representing a growth of approximately 60.4%[140]. Revenue Sources - Revenue growth was primarily driven by various residential development projects, including those at Kai Tak and Wong Chuk Hang Station[15]. - Revenue from the design, supply, and installation of curtain walls and aluminium windows for new buildings was HK$320,841,000, up 43.5% from HK$223,603,000 in the previous year[170]. - Revenue from renovation works for existing buildings was HK$55,980,000, significantly increasing from HK$10,044,000 in the prior period[170]. - Revenue from Hong Kong was HK$377,723,000, representing a 60.9% increase from HK$234,731,000 in the previous year[176]. - Revenue from Mainland China was HK$2,821,000, a slight increase from HK$2,489,000 in the same period last year[176]. Market Conditions and Strategies - The Group's performance reflects intense competition in the market, impacting profit margins[16]. - Future strategies may focus on enhancing project profitability and exploring new development opportunities to mitigate margin pressures[16]. - The Company continues to monitor market conditions and adjust its strategies accordingly to sustain growth[16]. - The Group's business development is expected to remain stable due to ongoing housing development and infrastructure investments by the government[30]. Cash and Financial Position - The Group maintains a net cash position and expects stable revenue from outstanding contracts over the next 2 to 3 years[32]. - As of September 30, 2021, the Group's total cash and bank balances were HK$164.6 million, accounting for 30.0% of current assets, down from 46.6% as of March 31, 2021[37][42]. - The Group maintained a net cash position with no bank loans outstanding as of September 30, 2021, and net current assets increased to HK$443.1 million[39][47]. - The current ratio as of September 30, 2021, was 5.17 times, compared to 7.22 times as of March 31, 2021[39][42]. - The Group has access to bank facilities totaling HK$360 million, with HK$125.5 million utilized for performance bonds as of September 30, 2021[38][42]. Shareholder Information - The company has a total of 421,461,630 ordinary shares issued as of September 30, 2021[70]. - Wong Sue Toa, Stewart holds 16,313,054 shares, representing approximately 5.53% of the issued share capital[64]. - Cha Mou Daid, Johnson holds 219,409,017 shares, which is about 52.05% of the issued share capital[64]. - Tai Sai Ho holds 8,590,288 shares, accounting for 2.03% of the issued share capital[64]. - The share option scheme was adopted on August 25, 2020, and is valid for ten years until August 24, 2030[74]. - The purpose of the share option scheme is to reward participants and encourage contributions to enhance the company's value[82]. Corporate Governance - The company has complied with all Code Provisions of the Corporate Governance Code, except for one deviation regarding attendance at the annual general meeting[120]. - The company has adopted the Model Code for securities transactions by directors, with all directors confirming compliance during the reporting period[121]. - The company emphasizes transparency and accountability to all shareholders as part of its corporate governance principles[120]. Dividends and Share Repurchases - The Group declared a first interim dividend of HK1.6 cents per share for the six months ended September 30, 2021, consistent with the previous year[22]. - The second interim dividend declared was HK$2.6 cents per share, totaling HK$11,030,000, compared to HK$8,727,000 for the final dividend of HK$2.0 cents per share in the previous year[187]. - The company repurchased a total of 18,046,000 shares during the six months ended 30 September 2021, with an aggregate consideration of approximately HK$15,235,000[127]. - 17,880,000 of the repurchased shares were cancelled during the period, and the remaining 166,000 shares were cancelled in October 2021[127].

MILLION HOPE INDUSTRIES HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code 股份代號：1897) Annual Report 2020/2021 年報 CONTENTS 目錄 CONTENTS 目錄 | --- | --- | |------------------------------------------------|-------------------------------| | | | | Corporate Information | 公司資料 | | Group Structure | 集團架構 | | Financial Highlights | 財務紀要 | | Chairman's Statement | 主席報告書 | | Operations Review | 業務回顧 | | Financial Review | 財務回顧 | | Corporate Governance Report | 企業管 ...

