Financial Performance - For the three months ended June 30, 2023, the company reported revenue of HKD 257,445,000, an increase of 15.3% compared to HKD 223,331,000 for the same period in 2022[5] - The gross profit for the same period was HKD 19,102,000, slightly down from HKD 19,239,000 in 2022, resulting in a gross margin of 7.4%[5] - The company recorded a profit attributable to owners of HKD 2,071,000, a decrease of 46.5% from HKD 3,879,000 in the previous year[5] - Basic and diluted earnings per share were HKD 0.35, down from HKD 0.65 in the same quarter of 2022[5] - The group's gross profit decreased from approximately HKD 19,239,000 to about HKD 19,102,000, a decline of approximately HKD 137,000 or 0.7%[30] - The gross profit margin fell from 8.6% to 7.4%, a decrease of about 1.2%[30] - The company reported other income of HKD 423,000, significantly lower than HKD 1,188,000 in the previous year[16] - Other income decreased from approximately HKD 1,188,000 to about HKD 423,000, primarily due to the absence of government subsidies received in the previous period[31] - The company incurred total employee costs of HKD 212,273,000, up from HKD 182,695,000 in 2022, reflecting an increase of 16.2%[20] - The current tax expense for the period was HKD 2,753,000, compared to HKD 1,521,000 in 2022, marking an increase of 80.9%[19] Revenue Breakdown - Revenue from street cleaning solutions increased to HKD 209,493,000, up 21.8% from HKD 171,913,000 in 2022[15] - Revenue from building cleaning solutions decreased to HKD 21,825,000, down 9.0% from HKD 24,160,000 in 2022[15] - The income from cleaning solutions services was approximately HKD 254,700,000, representing a 15.3% increase from HKD 220,800,000 in the same period of 2022[24] Expenses and Costs - Administrative expenses rose to HKD 16,436,000, compared to HKD 13,911,000 in the same period last year, reflecting an increase of 18.1%[5] - The increase in administrative expenses was mainly due to higher depreciation, insurance costs, and bank fees[32] - Financing costs increased to HKD 1,493,000 from HKD 1,164,000, representing a rise of 28.3%[5] - Financing costs rose from approximately HKD 1,164,000 to about HKD 1,493,000, an increase of approximately HKD 329,000 or 28.3%[34] Shareholder Information - The board did not recommend the payment of dividends for the period ending June 30, 2023[36] - Shareholders, including Mr. Huang Chuang Cheng, Mr. Huang Wan Cheng, and Mr. Huang Zhi Hao, collectively hold 369,000,000 shares, representing 61.50% of the company's equity[37] - Major shareholders include Wan Cheng Global Limited and Li Hang Investment Limited, each holding 175,500,000 shares, representing 29.25% of the company[41] - Wong Lai Man and Wan Wing Ting, both spouses of directors, hold 369,000,000 shares each, accounting for 61.50% of the company[41] Strategic Focus and Outlook - The company continues to focus on expanding its cleaning and property management services, with a strategic emphasis on enhancing operational efficiency and service quality[9] - The company aims to secure more government contracts and explore new opportunities in the private sector to expand its customer base[28] - The management is optimistic about the recovery of the Hong Kong economy and the prospects for the cleaning services industry[26] - The company plans to leverage its financial resources to enhance business operations and improve service quality for maximizing shareholder returns[28] Corporate Governance - The company has adhered to all applicable provisions of the Corporate Governance Code during the reporting period[45] - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements[51] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[44] - No share options have been granted under the share option scheme since its adoption until June 30, 2023[49]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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。 Man Shing Global Holdings Limited 萬成環球控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8309） 截至2023年6月30日止三個月 第一季業績公告 萬成環球控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及 其附屬公司截至2023年6月30日止三個月之未經審核簡明綜合業績。本公告載列 本公司2023╱24年第一季報告全文，並符合聯交所GEM證券上市規則（「GEM上 市規則」）內有關第一季業績初步公告附載資料之相關規定。 代表 萬成環球控股有限公司 董事會主席 黃創成 香港，2023年8月11日 於本公告日期，董事會包括三名執行董事，即黃創成先生、黃萬成先生、黃志豪 ...

