Financial Performance - The company reported a net loss of approximately HKD 23.8 million for the fiscal year ending March 31, 2020, compared to a net profit of approximately HKD 0.8 million in the previous year[6]. - Revenue decreased by approximately HKD 73.1 million to about HKD 157.0 million for the fiscal year ending March 31, 2020, due to various challenges including the COVID-19 pandemic and increased competition[9]. - The total revenue for the year ended March 31, 2020, decreased by approximately HK$73.1 million or 31.8% to about HK$157.0 million, compared to approximately HK$230.1 million for the previous year[17]. - Revenue from supply and installation projects decreased by about HK$56.0 million or 28.3% to approximately HK$141.6 million, primarily due to intensified market competition and project delays[19]. - Revenue from the sale of building materials dropped by approximately HK$17.1 million or 52.6% to about HK$15.4 million, with sales of gypsum brick products declining by 65.1%[21]. - The company's gross profit fell by approximately HK$17.0 million or 51.8% to about HK$15.8 million, with the gross profit margin decreasing from approximately 14.3% to about 10.1%[23]. - Other income decreased by approximately HK$3.1 million or 62.0% to about HK$1.9 million, primarily due to a reduction in foreign exchange gains and patent income from a wood flooring project[25]. - The net loss for the year ended March 31, 2020, was approximately HKD 23.8 million, a decline of about HKD 24.6 million from a profit of HKD 0.8 million in the previous year[31]. - Total equity as of March 31, 2020, was approximately HKD 145.2 million, down from HKD 169.1 million in the previous year[33]. - Current assets net value decreased to approximately HKD 115.1 million as of March 31, 2020, from HKD 138.1 million in the previous year[34]. Operational Challenges - The company faced delays in major projects due to the replacement of the main contractor, impacting overall project timelines[10]. - The company experienced supply delays of at least 30 days for construction materials, particularly wooden flooring, due to the COVID-19 pandemic[9]. - The company noted that the number of completed properties, particularly private residential properties, decreased compared to previous years, contributing to revenue decline[9]. - The group faced significant negative impacts from the uncertain business environment in Hong Kong, exacerbated by the COVID-19 pandemic, affecting profitability and liquidity[48]. Strategic Initiatives - The company secured a significant public project under the ten-year hospital development plan, marking an important milestone for expanding its market share in public works[6]. - The company plans to expand into the interior decoration market, leveraging its experience in interior installations and aiming for vertical integration[6]. - The company launched a new type of gypsum brick product that meets the construction material specifications for hospitals in Hong Kong, aiming to capitalize on the HK$200 billion special fund set up by the government for a ten-year hospital development plan[11]. - The company expects a significant increase of over 50% in the supply of new private residential properties in 2020 compared to 2019, maintaining an optimistic outlook for the future[16]. - The company introduced new products, including indoor wall panels and underfloor heating systems, targeting the elderly market and customers seeking higher quality living standards[16]. Financial Management - The company maintained a cash balance of approximately HKD 59.3 million as of March 31, 2020, an increase of HKD 2.8 million from approximately HKD 56.5 million in the previous reporting period[6]. - Bank borrowings increased to approximately HKD 41.4 million as of March 31, 2020, compared to HKD 38.9 million in the previous year[35]. - The debt-to-equity ratio increased to 29.2% in 2020 from 23.0% in 2019, indicating a rise in financial leverage[36]. - The company anticipates future operations and expansion plans will primarily be funded through cash generated from operations and bank borrowings[36]. Governance and Compliance - The company has adopted a corporate governance code to enhance accountability and shareholder value, with a commitment to high governance standards[73]. - The board of directors includes independent non-executive directors such as Mr. Shu, Mr. Tan, and Mr. Tan, ensuring diverse oversight[77]. - The audit committee consists of three independent non-executive directors, ensuring independent oversight of financial reporting[73]. - The company has established a financial planning and reporting oversight led by Mr. Zhou, the financial director, who has over ten years of experience[70]. - The company has complied with the listing rules regarding the appointment of at least three independent non-executive directors, with at least one possessing appropriate professional qualifications or financial management expertise[78]. Environmental and Social Responsibility - The group is committed to sustainable development while considering environmental and social responsibilities in its business operations[179]. - The total greenhouse gas emissions for the year ending March 31, 2020, amounted to 1,386.8 tons of CO2 equivalent, a decrease from 2,730.8 tons in the previous year, representing a reduction of approximately 49.2%[194]. - The company achieved a reduction in nitrogen oxides (NOx) emissions from 3.35 kg in 2019 to 2.96 kg in 2020, a decrease of about 11.6%[192]. - The company has maintained ISO 14001:2015 certification since 2019, demonstrating its commitment to environmental management[189]. - The group is committed to environmental protection and responsible management of global forests through FSC-certified products[200].

