[Chairman's Statement](index=4&type=section&id=Chairman%27s%20Statement) The Chairman's report details a net loss of approximately HKD 36.7 million due to economic headwinds, yet expresses optimism for future growth from public projects and policy shifts - The Group recorded a net loss of approximately **HKD 36.7 million** this year due to economic downturn, rising inflation, and continuous interest rate hikes[7](index=7&type=chunk) - The Group's core business, the 'Ten-Year Hospital Development Plan,' achieved new progress, securing a large public project and another hospital project for the continued supply and installation of gypsum block products[8](index=8&type=chunk) - The Chairman remains optimistic about long-term business growth, primarily due to the government's removal of property cooling measures and opportunities from major development plans like Kau Yi Chau Artificial Islands and the Northern Metropolis[9](index=9&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Market Outlook](index=5&type=section&id=Business%20Review%20and%20Market%20Outlook) The Group's revenue declined to HKD 102.5 million with a net loss of HKD 36.7 million amid market slowdown, yet secured major hospital projects and remains confident in the construction industry's long-term prospects Annual Performance Overview | Metric | Year Ended March 31, 2024 (Million HKD) | Year Ended March 31, 2023 (Million HKD) | | :--- | :--- | :--- | | Revenue | Approx. 102.5 | Approx. 189.4 | | Net Loss | Approx. 36.7 | Approx. 23.2 | - The Group was awarded a project with a contract value of approximately **HKD 142.5 million** and another hospital supply and installation project valued at approximately **HKD 29.7 million** under the 'Ten-Year Hospital Development Plan'[15](index=15&type=chunk) - The Group's demountable partition system business made progress, securing three public utility projects with a total contract value of approximately **HKD 67.0 million**[17](index=17&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) Total revenue declined 45.9% to HKD 102.5 million, with gross profit at HKD 9.4 million and margin at 9.2%, leading to an expanded net loss of HKD 36.7 million due to reduced revenue, absent subsidies, and increased impairment [Revenue](index=6&type=section&id=Revenue) Total revenue decreased by 45.9% to HKD 102.5 million, driven by a 41.3% decline in construction contracts and a 76.9% drop in building material sales Revenue by Business Segment | Business Segment | FY2024 (Million HKD) | FY2024 (%) | FY2023 (Million HKD) | FY2023 (%) | | :--- | :--- | :--- | :--- | :--- | | Construction Contracts | 96.9 | 94.5 | 165.2 | 87.2 | | Sales of Building Materials | 5.6 | 5.5 | 24.2 | 12.8 | | **Total** | **102.5** | **100.0** | **189.4** | **100.0** | - Revenue from timber flooring construction contracts decreased by approximately **HKD 58.3 million** to approximately **HKD 43.4 million** due to a slowdown in construction progress caused by the property market downturn[23](index=23&type=chunk) - Revenue from sales of gypsum block products decreased from approximately **HKD 22.1 million** to approximately **HKD 4.8 million** due to intense competition and budget constraints[24](index=24&type=chunk) [Gross Profit and Gross Margin](index=7&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 37.7% to HKD 9.4 million, while gross margin slightly increased from 8.0% to 9.2%, influenced by the higher margin of building material sales Gross Profit and Gross Margin Performance | Metric | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | Approx. 9.4 Million HKD | Approx. 15.1 Million HKD | -37.7% | | Gross Margin | Approx. 9.2% | Approx. 8.0% | +1.2pp | [Expenses, Costs, and Losses](index=8&type=section&id=Expenses%2C%20Costs%2C%20and%20Losses) Other income decreased due to absent government subsidies, administrative expenses rose 13.0% to HKD 38.2 million, and finance costs increased 52.9% to HKD 5.2 million, expanding net loss to HKD 36.7 million - Other income decreased from **HKD 4.2 million** to **HKD 1.1 million**, primarily due to the absence of government 'Employment Support Scheme' wage subsidies this year[30](index=30&type=chunk) - Administrative expenses increased by **13.0%** to **HKD 38.2 million**, mainly due to an increase in asset impairment provisions of approximately **HKD 5.4 million**[32](index=32&type=chunk) - Finance costs increased by **52.9%** to **HKD 5.2 million** due to rising interest rates[33](index=33&type=chunk) - Net loss increased from **HKD 23.2 million** to **HKD 36.7 million**, primarily attributable to reduced revenue and gross profit[35](index=35&type=chunk) [Liquidity and Financial Resources Review](index=9&type=section&id=Liquidity%20and%20Financial%20Resources%20Review) Total equity decreased to HKD 92.4 million and net current assets to HKD 35.8 million, yet cash increased, bank borrowings decreased, and solvency ratios improved, with bank financing secured by properties, insurance, and deposits Key Financial Ratios | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Gearing Ratio | 51.5% | 57.4% | | Current Ratio | 1.7 | 1.5 | Assets and Liabilities (As at March 31) | Metric | 2024 (Million HKD) | 2023 (Million HKD) | | :--- | :--- | :--- | | Total Equity | 92.4 | 129.1 | | Net Current Assets | 35.8 | 70.5 | | Cash and Cash Equivalents | 29.7 | 24.8 | | Bank Borrowings | 52.2 | 64.5 | - As at March 31, 2024, the Group's bank financing was secured by properties with a net book value of approximately **HKD 47.8 million**, life insurance policies of approximately **HKD 6.7 million**, and pledged bank deposits of approximately **HKD 8.6 million**[45](index=45&type=chunk) [Key Risks and Uncertainties](index=10&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces risks including cash flow volatility, inaccurate project estimates, non-fixed profit margins, reliance on new projects, foreign currency and interest rate risks, credit risk from contract assets, and high customer concentration - Cash flow pattern volatility: Net cash outflows may occur during initial construction phases due to upfront payments for materials and subcontractors, while client progress payments have a time lag[49](index=49&type=chunk) - Interest rate risk: As at March 31, 2024, approximately **HKD 52.2 million** of the Group's interest-bearing bank borrowings are at floating rates and are not hedged, meaning rising interest rates will increase interest expenses[55](index=55&type=chunk) - Credit risk: Contract assets with a net book value of approximately **HKD 64.1 million** constitute the largest credit risk, and the Group has appointed an independent professional valuer to assess expected credit losses[56](index=56&type=chunk)[57](index=57&type=chunk) - Customer concentration risk: The top five customers accounted for approximately **66.3%** of total revenue this year (2023: 72.4%), with the largest customer accounting for approximately **25.3%** (2023: 32.0%)[58](index=58&type=chunk) [Employees and Remuneration Policy](index=12&type=section&id=Employees%20and%20Remuneration%20Policy) As of March 31, 2024, the Group had 30 employees with total staff costs of approximately HKD 18.7 million, with remuneration based on market levels, performance, and benefits Employee and Cost Overview | Metric | As at March 31, 2024 | As at March 31, 2023 | | :--- | :--- | :--- | | Total Full-time and Part-time Employees | 30 | 34 | | Total Staff Costs | Approx. 18.7 Million HKD | Approx. 19.3 Million HKD | [Biographies of Directors and Senior Management](index=13&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management%20Details) [Biographies of Directors and Senior Management](index=13&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management%20Details) This section details the professional backgrounds, qualifications, and industry experience of the Group's executive, non-executive, and independent non-executive directors, and senior management, including key familial relationships - Executive Director Mr. Lo Wing Cheong is the Group's founder, Chairman, and Chief Executive Officer, with over **forty years** of experience in the Hong Kong construction industry[65](index=65&type=chunk) - Non-Executive Director Mr. Li Pui Ho, appointed in September 2023, possesses over **ten years** of experience in accounting, auditing, and corporate finance, and is the son-in-law of Chairman Mr. Lo Wing Cheong[66](index=66&type=chunk)[67](index=67&type=chunk) - Senior management includes Mr. Ho Shing Chak (Technical Advisor), Ms. Lo Pui Ying (Chief Operating Officer and daughter of the Chairman), and Mr. Chow Wing Wo (Financial Controller), all possessing extensive experience in construction, management, and finance[76](index=76&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Corporate Governance Report](index=17&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices](index=17&type=section&id=Corporate%20Governance%20Practices) The Group generally complied with the Corporate Governance Code, with one deviation where the Chairman and CEO roles are combined, which the Board believes facilitates swift decision-making without compromising accountability - The company has adopted and complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are