Financial Performance - The Group's revenue increased to approximately HK$30.4 million, representing a growth of 6.3% compared to HK$28.6 million for the same period in 2019[9]. - The gross profit rose by 71.9% from approximately HK$6.3 million in the three months ended June 30, 2019, to approximately HK$10.9 million for the same period in 2020, with a gross profit margin increase from 22.1% to 35.8%[10]. - The profit for the period surged from approximately HK$306,000 in 2019 to approximately HK$4.8 million in 2020[11]. - Operating profit increased significantly to HK$5.5 million from HK$420,884 in the previous year[16]. - The profit before income tax rose to HK$5.4 million compared to HK$338,206 in the same period last year[16]. - The Group reported a net profit of HK$4.7 million attributable to owners of the Company, up from HK$325,441 in the prior year[19]. - Basic and diluted earnings per share increased to 0.78 HK cents from 0.05 HK cents in the prior year[19]. - The profit for the period was HK$4,704,873, representing a significant increase compared to the previous period[22]. - Total comprehensive income for the period was HK$4,704,940, reflecting a strong performance[22]. Revenue Breakdown - Revenue for the three months ended June 30, 2020, was HK$30,387,761, an increase of 6.3% compared to HK$28,595,381 for the same period in 2019[34]. - Revenue from customers located in Hong Kong was HK$27,669,588 for the three months ended June 30, 2020, compared to HK$25,139,384 in 2019, reflecting a growth of 10.1%[37]. - Revenue from customers in Macau decreased to HK$2,718,173 in 2020 from HK$3,455,997 in 2019, a decline of 21.4%[37]. Expenses and Costs - General and administrative expenses decreased to HK$4.99 million from HK$5.14 million in the previous year[16]. - Cost of materials used decreased to HK$10,650,746 in 2020 from HK$12,468,885 in 2019, a reduction of 14.6%[50]. - Subcontractor costs also decreased to HK$7,069,927 in 2020 from HK$8,692,935 in 2019, a decline of 18.6%[50]. - Impairment loss on trade and retention receivables and contract assets decreased from approximately HK$768,000 for the three months ended June 30, 2019, to approximately HK$447,000 for the same period in 2020[63]. - Income tax expense increased to approximately HK$643,000 for the three months ended June 30, 2020, from approximately HK$33,000 in 2019[68]. Dividends and Shareholder Information - The Board does not recommend the payment of an interim dividend for the three months ended June 30, 2020, consistent with the previous year[11]. - The Group did not recommend the payment of dividends for the three months ended June 30, 2020, consistent with the previous year[41]. - As of June 30, 2020, Mr. Kwong held a long position of 386,016,000 shares in the Company, representing approximately 64.34% of the shareholding[83]. - Sage City Investments Limited, beneficially owned by Mr. Kwong (70%) and Mr. Yip (30%), holds 64.34% of the Company's shares[94]. Corporate Governance and Compliance - The company has complied with the principles and applicable code provisions of the Corporate Governance Code for the three months ended June 30, 2020[101]. - The company established an audit committee on September 24, 2016, to oversee internal control and risk management systems[113]. - The company has adopted the Code of Conduct for securities transactions by directors, confirming compliance by all directors for the three months ended June 30, 2020[104]. - The Audit Committee has reviewed the unaudited condensed consolidated financial results for the three months ended June 30, 2020[114]. Future Outlook and Strategy - The Group plans to explore new opportunities for business diversification and keep track of new construction and refurbishment projects in the car park flooring market in Hong Kong and Macau[76]. - The Group aims to expand its ancillary services, including specialized texture painting and waterproofing works, to strengthen its market position[76]. - The future outlook indicates that market and economic conditions will continue to impact the property market development and construction schedules of main contractors[70]. - The Group will implement measures to control operational costs, including labor and material costs, as well as general and administrative expenses[76]. - The Group maintained a healthy liquidity position throughout the reporting period, with the Board closely monitoring liquidity risks to meet funding requirements[78]. Financial Position - The balance at 30 June 2020 showed total assets of HK$89,790,814, indicating growth from previous periods[22]. - The company reported retained earnings of HK$22,508,488 as of 30 June 2020, demonstrating financial stability[22]. - As of June 30, 2020, there were no significant contingent liabilities reported by the Group[78]. - The financial information for the three months ended 30 June 2020 was prepared in accordance with HKFRSs, ensuring compliance with accounting standards[29]. - The company did not apply any new or revised HKFRSs that have been issued but are not yet effective, maintaining consistency in accounting policies[28]. Company Background - The company is primarily engaged in providing engineering services in flooring, screeding, anti-skid surfacing, and waterproofing works, indicating a focus on construction-related sectors[25]. - The company listed its shares on GEM of The Stock Exchange of Hong Kong Limited on 13 October 2016, enhancing its market presence[25]. - The company is registered in the Cayman Islands with limited liability[119]. - The executive directors as of the report date include Mr. Kwong Chi Man, Mr. Yip Kong Lok, and Mr. Yip Wai Man[117].

