Financial Performance - The Group's revenue for the Reporting Period was approximately HK$325.3 million, a decrease of approximately HK$4.9 million, or 1.5%, compared to the corresponding period in 2021[18]. - The Group's gross profit increased by approximately 225% to approximately HK$15.6 million, compared to the corresponding period in 2021[18]. - The net profit for the Group amounted to approximately HK$5.0 million, representing an increase of approximately HK$8.7 million, or 235.1%, compared to the corresponding period in 2021[18]. - Revenue for the six months ended September 30, 2022, was HK$325.27 million, a slight decrease from HK$330.16 million in the same period of 2021, reflecting a decline of approximately 1.7%[81]. - Gross profit for the same period was HK$15.60 million, significantly up from HK$4.78 million in 2021, indicating an increase of approximately 227%[81]. - Profit before income tax for the period was HK$6.22 million, compared to a loss of HK$3.35 million in the previous year, marking a turnaround in profitability[81]. - The company reported a profit attributable to equity holders of HK$4.98 million, compared to a loss of HK$3.68 million in the prior year[81]. - Earnings per share attributable to equity holders was HK$0.42, a recovery from a loss of HK$0.31 per share in the previous year[81]. - For the six months ended September 30, 2022, the company reported a total comprehensive income of HK$4,983,000, compared to a loss of HK$3,677,000 for the same period in 2021[90]. Project and Market Overview - The Group was awarded 8 projects with an original contract sum of approximately HK$246.5 million during the Reporting Period[18]. - The construction industry in Hong Kong is facing challenges due to the lingering COVID-19 pandemic and the war in Ukraine, impacting the economic outlook[19]. - Continuous interest rate hikes in Hong Kong have led to a low point in the real estate price index, affecting investment sentiment[20]. - The government has included large-scale infrastructure plans in its Policy Address, which may lead to an increase in sizable construction projects[20]. - The Group plans to explore business opportunities and expand its geographical coverage beyond the Hong Kong market for future development[21]. Expenses and Costs - Administrative expenses rose by approximately HK$0.9 million or 9.8% to approximately HK$10.1 million, primarily due to increased staff costs[29]. - Finance costs decreased by approximately HK$219,000 or 73.5% to approximately HK$79,000, attributed to a reduction in short-term borrowings[30]. - Other gains decreased by approximately HK$0.4 million or 26.7% to approximately HK$1.1 million, mainly due to exchange losses from Renminbi-denominated deposits[28]. - Total staff costs for the reporting period were approximately HK$48.7 million, down from approximately HK$56.2 million for the corresponding period in 2021, representing a decrease of about 14%[72][76]. - Depreciation expenses increased to HK$10,691,000 in 2022 from HK$9,207,000 in 2021, reflecting a rise of about 16.1%[123]. - Subcontracting charges included in direct costs rose to HK$94,087,000 in 2022, up from HK$81,793,000 in 2021, indicating an increase of approximately 15%[121]. Cash and Financial Position - The Group's total cash, bank balances, and pledged bank deposits increased to approximately HK$129.4 million as of 30 September 2022, up from approximately HK$120.4 million[41]. - As of 30 September 2022, the company had short-term bank borrowings of approximately HK$4.1 million, down from approximately HK$6.6 million[42]. - The company's short-term bank borrowings were approximately HK$4.1 million as of September 30, 2022, down from HK$6.6 million as of March 31, 2022[47]. - The asset-to-liability ratio was approximately 1.6% as of September 30, 2022, compared to 2.8% as of March 31, 2022[47]. - The company’s cash and cash equivalents at the end of the period were HK$124,223,000, up from HK$73,980,000 at the end of the previous year[94]. - The company recorded a net increase in cash and cash equivalents of HK$25,017,000, compared to HK$34,941,000 in the prior year[94]. - Cash generated from operations for the six months ended 30 September 2022 was HK$37,953,000, a decrease from HK$40,466,000 in 2021[94]. Taxation and Dividends - The increase in income tax expense was approximately HK$0.9 million or 300%, rising from approximately HK$0.3 million to approximately HK$1.2 million due to increased deferred tax expenses[38]. - The total income tax expense for the six months ended September 30, 2022, was HK$1,240,000, compared to HK$331,000 in 2021, marking an increase of about 274%[126]. - The company did not declare any interim dividend for the reporting period, consistent with the previous year[63]. - No interim dividend was declared for the six months ended September 30, 2022, consistent with the same period in 2021[129]. Employee and Management Information - As of September 30, 2022, the company employed 256 full-time employees, an increase from 205 employees as of March 31, 2022[72][76]. - The salaries, fees, and allowances for key management personnel for the six months ended 30 September 2022 were HK$1,879,000, an increase from HK$1,600,000 in 2021, reflecting an increase of approximately 17.4%[198]. - The total remuneration for key management personnel, including discretionary bonuses and retirement benefit scheme contributions, was HK$1,915,000 for the six months ended 30 September 2022, compared to HK$1,655,000 in 2021, indicating an increase of approximately 15.7%[198]. Assets and Liabilities - Total assets as of September 30, 2022, were HK$281.66 million, an increase from HK$247.60 million as of March 31, 2022, representing a growth of approximately 13.8%[84]. - Net assets stood at HK$260.34 million, up from HK$255.36 million as of March 31, 2022, reflecting a modest increase of about 1.2%[87]. - The Group's deposits, prepayments, and other receivables total HK$49,816,000 as of September 30, 2022, compared to HK$39,488,000 as of March 31, 2022[151]. - The ageing analysis of trade receivables shows HK$41,092,000 within 0-30 days and HK$8,724,000 within 31-60 days as of September 30, 2022[160]. - The Group's borrowings and bank facilities are secured by investment property with a carrying amount of HK$4,660,000 as of September 30, 2022[147]. Other Information - The Group operates solely in one segment, focusing on foundation works in Hong Kong[54]. - The Group's financial position and results were not materially impacted by the adoption of amended HKFRSs effective from April 1, 2022[99]. - There were no significant events affecting the company after the reporting period up to the date of the report[74][78].

