Financial Performance - The total revenue for Million Hope Industries Holdings Limited for the year ended March 31, 2024, was HKD 603,500,000, a slight decrease of 0.6% compared to HKD 607,200,000 for the year ended March 31, 2023[3] - The gross profit increased to HKD 55,500,000, up HKD 17,700,000 from HKD 37,800,000 last year, resulting in a gross margin improvement from 6.2% to 9.2%[3] - The company's attributable profit decreased to HKD 11,500,000, down 5.0% from HKD 12,100,000, primarily due to increased losses from joint ventures and higher administrative expenses[4] - Basic and diluted earnings per share remained unchanged at HKD 0.03 compared to the previous year[5] - The total comprehensive income for the year was HKD 7,004,000, compared to HKD 5,855,000 in the previous year[9] - The company's total revenue for the year 2024 was HKD 603,549,000, a slight decrease from HKD 607,198,000 in 2023, representing a decline of approximately 0.11%[20] - Revenue from new building design, supply, and installation of aluminum windows and curtain walls was HKD 536,708,000, up from HKD 453,984,000 in 2023, indicating an increase of about 18.2%[21] - Revenue from maintenance and other services decreased to HKD 12,333,000 from HKD 22,771,000, reflecting a decline of approximately 45.9%[21] - The group's revenue for the fiscal year ending March 31, 2024, was HKD 603,500,000, a decrease from HKD 607,200,000 in the previous year, representing a decline of approximately 1.15%[49] Assets and Liabilities - As of March 31, 2024, the net asset value of the group was HKD 526,500,000, a decrease of 1.0% from HKD 532,000,000 the previous year[5] - Non-current assets totaled HKD 219,231,000 in 2024, down from HKD 231,925,000 in 2023, a decrease of about 5.5%[10] - Current assets decreased significantly to HKD 42,541,000 from HKD 61,290,000, representing a decline of approximately 30.5%[10] - The company's total liabilities decreased to HKD 74,949,000 in 2024 from HKD 73,395,000 in 2023, showing a slight increase of about 2.1%[10] - The company's cash and cash equivalents increased to HKD 193,326,000 from HKD 77,564,000, a significant increase of approximately 148.5%[10] - Non-current liabilities decreased to HKD 46,530,000 from HKD 53,518,000, a decline of about 13%[10] - The company's total assets decreased to HKD 573,059,000 from HKD 585,813,000, a decrease of approximately 2.2%[10] Dividends and Shareholder Returns - The board declared a second interim dividend of HKD 0.017 per share, consistent with the previous year, bringing the total dividend for the year to HKD 0.025 per share[6] - The basic and diluted earnings per share for the year were HKD 27.65 and HKD 27.65 respectively, down from HKD 28.94 in 2023, indicating a decrease of about 4.46%[49] - The company declared an interim dividend of HKD 0.8 per share for the first half of 2024, compared to HKD 0.8 per share in 2023[9] - The second interim dividend proposed for the fiscal year ending March 31, 2024, is HKD 1.7 per share, unchanged from the previous year[9] Operational Highlights - The company is primarily engaged in the design, supply, and installation of aluminum windows and curtain walls, focusing on long-term contracts in Hong Kong and mainland China[18] - Revenue from external customers in Hong Kong and Mainland China for 2024 was HKD 603,549, compared to HKD 607,198 in 2023, reflecting a slight decrease of 0.1%[29] - The total contract liabilities at the end of the reporting period were HKD 785,033, down from HKD 944,555 in 2023, indicating a decrease of 16.9%[26] - Major customer A contributed HKD 327,723 in revenue for 2024, significantly up from HKD 158,121 in 2023, representing an increase of 106.8%[30] - The company reported a decrease in contract assets related to defect liability period, which were reclassified to receivables upon expiration[25] - The expected revenue recognition for contracts not yet fulfilled is HKD 471,696 within one year and HKD 313,337 between one to two years[26] - The group reported a share of joint venture losses of HKD 6.8 million for the year ended March 31, 2024, primarily due to impairment losses on properties under development[63] Employee and Administrative Costs - The company experienced an increase in administrative expenses by HKD 2,600,000, mainly due to rising employee costs[4] - The total employee costs for 2024 amounted to HKD 99,731, up from HKD 94,605 in 2023, which is an increase of 5.4%[35] - The aging analysis of accounts payable shows that payables within 30 days decreased to HKD 3,310,000 from HKD 5,834,000 in 2023, a decline of approximately 43.3%[43] Market and Economic Conditions - The group faced challenges in the past year due to external factors such as geopolitical tensions and rising interest rates, impacting the market investment atmosphere and real estate development pace[71] - The group anticipates that the economic downturn may weaken housing purchasing power, potentially slowing down property development[75] - The Hong Kong government plans to construct at least 80,000 private housing units over the next five years, which is expected to stimulate market demand[73] - The Hong Kong government has secured sufficient land to meet the supply target of 338,000 public housing units over the next ten years[73] Future Outlook and Strategies - The company is committed to providing quality products and services to both public and private sector clients, establishing a solid foundation for future growth[76] - The group aims to continue bidding for both private and public projects to capture more opportunities in the market[73] - The company is considering strategic acquisitions to enhance its market position, with a budget of $300 million for potential deals[86] - Market expansion plans include entering three new international markets by the end of the year[86] - A new marketing strategy has been implemented, aiming to increase brand awareness by 30% in the next six months[86] Technology and Innovation - The company is investing in new technology development, allocating $50 million towards R&D initiatives[86] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[86] Customer and User Engagement - User data showed an increase in active users, reaching 10 million, which is a 15% increase compared to the previous quarter[86] - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the last quarter[86]

