香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SMART CITY DEVELOPMENT HOLDINGS LIMITED 智城發展控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8268） 截至二零二三年三月三十一日止年度 年度業績 智城發展控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及 其附屬公司截至二零二三年三月三十一日止年度之經審核業績。本公告列載本 公司二零二三年年報全文，並符合香港聯合交易所有限公司（「聯交所」）GEM證 券上市規則（「GEM上市規則」）中有關年度業績初步公告附載資料之要求。本公 司之二零二三年年報將於二零二三年六月三十日在聯交所網站www.hkexnews.hk 及本公司網站www.smartcity-d.com可供閱覽。 承董事會命 智城發展控股有限公司 執行董事 洪君毅 香港，二零二三年六月二十六日 於本公告日期，董事會由執行董事洪君毅先生及劉寶儀女士；及獨立非執行董 事黃 ...

Financial Performance - For the nine months ended December 31, 2022, the company's revenue was HKD 223,183,000, a decrease of 6.8% compared to HKD 239,549,000 for the same period in 2021[3] - The gross profit for the nine months was HKD 20,847,000, down 27.4% from HKD 28,682,000 in the previous year[3] - The company reported a net loss of HKD 6,897,000 for the nine months, compared to a profit of HKD 9,111,000 in the same period last year[4] - Administrative expenses increased to HKD 31,161,000, up 28.5% from HKD 24,251,000 in the previous year[3] - The basic and diluted loss per share for the nine months was HKD 3.17, compared to earnings of HKD 4.69 per share in the previous year[3] - The total comprehensive loss for the nine months was HKD 6,897,000, compared to a total comprehensive income of HKD 7,134,000 in the same period last year[4] Revenue Breakdown - The company did not report any revenue from the sale of subsidiaries during the nine months, compared to HKD 3,216,000 in the previous year[3] - The company’s other income and gains for the nine months were HKD 3,147,000, significantly higher than HKD 772,000 in the previous year[3] - For the three months ended December 31, 2022, the total revenue from external customers was HKD 79,795,000, while for the nine months, it was HKD 223,183,000, representing a significant increase compared to the previous periods[15] - The construction segment reported a loss of HKD 716,000 for the three months and a loss of HKD 2,832,000 for the nine months, indicating challenges in this division[15] - The securities investment segment recorded a loss of HKD 1,006,000 for the three months and a loss of HKD 1,198,000 for the nine months, reflecting market volatility[15] - The property investment segment generated a profit of HKD 745,000 for the nine months, showing some resilience in this area[15] Operating Expenses and Losses - The total adjusted loss before tax for the three months was HKD 3,076,000, and for the nine months, it was HKD 6,861,000, highlighting ongoing financial pressures[15] - The group’s total operating expenses for the nine months ended December 31, 2022, were HKD 20,333,000, compared to HKD 18,338,000 for the same period in 2021, representing an increase of approximately 10.9%[24] - The group reported a loss of approximately HKD 871,000 in the listed securities investment segment for the nine months ended December 31, 2022, compared to a profit of approximately HKD 5,115,000 in the same period last year[43] Share Issuance and Equity - The company issued new shares amounting to HKD 32,000,000 during the reporting period[6] - The company's total equity as of December 31, 2022, was HKD 154,351,000, an increase from HKD 130,371,000 as of April 1, 2022[6] - The company issued 40,000,000 shares at HKD 0.8 each, raising approximately HKD 32,000,000, which was recorded in the company's capital[34] Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring oversight of financial controls and risk management[101] - The company has adopted corporate governance practices to enhance transparency and accountability to shareholders[100] - The board of directors includes both executive and independent non-executive members, ensuring a balanced governance structure[102] - The company is committed to maintaining high standards of corporate governance to foster confidence among stakeholders[100] Market and Strategic Developments - The group aims to attract larger corporate clients and diversify its customer base due to the ongoing upward trend in overall building and construction spending[69] - The group has obtained multiple new projects, including residential construction and renovation contracts in various locations[67] - The group continues to develop its lending business despite increased competition and uncertainty in the market[75] - The group is focusing on careful bidding for new construction contracts to selectively accept new projects[71] Investment and Financial Assets - As of December 31, 2022, the group held financial assets at fair value amounting to approximately HKD 29,299,000[77] - The group realized proceeds from the sale of certain investments amounting to approximately HKD 15,264,000 during the reporting period, with recognized gains of approximately HKD 1,041,000[79] - The group’s investment in the Hong Kong government’s green retail bonds, maturing in 2025, has a minimum interest rate of 2.5% and is linked to Hong Kong inflation[80] - The group’s non-listed debt investments include Morgan Asia Total Return Bond Fund, with a market value of approximately HKD 2,890,000 and a loss of HKD 399,400[77] - The group’s listed equity investments recorded a loss of approximately HKD 1,148,000, representing 60.3% of the market value of HKD 17,659,100[77] Shareholder Interests - Directors and key executives had no recorded interests in the company’s shares or related securities as of December 31, 2022[87] - There are no significant changes in the interests of directors or major shareholders in the company's shares as of December 31, 2022[91] - As of December 31, 2022, Masan Multi Strategy Fund holds 35,715,200 shares, representing 14.88% of the company's issued share capital[89] - Energy Luck Limited, owned by Mr. Wang Jucheng, holds 23,978,816 shares, accounting for 9.99% of the company's issued share capital[94] - Like Capital Limited, fully owned by Ethnocentric Investment Limited, holds 12,661,000 shares, which is 5.28% of the company's issued share capital[94] Dividend Policy - The company did not recommend the payment of any interim dividend for the nine months ended December 31, 2022[33] - The group did not recommend the payment of any interim dividend for the nine months ended December 31, 2022[55]

Financial Performance - The company's revenue for the six months ended September 30, 2022, was HKD 143,388,000, a decrease of 13.9% compared to HKD 166,655,000 for the same period in 2021[4] - Gross profit for the same period was HKD 12,621,000, down 30.4% from HKD 18,075,000 in the previous year[4] - The company reported a net loss of HKD 3,785,000 for the six months ended September 30, 2022, compared to a profit of HKD 8,206,000 in the same period of 2021[4] - Administrative expenses increased to HKD 18,229,000 from HKD 13,393,000, reflecting a rise of 36.5% year-on-year[4] - The company reported a basic loss per share of HKD 0.03 for the six months ended September 30, 2022, compared to earnings of HKD 4.24 per share in the previous year[4] - The group reported segment revenue from external customers of 75,396 million HKD for the six months ended September 30, 2022, compared to 144,386 million HKD for the same period last year, reflecting a decrease of approximately 47.5%[28] - The construction business segment generated revenue of 74,638 million HKD, while the securities investment segment reported a loss of 938 million HKD for the same period[28] - The group’s financial performance is assessed based on adjusted profit/loss before tax, consistent with the measurement of profit/loss before tax for the group[25] - The group reported a pre-tax profit of HKD 5,774,000 for the three months ended September 30, 2022, compared to HKD 5,578,000 in 2021, showing a slight increase of 