combined and held by the same individual, Mr. Lo Wing Cheong[84](index=84&type=chunk) - The Board believes that Mr. Lo Wing Cheong holding both positions facilitates swift and effective decision-making and execution, and that the balance of power, accountability, and independent decision-making are not compromised given the participation of non-executive and independent non-executive directors[84](index=84&type=chunk) [Board of Directors](index=18&type=section&id=Board%20of%20Directors) The Board, comprising 2 executive, 1 non-executive, and 3 independent non-executive directors, held 7 meetings, ensuring diverse skills and compliance with Listing Rules through proper appointment and re-election processes - The Board of Directors comprises **6** members: **2** executive directors (Lo Wing Cheong, Fung Pik Mei), **1** non-executive director (Li Pui Ho), and **3** independent non-executive directors (Shu Wah Tung, Tam Wai Tak, Tam Wing Lok)[88](index=88&type=chunk) - The company has complied with the Listing Rules regarding the number of independent non-executive directors (at least three and comprising at least one-third of the Board) and their professional qualifications[91](index=91&type=chunk) Board Meeting Attendance (Annual) | Director Category | Board Meetings | Remuneration Committee | Audit Committee | Nomination Committee | Annual General Meeting | | :--- | :--- | :--- | :--- | :--- | :--- | | Executive Directors | 7/7 | 2/2 | Not Applicable | 2/2 | 1/1 | | Non-Executive Directors | 3/3, 4/4 | Not Applicable | 1/1, 2/2 | Not Applicable | 1/1 | | Independent Non-Executive Directors | 7/7 | 2/2 | 3/3 | 2/2 | 1/1 | [Board Committees](index=23&type=section&id=Board%20Committees) The company has Audit, Remuneration, and Nomination Committees, each with a majority of independent non-executive directors, overseeing financial reporting, remuneration policies, and Board structure and diversity, respectively - The Audit Committee is chaired by Mr. Shu Wah Tung, with members including **three** independent non-executive directors and **one** non-executive director, holding **three** meetings during the year to review financial statements and internal control systems[106](index=106&type=chunk)[107](index=107&type=chunk) - The Remuneration Committee is chaired by Mr. Tam Wing Lok, with members including **three** independent non-executive directors and **one** executive director, holding **two** meetings during the year to review remuneration packages[108](index=108&type=chunk) - The Nomination Committee is chaired by Mr. Lo Wing Cheong, with a majority of independent non-executive directors, holding **two** meetings during the year to review Board structure, diversity policy, and director nominations[109](index=109&type=chunk)[112](index=112&type=chunk) - The company has adopted a Board Diversity Policy with measurable objectives, such as at least **one** female director and at least **one-third** independent non-executive directors, all of which were met during the reporting period[111](index=111&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) [Risk Management and Internal Control](index=27&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board oversees the Group's risk management and internal control systems, which were independently reviewed by Zhonghui Anda Risk Management Limited this year and deemed effective and adequate - The Board of Directors is responsible for overseeing the Group's risk management and internal control systems, conducting annual effectiveness reviews[119](index=119&type=chunk) - This year, the Group appointed Zhonghui Anda Risk Management Limited (Zhonghui) as an independent consultant to assist with risk assessment and internal control review[122](index=122&type=chunk) - Based on Zhonghui's review findings and recommendations, the Board considers the Group's internal control and risk management systems to be effective and adequate[122](index=122&type=chunk) [Communication with Shareholders and Investor Relations](index=29&type=section&id=Communication%20with%20Shareholders%20and%20Investor%20Relations) The company prioritizes effective shareholder communication via its website and AGMs, outlining shareholder rights for meetings and inquiries, and disclosing a dividend policy based on financial performance and funding needs - The company has adopted a shareholder communication policy and maintains communication platforms such as its website (www.kwantaieng.com) and Annual General Meetings[126](index=126&type=chunk) - Shareholders holding not less than **10%** of the paid-up share capital have the right to request an Extraordinary General Meeting[128](index=128&type=chunk) - The company has adopted a dividend policy, where dividend decisions consider various factors including financial performance, shareholder interests, and funding needs, but without a predetermined dividend payout ratio[132](index=132&type=chunk)[133](index=133&type=chunk) [Directors' Report](index=31&type=section&id=Directors%27%20Report) [Business and Financial Summary](index=31&type=section&id=Business%20and%20Financial%20Summary) The Directors' Report summarizes the Group's building material sales and installation business, noting a loss for the period, no final dividend recommendation, distributable reserves of HKD 82.0 million, and high customer concentration - The Board does not recommend the payment of a final dividend for the year ended March 31, 2024[137](index=137&type=chunk) - As at March 31, 2024, the company's distributable reserves were approximately **HKD 82.0 million**[139](index=139&type=chunk) - High customer concentration: The top five customers accounted for **66.3%** of total revenue, with the largest customer accounting for **25.3%**[147](index=147&type=chunk) [Directors and Interests Disclosure](index=33&type=section&id=Directors%20and%20Interests%20Disclosure) This section details director appointments and re-elections, discloses directors' and substantial shareholders' interests, including controlling shareholders Mr. Lo Wing Cheong and Ms. Fung Pik Mei holding 73.5% through Helios, and confirms no significant director interests in material contracts - Mr. Li Pui Ho, Mr. Shu Wah Tung, and Mr. Tam Wai Tak will retire by rotation and offer themselves for re-election at the upcoming Annual General Meeting[154](index=154&type=chunk) Directors' and Substantial Shareholders' Long Positions in Shares | Shareholder Name/Entity | Capacity/Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lo Wing Cheong | Interest in controlled corporation | 588,000,000 | 73.50% | | Ms. Fung Pik Mei | Interest in controlled corporation | 588,000,000 | 73.50% | | Helios Enterprise Holding Limited | Beneficial owner | 588,000,000 | 73.5% | [Share Option Scheme](index=36&type=section&id=Share%20Option%20Scheme) The company adopted a ten-year share option scheme in December 2017 to incentivize contributors, detailing its terms and conditions, with no options granted as of the reporting period - The Share Option Scheme was adopted on December 19, 2017, with a **ten-year** validity, aiming to incentivize participants who contribute to the Group[166](index=166&type=chunk) - Since the adoption of the Share Option Scheme, no share options have been granted, exercised, cancelled, or lapsed as of the end of the reporting period[166](index=166&type=chunk) - The maximum number of share options that may be granted under the Share Option Scheme is **80,000,000**, representing **10%** of the total issued shares[166](index=166&type=chunk)[172](index=172&type=chunk) [Environmental, Social and Governance Report](index=40&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [Stakeholder Engagement and Materiality Assessment](index=41&type=section&id=Stakeholder%20Engagement%20and%20Materiality%20Assessment) The Group conducted a materiality assessment through stakeholder engagement, identifying key ESG issues for the year, including service quality, data protection, workplace safety, employee health, and product environmental attributes - Through communication with internal and external stakeholders, the Group identified the most material ESG issues for the year, covering three main categories: operating practices, employment practices, and environment[192](index=192&type=chunk)[194](index=194&type=chunk) - The most material ESG aspects include: * Ensuring service and product quality * Protecting customer personal data * Providing a safe working environment * Ensuring employee occupational health and safety * Focusing on enhancing the environmental elements of products [Environment](index=42&type=section&id=Environment) The Group, ISO 14001:2015 certified, significantly reduced greenhouse gas emissions this period, implementing energy, water, and waste management measures, promoting eco-friendly products, and developing climate change mitigation plans Greenhouse Gas Emissions (tonnes of CO2e) | Scope | 2024 (tonnes of CO2e) | 2023 (tonnes of CO2e) | | :--- | :--- | :--- | | Scope 1 (Direct Emissions) | 21.8 | 17.2 | | Scope 2 (Energy Indirect Emissions) | 43.8 | 41.5 | | Scope 3 (Other Indirect Emissions) | 188.9 | 2,070.6 | | **Total Emissions** | **254.5** | **2,129.3** | - Total greenhouse gas emissions significantly