ielle cto 2 Shi Shi Services Limited 時時服務有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：8181 2021/22 First Quarterly Report 第 一 季度業績報告 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the p ...

Shi Shi Services Limited 時時服務有限公司 Shi Shi Services Limited 時時服務有限公司 Unit 903, 9 Floor, Haleson Building, 1 Jubilee Street, Central, Hong Kong 香港中環租庇利街1號喜訊大廈9樓903室 Tel 電話號碼：(852) 2155 4112 Fax 傳真號碼：(852) 2155 4114 Email 電郵 ： ir@shishiservices.com.hk www.shishiservices.com.hk (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：8181 2020/21 Annual Report 年度報告 T ■ ■ ■ ■ ■ ■ ■ ■ | 1 | --- | --- | --- | --- | --- | |--------------------------------------------------------- ...

Unit 903, 9 Floor, Haleson Building, 1 Jubilee Street, Central, Hong Kong 香港中環租庇利街1號喜訊大廈9樓903室 Shi Shi Services Limited 時時服務有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：8181 2020/21 Third Quarterly Report 第三季度業績報告 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other compa ...

Unit 903, 9 Floor, Haleson Building, 1 Jubilee Street, Central, Hong Kong 香港中環租庇利街1號喜訊大廈9樓903室 2020/21 Interim Report 中期報告 Shi Shi Services Limited 時時服務有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：8181 E BESSEER CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other compani ...

shishı Shi Shi Services Limited 時 時 服 務 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：8181 2020/21 FIRST QUARTERLY REPORT 第 一 季 度 業 績 報 告 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware o ...

Shi Shi Services Limited 時時服務有限公司 Shi Shi Services Limited 時時服務有限公司 Unit 903, 9 Floor, Haleson Building, 1 Jubilee Street, Central, Hong Kong 香港中環租庇利街1號喜訊大廈9樓903室 Tel 電話號碼：(852) 2155 4112 Fax 傳真號碼：(852) 2155 4114 Email 電郵 ： ir@shishiservices.com.hk www.shishiservices.com.hk (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) 2019/20 Annual Report 年度報告 Stock Code 股份代號：8181 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned ...

[Financial Performance](index=3&type=section&id=Financial%20Performance) [UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME](index=3&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) The Group's revenue increased by 14.2% to HKD 361.8 million, but profit for the period significantly declined by 72.5% to HKD 6.25 million, with basic EPS also decreasing Key Financial Data for Q3 2019/20 (Nine Months Ended December 31, 2019) | Metric | 2019 (HKD '000) | 2018 (HKD '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | 361,804 | 316,748 | +14.2% | | **Gross Profit** | 81,690 | 74,302 | +9.9% | | **Profit before tax** | 12,611 | 28,184 | -55.3% | | **Profit for the period** | 6,251 | 22,713 | -72.5% | | **Profit attributable to owners of the Company** | 6,236 | 19,485 | -68.0% | | **Basic EPS** | 0.61 HK Cents | 2.21 HK Cents | -72.4% | | **Total Equity at Period-End** | 292,111 | 259,698 | +12.5% | [Notes to Financial Statements](index=6&type=section&id=Notes%20to%20Financial%20Statements) [3. REVENUE ANALYSIS](index=7&type=section&id=3.%20REVENUE%20ANALYSIS) Group revenue is primarily from property management and related services, with Hong Kong contributing 90% and mainland China revenue doubling, while consulting services declined Revenue by Business Type and Region (Nine Months Ended December 31) | Revenue Source | 2019 (HKD '000) | 2018 (HKD '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **By Business Type** | | | | | Property Management Services | 324,964 | 279,823 | +16.1% | | Standalone Security Services | 24,776 | 22,781 | +8.8% | | Property Management Consultancy Services | 10,199 | 12,915 | -21.0% | | Investment Property Rental Income | 1,187 | 1,081 | +9.8% | | Money Lending Business Loan Interest Income | 678 | 148 | +358.1% | | **Total Revenue** | **361,804** | **316,748** | **+14.2%** | | **By Region (Property Management and Related Services)** | | | | | Hong Kong | 323,783 | 298,914 | +8.3% | | China | 36,156 | 16,605 | +117.7% | [6. SEGMENT INFORMATION](index=9&type=section&id=6.%20SEGMENT%20INFORMATION) The Group operates in property management, property investment, and money lending segments, with property management as the core, while total assets and liabilities slightly increased Performance by Business Segment (Nine Months Ended December 31, 2019) | Business Segment | Revenue (HKD '000) | Segment Profit/(Loss) (HKD '000) | | :--- | :--- | :--- | | Property Management and Related Services | 359,939 | 30,041 | | Property Investment | 1,187 | (1,124) | | Money Lending Business | 678 | 511 | | **Total** | **361,804** | **29,428** | Segment Assets and Liabilities | Item | December 31, 2019 (HKD '000) | March 31, 2019 (HKD '000) | | :--- | :--- | :--- | | **Reportable Segment Assets** | 294,432 | 269,490 | | **Total Consolidated Assets** | 385,130 | 378,715 | | **Reportable Segment Liabilities** | 87,747 | 84,244 | | **Total Consolidated Liabilities** | 93,019 | 89,588 | [Profitability Analysis (Notes 8, 9, 10, 11)](index=13&type=section&id=Profitability%20Analysis%20%28Notes%208%2C%209%2C%2010%2C%2011%29) Profit for the period declined due to increased staff costs, fair value loss on investment properties, and new listing expenses, leading to a significant decrease in basic EPS - Staff costs (including salaries and benefits) increased by **10.2%** from HKD 260.7 million to **HKD 287.3 million**, representing the largest expense item[53](index=53&type=chunk) - A fair value loss on investment properties of **HKD 2.1 million** was recorded during the period, compared to no such loss in the prior period[53](index=53&type=chunk) - Basic EPS was **0.61 HK cents**, calculated based on profit attributable to owners of the Company of approximately **HKD 6.2 million** and a weighted average of 1,026,351,515 shares[59](index=59&type=chunk)[61](index=61&type=chunk) - The Directors do not recommend the payment of any dividend for the three and nine months ended December 31, 2019[60](index=60&type=chunk)[62](index=62&type=chunk) [Accounting Policies and Other Notes (Notes 1, 2, 4, 5, 7)](index=6&type=section&id=Accounting%20Policies%20and%20Other%20Notes%20%28Notes%201%2C%202%2C%204%2C%205%2C%207%29) The Group primarily engages in property management, property investment, and money lending, adopting new HKFRS standards, with interest income and other income declining due to fair value adjustments and rising finance costs - The Group's principal activities are property management services, property investment, and money lending business[19](index=19&type=chunk) - Interest income significantly decreased from **HKD 2.865 million** to **HKD 0.388 million**, primarily due to reduced interest income from investments at fair value through profit or loss[30](index=30&type=chunk) - Other income recorded a loss of **HKD 1.267 million** (compared to income of HKD 0.219 million in the prior period), mainly due to a **HKD 2.1 million** fair value loss on investment properties[32](index=32&type=chunk) - Finance costs increased from **HKD 0.426 million** to **HKD 0.774 million**, primarily due to new interest on lease liabilities of **HKD 0.333 million**[51](index=51&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=15&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [Business Review and Outlook](index=15&type=section&id=Business%20Review%20and%20Outlook) The Group operates property management, investment, and money lending businesses under the 'Gang Shen' brand, with property management as its core, and management remains optimistic about market expansion while seeking other investment opportunities - The Group primarily engages in property management services (mainly residential), property investment, and money lending business, operating under the 'Gang Shen' brand in Hong Kong[64](index=64&type=chunk)[66](index=66&type=chunk) - Management believes the Hong Kong property market is expanding, with increased future housing supply presenting growth opportunities for property management business[78](index=78&type=chunk)[81](index=81&type=chunk) - Going forward, property management services in Hong Kong and China will remain the Group's core business, while management will continue to seek other investment opportunities to increase revenue[83](index=83&type=chunk)[84](index=84&type=chunk) [Financial Performance Analysis](index=16&type=section&id=Financial%20Performance%20Analysis) The Group's revenue grew by 14.2% to HKD 361.8 million, but gross profit margin slightly decreased, and profit attributable to owners of the Company significantly declined by 68.2% due to various expenses Revenue by Contract Type (Nine Months Ended December 31) | Contract Type | 2019 (HKD Million) | Proportion | 2018 (HKD Million) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Property Management Service Contracts | 324.9 | 89.8% | 279.8 | 88.3% | | Standalone Security Service Contracts | 24.8 | 6.9% | 22.8 | 7.2% | | Property Management Consultancy Service Contracts | 10.2 | 2.8% | 12.9 | 4.1% | | Leasing Service Contracts | 1.2 | 0.3% | 1.1 | 0.3% | | Money Lending Services | 0.7 | 0.2% | 0.1 | 0.1% | | **Total** | **361.8** | **100%** | **316.7** | **100%** | - Gross profit increased by **9.9%**, but gross profit margin decreased from **23.5%** to **22.6%**[75](index=75&type=chunk)[79](index=79&type=chunk) - Profit attributable to owners of the Company significantly decreased by **68.2%**, primarily due to (i) proposed transfer of listing expenses, (ii) reduced