3.5%[43] Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 38,404,000 from HKD 67,345,000, a decline of 42.9%[9] - The company reported a cash flow from operating activities of HKD (17,070,000) for the six months ended September 30, 2022, compared to HKD 80,779,000 in the same period last year[16] - The net cash flow from investing activities was HKD 5,407,000, a significant improvement from HKD (28,695,000) in the previous year[18] - The company’s cash and cash equivalents at the end of the period were HKD 35,596,000, down from HKD 108,433,000 at the end of the previous year[18] - The company’s total current assets amounted to HKD 216,874,000, slightly down from HKD 219,437,000[9] - The company's net asset value decreased to HKD 49,088,000 from HKD 51,974,000, a decline of 5.6%[9] - Non-current assets totaled HKD 79,391,000, down from HKD 80,371,000[9] - The group’s total liabilities decreased to HKD 3,216,000 as of September 30, 2022, compared to HKD 3,234,000 in 2021, reflecting a reduction of 0.6%[43] Segment Performance - The construction business segment's revenue from building construction and related services was approximately HKD 66,099,000, representing a 52% increase from HKD 43,402,000 in the previous year[75] - The electromechanical engineering segment generated revenue of approximately HKD 73,493,000, a slight decrease of about 7% from HKD 79,112,000 in the previous year[76] - The interior renovation segment saw a significant decrease of approximately 94%, with revenue of HKD 2,236,000 compared to HKD 37,097,000 in the previous year, primarily due to the sale of Beijing Changdi Construction Decoration Engineering Co., Ltd.[78] - The lending business segment recorded revenue of approximately HKD 1,449,000, an increase of about 240% compared to HKD 426,000 for the six months ended September 30, 2021[73] Shareholder and Corporate Governance - The company completed a placement of 40,000,000 shares at a price of HKD 0.80 per share, increasing the issued share capital by approximately 16.67%[130] - Major shareholders include Energy Luck Limited with 23,978,816 shares (11.99%) and Masan Multi Strategy Fund SPC with 34,171,200 shares (17.08%) as of September 30, 2022[141][142] - The company has adopted the corporate governance code as per GEM Listing Rules and has generally complied with it during the reporting period[151] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the group's financial controls and risk management systems[152] Employee and Remuneration - As of September 30, 2022, the company had 91 employees, with total employee benefit expenses amounting to approximately HKD 11,454,000, a slight increase from HKD 11,221,000 in the same period last year[131] - The company’s remuneration policy includes discretionary bonuses and share options to attract and retain high-quality employees[131] - The company’s employee benefits expenses increased primarily due to the hiring of additional staff in the electromechanical engineering sector[131] Future Outlook and Strategy - The group plans to continue balancing its construction business in Hong Kong and Macau, adopting a prudent strategy for project bidding to address challenges in the construction and engineering sectors[112] - The group aims to attract larger corporate clients and diversify its customer base due to the ongoing upward trend in overall building and construction spending[116] - The group will continue to apply for necessary licenses and permits to expand its service scope and selectively undertake new contracts[118] - The group has established a Treasury Management Committee to execute investment policies and guidelines, aiming to generate additional investment returns[120] - The group believes that the lending business will have a positive impact and return despite the challenging external environment[122]

Financial Performance - Revenue for the three months ended June 30, 2022, was HKD 68,762,000, a decrease of 7.3% compared to HKD 74,034,000 in the same period of 2021[6] - Gross profit for the same period was HKD 5,363,000, down 52.8% from HKD 11,346,000 year-on-year[6] - The company reported a loss before tax of HKD 3,719,000, compared to a profit of HKD 2,439,000 in the previous year[6] - Basic loss per share for the period was HKD 1.86, compared to earnings of HKD 1.35 per share in the prior year[6] - Total comprehensive loss for the period was HKD 3,719,000, compared to a total comprehensive income of HKD 1,960,000 in the same period last year[8] Revenue Breakdown - The group's revenue from customer contracts for the three months ended June 30, 2022, was HKD 67,190,000, a slight decrease from HKD 68,104,000 in the same period of 2021, representing a decline of approximately 1.34%[21] - The construction business segment generated revenue of HKD 26,205,000 from building construction, up from HKD 18,160,000 in the previous year, indicating a growth of approximately 44.5%[22] - The group's total revenue from external customers in Hong Kong was HKD 68,762,000 for the three months ended June 30, 2022, compared to HKD 60,263,000 in the same period of 2021, marking an increase of approximately 14.8%[19] - The securities investment segment reported a revenue of approximately HKD 747,000, a significant decrease of about 87% from approximately HKD 5,525,000 in the same period last year[39] - The property investment segment maintained revenue at approximately HKD 153,000, unchanged from the previous year[39] - The lending business segment saw an increase in revenue to approximately HKD 672,000, up about 167% from approximately HKD 252,000 in the same period last year[39] Expenses and Costs - Administrative expenses increased to HKD 9,449,000 from HKD 9,005,000, reflecting a rise of 4.9% year-on-year[6] - The group incurred employee benefits expenses of HKD 7,544,000 for the three months ended June 30, 2022, which is slightly lower than HKD 7,550,000 in the same period of 2021[27] - Financial costs decreased by approximately HKD 194,000 or 96% to about HKD 8,000, as there were no short-term loan interest expenses incurred during the reporting period[56] Other Income and Gains - Other income and gains rose to HKD 436,000 from HKD 225,000, an increase of 93.3% year-on-year[6] - The group reported other income of HKD 436,000 for the three months ended June 30, 2022, which is an increase from HKD 225,000 in the same period of 2021, reflecting a growth of approximately 93.3%[25] - Other income and gains increased by approximately HKD 200,000 or 94% to about HKD 400,000, mainly due to an increase in government subsidies during the reporting period[54] Investment and Strategy - The group aims to continue balancing its construction business development in Hong Kong and Macau, adopting a prudent strategy for project bidding[64] - The group will seek investment opportunities in listed securities and other financial products to generate additional income and enhance capital utilization[70] - The group’s investment strategy includes a diversified portfolio of fixed-income securities, aiming for competitive total returns[77] - The board will adopt more prudent measures to manage the investment portfolio in response to recent economic volatility and instability[70] Compliance and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[13] - The company has established an audit committee to review and supervise financial controls and risk management systems[96] Future Outlook - The company has not provided specific guidance for future performance or new product developments in the conference call[6] - The group continues to develop its lending business despite increased competition and uncertainty in the Hong Kong lending market, expecting positive impacts and returns[72] Shareholder Information - Energy Luck Limited and Mr. Wang Ju Cheng hold 23,978,816 shares, representing 11.99% of the company's issued share capital[88] - Masan Multi Strategy Fund SPC — Masan HK Equity Fund SP holds a total of 34,171,200 shares, accounting for 17.08% of the company's issued share capital[88] Miscellaneous - The group did not recognize any revenue from its operations in mainland China for the three months ended June 30, 2022, due to the sale of its subsidiary Beijing Changdi Construction Decoration Engineering Co., Ltd. in August 2021[19] - The group has no significant contingent liabilities or capital commitments as of the reporting date[57][58] - The group has no unexercised share options as of June 30, 2022, under the share option scheme adopted in August 2015[79] - A subscription agreement was signed on August 11, 2022, for the issuance of bonds totaling HKD 20,000,000 with a coupon rate of 7%[97]