Financial Performance - The Group's unaudited consolidated revenue for the six months ended September 30, 2020, was HK$237.2 million, a 54.1% increase from HK$153.9 million for the same period in 2019[17]. - The unaudited consolidated profit attributable to owners of the Company was HK$20.1 million, representing a slight decrease of 2.4% compared to HK$20.6 million for the same period in 2019[18]. - The gross profit margin decreased from 21.3% in the prior period to 15.5% in the current period, primarily due to projects with lower gross profit margins recognized[18]. - Revenue growth was mainly driven by projects at execution-peak stage, including residential developments at Lohas Park and a commercial project at Lockhart Road[17]. - For the six months ended September 30, 2020, the Group's unaudited consolidated revenue was HK$237.2 million, an increase of 54.1% compared to HK$153.9 million for the same period in 2019[20]. - The basic earnings per share for the six months ended September 30, 2020, remained unchanged at HK$0.05 compared to the same period in 2019[22]. - The Group's performance reflects ongoing challenges in maintaining profit margins despite significant revenue growth[18]. - Profit before taxation for the six months ended September 30, 2020, was HK$20,050,000, compared to HK$20,572,000 for the same period in 2019, reflecting a decrease of approximately 2.5%[184]. Financial Position - As of September 30, 2020, the total amount of contracts on hand for the Group was HK$1,395.1 million[33]. - The Group's total cash and bank balances were HK$263.5 million as of September 30, 2020, accounting for 54.2% of current assets[43][47]. - The Group's net current assets increased to HK$421.3 million as of September 30, 2020, compared to HK$400.9 million on March 31, 2020[45][48]. - The current ratio as of September 30, 2020, was 7.52 times, down from 8.91 times on March 31, 2020[45][48]. - The Group maintained a net cash position with no bank loans outstanding as of September 30, 2020[45][61]. - The Group's liquidity position is expected to remain healthy in the coming year, with sufficient financial resources for operations and future development[46][48]. - The total equity attributable to owners of the Company was HK$529,476,000, an increase from HK$514,882,000 as of March 31, 2020, representing a growth of approximately 2.3%[139]. Dividends and Share Capital - The Board declared an interim dividend of HK$1.6 cents per share for the six months ended September 30, 2020, up from HK$1.2 cents per share in the previous period[23]. - As of September 30, 2020, the total number of issued shares of the Company was 436,332,630[73]. - The Company has a share option scheme that allows for the issuance of up to 10% of the total shares in issue, which equates to a maximum of 43,633,263 share options[81]. - On October 9, 2020, the Company granted share options for a total of 22,907,000 ordinary shares at an exercise price of HK$0.59 per share[82]. - The remaining share option limit as of the interim report date is 20,726,263 shares, representing approximately 4.75% of the total shares in issue[82]. Economic Environment - The economic activities in Hong Kong have been severely impacted by the COVID-19 pandemic, with a GDP decline of 3.5% in the third quarter of 2020[35]. - The unemployment rate in Hong Kong from August to October 2020 was 6.4%, remaining at a record high over the past 16 years[35]. - The Group received government grants totaling HK$6,456,000 related to COVID-19, with HK$4,297,000 recognized in profit or loss during the interim period[173]. Operational Insights - The Group operates in a single segment focused on the provision of design, supply, and installation of aluminium windows and curtain walls services, with no further segment analysis presented[165]. - The Group's revenue recognition is based on the fair value of amounts received and receivable from contract work that enhances an asset controlled by external customers[158]. - The Group's performance is regularly reviewed by the directors based on internal management reports for result allocation and performance assessment[165]. Assets and Liabilities - The Group's aged analysis of trade debtors showed that HK$39,666,000 was within 30 days, while HK$12,129,000 was overdue by more than 90 days as of September 30, 2020[200]. - Total receivables, including trade debtors, deposits, and other receivables, amounted to HK$124,204,000 as of September 30, 2020, compared to HK$80,611,000 as of March 31, 2020[198]. - The Group's investment properties were valued using the income capitalization method, reflecting the net income potential[193].

