[Company Cover and Table of Contents](index=1&type=section&id=公司封面及目錄) This report is the 2025 annual report for Yide Investment Holdings Limited (Stock Code: 6182) - This report is the 2025 annual report for **Yide Investment Holdings Limited (Stock Code: 6182)**[1](index=1&type=chunk)[2](index=2&type=chunk) [Company Information](index=3&type=section&id=公司資料) The report provides core company management and legal information including board members, committee compositions, company secretary, auditor, legal counsel, principal bankers, and share registrar - The report provides core company management and legal information including board members, committee compositions, company secretary, auditor, legal counsel, principal bankers, and share registrar[6](index=6&type=chunk) [Chairman's Statement](index=4&type=section&id=主席報告) [Summary of Chairman's Statement](index=4&type=section&id=主席報告摘要) Despite challenges like high inflation, rising interest rates, and weak demand, the Group successfully turned profitable this year, strategically shifting to public utility projects, making significant progress in the "Ten-Year Hospital Development Plan," and developing new products like fire-resistant board BowenPro to broaden revenue streams 2025 Fiscal Year Performance Highlights | Indicator | Amount | Description | | :--- | :--- | :--- | | Revenue | HKD 207.2 million | Achieved growth | | Net Profit | Approx. HKD 1.3 million | Successfully turned profitable | - The Group focused on public utility projects in recent years, securing three more under the "Ten-Year Hospital Development Plan," totaling over **HKD 280 million** in contract value, expected to be completed between 2025 and 2027[8](index=8&type=chunk) - Wooden flooring products remain the main revenue source, contributing nearly **50% of revenue**[9](index=9&type=chunk) - This year, the new fire-resistant board BowenPro was successfully developed and has secured a project worth approximately **HKD 5 million** under the "Ten-Year Hospital Development Plan"[9](index=9&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=管理層討論及分析) [Business Review and Market Outlook](index=5&type=section&id=業務回顧及市場前景) As a building materials contractor, the Group achieved a performance turnaround amidst macroeconomic challenges by seizing opportunities in large-scale projects, doubling revenue from wooden flooring projects due to increased private residential property supply, and making continuous progress in the "Ten-Year Hospital Development Plan" - The Group primarily provides building materials and related installation services in Hong Kong, including wooden flooring, gypsum blocks, stone crystal wall panels, removable partitions, fire-resistant boards, and roof tiles[12](index=12&type=chunk) - The company successfully capitalized on increased private residential property supply, **doubling wooden flooring project revenue** this year[13](index=13&type=chunk) - The company currently holds **3 uncommenced projects** under the "Ten-Year Hospital Development Plan," with a total contract value of approximately **HKD 195.5 million**[14](index=14&type=chunk) - Antibacterial stone crystal wall panels secured a large hospital project worth approximately **HKD 12.2 million**, with market demand expected to continue rising[15](index=15&type=chunk) [Financial Review](index=6&type=section&id=財務回顧) This fiscal year, the Group's financial performance rebounded strongly, with total revenue increasing by 102.1% year-on-year to HKD 207.2 million and achieving a net profit of HKD 1.3 million, successfully reversing last year's HKD 36.7 million loss, primarily due to significant growth in construction contract revenue and a notable improvement in gross profit margin from 9.2% to 17.5% [Revenue](index=6&type=section&id=收益) Total revenue increased by 102.1% year-on-year from HKD 102.5 million to HKD 207.2 million, primarily driven by construction contracts, which saw a 97.1% year-on-year increase to HKD 191 million, with significant growth in wooden flooring project revenue Revenue Source Analysis (HKD million) | Business Segment | FY2025 | Proportion (%) | FY2024 | Proportion (%) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Construction Contracts | 191.0 | 92.2 | 96.9 | 94.5 | 97.1% | | Sales of Building Materials | 16.2 | 7.8 | 5.6 | 5.5 | 189.3% | | **Total** | **207.2** | **100.0** | **102.5** | **100.0** | **102.1%** | [Cost of Sales and Services](index=7&type=section&id=銷售及服務成本) Cost of sales and services increased by 83.6% year-on-year to HKD 170.9 million, primarily comprising material costs and subcontracting costs, with material costs increasing by 92.6% in line with revenue growth, and subcontracting costs increasing by 70.4% - Cost of sales and services was approximately **HKD 170.9 million**, a year-on-year increase of **83.6%**[21](index=21&type=chunk) - Material costs and subcontracting costs together accounted for **98.9%** of total cost of sales and services[21](index=21&type=chunk) [Gross Profit and Gross Profit Margin](index=7&type=section&id=毛利及毛利率) Gross profit significantly increased to HKD 36.2 million from HKD 9.4 million in the prior year, with gross profit margin notably improving from 9.2% to 17.5%, primarily due to a slight increase in the proportion of higher-margin building material sales to total revenue Gross Profit and Gross Profit Margin Performance | Indicator | FY2025 | FY2024 | | :--- | :--- | :--- | | Gross Profit | HKD 36.2 million | HKD 9.4 million | | Gross Profit Margin | 17.5% | 9.2% | [Other Income, Expenses and Profit](index=8&type=section&id=其他收入、開支及溢利) This fiscal year, other income increased to HKD 4.8 million, mainly due to a HKD 4 million reversal of impairment loss on contract assets, while sales and distribution expenses and administrative expenses both decreased, resulting in a net profit of HKD 1.3 million for the Group - Other income increased to **HKD 4.8 