Financial Performance - For the fiscal year ending March 31, 2023, the company reported total revenue of HKD 997,030,000, representing a 50.1% increase from HKD 663,958,000 in the previous year[8]. - The net profit attributable to the company's equity holders for the same period was HKD 28,264,000, a slight decrease of 0.1% from HKD 28,615,000 in the prior year[8]. - Basic and diluted earnings per share for the year were HKD 4.71, compared to HKD 0.38 in the previous year, indicating a significant recovery in profitability[8]. - The company's total assets increased to HKD 191,114,000, up from HKD 133,879,000 in the previous year, reflecting a growth of 42.5%[8]. - The company reported a total equity attributable to equity holders of HKD 123,024,000, up from HKD 94,760,000 in the previous year, marking a growth of 30%[8]. - The group's gross profit increased by approximately HKD 34,766,000 or 57.4% from about HKD 60,612,000 for the year ended March 31, 2022, to about HKD 95,378,000 during the reporting period[27]. - The gross profit margin rose from approximately 9.1% for the year ended March 31, 2022, to about 9.6%, an increase of approximately 0.5%[27]. - Other income increased from approximately HKD 1,189,000 for the year ended March 31, 2022, to about HKD 4,777,000, primarily due to government pandemic relief funds and employment support scheme grants[28]. Revenue Breakdown - Revenue from cleaning solutions services amounted to approximately HKD 986,000,000, accounting for about 98.9% of total revenue, with a growth of 50.5% from approximately HKD 655,200,000 last year[19]. - The property management services segment generated revenue of approximately HKD 11,000,000, which is a 26.5% increase from approximately HKD 8,700,000 in the previous fiscal year[21]. - The increase in revenue is primarily attributed to multiple new contracts awarded by the Food and Environmental Hygiene Department for street cleaning services[24]. Operational Strategies - The company aims to strengthen relationships with government departments and private clients to secure potential projects in the industry[10]. - The company plans to explore more business opportunities and expand its market share while maintaining strict internal controls to enhance operational efficiency[11]. - The company plans to continue exploring new opportunities and expanding its business in the cleaning services sector, particularly by securing more contracts from various Hong Kong government departments[22]. - The company aims to enhance operational efficiency and improve service quality through the adoption of new technologies and strategies[23]. Corporate Governance - The company has maintained high standards of corporate governance and has adopted the Corporate Governance Code as its governance framework[72]. - The board has established specific committees including the audit committee, remuneration committee, nomination committee, and risk management committee to ensure proper oversight[72]. - The company emphasizes the importance of good corporate governance for effective management, successful operations, business growth, and enhancing shareholder value[72]. - The independent non-executive directors provide independent judgment on the group's strategies, policies, performance, resources, and code of conduct[63]. - The company has a commitment to maintaining good business ethics and corporate governance practices as one of its primary objectives[72]. Risk Management - The company has established an effective internal control and risk management system, reviewed bi-monthly, covering a rolling period of 12 months[130]. - The company faces human resource risks due to intense competition for talent in the environmental cleaning industry[133]. - The company has implemented measures to manage operational risks, including developing operational procedures and ensuring adequate staffing[137]. - The company monitors legal compliance risks and evaluates the effectiveness of internal control policies[127]. - The company aims to manage risks by identifying, assessing, and implementing plans to mitigate or maintain acceptable risk levels[132]. Employee Management - As of March 31, 