Financial Performance - For the year ended March 31, 2020, the Group recorded revenue of HK$299.8 million, a decrease of 20.4% compared to HK$376.6 million for the year ended March 31, 2019[29]. - The decline in revenue was primarily due to delays in the master programmes of certain projects and the suspension of installation works caused by supply chain disruptions from COVID-19 in Mainland China[29]. - The Group's financial highlights indicate a trend of fluctuating revenues over the past years, with a peak of HK$514.9 million in 2019[25]. - The consolidated profit attributable to owners of the Company totaled HK$24.2 million for the year ended March 31, 2020, compared to HK$22.9 million in 2019, reflecting a drop of HK$21.3 million or 46.8% from the previous year's profit of HK$45.5 million[69]. - The basic earnings per share for the year was HK$0.06, a significant drop from HK$1.06 in the previous year, based on a weighted average number of shares of 436,332,630[35]. - The Group's impairment loss for trade debtors and contract assets was HK$1.3 million for the current year, compared to a reversal of impairment loss of HK$3.1 million in the previous year[30]. - The gain on change in fair value of investment properties decreased from HK$3.2 million last year to HK$0.5 million this year[30]. - The Group reported a net cash inflow of HK$15.1 million from operating activities, HK$5.7 million from investing activities, and a net cash outflow of HK$27.2 million from financing activities for the year ended March 31, 2020[80][84]. Future Outlook - Future outlook and guidance were not detailed in the provided content, indicating a need for further information on recovery strategies and market conditions[29]. - The Company may need to focus on enhancing supply chain resilience and project management to mitigate future disruptions[29]. - Market expansion strategies were not discussed, highlighting a possible gap in the current strategic approach[29]. - The construction industry in Hong Kong is expected to grow due to the undersupply of residential properties, which may benefit the aluminium windows and curtain wall works industry[43]. Corporate Governance - The Board is responsible for the formulation of business strategies and policies, monitoring business performance, and overseeing corporate governance functions[109]. - The Company has arranged appropriate directors' and officers' liabilities insurance coverage for the year ended March 31, 2020[114]. - The Board Diversity Policy was adopted on February 22, 2019, focusing on diversity in gender, age, cultural and educational background, ethnicity, professional experience, skills, knowledge, and length of service[130]. - The Nomination Committee will review the Board Diversity Policy at least annually to ensure its effectiveness[134]. - The Company aims for a balanced development through increasing diversity at the Board level, which is essential for achieving strategic objectives[133]. - The Board's composition is characterized by diversity in cultural and educational background, professional experience, skills, knowledge, and length of service as of March 31, 2020[134]. - The Policy of Nomination of Directors ensures that all nominations are fair and transparent, facilitating a balance of skills and experience appropriate to the Company's business requirements[140]. - The ultimate responsibility for the selection and appointment of directors rests with the entire Board, despite the delegation of authority to the Nomination Committee[140]. - The Company’s independent non-executive directors are free from any business or other relationships with the Company, ensuring their impartiality[127]. - The Chairman and Joint Managing Directors are responsible for the overall strategic planning and development of the Group, ensuring effective Board operations[156]. Employee and Remuneration Policies - The Group employs 235 full-time employees, with 116 located in Mainland China[99]. - The Group offers competitive remuneration packages, including discretionary bonuses and cash allowances based on position[99]. - The Group conducts an annual review on salary increases, discretionary bonuses, and promotions based on employee performance and Group profitability[99]. - The Group emphasizes attracting and retaining skilled personnel to ensure its continuing success[99]. Risk Management and Internal Controls - The Group's risk management and internal control systems were reviewed for effectiveness during Board meetings[178]. - The Audit Committee assisted the Board in evaluating and maintaining effective risk management and internal control systems[187]. - The Audit Committee reviewed the Group's operating, financial, and accounting policies and practices[187]. - The Audit Committee reported to the Board on the adequacy and effectiveness of the Group's financial reporting system[187]. Board Meetings and Training - The Board held four regular meetings during the year ended March 31, 2020, focusing on approving the Group's budget, interim and final results, and reviewing risk management effectiveness[178]. - All directors participated in continuous professional development, receiving training in areas such as corporate governance, accounting, and financial management[169]. - The company secretary completed no less than 15 hours of relevant professional training during the year ended March 31, 2020[176]. - Notices for regular Board meetings were provided at least 14 days in advance, ensuring directors could attend in person[179]. - Board papers were distributed at least 3 days prior to meetings, allowing directors to make informed decisions[180].