million**, primarily due to a reversal of impairment loss on contract assets of approximately **HKD 4 million**[25](index=25&type=chunk) - Administrative expenses decreased by **14.9%** to **HKD 32.5 million**, mainly due to a reduction in asset impairment provisions of approximately **HKD 4.6 million**[27](index=27&type=chunk) - The Group turned from a net loss of **HKD 36.7 million** last year to a net profit of **HKD 1.3 million** this year[30](index=30&type=chunk) [Liquidity and Financial Resources Review](index=9&type=section&id=流動資金及財務資源回顧) At fiscal year-end, the Group's total equity slightly increased to HKD 93.7 million, and net current assets increased to HKD 39.1 million, while cash and cash equivalents decreased to HKD 8 million and bank borrowings slightly increased to HKD 54.4 million Key Financial Position (as at March 31, 2025) | Indicator | FY2025 (HKD million) | FY2024 (HKD million) | | :--- | :--- | :--- | | Total Equity | 93.7 | 92.4 | | Net Current Assets | 39.1 | 35.8 | | Cash and Cash Equivalents | 8.0 | 29.7 | | Bank Borrowings | 54.4 | 52.2 | Key Financial Ratios | Indicator | FY2025 | FY2024 | | :--- | :--- | :--- | | Gearing Ratio | 59.3% | 57.4% | | Current Ratio | 1.4 | 1.5 | - As at March 31, 2025, the Group's bank facilities were secured by properties, life insurance policy prepayments, and pledged bank deposits, totaling approximately **HKD 71.9 million**[39](index=39&type=chunk) [Contingent Liabilities and Capital Commitments](index=10&type=section&id=或然負債與資本承擔) At fiscal year-end, the Group was involved in three work injury-related lawsuits, but no significant impact on financial statements is expected due to general contractor insurance coverage, with contingent liabilities for performance bonds amounting to approximately HKD 5.6 million - The Group is involved in three work injury lawsuits, but no significant financial impact is expected due to insurance coverage[41](index=41&type=chunk) - Contingent liabilities for performance bonds were approximately **HKD 5.6 million**, a significant decrease from **HKD 14 million** last year[41](index=41&type=chunk) [Key Risks and Uncertainties](index=10&type=section&id=主要風險及不確定因素) The Group faces multiple key risks, including operational challenges such as volatile cash flow patterns, inaccurate project cost and progress estimations, and non-established profit margins, business development risks like failure to secure new projects for non-recurring income, and financial risks including currency, interest rate, and credit risk - Operational risks include: volatile cash flow patterns, inability to accurately estimate project costs and schedules, non-established profit margins[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - Financial risks include: currency risk (mainly USD and EUR), interest rate risk (all bank borrowings are floating rate), credit risk (contract assets book value approximately **HKD 95.1 million**)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) - High customer concentration: top five customers accounted for **61.0%** of total revenue, with the largest customer accounting for **29.8%**[51](index=51&type=chunk) [Employees and Remuneration Policy](index=12&type=section&id=僱員及薪酬政策) At fiscal year-end, the Group had 31 employees, with total staff costs of approximately HKD 18.6 million, largely consistent with last year, and remuneration policy references market data and individual performance, offering discretionary bonuses, retirement benefits, and training subsidies Employee Information | Indicator | FY2025 | FY2024 | | :--- | :--- | :--- | | Total Employees | 31 people | 30 people | | Total Staff Costs | HKD 18.6 million | HKD 18.7 million | [Biographical Details of Directors and Senior Management](index=13&type=section&id=董事及高級管理層履歷詳情) [Introduction to Directors and Senior Management](index=13&type=section&id=董事及高級管理層簡介) This section details the personal biographies of the company's executive directors, non-executive directors, independent non-executive directors, and senior management, covering their industry experience, professional qualifications, responsibilities within the Group, and relationships with other directors - Mr. Lo Wing Cheong, Executive Director, is the Group's founder, possessing over **40 years of construction industry experience**, and serves as Chairman and Chief Executive Officer[57](index=57&type=chunk) - Family relationships exist among board members: Ms. Fung Pik Mei, Executive Director, is the spouse of Chairman Mr. Lo Wing Cheong; Mr. Li Pui Ho, Non-executive Director, is the son-in-law of Mr. Lo and Ms. Fung[57](index=57&type=chunk)[59](index=59&type=chunk) - Independent non-executive directors and non-executive directors generally possess deep professional backgrounds in accounting, auditing, corporate finance, and law, holding positions in multiple listed companies[58](index=58&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk) - Senior management includes technical advisors, operations directors, and financial controllers, possessing professional qualifications and extensive experience in construction, corporate governance, and accounting[65](index=65&type=chunk)[66](index=66&type=chunk) [Corporate Governance Report](index=16&type=section&id=企業管治報告) [Corporate Governance Practices and the Board](index=16&type=section&id=企業管治常規與董事會) The Group is committed to maintaining high standards of corporate governance, complying with most provisions of the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer are combined and held by Mr. Lo Wing Cheong, which the Board believes enhances decision-making efficiency - The company has one deviation from Code Provision C.2.1 of the Corporate Governance Code, where the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. Lo Wing Cheong, but the Board believes the current structure facilitates prompt decision-making and does not compromise the balance of power and