Financial Performance - The company reported revenue of approximately HKD 1,303.5 million for the six months ended September 30, 2020, representing an increase of 52.7% compared to HKD 853.4 million for the same period last year[10]. - Profit for the period increased by approximately HKD 67.0 million or 433.9% to HKD 82.4 million, driven by a gross profit increase of approximately HKD 65.4 million and wage subsidies from the government amounting to HKD 24.3 million[10]. - Revenue growth was primarily driven by increased earnings from government sector clients[14]. - Gross profit for the same period was approximately HKD 123.9 million, an increase of 111.8% from HKD 58.5 million in the prior year[16]. - The net profit for the six months ended September 30, 2020, was HKD 82,440, compared to HKD 15,442 for the same period in 2019, reflecting a substantial increase[91]. - The total comprehensive income for the six months ended September 30, 2020, was HKD 82,440 thousand, compared to HKD 15,442 thousand for the same period in 2019, representing a substantial increase[52]. Profitability and Margins - The overall gross profit margin improved from approximately 6.9% to 9.5%, attributed to successful cost control measures and a focus on more profitable contracts[10]. - Operating profit increased to HKD 98,518, compared to HKD 24,821 in the previous year, marking a significant improvement in operational efficiency[46]. - The gross profit margin improved to 9.5% from 6.9%, attributed to better cost control and a focus on more profitable contracts[18]. Government Support and Subsidies - The group received a wage subsidy of HKD 24.3 million under the government's employment support scheme, compared to none in the previous year[19]. - The company received government subsidies of HKD 24,271 under the Employment Support Scheme, contributing to its financial stability during the period[46]. - Total other income for the six months ended September 30, 2020, was HKD 5,309, significantly up from HKD 728 in the same period of 2019, primarily due to government subsidies[82]. Operational Developments - The company successfully secured more service contracts, particularly from government sectors, contributing to business growth during the period[11]. - The company is actively developing logistics for waste collection and procuring advanced environmental hygiene technology products and equipment[13]. - The company continues to focus on providing cleaning and related services, with ongoing investments in operational capabilities and market expansion strategies[57]. Workforce and Employment - The company employed approximately 13,000 employees as of September 30, 2020, compared to over 8,000 employees as of September 30, 2019, indicating a significant increase in workforce[38]. - Administrative expenses increased by 55.0% to approximately HKD 53.6 million, primarily due to increased director bonuses and higher employee costs post-IPO[20]. Financial Position and Liquidity - Cash and cash equivalents were approximately HKD 223.1 million, with a current ratio of 1.4 times[26]. - Total current assets rose to HKD 1,022,600 as of September 30, 2020, compared to HKD 538,991 as of March 31, 2020, indicating improved liquidity[48]. - Accounts receivable increased to approximately HKD 757.8 million, primarily due to revenue growth and delayed payments from government clients[25]. - The aging analysis of accounts receivable shows that HKD 719,245,000 (94.4%) was within 90 days as of September 30, 2020, compared to HKD 303,299,000 (89.9%) as of March 31, 2020[94]. Capital Expenditure and Investments - The group's capital expenditure for the period was approximately HKD 22.7 million, mainly for vehicle purchases to provide environmental hygiene services[32]. - The group acquired properties, plants, and equipment amounting to approximately HKD 22,681,000 for the six months ended September 30, 2020, compared to HKD 34,501,000 for the same period in 2019[93]. - The total capital commitments for the purchase of properties, plants, and equipment were HKD 33,360,000 as of September 30, 2020, compared to HKD 1,103,000 as of March 31, 2020[106]. Shareholder Information and Governance - The company did not recommend any interim dividend for the six months ended September 30, 2020[90]. - The company has adopted the corporate governance code as per the listing rules to enhance shareholder value and accountability[130]. - The company complied with all applicable provisions of the corporate governance code during the period[131]. - The interests of directors and senior management in the company's shares and related securities were disclosed as of September 30, 2020, with no additional interests reported[116]. Debt and Liabilities - Total liabilities increased to HKD 741,701 from HKD 344,255, reflecting the company's expansion and investment activities[48]. - The company reported a contingent liability of HKD 426,551,000 related to performance guarantees as of September 30, 2020, up from HKD 285,358,000 as of March 31, 2020[102]. - Total borrowings due within one year amounted to HKD 396,599,000 as of September 30, 2020, compared to HKD 94,963,000 as of March 31, 2020[99].