decreased, primarily due to fewer shipments of gypsum block products from Germany, leading to a substantial reduction in Scope 3 emissions[200](index=200&type=chunk) - The Group's timber flooring, timber doors, and furniture products are FSC-certified, while its gypsum block products received a Platinum rating under the Hong Kong Green Building Council's HK G-PASS[209](index=209&type=chunk) [Employment and Labor Practices](index=46&type=section&id=Employment%20and%20Labor%20Practices) The Group maintains an equal, safe, and healthy work environment for its 30 employees (60% female), with an OHSAS 18001 certified system, reporting 2 work-related injuries and no fatalities, while prohibiting child/forced labor and offering training Workforce Composition (As at March 31, 2024) | Category | Breakdown | Number of Employees | | :--- | :--- | :--- | | **Total Employees** | | **30** | | By Gender | Male | 12 | | | Female | 18 | | By Employment Type | Full-time | 29 | | | Part-time | 1 | Health and Safety Data | Metric | FY2024 | FY2023 | | :--- | :--- | :--- | | Lost Workdays Due to Work Injury | None | None | | Number of Work-Related Fatalities | None | None | | Number of Work-Related Injuries | 2 | 2 | - The Group strictly complies with the Employment Ordinance, prohibiting child and forced labor, and verifies identity documents during recruitment[222](index=222&type=chunk) [Operating Practices](index=49&type=section&id=Operating%20Practices) The Group maintains stringent supply chain management, holds ISO 9001:2015 certification for product quality, protects intellectual property and customer data, and adheres to clear codes of conduct and anti-corruption guidelines, with no related legal cases - The Group conducts annual performance evaluations for suppliers and subcontractors, covering environmental, health, and safety systems[223](index=223&type=chunk) - The Group has established an integrated management system, with its supplied and installed timber flooring, gypsum block, and timber door products having obtained ISO 9001:2015 certification since 2017[225](index=225&type=chunk) - The Group has established strict codes of conduct and anti-corruption guidelines, with no legal cases involving bribery, extortion, fraud, or money laundering reported during the period[231](index=231&type=chunk) [Independent Auditor's Report](index=53&type=section&id=Independent%20Auditor%27s%20Report) [Independent Auditor's Report](index=53&type=section&id=Independent%20Auditor%27s%20Report) Auditor Shinewing (Hong Kong) CPA Limited issued an unmodified opinion on the consolidated financial statements, highlighting key audit matters related to construction contract accounting and expected credit loss recognition for contract assets and trade receivables - The auditor issued an unmodified opinion on the consolidated financial statements[235](index=235&type=chunk) - Key Audit Matter One: Accounting for construction and engineering service contracts, involving significant management judgment and estimation regarding overall contract outcomes and stage of completion[238](index=238&type=chunk)[240](index=240&type=chunk) - Key Audit Matter Two: Recognition of expected credit losses (ECL) for contract assets and trade receivables, considered a key audit matter due to the high level of management judgment required for estimation and the material amounts involved[238](index=238&type=chunk)[244](index=244&type=chunk) [Consolidated Financial Statements](index=58&type=section&id=Consolidated%20Financial%20Statements) [Key Financial Statements](index=58&type=section&id=Key%20Financial%20Statements) The Group reported revenue of HKD 102.5 million (down 45.9%) and a net loss of HKD 36.72 million, with total assets at HKD 169.5 million, total liabilities at HKD 77.18 million, and total equity at HKD 92.37 million, resulting in a net cash increase of HKD 4.93 million FY2024 Key Financial Data (Consolidated) | Metric | Amount (Thousand HKD) | | :--- | :--- | | **Consolidated Statement of Profit or Loss:** | | | Revenue | 102,540 | | Loss Before Tax | (36,654) | | Loss for the Year | (36,717) | | **Consolidated Statement of Financial Position (Period-end):** | | | Total Assets | 169,542 | | Total Liabilities | 77,176 | | Total Equity | 92,366 | | **Consolidated Statement of Cash Flows:** | | | Net Cash from Operating Activities | 24,288 | | Net Cash Used in Investing Activities | (701) | | Net Cash Used in Financing Activities | (18,660) | [Notes to the Consolidated Financial Statements](index=64&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies, key estimates, and financial item specifics, covering revenue recognition, financial instrument risk management, segment information, increased contract asset impairment, secured floating-rate bank borrowings, and director/executive remuneration - Revenue recognition: Revenue from construction contracts is recognized over time, with progress measured based on the input method (proportion of costs incurred to estimated total costs)[290](index=290&type=chunk)[292](index=292&type=chunk) - Financial risks: The Group is primarily exposed to currency risk from RMB and Euro, and interest rate risk from floating-rate bank borrowings; credit risk mainly arises from contract assets and trade receivables[363](index=363&type=chunk)[369](index=369&type=chunk)[372](index=372&type=chunk) - Contract assets: As at March 31, 2024, the net book value of contract assets was **HKD 64.074 million**, with impairment losses recognized during the year amounting to **HKD 5.887 million**, a significant increase from **HKD 0.367 million** last year[453](index=453&type=chunk)[458](index=458&type=chunk) - Bank borrowings: As at March 31, 2024, total bank borrowings amounted to **HKD 52.21 million**, all of which are secured and bear interest at floating rates[467](index=467&type=chunk) [Five-Year Financial Summary](index=125&type=section&id=Five-Year%20Financial%20Summary) [Five-Year Financial Summary](index=125&type=section&id=Five-Year%20Financial%20Summary) This summary presents the Group's key financial data from 2020 to 2024, showing revenue decline and consecutive losses in 2023-2024, with total assets and equity also trending downwards after 2022 Five-Year Performance Summary (Thousand HKD) | Year Ended March 31 | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 102,540 | 189,429 | 337,372 | 311,754 | 157,046 | | Loss for the Year / Profit for the Year | (36,717) | (23,206) | 13,742 | 11,300 | (23,820) | Five-Year Assets and Liabilities Summary (Thousand HKD) | As at March 31 | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 169,542 | 231,158 | 252,691 | 233,327 | 213,641 | | Total Liabilities | 77,176 | 102,075 | 96,402 | 76,780 | 68,394 | | Total Equity | 92,366 | 129,083 | 156,289 | 156,547 | 145,247 |

Financial Performance - For the fiscal year ending March 31, 2024, the company reported revenue of HKD 102.5 million, a decrease of 46% compared to HKD 189.4 million in the previous year[11]. - Gross profit for the same period was HKD 9.4 million, down from HKD 15.1 million, reflecting a decline of approximately 37%[11]. - The company recorded a net loss after tax of HKD 36.7 million, compared to a net loss of HKD 23.2 million in the prior year, indicating a worsening of 58%[11]. - Basic and diluted loss per share was HKD 4.59, compared to HKD 2.90 in the previous year, representing an increase of 58% in losses per share[11]. - Total revenue decreased by approximately HKD 86.9 million or 45.9% to about HKD 102.5 million for the year ending March 31, 2024, compared to HKD 189.4 million for the previous year[26]. - Revenue from construction contracts fell from approximately HKD 165.2 million to about HKD 96.9 million, a decrease of approximately HKD 68.3 million or 41.3%[27]. - The net loss for the year ended March 31, 2024, was approximately HKD 36.7 million, compared to a net loss of HKD 23.2 million for the previous year[49]. - The gross profit decreased by approximately HKD 5.7 million or 37.7% to about HKD 9.4 million for the year ended March 31, 2024, while the gross profit margin slightly increased to approximately 9.2%[53]. - The group reported a pre-tax loss of HKD 23,183,000 for the current period[146]. Assets and Liabilities - As of March 31, 2024, the company's cash and bank balances were approximately HKD 29.7 million, while current bank borrowings amounted to HKD 52.2 million[17]. - Total assets less current liabilities were HKD 92.7 million, down from HKD 130.1 million in the previous year, indicating a decrease of approximately 29%[15]. - The company’s total liabilities decreased from HKD 101.1 million to HKD 76.8 million, a reduction of approximately 24%[15]. - The asset-liability ratio was reported at 57.4% as of the reporting period, compared to 51.5% in the previous year[90]. - The group's net current assets as of March 31, 2024, are approximately HKD 35.8 million, down from HKD 70.5 million in 2023, indicating a reduction of about 49%[152]. Cash Flow and Financing - The company aims to ensure sufficient working capital for normal operations over the next twelve months based on estimated future cash flows[17]. - Bank borrowings decreased from approximately HKD 64.5 million as of March 31, 2023, to about HKD 