Revenue Performance - Total revenue decreased by approximately HKD 64.4 million or 46.9% to about HKD 72.8 million for the six months ended September 30, 2019, compared to approximately HKD 137.2 million for the same period in 2018[19]. - Revenue from supply and installation projects fell by approximately HKD 49.9 million or 43.1% to about HKD 65.8 million, primarily due to delays in residential property projects caused by the proposed vacancy tax[24]. - Revenue from the building materials segment decreased by approximately HKD 14.5 million or 67.4% to about HKD 7.0 million for the six months ended September 30, 2019, compared to approximately HKD 21.5 million for the same period in 2018[25]. - Revenue for the six months ended September 30, 2019, was HKD 72,794,000, compared to HKD 66,979,000 for the same period in 2018, representing an increase of approximately 2.4%[101]. - Revenue from gypsum bricks sales was HKD 3,913,000, down 80% from HKD 19,456,000 year-on-year[147]. - Revenue from wooden flooring sales increased to HKD 2,595,000, up 36% from HKD 1,906,000 in the previous year[147]. - Construction contract revenue for gypsum bricks was HKD 5,465,000, a decline of 70% from HKD 18,536,000 in the prior period[147]. - Construction contract revenue for wooden flooring was HKD 41,976,000, down 50% from HKD 83,728,000 year-on-year[147]. Profitability and Loss - Gross profit fell by approximately HKD 13.2 million or 69.5% to about HKD 5.8 million for the six months ended September 30, 2019, with the gross profit margin dropping from approximately 13.9% to about 8.0%[30]. - The net loss for the six months ended September 30, 2019, was approximately HKD 9.0 million, a decline of about HKD 10.9 million from a net profit of approximately HKD 1.9 million for the same period in 2018, resulting in a net profit margin of -12.4%[40]. - The company reported a loss before tax of HKD 10,529,000, compared to a profit of HKD 2,042,000 in the same period last year[101]. - The net loss attributable to owners of the company was HKD 8,973,000, compared to a profit of HKD 1,908,000 in the previous year[101]. - Basic and diluted loss per share was HKD 1.12, compared to earnings of HKD 0.24 per share in the prior year[101]. Expenses and Costs - Cost of sales and services for the six months ended September 30, 2019, was approximately HKD 67.0 million, a decrease of about 43.3% from approximately HKD 118.2 million for the same period in 2018[26]. - Selling and distribution expenses decreased by approximately HKD 1.3 million or 32.5% to about HKD 2.7 million for the six months ended September 30, 2019, mainly due to the reduction in building materials sales[35]. - Administrative expenses increased by approximately HKD 2.0 million or 14.8% to about HKD 15.5 million for the six months ended September 30, 2019, attributed to business development and hospitality expenses[36]. Financial Position - Total equity as of September 30, 2019, was approximately HKD 160.1 million, down from approximately HKD 169.1 million as of March 31, 2019[42]. - Cash and cash equivalents increased to approximately HKD 63.6 million as of September 30, 2019, compared to approximately HKD 56.5 million as of March 31, 2019[43]. - The debt-to-equity ratio increased to 27.1% as of September 30, 2019, from 23.0% as of March 31, 2019[49]. - Total assets as of September 30, 2019, were HKD 196,075,000, slightly up from HKD 195,399,000 as of March 31, 2019[103]. - The company's total equity decreased to HKD 160,094,000 from HKD 169,067,000, indicating a decline of approximately 5.3%[103]. Cash Flow and Risks - The group faced cash flow risks due to potential net cash outflows before receiving payments from clients, which could adversely affect cash flow if multiple projects require significant cash outflows simultaneously[55]. - Net cash generated from operating activities was HKD 4,778,000, a significant improvement compared to a cash outflow of HKD 8,245,000 in the previous year[122]. - Trade receivables amounted to HKD 11,947 thousand as of September 30, 2019, down from HKD 27,522 thousand as of March 31, 2019[179]. - The expected credit loss for trade receivables increased to HKD 2,028 thousand as of September 30, 2019, from HKD 1,522 thousand as of March 31, 2019[185]. Corporate Governance and Compliance - The company has established an audit committee composed of three independent non-executive directors and one non-executive director, which reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2019[79]. - The company confirmed compliance with the standards of the Securities and Futures Ordinance regarding the trading of securities by its directors and senior management for the six months ended September 30, 2019[77]. - The company has not disclosed any significant events that occurred after September 30, 2019, up to the date of this interim report[78]. Future Outlook and Strategy - The company remains optimistic about the future, expecting property developers to accelerate construction progress due to favorable government policies[13]. - The company anticipates an increase in sales of gypsum board products if the budget for the ten-year hospital development plan is approved by the Legislative Council[12]. - The company plans to expand into new interior wall panel products and introduce underfloor heating systems targeting higher quality of life and health-conscious customers, especially the elderly[12]. - The company will continue to focus on its competitive advantages to maintain its leading position in the industry amid a rapidly changing environment[18]. Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2019, consistent with the previous period[80]. - As of September 30, 2019, Mr. Lu and Ms. Feng each hold 588,000,000 shares, representing 73.5% of the company's equity, through Helios Enterprise Holding Limited[82]. - The company has not granted or agreed to grant any options under the share option scheme since its adoption on December 19, 2017[91]. - The stock option plan was adopted on December 19, 2017, and is set to expire on December 18, 2027[197].

