Financial Performance - Revenue for the three months ended June 30, 2019, was HKD 126,648,000, a decrease of 28.4% compared to HKD 177,040,000 in the same period of 2018[6] - Gross profit for the same period was HKD 5,773,000, significantly up from HKD 1,828,000 in 2018, indicating a gross margin improvement[6] - The company reported a loss before tax of HKD 2,804,000, an improvement from a loss of HKD 5,892,000 in the previous year[6] - The net loss for the period was HKD 2,804,000, compared to a net loss of HKD 5,856,000 in the same quarter of 2018[6] - Basic loss per share was HKD 0.31, improved from HKD 0.59 in the previous year[6] - Total comprehensive loss for the period was HKD 2,639,000, compared to HKD 6,771,000 in the same period last year[8] - The group recorded a loss before tax of HKD 2,804,000 for the three months ended June 30, 2019, compared to a loss of HKD 5,892,000 in the same period of 2018, indicating an improvement[28] - The company reported a basic loss attributable to ordinary shareholders of HKD (3,057,000) for the three months ended June 30, 2019, compared to a loss of HKD (5,879,000) for the same period in 2018[36] Revenue Breakdown - For the three months ended June 30, 2019, the group reported external customer revenue of HKD 126,648,000, a decrease of 28.4% from HKD 177,040,000 in the same period of 2018[17] - The construction segment generated revenue of HKD 129,224,000, down from HKD 179,476,000, reflecting a decline of 28% year-on-year[20] - The property investment segment saw a significant increase in revenue, reporting approximately HKD 138,000, up 245% from approximately HKD 40,000 in the same period last year[51] - The revenue for the electromechanical engineering segment was approximately HKD 17,462,000, a significant decrease of about 67% compared to HKD 53,610,000 in the same period last year[54] - The revenue for the renovation engineering segment was approximately HKD 74,426,000, down 23% from HKD 96,949,000 year-on-year[55] - The group's total revenue for the three months ended June 30, 2019, was approximately HKD 127,000,000, a decrease of about 28% compared to the previous year[63] Expenses and Costs - Administrative expenses increased to HKD 8,746,000 from HKD 7,139,000 in 2018, reflecting higher operational costs[6] - The group’s employee benefits expenses, including directors' remuneration, increased to HKD 5,052,000 from HKD 4,186,000, representing a rise of 20.7%[28] - The construction costs for the period were HKD 120,875,000, down from HKD 175,212,000, showing a decrease of 30.9%[28] - The group’s depreciation expense for the period was HKD 192,000, compared to HKD 263,000 in the previous year, a reduction of 27%[28] - Financial expenses decreased by approximately 81% to HKD 200,000 from HKD 900,000 year-on-year, due to the redemption of convertible bonds[68] Strategic Focus and Future Plans - The company continues to focus on construction and related services in Hong Kong, mainland China, and Macau[12] - The financial results indicate a strategic shift towards improving operational efficiency and reducing losses[6] - The group plans to expand its business capabilities and scope to strengthen its market position in Hong Kong[79] - The group aims to attract larger corporate clients and diversify its customer base through prudent bidding strategies[79] - The group will continue to apply for necessary licenses and qualifications to expand its service scope[80] - The group plans to recruit more qualified and experienced staff to enhance its construction division[80] - The group will adopt prudent measures to manage its investment portfolio in light of recent market volatility[82] Corporate Governance - The company has established an audit committee to review and supervise financial controls and risk management systems[102] - The audit committee consists of three independent non-executive directors[102] - The company is committed to maintaining high standards of corporate governance to enhance stakeholder confidence[100] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15[100] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[103] Shareholder Information - As of June 30, 2019, major shareholder Energy Luck Limited holds 361,302,082 shares, representing 36.13% of the company's issued share capital[95] - Mr. Wang Jucheng is the beneficial owner of Energy Luck Limited, which is a company registered in the British Virgin Islands[95] - Mr. Wang Jucheng and Mr. Guo Guankang each resigned as executive directors on July 29, 2019[92] - As of June 30, 2019, no interests or short positions in the company's shares were reported by directors or senior management[93] Investment Activities - The company completed the acquisition of a property holding group for HKD 19,500,000, with the transaction finalized on August 6, 2019[48] - The group has sold part of its investments in listed securities, generating proceeds of approximately HKD 18,900,000 with a recognized loss of HKD 2,700,000[85] - The group has acquired two properties for a total consideration of HKD 19,500,000, located in Wan Chai, Hong Kong[83] Other Financial Metrics - Other comprehensive income included a foreign exchange gain of HKD 165,000, compared to a loss of HKD 915,000 in 2018[8] - The group’s interest income increased significantly to HKD 243,000 from HKD 46,000, marking a growth of 428.3%[23] - The group’s other income and gains totaled HKD 88,000, down from HKD 182,000, reflecting a decrease of 51.1%[23] - Other income rose by approximately 45% to HKD 300,000, up from HKD 200,000 year-on-year, mainly due to increased interest income from fixed deposits[66] - The interest expense on bank loans and overdrafts increased to HKD 171,000 for the three months ended June 30, 2019, compared to HKD 47,000 in the previous year[32] - The interest expense on convertible bonds decreased to HKD 172,000 from HKD 902,000 year-over-year[32] - The diluted loss per share was calculated based on a weighted average of 1,000,000,000 shares for both periods[41] - The stock option plan allows for the issuance of up to 80,000,000 options, representing approximately 8% of the company's issued shares as of June 30, 2019[86]