2023, the group had approximately 7,117 employees, a decrease from 7,833 employees in 2022[47]. - Total employee costs for the reporting period amounted to approximately HKD 814,662,000, compared to HKD 535,308,000 in 2022, reflecting a significant increase[47]. - The company has focused on employee retention by offering wages above the minimum wage and providing extensive training programs to enhance employee skills[174]. - The gender ratio of employees as of March 31, 2023, is 43.4% male to 56.6% female, indicating a high level of gender diversity within the company[115]. Future Outlook - The company expresses confidence in the future of the cleaning services industry in Hong Kong, driven by heightened public awareness of health and hygiene post-pandemic[22]. - Future strategies include leveraging financial resources to stay aligned with business and technological trends for sustainable development[23]. - The company aims to maintain a relatively conservative debt ratio while ensuring sufficient cash buffers for operational needs in the coming months[144]. Financial Management - The current ratio improved to 1.83 times as of March 31, 2023, compared to 1.47 times as of March 31, 2022, mainly due to a reduction in bank and other borrowings within current liabilities[31]. - Total interest-bearing debt decreased from approximately HKD 116,163,000 as of March 31, 2022, to about HKD 68,158,000 as of March 31, 2023[33]. - The capital debt ratio was approximately 25.3% as of March 31, 2023, down from about 79.9% as of March 31, 2022, primarily due to a reduction in bank borrowings[34]. - The company has adopted a dividend policy that allows for the consideration of dividend payments based on financial conditions and operational needs[154]. Shareholder Communication - The board has reviewed the implementation and effectiveness of the shareholder communication policy, finding it effective in promoting transparency and communication with shareholders[161]. - The company has established various communication channels to ensure timely disclosure of information to shareholders and potential investors[160].

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 或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Man Shing Global Holdings Limited 萬成環球控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8309） 截至2023年3月31日止年度之 全年業績公告 萬成環球控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司 及其附屬公司截至2023年3月31日止年度的經審核綜合全年業績。本公告載有 本 公 司2023年 年 報（「年 報」）全 文，符 合 香 港 聯 合 交 易 所 的GEM證 券 上 市 規 則 （「GEM上市規則」）中有關年度業績初步公告附帶資料的相關規定。年報的印刷 本將於適時寄發予本公司股東，並分別刊載於香港聯合交易所有限公司網站 www.hkexnews.hk 及本公司網站www.manshing.com.hk 。 代表 萬成環球控股有限公司 主席兼執行董事 黃創成 香港，2023年6月26日 ...

Revenue Growth - For the three months ended December 31, 2022, revenue was HKD 255,657,000, representing a 35% increase from HKD 189,490,000 in the same period of 2021[6] - For the nine months ended December 31, 2022, revenue reached HKD 735,017,000, up 62% from HKD 454,693,000 in the prior year[6] - The company's revenue reached a record high of approximately HKD 735,017,000, an increase of 61.7% compared to the same period in 2021[28] - Revenue from cleaning solutions services amounted to approximately HKD 726,982,000, reflecting a 62.1% increase from approximately HKD 448,365,000 in the same period of 2021[30] - The revenue from street cleaning solutions for the three months ended December 31, 2022, was HKD 207,904,000, a 51% increase from HKD 137,534,000 in the same period of 2021[16] - The property management services segment reported revenue of approximately HKD 8,035,000, a 27.0% increase from approximately HKD 6,328,000 in the same period of 2021[31] Profitability - Gross profit for the three months ended December 31, 2022, was HKD 25,957,000, a 43% increase compared to HKD 18,169,000 in the same period of 2021[6] - The group reported a profit before tax of HKD 4,849,000 for the three months ended December 31, 2022, slightly down from HKD 4,961,000 in the same period of 2021[6] - The total comprehensive income for the three months ended December 31, 2022, was HKD 3,277,000, compared to HKD 6,138,000 in the same period of 2021[6] - Basic and diluted earnings per share for the three months ended