Financial Performance - The Group's total revenue for the year ended 31 March 2022 was approximately HK$613.6 million, a decrease of about 33.5% compared to HK$922.9 million in the previous year[12]. - The Group achieved a gross profit of HK$19.4 million, a turnaround from a gross loss of HK$13.3 million for the year ended 31 March 2021[12]. - The Group's net profit for the year was approximately HK$7.4 million[27]. - The gross profit increased by approximately HK$32.7 million, or approximately 245.9%, from a gross loss of approximately HK$13.3 million to a gross profit of approximately HK$19.4 million, with a gross profit margin of approximately 3.2%[35]. - The net profit for the Review Year was approximately HK$7.4 million, compared to a net loss of approximately HK$20.1 million for the previous year, resulting in a net profit margin of approximately 1.2%[38]. - The total staff cost incurred by the Group for the Review Year was approximately HK$96.2 million, a decrease from approximately HK$171.9 million in the year ended March 31, 2021[110]. Economic Context - Hong Kong's GDP grew by 6.4% in 2021, indicating a significant rebound after two difficult years due to the COVID-19 pandemic[10]. - The economic recovery in Hong Kong is still ongoing, with the economy approximately 2% below its size in 2018[10]. - The construction industry in Hong Kong experienced a loss of approximately 22.5%, equating to HK$38 billion, due to the pandemic[11]. - The gross value of construction works performed by main contractors in Hong Kong reached approximately HK$231,404 million, with a 0.7% growth compared to the previous year[24]. - The gross value of piling and related foundation works performed by main contractors grew 18.4%, reaching approximately HK$15,761 million[24]. - The construction demand in Hong Kong is expected to increase due to government initiatives to tackle housing shortages[21]. Operational Efficiency - The Group's cost control efforts have yielded significant results, contributing to the gross profit achieved[12]. - The Group has developed an improved cost control system to enhance operational efficiency amid COVID-19 pressures[27]. - Direct costs decreased by approximately HK$342.0 million, or approximately 36.5%, from approximately HK$936.2 million to approximately HK$594.2 million for the Review Year[35]. - Administrative expenses decreased by approximately HK$2.1 million, or approximately 10.0%, from approximately HK$21.1 million to approximately HK$19.0 million[38]. - Finance costs decreased to approximately HK$547,000 from approximately HK$771,000, primarily due to a decrease in average bank borrowings[38]. Corporate Governance - The Group has been committed to maintaining good corporate governance to safeguard shareholder interests and maximize shareholder value[135]. - The Company has complied with all code provisions set out in the Corporate Governance Code from the Listing Date to March 31, 2022[139]. - The Board consists of five members, including two executive directors and three independent non-executive directors, chaired by Mr. Yip[142]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all directors during the reporting period[141]. - The Company has a balanced composition of executive and non-executive directors to ensure independent judgment[142]. Risk Management - The Group faces industry risks related to the property market in Hong Kong, which may affect the availability of foundation projects[46]. - Compliance risks exist due to various laws and regulations governing the Group's operations, which may increase costs and operational burdens[52]. - Uncertainties in construction progress may arise from unexpected geological conditions, potentially leading to additional costs and project complexity[54]. - The Group's financial position and business operations may be adversely affected by significant unexpected geological conditions[55]. Community Engagement - The Group continues to engage in charitable activities to support the local community during challenging times[19]. - The Group values customer feedback and maintains strong relationships to enhance recognition and visibility in the foundation industry[79]. Future Outlook - The Group aims to explore business opportunities and expand its geographical coverage beyond the Hong Kong market[21]. - The Group aims to reduce reliance on major customers by undertaking larger projects for a broader customer base[78]. - The Company will continue to evaluate other business development opportunities when uncertainties about the pandemic decrease[107]. Environmental Management - The Group has established an environmental management system compliant with ISO 14001:2015 standards to minimize environmental impact from construction activities[70]. - The Group plans to acquire new, environmentally friendly machinery to comply with the NRMM Regulation[71].