52.2 million as of March 31, 2024[49]. - The group anticipates future operations and expansion plans will primarily be funded through operating cash flows and bank borrowings[91]. - The group primarily funds its working capital and capital requirements through bank borrowings and cash generated from operating activities[151]. Expenses - The company’s administrative expenses increased to HKD 38.2 million from HKD 33.8 million, reflecting a rise of approximately 13%[14]. - The group reported a total employee cost of HKD 18,680,000 in 2024, down from HKD 19,342,000 in 2023, a reduction of 3.4%[59]. - Financial costs rose to approximately HKD 5,200,000 in 2024, an increase of 52.9% from HKD 3,400,000 in 2023[63]. - The group recorded a significant increase in impairment losses, which contributed to the rise in administrative expenses[84]. Revenue Sources - Revenue from major customers included HKD 12.227 million from Customer A and HKD 25.966 million from Customer C for the year ended March 31, 2024[39]. - The group's revenue from sales of building materials decreased from approximately HKD 24.2 million for the year ended March 31, 2023, to approximately HKD 5.6 million for the year ended March 31, 2024, representing a decline of about 76.9%[129]. - Revenue from gypsum brick products fell from approximately HKD 22.1 million for the year ended March 31, 2023, to approximately HKD 4.8 million for the year ended March 31, 2024[129]. - The group reported external sales of HKD 5.6 million in building materials and HKD 96.9 million in construction and engineering services for a total revenue of HKD 102.5 million for the year ended March 31, 2024[135]. Corporate Governance - The group has adopted corporate governance guidelines to ensure shareholder interests and enhance corporate value[103]. - The chairman and CEO roles are held by the same individual, Mr. Lu, which deviates from corporate governance guidelines[104]. - The audit committee has reviewed and recommended the approval of the consolidated financial statements for the year ending March 31, 2024[107]. - The group is committed to maintaining high levels of corporate governance to protect shareholder interests[103]. Market Conditions and Future Outlook - The group anticipates continued demand for antibacterial crystal wall panels due to increased public health awareness post-COVID-19[22]. - The group is focusing on vertical integration and diversifying its business segments in the renovation industry[23]. - The group may face delays and cost overruns due to various factors, including material shortages and adverse weather conditions[110]. - The group continues to monitor currency fluctuations and will take proactive measures as necessary[112].

Financial Performance - For the six months ended September 30, 2023, the company's revenue decreased to approximately HKD 56.8 million, a decline of about 51.9% compared to approximately HKD 118.0 million for the same period in 2022[8]. - The company reported a net loss of approximately HKD 16.9 million for the six months ended September 30, 2023, compared to a net loss of HKD 3.0 million for the same period in 2022[8]. - Revenue from construction contracts decreased by approximately 49.5 million HKD or 48.3% to about 53.0 million HKD for the six months ended September 30, 2023, compared to approximately 102.5 million HKD for the same period in 2022[21]. - Revenue from the sale of building materials dropped by approximately 11.7 million HKD or 75.5% to about 3.8 million HKD for the six months ended September 30, 2023, down from approximately 15.5 million HKD in the prior year[22]. - Gross profit fell by approximately 11.5 million HKD or 80.6% to about 2.8 million HKD for the six months ended September 30, 2023, with the gross profit margin declining from approximately 12.1% to about 4.9%[26]. - The company reported a loss before tax of HKD 16,856,000, compared to a loss of HKD 3,009,000 in the previous year, indicating a significant increase in losses[85]. - Basic and diluted loss per share was HKD 2.11, compared to HKD 0.38 in the same period last year, reflecting a worsening financial position[85]. - The company reported a total segment profit of HKD 2,434,000 for the six months ended September 30, 2023, compared to HKD 13,898,000 in the same period of 2022, reflecting a decrease of 82.5%[106]. Cash Flow and Liquidity - As of September 30, 2023, the company held cash and cash equivalents of HKD 23.7 million, down from HKD 24.8 million as of March 31, 2023[8]. - The company experienced a net cash inflow from operating activities of HKD 5,145,000, compared to a net cash outflow of HKD 3,289,000 in the previous year[94]. - The company reported a net cash outflow from financing activities of HKD 5,969,000, contrasting with a net cash inflow of HKD 3,063,000 in the previous year[94]. - The debt-to-equity ratio increased to 56.2% as of September 30, 2023, from 51.5% as of March 31, 2023[42]. - The current ratio decreased slightly to 1.6 as of September 30, 2023, from 1.7 as of March 31, 2023[42]. Assets and Liabilities - Total equity as of September 30, 2023, was approximately 112.2 million HKD, down from about 129.1 million HKD as of March 31, 2023[37]. - The total assets of the company as of September 30, 2023, were HKD 201,043,000, down from HKD 231,158,000 as of March 31, 2023[110]. - The total liabilities decreased from HKD 102,075,000 as of March 31, 2023, to HKD 88,843,000 as of September 30, 2023[110]. - The group's trade receivables decreased to HKD 14,438,000 as of September 30, 2023, down from HKD 40,037,000 as of March 31, 2023, reflecting a reduction in outstanding customer payments[123]. - The group’s expected credit loss provision for trade receivables remained unchanged at HKD 1,835,000 as of September 30, 2023, consistent with the previous reporting period[127]. Operational Developments - The company is currently involved in a community health center construction project under the ten-year hospital development plan, supplying and installing approximately 20,000 square meters of gypsum products[12]. - The company has launched new products, including antibacterial and environmentally friendly synthetic wall panels, which are expected to see increased demand due to heightened public health awareness[13]. - The company is exploring the renovation industry to leverage its experience in interior installation projects, aiming for vertical integration and business diversification[15]. - The company aims to secure contracts with substantial project values despite a decrease in contract amounts due to intensified competition and budget tightening by major developers[16]. - The company believes that the long-term outlook for the construction industry in Hong Kong is favorable, positioning itself to benefit from ongoing government land development initiatives[15]. - The company is focusing on improving its gypsum board installation technology to meet enhanced construction standards, thereby maintaining its competitive edge[12]. - The company is actively working on public utility projects alongside its ongoing hospital projects, indicating a strategic focus on expanding its market presence[13]. Governance and Compliance - The company has adopted the corporate governance code and has complied with it, except for the separation of roles between the Chairman and CEO, which are held by Mr. Lu[70]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2023, and believes they comply with applicable accounting standards[74]. - The company confirmed compliance with the securities trading standards code by all directors and executives for the six months ending September 30, 2023[72]. - The audit committee consists of three independent non-executive directors and one non-executive director, ensuring a balance of power and accountability[70]. Shareholder Information - As of September 30, 2023, Mr. Lu and Ms. Feng each hold 588,000,000 shares, representing 73.5% of the company's equity[78]. - The company did not declare an interim dividend for the six months ending September 30, 2023, consistent with the previous period[75]. - The group did not declare any dividends for the six months ended September 30, 2023, compared to HKD 4,000,000 paid as a final dividend for the year ended 2022[118]. - The company has not granted or agreed to grant any share options under its share option scheme since its adoption[84]. - The number of share options available for grant under the share option scheme remained at 80,000,000 as of April 1, 2023, and September 30, 2023[84]. Risks and Challenges - The group faces cash flow risks due to potential net cash outflows before receiving payments from clients, especially during the early stages of projects[48]. - The group has not hedged its interest rate risk, with interest-bearing bank borrowings amounting to approximately HKD 61.6 million as of September 30, 2023[57]. - The group continues to monitor foreign exchange risks as some transactions are denominated in currencies other than its functional currency, the Hong Kong dollar[56]. - The group incurred a foreign exchange loss of HKD 37,000 for the six months ended September 30, 2023, compared to a foreign exchange gain of HKD 308,000 for the same period in 2022[116].