December 31, 2022, were HKD 0.55, down from HKD 1.02 in the same period of 2021[6] - Basic and diluted earnings per share for the nine months ended December 31, 2022, were HKD 31.68, compared to HKD 10.90 for the same period in 2021[24] - The company reported a net profit attributable to shareholders of approximately HKD 19,012,000, an increase of about HKD 12,469,000 compared to HKD 6,543,000 for the nine months ended December 31, 2021[40] Expenses and Costs - The company reported an increase in administrative expenses to HKD 20,256,000 for the three months ended December 31, 2022, compared to HKD 12,682,000 in the same period of 2021[6] - Other income for the nine months ended December 31, 2022, totaled HKD 4,641,000, compared to HKD 1,366,000 for the same period in 2021, marking a significant increase[17] - Financing costs for the nine months ended December 31, 2022, were HKD 4,261,000, up from HKD 1,501,000 in the same period of 2021[19] - The company's total employee costs for the nine months ended December 31, 2022, were HKD 597,149,000, compared to HKD 365,827,000 in the same period of 2021, representing a 63.2% increase[22] - Administrative expenses increased from approximately HKD 34,998,000 to about HKD 48,878,000, an increase of about HKD 13,880,000, mainly due to higher insurance costs[37] - Financing costs rose from approximately HKD 1,501,000 to about HKD 4,261,000, an increase of about HKD 2,760,000 due to higher interest expenses on bank loans and finance leases[39] Corporate Governance and Shareholding - The company has adopted and complied with the corporate governance code as per GEM Listing Rules, aiming to enhance transparency and protect shareholder interests[52] - The major shareholders of the company include Wan Cheng Global Limited and Li Hang Investment Limited, each holding 175,500,000 shares, representing 29.25% of the total equity[46] - Wong Lai Man and Wan Wing Ting, spouses of major shareholders, are considered to have rights to 369,000,000 shares, which accounts for 61.50% of the total equity[46] - The shareholding structure indicates a strong familial connection among the major shareholders, which may influence company decisions[48] - The company confirms that there are no competing businesses or potential conflicts of interest involving major shareholders or directors[49] - The company has sufficient public float, complying with the minimum requirement of 25% as per GEM listing rules[57] Future Plans and Opportunities - The group plans to continue expanding its cleaning and property management services to enhance revenue growth in the upcoming quarters[10] - The company aims to explore more business opportunities and expand market share while maintaining strict internal controls to improve operational efficiency and financial conditions[33] - The company has been awarded large service contracts by the Hong Kong government, enhancing its operational and financial position, and plans to strengthen relationships with government departments and private clients[33] Dividends - The company did not recommend the payment of dividends for the nine months ended December 31, 2022[25] - No dividend was recommended for the nine months ended December 31, 2022, consistent with the previous year[41] Audit and Oversight - The audit committee consists of three members, including independent non-executive directors, ensuring oversight of financial reporting and internal controls[58] - The unaudited consolidated financial statements for the nine months ending December 31, 2022, have been reviewed by the audit committee[58]

香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM特 色 GEM乃為較於聯交所上市的其他公司帶有更高投資風險的中小型公司提供上市的市場。有意投 資者應了解投資有關公司的潛在風險，並應經審慎周詳考慮後方作出投資決定。 由於在GEM上市的公司一般為中小型公司，故於GEM買賣的證券可能會較於聯交所主板買賣的 證券承受更大的市場波動風險，同時無法保證於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及聯交所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，並明確表示概不對因本報告全部或任何部分內容而產生或因依賴該等內容而引致的 任何損失承擔任何責任。 本 報 告（萬 成 環 球 控 股 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」）董 事（「董 事」）共 同 及 個 別 對 此 負 全 責）乃 遵 照《聯 交 所GEM證 券 上 市 規 則》（「《GEM上市規則》」）的 規 定 而 提 供 有 關 本 公 司 的 資 料。董 事 經 作 出 一 切 合 理 查 詢 後 確 認，就 彼 等 所 深 知 及 確 信，本 報 告 所 載 資 料 在 各 ...