Financial Performance - The Group recorded unaudited consolidated revenue of HK$325.1 million for the six months ended 30 September 2023, representing an increment of 6.9% compared to HK$304.1 million for the same period last year [19]. - The unaudited consolidated profit attributable to owners of the Company was HK$4.5 million, an increase of 136.8% from HK$1.9 million in the previous corresponding period, driven by increased revenue and a gross profit margin rise from 4.4% to 9.7% [20]. - Basic and diluted earnings per share for the six months ended 30 September 2023 were HK1.09 cents, reflecting an increase of 118.0% compared to HK0.5 cents for the same period last year [21]. - Revenue for the six months ended September 30, 2023, increased to HK$325,086,000, up from HK$304,061,000 in the same period last year, representing a growth of 6.7% [137]. - Gross profit for the period was HK$31,488,000, significantly higher than HK$13,470,000 in the previous year, indicating a substantial increase of 133.4% [137]. - Profit for the period reached HK$4,507,000, compared to HK$1,891,000 in the prior year, marking an increase of 138.5% [137]. Dividends - The Board has resolved to pay a first interim dividend of HK0.8 cents per share for the six months ended 30 September 2023, consistent with the previous year's dividend [24]. - A second interim dividend of HK1.7 cents per share was paid, totaling HK$7,071,000, down from HK$8,792,000 (HK2.1 cents per share) in the previous year [183]. - The company declared an interim dividend of HK$0.008 per share for the first half of 2023, totaling HK$3,300,000, compared to HK$3,349,000 for the same period in 2022 [6]. Projects and Revenue Sources - Major projects completed during the period included a residential development at Lot No. 1068 in Kwun Tong, involving the design, supply, and installation of aluminium windows and glass walls [25]. - Revenue for the current period was mainly contributed by residential development projects at Lung Cheung Road, Tuen Mun Siu Hong, and Pak Shek Kok [19]. - Revenue from design, supply, and installation for curtain walls, aluminium windows, doors, and other products for new buildings was HK$275,884,000, up 28.2% from HK$215,170,000 in 2022 [168]. - Revenue from repairing, maintenance, and other services increased to HK$19,680,000, a rise of 117.9% from HK$9,049,000 in the previous year [168]. - Revenue from Hong Kong was HK$324,559,000, representing a 9.9% increase from HK$295,327,000 in 2022, while revenue from Mainland China dropped significantly to HK$527,000 from HK$8,734,000 [173]. Financial Position and Assets - As of September 30, 2023, the total amount of contracts on hand for the Group was HK$673.1 million [33]. - The total cash and bank balances of the Group amounted to HK$110.6 million as of September 30, 2023, representing 25.8% of current assets [47]. - The Group's net current assets were HK$356.0 million as of September 30, 2023, with a current ratio of 5.9 times [49]. - Current assets increased to HK$429,202,000 from HK$427,283,000, showing a marginal growth of 0.4% [138]. - Total assets less current liabilities as of September 30, 2023, were HK$581,803,000, slightly down from HK$585,813,000 as of March 31, 2023 [138]. Cash Flow and Liquidity - Net cash generated from operating activities for the six months ended September 30, 2023, was HK$46,061,000, compared to a cash outflow of HK$43,547,000 in the same period of 2022 [145]. - Cash and cash equivalents at the end of the period rose to HK$110,580,000, compared to HK$27,830,000 at the end of the same period in 2022, indicating improved liquidity [146]. - The net decrease in cash and cash equivalents for the period was HK$33,661,000, a significant improvement from a decrease of HK$55,634,000 in the prior year [146]. - The company did not raise new bank loans during the period, contrasting with the previous year when HK$10,000,000 was raised [145]. Share Capital and Options - As of September 30, 2023, the total number of issued shares of the Company is 412,467,630 [89]. - The share option scheme adopted on August 25, 2020, is valid for ten years and aims to reward participants contributing to the Group [90]. - As of September 30, 2023, a total of 5,987,000 share options are outstanding under the scheme [93]. - The maximum number of share options that may be issued under the Scheme is capped at 10% of the total issued shares, which translates to a limit of 41,246,763 shares [95]. Governance and Compliance - The unaudited condensed consolidated financial statements for the six months ended 30 September 2023 have been reviewed by the Audit Committee [131]. - The Company complied with all Code Provisions of the Corporate Governance Code during the reporting period, except for one deviation regarding attendance at the annual general meeting [112]. - The Company has adopted the Model Code for securities transactions by directors and confirmed compliance by all directors during the reporting period [113]. Employee and Operational Information - The group had 260 full-time employees as of 30 September 2023, with 114 employees located in Mainland China [129]. - The Company has provided competitive remuneration packages, including discretionary bonuses and share options, to its employees [129].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失 承 擔 任 何 責 任。 1 Million Hope Industries Holdings Limited 美亨實業控股有限公 司 （於開曼群島註冊成立的有限公司 ） （股份代號 ：1897） 截至2023年9月30日止六個月 中期業績公告 中期業績 截 至2023年9月3 0日 止 六 個 月，美 亨 實 業 控 股 有 限 公 司（「本公司」）及 其 附 屬 公 司（統 稱「本集團」）錄 得 未 經 審 核 綜 合 收 益325,100,000港 元，較 截 至2022年9月3 0日止六個月之收益304,100,000港元增加6.9%。未 經 審 核綜合收益增加主要歸因於過往期間工作計劃因 COVID-19疫情有所延 遲，而 本 期 間 承 接 若 干 主 要 項 目 工 作 計 劃 進 度 正 常。本 期 間 收 益 主 要 由 九龍龍翔道新九龍內地段第 ...