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，概不對因公告全 部或任何部份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。 Twintek Investment Holdings Limited 乙 德 投 資 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6182） 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 財務摘要 截至九月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 收益 56.8百萬港元 118.0百萬港元 毛利 2.8百萬港元 14.3百萬港元 除稅後虧損淨額 16.9百萬港元 3.0百萬港元 ...

Financial Performance - The company recorded a net loss of approximately HKD 23.2 million for the fiscal year ending March 31, 2023, compared to a net profit of approximately HKD 13.7 million in the previous year[7]. - Revenue decreased to approximately HKD 189.4 million for the fiscal year ending March 31, 2023, down from approximately HKD 337.4 million in the previous year[11]. - The company's total revenue decreased from approximately HKD 337.4 million in the year ended March 31, 2022, to approximately HKD 189.4 million in the year ended March 31, 2023, representing a decline of about 43.9%[16]. - Revenue from construction contracts fell from approximately HKD 288.9 million to approximately HKD 165.2 million, a decrease of about HKD 123.7 million or approximately 42.8%[17]. - Revenue from the sale of building materials decreased by approximately HKD 24.3 million or about 50.1%, from approximately HKD 48.5 million to approximately HKD 24.2 million[18]. - The company's gross profit dropped from approximately HKD 56.1 million to approximately HKD 15.1 million, a decline of about 73.1%[21]. - The gross profit margin decreased from approximately 16.6% to about 8.0%[21]. - Selling and service costs were approximately HKD 174.3 million, down about 38.0% from approximately HKD 281.3 million in the previous year[20]. - The company's financial costs increased by approximately 156.7%, from about HKD 1.3 million to approximately HKD 3.4 million[27]. - The group did not recommend a final dividend for the year ended March 31, 2023, compared to a final dividend of HK$0.005 per share in 2022[122]. - As of March 31, 2023, the company's distributable reserves were approximately HK$121.0 million, down from HK$142.7 million in 2022[124]. Market Position and Projects - The company completed a major public project as part of its ten-year hospital development plan, which will enhance its market share in public works[7]. - A new series of gypsum products was launched, offering specifications similar to existing German products but at a more competitive price, receiving positive market feedback[7]. - The company is involved in several large residential projects in East Kowloon and Tseung Kwan O, with optimism for long-term growth due to government initiatives to increase land and housing supply[8]. - The company has been awarded a community health center construction project under the ten-year hospital development plan, responsible for supplying and installing approximately 20,000 square meters of gypsum products[12]. - The company has also secured another public utility project, supplying approximately 5,000 square meters of gypsum products, showcasing its capabilities to developers[12]. - The competitive landscape has intensified, with competitors adopting aggressive pricing strategies, impacting the company's revenue from flooring projects[11]. - The company is focusing on improving its gypsum installation systems to meet enhanced construction standards, maintaining its competitive edge[12]. - The introduction of new noise reduction guidelines by the Environmental Protection Department is expected to benefit the company's gypsum products that comply with these standards[12]. Financial Position and Equity - Total equity as of March 31, 2023, was approximately HKD 129.1 million, down from HKD 156.3 million in 2022, representing a decrease of about 17.2%[31]. - Net current assets as of March 31, 2023, were approximately HKD 70.5 million, a decline from HKD 96.7 million in 2022, indicating a decrease of about 27.1%[32]. - Cash and cash equivalents as of March 31, 2023, were approximately HKD 24.8 million, compared to HKD 28.2 million in 2022, reflecting a decrease of about 12.0%[33]. - Bank borrowings as of March 31, 2023, amounted to approximately HKD 64.5 million, an increase from HKD 48.5 million in 2022, representing a rise of about 33.0%[35]. - The debt-to-equity ratio increased to 51.5% in 2023 from 31.1% in 2022, indicating a significant rise in leverage[36]. - The current ratio decreased to 1.7 in 2023 from 2.0 in 2022, suggesting a decline in short-term liquidity[36]. - The company anticipates future operations and expansion plans will primarily be funded through cash generated from operations and bank borrowings[38]. - As of March 31, 2023, the company had contingent liabilities related to performance guarantees amounting to approximately HKD 14.7 million, up from HKD 12.8 million in 2022[41]. - Contract assets as of March 31, 2023, were valued at approximately HKD 92.8 million, down from HKD 117.5 million in 2022, indicating a decrease of about 21.0%[50]. Corporate Governance - The board emphasizes the importance of corporate culture in operations, promoting values such as excellence and sustainable development[72]. - The board has established three committees, including the Audit Committee, Nomination Committee, and Remuneration Committee, to oversee various aspects of corporate governance[74]. - The company has complied with listing rules regarding the appointment of at least three independent non-executive directors, ensuring proper professional qualifications and financial expertise[77]. - The company has implemented appropriate liability insurance for directors against legal actions, with annual reviews of the insurance coverage[75]. - The board consists of a mix of executive and independent non-executive directors, ensuring a balance of power and accountability[76]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[73]. - The company has a diverse board with independent directors contributing to balanced decision-making and accountability[74]. - All independent non-executive directors have confirmed their independence according to Listing Rule 3.13, ensuring a broad range of valuable business experience and expertise on the board[78]. - The company has established mechanisms to ensure independent viewpoints, including enhanced recruitment procedures for independent non-executive directors and annual reviews of their contributions[78]. - Each director has participated in continuous professional development, with training courses attended by all executive and non-executive directors[81]. - The board has adopted a nomination policy effective from January 1, 2019, to ensure a balanced skill set and diversity among board members[85]. - The company holds at least four board meetings annually, with provisions for electronic participation to ensure all directors can attend[86]. - The attendance record for board meetings shows that all directors attended 100% of the meetings held during the year ending March 31, 2023[88]. - The company has adopted the standard code of conduct for securities trading, confirming compliance by all directors for the year ending March 31, 2023[89]. - The audit committee held two meetings during the fiscal year ending March 31, 2023, to review the financial statements and auditor's reports[93]. - The remuneration committee conducted one meeting to review the discretionary bonuses and remuneration of executive directors and senior management for the fiscal year ending March 31, 2023[96]. - The nomination committee held two meetings to review the board's structure, size, and diversity policy during the fiscal year ending March 31, 2023[97]. - The company has adopted a board diversity policy, focusing on various aspects including gender, age, and professional experience[98]. - The company plans to maintain at least one female director on the board to ensure gender diversity[99]. - The remuneration committee's recommendations for executive compensation are based on the group's operational performance and individual contributions[96]. - The audit committee confirmed no disagreements regarding the reappointment of the external auditor for the upcoming fiscal year[93]. - The company complies with the requirement that at least one-third of the board consists of independent non-executive directors[100]. - The external auditor's fees for the year ended March 31, 2023, totaled HKD 925,000, with HKD 780,000 for assurance services and HKD 145,000 for non-assurance services[104]. - The company has established a clear level of responsibilities and reporting procedures to ensure assets are not misused and to identify key risks affecting performance[107]. - The independent review of the internal control and risk management systems concluded that they are effective and adequate, as reported to the audit committee and board[107]. - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure timely disclosure of information[110]. - The company secretary confirmed compliance with the relevant training requirements, having completed no less than 15 hours of professional training during the year[109]. - The company has a non-competition agreement in place with its controlling shareholders, confirming no engagement in competing businesses as of March 31, 2023[102]. - The audit committee assists the board in overseeing financial, operational, compliance, and risk management controls[107]. - The company has adopted a shareholder communication policy to establish a two-way relationship and facilitate effective communication[110]. - The internal audit function is responsible for reviewing key operational processes and ensuring adherence to risk management policies[105]. - The company encourages shareholder participation in