Financial Performance - The company recorded revenue of approximately HKD 324.9 million for the year, a decrease of about 47.4% compared to approximately HKD 617.8 million for the previous year[32]. - Revenue from the construction business segment was approximately HKD 319.4 million, down about 47% from approximately HKD 606.1 million in the previous year[32]. - The securities investment segment reported revenue of approximately HKD 3.7 million, a decrease of about 64% from approximately HKD 10.3 million in the previous year[32]. - The property investment segment saw an increase in revenue to approximately HKD 600,000, up about 260% from approximately HKD 200,000 in the previous year[32]. - The lending business segment recorded revenue of approximately HKD 1.3 million, an increase of about 10% from approximately HKD 1.1 million in the previous year[32]. - The net profit attributable to the owners of the company was approximately HKD 15.3 million, compared to HKD 9.9 million in the previous year[32]. - The overall gross profit increased by approximately HKD 1,000,000 or 2% to about HKD 49,900,000, with a gross margin of 15.4%, up 7.5 percentage points from 7.9% in the previous year[56]. - Basic earnings per share were HKD 0.0767, compared to HKD 0.0493 in the previous year[50]. - Other income and gains decreased by 78% to approximately HKD 1,000,000 from HKD 4,500,000 in the previous year[57]. Business Strategy and Market Outlook - The company plans to continue seeking attractive growth opportunities in China, Hong Kong, and other regions to drive long-term financial returns for shareholders[34]. - The construction market in Hong Kong is expected to remain competitive and challenging, but the company aims to enhance its market position and diversify its customer base[33]. - The company will adopt a prudent strategy for project bidding to address challenges in the construction and engineering sectors[31]. - Potential opportunities may arise from the Hong Kong government's promotion of modular integrated construction methods and recent developments in the Greater Bay Area[33]. - The group aims to enhance its market position in Hong Kong by attracting larger corporate clients and bidding for capital-intensive projects, driven by an upward trend in overall building and construction expenditure[86]. - The company will focus on its interior decoration business in Hong Kong and Macau following the sale of its construction business, adopting a prudent strategy for project bidding[81]. Financial Position and Investments - The company managed a fair value of approximately HKD 19,000,000 in listed equity investments and non-listed debt investments as of March 31, 2022[46]. - Prepayments, deposits, and other receivables decreased by approximately HKD 56,000,000 or 77% to reflect the sale of DCEL Group and the reduction in cash held in licensed corporate securities accounts[62]. - Contract assets decreased by approximately HKD 54,200,000 or 59.3% due to the cancellation of consolidated accounts from the sale of DCEL Group[63]. - Accounts payable decreased by approximately HKD 38,800,000 or 82.2%, primarily due to the cancellation of consolidated accounts from the sale of DCEL Group[64]. - Other payables and accrued expenses decreased by approximately HKD 54,300,000 or 34.3%, mainly due to the sale of DCEL Group and project completion in the construction segment[65]. - The group holds approximately HKD 19,000,000 in equity and debt investments at fair value, with significant investments including HKD 1,092,000 in Heng Tai Yu Group Holdings Limited, representing 12.4% of the group's net asset value[95]. - The group sold certain investments during the reporting period, generating proceeds of approximately HKD 27,100,000, resulting in a net gain of approximately HKD 3,800,000[2]. Corporate Governance - The board of directors is committed to maintaining high standards of corporate governance and business ethics[9]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors[117]. - All directors have sufficient experience to effectively perform their duties, and the board has complied with GEM listing rules by appointing at least three independent non-executive directors[119]. - The company has established formal and transparent procedures for the appointment and succession of directors, ensuring compliance with GEM listing rules[120]. - Each director is required to retire and be re-elected by shareholders at least once every three years[121]. - The company has established a diversity policy for board members, considering various factors such as gender, age, and professional experience[152]. - The company allows shareholders to propose candidates for the board, with details provided in a circular sent to shareholders[158]. - The board has the final decision-making authority regarding any proposed candidates for shareholder meetings[160]. Risk Management and Internal Controls - The group has adopted a risk management system to manage business and operational risks, which includes identifying risk sources and assessing their potential impact[182][183]. - The internal control system is designed in accordance with the COSO 2013 framework, aiming for operational effectiveness, reliable financial reporting, and compliance with applicable laws[186]. - The board has concluded that the risk management and internal control systems are effective and adequate, although they are designed to manage rather than eliminate risks[198]. - The internal audit department, composed of qualified professionals, independently evaluates the risk management and internal control systems[197]. - There were no identified significant deficiencies in internal controls during the reporting period[196]. Employee and Operational Information - Employee benefit expenses for the reporting period totaled approximately HKD 36,000,000, an increase from approximately HKD 33,000,000 in the previous year[6]. - The group had 92 employees as of March 31, 2022, primarily based in Hong Kong[6]. - The company has no major investment or capital asset plans as of March 31, 2022[3]. Audit and Compliance - The audit committee consists of three independent non-executive directors, including one with relevant professional qualifications in accounting or financial management[138]. - The audit committee held four meetings during the review period to assess recent financial performance and compliance procedures[141]. - The company appointed a new auditor, Tianzhi Hong Kong CPA Limited, effective from September 20, 2021, following the resignation of Ernst & Young[175]. - The audit fees for the year ended March 31, 2022, amounted to HKD 1,100,000 for audit services and HKD 114,000 for non-audit services[175]. - The company has adopted a code of conduct for securities trading, ensuring compliance with relevant regulations during the review period[176].

