Financial Performance - Total revenue for the fiscal year ended March 31, 2022, was approximately HKD 536.5 million, a decrease of about HKD 372.3 million or 41.0% compared to HKD 908.8 million for the previous fiscal year[7]. - Revenue from superstructure construction services decreased by approximately HKD 252.7 million or 33.7%, totaling HKD 497.1 million for the fiscal year ended March 31, 2022[14]. - Revenue from RMAA services decreased by approximately HKD 115.1 million or 85.8%, totaling HKD 19.1 million for the fiscal year ended March 31, 2022[17]. - Gross profit decreased by approximately HKD 37.1 million or 60.5%, from approximately HKD 61.3 million to approximately HKD 24.2 million for the fiscal year ended March 31, 2022[21]. - Gross margin for the fiscal year ended March 31, 2022, was approximately 4.5%, down from 6.7% in the previous year[21]. - The company reported a loss of approximately HKD 18.2 million for the year ended March 31, 2022, compared to a profit of HKD 11.5 million for the previous year, primarily due to a decrease in gross profit of approximately HKD 37.1 million[28]. - Other income and gains decreased by approximately HKD 5.6 million or 59.1% to approximately HKD 3.9 million for the year ended March 31, 2022, mainly due to the absence of government subsidies from the Employment Support Scheme[22]. - Administrative and other operating expenses decreased by approximately HKD 8.4 million or 15.7% to approximately HKD 45.3 million, primarily due to a reduction in employee costs of approximately HKD 5.3 million[23]. - Financing costs decreased by approximately HKD 1.7 million or 33.2% to approximately HKD 3.3 million, mainly due to a reduction in average bank borrowings[24]. - The company's total assets as of March 31, 2022, were approximately HKD 321.8 million, with total liabilities of approximately HKD 217.1 million and equity of approximately HKD 104.7 million[29]. - The capital-to-debt ratio improved to approximately 67.0% as of March 31, 2022, compared to 74.1% the previous year[30]. Business Strategy and Outlook - The company remains confident in the economic outlook for the Hong Kong construction market despite anticipated downward pressure due to the COVID-19 pandemic[8]. - The company plans to focus on its core business as a general contractor in Hong Kong, providing substructure and superstructure construction services, as well as RMAA services[8]. - The company will explore new opportunities and potential acquisition targets to enhance shareholder value[8]. - The company aims to leverage its skills and experience in the construction industry to explore property development project opportunities in the future[9]. - The company acknowledges the ongoing challenges posed by the COVID-19 pandemic but is committed to maintaining a robust financial position[6]. Human Resources and Management - The company employed a total of 94 employees as of March 31, 2022, down from 120 employees the previous year, with employee costs amounting to approximately HKD 51.2 million[43]. - The company has a strong management team with extensive experience in the construction industry, which is crucial for its operational success[58][60][63]. - The management team has extensive experience, with key members having over 30 years in audit, tax, and financial management[70]. - The company has appointed a new company secretary with over 16 years of experience in accounting and corporate sectors[86]. - The management team includes professionals with advanced degrees from prestigious institutions, enhancing the company's strategic capabilities[78]. - The company is currently led by Mr. Ng Choi Wah, who serves as both Chairman and CEO, a decision made to enhance stable leadership during a period of rapid development[110]. Corporate Governance - The company emphasizes high standards of corporate governance to maintain shareholder and stakeholder trust, which is crucial for long-term value creation[94]. - The board is responsible for formulating business strategies, reviewing and monitoring the group's performance, and approving financial statements and annual budgets[101]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance for the fiscal year ending March 31, 2022[96]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules, ensuring compliance with independence guidelines[100]. - The company has established a diversity policy for its board, considering various factors such as gender, age, cultural background, and professional experience in the selection of board members[119]. - The Nomination Committee is responsible for reviewing the board's structure and recommending suitable candidates for directorships, ensuring a balanced skill set and diversity[120]. - The company has established multiple communication channels with shareholders, including annual reports and quarterly reports, which are available on the company's website[143]. Environmental, Social, and Governance (ESG) Performance - The report covers the company's environmental, social, and governance (ESG) performance for the fiscal year from April 1, 2021, to March 31, 2022[154]. - The company adopts a top-down approach to implement sustainability strategies, focusing on environmental sustainability, respect for human rights, stakeholder engagement, employee support, and community support[152]. - Key performance indicators (KPIs) are supported by quantifiable data and metrics, ensuring transparency and accountability in ESG reporting[157]. - The board of directors actively supervises ESG matters, ensuring effective implementation of related policies and strategies[174]. - The company has identified 26 significant environmental, social, and governance (ESG) issues, with a focus on occupational health and safety, and service quality as the most critical topics[188]. - The company has implemented a series of environmental protection measures to reduce carbon emissions and operational impact, adopting ISO 14001:2015 environmental management system since 2009[192]. - The company will continue to engage with stakeholders to gather feedback and reassess the prioritization of ESG issues to ensure their relevance and importance[189]. - The company emphasizes the importance of service quality in its operations, particularly in construction and consulting services, to maintain high-quality management standards[188]. Risk Management - The company has adopted a three-tier risk management approach to identify, assess, mitigate, and respond to risks[131]. - The company cannot guarantee it will not face claims due to defects in its projects, which could lead to additional costs[55]. - The company may face legal liabilities due to construction and labor disputes, which could adversely affect financial performance[54]. - The company is dependent on its board members and senior management; their departure could negatively impact operations and financial performance[54]. - The company relies on suppliers for concrete, steel, and other construction materials; any shortages or delays could have a significant negative impact on operations[54]. - The company is labor-intensive, and any labor shortages or significant increases in labor costs could adversely affect financial performance[54]. Operational Efficiency - The company reported a significant increase in operational management efficiency, particularly in foundation engineering and contract management[77]. - The company has a strong focus on project management, with a project director responsible for overall operational management since 2013[77]. - The company is actively expanding its safety management systems, with a dedicated safety officer overseeing compliance and safety protocols[81].