Revenue Performance - The Group's revenue from Hong Kong was approximately HK$85.0 million for the year ended 31 March 2020, a decrease of 15.5% from approximately HK$100.7 million in 2019[17]. - Revenue from the Macau market was approximately HK$10.0 million, down 41.3% from approximately HK$17.2 million in 2019[17]. - For the year ended March 31, 2020, the Group recorded total revenue of approximately HK$95.0 million, a decrease of 19.4% compared to approximately HK$117.9 million for the year ended March 31, 2019[49]. - Revenue from the Hong Kong market was approximately HK$85.0 million, down from approximately HK$100.7 million in 2019, while revenue from the Macau market dropped to approximately HK$10.0 million from approximately HK$17.2 million in 2019[49]. - The significant drop in revenue from the Macau market was primarily caused by the outbreak of COVID-19 in early 2020[49]. Impact of COVID-19 - The decline in revenue was primarily due to project delays caused by social unrest in Hong Kong and the COVID-19 outbreak[17]. - The ongoing COVID-19 pandemic has led to precautionary measures affecting contractors and suppliers, impacting project timelines[17]. - The delays in project timelines were primarily due to social unrest in Hong Kong and the ongoing COVID-19 pandemic, which affected the operations of contractors and suppliers[21]. - The impact of COVID-19 caused delays in project progress and settlement of account receivables since February 2020[73]. - The Group is assessing the impacts of COVID-19 on its performance for the next financial year and will monitor the situation closely[18]. Business Operations and Services - The Group specializes in car park flooring services, including proprietary floor coating applications and ancillary services like texture painting and waterproofing[16]. - The Group provides car park flooring services, including proprietary floor coating products, specialized texture painting, and waterproofing works[49]. - The target market segment ranges from mid to high-end projects in the car park flooring industry[16]. - The Group's flooring services are designed to provide a colorful, slip-resistant, and durable surface resistant to water and petrochemicals[16]. Financial Performance - The Group's net profit decreased from approximately HK$9.9 million for the year ended March 31, 2019, to approximately HK$6.1 million for the year ended March 31, 2020[49]. - The gross profit dropped by approximately HK$3.3 million, or 10.2%, from approximately HK$32.7 million for the year ended March 31, 2019, to approximately HK$29.4 million for the year ended March 31, 2020[49]. - The gross profit margin increased from 27.8% for the year ended March 31, 2019, to 30.9% for the year ended March 31, 2020[52]. - The net profit of the Group decreased from approximately HK$9.9 million for the year ended March 31, 2019, to approximately HK$6.1 million for the year ended March 31, 2020, primarily due to a decrease in revenue[55]. Management and Governance - The Group's executive directors have over 35 years of experience in the construction industry, with Mr. Kwong being a sole shareholder since 2013[31]. - The independent non-executive directors bring diverse expertise, including over 35 years in accountancy and legal fields, enhancing governance[35]. - The Group's governance structure includes a mix of executive and independent non-executive directors, promoting accountability and transparency[35]. - The Board is committed to maintaining high levels of corporate governance to ensure transparency and accountability[80]. - The Company has taken out director and officer liability insurance to cover liabilities arising from legal actions against the Directors[94]. Future Plans and Strategies - The company plans to focus on diversifying its business and exploring new opportunities in the car park flooring market in Hong Kong and Macau[25]. - The company aims to expand its ancillary services, including specialized texture painting and waterproofing works[25]. - The Group plans to focus on diversifying its business and expanding ancillary services in response to market challenges and competition[62]. - Future opportunities and challenges will be influenced by the market and economic environment, particularly affecting the property market and