Financial Performance - For the six months ended September 30, 2021, the company reported revenue of HKD 166,655,000, a decrease of 11% from HKD 187,039,000 in the same period of 2020[5] - Gross profit for the same period was HKD 18,075,000, representing an increase of 8.4% compared to HKD 16,675,000 in 2020[5] - The net profit attributable to the owners of the company for the six months was HKD 8,477,000, up 118% from HKD 3,872,000 in the prior year[5] - Basic earnings per share for the six months was HKD 4.24, compared to HKD 1.94 in the same period last year, reflecting a significant increase[5] - The company reported a net profit of HKD 8,477,000 for the six months ended September 30, 2021, compared to a loss of HKD 5,372,000 in the previous period[15] - The group reported a total revenue of 166,838,000 for the six months ended September 30, 2021, compared to 158,794,000 for the same period last year, representing an increase of approximately 5.5%[31] - The group’s profit before tax for the three months ended September 30, 2021, was HKD 5,775,000, compared to HKD 3,284,000 for the same period in 2020, representing a 75.9% increase[50] - For the six months ended September 30, 2021, the profit attributable to ordinary shareholders was HKD 8,477,000, up from HKD 3,872,000 in 2020, marking a 118.5% increase[51] Assets and Liabilities - Total assets as of September 30, 2021, amounted to HKD 124,634,000, an increase from HKD 107,211,000 as of March 31, 2021[11] - The company reported a decrease in current liabilities to HKD 199,939,000 from HKD 282,914,000, indicating improved liquidity[11] - Cash and cash equivalents increased significantly to HKD 108,433,000 from HKD 61,969,000, enhancing the company's financial position[11] - The total equity as of September 30, 2021, was HKD 123,549,000, an increase from HKD 97,027,000 as of April 1, 2021[15] - The company’s total liabilities related to accounts payable significantly decreased, particularly in the over 360 days category, from HKD 33,977,000 to HKD 1,911,000[63] - Accounts payable totaled HKD 11,776,000 as of September 30, 2021, down from HKD 47,205,000 as of March 31, 2021, indicating a significant reduction of approximately 75%[63] Cash Flow - Cash flow from operating activities for the six months ended September 30, 2021, was HKD 80,779,000, significantly higher than HKD 21,348,000 in the same period last year[18] - The company experienced a decrease in cash flow from investing activities, reporting a net outflow of HKD 28,695,000 compared to an inflow of HKD 1,279,000 in the previous year[20] - Financing activities resulted in a net cash outflow of HKD 5,680,000, down from an inflow of HKD 10,746,000 in the prior period[20] - The company's cash and cash equivalents at the end of the period were HKD 108,433,000, a decrease from HKD 140,875,000 at the end of the previous year[20] Revenue Segmentation - The construction business segment generated revenue of 91,536,000, while the securities investment segment contributed 788,000, indicating a strong performance in the construction sector[31] - The revenue from property investment rental income for the six months ended September 30, 2021, was HKD 306,000, compared to HKD 20,000 in the same period of 2020, showing a significant increase[39] - The revenue from construction services for the three months ended September 30, 2021, was HKD 25,243,000, compared to HKD 17,992,000 in the same period of 2020, representing an increase of approximately 40.5%[41] - The construction segment generated revenue of approximately HKD 159,611,000, down 12% from HKD 182,334,000 for the same period last year[80] - The property investment segment recorded revenue of approximately HKD 306,000, a significant increase of 1,430% from HKD 20,000 for the same period last year[80] Expenses and Costs - The total employee benefits expenses, including salaries and allowances, for the six months ended September 30, 2021, amounted to HKD 14,914,000, a decrease from HKD 14,139,000 in the same period of 2020[44] - The finance costs for the six months ended September 30, 2021, were HKD 217,000, compared to HKD 133,000 in 2020, reflecting a 63.0% increase[46] - Administrative expenses decreased by approximately HKD 3,300,000 or 20.0%, from HKD 16,700,000 to HKD 13,400,000, primarily due to the sale of a majority stake in a subsidiary[96] - Financial expenses increased by approximately HKD 100,000 or 63.2%, from HKD 100,000 to HKD 200,000, mainly due to increased interest expenses on short-term loans[97] Strategic Focus and Outlook - The company is focusing on expanding its market presence and exploring new strategies for growth, although specific details were not disclosed in the report[5] - Future outlook remains cautiously optimistic, with management indicating potential for further revenue growth and operational improvements[5] - The group is focused on maintaining its market position and exploring new strategies for growth and expansion in its operating segments[28] - The company aims to enhance its market presence through strategic investments and partnerships in the construction and engineering sectors[42] - The group plans to continue developing its lending business despite increased competition and uncertainty in the market[118] Governance and Compliance - The company has adopted a code of conduct for directors' securities transactions, with no reported transactions during the reporting period[139] - The company has maintained compliance with corporate governance codes, enhancing transparency and accountability to shareholders[140] - Ernst & Young served as the auditor for over seven years and will be replaced by Tianzhi Hong Kong CPA Limited following the annual general meeting[141] - The audit committee has been established in accordance with GEM Listing Rules, consisting of three independent non-executive directors[143] - The unaudited interim results for the six months ended September 30, 2021, have been reviewed by the audit committee members[143]