TE Ching Lee Holdings Limited 正利控股有限公司 (於開曼群島註冊成立之有限公司) 股份代號：3728 9 中期報告 目 2 公司資料 目 錄 2 4 主席報告 4 6 財務摘要 6 7 未經審核綜合全面收益表 7 8 未經審核財務狀況表 8 10 未經審核綜合權益變動表 10 11 未經審核綜合現金流量表 11 12 未經審核綜合財務報表附註 12 18 管理層討論及分析 18 24 其他資料 24 其他資料 公司資料 董事會 授權代表 執行董事： 吳彩華先生 吳彩華先生(主席) 呂耀榮先生 呂耀榮先生 總部及香港主要營業地點 林嘉暉先生 香港 獨立非執行董事： 九龍 韋永康博士 佐敦 湯顯森先生 上海街28 號 周錦榮先生 2 樓 203 室 審核委員會 開曼群島股份過戶登記總處 周錦榮先生(主席) 韋永康博士 Codan Trust Company (Cayman) Limited 湯顯森先生 Cricket Square Hutchins Drive 薪酬委員會 P.O. Box 2681 韋永康博士(主席) Grand Cayman KY1-1111 吳彩華先生 周鈞桑先 ...

Revenue Performance - The total revenue for the fiscal year ending March 31, 2021, was approximately HKD 908.8 million, a decrease of about HKD 84.5 million or 8.5% compared to HKD 993.3 million for the previous year[9]. - Revenue from substructure construction services was approximately HKD 24.8 million, down 19.9% from HKD 30.9 million in the previous year, primarily due to reduced project confirmations[17][18]. - Revenue from superstructure construction services increased by approximately HKD 91.1 million to HKD 749.8 million, representing a growth of 13.8% compared to HKD 658.7 million in the previous year[17][19]. - Revenue from RMAA services decreased significantly by approximately HKD 169.5 million to HKD 134.2 million, a decline of 55.8% from HKD 303.7 million in the previous year[17][20]. - The decline in overall revenue was primarily attributed to decreases in RMAA and substructure construction services, offset by growth in superstructure services[23]. Profitability and Earnings - Basic earnings per share for the fiscal year were HKD 1.14, down from HKD 1.20 in the previous year[9]. - Gross profit decreased by approximately HKD 19.4 million or 24.0% to about HKD 61.3 million, with a gross margin of 6.7%, down from 8.1% in the previous year[24]. - Profit attributable to owners decreased by approximately HKD 0.7 million or 5.7% to about HKD 11.5 million, influenced by the decrease in gross profit and the increase in other income[31]. Financial Position - Total assets as of March 31, 2021, were approximately HKD 423.9 million, with total liabilities of about HKD 298.0 million and equity of HKD 125.9 million[32]. - The debt-to-equity ratio improved to approximately 74.1% from 130.8% in the previous year[33]. Operational Efficiency - Administrative and other operating expenses decreased by approximately HKD 5.6 million or 9.4% to about HKD 53.7 million, mainly due to reductions in consultancy fees and entertainment expenses[26]. - Financing costs decreased by approximately HKD 4.3 million or 46.2% to about HKD 5.0 million, attributed to a reduction in average bank borrowings[27]. - Income tax decreased by approximately HKD 1.1 million or 45.8% to about HKD 1.3 million[28]. Strategic Outlook - The company remains confident in the prospects of the Hong Kong construction market despite anticipated economic pressures due to the COVID-19 pandemic[10]. - The company plans to continue focusing on its core business as a general contractor and explore new opportunities and potential acquisitions to enhance shareholder value[10][11]. - The company aims to leverage its comprehensive skills and experience in the construction industry to explore property development opportunities in the future[11]. - The company acknowledges the ongoing challenges posed by the COVID-19 pandemic but remains committed to its strategic objectives[8]. Human Resources and Employee Welfare - Employee costs for the year amounted to approximately HKD 70.4 million, down from HKD 82.8 million in the previous year, with a total of 120 employees as of March 31, 2021[45]. - The total number of employees as of March 31, 2021, is 120, down from 146 in the previous fiscal year[188]. - The employee turnover rate is approximately 3.2% for the reporting year, an increase from 1.8% in the previous fiscal year[192]. - The company reported 14 work-related injury cases during the reporting year, with a total of 653 hours of absenteeism[196]. - There were no fatal incidents reported during the year, and all injured employees received adequate compensation[196]. - The company maintains a health and safety policy aimed at reducing reportable accidents to less than 0.45 per 100,000 working hours[193]. - The gender ratio among employees is approximately 70% male and 30% female[190]. - Employees are provided with 7 to 14 days of annual leave based on their positions[189]. - The company conducts regular safety training and emergency drills to ensure a safe working environment[197]. Environmental Impact - Total atmospheric pollutant emissions decreased by approximately 11.4% to 197.92 kg compared to the previous fiscal year, with an average of 12.37 kg per facility[153]. - Greenhouse gas emissions increased by approximately 7.9% to 1,082.30 tons, with a density of 67.64 tons per facility, while direct emissions from fixed combustion sources decreased by about 22.6%[159]. - The total amount of non-hazardous waste disposed of increased by approximately 68.5% to 32,937 tons, with a density of 2,058.54 tons per facility[166]. - The company has implemented environmental policies to reduce atmospheric pollutant emissions, ensuring regular maintenance of all machinery and vehicles[153]. - The company has adopted the ISO 14001:2015 environmental management system since 2009 to enhance its ability to identify and manage environmental impacts[151]. - The company is committed to becoming a resource-saving and environmentally friendly enterprise, actively reducing resource usage and emissions[172]. - The company plans to continue promoting greenhouse gas reduction and efficient use of natural resources in the coming years[182]. Corporate Governance - The board of directors has emphasized the importance of corporate governance, ensuring compliance with all relevant regulations and standards[101]. - The board held a total of 4 meetings and 1 annual general meeting during the year[112]. - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ending March 31, 2021, confirming compliance with applicable accounting standards[118]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and industry experience in selecting board members[124]. - The company emphasizes continuous professional development for directors, encouraging attendance at relevant seminars[113]. - The chairman and CEO roles are held by the same individual, which the board believes enhances stability and effective decision-making during the company's rapid development[115]. - The company provides sufficient resources for all board committees to fulfill their duties and seek independent professional advice when necessary[117]. - The board of directors confirmed their responsibility for preparing the consolidated financial statements for the year ended March 31, 2021, ensuring a true and fair view of the group's affairs and performance[130].