[Report Overview and Disclaimer](index=2&type=section&id=Report%20Overview%20and%20Disclaimer) This section outlines GEM market characteristics and risks, clarifying directors' responsibilities for report accuracy [Characteristics of GEM Market and Risk Warnings](index=2&type=section&id=Characteristics%20of%20GEM%20Market%20and%20Risk%20Warnings) The GEM market offers a listing platform for small companies, but investors face higher risks, greater volatility, and uncertain liquidity - GEM market provides listing for small and medium-sized companies, with **higher investment risks**[1](index=1&type=chunk) - GEM securities may experience **greater market volatility** and **cannot guarantee high liquidity**[1](index=1&type=chunk) [Report Statement and Directors' Responsibilities](index=2&type=section&id=Report%20Statement%20and%20Directors%27%20Responsibilities) Directors are jointly and severally responsible for this report, confirming its accuracy, completeness, and absence of misleading content - This report is the **joint and several responsibility of the company's directors**, aiming to provide company information[2](index=2&type=chunk) - Directors confirm the report's information is **accurate, complete, and free from misleading or fraudulent content** in all material aspects[2](index=2&type=chunk) [Unaudited Condensed Consolidated Results](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Results) This section presents the unaudited condensed consolidated financial performance, including profit or loss and equity changes [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) Revenue increased significantly, but profit decreased due to higher staff costs and lower gross margin Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the three months ended June 30) | Indicator | 2022 (HKD thousand) | 2021 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 223,331 | 151,108 | 47.8% | | Cost of sales | (204,092) | (135,777) | 50.3% | | Gross profit | 19,239 | 15,331 | 25.5% | | Other income | 1,188 | 208 | 471.2% | | Administrative expenses | (13,911) | (10,434) | 33.3% | | Finance costs | (1,164) | (465) | 150.3% | | Profit before tax | 5,352 | 4,640 | 15.3% | | Income tax expense | (1,473) | (574) | 156.6% | | Profit and total comprehensive income attributable to owners of the Company for the year | 3,879 | 4,066 | -4.6% | | Earnings per share (HK cents) | 0.65 | 0.68 | -4.4% | - Revenue increased by **47.8% year-on-year**, primarily driven by newly awarded street cleaning contracts[5](index=5&type=chunk) - Profit for the period decreased by **4.6% year-on-year**, mainly due to a decline in gross margin caused by increased staff costs and higher finance costs[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased to **HKD 98,639 thousand** as of June 30, 2022, mainly due to reduced profit contribution Unaudited Condensed Consolidated Statement of Changes in Equity (As of June 30) | Indicator | 2022 (HKD thousand) | 2021 (HKD thousand) | | :--- | :--- | :--- | | Share capital | 6,000 | 6,000 | | Share premium | 33,463 | 42,463 | | Other reserves | 110 | 110 | | Retained earnings | 59,066 | 57,000 | | Total equity | 98,639 | 105,573 | - Total equity as of June 30, 2022, was **HKD 98,639 thousand**, a decrease from **HKD 105,573 thousand** in the same period of 2021[7](index=7&type=chunk) - Profit contribution for the period was **HKD 3,879 thousand**, recognized in retained earnings[7](index=7&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details general information, presentation basis, and analyses of key financial statement items [General Information](index=5&type=section&id=General%20Information) Incorporated in Cayman Islands in 2016, listed on GEM in 2017, the company provides environmental cleaning and property management services - The company was incorporated in the Cayman Islands on March 18, 2016, and listed on GEM of the Stock Exchange from April 13, 2017[9](index=9&type=chunk) - Principal business is investment holding, with subsidiaries providing environmental cleaning solutions (including street, building, bus, and ferry cleaning, waste disposal, pest control, etc.) and property management services[9](index=9&type=chunk) - Controlling shareholders are **Mr. Wong Man Shing, Mr. Wong Chong Shing, and Mr. Wong Chi Ho**[9](index=9&type=chunk) [Basis of