construction schedules[61]. Financial Position - The Group's current ratio improved to approximately 2.4 times as at 31 March 2020, compared to approximately 2.2 times at 31 March 2019[63]. - As at 31 March 2020, the Group had cash and cash equivalents of approximately HK$19.6 million, down from approximately HK$23.6 million in 2019[63]. - Total interest-bearing borrowings as at 31 March 2020 were approximately HK$10.8 million, a decrease from approximately HK$11.6 million in 2019[64]. - The Group's total assets increased to approximately HK$119.2 million as at 31 March 2020, compared to approximately HK$117.8 million in 2019[65]. - The gearing ratio of the Group as at 31 March 2020 was approximately 11.3%, a decrease from 12.2% in 2019[69]. Corporate Governance and Compliance - The Company has complied with the principles and applicable code provisions of the CG Code for the year ended 31 March 2020, except for the deviation from CG Code provision A.2.1 until 1 September 2019[83]. - The Board consists of three independent non-executive directors, representing at least one-third of the Board, ensuring independent judgment[98]. - The Company encourages directors to attend relevant seminars for continuous professional development and maintains training records for each director[108]. - The Audit Committee was established on September 24, 2016, to review and supervise the Company's financial reporting process and internal control system[117]. - The Group's internal audit function reviewed key operational, financial, compliance, and risk management controls during the year ended March 31, 2020, with no material inadequacies found[169][171].

Financial Performance - The Group's revenue decreased to approximately HK$72.0 million, representing a decline of 21.4% compared to HK$91.6 million for the same period in 2018[13] - The Group's gross profit decreased by approximately HK$5.0 million, or 18.9%, from approximately HK$26.5 million for the nine months ended 31 December 2018 to approximately HK$21.5 million for the same period in 2019[13] - The Group's profit decreased from approximately HK$9.8 million for the nine months ended 31 December 2018 to approximately HK$3.9 million for the same period in 2019[13] - The operating profit for the nine months ended 31 December 2019 was approximately HK$4.77 million, down from HK$11.79 million in the same period of 2018[17] - Profit before income tax for the nine months ended 31 December 2019 was approximately HK$4.53 million, compared to HK$11.56 million for the same period in 2018[17] - The profit for the period decreased to approximately HK$3.88 million for the nine months ended 31 December 2019, down from HK$9.75 million in 2018[17] - Total comprehensive income for the nine months ended 31 December 2019 was HK$3,947,449, compared to HK$9,754,350 for the same period in 2018, indicating a significant decline of 59.6%[20] - The Company reported a profit of HK$3,950,352 for the nine months ended 31 December 2019, down from HK$9,754,350 in the previous year, a decrease of 59.6%[24] Dividends and Shareholder Returns - The Board does not recommend the payment of an interim dividend for the nine months ended 31 December 2019, compared to no dividend in 2018[13] - The Company declared a dividend of HK$4,200,000 during the nine months ended 31 December 2019[24] - The company does not recommend the payment of an interim dividend for the nine months ended 31 December 2019, consistent with the previous year where no dividend was paid[143] Revenue Breakdown - Revenue for the nine months ended 31 December 2019 was HK$71,994,863, a decrease of 21.4% compared to HK$91,612,136 for the same period in 2018[58] - Revenue from customers in Hong Kong was HK$65,153,818 for the nine months ended 31 December 2019, down 18.3% from HK$79,658,422 in 2018[59] - Revenue from customers in Macau was HK$6,841,045 for the nine months ended 31 December 2019, a decrease of 42.5% compared to HK$11,953,714 in 2018[59] Earnings and Share Performance - Basic earnings per share for the nine months ended 31 December 2019 was HK$0.66, down 59.5% from HK$1.63 in 2018[72] - Earnings per share attributable to owners of the Company for the three months ended 31 December 2019 was HK$0.51, compared to HK$0.61 for the same period in 2018, representing a decrease