Financial Performance - The group recorded revenue of approximately HKD 1,785.0 million, an increase of about 24.5% compared to HKD 1,433.4 million in the previous year[9]. - Profit for the year was approximately HKD 28.5 million, up about 30.5% from HKD 21.8 million in the previous year[9]. - Gross profit was approximately HKD 121.1 million, representing a 17.0% increase from HKD 103.5 million in the previous year[9]. - Revenue from government clients was approximately HKD 1,196.6 million, a 37.7% increase from HKD 869.2 million in the previous year[9]. - Revenue from non-government clients was approximately HKD 588.4 million, a growth of 4.3% from HKD 564.2 million in the previous year[9]. - The overall gross profit margin decreased from approximately 7.2% to 6.8% due to increased market competition and rising labor costs[26]. - Street cleaning services and building cleaning services contributed approximately 30% and 27% of total revenue, respectively, for the year ended March 31, 2020[27]. - Service costs for the year ended March 31, 2020, were approximately HKD 1,663.8 million, representing 93.2% of the group's revenue, an increase from 92.8% in 2019[31]. - Gross profit for the year ended March 31, 2020, was approximately HKD 121.1 million, a 17.0% increase from HKD 103.5 million in 2019, with a gross margin of 6.8% compared to 7.2% in 2019[32]. - The net profit attributable to equity holders for the year ended March 31, 2020, was approximately HKD 28.5 million, reflecting a 30.5% increase from HKD 21.8 million in 2019[36]. Operational Developments - The fleet size increased from about 100 vehicles to 300 vehicles, including specialized vehicles for various environmental hygiene services[11]. - The company plans to implement advanced automation equipment to alleviate labor shortages and reduce costs[11]. - The introduction of an environmental hygiene technology system aims to enhance service quality and efficiency, aligning with smart city trends[14]. - The company is actively researching smart environmental protection technologies to further automate and professionalize its services[14]. - Enhanced safety training and protective equipment are provided to employees, especially during the COVID-19 pandemic, to ensure compliance with health and safety protocols[15]. - The group plans to introduce more innovative technologies and equipment to enhance the quality and efficiency of its environmental hygiene services[28]. - The establishment of Johnson Environmental Limited and Fast Clean Limited in April 2020 aims to strengthen logistics for waste collection and provide advanced environmental hygiene service technologies[28]. - The company is addressing labor shortages and high turnover rates by introducing advanced automation equipment and reviewing employee compensation packages[139]. Strategic Initiatives - The group is exploring opportunities for mergers and acquisitions or strategic partnerships in the environmental hygiene services sector to create long-term value[28]. - The group recognizes new opportunities in the mainland China environmental hygiene services market due to recent government policies on environmental protection and waste management[28]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of $10 million earmarked for potential deals[59]. - Market expansion plans include entering two new regions, which are anticipated to increase market share by 8%[59]. - The company aims to enhance customer satisfaction scores by 15% through improved service delivery strategies[59]. Governance and Management - The company has a strong board with independent directors providing oversight, including Mr. Fan, who is also the chairman of the audit committee[76]. - The company is focused on strategic management and operational decisions, with a strong emphasis on financial planning and corporate governance[72]. - The board composition includes members with diverse backgrounds in finance, law, and academia, ensuring a well-rounded approach to decision-making[79]. - The company has established three committees: audit committee, remuneration committee, and nomination committee, each with defined powers and responsibilities[117]. - The board is responsible for leading and controlling the company, ensuring effective internal controls and risk management systems[108]. - The company has implemented a whistleblowing policy to allow employees to report misconduct confidentially[152]. Financial Position and Capital Management - Total bank and other borrowings as of March 31, 2020, amounted to approximately HKD 116.9 million, up from HKD 113.7 million in 2019[41]. - The current ratio as of March 31, 2020, was approximately 1.6 times, an increase from 1.4 times in 2019[39]. - Capital expenditures for the year ended March 31, 2020, totaled approximately HKD 72.9 million, significantly higher than HKD 18.7 million in 2019, primarily due to vehicle acquisitions for environmental services[45]. - The capital debt ratio as of March 31, 2020, was approximately 46.6%, a decrease from 76.9% in 2019[43]. - The group maintained a strong cash position with cash and cash equivalents of approximately HKD 169.0 million as of March 31, 2020, compared to HKD 87.3 million in 2019[39]. - The company has maintained a strong balance sheet, with total assets valued at H million and a debt-to-equity ratio of I[83]. Shareholder Relations and Dividends - The company emphasizes the importance of effective communication with shareholders to enhance investor relations[166]. - The company did not recommend the payment of a final dividend for the year ending March 31, 2020, consistent with no dividend in 2019[175]. - The company has adopted a dividend policy without a fixed payout ratio, allowing for flexibility based on financial performance and business needs[168]. Risk Management - The company has identified major risks categorized as strategic, operational, financial, and compliance risks[139]. - The board has reviewed the effectiveness of the risk management and internal control systems, finding them adequate and effective[152]. - The company has established clear written policies and procedures for risk management, which are regularly reviewed[149].