Financial Performance - The total revenue for the fiscal year ended March 31, 2019, decreased by approximately HKD 50.0 million or 17.9% to about HKD 230.1 million, down from approximately HKD 280.1 million for the previous fiscal year[16]. - The net profit for the fiscal year was approximately HKD 0.8 million, slightly lower than the previous year[10]. - Revenue from supply and installation projects decreased by approximately HKD 32.2 million or 14.0% to about HKD 197.6 million for the year ended March 31, 2019, compared to HKD 229.8 million for the previous year[23]. - Revenue from building materials sales dropped by approximately HKD 17.8 million or 35.4% to about HKD 32.5 million for the year ended March 31, 2019, down from HKD 50.3 million[24]. - Gross profit decreased by approximately HKD 23.6 million or 41.8% to about HKD 32.8 million, with the gross profit margin declining from approximately 20.2% to 14.3%[26]. - Total sales and service costs were approximately HKD 197.3 million, a decrease of about 11.8% from HKD 223.6 million in the previous year[25]. - Other income increased significantly by approximately HKD 4.2 million or 525.0% to about HKD 5.0 million, primarily from patent fees and foreign exchange differences[29]. - Administrative expenses decreased by approximately HKD 12.5 million or 30.3% to about HKD 28.8 million, mainly due to the absence of non-recurring listing expenses[31]. - Financial costs decreased by approximately HKD 1.1 million or 45.8% to about HKD 1.3 million, despite an increase in average bank borrowings[32]. - Net profit decreased by approximately HKD 1.5 million to about HKD 0.8 million, representing a decline of about 65.2%[38]. - The total equity as of March 31, 2019, was approximately HKD 169.1 million, compared to HKD 168.6 million in the previous year[40]. - Cash and cash equivalents were approximately HKD 56.5 million as of March 31, 2019, down from HKD 63.7 million in the previous year[41]. - The debt-to-asset ratio increased to 23.0% in 2019 from 15.9% in 2018[42]. - The current ratio improved to 3.4 in 2019 compared to 3.1 in 2018[42]. - The group incurred capital expenditures of approximately HKD 0.7 million in 2019, a significant decrease from HKD 25.4 million in 2018[45]. - The group did not recommend a final dividend for the year ended March 31, 2019, consistent with the previous year[133]. Market and Competitive Landscape - The company has faced challenges due to increased competition and project delays, particularly in a major wood product project, which has led to additional resource allocation[9][14]. - The company anticipates that rising raw material and labor costs will impact performance, but remains optimistic about the long-term prospects of the Hong Kong construction industry[10][15]. - The construction market in Hong Kong is expected to continue facing challenges, but the company believes it can maintain its leading position in the industry[10][15]. - The company has noted an increase in the number of competitors adopting aggressive pricing strategies, which has affected its pricing strategy and average contract amounts[16]. Product Development and Innovation - The company is developing innovative products such as a floor heating system and radiation-proof gypsum board products, along with a new air purification system[10]. - The introduction of a new type of gypsum board product that meets hospital construction material specifications aims to capture potential opportunities from the government's ten-year hospital development plan[15]. - The company is the exclusive distributor of MultiGips gypsum board, which is recognized for its environmentally friendly and non-toxic properties[9]. Corporate Governance and Management - The management team has extensive experience, with the CEO having over 35 years in the construction industry and the marketing manager over 10 years in sales and marketing of construction materials[71]. - The company has a strong internal control and risk management system, evaluated by the non-executive director with over 16 years of experience in auditing and financial management[64]. - The operational director has been with the company since 2016 and oversees internal control policies related to operations and administration[71]. - The company is focused on project management and technical advice, with the technical advisor having over 30 years of experience in architecture and project management[71]. - The board includes independent directors with significant experience in finance, auditing, and corporate governance, enhancing the company's oversight capabilities[66][67]. - The company has a strategic focus on expanding its market presence and enhancing operational efficiency through experienced leadership[71]. - The marketing manager is responsible for managing sales operations, indicating a structured approach to market expansion[71]. - The company has a diverse board composition, including members with backgrounds in accounting, finance, and