of 16.4%[20] Cost and Expenses - The Group's cost of sales for the nine months ended 31 December 2019 was approximately HK$50.47 million, compared to HK$65.08 million for the same period in 2018[17] - Cost of flooring materials used for the nine months ended 31 December 2019 was HK$27,289,466, a decrease of 23.3% from HK$35,563,222 in 2018[77] - Subcontractor costs for the nine months ended 31 December 2019 were HK$19,506,351, down 27.8% from HK$26,883,987 in 2018[77] - Employee benefit expenses for the nine months ended 31 December 2019 were HK$10,775,944, an increase of 13.5% from HK$9,491,659 in 2018[77] - General and administrative expenses increased by approximately HK$1.3 million from approximately HK$14.7 million for the nine months ended 31 December 2018 to approximately HK$15.9 million for the nine months ended 31 December 2019[100] Accounting Policies and Standards - The Group's financial data is prepared in accordance with the Hong Kong Financial Reporting Standards and GEM Listing Rules[35] - The Group adopted new standards and amendments effective from April 1, 2019, including HKAS 19, HKAS 28, HKFRS 9, and HKFRS 16, with no material impact from most of these changes[40] - The transition to HKFRS 16 did not have any significant impact on the current or prior periods, except as disclosed[40] - The Group's accounting policies remain consistent with those of the consolidated financial statements for the year ended March 31, 2019, unless otherwise stated[36] Liquidity and Financial Management - The Group maintained a healthy liquidity position throughout the reporting period, adopting a prudent financial management approach towards its treasury policies[112] - The Group's liquidity structure is closely monitored by the Board to meet funding requirements[112] - The Group's treasury policies are designed to manage liquidity risk effectively[112] Future Outlook and Strategy - The Group plans to explore new business opportunities through existing networks and industry exhibitions to strengthen its market position[109] - The Group aims to expand its ancillary services, including specialized texture painting and waterproofing works, to enhance revenue streams[109] - Future opportunities and challenges will be influenced by the market and economic environment affecting the property market and construction schedules[108] - The Group will implement measures to control operational costs, including labor and material costs, to improve profitability[109] Shareholding and Corporate Governance - As of December 31, 2019, Mr. Kwong Chi Man held 381,018,000 shares, representing approximately 63.5% of the Company's shareholding[123] - Sage City Investments Limited, beneficially owned by Mr. Kwong, also holds 381,018,000 shares, equating to a 63.5% shareholding in the Company[130] - The company is owned 70% by Mr. Kwong and 30% by Mr. Yip, with Mr. Kwong serving as chairman and executive director[1] - The company has complied with the principles and applicable code provisions of the Corporate Governance Code since 1 September 2019[140] - There are no competing interests from directors or controlling shareholders that could affect the company's business as of 31 December 2019[135] - The company has confirmed that all directors have complied with the required standards of dealings in securities transactions during the nine months ended 31 December 2019[141]

Financial Performance - The Group's revenue decreased to approximately HK$47.1 million, a decline of 11.7% from approximately HK$53.3 million for the same period in 2018[11]. - Gross profit decreased by approximately HK$4.5 million, or 26.2%, from approximately HK$17.0 million in 2018 to approximately HK$12.5 million in 2019[11]. - The gross profit margin fell from approximately 31.9% in 2018 to 26.6% in 2019[11]. - Net profit decreased significantly from approximately HK$6.1 million in 2018 to approximately HK$826,000 in 2019[11]. - Operating profit for the six months ended 30 September 2019 was approximately HK$1.1 million, down from HK$7.4 million in 2018[16]. - Profit before income tax decreased from approximately HK$7.2 million in 2018 to approximately HK$937,000 in 2019[16]. - Basic and diluted earnings per share attributable to owners of the Company was HK$0.09 for the three months ended September 