Financial Performance - The total revenue for the six months ended September 30, 2020, was approximately HKD 515.9 million, an increase of about HKD 96.5 million or 23.0% compared to HKD 419.4 million for the same period in 2019[13]. - The profit and total comprehensive income for the six months ended September 30, 2020, was approximately HKD 13.6 million, an increase of about HKD 2.2 million or 19.3% compared to HKD 11.4 million for the same period in 2019[19]. - Basic and diluted earnings per share for the six months ended September 30, 2020, were 1.34 HKD cents, compared to 1.13 HKD cents for the same period in 2019[20]. - The group recorded a gross profit of approximately HKD 37.3 million for the six months ended September 30, 2020, compared to HKD 46.6 million for the same period in 2019[25]. - The company reported a net profit of HKD 13,622,000 for the six months ended September 30, 2020, compared to HKD 11,407,000 for the same period in 2019, reflecting a year-on-year increase of 19.4%[34]. - Gross profit decreased by approximately HKD 9.3 million or 20.0% to about HKD 37.3 million for the six months ended September 30, 2020, with a gross margin of 7.2%, down from 11.1% in the previous year[70]. Dividends - The board declared an interim dividend of 0.35 HKD cents per share for the six months ended September 30, 2020, compared to 0.3 HKD cents per share for the same period in 2019[21]. - The company declared an interim dividend of HKD 0.35 per share for the six months ended September 30, 2020, compared to HKD 0.30 per share for the same period in 2019[53]. - The interim dividend checks will be sent to shareholders around December 21, 2020[145]. - The company will suspend the registration of share transfers from December 10 to December 11, 2020, to qualify for the interim dividend[144]. Assets and Liabilities - Trade and other receivables increased to HKD 111.3 million as of September 30, 2020, from HKD 93.2 million as of March 31, 2020[28]. - The group's non-current assets totaled HKD 62.3 million as of September 30, 2020, compared to HKD 61.7 million as of March 31, 2020[28]. - The total assets less current liabilities amounted to HKD 134,922,000 as of September 30, 2020, up from HKD 124,702,000 as of March 31, 2020[30]. - Cash and cash equivalents increased to HKD 88,115,000 as of September 30, 2020, compared to HKD 63,337,000 at the end of the same period in 2019[37]. - The company’s liabilities decreased slightly, with total current liabilities at HKD 386,510,000 as of September 30, 2020, down from HKD 396,680,000 as of March 31, 2020[30]. - As of September 30, 2020, the group's total assets were approximately HKD 521.5 million, with total liabilities and equity of approximately HKD 389.9 million and HKD 131.6 million, respectively, maintaining a current ratio of about 1.2[78]. - The capital debt ratio as of September 30, 2020, was approximately 122.4%, down from about 130.8% as of March 31, 2020, based on total interest-bearing debt of approximately HKD 161.1 million and total equity of approximately HKD 131.6 million[79]. Operational Challenges - The group experienced challenges due to the COVID-19 pandemic and geopolitical tensions, impacting project execution and material supply[14]. - The management is confident in overcoming challenges posed by COVID-19 and is taking appropriate measures to review project execution[66]. Business Strategy - The group will continue to focus on its core business as a general contractor in Hong Kong, providing various construction services while exploring new business opportunities and potential acquisitions[14]. - The group plans to maintain a cautious approach while exploring opportunities related to property development projects[14]. - The company plans to continue focusing on its core business as a general contractor in Hong Kong while exploring new opportunities and potential acquisitions[66]. Employee and Management Information - Employee costs for the six months ended September 30, 2020, were approximately HKD 30.3 million, a decrease from HKD 39.2 million for the same period in 2019, with a total of 132 employees as of September 30, 2020[91]. - The company has maintained a prudent financial management policy, ensuring a stable liquidity position throughout the six months[81]. - The company has not faced any foreign exchange risks as of September 30, 2020[83]. Share Capital and Governance - As of September 30, 2020, the total issued share capital of the company was 1,013,000,000 shares[107]. - Mr. Wu holds 694,940,000 ordinary shares and 10,000,000 share options, representing 69.59% of the company's equity[104]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended September 30, 2020[118]. - The company has a share option plan that allows for the issuance of up to 10% of the total issued shares, which amounts to 100,000,000 shares[126]. - The company has complied with the corporate governance code principles and provisions during the reporting period[119]. - The company’s audit committee consists of three independent non-executive directors, ensuring appropriate accounting and financial management expertise[143]. Stock Options - The company granted a total of 32,500,000 share options under the share option plan, with an exercise price of HK$0.40 per share[123]. - No stock options were exercised or forfeited during the six months ending September 30, 2020[139]. - The stock options are exercisable within a period from November 21, 2018, to November 20, 2027[139]. - The maximum number of stock options granted to any participant cannot exceed 1% of the issued shares[127].