Financial Performance - The Group's revenue decreased by 15.4% from HK$717.7 million in the year ended March 31, 2022, to HK$607.2 million in the year ended March 31, 2023[24]. - Consolidated profit attributable to owners of the Company for the year was HK$12.1 million, a decrease of 50.8% compared to HK$24.6 million last year[25]. - The gross profit margin fell from 7.6% last year to 6.2% this year due to additional costs incurred to expedite installation processes at construction sites affected by COVID-19[25]. - Basic and diluted earnings per share were HK$0.03, representing a 50.0% decrease from HK$0.06 last year[26]. - The net asset value of the Group as of March 31, 2023, was HK$532.0 million, a decrease of 1.4% from HK$539.3 million as of March 31, 2022[27]. - Net asset value per share as of March 31, 2023, was HK$1.27, down from HK$1.29 the previous year[27]. - The total dividend declared for the year is HK$2.5 cents per share, down from HK$3.7 cents per share in the previous year[31]. - The decrease in revenue was primarily attributed to delays in work programmes of certain projects[24]. - The financial results reflect the challenges faced due to the COVID-19 pandemic and its impact on project timelines[25]. Contracts and Projects - Major revenue-generating projects included residential developments at Tuen Mun Siu Hong, Tai Po Kau, Kai Tak, and Lung Cheung Road[24]. - The Group's outstanding contracts amounted to HK$944.6 million as of March 31, 2023, with stable revenue expected in the coming year[44]. - The total outstanding amount of contracts on hand as of March 31, 2023, was HK$944.6 million[62]. - The Group's unfinished contracts have decreased due to fierce competition in the industry, prompting a conservative bidding strategy[34]. Economic Outlook - Hong Kong's real GDP decreased by 3.5% in 2022 due to the COVID-19 pandemic and external economic conditions[32]. - The economic outlook for Hong Kong is expected to improve as the pandemic eases, boosting private consumption and labor market conditions[39]. Operational Strategy - The Group aims to control costs and monitor project quality to maintain customer satisfaction and secure new project contracts[41]. - Construction material prices have stabilized, contributing to improved business operations in the second half of the financial year[33]. - The Group will continue to focus on providing quality products and services to establish a solid foundation for future development[44]. Liquidity and Financial Position - The Group had total cash and bank balances of HK$77.6 million as of March 31, 2023, accounting for 18.2% of current assets[76]. - The Group had access to banking facilities totaling HK$430.0 million, with HK$145.6 million utilized for performance bonds as of March 31, 2023[75]. - The Group's net current assets as of March 31, 2023, were HK$353.9 million, down from HK$365.1 million as of March 31, 2022, with a current ratio of 5.8 times[80]. - The Group's liquidity position is expected to remain healthy in the coming year, with sufficient financial resources to meet obligations and future development requirements[81]. Corporate Governance - The Group has maintained compliance with all provisions of the Corporate Governance Code during the year ended March 31, 2023, except for one deviation regarding attendance at the annual general meeting[117]. - The Board of Directors met the requirement of having at least three independent non-executive directors, representing at least one-third of the Board[131]. - The Group emphasizes the importance of good corporate governance practices to protect shareholder interests[116]. - The Board composition includes a balanced mix of executive and non-executive directors to ensure independence in decision-making[126]. - The Company has received written annual confirmation of independence from each independent non-executive director, confirming their compliance with independence requirements[136]. - The Nomination Committee was established on February 22, 2019, to oversee the appointment and re-election of directors[150]. - The Company is committed to providing equal opportunities in employment, training, and career development for its employees[149]. Board and Management Practices - The Chairman and Managing Director roles are separated, with the Chairman focusing on overall strategic planning and the Managing Director handling day-to-day operations[163][165]. - All directors participated in continuous professional development during the year ended March 31, 2023, to enhance their knowledge and skills[173]. - The Company ensures that directors are kept informed of regulatory developments and changes relevant to their roles[169]. - The Company held four regular Board meetings during the year ended March 31, 2023, focusing on approving the Group's forecast and budget, interim and final results, and reviewing risk management and internal control systems[188]. - The Audit Committee conducted three meetings during the year ended March 31, 2023, reviewing the Company's annual results and making recommendations regarding the external auditor's appointment and remuneration[194]. Audit and Risk Management - The Audit Committee is responsible for reviewing the Group's operating, financial, and accounting policies and practices[195]. - The Company is committed to maintaining effective risk management and internal control systems, as reported to the board[196]. - The Audit Committee reviews the external auditor's performance annually, considering factors such as independence, audit quality, and effectiveness of the audit process[197]. - The Company has adopted the Model Code as a guideline for securities transactions by directors and employees[176].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 Million Hope Industries Holdings Limited 美 亨 實 業 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） 1897 （股份代號： ） 2023 3 31 截至 年 月 日止年度 全年業績公告 業績概要 2023 3 31 截至 年 月 日止年度，美亨實業控股有限公司（「 本公司」）及其附 607,200,000 2022 3 屬公司（統稱「本集團」）錄得收益 港元，較截至 年 月 31 717,700,000 15.4% 日止年度錄得的 港元減少 。收益減少乃主要由於若 干項目的工作計劃延誤所致。本年度收益主要由屯門兆康屯門市地段第 483 230 6563 號、大埔滘大埔市地段第 號、啟德新九龍內地段第 號以及九 6579 11 龍龍翔道新九龍內地段第 號的住宅發展項目以及九龍牛頭角道 號 之綜合發展項目貢獻。 ...

Financial Performance - For the six months ended September 30, 2022, the Group recorded unaudited consolidated revenue of HK$304.1 million, a decrease of 20.1% from HK$380.5 million for the same period in 2021[13]. - The unaudited consolidated profit attributable to owners of the Company was HK$1.9 million, representing a decrease of 91.3% compared to HK$21.8 million for the last corresponding period[14]. - Basic and diluted earnings per share for the six months ended September 30, 2022, were HK0.5 cents, a decrease of 90.2% from HK5.1 cents for the corresponding period last year[15]. - Gross profit for the period was HK$13,470, down 67.6% from HK$41,480 in the previous year[150]. - Total comprehensive income for the period was a loss of HK$6,594, compared to a gain of HK$22,665 in the same period last year[150]. - Profit for the period was HK$1,891, a significant decline of 91.3% from HK$21,800 in the prior year[150]. Revenue Breakdown - Revenue for the current period was mainly contributed by residential development projects at N.K.I.L 6563 Kai Tak, TMTL 483 Tuen Mun Siu Hong, and TPTL 230 Tai Po Kau[13]. - Revenue from design, supply, and installation of curtain walls, aluminium windows, doors, and other products for new buildings was HK$215,170,000, down 33.0% from HK$320,841,000 in the previous year[188]. - Revenue from design, supply, and installation of aluminium windows, doors, and other products for new buildings increased to HK$79,842,000, up 42.7% from HK$55,980,000 in the previous year[188]. - Revenue from repairing, maintenance, and other services was HK$9,049,000, an increase of 143.5% compared to HK$3,723,000 in the same period last year[188]. - Revenue from Hong Kong decreased to HK$295,327,000 in 2022 from HK$377,723,000 in 2021, representing a decline of approximately 21.8%[197]. - Revenue from Mainland China increased to HK$8,734,000 in 2022 from HK$2,821,000 in 2021, showing a growth of approximately 3.1 times[197]. Dividend and Shareholder Returns - The Board has resolved to pay a first interim dividend of HK0.8 cents per share for the six months ended September 30, 2022, down from HK1.6 cents per share for the same period in 2021[20]. - Dividends paid during the period were HK$8,792,000, down from HK$11,030,000 in the previous year, reflecting a reduction in shareholder returns[164]. Financial Position and Liquidity - The Group's total cash and bank balances amounted to HK$27.8 million as of September 30, 2022, down from HK$86.6 million as of March 31, 2022[37]. - The Group's net current assets were HK$356.1 million as of September 30, 2022, compared to HK$365.1 million as of March 31, 2022[39]. - The current ratio was 5.6 times as of September 30, 2022, down from 6.2 times as of March 31, 2022[39]. - The Group is currently in a net cash position with no outstanding bank loans as of September 30, 2022[39]. - The Group's liquidity position is expected to remain healthy in the coming year, with sufficient financial resources to meet obligations and future development requirements[40]. Impact of COVID-19 - The financial results reflect the impact of the COVID-19 pandemic on construction schedules and associated costs[14]. - The pandemic has caused project delays and increased costs, impacting the Group's gross profit margin and success rate in winning tenders[33]. - The Group received government grants of HK$3,824,000 during the six months ended September 30, 2022, related to COVID-19 subsidies, while no grants were received in the same period of 2021[200]. Corporate Governance and Compliance - The Company has complied with all Code Provisions of the Corporate Governance Code, except for the absence of certain non-executive directors at the 2022 annual general meeting due to other engagements[127]. - The Company emphasizes a quality Board and transparency to all shareholders as part of its corporate governance principles[127]. - The Company has adopted the Model Code for directors' securities transactions and all directors confirmed compliance during the six months ended September 30, 2022[128]. Employee and Operational Information - The Group had 274 full-time employees as of September 30, 2022, with 125 employees located in Mainland China[139]. - The Company did not purchase, sell, or redeem any of its listed securities during the six months ended September 30, 2022[138]. Future Outlook - The global economic outlook is deteriorating, with high inflation and interest rate hikes potentially leading to a recession, which may affect Hong Kong's economic recovery[28]. - The government plans to prioritize land and housing development, which may benefit the Group as a housing construction supplier[32].