profit from an associate, and (iii) fair value loss on investment properties[76](index=76&type=chunk)[77](index=77&type=chunk)[80](index=80&type=chunk) [Operational Details and Significant Events](index=18&type=section&id=Operational%20Details%20and%20Significant%20Events) As of December 31, 2019, the Group's employees decreased, service contracts in Hong Kong increased, and the company formally applied to transfer its listing from GEM to the Main Board - As of December 31, 2019, the Group had **1,409 employees**, with staff costs approximately **HKD 287.3 million**[85](index=85&type=chunk) - As of December 31, 2019, the Group had **444 service contracts** in Hong Kong, including 416 property management, 13 standalone security, and 15 facility management contracts[85](index=85&type=chunk) - The Company formally applied to the Stock Exchange on October 28, 2019, to transfer its listing from GEM to the Main Board, which does not involve issuing new shares[87](index=87&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) [Corporate Governance Practices and Compliance](index=20&type=section&id=Corporate%20Governance%20Practices%20and%20Compliance) The company largely complied with the Corporate Governance Code, with deviations including no CEO position and an independent non-executive director's AGM absence, while an audit committee reviewed quarterly results - The Company complied with the Corporate Governance Code, with deviations including the absence of a Chief Executive Officer role and the non-segregation of Chairman and Chief Executive Officer roles[93](index=93&type=chunk)[94](index=94&type=chunk) - Another deviation was the absence of Independent Non-executive Director Mr. Lo Chi Ho from the Annual General Meeting on July 31, 2019, due to other commitments[99](index=99&type=chunk)[101](index=101&type=chunk) - The Company has an Audit Committee, comprising all independent non-executive Directors, which has reviewed the quarterly results report[117](index=117&type=chunk) [Directors' and Substantial Shareholders' Interests](index=21&type=section&id=Directors%27%20and%20Substantial%20Shareholders%27%20Interests) Chairman Mr. Wong Lai Ming is the controlling shareholder, holding 61.00% of issued share capital through Heng Sheng Capital Limited, with his spouse deemed to have the same interest Substantial Shareholders' Shareholdings | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held (Long Position) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Heng Sheng Capital Limited | Beneficial Owner | 626,071,950 | 61.00% | | Wong Lai Ming (Chairman) | Interest in Controlled Corporation | 626,071,950 | 61.00% | | Li Mengya (Spouse of Mr. Wong) | Interest of Spouse | 626,071,950 | 61.00% | [Share Scheme and Other Disclosures](index=24&type=section&id=Share%20Scheme%20and%20Other%20Disclosures) The company adopted a share option scheme in 2013, with no options granted or exercised during the period, and confirmed maintaining at least 25% public float - The Company has a share option scheme, but no options were granted, exercised, or remained outstanding during the reporting period[115](index=115&type=chunk) - Neither the controlling shareholder nor any Directors engaged in businesses competing with the Group's operations[115](index=115&type=chunk) - The Company confirmed that, as of the latest practicable date prior to this report, the public float was not less than **25%**, in compliance with regulations[129](index=129&type=chunk)[131](index=131&type=chunk) [Corporate Information](index=28&type=section&id=Corporate%20Information) [Company Overview](index=28&type=section&id=Company%20Overview) Time Watch Service Company Limited is a Cayman Islands-registered company listed on GEM (stock code 8181), with this report detailing its board members, committee structures, and key corporate information - The Company's Board of Directors comprises **3 Executive Directors**, **1 Non-executive Director (Chairman)**, and **3 Independent Non-executive Directors**[132](index=132&type=chunk)[137](index=137&type=chunk) - The Company has an Audit Committee, Remuneration Committee, and Nomination Committee, chaired by Independent Non-executive Directors Mr. Lam Kai Yeung, Mr. Lam Kai Yeung, and Mr. Cho Siu Lun, respectively[137](index=137&type=chunk) - The Company changed its principal place of business in Hong Kong to Unit 903, 9/F, Jubilee Centre, 1 Jubilee Street, Central, Hong Kong, effective November 1, 2019[90](index=90&type=chunk)[94](index=94&type=chunk)

Shi Shi Services Limited 時時服務有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：8181 2019/20 INTERIM REPORT 中期報告 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investin ...