Financial Performance - The Group recorded a revenue of approximately HK$330.2 million, representing a 36.2% decrease compared to the corresponding period last year[19] - The Group's gross profit reached approximately HK$4.8 million, an increase of 269.2% compared to approximately HK$1.3 million from the corresponding period last year[19] - The Group's net loss decreased by approximately 21.3%, from approximately HK$4.7 million in the corresponding period last year to approximately HK$3.7 million during the Reporting Period[19] - The Group's revenue for the Reporting Period decreased by approximately HK$187.4 million or approximately 36.2%, from approximately HK$517.6 million to approximately HK$330.2 million[28] - The Group's gross profit increased by approximately HK$3.5 million or approximately 269.2%, from approximately HK$1.3 million to approximately HK$4.8 million[28] - The gross profit margin for the Reporting Period was approximately 1.4%, compared to approximately 0.3% in the corresponding period in 2020[28] - Other gains decreased by approximately HK$5.0 million or approximately 76.9%, from approximately HK$6.5 million to approximately HK$1.5 million[28] - Administrative expenses decreased by approximately HK$1.6 million or approximately 14.8%, from approximately HK$10.8 million to approximately HK$9.2 million[28] - Finance costs decreased by approximately HK$0.1 million or approximately 25.0%, from approximately HK$0.4 million to approximately HK$0.3 million[28] - The Group was awarded 11 projects with an original contract sum of approximately HK$421.7 million during the Reporting Period[23] Economic Context - Hong Kong's economy recorded a GDP growth rate of 7.8% for the first half of 2021, indicating a recovery from the pandemic[10] - The unemployment rate within the construction industry dropped to 6.8% for the three months from July to September 2021, a significant improvement from 10.9% in the same period in 2020[11] - The property market in Hong Kong is gaining momentum again, supported by low interest rates and a solid economic rebound[20] - The solid demand for housing and infrastructure is expected to boost the foundation industry as business activities return to normal[22] Cost Management - The Group managed to exercise stringent cost control, resulting in an approximately 37.0% drop in direct costs during the Reporting Period[19] - Direct costs decreased by approximately HK$190.8 million or approximately 37.0%, from approximately HK$516.2 million to approximately HK$325.4 million[28] - Total staff costs incurred during the reporting period were approximately HK$56.2 million, down from approximately HK$94.3 million in the corresponding period of 2020, representing a reduction of 40.4%[57] - The company employed a total of 194 full-time employees as of 30 September 2021, a decrease from 335 full-time employees as of 31 March 2021[57] Cash and Liquidity - As at 30 September 2021, the Group had total cash and cash equivalents and pledged bank deposits of approximately HK$96.0 million, an increase from approximately HK$60.7 million as of 31 March 2021[1] - Cash and cash equivalents at the end of the period increased to HK$73,980,000, compared to HK$49,096,000 at the end of the same period in 2020, representing a growth of 50.5%[76] - The net cash generated from operating activities was HK$43,013,000, significantly higher than HK$2,752,000 in the prior year[76] - The company had borrowings of HK$11,349,000 as of September 30, 2021, which is comparable to HK$11,387,000 as of March 31, 2021[68] Shareholder Information - As of September 30, 2021, Mr. Yip Yuk Kit holds 890,000,000 shares, representing a 74.17% shareholding in the company[185] - Fame Circle Limited, which is 100% owned by Mr. Yip, also holds 890,000,000 shares, equating to a 74.17% interest[196] - Ms. Yip Lai Ping, as the spouse of Mr. Yip, is deemed to have an interest in the same 890,000,000 shares, also representing 74.17%[196] - The shareholding structure indicates a concentrated ownership with Mr. Yip Yuk Kit and Fame Circle Limited controlling 74.17% of the company[196] Future Outlook - The expected timeline for full utilization of unutilized proceeds has been delayed to 31 December 2022 due to the impact of COVID-19[55] - The company plans to continue monitoring the developments of the COVID-19 pandemic to effectively utilize the net proceeds for long-term benefits[55] Accounting and Reporting - The financial statements are prepared in accordance with HKFRS 15 and have not been audited, highlighting the preliminary nature of the reported figures[82][83] - The adoption of amended HKFRSs effective from 1 April 2021 had no material impact on the Group's financial results[80] - The Group's management is responsible for making accounting judgments and estimates that affect the reported amounts of assets, liabilities, income, and expenses[80] Risks and Liabilities - The Group's foreign exchange rate risks are considered insignificant as all revenue and transactions are settled in Hong Kong dollars[4] - The Group has been involved in various claims and litigations, but the Directors believe these will not materially impact the financial statements[180] - No significant provisions have been made in the financial statements for potential claims or lawsuits as they are expected not to have a material impact[181]

