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].