shishı Shi Shi Services Limited 時 時 服 務 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：8181 2019/20 FIRST QUARTERLY REPORT 第 一 季 度 業 績 報 告 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware o ...

[Corporate Information](index=4&type=section&id=Corporate%20Information) The report details key management personnel, including board members, committee chairs, company secretary, compliance officer, and authorized representatives - The report details key management personnel, including board members, committee chairs (audit, remuneration, nomination), company secretary, compliance officer, and authorized representatives[13](index=13&type=chunk) - The company changed its name twice in FY2018/19, from "Kong Shum Union Property Management (Holding) Limited" to "Heng Sheng Holdings Limited", then to "Shi Shi Services Limited"[132](index=132&type=chunk)[136](index=136&type=chunk) - The company's main banks are China Construction Bank (Asia) and DBS Bank (Hong Kong), with ZHONGHUI ANDA CPA Limited serving as the auditor[15](index=15&type=chunk) [Group Structure](index=7&type=section&id=Group%20Structure) Shi Shi Services Limited, an investment holding company registered in the Cayman Islands, serves as the group's parent company, operating through multi-tiered subsidiaries - Shi Shi Services Limited (formerly Heng Sheng Holdings Limited), a Cayman Islands-registered investment holding company, is the ultimate parent company of the Group[22](index=22&type=chunk) - The Group operates through multi-tiered wholly-owned subsidiaries across core business segments: - **Hong Kong Property Management and Services**: Provided through Kong Shum Union Property Management (Group) Limited and its subsidiaries (e.g., Kong Shum Union Property Management Limited, Kiu Wai Security Company Limited) offering property management, security, and cleaning services - **Mainland China Business**: Provided through Yuelife Network Technology Co., Ltd. and its subsidiaries (e.g., Zibo Yuelife, Shandong Yuelife, Shi Shi Network Technology) offering property management and consulting services in Mainland China - **Financial and Other Businesses**: Engages in money lending through Lucky Stone Finance Limited and property investment through other subsidiaries[22](index=22&type=chunk)[24](index=24&type=chunk) [Chairman's Statement](index=9&type=section&id=Chairman%27s%20Statement) The Group, primarily engaged in property management, property investment, and money lending, achieved a 3.2% revenue increase and 54.1% EPS growth in FY2018/19, driven by strong Mainland China property management growth FY2018/19 Performance Highlights | Indicator | FY2019 (HK$ million) | FY2018 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 425.7 | 412.3 | +3.2% | | Gross Profit | 103.6 | 94.4 | +9.8% | | Net Profit Margin | 13.5% | 7.5% | +6.0pp | | EPS (HK$) | 0.057 | 0.037 | +54.1% | - The Group primarily engages in property management services, property investment, and money lending business, securing **20 new residential and commercial project management contracts** in Hong Kong during the year[28](index=28&type=chunk) - Mainland China property management services recorded significant growth, with revenue increasing from **HK$9.5 million to HK$27.1 million**, becoming a key future growth engine for the Group[32](index=32&type=chunk)[36](index=36&type=chunk) - The Group plans to expand property management businesses in Hong Kong and Mainland China, leveraging internet, IoT, and AI technologies to offer value-added services like community healthcare, elderly care, and education to enhance profitability and shareholder value[31](index=31&type=chunk)[33](index=33&type=chunk)[36](index=36&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's business operations, financial performance, liquidity, and significant events during the reporting period [Business Overview](index=12&type=section&id=Overview) The Group's core businesses include property management (primarily residential), property investment, and money lending, with property management being the main revenue driver - Core businesses include property management, property investment, and money lending, with property management services as the primary revenue source[45](index=45&type=chunk) - Money lending business had outstanding loans of approximately **HK$18 million** as of March 31, 2019, generating interest income of approximately **HK$0.2 million** for the year, a significant decrease from