Financial Performance - The Group's total revenue for the year ended March 31, 2021, was approximately HK$922.9 million, an increase of approximately 81.2% compared to HK$509.3 million in the previous year[11]. - The Group experienced a gross loss of HK$13.3 million, compared to a gross profit of HK$5.2 million in the previous year, primarily due to intensified market competition and COVID-19-related project delays[11]. - Despite an increase in revenue, the Group recorded a gross loss due to increased direct costs amid the COVID-19 pandemic[28]. - The gross loss for the Review Year was approximately HK$13.3 million, compared to a gross profit of approximately HK$5.2 million for the previous year, resulting in a gross loss margin of approximately 1.4%[34]. - The net loss for the Review Year was approximately HK$20.1 million, with a net loss margin of approximately 2.2%, improved from a margin of approximately 3.9% in the previous year[43]. - The net profit margin improved to approximately negative 2.2% as at 31 March 2021, from negative 3.9% as at 31 March 2020, primarily due to an increase in revenue[58]. Market Conditions - The total gross value of construction works performed by main contractors in Hong Kong decreased by approximately 2.8% in nominal terms to approximately HK$229.9 billion in 2020[11]. - The construction industry is facing challenges such as skilled labor shortages and rising labor costs, which are expected to continue even after COVID-19 restrictions are lifted[13]. - The overall sentiment in the construction industry remains pessimistic, with players expected to stay prudent in their business decisions[22]. - The construction industry remains cautious due to ongoing competition, skilled labor shortages, and rising labor costs[17]. Business Strategy - The Group plans to explore business opportunities and expand its geographical coverage beyond the Hong Kong market to enhance future development and strengthen revenue bases[14]. - The Group aims to leverage its competitive strengths and established long-term relationships with customers to navigate the challenging market environment[14]. - The Group aims to diversify its business and expand its geographical coverage beyond the Hong Kong market to enhance its revenue base[17]. - The Group continues to leverage its competitive advantages in foundation engineering and long-term client relationships to explore new business opportunities[17]. - The Group aims to reduce reliance on major customers by undertaking larger projects for a broader customer base[87]. Operational Challenges - Government subsidies have provided relief for businesses and individuals in the construction industry, contributing to a hopeful outlook for recovery[13]. - The Group acknowledges the importance of maintaining productivity and performance despite ongoing challenges faced by the industry[15]. - Uncertainties in construction progress may arise from unexpected geological conditions, leading to potential cost overruns[65]. - The company’s financial position may be adversely affected by significant unexpected geological or subsoil conditions during foundation works[65]. Financial Management - Direct costs rose by approximately HK$432.1 million, or approximately 85.7%, from approximately HK$504.1 million to approximately HK$936.2 million[33]. - The current ratio increased from approximately 3.6 times as at 31 March 2020 to approximately 5.1 times as at 31 March 2021, primarily due to a decrease in trade and other payables[50]. - The gearing ratio decreased from approximately 7.0% as at 31 March 2020 to approximately 5.1% as at 31 March 2021, mainly due to a reduction in bank borrowings[50]. - The Group has adopted a prudent financial management approach towards its treasury policy, closely monitoring liquidity to meet funding requirements[94]. Human Resources - As of 31 March 2021, the Company employed 335 full-time employees, a decrease from 426 employees as of 31 March 2020[114]. - Total staff costs for the Review Year were approximately HK$171.9 million, compared to approximately HK$120.3 million for the year ended 31 March 2020, reflecting a 43% increase[114]. - The remuneration packages for employees include salary, discretionary bonuses, and other cash subsidies, with an annual review system in place[114]. - The Group recognizes the importance of maintaining competitive remuneration packages to attract and retain skilled labor in the construction industry[86]. Corporate Governance - The Group has adopted the corporate governance code contained in Appendix 14 to the Listing Rules to enhance accountability and safeguard shareholder interests[164]. - The Board consists of six members, including two executive Directors and four independent non-executive Directors, ensuring a balanced composition[169]. - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[168]. - The Company reviews its corporate governance policies annually and complies with the "comply or explain" principle in its corporate governance report[197]. Environmental Management - The Group has established an environmental management system certified to ISO 14001:2015 standards to minimize adverse environmental impacts from operations[79]. - The Group plans to acquire more environmentally friendly machinery to comply with the NRMM Regulation and adapt to industry changes[80]. - The Group's operations may result in emissions and waste, subjecting them to various environmental protection laws and regulations[77].