Revenue and Profitability - Total revenue for the year ended March 31, 2020, increased by approximately HKD 149.7 million or 17.7% to about HKD 993.3 million, compared to approximately HKD 843.7 million for the year ended March 31, 2019[13] - Revenue from superstructure construction services rose by approximately HKD 242.1 million or 58.1% to HKD 658.7 million, while revenue from substructure construction services was approximately HKD 30.9 million, a new addition for the year[21][23] - Revenue from RMAA services decreased by approximately HKD 123.4 million or 28.9% to HKD 303.7 million, primarily due to fewer project milestones being achieved compared to the previous year[24] - Gross profit decreased by approximately HKD 6.6 million or 7.5% to about HKD 80.7 million, with a gross profit margin of approximately 8.1%, down from 10.3% in the previous year[29] - The company reported a profit attributable to owners of approximately HKD 12.2 million for the year ended March 31, 2020, an increase of approximately HKD 1.2 million or 10.9% from the previous year[34] Financial Position - Total assets as of March 31, 2020, amounted to approximately HKD 521.4 million, with total liabilities and equity at approximately HKD 400.4 million and HKD 121.0 million, respectively[38] - Administrative and other operating expenses decreased by approximately HKD 5.7 million or 8.8% to approximately HKD 59.3 million for the year ended March 31, 2020[31] - Financing costs increased by approximately HKD 2.2 million or 31.8% to approximately HKD 9.3 million due to an increase in average bank borrowings[32] - Income tax expenses decreased by approximately HKD 1.8 million or 41.8% to approximately HKD 2.4 million for the year ended March 31, 2020[33] - The capital-to-debt ratio as of March 31, 2020, was approximately 130.8%, a decrease from 174.0% the previous year[39] Capital Expenditure and Proceeds - The capital expenditure for the year ended March 31, 2020, was approximately HKD 0.5 million, primarily for the purchase of property, furniture, and equipment[40] - The net proceeds from the listing, after deducting various fees, amounted to approximately HKD 42.5 million[64] - The actual net proceeds from the share placement differ from the estimated net proceeds of approximately HKD 39.0 million as stated in the prospectus[65] - Approximately 40.1% of the net proceeds (around HKD 17.0 million) is allocated to reserve more capital to meet potential clients' performance guarantee needs[65] - About 24.8% of the net proceeds (approximately HKD 10.5 million) is used to expand the workforce and fund external technical seminars and occupational health and safety courses[65] Corporate Strategy and Outlook - The company remains confident in the outlook for the Hong Kong construction market despite ongoing challenges from social unrest and the COVID-19 pandemic[14] - The company plans to focus on its core business as a general contractor in Hong Kong, providing substructure and superstructure construction services, as well as RMAA services[14] - The company is exploring new opportunities and potential acquisition targets to enhance shareholder value[14] - The company aims to leverage its comprehensive skills and experience in the construction industry to explore property development opportunities in the future[15] Environmental Impact - Total greenhouse gas emissions decreased by 26.7% to approximately 889 tons compared to 1,213 tons in the previous year[200] - The total weight of air pollutants increased by 12% to 6.34 kg per facility, up from 5.66 kg per facility in the previous year[194] - The density of greenhouse gas emissions per facility reduced by 9.9%, from 71 tons to 64 tons[200] - Direct greenhouse gas emissions from fixed combustion sources (generators) increased by 155.5% from 211 tons to 539 tons[200] - The company has implemented environmental policies to reduce air pollutant emissions[194] Corporate Governance - The company has maintained high standards of corporate governance, believing it is essential for gaining and maintaining shareholder trust and creating long-term value[130] - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[136] - The company has adopted the corporate governance code as per the Listing Rules and has complied with it for the fiscal year ending March 31, 2020[131] - The board held four meetings and one annual general meeting during the year to review financial and operational performance[147] - The independent non-executive directors have confirmed their independence according to the guidelines set out in the Listing Rules[137]

Financial Performance - The total revenue for the six months ended September 30, 2019, was approximately HKD 419.4 million, a decrease of about 23.4% or HKD 128.0 million compared to HKD 547.4 million for the same period in 2018[11]. - The profit and total comprehensive income for the six months ended September 30, 2019, was approximately HKD 11.4 million, a decrease of about 18.8% or HKD 2.6 million compared to HKD 14.0 million for the same period in 2018[18]. - Basic earnings per share for the six months ended September 30, 2019, was 1.13 HKD cents, down from 1.39 HKD cents for the same period in 2018[19]. - The gross profit for the six months ended September 30, 2019, was HKD 46.6 million, compared to HKD 50.4 million for the same period in 2018[24]. - The company reported a net cash outflow from operating activities of HKD (8,846) thousand for the six months ended September 30, 2019, an improvement from HKD (40,697) thousand in the same period of the previous year[40]. - The company's profit attributable to owners decreased by approximately HKD 2.6 million or 