HK$1.6 million last year[47](index=47&type=chunk) - Property investment business performed steadily, generating rental income of approximately **HK$1.4 million**, a **27.3% year-on-year increase**[49](index=49&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) In FY2019, total revenue grew 3.2% to HK$425.7 million, driven by strong Mainland China property management growth, with profit attributable to owners increasing 82.0% to HK$52.2 million due to an investment indemnity income FY2019 vs FY2018 Financial Performance Summary | Indicator | 2019 (HK$ thousand) | 2018 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | **425,661** | **412,271** | **+3.2%** | | **Gross Profit** | **103,648** | **94,399** | **+9.8%** | | Gross Profit Margin | 24.3% | 22.9% | +1.4pp | | Other Income | 30,129 | 8,384 | +259.4% | | **Profit Before Tax** | **65,233** | **38,326** | **+70.2%** | | **Profit Attributable to Owners of the Company** | **52,229** | **28,695** | **+82.0%** | | Net Profit Margin | 12.3% | 7.0% | +5.3pp | [Revenue Analysis](index=14&type=section&id=Revenue) Total revenue increased by 3.2%, primarily driven by significant growth in Mainland China property management services, while Hong Kong property management remained stable and other services declined Revenue Breakdown by Business Segment | Business Segment | 2019 (HK$ million) | % of Total | 2018 (HK$ million) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Property Management Services | 367.1 | 86.2% | 366.9 | 89.0% | | Property Security Services | 29.9 | 7.0% | 33.2 | 8.1% | | **Mainland China Property Management Services** | **27.1** | **6.4%** | **9.5** | **2.2%** | | Leasing Services | 1.4 | 0.3% | 1.1 | 0.3% | | Money Lending Services | 0.2 | 0.1% | 1.6 | 0.4% | | **Total** | **425.7** | **100%** | **412.3** | **100%** | - Revenue growth was primarily driven by a significant **185.2% increase** in Mainland China property management services revenue, from **HK$9.5 million to HK$27.1 million**[58](index=58&type=chunk)[60](index=60&type=chunk) [Gross Profit Analysis](index=15&type=section&id=Gross%20Profit) Gross profit increased by 9.8% to HK$103.6 million, with the gross profit margin improving to 24.3%, primarily due to effective cost control and service fee adjustments - Gross profit increased by **9.8% year-on-year**, with the gross profit margin improving from **22.9% to 24.3%**[66](index=66&type=chunk)[69](index=69&type=chunk) - Cost of services saw a modest **1.3% year-on-year increase**, mainly due to higher frontline staff salaries, indicating effective cost control that contributed to the improved gross profit margin[65](index=65&type=chunk)[68](index=68&type=chunk) [Profit Attributable to Owners of the Company Analysis](index=16&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the company surged by 82.0% to HK$52.2 million, with the net profit margin rising to 12.3%, mainly due to a HK$26 million indemnity income from an investment - Profit attributable to owners of the company increased significantly by **82.0% year-on-year**, with the net profit margin improving by **5.3 percentage points to 12.3%**[74](index=74&type=chunk)[78](index=78&type=chunk) - The primary driver for the profit increase was an indemnity income of approximately **HK$26 million** received from the investment in All Profit Alliance Limited (2018: nil)[75](index=75&type=chunk)[78](index=78&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=17&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of March 31, 2019, the Group maintained a healthy financial position with strong liquidity, evidenced by a significant increase in net current assets and cash, and a low gearing ratio Financial Position and Key Ratios | Indicator | March 31, 2019 | March 31, 2018 | | :--- | :--- | :--- | | **Net Current Assets (HK$ thousand)** | **185,640** | **98,558** | | **Bank Balances and Cash (HK$ thousand)** | **142,200** | **54,165** | | **Total Equity (HK$ thousand)** | **289,127** | **196,076** | | Return on Equity (ROE) | 23.7% | 19.8% | | Return on Assets (ROA) | 17.6% | 13.0% | | **Current Ratio** | **3.08 times** | **2.30 times** | | **Gearing Ratio** | **4.4%** | **9.1%** | | Net Debt to Equity Ratio | 0% | 0% | | Trade Receivables Turnover Days | 53.3 days | 43.3 days | | Trade Payables Turnover Days | 41.5 days | 26.0 days | - The improvement in the current ratio was primarily due to an increase in cash and cash equivalents, partially offset by the repayment of