Presentation](index=5&type=section&id=Basis%20of%20Presentation) Quarterly results are presented in HKD, prepared under HKFRS and GEM Listing Rules, reviewed by Audit Committee, but unaudited - Financial statements are presented in **HKD**, prepared in accordance with **Hong Kong Financial Reporting Standards**, the **Companies Ordinance**, and the **GEM Listing Rules**[10](index=10&type=chunk)[11](index=11&type=chunk) - Prepared using the **historical cost convention**, unaudited by external auditors, but **reviewed by the Audit Committee**[12](index=12&type=chunk)[13](index=13&type=chunk) [Revenue Analysis](index=6&type=section&id=Revenue%20Analysis) Total revenue grew **47.8%** to **HKD 223,331 thousand**, primarily from street cleaning solutions Revenue by Source (For the three months ended June 30) | Revenue Source | 2022 (HKD thousand) | 2021 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Street cleaning solutions | 171,913 | 100,583 | 70.9% | | Building cleaning solutions | 24,160 | 20,835 | 15.9% | | Bus and ferry cleaning solutions | 11,250 | 17,753 | -36.6% | | Other cleaning solutions | 13,522 | 9,941 | 36.0% | | Property management services | 2,486 | 1,996 | 24.5% | | **Total Revenue** | **223,331** | **151,108** | **47.8%** | - **Street cleaning solutions revenue** was the primary growth driver, increasing by **70.9% year-on-year**[15](index=15&type=chunk) - **Bus and ferry cleaning solutions revenue** decreased by **36.6% year-on-year**[15](index=15&type=chunk) [Other Income Analysis](index=6&type=section&id=Other%20Income%20Analysis) Other income significantly increased to **HKD 1,188 thousand**, primarily due to government subsidies Other Income by Source (For the three months ended June 30) | Other Income Source | 2022 (HKD thousand) | 2021 (HKD thousand) | | :--- | :--- | :--- | | Government Anti-epidemic Fund subsidy | 920 | – | | Government Employment Support Scheme subsidy | 176 | – | | Disposal of property, plant and equipment | – | 203 | | Bank interest income | 6 | – | | Miscellaneous income | 86 | 5 | | **Total Other Income** | **1,188** | **208** | - Other income increased by **471.2%** from **HKD 208 thousand** in 2021 to **HKD 1,188 thousand** in 2022[16](index=16&type=chunk) - The main growth came from **Government Anti-epidemic Fund subsidy (HKD 920 thousand)** and **Government Employment Support Scheme subsidy (HKD 176 thousand)**[16](index=16&type=chunk) [Finance Costs Analysis](index=7&type=section&id=Finance%20Costs%20Analysis) Finance costs significantly increased by **150.1%** to **HKD 1,164 thousand**, mainly due to higher interest on bank borrowings Finance Costs by Source (For the three months ended June 30) | Finance Cost Source | 2022 (HKD thousand) | 2021 (HKD thousand) | | :--- | :--- | :--- | | Interest on bank overdrafts and borrowings | 665 | 212 | | Interest on lease liabilities | 499 | 253 | | **Total Finance Costs** | **1,164** | **465** | - Finance costs increased by **150.1% year-on-year**, from **HKD 465 thousand** to **HKD 1,164 thousand**[18](index=18&type=chunk) - The primary reason was an **increase in interest expenses on bank overdrafts and borrowings**[18](index=18&type=chunk) [Income Tax Expense Analysis](index=7&type=section&id=Income%20Tax%20Expense%20Analysis) Income tax expense increased **156.6%** to **HKD 1,473 thousand**, mainly due to higher Hong Kong profits tax Income Tax Expense by Type (For the three months ended June 30) | Tax Type | 2022 (HKD thousand) | 2021 (HKD thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 1,521 | 625 | | Deferred tax | (48) | (51) | | **Total Income Tax Expense** | **1,473** | **574** | - Income tax expense increased by **156.6% year-on-year**, from **HKD 574 thousand** to **HKD 1,473 thousand**[19](index=19&type=chunk) - Hong Kong profits tax applies a **two-tiered tax rate system**, with the first **HKD 2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[21](index=21&type=chunk) [Composition of Profit/(Loss) for the Period](index=8&type=section&id=Composition%20of%20Profit%28%2FLoss%29%20for%20the%20Period) Total staff costs significantly increased by **54.4%** to **HKD 182,695 thousand**, impacting profit, with depreciation also rising Cost Items (For the three months ended June 30) | Cost Item | 2022 (HKD thousand) | 2021 (HKD thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 170,607 | 116,653 | | Contributions to retirement