Financial Performance - The Group's revenue for the year ended March 31, 2022, amounted to HK$717.7 million, representing an increase of 33.9% compared to HK$536.0 million for the previous year[28]. - The consolidated profit attributable to owners of the Company for the year ended March 31, 2022, was HK$24.6 million, a decrease of 36.8% from HK$38.9 million last year[29]. - The gross profit margin decreased from 14.0% last year to 7.6% this year due to additional costs incurred to expedite installation processes affected by COVID-19[29]. - Basic and diluted earnings per share for the year were HK$0.06, representing a decrease of 33.3% compared to HK$0.09 last year[33]. - The net asset value of the Group as of March 31, 2022, was HK$539.3 million, a decrease of 1.2% from HK$545.9 million the previous year[35]. - The total dividend declared for the year was HK$3.7 cents per share, down from HK$4.2 cents per share in the previous year[37]. - The total cash and bank balances amounted to HK$86.6 million, representing 19.9% of current assets, down from HK$236.0 million or 46.6% of current assets a year earlier[82]. - The Group experienced a net cash outflow of HK$43.1 million in operating activities, HK$72.5 million in investing activities, and HK$34.0 million in financing activities for the year[85]. - The current ratio as of March 31, 2022, was 6.2 times, compared to 7.2 times as of March 31, 2021[85]. Revenue Drivers - Revenue growth was primarily driven by residential development projects at various locations including Kai Tak and Lohas Park[28]. - Major completed projects included residential developments at N.K.I.L. 6564, 6563, and 6565 in Kai Tak, contributing to revenue growth[72]. - The Group has sufficient outstanding contracts amounting to HK$1,078.6 million as of March 31, 2022, expected to support revenue over the next two years[50]. - The total outstanding amount of contracts on hand as of March 31, 2022, was HK$1,078.6 million[69]. Government and Economic Impact - The decrease in subsidies from the HKSAR Government's Employment Support Scheme amounted to HK$6.4 million during the current year[29]. - The HKSAR Government revised down the real GDP growth forecast for 2022 to 1%-2% from the previous 2%-3.5% due to various uncertainties[44]. - The impact of the COVID-19 pandemic has significantly affected construction progress and productivity, with the unemployment rate rising to 5.4%[41]. - The construction market is expected to remain prosperous, with the Group's market share anticipated to increase in the future[46]. Corporate Governance - The Company complied with all provisions of the Corporate Governance Code during the reporting period, with one noted deviation regarding attendance at the annual general meeting[126]. - The Board composition includes at least three independent non-executive directors, representing at least one-third of the Board, ensuring independence in decision making[141]. - All independent non-executive directors have confirmed their independence in accordance with Rule 3.13 of the Listing Rules, and the Company has assessed their independence[148]. - The Company adopted a Board Diversity Policy on 22 February 2019, considering various aspects such as gender, age, and professional experience to achieve diversity[152]. - The Nomination Committee has reviewed the board diversity as of 31 March 2022 and found it characterized by diversity in cultural and educational background, professional experience, skills, knowledge, and length of service[153]. - The Company has established a Nomination Committee to handle matters related to the appointment and re-election of directors, with a policy adopted on 22 February 2019[154]. - The Board is composed of a balanced mix of executive and non-executive directors, ensuring effective leadership and decision-making[138]. Director Development and Responsibilities - Directors are encouraged to participate in continuous professional development to keep their knowledge and skills updated[185]. - The Company ensures that directors receive timely and reliable information for effective decision-making[180]. - Newly appointed directors receive necessary induction and information to understand the Company's operations and their responsibilities under the Listing Rules[186]. - The training areas included updates on corporate governance, laws, rules, regulations, accounting, financial management, and other professional skills[194]. - The company secretary, Mr. Kwok Wing Fai, plays a crucial role in ensuring good information flow within the Board and compliance with corporate governance developments[200]. Joint Ventures and Investments - The Group entered into a joint venture agreement with a capital commitment of HK$344.8 million, with each party contributing HK$172.4 million[99]. - The acquisition of a property located at No. 55 Nga Tsin Wai Road, Kowloon, was completed for a purchase price of HK$195.0 million in January 2022[99]. - The Group had access to banking facilities totaling HK$430.0 million, of which HK$156.1 million was utilized for performance bonds as of March 31, 2022[79]. - The Group's proportionate share of the bank loan balance for the joint venture was HK$64.1 million as of March 31, 2022[119]. - The Group did not have any plans for material investments or capital assets in the coming year, aside from the commitment to provide shareholder loans[109].

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].