18.8% to HKD 11.4 million for the six months ended September 30, 2019, compared to HKD 14.0 million for the same period in 2018[110]. - Financing costs increased by HKD 1.8 million or 81.2% to approximately HKD 3.9 million for the six months ended September 30, 2019, due to higher bank borrowings compared to the same period in 2018[106]. - Income tax expenses decreased by approximately HKD 0.9 million or 29.4% to approximately HKD 2.3 million for the six months ended September 30, 2019[109]. Dividend Information - The board declared an interim dividend of 0.3 HKD cents per share for the six months ended September 30, 2019, compared to 0.4 HKD cents per share for the same period in 2018[20]. - The interim dividend declared for the six months ended September 30, 2019, is HKD 0.3 per share, down from HKD 0.4 per share for the same period in 2018[85]. - Dividend checks are expected to be sent to shareholders on or around December 20, 2019[176]. Assets and Liabilities - Non-current assets as of September 30, 2019, totaled HKD 62.3 million, an increase from HKD 60.7 million as of March 31, 2019[28]. - Current assets increased to HKD 520.9 million as of September 30, 2019, compared to HKD 381.7 million as of March 31, 2019[28]. - Current liabilities increased to HKD 455,802 thousand as of September 30, 2019, compared to HKD 328,492 thousand as of March 31, 2019, representing a 38.7% increase[32]. - Total assets less current liabilities amounted to HKD 65,072 thousand as of September 30, 2019, up from HKD 53,225 thousand as of March 31, 2019, indicating a 22.3% growth[32]. - Net asset value rose to HKD 123,259 thousand as of September 30, 2019, compared to HKD 111,852 thousand as of March 31, 2019, reflecting a 10.2% increase[32]. - Non-current liabilities totaled HKD 4,151 thousand as of September 30, 2019, compared to HKD 2,047 thousand as of March 31, 2019, showing a 102.5% increase[32]. - Trade receivables increased to HKD 96.8 million as of September 30, 2019, from HKD 40.5 million as of March 31, 2019[88]. - Trade payables rose to HKD 189.3 million as of September 30, 2019, compared to HKD 87.8 million as of March 31, 2019[93]. Operational Insights - The group remains confident about the industry outlook and the Hong Kong construction market, focusing on core services and exploring new opportunities and acquisition targets[12]. - The group aims to leverage its skills and experience in the construction industry to explore future property development opportunities[13]. - The revenue from substructure construction services was HKD 18,806,000, while the revenue from superstructure construction services was HKD 264,624,000, down from HKD 299,688,000 in the previous year[80]. - The revenue from RMAA services was HKD 136,010,000, a significant decrease from HKD 247,715,000 in the prior year, indicating a decline of approximately 45%[80]. - The overall gross margin improved from 9.2% for the six months ended September 30, 2018, to 11.1% for the same period in 2019[103]. - Employee costs for the six months ended September 30, 2019, were approximately HKD 39.2 million, an increase from HKD 34.6 million for the same period in 2018[123]. Accounting Policies - The company has adopted HKFRS 16 "Leases" effective from April 1, 2019, which has impacted its accounting policies significantly[49]. - The group recognized additional lease liabilities of approximately HKD 1,182,000 as of April 1, 2019, following the application of HKFRS 16[74]. - The initial measurement of lease liabilities included fixed payments and variable lease payments based on indices or rates, with adjustments made for any lease incentives received[64]. - The group confirmed the cost of right-of-use assets, which includes initial direct costs and estimated costs for dismantling and restoring leased assets[58]. - The group has opted for a practical expedient not to recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases[57]. - The group reported a decrease in operating lease commitments from HKD 2,190,000 to HKD 1,182,000 after applying HKFRS 16[75]. - The group’s financial position reflects the impact of lease liabilities and right-of-use assets on its balance sheet, with adjustments made for any remeasurement of lease liabilities[61]. Shareholder Information - As of September 30, 2019, the total number of issued shares was 1,013,000,000[137]. - Executive Director Wu Choi Wah holds 658,720,000 shares, representing 66.01% of the company's shares[137]. - Major shareholder JT Glory Limited, fully owned by Wu Choi Wah, holds 645,000,000 shares, accounting for 63.67% of the company's equity[142]. - The company has adopted a share option scheme, granting directors options to subscribe for shares[143]. - The total number of shares that may be issued under the share option scheme is capped at 10% of the total issued shares at the time of listing, which amounts to 100,000,000 shares[158]. - The exercise price for the granted share options is set at HK$0.40 per share[166]. - The company has a total of 10,000,000 share options granted to Wu Choi Wah under the share option scheme[137]. - No share options were exercised or forfeited during the six months ended September 30, 2019[166]. Corporate Governance - The company confirmed compliance with the corporate governance code, except for the dual role of the Chairman and CEO held by Wu Choi Wah[152]. - The company has no competitive business or conflict of interest issues involving directors or major shareholders as of September 30, 2019[147]. - The company’s audit committee consists of three independent non-executive directors, ensuring appropriate accounting and financial management expertise[174].