Financial Performance - For the first quarter ended June 30, 2021, the company reported revenue of HKD 74,034,000, a decrease of 5.1% compared to HKD 78,433,000 in the same period of 2020[5]. - The gross profit for the first quarter was HKD 11,346,000, representing a gross margin of approximately 15.3%[5]. - The net profit attributable to shareholders for the period was HKD 2,439,000, significantly up from HKD 545,000 in the previous year, marking a year-over-year increase of 347.9%[7]. - The total comprehensive income for the period was HKD 1,960,000, compared to HKD 545,000 in the same period last year, indicating a substantial increase[7]. - Basic and diluted earnings per share for the period were both HKD 0.0135, compared to HKD 0.0029 in the previous year[5]. - The group reported a total income of HKD 74,034,000 for the three months ended June 30, 2021, compared to HKD 78,433,000 in the same period of 2020, reflecting a decrease of 5.6%[21]. - The group’s financial expenses totaled HKD 202,000 for the three months ended June 30, 2021, compared to HKD 17,000 in the same period of 2020, showing a significant increase[29]. - The group’s interest income for the three months ended June 30, 2021, was HKD 72,000, a decrease from HKD 401,000 in the same period of 2020, representing a decline of 82.0%[25]. - The group’s other income and gains totaled HKD 225,000 for the three months ended June 30, 2021, down from HKD 446,000 in the same period of 2020, reflecting a decrease of 49.6%[25]. - The company reported a profit attributable to ordinary shareholders of HKD 2,702,000 for the three months ended June 30, 2021, compared to HKD 588,000 for the same period in 2020, representing an increase of approximately 359%[33]. - Total revenue for the group was approximately HKD 74,035,000, a decrease of about 6% compared to HKD 78,433,000 for the three months ended June 30, 2020[47]. - Revenue from the construction segment was approximately HKD 68,104,000, down about 11% from HKD 76,767,000 in the same period last year[47]. - The group incurred engineering contract costs of HKD 62,688,000 for the three months ended June 30, 2021, down from HKD 70,541,000 in the same period of 2020, indicating a reduction of 11.1%[27]. - The net rental income for the group was a loss of HKD 142,000 for the three months ended June 30, 2021, compared to a loss of HKD 15,000 in the same period of 2020[27]. - The group’s employee benefits expenses, including directors' remuneration, amounted to HKD 7,550,000 for the three months ended June 30, 2021, compared to HKD 7,119,000 in the same period of 2020, an increase of 6.1%[27]. - Gross profit increased from approximately HKD 7,900,000 to about HKD 11,300,000, representing an increase of approximately HKD 3,400,000 or 43%[62]. - The gross profit margin for the reporting period was approximately 15%, up 5 percentage points from the previous reporting period's margin of about 10%[64]. - Administrative expenses increased by approximately HKD 1,100,000 or 18%, to about HKD 9,000,000, primarily due to increased employee costs[66]. - Financial expenses rose by approximately HKD 185,000 or 1,071%, to about HKD 202,000, mainly due to increased interest expenses on short-term loans[67]. Business Segments - The construction business segment generated revenue of HKD 60,263,000 from external customers in Hong Kong, down from HKD 66,717,000 in the previous year, representing a decline of 10.9%[19]. - The securities investment segment recorded revenue of approximately HKD 5,525,000, an increase of about 267% from HKD 1,506,000 for the same period in 2020[47]. - Revenue from property investment was approximately HKD 153,000, a significant increase of about 665% compared to HKD 20,000 in the same period last year[47]. - The lending business generated revenue of approximately HKD 252,000, an increase of about 80% from HKD 140,000 for the same period in 2020[56]. Corporate Governance and Compliance - The company is committed to maintaining transparency and accuracy in its financial reporting, adhering to the GEM listing rules[4]. - The company has adopted the corporate governance code as per GEM listing rules and has generally complied with it during the reporting period[109]. - The audit committee consists of three independent non-executive directors, responsible for reviewing financial controls and risk management[110]. - The company aims to enhance transparency and accountability to shareholders through high standards of corporate governance[107]. - The group is committed to complying with additional requirements imposed on certain work license categories to maintain its qualifications as an approved contractor and supplier[80]. Future Strategies and Market Position - The company continues to focus on its core business activities, including construction and property investment, while exploring opportunities in securities investment and lending[11]. - Future strategies may include market expansion and potential new product developments, although specific details were not disclosed in the report[11]. - The group aims to continue balancing its construction business development in the Greater China region, adopting a prudent strategy for project bidding[77]. - The group aims to enhance its market position in Hong Kong by attracting larger corporate clients and bidding for capital-intensive projects, driven by an upward trend in overall building and construction expenditure[80]. - The group plans to apply for more necessary licenses and qualifications to expand its service scope and will continue to selectively undertake new contracts[81]. Investments and Financial Management - The group has established a Treasury Management Committee to execute investment policies and aims to generate additional investment returns despite global market uncertainties[83]. - The group holds approximately HKD 26,000,000 in equity and debt investments, with significant investments in various companies, including HKD 7,140,000 in Hong Kong Education (International) Investment Group[87]. - The group generated net proceeds of approximately HKD 3,000,000 from the sale of listed securities, with total sales proceeds amounting to HKD 13,000,000 during the reporting period[91]. - The board will adopt prudent measures to manage the investment portfolio in light of recent market volatility and instability, aiming for positive short-term returns[91]. - The group will continue to review its investment property portfolio in response to the recent economic environment's instability[84]. Shareholder Information - The company did not recommend any interim dividend for the reporting period[37]. - The weighted average number of ordinary shares in issue for calculating basic earnings per share was 200,000,000 for both 2021 and 2020[36]. - The company completed a share consolidation on April 28, 2021, reducing the number of shares from 4,000,000,000 to 800,000,000[36]. - As of June 30, 2021, Energy Luck Limited holds 23,978,816 shares, representing 11.99% of the company's issued share capital[100]. - No share options were granted during the reporting period, and there were no unexercised share options as of June 30, 2021[96]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[106]. - There were no shareholdings or interests recorded by directors or senior management in the company or its affiliates as of June 30, 2021[98]. - The maximum number of share options that can be granted under the share option scheme is limited to 10% of the issued shares at any time[94]. - No major shareholders or other individuals, apart from directors, held any interests in the company's shares that required disclosure as of June 30, 2021[102].