authority[70](index=70&type=chunk) - The Board comprises **6 directors**, with **3 independent non-executive directors**, accounting for half of the Board members, complying with Listing Rules requirements[73](index=73&type=chunk)[75](index=75&type=chunk) Board and Committee Meeting Attendance Record (FY2025) | Director | Board | Remuneration Committee | Audit Committee | Nomination Committee | Annual General Meeting | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Lo Wing Cheong | 6/6 | 1/1 | Not Applicable | 2/2 | 1/1 | | Ms. Fung Pik Mei | 6/6 | Not Applicable | Not Applicable | Not Applicable* | 1/1 | | Mr. Li Pui Ho | 6/6 | Not Applicable | 2/2 | Not Applicable | 1/1 | | Mr. Shu Wah Tung | 6/6 | 1/1 | 2/2 | 2/2 | 1/1 | | Mr. Tam Wai Tak | 6/6 | 1/1 | 2/2 | 2/2 | 1/1 | | Mr. Tam Wing Lok | 6/6 | 1/1 | 2/2 | 2/2 | 1/1 | [Board Committees](index=22&type=section&id=董事委員會) The Board has three committees: Audit, Remuneration, and Nomination, which oversee financial reporting, risk management, internal controls, executive remuneration policies, and board structure, size, and diversity, with all committees holding meetings and fulfilling their responsibilities during the reporting period - The Audit Committee is chaired by Mr. Shu Wah Tung, with members including three independent non-executive directors and one non-executive director, complying with Listing Rules requirements, holding **two meetings** during the year to review annual and interim financial statements and internal control systems[86](index=86&type=chunk)[87](index=87&type=chunk) - The Remuneration Committee is chaired by Mr. Tam Wing Lok, with most members being independent non-executive directors, holding **one meeting** during the year to review directors' and senior management's remuneration[88](index=88&type=chunk) - The Nomination Committee is chaired by Mr. Lo Wing Cheong, with most members being independent non-executive directors, holding **two meetings** during the year to review board structure, diversity policy, and directors' independence[89](index=89&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - The company has adopted a Board Diversity Policy and achieved measurable objectives, including gender diversity (one female executive director)[92](index=92&type=chunk)[95](index=95&type=chunk) [Risk Management, Internal Control and Shareholder Communication](index=26&type=section&id=風險管理、內控及股東溝通) The Board is responsible for overseeing the Group's risk management and internal control systems, with annual reviews of their effectiveness by the Audit Committee, and the company has established an inside information handling policy and maintains effective communication with shareholders through various channels - The Board confirms its responsibility for overseeing risk management and internal control systems, and appointed **Zhonghui Anda Risk Management Limited** for an independent review, deeming the systems effective and adequate[100](index=100&type=chunk)[102](index=102&type=chunk) - The controlling shareholder confirmed compliance with the non-competition undertaking, which independent non-executive directors reviewed and found satisfactory[98](index=98&type=chunk) Auditor's Remuneration (FY2025) | Service Type | Fee (HKD) | | :--- | :--- | | Assurance Services | 780,000 | | Non-Assurance Services (Tax) | 29,900 | | **Total** | **809,900** | - The company has adopted a Shareholder Communication Policy, detailing shareholders' rights and procedures for convening extraordinary general meetings and proposing resolutions[105](index=105&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) [Directors' Report](index=30&type=section&id=董事會報告) [Business and Financial Overview](index=30&type=section&id=業務與財務概覽) This report outlines the Group's operations for the year ended March 31, 2025, with the Group primarily engaged in investment holding and its subsidiaries in building materials sales and installation services, and the Board not recommending a final dividend for the year - The Board does not recommend paying a final dividend for the year ended March 31, 2025[115](index=115&type=chunk) - As at March 31, 2025, the company's distributable reserves were approximately **HKD 80.9 million**[117](index=117&type=chunk) Key Stakeholder Concentration (FY2025) | Category | Proportion | | :--- | :--- | | Top five customers as % of total revenue | Approx. 61.0% | | Largest customer as % of total revenue | Approx. 29.8% | | Top five suppliers as % of total cost | Approx. 37.0% | | Top five subcontractors as % of total cost | Approx. 43.8% | [Directors, Equity and Contracts](index=32&type=section&id=董事、股權及合約) This section discloses detailed information on directors, service contracts, and their interests in the company's shares, with controlling shareholders Mr. Lo Wing Cheong and Ms. Fung Pik Mei collectively holding 73.5% of the company's shares through Helios - Mr. Lo Wing Cheong and Mr. Tam Wing Lok will retire and be eligible for re-election at the upcoming Annual General Meeting[130](index=130&type=chunk) Directors' Interests in Shares (as at March 31, 2025) | Director Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Equity | | :--- | :--- | :--- | :--- | | 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% | | Mr. Li Pui Ho | Spouse's interest | 6,000,000 | 0.75% | - The company adopted a share option scheme in 2017, with a maximum of **80,000,000 shares** (10% of issued shares) available for grant, but no share options have been granted as of the end of the reporting period[141](index=141&type=chunk) - Based on public information, the company has maintained sufficient public float throughout the reporting period[157](index=157&type=chunk) [Environmental, Social and Governance Report](index=39&type=section&id=環境、社會及管治報告) [ESG Report Overview and Governance](index=39&type=section&id=ESG報告概述與管治) This ESG report, prepared in accordance with the HKEX ESG Reporting