benefit schemes | 5,061 | 3,002 | | Reversal of long service payment | (33) | (1,324) | | Provision for gratuity liabilities | 7,060 | – | | **Total Staff Costs** | **182,695** | **118,331** | | Auditor's remuneration | 180 | 125 | | Depreciation of property, plant and equipment | 220 | 293 | | Depreciation of right-of-use assets | 3,261 | 1,831 | - Total staff costs increased by **54.4% year-on-year**, from **HKD 118,331 thousand** to **HKD 182,695 thousand**[22](index=22&type=chunk) - Depreciation of right-of-use assets increased by **78.1% year-on-year**, from **HKD 1,831 thousand** to **HKD 3,261 thousand**[22](index=22&type=chunk) [Earnings Per Share](index=8&type=section&id=Earnings%20Per%20Share) Basic and diluted EPS decreased slightly to **0.65 HK cents** from **0.68 HK cents**, due to reduced profit Earnings Per Share (For the three months ended June 30) | Indicator | 2022 (HK cents) | 2021 (HK cents) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 0.65 | 0.68 | - Profit attributable to ordinary equity holders used for basic earnings per share calculation was **HKD 3,879 thousand** (2021: **HKD 4,066 thousand**)[23](index=23&type=chunk) - The weighted average number of ordinary shares outstanding was **600,000 thousand shares**, with no potential dilutive ordinary shares[23](index=23&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews business performance, future outlook, and key financial metrics [Business Review](index=9&type=section&id=Business%20Review) Group revenue significantly increased due to new street cleaning contracts, enhancing competitiveness through operational efficiency and technology - Revenue significantly increased during the reporting period, mainly due to **multiple street cleaning contracts awarded in late 2021 and May 2022**[25](index=25&type=chunk) - The company strategically enhances operational efficiency, improves asset utilization, and leverages new technologies to **strengthen operations and optimize work performance**[25](index=25&type=chunk) [Cleaning Solution Services](index=9&type=section&id=Cleaning%20Solution%20Services) Cleaning solution services remain the primary business, with revenue growing **48.1%** to **HKD 220,800 thousand**, driven by new government contracts - Cleaning solution services are the Group's primary business, with **over 30 years of experience**[26](index=26&type=chunk) - Revenue from cleaning solution services was approximately **HKD 220,800 thousand** during the reporting period, an increase of **48.1%** compared to the same period in 2021[27](index=27&type=chunk) - Revenue growth was mainly due to securing street cleaning service contracts for **Fanling, Sheung Shui, Southern, Tuen Mun, and Yau Tsim Mong (North) districts**[27](index=27&type=chunk) [Property Management Services](index=9&type=section&id=Property%20Management%20Services) Property management services provide stable but limited revenue, with management seeing synergies and future growth potential - Property management services provide a **stable but limited revenue source** for the Group[28](index=28&type=chunk) - Management believes property management services have **synergistic effects with cleaning solutions** and are expected to become a major revenue source in the future[28](index=28&type=chunk) [Outlook](index=9&type=section&id=Outlook) The company is confident in Hong Kong's economic recovery and environmental cleaning sector, pursuing new opportunities for sustainable growth - The company anticipates Hong Kong's economy is recovering and is **confident in the prospects of the environmental cleaning services industry** in Hong Kong[29](index=29&type=chunk) - Future efforts will focus on securing **more new tenders from other Hong Kong government departments** and expanding to **private clients** to broaden the customer base[31](index=31&type=chunk) - Will utilize financial resources, keep pace with business and technological trends, and formulate new business strategies to **improve performance and service quality**, aiming to **maximize shareholder returns**[31](index=31&type=chunk) [Financial Review](index=10&type=section&id=Financial%20Review) Revenue increased **47.8%**, but net profit decreased **4.6%** due to lower gross margin and higher operating costs [Revenue](index=10&type=section&id=Revenue) Revenue grew **47.8%** to **HKD 223,331 