Financial Performance - Total revenue for the year ended March 31, 2019, was approximately HKD 843.7 million, a decrease of about HKD 27.2 million or 3.1% from approximately HKD 870.9 million for the year ended March 31, 2018[12]. - Revenue from superstructure construction services decreased by approximately HKD 118.3 million to HKD 416.5 million, representing a decline of 22.1%[20]. - Revenue from RMAA services increased by approximately HKD 92.7 million to HKD 427.2 million, reflecting a growth of 27.7%[23]. - Gross profit decreased by approximately HKD 8.3 million or 8.7% to approximately HKD 87.2 million, with a gross margin of about 10.3%, slightly lower than the previous year's margin of 11.0%[25]. - Basic earnings per share for the year ended March 31, 2019, were HKD 0.0109, down from HKD 0.0197 for the year ended March 31, 2018[12]. - Profit attributable to owners of the company decreased by approximately HKD 8.7 million or 44.0% to about HKD 11.0 million for the year ended March 31, 2019, primarily due to increased financing costs and expected credit losses on financial assets[31]. - Other income and gains increased by approximately HKD 0.8 million or 84.3% to about HKD 1.7 million for the year ended March 31, 2019, primarily due to fair value changes of financial assets amounting to approximately HKD 1.5 million[26]. - Administrative and other operating expenses decreased by approximately HKD 4.0 million or 5.7% to about HKD 65.0 million for the year ended March 31, 2019, mainly due to a reduction in legal and professional fees by approximately HKD 7.9 million[27]. - Financing costs increased by approximately HKD 4.6 million or 184.7% to about HKD 7.1 million for the year ended March 31, 2019, attributed to bank borrowings rising from approximately HKD 95.2 million to about HKD 192.4 million[28]. - Total assets as of March 31, 2019, were approximately HKD 442.4 million, with total liabilities of about HKD 330.5 million and equity of HKD 111.9 million, maintaining a current ratio of approximately 1.2[33]. - The debt-to-equity ratio as of March 31, 2019, was approximately 174.0%, up from 101.9% as of March 31, 2018[34]. - Total capital expenditure for the year ended March 31, 2019, was approximately HKD 6.7 million, mainly for the purchase of properties, furniture, equipment, and intangible assets[35]. Strategic Outlook - The company remains confident in the future prospects of the Hong Kong construction market and will continue to focus on its core business as a general contractor[13]. - The company plans to explore new opportunities and potential acquisition targets to enhance shareholder value[13]. - The company aims to leverage its comprehensive skills and experience in the construction industry to explore property development opportunities in the future[14]. - The decrease in total revenue was primarily due to declines in superstructure and substructure construction services, offset by the increase in RMAA services[24]. - The company successfully transitioned from GEM to the main board of the Hong Kong Stock Exchange, enhancing its image and financing flexibility[11]. Corporate Governance - The company has maintained high standards of corporate governance, which is crucial for gaining and maintaining shareholder trust[94]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[100]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with it for the fiscal year ending March 31, 2019[95]. - The chairman and executive director, Mr. Wu, unintentionally purchased 1,000,000 shares during a blackout period, which was later rectified by selling the shares[96]. - The company emphasizes the importance of compliance with the standard code among directors, especially regarding trading during blackout periods[97]. - The board regularly reviews the company's governance policies and is satisfied with their effectiveness[101]. - The company has purchased liability insurance for directors and senior officers to cover legal actions arising from their responsibilities[107]. - The executive directors have service contracts that are initially for three years, with provisions for termination and renewal[105]. - The company holds regular board meetings to review financial and operational performance, as well as overall strategy[108]. - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring compliance with governance standards[100]. - The board held four meetings and one annual general meeting during the year, with a total of 42111 meetings recorded[109]. - The audit committee consists of three independent non-executive directors, with the chairman possessing appropriate accounting and financial management expertise[118]. - The remuneration committee reviewed the compensation of directors and senior management, deeming it fair and reasonable for the year ending March 31, 2019[119]. - The nomination committee is responsible for reviewing the board's structure and composition, and for recommending qualified candidates for directorship[121]. - The company has adopted a board diversity policy to enhance sustainable development and performance quality, considering various factors such as gender, age, and industry experience[123]. - The company secretary provides ongoing training materials to directors regarding applicable listing rules and regulations[113]. - The chairman and CEO roles are distinct, with the current chairman also serving as CEO to ensure stable leadership during rapid development[114]. - The audit committee reviewed the consolidated financial statements for the year ending March 31, 2019, confirming compliance with applicable accounting standards[118]. - The company has established three board committees: audit, remuneration, and nomination, each with clear written terms of reference[115]. - The company is committed to continuous professional development for directors, encouraging attendance at relevant seminars and external workshops[112]. - The board confirmed its responsibility for preparing the consolidated financial statements for the year ended March 31, 2019, ensuring they reflect the group's affairs and performance accurately[128]. - The external auditor's remuneration for audit services was HKD 1,260,000, while non-audit services amounted to HKD 201,000, totaling HKD 1,461,000[130]. - The board believes