Financial Performance - The Group's unaudited consolidated revenue for the six months ended 30 September 2019 was HK$153.9 million, representing an 11.2% decrease compared to HK$173.4 million for the same period in 2018[16]. - The unaudited consolidated profit attributable to owners of the Company for the six months ended 30 September 2019 was HK$20.6 million, reflecting a significant increase of 472.2% from HK$3.6 million in the prior year[16]. - The increase in profit was primarily due to the absence of one-off listing expenses of HK$14.1 million incurred in the previous period and an increase in other income from interest generated from short-term deposits[16]. - Basic earnings per share for the six months ended 30 September 2019 was HK$0.05, based on a weighted average of 436,332,630 shares in issue after the Listing[18]. - The decline in revenue was mainly attributed to delays in the master programmes of certain projects[16]. - The Group's performance reflects a recovery in profitability despite the revenue decline, indicating effective cost management strategies[16]. - Gross profit increased to HK$32,763,000, up 6.3% from HK$30,826,000 year-on-year[77]. - Profit before taxation rose significantly to HK$24,013,000, compared to HK$5,132,000 in the previous year, marking a 367.5% increase[77]. - Profit for the period was HK$20,572,000, a substantial increase from HK$3,644,000 in the same period last year, representing a growth of 465.5%[77]. - Total comprehensive income for the period was HK$17,054,000, compared to a loss of HK$2,087,000 in the previous year[77]. Dividends - The Board declared an interim dividend of HK1.2 cents per share for the six months ended 30 September 2019, compared to no dividend in the same period of 2018[19]. - A final dividend of HK2.0 cents per share was paid, totaling HK$8,727,000, compared to no dividends paid in the same period last year[160]. - An interim dividend of HK1.2 cents per share, amounting to HK$5,236,000, has been declared for the current period, also compared to no dividends in the previous year[161]. Revenue Breakdown - Revenue for the six months ended 30 September 2019 was HK$153,915,000, a decrease of 11.2% from HK$173,396,000 in the same period of 2018[77]. - Revenue from design, supply, and installation for curtain walls, aluminium windows, doors, and other products for new buildings was HK$88,556,000, up 36.5% from HK$64,891,000 in 2018[144]. - Revenue from renovation works for existing buildings increased significantly to HK$3,373,000 from HK$892,000, representing a growth of 277.5%[144]. - The Group's revenue from Hong Kong was HK$145,516,000, down from HK$167,248,000 in 2018, while revenue from Mainland China was HK$8,399,000, up from HK$1,619,000[151]. Assets and Liabilities - As of September 30, 2019, total assets amounted to HK$459,854,000, a slight decrease from HK$494,993,000 as of March 31, 2019[79]. - Total liabilities decreased to HK$59,090,000 from HK$61,674,000, reflecting a reduction in financial obligations[81]. - The Group's net current assets were HK$402.0 million, with a current ratio of 7.95 times as of September 30, 2019[40]. - The Group had outstanding performance bonds amounting to HK$78.8 million related to construction contracts as of September 30, 2019[45]. Cash Flow and Liquidity - The Group's liquidity position is expected to remain healthy in the coming year, with sufficient financial resources to meet obligations and operational needs[40]. - The Group's cash flow generation capability is sound, primarily financed through internally generated cash flows[40]. - The company reported net cash from operating activities of HK$28,356,000 for the six months ended September 30, 2019, compared to HK$27,083,000 for the same period in 2018[88]. - Cash and cash equivalents at the end of the period were HK$314,592,000, up from HK$304,648,000 at the beginning of the period[88]. Share Capital and Ownership - As of September 30, 2019, the total number of issued shares of the company was 436,332,630 shares[54]. - CCM Trust (Cayman) Limited holds 195,080,814 shares, representing approximately 44.70% of the issued share capital[59]. - Mingly Corporation holds 41,697,318 shares, accounting for about 9.55% of the issued share capital[59]. - The interests of shareholders are disclosed under the SFO, with specific percentages calculated based on the total issued shares[61]. Market Outlook and Strategy - The company is cautiously optimistic about the aluminium window and curtain wall business in the coming years despite economic challenges[33]. - Various government infrastructure projects and housing policies are expected to create business opportunities for the construction industry in Hong Kong[31]. - The company plans to enhance its competitive edge by consolidating its design, project, procurement, and manufacturing teams[37]. - The company aims to search for innovative materials to improve energy efficiency in residential and commercial buildings[37]. - The company is focusing on the growing market for tower façade and curtain wall works, which have become a distinct sub-sector of the construction industry[32]. - The company recognizes increasing costs and competition as challenges that may impact profit margins[37]. Accounting Policies - The Group's financial statements for the six months ended 30 September 2019 have been prepared in accordance with HKFRS 34 and applicable disclosure requirements[1]. - The Group's accounting policies and methods of computation remain consistent with those presented in the annual financial statements for the year ended 31 March 2019[1]. - The Group applies the short-term lease recognition exemption for leases of car parking spaces with a term of 12 months or less[99]. - The Group's financial reporting is governed by the applicable disclosure requirements of the Stock Exchange of Hong Kong[1].