Guide, covers the Group's environmental, social, and governance performance in its building materials sales and construction contract businesses, identifying service quality, customer data protection, occupational health and safety, and product environmental friendliness as the most material ESG issues - The report is prepared in accordance with the principles of materiality, balance, quantitative disclosure, and consistency, covering the period from **April 1, 2024, to March 31, 2025**[163](index=163&type=chunk)[165](index=165&type=chunk) - Key ESG issues identified through materiality assessment include: ensuring service and product quality, protecting customer personal data, providing a safe working environment, ensuring employee occupational health and safety, and focusing on enhancing product environmental elements[169](index=169&type=chunk) [Environmental Performance](index=41&type=section&id=環境表現) The Group is committed to reducing its environmental impact and has obtained ISO 14001:2015 environmental management system certification, with vehicle exhaust emissions decreasing, while total greenhouse gas emissions increased to 396.1 tonnes of CO2 equivalent due to increased transportation from higher gypsum block procurement Greenhouse Gas Emissions (tonnes of CO2 equivalent) | Scope | Activity | FY2025 | FY2024 | | :--- | :--- | :--- | :--- | | Scope 1 | Direct Emissions (Gasoline Consumption) | 14.1 | 21.8 | | Scope 2 | Indirect Emissions (Purchased Electricity) | 42.9 | 43.8 | | Scope 3 | Other Indirect Emissions (Goods Transportation) | 339.1 | 188.9 | | **Total** | | **396.1** | **254.5** | Resource Consumption | Resource | FY2025 Consumption | FY2024 Consumption | | :--- | :--- | :--- | | Electricity | 54,249 kWh | 55,472 kWh | | Gasoline | 5,218.3 Liters | 8,063.7 Liters | | Water | 132 Cubic Meters | 228 Cubic Meters | - The Group promotes eco-friendly products, has obtained **FSC certification**, and its gypsum block products have received the **Hong Kong Green Building Council Green Material Assessment Scheme (HK G-PASS) Platinum rating**[182](index=182&type=chunk) [Social Performance](index=45&type=section&id=社會表現) On the social front, the Group is committed to talent management, providing equal opportunities, and ensuring employee health and safety, with 31 employees at fiscal year-end and maintaining good labor standards, strictly prohibiting child and forced labor Employee Composition (as at March 31, 2025) | Category | Breakdown | Number of People | | :--- | :--- | :--- | | Total | | 31 | | By Gender | Male | 14 | | | Female | 17 | | By Age | Under 30 | 4 | | | 30-50 years old | 14 | | | Over 50 years old | 13 | - The Group adopted **OHSAS 18001** occupational health and safety management system, with **1 work-related injury** and **no fatalities** during the reporting period[189](index=189&type=chunk)[192](index=192&type=chunk) - The Group has established an integrated management system based on **ISO 9001:2015** and obtained **FSC Chain of Custody certification** to ensure product quality and sustainability[197](index=197&type=chunk) - The Group has established strict codes of conduct and anti-corruption guidelines, with **no related legal cases** during the reporting period[202](index=202&type=chunk)[204](index=204&type=chunk) - The Group actively fulfills its corporate social responsibility, awarded the **"Caring Company" logo** by The Hong Kong Council of Social Service[205](index=205&type=chunk) [Independent Auditor's Report](index=52&type=section&id=獨立核數師報告) [Auditor's Opinion and Key Audit Matters](index=52&type=section&id=核數師意見與關鍵審計事項) The auditor, Shinewing (HK) CPA Limited, issued an unmodified opinion on the Group's consolidated financial statements for the year ended March 31, 2025, deeming them to present a true and fair view of the Group's financial position and performance, identifying two key audit matters: accounting for construction and engineering service contracts, and recognition of expected credit losses (ECL) on contract assets and trade receivables - The auditor issued an **unmodified opinion**, stating that the consolidated financial statements present a true and fair view of the Group's financial position and performance in accordance with Hong Kong Financial Reporting Standards[206](index=206&type=chunk) - Key Audit Matter One: Accounting for construction and engineering service contracts, where the auditor performed audit procedures by evaluating key controls, challenging the reasonableness of completion stage assessments, verifying supporting documents, and recalculating progress[209](index=209&type=chunk)[211](index=211&type=chunk) - Key Audit Matter Two: Recognition of expected credit losses on contract assets and trade receivables, where the auditor performed audit procedures by evaluating key controls over credit risk monitoring, reviewing management's assumptions and judgments, and assessing the reasonableness of loss allowance estimates[209](index=209&type=chunk)[213](index=213&type=chunk) [Consolidated Financial Statements](index=57&type=section&id=綜合財務報表) [Key Financial Statements](index=57&type=section&id=主要財務報表) This section contains the Group's core financial statements, with the consolidated statement of profit or loss showing revenue of HKD 207.2 million and an annual profit of HKD 1.32 million, successfully turning profitable, and the consolidated statement of financial position showing total assets of HKD 194.4 million, total liabilities of HKD 100.7 million, and total equity of HKD 93.7 million Consolidated Statement of Profit or Loss Summary (HKD thousand) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | 207,178 | 102,540 | | Gross Profit | 36,237 | 9,415 | | Profit (Loss) Before Tax | 1,427 | (36,654) | | **Profit (Loss) for the Year** | **1,316** | **(36,717)** | | Basic Earnings (Loss) Per Share (HK cents) | 0.16 | (4.59) | Consolidated Statement of Financial Position