Revenue and Financial Performance - The Group's revenue increased by approximately HK$280.4 million compared to the corresponding period in 2019[15]. - For the Reporting Period, the Group's revenue increased by approximately HK$280.4 million or approximately 118.2% compared to the corresponding period in 2019, reaching approximately HK$517.6 million[22]. - Revenue for the six months ended September 30, 2020, was HK$517,588,000, a significant increase from HK$237,189,000 in the same period of 2019, representing a growth of approximately 118%[113]. - Revenue from Customer A was HK$421,267,000, contributing over 10% of the Group's total revenue, compared to HK$175,216,000 in 2019, reflecting a growth of approximately 140%[123]. - The company reported a net loss of HK$4,655,000 for the six months ended September 30, 2020, compared to a loss of HK$5,632,000 for the same period in 2019, indicating an improvement in financial performance[86]. - Loss before tax for the six months ended 30 September 2020 was HK$4,655,000, compared to a loss of HK$5,632,000 for the same period in 2019, representing a decrease of approximately 17.3%[143]. Costs and Expenses - The Group's gross profit decreased by approximately HK$5.8 million or approximately 81.7% compared to the corresponding period in 2019, resulting in a gross profit margin of approximately 0.3%[22]. - Employee costs for the reporting period totaled approximately HK$94.3 million, a significant increase from HK$45.1 million in the same period of 2019, representing an increase of about 109%[57]. - Direct costs for the period were HK$87,465,000, compared to HK$38,664,000 in the previous year, reflecting an increase of 126.4%[134]. - Administrative expenses were HK$6,884,000 for the six months ended September 30, 2020, slightly up from HK$6,424,000 in 2019, showing an increase of 7.1%[134]. - Total staff costs, including directors' remuneration, amounted to HK$94,349,000 for the six months ended 30 September 2020, up from HK$45,088,000 in 2019, indicating a significant increase of 109.1%[134]. Cash Flow and Liquidity - As of 30 September 2020, the Group had total cash and cash equivalents of approximately HK$54.3 million, a decrease from approximately HK$72.0 million as of 31 March 2020[29]. - Cash generated from operating activities was HK$2,752,000, a significant recovery from cash used in operations of HK$62,693,000 in the previous year[90]. - Cash and cash equivalents at the end of the period increased to HK$49,096,000, compared to HK$43,533,000 at the end of the same period last year, showing a positive cash flow trend[90]. - The Group's total net assets decreased to HK$263,383,000 from HK$268,038,000, reflecting a 1.5% decline[77]. - Net current assets increased to HK$209,255,000, up from HK$204,168,000, reflecting a positive trend in liquidity[75]. Borrowings and Financial Position - The Group's short-term bank borrowings decreased by approximately 19.0% from HK$18.4 million as of 31 March 2020 to approximately HK$14.9 million as of 30 September 2020[30]. - The gearing ratio of the Group as of 30 September 2020 was approximately 5.7%, down from approximately 7.0% as of 31 March 2020[30]. - The company had no new borrowings during the period, contrasting with HK$20,000,000 in proceeds from new borrowings in the previous year[90]. - Bank loans repayable on demand amounted to HK$14,924,000, compared to HK$18,375,000 as of March 31, 2020[194]. - The interest rate on bank loans remained stable at 4.73% to 4.76% per annum for both September 30, 2020, and March 31, 2020[194]. Government Support and Grants - Other gains increased by approximately HK$7.3 million or approximately 912.5% compared to the corresponding period in 2019, primarily due to government grants and subsidies amounting to approximately HK$5.6 million[22]. - The Group received government grants totaling HK$5,574,000 under various COVID-19 support schemes, which were recognized in the financial statements[126]. Employment and Workforce - As of September 30, 2020, the Group employed a total of 333 full-time employees, a decrease from 426 full-time employees as of March 31, 2020[53]. - The total staff costs incurred by the Group for the Reporting Period were approximately HK$94.3 million, compared to approximately HK$45.1 million for the corresponding period in 2019[53]. Market and Economic Conditions - The overall gross value of construction works in Q2 2020 dropped, with a 14.4% increase in the public sector unable to offset a 26.1% decline in the private sector[8]. - The COVID-19 pandemic has led to higher operating costs due to project delays during the Reporting Period[15]. - Hong Kong's GDP contracted by 9.0% year-on-year in Q2 2020, reflecting ongoing economic challenges[7]. - The negative business confidence indicator during the first half of 2020 highlights the pessimistic sentiment among investors[7]. Future Outlook and Business Strategy - The Hong Kong government plans to accelerate approximately HK$500 billion in public works over the next five years, indicating more opportunities for contractors[16]. - The Group anticipates increased demand for foundation works services due to upcoming housing developments in both public and private sectors[16]. - The Group continues to explore business opportunities beyond the Hong Kong market to enhance future development[17]. - The Group is exploring opportunities to expand its main business beyond the Hong Kong market to strengthen its revenue base[19]. Accounting and Reporting - The condensed consolidated interim financial statements for the six months ended 30 September 2020 have been prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange and Hong Kong Accounting Standard ("HKAS") 34[94]. - The Group's accounting policies remain consistent with those used in the annual consolidated financial statements for the year ended 31 March 2020, except for the adoption of new and amended HKFRSs effective from 1 April 2020[96]. - The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were consistent with those applied to the annual consolidated financial statements for the year ended 31 March 2020[106].