Financial Performance - The company recorded revenue of approximately HKD 853.4 million for the six months ended September 30, 2019, representing a 23.4% increase compared to the same period last year[12]. - Profit attributable to owners increased by approximately HKD 2.1 million or 16.2% to about HKD 15.4 million, primarily due to a gross profit increase of approximately HKD 6.5 million from customers[12]. - The group's gross profit for the period was approximately HKD 58.5 million, an increase of about 12.5% from HKD 52.0 million in the corresponding period of 2018[20]. - Revenue for the six months ended September 30, 2019, was HKD 853,395,000, representing a 23.4% increase from HKD 691,767,000 in the same period of 2018[42]. - Operating profit increased to HKD 24,821,000, compared to HKD 19,616,000 in the previous year, reflecting a growth of 26.5%[42]. - The net profit attributable to equity holders was approximately HKD 15.4 million, a 16.2% increase from HKD 13.3 million in the same period last year[23]. Cost and Expenses - The overall gross profit margin decreased from approximately 7.5% to 6.9% due to increased labor costs and intense market competition[12]. - Service costs for the six months ended September 30, 2019, were approximately HKD 794.9 million, accounting for about 93.1% of the revenue, an increase of 0.6% compared to the previous year[19]. - Administrative expenses rose to approximately HKD 34.6 million from HKD 32.7 million, primarily due to an increase in director bonuses and slight increases in the number and average salary of administrative staff[21]. - Financing costs increased to approximately HKD 5.1 million from HKD 3.1 million, representing about 0.6% and 0.4% of total revenue respectively, mainly due to increased bank borrowings[22]. Assets and Liabilities - As of September 30, 2019, the total accounts receivable amounted to approximately HKD 454.6 million, up from HKD 268.8 million, primarily due to increased revenue and delayed settlements from government clients[27]. - The group's cash and cash equivalents were approximately HKD 97.0 million, an increase from HKD 87.3 million, maintaining a healthy liquidity position[28]. - The total bank borrowings as of September 30, 2019, were approximately HKD 285.8 million, significantly up from HKD 113.7 million[29]. - Current liabilities increased to HKD 487,378,000 from HKD 281,495,000, indicating a rise in short-term obligations[44]. - The net asset value as of September 30, 2019, was HKD 176,474,000, up from HKD 161,029,000, reflecting a healthy equity position[44]. Shareholder Information - Major shareholder Hong Kong Huafa Investment Holdings Limited holds 221,250,000 shares, representing approximately 44.25% of the company's issued share capital[158]. - The company’s significant shareholder, Guangdong Environmental Protection, holds 153,750,000 shares, which is approximately 30.75% of the issued share capital[158]. - Major shareholder Harvest Vista Company Limited holds 153,750,000 shares, representing 30.75% of the company's issued share capital[160]. - Hong Kong Nanyang International Trade Co., Ltd. holds 45,000,000 shares, accounting for 9.00% of the company's issued share capital[160]. Corporate Governance - The company has adopted the corporate governance code principles following its listing on the main board of the Stock Exchange[172]. - The board will continue to review and monitor the company's practices to maintain high standards of corporate governance[174]. - All directors confirmed compliance with the standard code of conduct for securities trading from the listing date to the report date[175]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period[177]. Future Plans and Investments - The company plans to utilize proceeds from the global offering to acquire additional vehicles and equipment to enhance service capabilities and increase market share[17]. - The company intends to develop or acquire operational vehicles related to waste management to improve service delivery and operational flexibility[17]. - The company aims to expand its service offerings to enhance competitiveness and improve financial performance[15]. Market Conditions - The increase in revenue was primarily driven by growth in government sector clients[18]. - The company has observed a high turnover rate in the environmental hygiene services market and is offering competitive compensation and development opportunities to retain staff[13]. Financial Reporting and Compliance - The company’s financial statements were approved by the board on November 28, 2019, indicating timely governance and oversight[148]. - The external auditor conducted a review of the group's unaudited condensed financial statements in accordance with the relevant Hong Kong standards[178].