Summary (HKD thousand) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 55,047 | 56,920 | | Current Assets | 139,319 | 112,622 | | **Total Assets** | **194,366** | **169,542** | | Current Liabilities | 100,247 | 76,845 | | Non-current Liabilities | 437 | 331 | | **Total Liabilities** | **100,684** | **77,176** | | **Total Equity** | **93,682** | **92,366** | Consolidated Statement of Cash Flows Summary (HKD thousand) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | (8,852) | 24,288 | | Net Cash Used in Investing Activities | (9,581) | (701) | | Net Cash Used in Financing Activities | (3,257) | (18,660) | | **Net Decrease in Cash and Cash Equivalents** | **(21,690)** | **4,927** | | Cash and Cash Equivalents at Year-End | 8,011 | 29,701 | [Notes to the Financial Statements (Selected)](index=63&type=section&id=財務報表附註（選摘）) The notes to the financial statements elaborate on accounting policies and the specific composition of various financial items, including revenue recognition, financial instrument risk management, segment information showing construction contracts as the primary source of revenue and assets, significantly increased contract assets, and secured floating-rate bank borrowings - Note 7: Revenue is disaggregated by major product and service lines, with construction contracts contributing **HKD 191 million** as the primary revenue source, and the total transaction price allocated to unsatisfied performance obligations is approximately **HKD 401 million**[340](index=340&type=chunk)[344](index=344&type=chunk)[345](index=345&type=chunk) - Note 6: Detailed disclosure of financial risk management policies, where the Group is primarily exposed to currency risk from RMB and EUR, and interest rate risk from floating-rate bank borrowings, with credit risk mainly arising from contract assets and trade receivables, and high customer concentration[311](index=311&type=chunk)[312](index=312&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk) - Note 22: Contract assets increased from **HKD 64.07 million** to **HKD 95.11 million**, primarily due to slower client payment certification processes, and a **HKD 3.99 million** impairment loss reversal was recognized this year[383](index=383&type=chunk)[384](index=384&type=chunk)[387](index=387&type=chunk) - Note 26: Total bank borrowings are **HKD 54.38 million**, all secured and bearing floating interest rates, and despite some loans having demand repayment clauses, directors believe banks are unlikely to exercise this right[394](index=394&type=chunk)[335](index=335&type=chunk) [Five-Year Financial Summary](index=123&type=section&id=五年財務摘要) This summary provides key performance, asset, and liability data for the Group's past five fiscal years, showing that the Group successfully returned to profitability in FY2025 after two years of losses, and total assets rebounded in FY2025 after declining in FY2023 and FY2024 Five-Year Performance Summary (HKD thousand) | Item | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 207,178 | 102,540 | 189,429 | 337,372 | 311,754 | | Profit/(Loss) for the Year | 1,316 | (36,717) | (23,206) | 13,742 | 11,300 | Five-Year Assets and Liabilities Summary (HKD thousand) | Item | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 194,366 | 169,542 | 231,158 | 252,691 | 233,327 | | Total Equity | 93,682 | 92,366 | 129,083 | 156,289 | 156,547 | | Total Liabilities | 100,684 | 77,176 | 102,075 | 96,402 | 76,780 |

Financial Highlights [Financial Highlights](index=1&type=section&id=Financial%20Highlights) This fiscal year, the Group's performance significantly improved, with revenue more than doubling year-on-year, successfully turning losses into profits, gross profit nearly tripling, and basic earnings per share shifting from a loss to a profit Financial Summary (For the Year Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | HK$207.2 million | HK$102.5 million | | Gross Profit | HK$36.2 million | HK$9.4 million | | Net Profit (Loss) After Tax | HK$1.3 million | (HK$36.7 million) | | Basic Earnings (Loss) Per Share | HK$0.16 cents | (HK$4.59 cents) | Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2025, the Group's revenue increased by 102% year-on-year to HK$207 million, gross profit grew by 285% to HK$36.24 million, and effective cost control and impairment loss reversals led to an annual profit of HK$1.316 million, a significant improvement from last year's HK$36.717 million loss Key Items from Consolidated Statement of Profit or Loss (HK$'000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 207,178 | 102,540 | | Gross Profit | 36,237 | 9,415 | | Other Income | 4,799 | 1,096 | | Administrative Expenses | (32,482) | (38,240) | | Profit (Loss) Before Tax | 1,427 | (36,654) | | Profit (Loss) for the Year | 1,316 | (36,717) | | Basic Earnings Per Share (HK cents) | 0.16 | (4.59) | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's total assets were HK$194 million and total equity was HK$93.68 million, both showing slight increases from the previous year, with net current assets rising to HK$39.07 million, indicating stable short-term solvency, while contract assets, trade receivables, trade payables, and bank borrowings all increased reflecting business expansion Consolidated Statement of Financial Position Summary (HK$'000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | **Non-current Assets** | 55,047 | 56,920 | | **Current Assets** | 139,319 | 112,622 | | Of which: Contract Assets | 95,112 | 64,074 | | Of which: Trade Receivables | 12,350 | 1,839 | | Of which: Bank Balances and Cash | 8,011 | 29,701 | | **Current Liabilities** | 100,247 | 76,845 | | Of which: Trade and Bills Payables | 19,190 | 8,268 | | Of which: Bank Borrowings | 54,380 | 52,210 | | **Net Current Assets** | 39,072 | 35,777 | | **Total Equity** | 93,682 | 92,366 | [Notes to the Financial Statements (Summary)](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes disclose the company's core businesses, accounting policies, revenue composition, and detailed information on key financial items, with the Group's principal activities being the sale of building materials and provision of construction engineering services, and this fiscal year's significant revenue growth primarily driven by construction contract business, with no dividends declared and no potential dilutive ordinary shares - The Group's principal activities are investment holding, sale of building materials, and provision of building and engineering services[7](index=7&type=chunk) - For the years ended March 31, 2025 and 2024, the Company neither paid nor proposed any dividends[22](index=22&type=chunk) - As there were no dilutive potential ordinary shares outstanding for both financial years, diluted earnings per share were the same as basic earnings per share[23](index=23&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) This fiscal year's total revenue was HK$207 million, a 102% year-on-year increase, with construction contract business revenue at HK$191 million, accounting for 92.2% of total revenue and being the primary growth driver, while building materials sales revenue was HK$16.2 million, and both segments achieved significant profit growth Revenue by Major Product or Service Line (HK$'000) | Product/Service | 2025 | 2024 | | :--- | :--- | :--- | | **Sale of Building Materials** | | | | — Gypsum Blocks | 8,611 | 4,775 | | — Timber Flooring | 6,457 | 820 | | **Provision of Building and Engineering Services** | | | | — Gypsum Blocks | 54,935 | 42,100 | | — Timber Flooring | 92,407 | 43,384 | | — Demountable Partition Panels | 26,029 | 2,416 | | **Total** | **207,178** | **102,540** | Segment Results (HK$'000) | Segment | 2025 Segment Profit | 2024 Segment Profit | | :--- | :--- | :--- | | Sale of Building Materials | 10,604 | 2,343 | | Construction Contracts | 28,299 | 1,511 | | **Total** | **38,903** | **3,854** | Management Discussion and Analysis [Business Review and Market Outlook](index=13&type=section&id=Business%20Review%20and%20Market%20Outlook) Despite a volatile macroeconomic environment, the Group successfully turned around its performance by securing several large projects in 2024 that commenced in the second half, capitalizing on increased private residential property supply and the Hong Kong Government's 'Ten-Year Hospital Development Plan' to achieve significant growth in timber flooring and gypsum block businesses, and remains optimistic about the medium-to-long-term outlook for Hong Kong's construction industry, continuing to leverage its competitive advantages in hospital projects and new material applications - The Group secured several large projects in 2024, which commenced in the second half of 2024, being the primary reason for the increase in revenue and net profit this year[30](index=30&type=chunk) - The Group actively participates in the 'Ten-Year Hospital Development Plan', currently holding 3 uncommenced projects with a total contract value of approximately **HK$195.5 million**[33](index=33&type=chunk) - New products launched by the Group, such as stone crystal wall panels, secured new large hospital project contracts worth approximately **HK$12.2 million** due to their antibacterial, environmentally friendly, and easy-to-install features[34](index=34&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) This fiscal year saw strong financial performance, with total revenue increasing by 102.1% year-on-year to HK$207 million, primarily driven by construction contract business, and gross profit margin significantly improving from 9.2% to 17.5% due to cost control and a slight increase in higher-margin building materials sales, while sales and administrative expenses decreased, collectively enabling the Group to turn last year's net loss of HK$36.7 million into a net profit of HK$1.3 million this year [Revenue](index=15&type=section&id=Revenue) Total revenue increased by 102.1% year-on-year to HK$207.2 million, with construction contract revenue growing by 97.1% to HK$191 million, primarily due to doubled timber flooring project revenue and contributions from new services like demountable partition panels, while building materials sales revenue rose by 189.3% to HK$16.2 million, mainly from increased orders for gypsum blocks and timber flooring Revenue Sources (HK$ million) | Segment | 2025 | 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Construction Contracts | 191.0 | 96.9 | +97.1% | | Sale of Building Materials | 16.2 | 5.6 | +189.3% | | **Total** | **207.2** | **102.5** | **+102.1%** | [Gross Profit and Gross Profit Margin](index=16&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's gross profit significantly increased from HK$9.4 million last year to HK$36.2 million, with gross profit margin improving from 9.2% to 17.5%, primarily due to the Group's commitment to cost control, resulting in subcontractor cost growth lower than revenue growth, and a slight increase in the proportion of higher-margin building materials sales Gross Profit and Gross Profit Margin Performance | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Gross Profit | Approx. HK$36.2 million | Approx. HK$9.4 million | | Gross Profit Margin | Approx. 17.5% | Approx. 