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section outlines the company's fundamental details, including board and committee structures, key personnel changes, and essential corporate contacts - Mr. Wong Sue Toa, Stewart was re-designated from Vice Chairman to Chairman of the Board on **November 23, 2020**[5](index=5&type=chunk) - The company appointed Deloitte Touche Tohmatsu as its auditor[6](index=6&type=chunk) [Group Structure](index=6&type=section&id=Group%20Structure) [Group Structure](index=6&type=section&id=Group%20Structure) Mei Heung Industrial Holdings Limited, the top-tier holding company, maintains 100% control over its Hong Kong and mainland China operating entities via BVI subsidiaries - Mei Heung Industrial Holdings Limited, through its BVI subsidiaries, **100% owns** all operating entities, including Mei Heung Industrial Limited and Mei Hing New Building Materials (Huizhou) Co., Ltd[11](index=11&type=chunk) [Financial Highlights](index=7&type=section&id=Financial%20Highlights) [Financial Highlights](index=7&type=section&id=Financial%20Highlights) This section presents a five-year overview of key financial metrics, highlighting record revenue and significant profit growth in FY2021, alongside steady shareholder equity expansion Financial Highlights (HKD million) | Metric (HKD million) | 2021 | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 536.0 | 299.8 | 376.6 | 421.1 | 501.9 | | **Profit Attributable to Owners of the Company** | 38.9 | 24.2 | 22.9 | 50.1 | 55.3 | | **Shareholders' Equity** | 545.9 | 514.9 | 508.8 | 128.7 | 75.4 | [Chairman's Statement](index=8&type=section&id=Chairman%27s%20Statement) [FY2021 Results](index=8&type=section&id=RESULTS%20FOR%20THE%20FINANCIAL%20YEAR%20ENDED%2031%20MARCH%202021) The Group achieved substantial revenue growth of 78.8% to HK$536 million and a 60.7% increase in profit attributable to owners, despite a gross margin decline to 14.0% due to competition and rising costs FY2021 Financial Performance (HKD million, unless otherwise stated) | Financial Metric | FY2021 | FY2020 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 536.0 | 299.8 | +78.8% | | **Profit Attributable to Owners** | 38.9 | 24.2 | +60.7% | | **Gross Profit Margin** | 14.0% | 16.4% | -2.4pp | | **Basic EPS** | 0.09 | 0.06 | +50.0% | | **Net Asset Value per Share** | 1.23 | 1.18 | +4.2% | - Revenue growth was primarily driven by residential projects at Lohas Park Phase 7 and 10, Kai Tak New Kowloon Inland Lot Nos. 6565 and 6564, and the commercial development at 75-85 Lockhart Road[22](index=22&type=chunk) - Profit growth also benefited from increased other income due to subsidies received under the Hong Kong SAR Government's "Employment Support Scheme"[23](index=23&type=chunk) [Dividend](index=9&type=section&id=DIVIDEND) The Board declared a total annual dividend of HK$0.042 per share, an increase from the prior year, and plans to distribute two interim dividends annually for more even payments Dividend Per Share (HK cents) | Dividend Item | FY2021 (per share) | FY2020 (per share) | | :--- | :--- | :--- | | **First Interim Dividend** | 1.6 | 1.2 | | **Second Interim/Final Dividend** | 2.6 | 2.0 | | **Total Annual Dividend** | **4.2** | **3.2** | - Starting from FY2021, the company plans to distribute **two interim dividends**, with the second interim dividend replacing the final dividend, to allow shareholders to receive dividends earlier[33](index=33&type=chunk) [Business Review](index=10&type=section&id=BUSINESS%20REVIEW) Despite initial COVID-19 disruptions, the Group's operations recovered, achieving strong revenue and gross profit growth of 78.8% and 52.0% respectively, as construction progress resumed - In the early stages of the pandemic, semi-finished product manufacturing and transportation processes were delayed or even halted, significantly impacting the Group's operations[37](index=37&type=chunk)[38](index=38&type=chunk) - As the pandemic came under control, the Group's business resumed normal operations, catching up on delayed construction progress, which led to substantial increases in revenue and gross profit[37](index=37&type=chunk)[38](index=38&type=chunk) [Prospects](index=11&type=section&id=PROSPECTS) Strong Hong Kong property market demand offers positive prospects, but rising raw material costs and RMB appreciation pose margin pressures, while HK$1,284.5 million in uncompleted contracts provide future revenue stability - As of March 31, 2021, the Group's uncompleted contract value amounted to **HK$1,284.5 million**, expected to provide robust support for revenue in the next **2 to 3 years**[47](index=47&type=chunk)[49](index=49&type=chunk) - The Group faces cost pressures from rapidly rising raw material prices and RMB appreciation, which may impact project gross profit margins[43](index=43&type=chunk)[45](index=45&type=chunk) - Despite cost challenges, strong local property market demand and developers' willingness to enhance building value provide a positive outlook for industry development[42](index=42&type=chunk)[44](index=44&type=chunk) [Operations Review](index=13&type=section&id=Operations%20Review) [Principal Business and Projects](index=13&type=section&id=Operations%20Review) The Group, a Hong Kong-based subcontractor with over 20 years of experience, specializes in facade and curtain wall systems, completing and securing numerous projects, holding HK$1,284.5 million in uncompleted contracts, and achieving ISO certifications - The Group's principal business is providing **one-stop design, supply, and installation services** for curtain walls and aluminum windows and doors in Hong Kong, primarily serving main contractors and property developers[52](index=52&type=chunk)[53](index=53&type=chunk) - Key projects completed during the year include Lohas Park Phase 6 residential project and the commercial development project at Lockhart Road, Wan Chai[55](index=55&type=chunk)[58](index=58&type=chunk) - Major projects undertaken during the year include Lohas Park Phase 7 and 10, and several residential development projects in Kai Tak[60](index=60&type=chunk)[63](index=63&type=chunk) - New projects awarded during the year include residential and integrated development projects in Kai Tak, Kennedy Town, Tuen Mun, etc. As of March 31, 2021, the total uncompleted contract value on hand was **HK$1,284.5 million**[67](index=67&type=chunk) - The Group obtained **ISO 9001:2015** Quality Management System and **ISO 14001** Environmental Management System certifications, and was awarded the **"Quality Contractor of the Year 2021"** certificate for window works in a residential project in Ma On Shan, Sha Tin, New Territories[67](index=67&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) [Summary of Results](index=18&type=section&id=Summary%20of%20Results) The Group reported strong FY2021 financial performance with revenue up 78.8% to HK$536 million and profit attributable to owners up 60.7% to HK$38.9 million, despite a gross margin decline to 14.0% Summary of Financial Results (HKD million, unless otherwise stated) | Financial Metric | FY2021 | FY2020 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 536.0 | 299.8 | +78.8% | | **Profit