law, contributing to comprehensive governance[66][68]. - The CEO and other executives have been with the company for several years, ensuring continuity in leadership and strategic direction[11][71]. - The board of directors consists of 2 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring compliance with listing rules regarding board composition[82]. - The company has adopted the corporate governance code, with the exception of the chairman and CEO roles being held by the same individual, which the board believes facilitates effective decision-making[76]. - The company has established three board committees: audit committee, nomination committee, and remuneration committee to oversee specific areas of governance[77]. - All directors have confirmed their independence according to listing rules, contributing diverse business experience and expertise to the board[84]. - The company has arranged appropriate liability insurance for directors facing legal actions, which is reviewed annually[79]. - Each executive director has signed a three-year service contract, while non-executive and independent non-executive directors have signed three-year appointment letters[96]. - The company encourages continuous professional development for directors, providing necessary training and updates on regulatory requirements[94]. - The audit committee consists of three independent non-executive directors and one non-executive director, ensuring independent oversight of financial reporting[76]. - The company has maintained high levels of corporate governance to protect shareholder interests and enhance corporate value[76]. - The board believes that the current management structure does not impair accountability and independent decision-making[76]. - The board of directors has adopted a nomination policy effective from January 1, 2019, ensuring a balance of skills, experience, and diversity suitable for the group's business requirements[98]. - The nomination committee is responsible for conducting due diligence on proposed candidates and making recommendations to the board for approval[99]. - The board plans to hold regular meetings at least four times a year, approximately quarterly, with adequate notice provided for each meeting[101]. - The audit committee, consisting of three independent non-executive directors, held two meetings during the fiscal year ending March 31, 2019, to review financial statements and auditor reports[108]. - The remuneration committee, comprising three independent non-executive directors and one executive director, held two meetings in the fiscal year to review and recommend remuneration policies[109]. - The company has confirmed compliance with the standard code of conduct for securities trading as of March 31, 2019[104]. - The audit committee has agreed to recommend the reappointment of the external auditor for the upcoming annual general meeting[108]. - The board's attendance records show that all directors attended 100% of the meetings held during their term[103]. - The nomination committee evaluates candidates based on integrity, industry experience, commitment, diversity, and ability to contribute to the company's success[98]. - The company emphasizes the importance of directors dedicating sufficient time and effort to handle company affairs effectively[103]. Shareholder Relations and Dividends - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of its business and performance[122]. - The company encourages shareholders to attend general meetings and ensures their rights are respected and upheld[123]. - The group maintained a policy to ensure sufficient cash reserves to meet operational needs and future growth when recommending dividends[127]. - The group has not engaged in the purchase, redemption, or sale of any listed securities during the year ended March 31, 2019[138]. Environmental Commitment - The environmental report indicates that the company is committed to minimizing negative environmental impacts[193]. - The total emissions of nitrogen oxides (NOx) were recorded at 3.35 kg, sulfur oxides (SOx) at 0.05 kg, and respirable suspended particles (RSP) at 0.25 kg[195]. - Total greenhouse gas emissions for the year ended March 31, 2019, amounted to 2,730.8 tons of CO2 equivalent[197]. - Scope 1 direct emissions from gasoline consumption were 8.6 tons, representing 0.3% of total emissions[198]. - Scope 2 indirect emissions from purchased electricity were 43.8 tons, accounting for 1.6% of total emissions[198]. - Scope 3 other indirect emissions from the transportation of gypsum brick products purchased from Germany were 2,678.4 tons, making up 98.1% of total emissions[198]. - The company did not generate any hazardous waste as of March 31, 2019, and only produced non-hazardous waste such as household garbage and office paper[199]. - The company utilized various resources, with purchased electricity being the largest portion of energy used, primarily for powering the headquarters[200].