9.2% | [Net Profit (Loss)](index=17&type=section&id=Net%20Profit%20(Loss)) The Group successfully turned losses into profits, recording a net profit of approximately HK$1.3 million, compared to a net loss of approximately HK$36.7 million in the prior year, with the improved performance primarily attributable to significant increases in revenue and gross profit, as well as the reversal of an impairment loss on a project - The shift from net loss to net profit was primarily due to increased revenue and gross profit, along with the reversal of an impairment loss on a project[49](index=49&type=chunk) [Liquidity and Financial Resources Review](index=18&type=section&id=Liquidity%20and%20Financial%20Resources%20Review) The Group's financial position remains robust, with slight increases in total equity and net current assets at fiscal year-end, while the gearing ratio slightly rose to 59.3% and the current ratio decreased from 1.5 times to 1.4 times, and the Group's bank facilities are primarily secured by properties, life insurance policies, and pledged bank deposits Key Financial Ratios | Ratio | 2025 | 2024 | | :--- | :--- | :--- | | Gearing Ratio | 59.3% | 57.4% | | Current Ratio | 1.4 | 1.5 | - As of March 31, 2025, the Group's bank facilities were secured by properties with a net book value of approximately **HK$46.1 million**, life insurance policies of approximately **HK$6.9 million**, and pledged bank deposits of approximately **HK$18.9 million**[57](index=57&type=chunk) - As of March 31, 2025, the Group's contingent liabilities for performance bonds were approximately **HK$5.6 million**, a significant decrease from **HK$14 million** last year[59](index=59&type=chunk) [Key Risks and Uncertainties](index=19&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces multiple operational risks, including volatile cash flow patterns with potential net cash outflows in early project stages, inaccurate project cost and progress estimates, non-fixed project profit margins, reliance on securing new projects, and foreign exchange and interest rate fluctuation risks, in addition to significant credit risk, particularly for contract assets, and high customer concentration, with the top five customers accounting for 61% of total revenue - High customer concentration: The top five customers accounted for approximately **61.0%** of total revenue this year, with the largest customer accounting for approximately **29.8%**[70](index=70&type=chunk) - Credit risk: Contract assets with a carrying amount of approximately **HK$95.1 million** constitute a significant portion of the Group's assets, posing a major credit risk[68](index=68&type=chunk) - Cash flow risk: The Group may experience net cash outflows during specific project periods due to the need to pay for materials and subcontractors before receiving payments from customers[61](index=61&type=chunk) - Interest rate risk: Approximately **HK$54.4 million** of the Group's interest-bearing bank borrowings are floating-rate loans, which are not hedged, exposing the Group to the risk of rising interest rates[67](index=67&type=chunk) Other Information [Corporate Governance and Compliance](index=23&type=section&id=Corporate%20Governance%20and%20Compliance) The Group is committed to maintaining high standards of corporate governance, and during the reporting period, the Company complied with all applicable code provisions, except for the deviation from the Corporate Governance Code's recommendation that the roles of Chairman and Chief Executive should be separate, as Mr. Lo Wing Cheong holds both positions, which the Board believes facilitates efficient decision-making, and all Directors have confirmed compliance with the standard code for securities transactions - The Company deviated from Corporate Governance Code provision C.2.1, which recommends a separation of the roles of Chairman and Chief Executive, as Mr. Lo Wing Cheong holds both positions, an arrangement the Board believes facilitates prompt and effective decision-making[76](index=76&type=chunk) - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for securities transactions by Directors, and all Directors have confirmed compliance with this code during the reporting period upon enquiry[77](index=77&type=chunk) [Dividends and Annual General Meeting](index=24&type=section&id=Dividends%20and%20Annual%20General%20Meeting) The Board does not recommend the payment of a final dividend for the financial year ended March 31, 2025, and the Company has confirmed that the Annual General Meeting will be held on August 20, 2025, with related share transfer registration suspension arrangements announced - The Board does not recommend the declaration of a final dividend for the year ended March 31, 2025[80](index=80&type=chunk) - The Annual General Meeting is scheduled for August 20, 2025, and to determine eligibility for attendance, share transfer registration will be suspended from August 15 to August 20, 2025[81](index=81&type=chunk)

Group 1 - The core viewpoint of the news highlights the recent performance of Yide Investment Holdings, which saw a significant increase in its stock price despite a cumulative decline over the past month and year [1] - As of May 8, the Hang Seng Index rose by 0.37% to 22,775.92 points, while Yide Investment Holdings' stock price increased by 28.42% to HKD 0.235 per share, with a trading volume of 736,000 shares and a turnover of HKD 156,000 [1] - Financial data shows that for the period ending September 30, 2024, Yide Investment Holdings achieved total revenue of HKD 61.96 million, a year-on-year increase of 20.99%, and a net profit attributable to shareholders of HKD 2.67 million, up 117.57% [1] Group 2 - The company operates primarily as a contractor providing construction materials and related installation services in Hong Kong, with its business mainly managed by its subsidiary, Jun Tai Engineering Limited [2] - The average price-to-earnings (P/E) ratio for the construction industry is 7.37 times, with a median of 1.58 times, while Yide Investment Holdings has a P/E ratio of -8.68 times, ranking 151st in the industry [1] - There are currently no institutional investment ratings for Yide Investment Holdings [1]

Share Option Scheme - The total number of shares available for issuance under the share option scheme is 80,000,000 shares, accounting for 10% of the issued shares as of the date of the 2024 annual report[3]. Supplementary Information - The company emphasizes that the supplementary information does not affect any other data contained in the 2024 annual report[3].