approximately **HK$7.7 million** in acceptance bills[89](index=89&type=chunk)[96](index=96&type=chunk) - Trade receivables turnover days increased from **43.3 days to 53.3 days**, indicating a longer collection period for trade receivables[92](index=92&type=chunk)[99](index=99&type=chunk) [Operation Review](index=20&type=section&id=Operation%20Review) During the fiscal year, the Group expanded its workforce to 2,021 employees, secured 437 Hong Kong service contracts, completed two company name changes, and undertook significant transactions including a share placement, an acquisition, and the resolution of a trademark lawsuit - As of March 31, 2019, the Group's total number of employees increased to **2,021** (2018: 1,965), with staff costs amounting to approximately **HK$349.3 million**[105](index=105&type=chunk) - A new share placement was completed in November 2018, raising net proceeds of approximately **HK$40.4 million** from the placement of **171 million shares** at HK$0.24 per share, intended for Mainland China business expansion and working capital[113](index=113&type=chunk)[140](index=140&type=chunk) - The company received an indemnity settlement of **HK$26 million** in January 2019 due to All Profit's failure to meet profit guarantees[127](index=127&type=chunk) - The company reached a settlement with Hang Seng Bank regarding a "Hang Seng" trademark infringement lawsuit, which had no material adverse impact on the Group's financial position or operations[129](index=129&type=chunk) - On March 29, 2019, the company acquired Shi Shi Property (Cayman) Limited and its subsidiaries for **HK$8 million** in cash to expand its property management services business in Shandong Province, Mainland China[134](index=134&type=chunk) [Biographies of Directors and Senior Management](index=31&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) The Board comprises three executive directors, one non-executive director, and three independent non-executive directors, with members possessing extensive professional experience in various relevant fields - The Board of Directors consists of **3 executive directors, 1 non-executive director, and 3 independent non-executive directors**; Mr. Wong Lai Ming serves as the non-executive director and Chairman of the Board, also being the controlling shareholder of the company[146](index=146&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk) - Board members and senior management possess extensive professional experience and backgrounds in property management, real estate investment, finance, accounting, and legal fields[146](index=146&type=chunk)[148](index=148&type=chunk)[153](index=153&type=chunk) [Corporate Governance Report](index=40&type=section&id=Corporate%20Governance%20Report) This report outlines the Group's corporate governance practices, including compliance with the Corporate Governance Code, the structure and functions of the Board, and its various committees [Compliance with the Corporate Governance Code](index=40&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The company largely complied with the Corporate Governance Code, with two deviations: no CEO position and an independent non-executive director's absence from the 2018 AGM - The company has not formally established a Chief Executive Officer (CEO) position, with daily operations jointly overseen by executive directors and senior management; the Board believes the current structure ensures effective management[176](index=176&type=chunk) - Independent Non-executive Director Mr. Lo Chi Ho was unable to attend the Annual General Meeting held on July 31, 2018, due to other commitments[179](index=179&type=chunk) [Board and Committees](index=42&type=section&id=Board%20and%20Committees) The Board, composed of seven diverse directors, held 19 meetings, supported by audit, remuneration, nomination, and compliance committees, each fulfilling its duties with relevant expertise Board and Committee Meeting Attendance Record (FY2019) | Director | Board | Audit Committee | Remuneration Committee | Nomination Committee | | :--- | :--- | :--- | :--- | :--- | | Dar Zhenbiao | 16/19 | N/A | N/A | N/A | | Ho Ying Choi | 19/19 | N/A | 3/4 | 1/1 | | Li Chin Ching | 19/19 | N/A | N/A | N/A | | Wong Lai Ming | 19/19 | N/A | N/A | N/A | | Cho Siu Lun | 9/19 | 4/4 | 4/4 | 1/1 | | Lam Kai Yeung | 19/19 | 4/4 | 4/4 | 1/1 | | Lo Chi Ho | 14/19 | 4/4 | 2/4 | 1/1 | - The Audit Committee comprises three independent non-executive