Attributable to Owners** | 38.9 | 24.2 | +60.7% | | **Gross Profit Margin** | 14.0% | 16.4% | -2.4pp | | **Basic EPS** | 0.09 | 0.06 | +50.0% | | **Net Asset Value** | 545.9 | 514.9 | +6.0% | [Group Liquidity and Financial Resources](index=19&type=section&id=Group%20Liquidity%20and%20Financial%20Resources) The Group maintains a robust financial position with HK$236 million in cash, HK$345 million in available bank facilities, no bank loans, and a strong current ratio of 7.22 times Group Liquidity and Financial Resources (HKD million, unless otherwise stated) | Liquidity Metric | As of March 31, 2021 | As of March 31, 2020 | | :--- | :--- | :--- | | **Cash and Bank Balances** | 236.0 | 297.7 | | **Total Bank Facilities** | 345.0 | - | | **Utilized Bank Facilities (Performance Bonds)** | 107.2 | - | | **Bank Loans** | 0 | 0 | | **Net Current Assets** | 435.8 | 400.9 | | **Current Ratio** | 7.22 times | 8.91 times | - During the year, operating activities resulted in a **net cash outflow of HK$47.8 million**, primarily due to increases in trade and other receivables, deposits and prepayments, and contract assets[82](index=82&type=chunk) [Capital Structure and Other Financial Information](index=21&type=section&id=Capital%20Structure%20and%20Other%20Financial%20Information) The Group's capital structure is equity-based with no bank loans, shareholders' equity increased to HK$545.9 million, and there were no significant investments, acquisitions, disposals, or asset pledges during the year - The capital structure is entirely composed of equity, with **no bank loans**[89](index=89&type=chunk)[94](index=94&type=chunk) - As of March 31, 2021, outstanding performance bonds amounted to **HK$107.2 million**[104](index=104&type=chunk) - There were **no significant investments, acquisitions, disposals, or asset pledges** during the year[90](index=90&type=chunk)[91](index=91&type=chunk) [Employees and Remuneration Policy](index=22&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICY) The Group values its 253 employees (116 in mainland China), offering competitive remuneration packages and benefits, with annual reviews based on qualifications, experience, performance, and profitability - As of March 31, 2021, the Group had a total of **253 full-time employees**, with **116 in mainland China**[110](index=110&type=chunk) - Remuneration policy is based on employee qualifications, experience, position, and seniority, with annual reviews incorporating individual performance and Group profitability[112](index=112&type=chunk) [Corporate Governance Report](index=23&type=section&id=Corporate%20Governance%20Report) [Compliance with Corporate Governance Code](index=23&type=section&id=COMPLIANCE%20WITH%20CORPORATE%20GOVERNANCE%20CODE) The company generally complied with the Corporate Governance Code for FY2021, with deviations noted for certain non-executive and independent non-executive directors' attendance at the 2020 AGM - The company deviated from code provision A.6.7, as some non-executive and independent non-executive directors were unable to attend the **2020 Annual General Meeting**[116](index=116&type=chunk) - The company deviated from code provision E.1.2, as the former Chairman of the Board and Chairman of the Nomination Committee were unable to attend the **2020 Annual General Meeting**[121](index=121&type=chunk) [Board of Directors](index=24&type=section&id=BOARD%20OF%20DIRECTORS) The Board oversees leadership, monitoring, and strategy, delegating daily operations, ensuring diverse composition, adhering to governance policies, and providing continuous professional development for directors - The Board is responsible for strategic leadership and oversight, with daily operations delegated to the Joint Managing Directors and senior management[123](index=123&type=chunk)[126](index=126&type=chunk) - The Board's composition complies with Listing Rules, including at least **three independent non-executive directors**, comprising at least **one-third of the Board members**[135](index=135&type=chunk) - The company has adopted a **Board Diversity Policy** and a **Director Nomination Policy** to ensure directors possess the necessary skills, experience, and diverse perspectives[142](index=142&type=chunk)[147](index=147&type=chunk) - The roles of the Chairman (Mr. Wong Sue Toa, Stewart) and Joint Managing Directors (Mr. Chu Kin Lun and Mr. Lee Cheuk Hung) are **clearly separated** with distinct responsibilities[171](index=171&type=chunk) [Board and Committee Operations](index=36&type=section&id=BOARD%20AND%20COMMITTEES) The Board held four meetings and is supported by Audit, Nomination, Remuneration, and Investment Committees, each with specific oversight responsibilities, and director attendance records are detailed - The Audit Committee comprises **four independent non-executive directors**, chaired by Mr. Yip Kai Wing, responsible for reviewing financial statements, recommending external auditors, and reviewing risk management and internal control systems[203](index=203&type=chunk) - The Nomination Committee, chaired by Professor Ho Yan Ki, is responsible for reviewing the Board structure, identifying and recommending director candidates, and assessing the independence of independent non-executive directors[212](index=212&type=chunk) - The Remuneration Committee, chaired by Mr. Poon Kan Kwong, is responsible for formulating remuneration policies and making recommendations on the remuneration and share option grants for directors and senior management[221](index=221&type=chunk) - The Investment Committee, chaired by Mr. Wong Sue Toa, Stewart, is responsible for handling the Group's investment decisions[227](index=227&type=chunk) Board and Committee Meeting Attendance | Meeting Type | Number of Meetings | | :--- | :--- | | **Board Meetings** | 4 | | **Audit Committee Meetings** | 3 | | **Nomination Committee Meetings** | 3 | | **Remuneration Committee Meetings** | 4 | | **Investment Committee Meetings** | 2 | [Risk Management and Internal Control](index=45&type=section&id=RISK%20MANAGEMENT%20AND%20INTERNAL%20CONTROL) The Board oversees the Group's risk management and internal control systems, which are reviewed annually by external consultants and deemed effective and adequate - The Board confirms its oversight responsibility for risk management and internal control systems, conducting effectiveness reviews at least annually[236](index=236&type=chunk) - The Group established a Risk Management Committee and engaged external consultants to assist in reviewing system effectiveness, which the Board considers effective and adequate[237](index=237&type=chunk)[244](index=244&type=chunk) [Shareholder Rights and Investor Relations](index=48&type=section&id=SHAREHOLDER%20RIGHTS%20AND%20INVESTOR%20RELATIONS) The company ensures shareholder rights and communication through general meetings, detailing procedures for convening meetings, proposing resolutions, and nominating directors, with additional inquiry channels available - Shareholders holding not less than **one-tenth of the company's paid-up share capital** may request in writing to convene an extraordinary general meeting[265](index=265&type=chunk) - The report clarifies the procedures for shareholders to nominate director candidates, including required documents and submission deadlines[269](index=269&type=chunk)[273](index=273&type=chunk) [Environmental, Social and Governance Report](index=53&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [ESG Governance and Strategy](index=53&type=section&id=ESG%20Governance%20and%20Strategy) The Group is committed to sustainable development, with a Board-supervised ESG governance structure, identifying occupational health and safety, corporate governance, and customer satisfaction as key material issues - The Group has established an **ESG governance structure overseen by the Board**, with a dedicated working group responsible for implementation and reporting[291](index=291&type=chunk) - Through materiality assessment, **occupational health and safety, corporate governance, customer satisfaction, training and development, and equal opportunities** were identified as highly material ESG issues[316](index=316&type=chunk) [A. Environmental Aspect](index=60&type=section&id=A.