30, 2019, down from HK$0.14 in the same period of 2018, a decline of 35.7%[19]. - Total comprehensive income for the period was HK$519,634, compared to HK$823,015 for the same period in 2018, reflecting a decrease of 36.9%[19]. - Profit attributable to owners of the Company for the six months ended 30 September 2019 was HK$862,376, a significant decline from HK$6,095,458 in 2018[116]. - The decrease in profit was primarily due to a decline in revenue and gross profit margin, along with an increase in general and administrative expenses and impairment losses on trade receivables[197]. Dividends and Earnings - The Board does not recommend the payment of an interim dividend for the six months ended 30 September 2019, consistent with the previous year[11]. - The Group did not recommend the payment of an interim dividend for the six months ended 30 September 2019, consistent with 2018[112]. - Basic earnings per share for the six months ended 30 September 2019 was HK$0.14, a decrease from HK$1.02 in 2018[116]. Assets and Liabilities - Total assets as of September 30, 2019, amounted to HK$109,381,319, a decrease from HK$117,817,729 as of March 31, 2019, representing a decline of 7.1%[22]. - Total liabilities as of September 30, 2019, were HK$29,699,747, down from HK$34,756,249 as of March 31, 2019, indicating a decrease of 14.5%[25]. - Total equity as of September 30, 2019, was HK$79,681,572, a decrease from HK$83,061,480 as of March 31, 2019, reflecting a decline of 4.6%[25]. - Current assets totaled HK$69,500,342 as of September 30, 2019, compared to HK$76,972,683 as of March 31, 2019, representing a decline of 9.7%[22]. - The Group's financial position reflects non-controlling interests of HK$15,290 as of the reporting date[56]. Cash Flow and Management - For the six months ended September 30, 2019, the net cash used in operating activities was HK$ (5,660,739), compared to HK$ 4,958,295 in the same period of 2018, indicating a significant decrease in cash flow from operations[31]. - The net cash used in financing activities was HK$ (2,298,608) for the six months ended September 30, 2019, down from HK$ (6,876,505) in the previous year, indicating improved cash management in financing[31]. - The balance of cash and cash equivalents at the end of the period was HK$ 15,361,563, an increase from HK$ 14,888,012 at the end of September 2018, indicating a positive cash position[31]. Trade Receivables and Impairment - Trade receivables increased to HK$30,760,523 as of 30 September 2019, up from HK$26,799,660 as of 31 March 2019, representing a growth of approximately 14.5%[124]. - The provision for impairment of trade receivables rose to HK$2,387,696 from HK$1,495,173, indicating a significant increase of approximately 59.7%[124]. - The ageing analysis shows that trade receivables overdue by over 90 days increased to HK$16,860,958 from HK$13,287,766, marking a rise of about 27.5%[129]. Market and Operational Outlook - The decrease in revenue was attributed to delays in project commencements caused by market and economic uncertainties since June 2019[182]. - The Group anticipates that future opportunities and challenges will be influenced by the market and economic environment, affecting the property market and construction schedules of main contractors[199]. - The Group plans to explore new business opportunities through existing networks, industry exhibitions, and advertisements in industry magazines to strengthen its market position[200]. - The Group aims to monitor new construction and refurbishment projects in the car park flooring markets in Hong Kong and Macau to capitalize on emerging opportunities[200]. - Measures will be taken to control operational costs, including labor and material costs, as well as general and administrative expenses[200]. Adoption of New Standards - The Group adopted HKFRS 16 on April 1, 2019, recognizing lease liabilities of HK$1,328,692, which were previously classified as operating leases under HKAS 17[49]. - The adjustments recognized on adoption of HKFRS 16 included current lease liabilities of HK$575,224 and non-current lease liabilities of HK$753,468[66]. - The Group's financial statements are consistent with those of the annual financial statements for the year ended March 31, 2019, except for income tax estimation[3].