Financial Performance - The company recorded revenue of approximately HKD 617.8 million for the year, a decrease of about 2% compared to HKD 627.5 million for the previous year[17]. - The construction segment generated revenue of approximately HKD 606.1 million, down about 3% from HKD 626.4 million in the prior year[17]. - The securities investment segment saw a significant increase in revenue to approximately HKD 10.3 million, up about 1,299% from HKD 0.7 million in the previous year[17]. - The property investment segment reported revenue of approximately HKD 200,000, a decrease of about 54% from HKD 400,000 in the prior year[17]. - The lending business segment's revenue increased to approximately HKD 1.1 million, up about 2,068% from HKD 53,000 in the previous year[17]. - The company achieved a net profit attributable to shareholders of approximately HKD 9.9 million, compared to a net loss of HKD 3.2 million in the previous year[17]. - The group recorded revenue of approximately HKD 617,771,000, a decrease of about 2% compared to HKD 627,526,000 for the year ended March 31, 2020[24]. - The construction segment generated revenue of approximately HKD 606,141,000, down about 3% from HKD 626,366,000 for the previous year[24]. - The securities investment segment reported revenue of approximately HKD 10,311,000, an increase of approximately 1,299% from HKD 737,000 for the previous year[24]. - The property investment segment's revenue was approximately HKD 170,000, a decrease of about 54% from HKD 370,000 for the previous year[24]. - The lending segment recorded revenue of approximately HKD 1,149,000, an increase of approximately 2,068% from HKD 53,000 for the previous year[24]. - The group’s gross profit increased by approximately HKD 14,000,000 or 40% to about HKD 48,900,000, with a gross margin of approximately 7.9%, up from 5.6%[41]. - Other income and gains increased by approximately HKD 1,900,000 or 73% to about HKD 4,500,000, mainly due to government subsidies received during the period[42]. - Administrative expenses rose by approximately HKD 5,800,000 or 15.4% to about HKD 43,400,000, primarily due to increased depreciation and other expenses[43]. - Financial expenses increased by approximately HKD 500,000 or 195% to about HKD 700,000, mainly due to increased interest expenses on short-term loans[45]. - Basic earnings per share were HKD 0.0493, compared to a loss of HKD 0.0161 per share for the previous year[35]. - As of March 31, 2021, the group's cash and cash equivalents amounted to approximately HKD 61,969,000, a decrease from HKD 107,689,000 in 2020[47]. - The total assets of the group as of March 31, 2021, were approximately HKD 390,125,000, compared to HKD 388,034,000 in 2020[47]. - The group's capital expenditure during the reporting period totaled approximately HKD 30,045,000, an increase from HKD 20,151,000 in 2020[48]. Business Operations - The company anticipates continued challenges in the Hong Kong construction market but aims to enhance its market position through strong relationships with clients and suppliers[18]. - The company is exploring growth opportunities in China, Hong Kong, and other regions to drive long-term financial returns for shareholders[19]. - The management emphasizes the importance of quality engineering and services in building the company's reputation and market competitiveness[18]. - The company is positioned to benefit from government initiatives promoting the adoption of Modular Integrated Construction (MIC) and infrastructure improvements related to COVID-19[18]. - The total contract value of projects on hand exceeded HKD 1,150,000,000, indicating strong business activity[57]. - The group has secured multiple new projects, including residential developments and contracts with various government departments in Hong Kong[57]. - The group is actively seeking investment opportunities in listed securities and other financial products to generate additional income[61]. - The group completed the acquisition of a commercial property with a total usable floor area of approximately 1,095 square feet for HKD 15,000,000[63]. - The group held approximately HKD 28,900,000 in equity and debt investments at fair value through profit or loss as of March 31, 2021[67]. - The major equity investments include Hong Kong Education (International) Investment Group with a fair value of HKD 2,812,000 and a market value of HKD 5,964,000, representing 20.6% of the group's net asset value[67]. - The group reported a net gain of approximately HKD 6,700,000 from the sale of certain investments in listed securities, with total proceeds of about HKD 43,800,000[70]. - The group has no significant plans for major investments or capital assets as of March 31, 2021[70]. - There were no significant acquisitions or disposals of subsidiaries and associates during the year ended March 31, 2021[71]. - The total employee benefits expenses for the reporting period amounted to approximately HKD 33,000,000, a decrease from HKD 34,000,000 in the previous year[74]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors[84]. - The company has adopted a board diversity policy to enhance performance quality through a balanced mix of skills, knowledge, and experience[84]. - The board held four meetings during the review period, with all directors attending all meetings[96]. - The company secretary received no less than 15 hours of relevant professional training during the fiscal year ending March 31, 2021[95]. - The board is responsible for establishing and reviewing corporate governance policies and practices[80]. - Independent non-executive directors provide independent judgment and contribute positively to the company's strategy and policy formulation[88]. - The company has appropriate insurance arrangements for legal actions against the board[83]. - All directors are required to retire and be re-elected by shareholders at least once every three years[90]. - The company ensures that all directors receive comprehensive and formal training upon appointment[91]. - The board has a formal, prudent, and transparent procedure for the appointment and succession planning of directors[89]. - The company held its annual general meeting on August 20, 2020, chaired by Executive Director Liu Baoyi to ensure effective communication with shareholders[101]. - The Audit Committee reviewed the unaudited quarterly results, interim results, and annual results during the reporting period, confirming compliance with applicable accounting standards[108]. - The Audit Committee held four meetings during the review period to assess financial performance and compliance procedures[111]. - The Remuneration Committee reviewed the remuneration schemes for directors and senior management, ensuring transparency and competitiveness in compensation policies[114]. - The company has established four committees under the Board of Directors: Audit Committee, Remuneration Committee, Nomination Committee, and Internal Control Committee, each with defined responsibilities[107]. - The company ensures that all directors can dedicate sufficient time and effort to manage the business and regularly disclose their commitments[100]. - The roles of the Chairman and CEO are clearly defined and separated to maintain a balance of power and authority within the company[102]. - The Audit Committee consists of three independent non-executive directors, including one with relevant professional qualifications in accounting or financial management[108]. - The company provides adequate resources to the Audit Committee to fulfill its responsibilities effectively[111]. - The Remuneration Committee met on June 22, 2020, to review the remuneration schemes for directors and senior management, making recommendations to the Board[114]. - The Nomination Committee held a meeting on June 22, 2020, to review the structure, size, and composition of the Board of Directors[118]. - The committee ensures that at least one-third of the Board members meet the definition of independent non-executive directors, in accordance with GEM listing rules[123]. - The committee evaluates candidates based on their judgment, commitment to enhancing shareholder value, and ability to provide practical insights and diverse perspectives[122]. - The committee has adopted policies