meetings to ensure their rights are respected and effectively exercised[113]. Environmental, Social, and Governance (ESG) Initiatives - The company aims for long-term sustainable growth while safeguarding stakeholder interests, emphasizing transparency and accountability in its ESG practices[173]. - The company has established communication channels with key stakeholders, including shareholders, employees, suppliers, customers, and the community, to address their expectations and concerns[178]. - The company is committed to minimizing its operational negative impact on the environment and has implemented policies and procedures to achieve its environmental goals[181]. - The company regularly reviews sustainability issues and their impact on operations to ensure ongoing relevance and importance[182]. - The company engages with stakeholders to understand their needs and expectations, facilitating better ESG performance and risk management[177]. - The company’s environmental policy has been communicated to all relevant personnel to ensure awareness and contribution towards achieving environmental objectives[181]. - Total greenhouse gas emissions for the year ended March 31, 2023, were 2,129.3 tons of CO2 equivalent, a decrease from 4,519.5 tons of CO2 equivalent for the year ended March 31, 2022, attributed to reduced sales of gypsum products[185]. - Total greenhouse gas emissions decreased from 4,519.5 tons CO2 in 2022 to 2,129.3 tons CO2 in 2023, representing a reduction of approximately 53%[186]. - Scope 1 emissions from gasoline consumption decreased from 19.7 tons CO2 (0.4%) in 2022 to 17.2 tons CO2 (0.8%) in 2023[186]. - Scope 2 emissions from purchased electricity increased from 40.4 tons CO2 (0.9%) in 2022 to 41.5 tons CO2 (2.0%) in 2023[186]. - The company consumed 52,510 kWh of electricity per employee in 2023, an increase from 51,126 kWh in 2022, indicating a rise of approximately 2.7%[190]. - Gasoline consumption per employee decreased from 213.72 liters in 2022 to 186.99 liters in 2023, a reduction of about 12.5%[190]. - Water consumption per employee increased slightly from 4.76 cubic meters in 2022 to 4.91 cubic meters in 2023[190]. - The company has committed to maintaining indoor temperatures between 24-26ºC during the summer months as part of energy-saving measures[190]. - The company has achieved a platinum rating for its gypsum brick products under the Hong Kong Green Building Council's green product certification[193]. - No hazardous waste was generated in the fiscal year ending March 31, 2023, and no significant non-compliance with environmental laws was reported[187][194]. - The company is actively promoting water conservation awareness among employees, resulting in increased consciousness regarding water usage[191]. Human Resources and Labor Practices - The group is committed to optimizing its human resource management system to promote fairness and equality in the workplace[199]. - The group has established human resource policies to ensure the elimination of discrimination based on age, gender, marital status, family status, sexual orientation, disability, race, nationality, or religion[199]. - The group confirms no serious violations of applicable labor laws and regulations in Hong Kong for the fiscal year ending March 31, 2023[199]. - As of March 31, 2023, the gender ratio among employees was 44% male and 56% female, achieving gender diversity within the workforce[99]. - The board has achieved gender diversity with at least one female executive director as of March 31, 2023[99].

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之內容概不 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 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 Twintek Investment Holdings Limited 乙 德 投 資 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6182） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 之 年 度 業 績 財務摘要 截至三月三十一日止年度 二零二三年 二零二二年 收益 189.4百萬港元 337.4百萬港元 毛利 15.1百萬港元 56.1百萬港元 除稅後純（損）利 (23.2百萬港元) 13.7百萬港元 每股基本（虧損）盈利 (2.90港仙) 1.72港仙 ...

Financial Performance - The company's revenue decreased to approximately HKD 118.0 million for the six months ended September 30, 2022, down about 28.2% from approximately HKD 164.3 million for the same period in 2021[15]. - The net loss for the six months ended September 30, 2022, was approximately HKD 3.0 million, compared to a net profit of approximately HKD 9.1 million for the same period in 2021[6]. - Revenue from construction contracts decreased by approximately HKD 24.9 million or about 19.5% to approximately HKD 102.5 million for the six months ended September 30, 2022[18]. - Revenue from the sale of building materials decreased by approximately HKD 21.4 million or about 58.0% to approximately HKD 15.5 million for the six months ended September 30, 2022[20]. - Gross profit decreased by approximately HKD 17.4 million or about 55.0% to approximately HKD 14.3 million, with the gross profit margin declining from approximately 19.3% to approximately 12.1%[24]. - The total comprehensive loss attributable to owners of the company for the period was HKD 3,023 thousand, contrasting with a profit of HKD 9,118 thousand in the prior year[82]. - Basic and diluted loss per share was HKD (0.38), compared to earnings of HKD 1.14 per share in the same period last year[82]. - The group reported a total loss before tax of HKD 3,009,000 for the six months ended September 30, 2022, compared to a profit of HKD 9,248,000 for the same period in 2021[121]. Revenue Breakdown - Revenue from construction contracts was HKD 102.5 million, accounting for 86.9% of total revenue, while sales of building materials contributed HKD 15.5 million, or 13.1%[17]. - Revenue for the six months ended September 30, 2022, was HKD 117,964 thousand, a decrease from HKD 164,269 thousand for the same period in 2021, representing a decline of approximately 28%[82]. - Revenue from the sale of gypsum bricks was HKD 14,372,000, down 35.2% from HKD 22,169,000 in the previous year[110]. - Revenue from construction and engineering services was HKD 102,462,000, a decrease of 19.6% from HKD 127,354,000 in the prior year[121]. Project Developments - The company has secured a community health center construction project under the ten-year hospital development plan, supplying and installing approximately 20,000 square meters of gypsum products[10]. - The company completed a utility project supplying gypsum products during the six months ended September 30, 2022, and has secured another project for approximately 5,000 square meters of gypsum products post-reporting date[10]. - The company aims to leverage its experience in interior installation projects to achieve vertical integration and diversify its business segments[12]. - The company anticipates benefiting from the long-term housing demand driven by the Hong Kong government's continued land resource development[12]. Financial Position - Total equity as of September 30, 2022, was approximately HKD 149.3 million, down from approximately HKD 156.3 million as of March 31, 2022[35]. - Current assets net value was approximately HKD 89.4 million as of September 30, 2022, compared to approximately HKD 96.7 million as of March 31, 2022[35]. - The debt-to-equity ratio increased to 38.8% as of September 30, 2022, from 31.1% as of March 31, 2022[38]. - The current ratio was 1.9 as of September 30, 2022, slightly down from 2.0 as of March 31, 2022[38]. - The group's total assets as of September 30, 2022, were HKD 255,808,000, an increase from HKD 252,691,000 as of March 31, 2022[124]. - The total liabilities of the group increased to HKD 106,542,000 as of September 30, 2022, compared to HKD 96,402,000 as of March 31, 2022[125]. Corporate Governance - The company has adopted the corporate governance code and has complied with it, except for the combined roles of chairman and CEO held by Mr. Lu[66]. - The audit committee, consisting of three independent non-executive directors and one non-executive director, reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2022[71]. - The company confirmed compliance with the standard code for securities transactions by directors during the six months ended September 30, 2022[69]. - The company maintains a high level of corporate governance to protect shareholder interests and enhance corporate value[66]. Cash Flow and Financing - The group faced cash flow risks due to potential net cash outflows before receiving payments from clients, particularly during the early stages of projects[45]. - The group has no hedging against interest rate risks, with interest-bearing bank borrowings amounting to approximately HKD 55.3 million as of September 30, 2022[54]. - The group's bank financing amounted to approximately HKD 50.3 million, a slight decrease from HKD 51.1 million as of March 31, 2022[40]. - The net cash used in operating activities was HKD (3,289) thousand, an improvement from HKD (11,504) thousand in the previous period[99]. Employee and Management Costs - Employee costs for the six months ended September 30, 2022, totaled approximately HKD 8.7 million, an increase from HKD 8.4 million for the same period in 2021[63]. - The short-term benefits for key management personnel amounted to HKD 3,746,000 for the six months ended September 30, 2022, compared to HKD 3,643,000 for the same period in the previous year, an increase of 2.8%[177]. Dividends and Shareholder Information - The company did not recommend an interim dividend for the six months ended September 30, 2022, compared to HK$0.75 per share for the same period last year[72]. - The chairman and CEO, Mr. Lu, holds 588,000,000 shares, representing 73.5% of the company's equity[74]. - The total number of shares issued and paid up remained at 800,000,000 as of September 30, 2022[169].