Revenue Performance - The group's revenue increased from approximately HKD 24,000,000 for the three months ended June 30, 2018, to approximately HKD 28,600,000 for the three months ended June 30, 2019, representing a growth of 19.4%[6] - The company recorded revenue of approximately HKD 28,600,000 for the three months ended June 30, 2019, representing a 19.4% increase from approximately HKD 24,000,000 in the same period last year[44] - The total revenue from customers in Hong Kong and Macau was HKD 25,139,384 and HKD 3,455,997 respectively for the three months ended June 30, 2019[30] - The company’s revenue from flooring services was HKD 26,867,556 for the three months ended June 30, 2019, compared to HKD 23,132,182 in 2018[29] - The company’s revenue from supporting services was HKD 1,727,825 for the three months ended June 30, 2019, compared to HKD 817,977 in 2018[29] Profitability - The group's gross profit decreased by approximately HKD 940,000 or 12.9%, from approximately HKD 7,300,000 for the three months ended June 30, 2018, to approximately HKD 6,300,000 for the same period in 2019[6] - The group's net profit decreased from approximately HKD 2,200,000 for the three months ended June 30, 2018, to approximately HKD 306,000 for the same period in 2019[6] - The gross profit margin declined from 30.3% for the three months ended June 30, 2018, to 22.1% for the same period in 2019[6] - The operating profit for the three months ended June 30, 2019, was HKD 420,884, compared to HKD 2,569,997 for the same period in 2018[9] - The total comprehensive income for the three months ended June 30, 2019, was HKD 303,381, compared to HKD 2,239,646 for the same period in 2018[11] - The group's net profit significantly decreased from approximately HKD 2,200,000 to approximately HKD 306,000, attributed to the decline in gross profit margin and increased administrative expenses[51] Earnings Per Share - The basic and diluted earnings per share for the three months ended June 30, 2019, was HKD 0.05, down from HKD 0.37 for the same period in 2018[11] - The company’s earnings per share for the three months ended June 30, 2019, was HKD 0.05, compared to HKD 0.37 for the same period in 2018[36] Dividend Policy - The board of directors did not recommend the payment of an interim dividend for the three months ended June 30, 2019 (2018: none)[6] - The company did not recommend the distribution of dividends for the three months ended June 30, 2019[33] - No dividends were recommended for the interim period ending June 30, 2019, consistent with the previous year[73] Costs and Expenses - The company’s total costs for materials used amounted to HKD 12,468,885 for the three months ended June 30, 2019, compared to HKD 10,404,314 in 2018[37] - General and administrative expenses increased by approximately HKD 411,000 to approximately HKD 5,100,000, primarily due to employee costs and other administrative expenses[49] Financial Management - The company maintains a prudent financial management policy, ensuring a healthy liquidity position throughout the reporting period[54] - As of June 30, 2019, the group had no significant lease commitments or contingent liabilities[55] - The financial data presented is unaudited but has been reviewed by the company's audit committee[18] Corporate Governance - The company has complied with the GEM Listing Rules regarding corporate governance, except for a deviation in the separation of roles between the Chairman and CEO[68] - The board has decided to appoint Mr. Ye as the new CEO effective September 1, 2019, to focus on business operations and management[70] Future Outlook - Future opportunities and challenges will be influenced by property market developments, contractor schedules, and price competition in the parking lot paving market[53] - The group plans to explore new business opportunities through existing networks and industry exhibitions, particularly in Macau and China[53] - The group aims to expand its supporting services, including professional texturing and waterproofing projects[53] Impairment and Liabilities - The group recognized an impairment loss on trade receivables of approximately HKD 768,000 for the three months ended June 30, 2019, compared to none in the previous year[48] - The company recognized lease liabilities of approximately HKD 386,000 related to property leases as of June 30, 2019, following the adoption of HKFRS 16[42] Shareholding - Sage City holds a beneficial interest of 375,750,000 shares, representing 62.63% of the company's equity[63] - Li Chun Zhen, as the spouse of Mr. Kwan, is deemed to have an interest in all shares owned by Mr. Kwan, also totaling 375,750,000 shares or 62.63%[64] Share Transactions - The company has not purchased, sold, or redeemed any of its shares during the three months ending June 30, 2019[72]