Financial Performance - For the six months ended September 30, 2024, the company reported revenue of approximately HKD 68.7 million, an increase of about HKD 11.9 million or 21.0% compared to HKD 56.8 million for the same period in 2023[6] - The net profit for the six months ended September 30, 2024, was approximately HKD 3.0 million, a significant improvement from a net loss of approximately HKD 16.9 million for the same period in 2023[6] - Total revenue for the six months ended September 30, 2024, was HKD 68,709,000, an increase of 20.9% compared to HKD 56,791,000 for the same period in 2023[95] - The total profit before tax for the six months ended September 30, 2024, was HKD 2,997,000, compared to a loss of HKD 16,856,000 in the same period of 2023[101] - The company achieved a profit attributable to owners of HKD 2,966,000 for the six months ending September 30, 2024, a turnaround from a loss of HKD 16,883,000 in the same period last year[79] - The gross profit for the same period was HKD 14,174,000, compared to HKD 2,770,000 in the previous year, indicating a significant increase in profitability[79] - Basic and diluted earnings per share for the current period were HKD 0.37, compared to a loss per share of HKD 2.11 in the previous year[79] Revenue Sources - Revenue from construction contracts increased by approximately HKD 9.3 million or 17.5% to about HKD 62.3 million for the six months ended September 30, 2024, compared to HKD 53.0 million for the same period in 2023[20] - The company generated revenue of approximately HKD 6.4 million from building materials, up from HKD 3.8 million, representing a growth of about 68.4%[17] - The company’s high-quality wooden flooring products generated revenue of approximately HKD 30.4 million, showing a slight increase despite a challenging market environment[7] - Revenue from building materials increased by approximately HKD 2.6 million or 68.4% to about HKD 6.4 million for the six months ending September 30, 2024, driven by an increase in sales of gypsum brick products[21] - Revenue from gypsum bricks sales increased to HKD 5,216,000 from HKD 3,184,000, representing a growth of 64.0% year-over-year[95] - Revenue from construction contracts for wood flooring rose to HKD 29,295,000, up 8.4% from HKD 26,931,000 in the previous year[95] Project and Contract Updates - The company is currently working on several large-scale projects, including a public utility project and a hospital project under the ten-year hospital development plan initiated by the Hong Kong government[11] - The company has secured a contract worth approximately HKD 12.2 million for the supply and installation of antibacterial stone crystal wall panels for a large hospital project[12] - The company has commenced the supply and installation of three public utility projects using its removable partition systems[12] - The company plans to allocate more resources to capture additional projects arising from the ten-year hospital development plan and other public utility projects[11] Cost and Profitability - Cost of sales and services for the six months ending September 30, 2024, was approximately HKD 54.5 million, a slight increase of about 0.9% from HKD 54.0 million for the same period in 2023[22] - Gross profit increased from approximately HKD 2.8 million to about HKD 14.2 million, with the gross profit margin rising from approximately 4.9% to 20.6% for the six months ending September 30, 2024[24] - Other income rose from approximately HKD 0.4 million to about HKD 7.0 million, attributed to the reversal of an impairment loss of about HKD 6.5 million[25] Assets and Liabilities - Total equity as of September 30, 2024, was approximately HKD 95.3 million, up from HKD 92.4 million as of March 31, 2024[35] - Current assets net value was approximately HKD 39.4 million as of September 30, 2024, compared to HKD 35.8 million as of March 31, 2024[35] - The company’s total liabilities increased to HKD 89,820 thousand as of September 30, 2024, compared to HKD 76,845 thousand as of March 31, 2024, marking an increase of approximately 17%[81] - The company reported a total asset value of HKD 185,970,000 as of September 30, 2024, an increase from HKD 169,542,000 as of March 31, 2024[108] - The total liabilities increased to HKD 90,638,000 as of September 30, 2024, compared to HKD 77,176,000 as of March 31, 2024[108] Cash Flow and Financing - The company reported a net cash outflow from operating activities of HKD (15,486) thousand for the six months ended September 30, 2024, compared to a cash inflow of HKD 5,145 thousand for the same period in 2023[87] - The company expects future operations and expansion plans to be funded primarily through cash generated from operations and bank borrowings[40] - The company’s interest-bearing bank borrowings were approximately HKD 55.3 million, with all borrowings being at floating rates, exposing the company to potential increases in interest expenses[52] - The group raised bank borrowings of approximately HKD 28,000,000 for the six months ended September 30, 2024, compared to HKD 43,000,000 for the same period last year, reflecting a decrease of about 34.9%[149] Risk Factors - The company faces cash flow volatility due to the timing of cash inflows from clients, which may not align with cash outflows for materials and subcontractor payments[45] - The company has identified risks related to project cost estimation and execution timelines, which may be affected by various factors including material shortages and adverse weather conditions[46] - The company continues to monitor foreign exchange risks as certain transactions are denominated in currencies other than its functional currency, the Hong Kong dollar[51] - The company has not hedged its interest rate risk, which may adversely affect cash flow and profitability if interest rates rise[52] Shareholder and Governance - Major shareholders include Helios Enterprise Holding Limited, which holds 588,000,000 shares, representing 73.5% of the company's equity[69] - The company has adopted a code of conduct for securities trading by its directors, confirming compliance as of September 30, 2024[64] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2024, confirming compliance with applicable accounting standards[66] Employee and Management Costs - Employee costs for the six months ended September 30, 2024, totaled approximately HKD 7.9 million, a decrease from HKD 8.2 million for the same period in 2023, primarily due to a reduction in average headcount[57] - The total remuneration for directors and key management personnel for the six months ended September 30, 2024, was HKD 4,018,000, an increase of approximately 2.1% from HKD 3,935,000 in the previous year[157] Legal Matters - The group is involved in two lawsuits related to work injuries, but management believes that insurance coverage will mitigate any significant impact on the financial statements[159]

[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].