%20ENVIRONMENTAL) The Group implements ISO 14001, monitors emissions (424.8 tCO2e GHG), reduced energy consumption intensity by 3% through efficiency measures, and decreased non-hazardous waste disposal intensity by promoting "3R" principles Environmental Performance Data | Environmental Performance Indicator | FY2021 | FY2020 | | :--- | :--- | :--- | | **Total GHG Emissions (tCO2e)** | 424.8 | 395.9 | | **GHG Emissions Intensity (tCO2e/employee)** | 1.7 | 1.7 | | **Total Energy Consumption (MWh)** | 916.7 | 876.5 | | **Energy Consumption Intensity (MWh/employee)** | 3.6 | 3.7 | | **Total Water Consumption (m³)** | 7,755 | - | | **Total Non-Hazardous Waste Disposed (tonnes)** | 13.1 | 43.4 | | **Non-Hazardous Waste Disposal Intensity (tonnes/employee)** | 0.1 | 0.2 | - The Group complies with the **ISO 14001** environmental management system and implements internal environmental management policies to ensure compliance[323](index=323&type=chunk)[330](index=330&type=chunk) - The Group installed a **photovoltaic panel system** on the rooftop of its dormitory building in China to utilize renewable energy[377](index=377&type=chunk) [B. Social Aspect](index=72&type=section&id=B.%20SOCIAL) The Group prioritizes employees and social responsibility, offering competitive benefits, ensuring health and safety, providing training, adhering to labor standards, managing supply chains responsibly, and upholding anti-corruption policies Employee Statistics | Employee Data (as of March 31) | 2021 | 2020 | | :--- | :--- | :--- | | **Total Employees** | 253 | 235 | | **By Region** | Hong Kong: 137, Mainland China: 116 | - | | **Overall Turnover Rate (Mainland China)** | 33.6% | 41.4% | | **Overall Turnover Rate (Hong Kong)** | 9.5% | 8.4% | - Health and Safety: There were **no work-related fatalities** during the reporting period, and **2 lost workdays** due to work-related injuries[421](index=421&type=chunk) - Development and Training: By gender, **60% of female employees** and **46% of male employees** received training[436](index=436&type=chunk) - Supply Chain Management: The Group has a total of **458 suppliers or subcontractors**, with approximately half located in Hong Kong and half in mainland China[451](index=451&type=chunk) - Anti-corruption: There were **no concluded corruption litigation cases** during the reporting period. The Group invited the Independent Commission Against Corruption (ICAC) to provide training for new employees[472](index=472&type=chunk)[473](index=473&type=chunk) [Report of the Directors](index=99&type=section&id=Report%20of%20the%20Directors) [Principal Activities and Review](index=99&type=section&id=PRINCIPAL%20ACTIVITIES) The company is an investment holding entity whose subsidiaries primarily design, supply, and install facade and curtain wall systems, with detailed business reviews and risks covered in other sections - The company's principal business involves the **design, supply, and installation of facade and curtain wall systems**[512](index=512&type=chunk) [Share Capital and Reserves](index=100&type=section&id=SHARE%20CAPITAL%20AND%20RESERVES) This section details the company's profit distribution, investment properties, and changes in share capital and reserves, including the declaration of a second interim dividend and HK$295.8 million in distributable reserves - The Board declared a **second interim dividend of HK$0.026 per share** (replacing the final dividend)[521](index=521&type=chunk) - As of March 31, 2021, the company's distributable reserves to shareholders amounted to **HK$295.8 million**[531](index=531&type=chunk) [Share Option Scheme](index=102&type=section&id=SHARE%20OPTION%20SCHEME) The company adopted a new share option scheme on August 25, 2020, granting 22,907,000 options at HK$0.59 per share, with 13,336,000 remaining unexercised by year-end - The company adopted a new share option scheme on **August 25, 2020**, valid until **August 24, 2030**[550](index=550&type=chunk)[573](index=573&type=chunk) Share Option Activity | Share Option Movements (as of March 31, 2021) | Number of Shares | | :--- | :--- | | **Unexercised at Beginning of Year** | 0 | | **Granted During Year** | 22,907,000 | | **Exercised During Year** | (9,309,000) | | **Lapsed During Year** | (262,000) | | **Unexercised at End of Year** | **13,336,000** | - Share options granted during the year had an exercise price of **HK$0.59 per share**, matching the closing price on the day prior to the grant date[556](index=556&type=chunk)[579](index=579&type=chunk) [Purchase, Sale or Redemption of Listed Securities of the Company](index=109&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20LISTED%20SECU RITIES%20OF%20THE%20COMPANY) The company repurchased 8,812,000 shares for approximately HK$7.336 million during the year, which were subsequently cancelled Share Repurchase Summary | Share Repurchase Details (March 2021) | | | :--- | :--- | | **Number of Shares Repurchased** | 8,812,000 shares | | **Highest Price Paid per Share** | 0.86 HKD | | **Lowest Price Paid per Share** | 0.67 HKD | | **Total Consideration Paid (excluding transaction costs)** | Approximately 7,336,000 HKD | [Directors' and Major Shareholders' Interests](index=123&type=section&id=DIRECTORS%27%20INTERESTS%20AND%20SHORT%20POSITIONS) This section details directors' and major shareholders' interests in the company's shares as of March 31, 2021, including significant holdings by Mr. Cha Mou Daid, CCM Trust (Cayman) Limited, and Mr. David Michael Webb - Non-executive Director Mr. Cha Mou Daid, Johnson is deemed to have an interest in **219,409,017 shares**, representing approximately **49.56%** of the issued share capital, primarily through his capacity as a beneficiary of a discretionary trust[649](index=649&type=chunk)[652](index=652&type=chunk) - Major shareholder CCM Trust (Cayman) Limited is deemed to have an interest in **195,104,050 shares**, representing approximately **44.07%** of the issued share capital[664](index=664&type=chunk)[668](index=668&type=chunk) - Mr. David Michael Webb is deemed to have an interest in **26,350,399 shares**, representing approximately **5.95%** of