directors, chaired by Mr. Lam Kai Yeung, and held **4 meetings** during the year to review annual and quarterly financial results[218](index=218&type=chunk) - The Remuneration Committee consists of one executive director and three independent non-executive directors, chaired by Mr. Lam Kai Yeung, and held **4 meetings** during the year to review directors' and senior management's remuneration[224](index=224&type=chunk)[225](index=225&type=chunk) [Directors' Report](index=55&type=section&id=Directors%27%20Report) This report covers the Board's recommendations on dividends, details of the controlling shareholder, major customers and suppliers, and confirms no share repurchases during the period - The Board does not recommend the payment of any dividend for the year ended March 31, 2019[264](index=264&type=chunk) - As of March 31, 2019, the controlling shareholder, Heng Sheng Capital Limited (wholly owned by Chairman Mr. Wong Lai Ming), held **626,071,950 shares**, representing **61.00%** of the company's issued share capital[136](index=136&type=chunk)[316](index=316&type=chunk) - During the year, the top five customers collectively accounted for approximately **13.00% of total sales**, with the largest customer contributing **3.6%**; the top five suppliers collectively accounted for approximately **94.5% of total purchases**, with the largest supplier contributing **43.6%**[330](index=330&type=chunk)[333](index=333&type=chunk) - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[280](index=280&type=chunk) [Environmental, Social and Governance Report](index=68&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) This report outlines the Group's commitment to environmental protection, employee welfare, and ethical governance, detailing performance in resource usage, emissions, workforce management, and anti-corruption efforts [Environment](index=71&type=section&id=Environment) The Group is committed to environmental protection through a "smart use" culture, reporting total greenhouse gas emissions of 381 tonnes of CO2e and total energy consumption of 2,164 gigajoules 2018-2019 Environmental Key Performance Indicators (KPIs) | Category | Indicator | Unit | 2018–2019 | | :--- | :--- | :--- | :--- | | **Energy Consumption** | Total Energy Consumption | Gigajoules | 2,164 | | | Electricity Consumption | kWh | 486,157 | | **GHG Emissions** | Total Emissions (Scope 1+2+3) | tonnes of CO2 equivalent | 381 | | | Scope 1 - Direct Emissions | tonnes of CO2 equivalent | 35 | | | Scope 2 - Energy Indirect Emissions | tonnes of CO2 equivalent | 306 | | **Waste Management** | Total Non-Hazardous Waste | tonnes | 6.6 | | **Resource Use** | Water Consumption | cubic meters | 647 | [Social](index=76&type=section&id=Social) The Group prioritizes employee well-being, employing 2,021 staff, offering competitive compensation, and focusing on occupational health, equal opportunities, and anti-corruption, with significant training hours provided - As of March 31, 2019, the Group employed a total of **2,021 staff**, comprising **266 management and general staff** and **1,755 security personnel**; the annual turnover rate for management and general staff was **57%**, and for security personnel was **117%**[407](index=407&type=chunk) Employee Training Hours Statistics | Employee Category | Number of Employees Trained | Total Training Hours | | :--- | :--- | :--- | | Management and General Staff | 266 | 1,050 | | Security Personnel | 1,755 | 10,530 | - During the reporting period, the Group recorded **32 work-related injury cases** resulting in lost workdays, but no major safety incidents or violations[428](index=428&type=chunk) - The Group strictly adheres to anti-corruption regulations and has issued "Anti-Corruption Measures for Accounting, Security, Engineering, and Property Management" guidelines to employees; no non-compliance related to corruption or bribery was found during the reporting period[441](index=441&type=chunk) [Independent Auditor's Report](index=84&type=section&id=Independent%20Auditor%27s%20Report) ZHONGHUI ANDA CPA Limited issued an unqualified opinion on the Group's FY2019 consolidated financial statements, affirming their fair presentation and compliance with HKFRS and Hong Kong Companies Ordinance - The auditor, ZHONGHUI ANDA CPA Limited, issued an **unqualified opinion** on the company's FY2019 consolidated financial statements, affirming that they present a true and fair view of the Group's financial