Financial Performance - For the fiscal year ending March 31, 2019, the group recorded a revenue of approximately HKD 645.8 million, a decrease of about 18% compared to HKD 792 million for the fiscal year ending March 31, 2018[18]. - The construction business segment generated revenue of approximately HKD 651.1 million, down 13% from HKD 748.7 million in the previous year[18]. - The securities investment segment reported a loss of approximately HKD 5.7 million, a decline of 113% from a profit of HKD 43.3 million in the prior year[18]. - The group recorded a net loss attributable to the owners of the company of approximately HKD 14.9 million for the fiscal year ending March 31, 2019[18]. - The overall financial performance reflects challenges faced in both construction and investment segments, necessitating strategic adjustments moving forward[18]. - The gross profit decreased significantly from approximately HKD 85,300,000 to about HKD 19,800,000, representing a decline of approximately 77%[43]. - The gross profit margin for the year was approximately 3.1%, down from 10.8% in the previous year, a decrease of 7.7 percentage points[43]. - Other income and gains increased by approximately 162% to about HKD 3,400,000, primarily due to the recovery of bad debts from a liquidated client[44]. - The company incurred a net loss attributable to owners of approximately HKD 14,917,000 for the year, compared to a profit of HKD 38,831,000 in the previous year[35]. Business Strategy and Operations - The company plans to adopt a more prudent approach in project selection, focusing on reputable contractors and excellent business partners to ensure project stability and secure receivables[19]. - The group intends to enhance its project selection criteria in the upcoming year to mitigate core challenges in the construction industry[19]. - The group aims to stabilize its project portfolio and receivables through strategic partnerships in the construction sector[19]. - The company plans to expand its business capabilities and scope to strengthen its market position in Hong Kong, targeting larger and more profitable projects[64]. - The company will continue to adopt a prudent strategy in project bidding to address challenges in the construction and engineering industry[61]. - The company is optimistic about the long-term prospects of the construction industry in Hong Kong, despite facing short-term challenges[63]. Investment Activities - The company is undergoing a significant share acquisition, with Energy Luck Limited set to become the controlling shareholder after acquiring approximately 31.18% of the issued shares[17]. - The group has diversified its business and increased resources in property investment due to market volatility, acquiring properties for HKD 8,500,000 and HKD 10,300,000 in 2018[21][22]. - The property investment segment earned revenue of approximately HKD 454,000 during the reporting period[26]. - The company has completed the acquisition of two properties in prime locations for a total consideration of HKD 19,500,000, expected to enhance its investment portfolio and market position[69]. - The company will continue to seek investment opportunities in listed securities and other financial products to generate additional income[68]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules and has generally complied with it during the review period from April 1, 2018, to March 31, 2019[86]. - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[92]. - The company has established a formal and transparent procedure for the appointment and succession planning of directors, with all directors subject to re-election at least every three years[98]. - The company emphasizes the importance of diversity on the board to enhance performance quality[93]. - Independent non-executive directors play a crucial role in providing independent judgment on strategy, policy, and performance[97]. - The company has insurance arrangements for legal actions against the board and indemnity for directors arising from company affairs[91]. Risk Management and Internal Controls - The company has established a risk management system to identify, assess, and manage risks related to its business operations[159]. - The internal control system is designed in accordance with the COSO 2013 framework to ensure operational effectiveness and compliance with applicable laws[163]. - The board is responsible for the effectiveness review of the risk management and internal control systems annually, considering changes in significant risks and the group's response capabilities[175]. - The company has not identified any significant deficiencies in internal controls during the review period[173]. - The internal audit department is composed of qualified professionals and operates independently to assess risk management and internal control systems[174]. Employee and Management Information - Employee benefit expenses for the year ended March 31, 2019, totaled approximately HKD 34,200,000, reflecting an increase from HKD 33,600,000 in the previous year[81]. - The group has 115 employees as of March 31, 2019, with 46 based in China[81]. - The executive directors have extensive experience in their respective fields, with the CEO having over 37 years in civil and structural engineering[188]. - Mr. Xie has over 36 years of experience in the construction industry in China and Hong Kong, serving as the chairman and non-executive director since December 2014[194]. - Mr. Wang has over 19 years of experience in auditing and accounting, currently serving as a non-executive director since December 2015[196]. - Mr. Li has over 39 years of experience in the banking industry, serving as an independent non-executive director since December 2014[198]. - Mr. Zhang has over 23 years of experience in the securities industry, serving as an independent non-executive director since December 2014[198]. Shareholder Communication - The company maintains an open and effective investor relations policy, providing timely updates to investors and holding briefings for institutional investors and analysts[177]. - Shareholders can submit inquiries or suggestions to the board through the company secretary, ensuring communication channels are open[178]. - The company has established a shareholder communication policy to provide balanced and easily understandable information to shareholders and investors[185]. - The board can convene a special general meeting within 21 days upon request from shareholders holding at least 10% of the company's paid-up capital[183].

进 臣 迪臣建設國際集團有限公司 Deson Construction International Holdings Limited ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) 股份代號：8268 第 三 季 度 業 績 報 告 2018 香港聯合交易所有限公司（「聯交所」）GEM的特色 二零一八年第三季度業績報告 2 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的公司提 供一個上市的市場。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。GEM的較高風險及其他特色表示GEM較 適合專業及其他老練投資者。 由於GEM上市公司新興的性質所然，在GEM買賣的證券可能會較於聯交所主板 買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流 通量的市場。 香港交易及結算所有限公司以及香港聯合交易所有限公司對本報告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或 任何部分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。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）之規定 ...