Financial Performance - For the financial year ended 31 March 2019, the Group recorded revenue of HK$376.6 million, representing a 10.6% decrease compared to HK$421.1 million for the previous year[21]. - The consolidated profit attributable to owners of the Company totaled HK$22.9 million, a 54.3% decrease from HK$50.1 million in the prior year[22]. - One-off expenses of HK$22.6 million were incurred for the Company's listing on the Main Board of The Stock Exchange of Hong Kong during the year[22]. - The basic earnings per share for the year was HK$1.06 based on the weighted average number of 21,517,869 shares in issue after the listing[22]. - Overall gross profit margins also decreased, contributing to the drop in consolidated profit[22]. - The decline in revenue was primarily due to delays in the master programmes of certain projects[21]. - The total amount of contracts on hand as of March 31, 2019, was HK$552.4 million[65]. - The Group had a net cash outflow of HK$29.7 million in operating activities during the year[87]. - The total cash and bank balances amounted to HK$304.6 million, accounting for 61.5% of current assets, compared to 19.9% in the previous year[86]. Shareholders' Equity - Shareholders' funds increased significantly to HK$508.8 million from HK$128.7 million in the previous year[17]. - As of March 31, 2019, the net asset value of the Group was HK$508.8 million, an increase of 295.3% from HK$128.7 million in the previous year[26]. - The increase in net asset value was primarily due to proceeds of HK$43.6 million from the issuance of new shares and a capital contribution of HK$318.6 million from Hanison Construction Holdings Limited[26]. - The net asset value per share as of March 31, 2019, was HK$1.17, based on 436,332,630 shares issued[26]. - The shareholders' funds increased to HK$508.8 million, including reserves of HK$465.2 million, an increase of HK$380.1 million from the previous year[94]. Business Outlook - The Group is optimistic about future business opportunities due to the anticipated increase in construction projects related to new properties[45]. - The Hong Kong Government is expected to complete approximately 100,400 public housing units in the next five years and about 93,000 units of private residential property in the next three to four years[44]. - The construction activities in Hong Kong have intensified due to strong demand for residential, office, and commercial buildings, providing opportunities for the Group[37]. - The company expects steady and considerable growth in the curtain wall business due to high demand for lightweight and sustainable solutions[68]. - Increasing demand for energy-efficient curtain walls is anticipated to drive market growth in the coming years[69]. Corporate Governance - The Company complied with all provisions of the Corporate Governance Code from the Listing Date to March 31, 2019[118]. - The Board of the Company comprises a diverse group of directors, including 3 independent non-executive directors, representing at least one-third of the Board[125]. - The Company has received written annual confirmations of independence from all independent non-executive directors, ensuring compliance with Listing Rules[130]. - The Board Diversity Policy was adopted on February 22, 2019, focusing on diversity in gender, age, cultural background, professional experience, and skills[131]. - The Nomination Committee will review the Board Diversity Policy annually to ensure its effectiveness and monitor its implementation[133]. Risk Management - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss, with annual reviews conducted to assess their effectiveness[179]. - An external consultant was engaged to assess the internal controls of the Group and identify weaknesses, with no significant risk issues identified during the review[186]. - The Risk Management Committee is chaired by the Joint Managing Directors and includes various senior staff members to monitor and manage risks[179]. - The Company intends to outsource its internal audit function in the future, following the assessment of internal controls by an external consultant[180]. Remuneration and Employment - The Group employed 249 full-time employees as of March 31, 2019, with 134 of them based in Mainland China[113]. - The Group offers competitive remuneration packages, including discretionary bonuses and cash allowances, to attract and retain skilled personnel[112]. - The Remuneration Committee assessed key economic indicators, market trends, headcount, and staff costs to determine remuneration packages for executive directors and senior management[169]. - The Remuneration Committee ensured that no director participated in deciding their own remuneration, adhering to the Listing Rules[167]. Board Meetings and Committees - The company held one regular board meeting from the Listing Date to March 31, 2019, primarily to approve the Group's forecast and budget, adopt the dividend policy, and the bonus scheme[159]. - The Audit Committee was established on February 22, 2019, comprising three independent non-executive directors, with Mr. Yip Kai Yung as the Chairman[160]. - The Nomination Committee was established on February 22, 2019, and held one meeting during the period from the Listing Date to March 31, 2019, focusing on reviewing the structure, size, and composition of the Board[163]. - The company expects to hold at least four regular board meetings per year, with notices provided to all directors at least 14 days before the meetings[159].