Revenue and Growth - The group generated approximately 97.1% of its revenue from flooring services, primarily in the parking lot paving sector[11] - Revenue from the Macau market surged 118% from approximately 8.1 million MOP (about 7.9 million HKD) in the year ended March 31, 2018, to approximately 17.7 million MOP (about 17.2 million HKD) in the year ended March 31, 2019[11] - The group's total revenue for the year ended March 31, 2019, was approximately HKD 117.9 million, representing a growth of about 53.0% from approximately HKD 77.1 million for the year ended March 31, 2018[28] - Net profit increased by approximately 49.7% to about HKD 9.9 million for the year ended March 31, 2019, compared to approximately HKD 6.6 million for the previous year[28] - The group's gross profit increased by approximately 24.2% to about HKD 32.7 million for the year ended March 31, 2019, from approximately HKD 26.4 million the previous year[30] - The number of projects undertaken by the group increased significantly during the year ended March 31, 2019, contributing to revenue growth[29] - The increase in revenue was primarily driven by the transfer of numerous ongoing contracts from the previous year[29] Market Strategy and Operations - The company aims to expand its operations into Macau, which has shown significant revenue growth potential[11] - The group has been actively involved in high-end projects within the parking lot paving market, focusing on quality and specialized services[11] - The group adopted a lower pricing strategy for projects in Macau to increase market share[27] - The group aims to focus on mid-to-high-end projects in the parking lot flooring installation market[27] - The company is focused on strategic planning and operational efficiency to navigate market challenges[12] Corporate Governance - The board believes that good corporate governance practices are essential for maintaining stakeholder trust and creating long-term value[60] - The board consists of three independent non-executive directors, ensuring at least one has appropriate professional qualifications or financial management expertise, which strengthens independent judgment[74] - The company has established four board committees, including the audit committee, remuneration committee, nomination committee, and legal compliance committee, to oversee specific areas of governance[87] - The company emphasizes continuous professional development for directors, encouraging attendance at relevant seminars to enhance their knowledge and skills[84] - The company has a clear process for the appointment and re-election of directors, ensuring governance transparency and accountability[79] Financial Performance and Management - General and administrative expenses rose from approximately HKD 18,600,000 for the year ended March 31, 2018, to approximately HKD 20,800,000 for the year ended March 31, 2019, an increase of about HKD 2,200,000[33] - As of March 31, 2019, the group's current ratio was approximately 2.24, up from 2.06 as of March 31, 2018[38] - Cash and cash equivalents increased to approximately HKD 23,600,000 as of March 31, 2019, compared to approximately HKD 18,000,000 as of March 31, 2018[38] - The total assets of the group as of March 31, 2019, were approximately HKD 117,800,000, down from approximately HKD 122,300,000 as of March 31, 2018[38] - The capital debt ratio as of March 31, 2019, was approximately 12.2%, slightly up from 12.1% as of March 31, 2018[40] Environmental and Social Responsibility - The company has adopted environmental policies aligned with international standards ISO14001, aiming to prevent pollution, achieve energy efficiency, reduce waste, and enhance recycling[120] - The company has implemented a waste classification management system on construction sites to minimize waste generation[127] - The company has committed to reducing its carbon footprint through various initiatives, including paperless meetings and energy-saving measures[132] - The company emphasizes the importance of corporate governance and has established guidelines to enhance its governance practices[115] - The company recognizes the significance of environmental issues in sustainable development and complies with local regulations for environmental checks[119] Employee and Supplier Relations - The company has a labor policy that prohibits violence, harassment, and discrimination in the workplace[158] - The company actively engages in employee development through training programs to enhance performance and knowledge[156] - The company maintains a strong relationship with suppliers, with two major suppliers accounting for approximately 90.8% of total procurement[162] - The group maintains long-term relationships with five major suppliers, accounting for approximately 96.6% of total procurement[164] Risk Management and Compliance - The board is responsible for internal controls and has reviewed the effectiveness of financial, operational, and compliance monitoring, finding no significant deficiencies in risk management[97] - The company has complied with applicable laws and regulations in all material aspects as of March 31, 2019, and up to the report date[200] - The independent non-executive directors confirmed their independence annually, maintaining compliance with GEM listing rules[78] Future Outlook - Future opportunities and challenges will be influenced by government policies, client construction schedules, and factors such as labor, material costs, and contract prices[12] - The company plans to use the unutilized IPO proceeds of approximately HKD 1,600,000 for general working capital in the coming year[58] - The company aims to strengthen its market share in the renovation sector and consolidate its leading position in the new construction market[54]