to assist in fulfilling its duties and responsibilities, which can be revised as necessary[119]. - The committee considers all candidates recommended by any director or shareholder, ensuring compliance with the company's articles of association and GEM listing rules[120]. - The committee reviews the effectiveness of the internal control system and risk management processes during its meetings[133]. - The committee assesses the independence of independent non-executive directors annually, considering potential conflicts of interest[123]. - The committee's conclusion was that the composition of the Board should remain unchanged[131]. - The committee can engage professional firms to assist in identifying and evaluating potential nominees[124]. Shareholder Relations - The company will issue an independent Environmental, Social, and Governance report within three months of the annual report publication date[137]. - The board has adopted a dividend policy allowing shareholders to share in the company's profits while reserving sufficient reserves for future development[140]. - The total fees paid to the external auditor, Ernst & Young, during the reporting period amounted to HKD 1,691,000, with HKD 1,600,000 for audit services and HKD 91,000 for non-audit services[146]. - The company has established a risk management and internal control system in compliance with the corporate governance code, with no significant risks identified during the reporting period[150][153]. - The internal audit department, composed of qualified professionals, conducts evaluations of the risk management and internal control systems every six months, with results reported to the board[161]. - The board is responsible for ensuring the effectiveness of the risk management and internal control systems, which are designed to manage rather than eliminate risks[162]. - The company maintains an open and effective investor relations policy, providing timely updates to investors and holding briefings for institutional investors and analysts[164]. - Shareholders can submit inquiries and suggestions to the board, with contact details provided for communication[165]. - The company has established a shareholder communication policy to ensure balanced and timely information dissemination to shareholders and investors[171]. - The board can convene a special meeting upon request from shareholders holding at least 10% of the company's paid-up capital[169]. - The upcoming annual general meeting will utilize a voting process to ensure shareholder participation[166]. - The company’s charter documents have not undergone significant changes during the review period[170]. - The board of directors includes experienced members with backgrounds in finance, management, and corporate governance[174][176][179]. - The company emphasizes the importance of communication between shareholders and the board during the annual general meeting[166]. - Independent resolutions regarding important matters, including the election of individual directors, will be proposed at the annual general meeting[167]. - The company’s website serves as a communication platform for the public and investors to access the latest information[164]. Company Identity - The company changed its name from "Deson Construction International Holdings Limited" to "Smart City Development Holdings Limited" as approved on August 20, 2020[190]. - The company operates primarily in the construction industry, focusing on building construction, electromechanical engineering, and renovation projects in Hong Kong, mainland China, and Macau[191]. - The company did not recommend any final dividend for the reporting period, consistent with the previous year[196]. - The company’s subsidiaries are involved in investment in listed securities, property investment, and lending business[191]. - The company’s financial performance and position as of March 31, 2021, are detailed in the consolidated financial statements[195]. - The company’s property, plant, and equipment, as well as investment properties, underwent changes during the year, with details provided in the financial statements[198]. - The company’s share capital remained unchanged during the reporting period[200]. - The annual general meeting is scheduled for August 20, 2021, with a suspension of share transfer registration from August 17 to August 20, 2021[194]. - The board of directors includes experienced professionals with extensive backgrounds in construction and finance[186][187]. - The company is committed to maintaining compliance with GEM listing rules and corporate governance standards[187].

Financial Performance - For the nine months ended December 31, 2020, the company's revenue was HKD 310,219,000, a decrease of 38.8% compared to HKD 507,714,000 for the same period in 2019[5] - The gross profit for the nine months was HKD 20,777,000, down 33.7% from HKD 31,235,000 in the previous year[5] - The company reported a loss before tax of HKD 1,122,000 for the nine months, compared to a profit of HKD 5,245,000 in the same period of 2019[5] - The net loss attributable to the owners of the company for the nine months was HKD 1,727,000, compared to a profit of HKD 3,736,000 in 2019[5] - Basic loss per share for the nine months was HKD 0.17, down from earnings of HKD 0.37 per share in the previous year[5] - The company recorded total administrative expenses of HKD 25,383,000 for the nine months, a decrease of 10.3% from HKD 28,323,000 in 2019[5] - Other income and gains for the nine months were HKD 4,007,000, significantly higher than HKD 1,633,000 in the previous year[5] - The financial costs for the nine months were HKD 513,000, compared to HKD 201,000 in the previous year, indicating an increase in financial expenses[5] - The effective tax rate for the nine months ended December 31, 2020, remained at 16.5%, consistent with the previous year[37] Revenue Breakdown - The company experienced a significant decline in revenue for the third quarter, reporting HKD 123,180,000 compared to HKD 200,756,000 in the same quarter of 2019, a decrease of 38.6%[5] - The construction business segment generated revenue of HKD 121,593,000 for the three months ended December 31, 2020, while the securities investment segment contributed HKD 1,533,000[23] - The total revenue from the construction segment for the nine months ended December 31, 2020, was HKD 307,033,000, compared to HKD 5,396,000 from the securities investment segment[23] - Customer contract revenue for the three months ended December 31, 2020, was HKD 121,593,000, a decrease of 37.2% compared to HKD 193,901,000 in the same period of 2019[29] - The revenue from building construction projects for the three months ended December 31, 2020, was HKD 15,826,000, a decline of 83.0% from HKD 93,182,000 in 2019[31] - The revenue from mechanical and electrical engineering for the three months ended December 31, 2020, increased to HKD 49,320,000, up 124.4% from HKD 22,049,000 in 2019[31] - The construction segment generated revenue of approximately HKD 303,927,000, down approximately 40% from HKD 503,888,000 in the previous year[51] - The securities investment segment recorded revenue of approximately HKD 5,396,000, an increase of about 53% from HKD 3,516,000 in the prior year[51] - The property investment segment's revenue was approximately HKD 40,000, a decrease of about 87% from approximately HKD 310,000 in the same period last year[51] - The lending business generated revenue of approximately HKD 856,000, whereas there was no revenue in the same period last year[51] Strategic Initiatives - The company is focusing on strategic initiatives to improve operational efficiency and explore new market opportunities moving forward[5] - The group aims to attract larger corporate clients and diversify its customer base, leveraging its strong track record and expertise in general contracting[85] - The group will continue to adopt a prudent bidding strategy for new construction contracts[85] - The group is actively seeking investment opportunities in listed securities and other financial products to generate additional income[86] - The group believes that its lending business will have a positive impact and return despite increased competition in the market[89] - The group is committed to expanding its construction