Financial Performance - The total revenue for the Group amounted to approximately HK$509.3 million, representing an increase of approximately 11.2% compared to the prior year[12]. - Loss attributable to the owners of the Company was approximately HK$20.1 million, a significant decline from a profit of HK$9.8 million in the prior year[12]. - The gross profit decreased by approximately HK$27.2 million, or 84.0%, from approximately HK$32.4 million to approximately HK$5.2 million, with a gross profit margin of approximately 1.0%[37]. - The direct costs increased by approximately HK$78.3 million, or 18.4%, from approximately HK$425.8 million to approximately HK$504.1 million[36]. - Total comprehensive income decreased by approximately HK$29.9 million or about 305.1%, resulting in a net loss of approximately HK$20.1 million for the review year, with a net loss margin of approximately 3.9%[46]. - Administrative expenses increased by approximately HK$1.8 million or about 9.1% to approximately HK$21.6 million, mainly due to an increase in staff costs[44]. - Finance costs rose by approximately HK$520,000 or about 175.1% to approximately HK$817,000, primarily due to increased bank borrowings[45]. - The current ratio decreased from approximately 7.2 times to approximately 3.6 times, mainly due to an increase in trade and other payables[51]. - The gearing ratio increased from approximately 2.0% to approximately 7.0%, primarily due to increased bank borrowings[51]. - Return on total assets declined from approximately 3.0% to approximately -5.7%, mainly due to the decrease in gross profit[53]. - Return on equity decreased from approximately 3.4% to approximately -7.5%, attributed to the decline in gross profit[54]. - Net profit margin fell from approximately 2.1% to approximately -3.9%, primarily due to the decrease in gross profit[55]. Market Conditions and Opportunities - The Group acknowledges the adverse impact of the COVID-19 pandemic and fierce competition on its financial performance during the Review Year[16]. - The construction industry in Hong Kong is facing a high unemployment rate and increased operational costs due to project delays caused by the pandemic[11]. - The Group recognizes the rising demand for housing and infrastructure in Hong Kong as potential opportunities for business expansion[19]. - The property industry in the Greater Bay Area has been growing favorably, presenting potential expansion opportunities for the Group[17]. - The Group plans to explore business opportunities and expand geographical coverage beyond the Hong Kong market to enhance future development[17]. - Management will continue to monitor developments and prepare the Group to take advantage of emerging opportunities as social and economic conditions improve[17]. - The diversification of the Group's business is anticipated to yield better returns for shareholders[17]. Operational Challenges - The COVID-19 pandemic has led to increased operational costs and reduced profit margins due to project delays and necessary quarantine measures[24]. - The Group's proactive pricing strategy in response to competitive market conditions contributed to the decrease in gross profit margin[37]. - Unexpected geological conditions may lead to additional costs and complexities in foundation works, potentially impacting the Group's financial position[66]. - Damage to underground service utilities during foundation works may result in repair costs that are not covered by insurance[71]. - Compliance risks may arise from changes in laws and regulations, which could increase costs and adversely affect the Group's operations[62]. Corporate Governance - The Group is committed to maintaining good corporate governance to safeguard shareholder interests and maximize shareholder value[165]. - The Company has complied with all code provisions set out in the Corporate Governance Code from the Listing Date to March 31, 2020, except for holding only two regular Board meetings instead of the required four due to social unrest and COVID-19 measures[168]. - The Board consists of five members, including one executive director and four independent non-executive directors, chaired by Mr. Yip[174]. - The Company has adopted the Model Code for Securities Transactions by Directors, and all directors confirmed compliance during the reporting period[169]. - The Company will review its corporate governance policies and compliance with the CG code each financial year[187]. - The Board is responsible for overall management and has delegated day-to-day operations to management under the CEO's leadership[187]. Human Resources - The total staff cost incurred by the Group for the review year was approximately HK$120.3 million, an increase from approximately HK$84.8 million in the year ended March 31, 2019[116]. - The Group employed a total of 426 full-time employees as of March 31, 2020, compared to 210 full-time employees as of March 31, 2019[116]. - The Group maintains a competitive remuneration package to attract and retain skilled labor in the local construction industry[87]. - The Group aims to reduce reliance on major customers by undertaking more sizable projects for other customers[89]. - The Group has developed stable relationships with suppliers and sub-contractors to effectively meet customer needs[94]. Environmental Management - The Group has established an environmental management system in accordance with ISO 14001:2015 standards to minimize adverse environmental impacts from business activities[80]. - The Group plans to purchase more environmentally friendly machines and equipment to comply with the Non-Road Mobile Machinery Regulation[83]. - As of March 31, 2020, the Group had 106 machines regulated under the NRMM Regulation, with 41 machines exempted and 65 machines approved by the Hong Kong Environmental Protection Department[81]. Shareholder Information - The Board resolved not to recommend the declaration of a final dividend for the review year, consistent with the previous year[118]. - The net proceeds received by the Group amounted to approximately HK$91.9 million, intended for enhancing the construction machinery fleet, strengthening the workforce, reinforcing sales and marketing efforts, and funding general working capital[108][109]. - There have been no changes in the directorships of Mr. Lee and Mr. Chan in public companies listed on any securities market in the last three years[158]. - The Company has not disclosed any additional matters that need to be brought to the attention of shareholders[160].