the issued share capital[664](index=664&type=chunk)[674](index=674&type=chunk) [Major Customers and Suppliers](index=128&type=section&id=MAJOR%20CUSTOMERS%20AND%20SUPPLIERS) The Group's customer and supplier base shows concentration, with the top five customers contributing 94.2% of total revenue and the top five suppliers accounting for 42.1% of total purchases in FY2021 - The **top five customers** accounted for **94.2% of the Group's total revenue**, with the largest customer (an independent third party) contributing **45.9%**[696](index=696&type=chunk) - The **top five suppliers** accounted for **42.1% of the Group's total purchases**[696](index=696&type=chunk) [Independent Auditor's Report](index=131&type=section&id=Independent%20Auditor%27s%20Report) [Independent Auditor's Report](index=131&type=section&id=Independent%20Auditor%27s%20Report) Deloitte issued an unqualified opinion on the FY2020/2021 consolidated financial statements, with "Provisions for Rectification Works and Warranty Provisions" identified as a key audit matter due to significant management estimates - Auditor Deloitte issued an **unqualified opinion** on the financial statements, deeming them to present a true and fair view of the Group's financial position[712](index=712&type=chunk) - A key audit matter was **"Provisions for Rectification Works and Warranty Provisions,"** primarily due to the significant amounts and substantial management estimates and judgments involved[720](index=720&type=chunk)[722](index=722&type=chunk) - Auditors addressed this key audit matter by understanding management processes, evaluating methodologies, referencing historical data, and comparing actual expenditures[720](index=720&type=chunk)[722](index=722&type=chunk) [Consolidated Financial Statements](index=139&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=139&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For FY2021, the Group reported HK$536 million in revenue, HK$74.81 million in gross profit, HK$38.94 million in profit for the year, and basic and diluted EPS of HK$0.09 Consolidated Statement of Profit or Loss and Other Comprehensive Income | Profit or Loss Item (HKD thousand) | 2021 | 2020 | | :--- | :--- | :--- | | **Revenue** | 536,009 | 299,794 | | **Gross Profit** | 74,805 | 49,151 | | **Profit Before Tax** | 46,150 | 28,181 | | **Profit for the Year** | 38,940 | 24,240 | | **Total Comprehensive Income for the Year** | 44,674 | 20,027 | | **Basic Earnings Per Share (HKD)** | 0.09 | 0.06 | [Consolidated Statement of Financial Position](index=140&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2021, the Group reported total assets of HK$672.6 million, total liabilities of HK$126.8 million, and shareholders' equity of HK$545.9 million, demonstrating strong short-term solvency Consolidated Statement of Financial Position | Balance Sheet Item (HKD thousand) | As of March 31, 2021 | As of March 31, 2020 | | :--- | :--- | :--- | | **Non-current Assets** | 166,724 | 170,109 | | **Current Assets** | 505,921 | 451,578 | | **Total Assets** | **672,645** | **621,687** | | **Current Liabilities** | 70,114 | 50,703 | | **Non-current Liabilities** | 56,665 | 56,102 | | **Total Liabilities** | **126,779** | **106,805** | | **Total Equity** | **545,866** | **514,882** | [Consolidated Statement of Cash Flows](index=143&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For FY2021, the Group experienced a net cash outflow of HK$47.83 million from operations, a net inflow of HK$2.19 million from investing, and a net outflow of HK$17.79 million from financing, resulting in a HK$63.43 million net decrease in cash Consolidated Statement of Cash Flows | Cash Flow Statement Item (HKD thousand) | 2021 | 2020 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | (47,828) | 15,149 | | **Net Cash from Investing Activities** | 2,190 | 5,681 | | **Net Cash from Financing Activities** | (17,794) | (27,211) | | **Net Decrease in Cash and Cash Equivalents** | (63,432) | (6,381) | | **Cash and Cash Equivalents at Beginning of Year** | 297,691 | 304,648 | | **Cash and Cash Equivalents at End of Year** | 236,019 | 297,691 | [Notes to the Consolidated Financial Statements (Summary)](index=145&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies, judgments, and financial statement items, including revenue disaggregation by contract type, geographical concentration in Hong Kong, and disclosures on related party transactions, share capital, and performance bonds Revenue Disaggregation by Contract Type (HKD thousand) | Contract Type | 2021 | 2020 | | :--- | :--- | :--- | | **Design, supply and installation of curtain walls, aluminum windows and doors for new buildings** | 493,290 | 205,678 | | **Design, supply and installation of aluminum windows and doors for new buildings** | 37,022 | 80,139 | | **Renovation works for existing buildings** | 1,262 | 8,061 | | **Repair and maintenance, etc** | 4,435 | 5,916 | | **Total** | **536,009** | **299,794** | - The vast majority of the Group's revenue is derived from **Hong Kong**, amounting to **HK$531 million** in FY2021[1048](index=1048&type=chunk) - In FY2021, revenue from customers A, B, and C each accounted for **over 10% of total revenue**, with customer A contributing **HK$246 million** and customer B contributing **HK$159 million**[1053](index=1053&type=chunk) - As of March 31, 2021, the Group held outstanding performance bonds for construction contracts amounting to **HK$107.2 million**[1219](index=1219&type=chunk) [Financial Summary](index=276&type=section&id=Financial%20Summary) [Five-Year Financial Summary](index=276&type=section&id=Financial%20Summary) This section summarizes the Group's five-year financial performance, highlighting significant revenue and profit growth in FY2021, alongside continuous expansion of total assets and equity Five-Year Financial Summary (HKD thousand) | Item (HKD thousand) | 2021 | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 536,009 | 299,794 | 376,621 | 421,146 | 501,938 | | **Profit for the Year** | 38,940 | 24,240 | 22,882 | 50,112 | 55,337 | | **Total Assets** | 672,645 | 621,687 | 672,059 | 383,118 | 410,785 | | **Total Liabilities** | 126,779 | 106,805 | 163,241 | 254,426 | 335,361 | | **Total Equity** | 545,866 | 514,882 | 508,818 | 128,692 | 75,424 | [Summary of Major Properties](index=277&type=section&id=Summary%20of%20Major%20Properties) [Summary of Major Properties](index=277&type=section&id=Summary%20of%20Major%20Properties) This section lists the Group's major properties, distinguishing between investment properties for rental in Hong Kong and self-use properties in Hong Kong and Huizhou, mainland China - Investment properties held for rental income include portions of offices in **Phase 1, Kings Wing Plaza, Sha Tin, New Territories, Hong Kong**[1385](index=1385&type=chunk) - Properties for own use in Hong Kong include multiple offices and parking spaces in **Phase 1, Kings Wing Plaza**[1387](index=1387&type=chunk) - Properties for own use in mainland China include an industrial complex building located in **Shuikou Town, Huizhou City, Guangdong Province**[1389](index=1389&type=chunk)

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].