business in Hong Kong and Macau[82] - The group plans to recruit more qualified and experienced staff to strengthen its construction division[85] Corporate Governance - The company has established an audit committee to review and supervise financial controls, internal controls, and risk management systems[115] - The company has adopted the corporate governance code as per GEM listing rules to enhance transparency and accountability to shareholders[114] - The audit committee is composed of three independent non-executive directors[115] - The company is committed to maintaining high standards of corporate governance to enhance confidence among stakeholders[114] - The board of directors consists of executive directors and independent non-executive directors, ensuring independence in business operations[117] Acquisitions and Investments - The company completed the acquisition of an industrial property with a total saleable floor area of approximately 3,565 square feet for HKD 14,700,000[117] - The company also completed the acquisition of a commercial property with a total saleable floor area of approximately 1,095 square feet for HKD 15,000,000[117] - The group generated approximately HKD 28,800,000 from the sale of listed securities, with realized gains of about HKD 2,700,000 during the nine months ended December 31, 2020[95] - The investment in Hong Kong Education (International) Investment Group Limited yielded proceeds of HKD 2,868,000 and realized gains of HKD 991,000[95] - The net asset value of Hong Kong Education (International) Investment Group Limited was approximately HKD 107,949,000 as of June 30, 2020[1] - The net asset value of 恒達科技控股有限公司 was approximately RMB 598,224,000 as of June 30, 2020[3] - The net asset value of 恒新豐控股有限公司 was approximately HKD 232,443,000 as of June 30, 2020[1] Shareholder Information - The company has not issued any share options during the reporting period, and there were no unexercised options as of December 31, 2020[100] - The maximum number of unexercised share options that can be granted under the share option scheme is capped at 10% of the issued shares at any time[96] - Energy Luck Limited, controlled by Mr. Wang Ju Cheng, holds 167,302,082 shares, representing 16.73% of the company's issued share capital[103] - There were no other significant interests or short positions in the company's shares or related securities as of December 31, 2020[104] - No directors traded the company's securities during the reporting period[112] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ending December 31, 2020[113] Financial Position - As of December 31, 2020, the group's cash and cash equivalents amounted to HKD 170,265,000, up from HKD 107,689,000 as of March 31, 2020[72] - The group has no significant contingent liabilities as of the reporting period end[74] - The total contract amount on hand exceeds HKD 1,378,000,000[83] - The group holds financial assets at fair value amounting to approximately HKD 35,976,000 as of December 31, 2020[91]

Financial Performance - For the six months ended September 30, 2020, the company reported revenue of HKD 187,039,000, a decrease of 39.0% compared to HKD 306,957,000 for the same period in 2019[6] - The gross profit for the same period was HKD 16,675,000, representing a slight decrease of 1.7% from HKD 16,955,000 in 2019[6] - The net profit attributable to owners of the company for the six months was HKD 3,872,000, compared to a loss of HKD 1,153,000 in the previous year[6] - Basic earnings per share for the period was HKD 0.39, compared to a loss per share of HKD 0.12 in the same period last year[8] - The company's pre-tax profit for the six months ended September 30, 2020, was HKD 3,793,000, compared to HKD 274,000 for the same period in 2019, representing a significant increase[21] - The total revenue for the six months ended September 30, 2020, was HKD 187,039,000, down from HKD 306,957,000 in the same period of 2019, representing a decrease of about 39%[34] - The basic earnings per share for the six months ended September 30, 2020, was HKD 0.39[100] Assets and Liabilities - The company's total assets as of September 30, 2020, amounted to HKD 477,250,000, an increase from HKD 440,034,000 as of March 31, 2020[14] - Current assets increased to HKD 377,164,000 from HKD 340,379,000, primarily due to an increase in receivables[14] - The total liabilities as of September 30, 2020, were HKD 322,679,000, compared to HKD 289,852,000 as of March 31, 2020[14] - The company’s equity attributable to owners increased to HKD 110,142,000 from HKD 106,181,000[16] - As of September 30, 2020, accounts receivable amounted to HKD 58,674,000, down from HKD 76,092,000 as of March 31, 2020, reflecting a decrease of approximately 23%[65] - Financial assets at fair value through profit or loss totaled HKD 34,862,000 as of September 30, 2020, compared to HKD 32,226,000 as of March 31, 2020, indicating an increase of approximately 8%[72] Cash Flow and Financing - Cash flow from operating activities for the six months ended September 30, 2020, was HKD 21,348,000, down from HKD 91,514,000 in the previous year[23] - The total cash and cash equivalents at the end of the period was HKD 140,875,000, an increase from HKD 117,779,000 at the end of the same period last year[23] - The company reported a net cash inflow from financing activities of HKD 10,746,000 for the six months ended September 30, 2020, compared to a net outflow of HKD 38,431,000 in the previous year[23] - The company’s interest income for the six months ended September 30, 2020, was HKD 1,403,000, up from HKD 548,000 in the previous year[21] - The group recorded unrealized gains of approximately HKD 2,034,000 from changes in fair value of listed equity investments and fund investments during the reporting period[97] Operational Performance - The company is focusing on expanding its market presence and enhancing its operational efficiency through strategic initiatives[8] - The company plans to continue monitoring its operational segments closely to make informed resource allocation and performance evaluation decisions moving forward[30] - The group maintained a current ratio of 1.17 as of September 30, 2020, consistent with the previous period[111] - The group plans to continue a prudent bidding strategy for construction projects to address challenges in the construction and engineering industry[121] - The group aims to enhance its market position in Hong Kong by attracting larger corporate clients and bidding for more capital-intensive projects[124] Segment Performance - The engineering and related business segment generated revenue of HKD 105,567,000 for the three months ended September 30, 2020, compared to HKD 180,763,000 in the same period of 2019, indicating a decrease of about 41.6%[32] - The property investment segment recorded a loss of HKD 139,000 for the three months ended September 30, 2020, compared to a profit of HKD 71,000 in the same period of 2019[36] - The construction segment generated revenue of approximately HKD 182,334,000, down 41% from HKD 309,986,000 in the previous year[91] - The electromechanical engineering segment generated revenue of approximately HKD 79,719,000, a significant increase of about 47% from HKD 54,214,000 in the previous year[94] Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance confidence among shareholders, investors, employees, creditors, and business partners[155] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the group's financial controls and risk management systems[156] - The board of directors consists of executive directors Hong Junyi and Liu Baoyi, and independent non-executive directors Huang Yulin, Lin Weihong, and Qu Ruiming[157] Employee and Shareholder Information - As of September 30, 2020, the group had 93 employees, with total employee benefit expenses amounting to approximately HKD 10,040,000, a decrease from HKD 10,434,000 in the same period of 2019, primarily due to reduced director remuneration[137] - The board of directors did not recommend any interim dividend for the six months ended September 30, 2020, consistent with the previous period[54] - Energy Luck Limited, a company wholly owned by Mr. Wang Ju Cheng, holds 167,302,082 shares, representing 16.73% of the company's issued share capital[145]