Financial Performance - The group's revenue increased from approximately HK$53,100,000 for the nine months ended December 31, 2017, to approximately HK$91,600,000 for the same period in 2018, representing a growth of 72.5%[3] - The gross profit rose from approximately HK$19,600,000 for the nine months ended December 31, 2017, to approximately HK$26,500,000 for the same period in 2018, an increase of about HK$6,900,000 or 35.2%[3] - The net profit attributable to the owners of the company was approximately HK$9,800,000 for the nine months ended December 31, 2018, compared to HK$5,600,000 for the same period in 2017[3] - The operating profit for the nine months ended December 31, 2018, was HK$11,785,116, compared to HK$6,734,029 for the same period in 2017[4] - The total comprehensive income attributable to the owners of the company for the nine months ended December 31, 2018, was HK$9,754,350, compared to HK$5,553,286 for the same period in 2017[5] - The basic earnings per share for the nine months ended December 31, 2018, was HKD 1.63, up from HKD 0.93 for the same period in 2017, reflecting a growth of 75.3%[21] Profitability Metrics - The gross profit margin decreased from 37.0% for the nine months ended December 31, 2017, to 29.0% for the same period in 2018[3] - The cost of materials used for flooring installation for the nine months ended December 31, 2018, was HKD 35,563,222, compared to HKD 17,869,037 for the same period in 2017, indicating an increase of 99.5%[21] - General and administrative expenses increased to approximately HKD 14,800,000 from HKD 13,000,000, mainly due to higher employee costs and depreciation[31] - Income tax expense for the nine months ended December 31, 2018, was approximately HKD 1,800,000, compared to HKD 1,000,000 in the previous year[32] Dividend Policy - The company did not recommend the payment of an interim dividend for the nine months ended December 31, 2018, while no dividend was declared for the same period in 2017[3] - The company did not recommend the distribution of an interim dividend for the nine months ended December 31, 2018, consistent with the previous year[49] Business Operations - The company primarily engages in providing flooring installation, floor polishing, anti-slip paving, and concrete maintenance services[6] - The company’s operating segment primarily focuses on flooring installation, with revenue recognized based on the completion percentage of contracts[15] - The revenue from operations in Hong Kong and Macau for the nine months ended December 31, 2018, was approximately HKD 79,600,000 and HKD 12,000,000, respectively, compared to HKD 44,500,000 and HKD 8,600,000 for the same period in 2017, representing increases of 78.9% and 39.5%[16] - The company secured two large projects in Macau with a total contract value of approximately MOP 25,500,000, with one project commencing in October 2018 and another expected to start in February 2019[34] - The company aims to explore new business opportunities through existing networks and industry exhibitions to expand its customer base and revenue sources[34] Financial Management - The company maintains a prudent financial management strategy, ensuring a robust liquidity position throughout the reporting period[35] - As of December 31, 2018, the company had no significant lease commitments or contingent liabilities[36] - The company has adopted new accounting standards effective from April 1, 2018, which may impact its financial performance and position[12] - The company’s management has made significant judgments and estimates in applying accounting policies, which may lead to actual results differing from forecasts[13] Corporate Governance - The company has complied with the GEM listing rules regarding corporate governance, except for a deviation from the principle that the roles of chairman and CEO should be separate[45] - The audit committee reviewed the unaudited consolidated financial results for the nine months ended December 31, 2018, and found them compliant with applicable accounting standards and GEM listing rules[52] - The company has adopted the GEM listing rules as the code of conduct for directors regarding securities trading, and all directors confirmed compliance for the nine months ended December 31, 2018[47] - The company has not identified any individuals, other than directors or senior management, with interests in shares or related securities that require disclosure under the Securities and Futures Ordinance[42] Shareholder Information - As of December 31, 2018, Sage City holds a beneficial interest of 375,750,000 shares, representing 62.63% of the company's equity[41] - The company has not granted any share options since the adoption of the share option plan on September 24, 2016, and there are no unexercised options as of December 31, 2018[50] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the nine months ended December 31, 2018[48] - The company has not engaged in any business that competes directly or indirectly with its operations as of December 31, 2018[43] Leadership - The company’s chairman and CEO, Mr. Kwan, has been in leadership for over 15 years, contributing to the overall business development and strategic planning[45]