position, performance, and cash flows, and are properly prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[453](index=453&type=chunk)[455](index=455&type=chunk) - The report identified three key audit matters: - **Investment Properties**: Involving significant judgments and estimates in fair value measurement - **Trade Receivables**: Involving significant judgments and estimates in impairment testing - **Investment in an Associate**: Involving significant judgments and estimates in impairment testing[458](index=458&type=chunk)[460](index=460&type=chunk)[463](index=463&type=chunk) [Audited Financial Statements](index=90&type=section&id=Audited%20Financial%20Statements) This section presents the Group's audited financial statements, including the consolidated statement of profit or loss, financial position, and cash flows, providing a detailed view of its financial performance and health [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=90&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2019, the Group reported revenue of HK$425.7 million, an 85.3% increase in profit for the year to HK$57.38 million, and an 82.0% increase in profit attributable to owners to HK$52.23 million Consolidated Statement of Profit or Loss Key Data | Item (HK$) | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | 425,660,545 | 412,270,727 | | Gross Profit | 103,647,975 | 94,398,857 | | Profit Before Tax | 65,233,485 | 38,326,490 | | **Profit for the Year** | **57,380,097** | **30,962,956** | | **Profit Attributable to Owners of the Company** | **52,228,674** | **28,694,621** | | Total Comprehensive Income for the Year | 58,027,213 | 31,136,216 | | Basic Earnings Per Share (HK$) | 0.057 | 0.037 | [Consolidated Statement of Financial Position](index=92&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2019, total assets reached HK$378.7 million, with net assets increasing 47.5% to HK$289.1 million, driven by a significant rise in cash and cash equivalents Consolidated Statement of Financial Position Key Data | Item (HK$) | March 31, 2019 | March 31, 2018 | | :--- | :--- | :--- | | **Non-current Assets** | **103,955,565** | **97,821,582** | | **Current Assets** | **274,760,280** | **174,636,442** | | Of which: Cash and Cash Equivalents | 142,200,011 | 54,164,638 | | **Total Assets** | **378,715,845** | **272,458,024** | | **Current Liabilities** | **89,119,624** | **76,077,766** | | **Non-current Liabilities** | **468,731** | **304,165** | | **Total Liabilities** | **89,588,355** | **76,381,931** | | **Net Assets** | **289,127,490** | **196,076,093** | | **Total Equity** | **289,127,490** | **196,076,093** | [Consolidated Statement of Cash Flows](index=95&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the year ended March 31, 2019, net cash from operating activities was HK$14.38 million, with significant cash inflows from investing activities (HK$42.72 million) and financing activities (HK$27.92 million), leading to a substantial increase in year-end cash balance Consolidated Statement of Cash Flows Key Data | Item (HK$) | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 14,384,147 | 8,582,580 | | Net Cash Flow from Investing Activities | 42,722,662 | (22,568,207) | | Net Cash Flow from Financing Activities | 27,917,186 | 27,047,568 | | **Net Increase in Cash and Cash Equivalents** | **85,023,995** | **13,061,941** | | Cash and Cash Equivalents at Beginning of Year | 54,164,638 | 41,035,127 | | **Cash and Cash Equivalents at End of Year** | **139,558,777** | **54,164,638** | [Five Year Financial Summary](index=184&type=section&id=Five%20Year%20Financial%20Summary) This section provides a five-year overview of the Group's financial performance, including key income statement and balance sheet figures, illustrating trends in revenue, profit, assets, and liabilities Five-Year Performance Summary (HK$ thousand) | Item | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 425,661 | 412,271 | 395,514 | 374,024 | 339,722 | | Gross Profit | 103,648 | 94,399 | 83,308 | 78,268 | 70,442 | | Profit Before Tax | 65,233 | 38,326 | 13,508 | 5,956 | 7,294 | | Net Profit for the Year | 57,380 | 30,963 | 10,188 | 2,815 | 4,974 | Five-Year Assets and Liabilities Summary (HK$ thousand) | Item | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 378,716 | 272,458 | 203,395 | 144,871 | 100,563 | | Total Liabilities | (89,589) | (76,381) | (87,125) | (56,529) | (61,276) | | Net Assets | 289,127 | 196,077 | 116,270 | 88,342 | 39,287 |