Financial Performance - The Group's revenue increased by approximately HK$27.5 million or approximately 13.1% to approximately HK$237.2 million compared to the corresponding period in 2018[21]. - Gross profit decreased by approximately HK$13.9 million or approximately 66.2% to approximately HK$7.1 million, resulting in a gross profit margin of approximately 3.0%[21]. - Loss before income tax was HK$5,891,000, compared to a profit of HK$10,950,000 in the same period last year[72]. - Total comprehensive loss attributable to equity holders of the Company was HK$5,632,000, a significant decline from a profit of HK$8,824,000 in the prior year[72]. - Basic and diluted loss per share was HK$0.47, compared to earnings per share of HK$0.74 in the previous year[72]. - The company reported a loss of HK$5,632,000 for the six months ended 30 September 2019, compared to a profit of HK$8,824,000 for the same period in 2018[84]. Revenue and Contracts - The Group was awarded 13 projects during the Reporting Period with a total original contract sum of approximately HK$411 million[20]. - Contracting revenue accounted for HK$232,292,000, while sourcing and distribution of construction materials contributed HK$4,897,000 for the six months ended September 30, 2019[117]. - Revenue from customers contributing over 10% of the Group's total revenue is derived from contracting revenue, indicating a concentrated customer base[125]. - Total revenue from major customers included Customer A contributing HK$175,216,000 and Customer B contributing HK$24,764,000, with no other individual customer exceeding 10% of total revenue[128][129]. Costs and Expenses - Administrative expenses increased by approximately HK$2.4 million or approximately 25.3% to approximately HK$11.9 million, primarily due to increased staff costs[27]. - The total staff costs incurred by the Group for the Reporting Period were approximately HK$45.1 million, compared to approximately HK$38.9 million for the corresponding period in 2018, representing an increase of about 31%[54]. - The company incurred subcontracting charges of HK$80,271,000, an increase from HK$59,765,000 in the previous year[136]. - Finance costs rose by approximately HK$0.2 million or approximately 200.0% to approximately HK$0.3 million, mainly due to increased bank borrowings[27]. Cash Flow and Financial Position - As of September 30, 2019, the Group had total cash and cash equivalents of approximately HK$68.0 million, down from approximately HK$136.8 million[31]. - Cash flow from operating activities showed a net cash outflow of HK$62,693,000 for the six months ended September 30, 2019, a significant decrease from a cash inflow of HK$7,797,000 in 2018[87]. - The cash and cash equivalents at the end of the period were HK$43,533,000, a decrease from HK$91,582,000 at the end of September 2018[87]. - The Group's net loss attributable to owners decreased by approximately HK$14.4 million or approximately 163.6%, resulting in a net loss of approximately HK$5.6 million[27]. Assets and Liabilities - Non-current assets increased to HK$73,383,000 as of September 30, 2019, from HK$62,043,000 as of March 31, 2019[76]. - Current assets totaled HK$284,409,000, up from HK$268,242,000 as of March 31, 2019[76]. - Current liabilities increased to HK$70,628,000, compared to HK$37,352,000 as of March 31, 2019[76]. - The Group's trade receivables aged 0-30 days totaled HK$6,237,000, while those aged 31-60 days amounted to HK$38,148,000 as of September 30, 2019[168]. Market Conditions and Competition - Hong Kong's economy declined by 3.2% in the third quarter of 2019, entering recession amid the intensifying trade war and social unrest[9]. - The gross value of construction works performed by main contractors in Hong Kong amounted to approximately HK$57.0 billion in the second quarter of 2019, presenting an 8% decrease compared to the second quarter of 2018[9]. - The Group faces fierce competition in bidding for new projects as more competitors are capable of undertaking large-scale projects[19]. - Labour costs and material prices showed no signs of dropping during the Reporting Period[19]. Strategic Initiatives - The Group aims to enhance its competitive strengths by improving project management, quality control, and technological advancement[19]. - The demand for foundation works is expected to rebound once the market returns to sound conditions[12]. Financial Reporting and Compliance - The Group has adopted HKFRS 16 from April 1, 2019, affecting the financial statements presentation[72]. - The Group's interim financial statements for the six months ended 30 September 2019 have been prepared in accordance with HKAS 34 "Interim Financial Reporting" and are unaudited[89]. - The financial statements are presented in thousands of Hong Kong dollars (HK$'000)[89]. - The Group's independent auditor, Grant Thornton Hong Kong Limited, has reviewed the interim financial statements[89].