Financial Performance - The company's revenue for the fiscal year ending March 31, 2022, increased to approximately HKD 337.4 million, up from HKD 311.8 million in the previous year, representing a growth of about 8.5%[13] - Net profit rose to approximately HKD 13.7 million, compared to HKD 11.3 million in the prior year, marking an increase of approximately 21.2%[8] - The company's total revenue increased from approximately HKD 311.8 million in the year ended March 31, 2021, to approximately HKD 337.4 million in the year ended March 31, 2022, representing an increase of about HKD 25.6 million or approximately 8.2%[20] - Revenue from construction contracts rose from approximately HKD 268.7 million to approximately HKD 288.9 million, an increase of about HKD 20.2 million or approximately 7.5%[22] - Revenue from the sale of building materials increased from approximately HKD 43.1 million to approximately HKD 48.5 million, a rise of about HKD 5.4 million or approximately 12.6%[23] - The gross profit increased from approximately HKD 48.8 million to approximately HKD 56.1 million, representing an increase of about HKD 7.3 million or approximately 15.0%[26] - The gross profit margin improved from approximately 15.7% to approximately 16.6%[26] - Other income rose from approximately HKD 3.6 million to approximately HKD 4.3 million, an increase of about HKD 0.7 million or approximately 19.0%[28] Contracts and Projects - The company secured contracts for two public service projects with a total contract value exceeding HKD 50 million, expected to commence in January 2023[8] - The company continues to focus on large-scale public projects, generating approximately HKD 143.9 million in revenue from two major projects during the fiscal year[6] - The company has secured a contract worth approximately HKD 109.3 million under the ten-year hospital development plan, supplying and installing over 100,000 square meters of gypsum products[15] - The company is currently bidding for two new projects under the ten-year hospital development plan, with a total contract value of no less than HKD 200 million[15] Future Outlook - The company anticipates a positive long-term growth outlook due to government initiatives to increase land and housing supply in Hong Kong[8] - The company remains optimistic about future business growth despite short-term uncertainties related to COVID-19[8] - The company anticipates continued demand for its antibacterial crystal wall panels due to increasing public health and safety awareness amid the COVID-19 pandemic[16] Expenses and Financial Position - Sales and distribution expenses increased from approximately HKD 8.8 million for the year ended March 31, 2021, to approximately HKD 9.3 million for the year ended March 31, 2022, representing a rise of about 5.2%[30] - Administrative expenses rose from approximately HKD 30.9 million for the year ended March 31, 2021, to approximately HKD 34.5 million for the year ended March 31, 2022, an increase of about 11.7%[31] - Cash and cash equivalents decreased from approximately HKD 41.6 million as of March 31, 2021, to approximately HKD 28.2 million as of March 31, 2022[39] - Bank borrowings increased from approximately HKD 35.9 million as of March 31, 2021, to approximately HKD 48.5 million as of March 31, 2022[40] - Total equity as of March 31, 2022, was approximately HKD 156.3 million, slightly down from approximately HKD 156.5 million as of March 31, 2021[36] - Current assets net value increased from approximately HKD 95.2 million as of March 31, 2021, to approximately HKD 96.7 million as of March 31, 2022[37] - Contract assets amounted to approximately HKD 117.5 million as of March 31, 2022, compared to approximately HKD 74.6 million as of March 31, 2021, indicating a significant increase in credit risk[54] Corporate Governance - The company presented its corporate governance report for the year ending March 31, 2022[78] - The company has adopted a corporate governance code to enhance shareholder interests and accountability, with the chairman and CEO roles currently held by the same individual, Mr. Lu Yongchang[79] - The board of directors is responsible for overall leadership and strategic decision-making, with three committees established for audit, nomination, and remuneration oversight[80] - All directors have participated in continuous professional development, ensuring they are well-informed about applicable laws and regulations[87] - The company has implemented a nomination policy to ensure a balanced board in terms of skills, experience, and diversity since January 1, 2019[92] - The board consists of executive, non-executive, and independent non-executive directors, with a commitment to maintaining independence and diversity among its members[83] - The company has arranged appropriate liability insurance for directors against legal actions, which is reviewed annually[81] - Independent non-executive directors have confirmed their independence according to listing rules, contributing valuable experience and knowledge to the board[85] Employee and Management Information - The total employee costs for the year ended March 31, 2022, amounted to approximately HKD 19.2 million, an increase from HKD 17.9 million in the previous year[59] - The average number of full-time employees decreased to 32 from 34 in the previous year, while part-time employees remained at 2[59] - The management team has extensive experience in the construction industry, with the chairman having over 40 years of experience[65] - 温浩然先生 has over 21 years of experience in auditing and financial management, serving as the CFO and company secretary of Man King Holdings Limited since September 2014[66] - 舒华东先生 has over 25 years of experience in auditing, corporate finance, and financial management, previously serving as CFO for multiple listed companies[69] - 譚偉德先生 has over 15 years of experience in auditing, accounting, and financial management, currently serving as CFO and company secretary of Ding Fung Group Holdings Limited since January 2013[71] - 何承澤先生 has over 40 years of experience in architecture and project management, providing technical advice for the group since April 2017[74] - 盧沛盈女士 has been with the group since September 2016, currently serving as the operations director, overseeing internal control policies[75] - 周永和先生 has over 15 years of experience in auditing and accounting, serving as the CFO and company secretary since April 2019[76] Shareholder Information - A final dividend of HKD 0.5 per share is proposed, pending approval at the upcoming annual general meeting[10] - The company declared an interim dividend of HKD 0.75 per share, totaling HKD 6,000,000 for the year ended March 31, 2022[140] - The company's distributable reserves as of March 31, 2022, were approximately HKD 142.7 million, a decrease from HKD 145.1 million in the previous year[142] - As of March 31, 2022, the top five customers accounted for approximately 69.9% of the total revenue, with the largest customer contributing about 38.7%[56] - The top five suppliers represented about 49.7% of total sales and service costs, an increase from 45.1% in the previous year[150] ESG and Community Engagement - The board confirmed its responsibility for the integrity of the ESG report, emphasizing the commitment to sustainable growth while considering environmental and social responsibilities[193] - The ESG report covers the operations of the group in the sale of construction materials and provision of construction and engineering services for the fiscal year ending March 31, 2022[194] - The company participates in community activities to improve the local environment and engage in charitable activities, including donations[198] - The company made charitable donations of HKD 70,000 during the year, compared to none in the previous year[141] - The company conducts a comprehensive materiality assessment involving stakeholders to identify relevant ESG issues[200]

Financial Performance - The company's revenue for the six months ended September 30, 2021, increased to approximately HKD 164.3 million, up 7.6% from HKD 152.7 million for the same period in 2020[6][14]. - Net profit for the same period rose to approximately HKD 9.1 million, compared to HKD 6.5 million in the previous year[6]. - Gross profit rose by approximately HKD 8.2 million or 34.5% to about HKD 31.7 million for the six months ended September 30, 2021, with the gross profit margin increasing from approximately 15.4% to about 19.3%[24]. - The total comprehensive income attributable to owners of the company for the period was HKD 9,118,000, compared to HKD 6,476,000 in 2020, indicating a growth of 40.3%[91]. - Basic and diluted earnings per share increased to HKD 1.14 from HKD 0.81, representing a rise of 40.7%[91]. - The company achieved a profit before tax of HKD 9,248,000, up from HKD 6,308,000 in the previous year, marking an increase of 46.4%[91]. - The company reported a pre-tax profit of HKD 9,248,000 for the six months ended September 30, 2021, compared to HKD 6,308,000 for the same period in 2020[121]. Revenue Breakdown - Revenue from construction contracts remained stable at approximately HKD 127.4 million, while sales of building materials contributed HKD 36.9 million[16][19]. - Revenue from building materials increased by approximately HKD 16.0 million or 76.6% to about HKD 36.9 million