that the internal control system is sufficient and effective as of March 31, 2019, and has reviewed the adequacy of resources and qualifications of staff involved in accounting and financial reporting[129]. - The group has adopted a three-tier risk management approach to identify, assess, mitigate, and respond to risks, ensuring effective monitoring at all levels[131]. - The company secretary confirmed compliance with the relevant professional training requirements, having completed no less than 15 hours of training as per listing rules[132]. - The nomination committee will review the nomination policy to ensure its effectiveness[126]. - The company has established a policy for handling inside information to maintain confidentiality until timely disclosure is made according to listing rules[133]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting within two months of the request[136]. - The company has implemented various risk management procedures and guidelines to ensure long-term business development[129]. - The board is committed to maintaining good corporate governance practices and ensuring compliance with applicable laws and regulations[135]. Environmental Impact - The total greenhouse gas emissions for the reporting year amounted to approximately 1,213 tons, representing a 63.4% increase compared to the previous year, with a density increase of 34.5%[147]. - The total weight of air pollutants emitted was 5.66 kg, showing a significant decrease of 65.8% compared to the 2017/18 fiscal year[143]. - The total electricity consumption was approximately 1,774 MWh, which is an increase of 101.68% compared to the previous year, with a density increase of 66.09%[155]. - The total water consumption for the reporting year was 22,093 cubic meters, reflecting a 159.67% increase compared to the previous year, with a density increase of 113.8%[159]. - The total weight of non-hazardous waste disposed of was approximately 17,797 tons, with a successful reduction of 33.9% in quantity and 45.6% in density compared to the previous year[152]. - The company has implemented environmental policies to reduce air pollutant emissions, ensuring regular maintenance of all machinery and vehicles[143]. - The company has installed a wastewater purification system to reuse clean water from construction processes, contributing to reduced direct water consumption[159]. - The company encourages employees to turn off idle electrical appliances and has posted energy-saving labels in the office to promote reduced energy consumption[149]. - The company has taken measures to monitor its carbon footprint during business operations to minimize adverse environmental impacts[147]. - The company aims to minimize water pollution and improve water consumption efficiency through a centralized wastewater management system, contributing to reduced greenhouse gas emissions in the foreseeable future[163]. - The company has set a target to further promote greenhouse gas reduction, energy and water resource conservation, and efficient use of natural resources in the coming years[164]. - The group operates under various environmental regulations in Hong Kong, including air pollution, noise control, and waste disposal laws[198]. - The group has implemented multiple environmental protection measures to minimize business impact on the environment and natural resources[198]. - As of March 31, 2019, the group has not faced significant administrative penalties, fines, or criminal sanctions for violating any environmental laws or regulations[198]. - The group has complied with relevant laws and regulations that significantly impact its business and operations during the year[199]. Human Resources and Community Engagement - The group employed a total of 199 employees as of March 31, 2019, with employee costs amounting to approximately HKD 89.4 million, an increase from approximately HKD 73.3 million in the previous year[46]. - As of March 31, 2019, the employee gender ratio was 84% male and 16% female, with a total of 199 employees, including 122 frontline staff, 69 middle management, and 8 senior management[169]. - The average employee turnover rate is maintained at a healthy 2.44% due to a harmonious work environment and competitive employee benefits[171]. - The company reported a decrease in the accident frequency rate from 0.5 to 0.45 reportable incidents per 100,000 working hours from 2018 to 2019, with 18 reported work injury cases during the reporting year[173]. - A total of approximately 880 hours of training were provided to employees during the reporting year, with about 31% of employees participating in training courses[177]. - Each new subcontractor receives one hour of safety and health induction training on site, focusing on safety standards and emergency procedures[177]. - The company has implemented a comprehensive human resources management policy to ensure competitive employee benefits and fair compensation practices[167]. - The company strictly adheres to employment regulations and provides a competitive benefits package, including medical and dental plans, retirement benefits, and various leave options[167]. - Safety officers evaluate the safety performance of internal employees and subcontractors every six months to determine the need for additional safety training[178]. - The company has established a list of 159 approved subcontractors and 270 approved suppliers as of March 31, 2019[182]. - The company has committed to a procurement policy that promotes fair competition, ensuring the best economic interests in terms of price, quality, delivery, and service[181]. - The company donated HKD 1,564,800 to various community initiatives, including health and youth education programs[193]. - The company actively encourages subcontractors and suppliers to promote corporate social responsibility activities[182]. - The company has a zero-tolerance policy towards bribery and corruption, with no legal cases reported against it for corruption during the reporting year[191]. - The company emphasizes the importance of public health during construction projects, recognizing its responsibility to stakeholders[184]. - The company has invested in upstream land development and downstream vertical integration of the supply chain to strengthen its market position[182].