Financial Performance - The Group's total revenue for the year ended 31 March 2019 was approximately HK$458.2 million, representing a decrease of approximately 43.1% compared to the previous year[9]. - Profit attributable to owners of the Company for the Review Year was approximately HK$9.8 million, a decrease of approximately 80.7% compared to the previous year[9]. - The Group's revenue decreased by approximately HK$347.5 million, or approximately 43.1%, from approximately HK$805.7 million to approximately HK$458.2 million compared to the previous fiscal year[35]. - Gross profit decreased by approximately HK$64.7 million or approximately 66.6%, from approximately HK$97.1 million to approximately HK$32.4 million, with a gross profit margin of approximately 7.1% compared to 12.1% in the previous year[38]. - Other gains decreased significantly to approximately HK$84,000 from approximately HK$2.1 million, primarily due to a one-off bank interest income in the previous year and an exchange loss of approximately HK$1.0 million[39]. - Administrative expenses decreased by approximately HK$15.1 million or approximately 43.3%, from approximately HK$34.9 million to approximately HK$19.8 million[45]. - Income tax expense decreased by approximately HK$10.6 million or approximately 80.9%, from approximately HK$13.1 million to approximately HK$2.5 million[47]. - Net profit decreased by approximately HK$41.2 million or approximately 80.8%, from approximately HK$51.0 million to approximately HK$9.8 million, resulting in a net profit margin of approximately 2.1% compared to 6.3% in the previous year[48]. Industry Overview - The construction industry in Hong Kong experienced a slight year-on-year growth of only 0.9% in gross value of construction works performed by main contractors[8]. - The number of construction sites in Hong Kong increased by 3.5% year-on-year, totaling 1,489 sites as of 31 December 2018[8]. - Employment at construction sites fell by 16.1% compared to the previous year, indicating a severe labor shortage[8]. - The foundation industry in Hong Kong is facing challenges due to increased costs and competition, necessitating a focus on improving operational performance[15]. - The demand for construction materials in Hong Kong is increasing, driven by ongoing and planned infrastructure projects[22]. Strategic Initiatives - The Group aims to leverage its competitive strengths, including its established reputation, technology and machinery capabilities, long-term customer relationships, and experienced management team[10]. - The Group is considering expanding its geographical coverage beyond the Hong Kong market to enhance future development and strengthen revenue bases[16]. - The Group aims to diversify its business to provide better returns to shareholders[16]. - The Group's management remains cautiously optimistic about the foundation industry's future despite existing challenges[24]. Financial Ratios and Position - The current ratio increased from approximately 6.4 times to approximately 7.2 times as at 31 March 2019[54]. - The gearing ratio increased from approximately 1.7% to approximately 2.0% as at 31 March 2019, primarily due to an increase in bank borrowings[54]. - Return on total assets decreased to approximately 3.0% from 15.5% in the previous year[54]. - Return on equity decreased to approximately 3.4% from 18.3% in the previous year[54]. - The Group's net profit margin decreased from approximately 6.3% for the year ended 31 March 2018 to approximately 2.1% for the Review Year[59]. Risks and Compliance - The Group faces industry risks related to the property market in Hong Kong, which could adversely impact the availability of foundation projects[60]. - Compliance risks may arise from changes in laws and regulations, potentially increasing costs and affecting business operations[66]. - The Group may incur additional costs due to unexpected geological conditions during foundation works, leading to potential cost overruns[70]. - Damage to underground service utilities during foundation works may result in liabilities for repair costs not covered by insurance[73]. - The Group's ability to secure new contracts may vary significantly, making it difficult to forecast future business volume[74]. Corporate Governance - The Group is committed to maintaining good corporate governance to safeguard shareholder interests and maximize shareholder value[170]. - The Company has adopted the corporate governance code contained in Appendix 14 to the Listing Rules, ensuring compliance with all code provisions from the Listing Date to March 31, 2019[172][173]. - The Board consists of five members, including one executive Director and four independent non-executive Directors, ensuring a balanced composition for effective independent judgment[178][180]. - The Company has appointed three independent non-executive Directors, meeting the requirement that they represent at least one-third of the Board members[184]. - All independent non-executive Directors have provided an annual confirmation of independence, and the Company believes they are independent according to the relevant Listing Rules[185]. Management and Staff - The Group provides a comprehensive remuneration package to attract and retain employees, including salary, discretionary bonuses, and cash subsidies[89]. - As of March 31, 2019, the total staff cost incurred by the Group was approximately HK$84.8 million, a decrease from approximately HK$97.5 million in the corresponding year ended March 31, 2018[123]. - As of March 31, 2019, the Group employed a total of 210 full-time employees, down from 249 full-time employees as of March 31, 2018[123]. - The Board resolved not to recommend the declaration of a final dividend for the Review Year, consistent with the previous fiscal year[126]. Directors and Their Roles - Mr. Ye, the Group's chairman and CEO, has over 40 years of experience in the foundation industry and co-founded the Group in 1993[132]. - Mr. Cheung, an executive director, has over 20 years of experience in the foundation industry and joined the Group in 1996[135]. - Mr. Lo, an independent non-executive director, has an annual director's fee of HK$180,000 and is responsible for independent oversight of management[137]. - Mr. Chan has over 10 years of professional accounting and financial reporting experience, including roles at Kam & Cheung CPA and BDO Limited[142]. - The remuneration of Directors is determined based on the Group's operating results, individual performance, and comparable market statistics[125].