for the six months ended September 30, 2021, compared to approximately HKD 20.9 million for the same period in 2020[20]. - Revenue from construction materials sales was HKD 36,915,000, up from HKD 20,907,000, representing a 76.6% increase year-over-year[121]. - Revenue from construction and engineering services was HKD 127,354,000, down from HKD 131,820,000, a decrease of 3.5% compared to the previous year[121]. Expenses and Costs - Selling and distribution expenses surged by approximately HKD 2.7 million or 92.1% to about HKD 5.6 million for the six months ended September 30, 2021, primarily due to high shipping costs resulting from the ongoing COVID-19 pandemic[28]. - Administrative expenses increased by approximately HKD 2.3 million or 16.0% to about HKD 16.5 million for the six months ended September 30, 2021, mainly due to an increase in average employee numbers and salaries[29]. - The company incurred finance costs of HKD 553,000, a decrease from HKD 907,000 in the previous year, showing a reduction of 39.0%[91]. - Interest expenses for bank borrowings were HKD 548,000 for the six months ended September 30, 2021, down from HKD 897,000 in the previous year, a decrease of 38.8%[127]. Assets and Liabilities - Total equity as of September 30, 2021, was approximately HKD 157.7 million, up from approximately HKD 156.5 million as of March 31, 2021[35]. - Current assets net value was approximately HKD 97.1 million as of September 30, 2021, compared to approximately HKD 95.2 million as of March 31, 2021[35]. - The debt-to-equity ratio increased to 24.8% as of September 30, 2021, from 23.3% as of March 31, 2021[39]. - The total assets as of September 30, 2021, amounted to HKD 238,305,000, an increase from HKD 233,327,000 as of March 31, 2021[123]. - The total liabilities as of September 30, 2021, were HKD 80,640,000, compared to HKD 76,780,000 as of March 31, 2021, indicating an increase of 5.4%[123]. Market and Business Outlook - The overall market outlook for the construction industry in Hong Kong is expected to improve, benefiting the company in the long term[13]. - The company is exploring vertical integration opportunities in the renovation industry to diversify its business segments[11]. - The company anticipates continued demand for its gypsum board products due to heightened quality standards in the construction industry[10]. - The company noted a significant decrease of over 50% in revenue from wood flooring projects due to competitive pricing strategies and project delays[7][19]. Shareholder and Corporate Governance - A mid-term dividend of HKD 0.75 per share was declared, compared to zero for the six months ending September 30, 2020[75]. - The company has maintained high levels of corporate governance to protect shareholder interests and enhance corporate value[69]. - The company’s issued and paid-up share capital remained at HKD 8,000,000 as of September 30, 2021, with 800,000,000 shares issued[159]. Risks and Contingencies - The group faced significant cash flow risks due to potential delays in project payments, which could adversely affect its financial condition[45]. - The group reported contingent liabilities related to performance guarantees of approximately HKD 12.8 million as of September 30, 2021, an increase from HKD 10.4 million as of March 31, 2021[43]. - The group continues to monitor foreign exchange risks as some transactions are denominated in currencies other than its functional currency, the Hong Kong dollar[51]. - The group is exposed to uncertainties in the business environment due to the impact of COVID-19 and other socio-economic factors affecting the construction and property development sectors in Hong Kong[58]. Investments and Acquisitions - The company has not made any significant investments, acquisitions, or disposals of subsidiaries during the six months ended September 30, 2021[61]. - The company invested approximately HKD 736,000 in the acquisition of vehicles and office equipment for the six months ended September 30, 2021, compared to HKD 444,000 for the same period in 2020[139].

Revenue and Profitability - For the six months ended September 30, 2020, the company's revenue increased to approximately HKD 152.7 million, representing a growth of about 109.8% compared to approximately HKD 72.8 million for the same period in 2019[5][14]. - The net profit for the same period was approximately HKD 6.5 million, a significant improvement from a net loss of approximately HKD 9.0 million in the previous year[5]. - Revenue for the six months ended September 30, 2020, was HKD 152.727 million, an increase from HKD 72.794 million in the same period of 2019, representing a growth of 109.5%[104]. - Gross profit for the same period was HKD 23.548 million, compared to HKD 5.815 million in 2019, indicating a significant increase[104]. - The company reported a profit before tax of HKD 6.308 million, a turnaround from a loss of HKD 10.529 million in the previous year[104]. - Basic and diluted earnings per share for the period were HKD 0.81, compared to a loss of HKD 1.12 per share in the same period last year[104]. Revenue Segmentation - The construction contracts segment contributed HKD 131.8 million, accounting for 86.3% of total revenue, while the sales of building materials accounted for HKD 20.9 million, or 13.7%[19]. - Revenue from construction contracts increased by approximately 100.3% to about HKD 131.8 million for the six months ended September 30, 2020, compared to approximately HKD 65.8 million for the same period in 2019[20]. - Revenue from the sale of building materials rose by approximately 198.6% to about HKD 20.9 million for the six months ended September 30, 2020, from approximately HKD 7.0 million in the prior year[23]. - Revenue from construction materials sales reached HKD 20,907,000, up from HKD 6,998,000 in the previous year, marking a growth of 198.5%[135]. - Revenue from construction contracts amounted to HKD 131,820,000, compared to HKD 65,796,000 in the prior year, reflecting an increase of 100.0%[135]. Costs and Expenses - Total sales and service costs rose by approximately 92.8% to about HKD 129.2 million, with material costs increasing by approximately 143.0%[24]. - Administrative expenses decreased by approximately 8.4% to about HKD 14.2 million, mainly due to government wage subsidies[33]. - The company reported a decrease in administrative expenses to HKD 14.240 million from HKD 15.488 million in the previous year[104]. - The company incurred finance costs of HKD 897,000 in bank loan interest for the six months ended September 30, 2020, slightly up from HKD 836,000 in 2019[143]. Financial Position - Total equity as of September 30, 2020, was approximately HKD 151.7 million, up from approximately HKD 145.2 million as of March 31, 2020[41]. - Cash and cash equivalents amounted to approximately HKD 60.0 million as of September 30, 2020, compared to approximately HKD 59.3 million as of March 31, 2020[42]. - Total assets as of September 30, 2020, were HKD 204.497 million, up from HKD 182.792 million as of March 31, 2020[107]. - Current liabilities increased to HKD 82.667 million from HKD 67.646 million in the previous period[107]. - The total equity as of September 30, 2020, was HKD 151.723 million, an increase from HKD 145.247 million as of March 31, 2020[109]. Cash Flow and Financing - The net cash generated from operating activities was a negative HKD 2,163,000 for the six months ended September 30, 2020, down from a positive HKD 4,778,000 in the previous year[115]. - The net cash inflow from financing activities was HKD 3,074,000, an increase from HKD 2,467,000 in the same period of 2019[115]. - The group anticipates future operations and expansion plans will primarily be funded through cash generated from business operations, borrowings, and net proceeds from the listing[45]. Market and Business Strategy - The company is expanding into the renovation sector, leveraging its experience in interior installation projects to achieve vertical integration and diversify its business segments[10]. - The company plans to continue expanding its market presence in Hong Kong, focusing on construction materials and contract services[128]. - The company is optimistic about the long-term prospects of the construction industry in Hong Kong and aims to maintain its competitive edge in a rapidly changing environment[13]. Risks and Challenges - The company faces significant risks including cash flow volatility and potential project cost overruns due to various external factors[53][55]. - The ongoing COVID-19 pandemic has negatively impacted the local economy, affecting the construction and property development sectors[62]. Corporate Governance - The company has adopted the corporate governance code and has complied with its provisions, except for the separation of roles between the Chairman and CEO[79]. - The company has established an audit committee consisting of three independent non-executive directors and one non-executive director[83]. Shareholder Information - The company holds 588 million shares, representing 73.5% ownership, through Helios Enterprise Holding Limited[90]. - The company has not declared or recommended any dividends for the six months ended September 30, 2020, consistent with the same period in 2019[149]. - The company did not grant any share options during the six months ended September 30, 2020[189].