thousand**, primarily from new street cleaning contracts Revenue (For the three months ended June 30) | Indicator | 2022 (HKD thousand) | 2021 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 223,331 | 151,108 | 47.8% | - Revenue increase was mainly due to street cleaning contracts awarded in late 2021 and May 2022, contributing **additional revenue of approximately HKD 64,614 thousand**[32](index=32&type=chunk) [Gross Profit and Gross Margin](index=10&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased **25.5%** to **HKD 19,239 thousand**, but gross margin decreased **1.6 percentage points** due to higher staff costs Gross Profit and Gross Margin (For the three months ended June 30) | Indicator | 2022 (HKD thousand) | 2021 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 19,239 | 15,331 | 25.5% | | Gross margin | 8.6% | 10.2% | -1.6 percentage points | - Gross margin decline was mainly due to an **increase in staff costs of approximately HKD 64,364 thousand** during the reporting period[33](index=33&type=chunk) [Other Income](index=10&type=section&id=Other%20Income) Other income significantly increased to **HKD 1,188 thousand**, primarily due to government subsidies Other Income (For the three months ended June 30) | Indicator | 2022 (HKD thousand) | 2021 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other income | 1,188 | 208 | 471.2% | - The main growth came from **Government Anti-epidemic Fund subsidy** and **Government Employment Support Scheme subsidy**[34](index=34&type=chunk) [Administrative Expenses](index=10&type=section&id=Administrative%20Expenses) Administrative expenses increased **33.3%** to **HKD 13,911 thousand**, mainly due to higher depreciation and bank charges Administrative Expenses (For the three months ended June 30) | Indicator | 2022 (HKD thousand) | 2021 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 13,911 | 10,434 | 33.3% | - The increase in administrative expenses was mainly due to **increased depreciation, insurance expenses, and bank charges**[35](index=35&type=chunk) [Finance Costs](index=11&type=section&id=Finance%20Costs) Finance costs significantly increased by **150.1%** to **HKD 1,164 thousand**, due to higher interest on bank borrowings Finance Costs (For the three months ended June 30) | Indicator | 2022 (HKD thousand) | 2021 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 1,164 | 465 | 150.1% | - The increase in finance costs was mainly due to **higher interest expenses paid on bank borrowings**[37](index=37&type=chunk) [Net Profit](index=11&type=section&id=Net%20Profit) Net profit attributable to owners decreased **4.6%** to **HKD 3,879 thousand**, affected by lower gross margin and higher expenses Net Profit (For the three months ended June 30) | Indicator | 2022 (HKD thousand) | 2021 (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net profit | 3,879 | 4,066 | -4.6% | [Dividends](index=11&type=section&id=Dividends) The Board does not recommend a dividend for the three months ended June 30, 2022, consistent with prior periods - The Board of Directors does not recommend the payment of a dividend for the three months ended June 30, 2022[39](index=39&type=chunk) [Disclosure of Interests](index=11&type=section&id=Disclosure%20of%20Interests) This section details interests and short positions of directors, chief executives, and substantial shareholders in company securities [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=11&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) Directors Wong Chong Shing, Wong Man Shing, and Wong Chi Ho each held **61.50%** of shares through controlled corporations and acting-in-concert interests Directors' Interests (As of June 30, 2022) | Director | Capacity/Nature | Number of Ordinary Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Wong Chong Shing | Interest in controlled corporation; Acting-in-concert interest | 369,000,000 | 61.50% | | Mr. Wong Man Shing | Interest in controlled corporation; Acting-in-concert interest | 369,000,000 | 61.50% | | Mr. Wong Chi Ho | Interest in controlled corporation; Acting-in-concert interest | 369,000,000 | 61.50% | - **Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho** entered into an acting-in-concert agreement on March 30, 2016[43](index=43&type=chunk) - **Mr. Wong Chong Shing** holds **175,500,000 shares** through his wholly-owned company, Man Shing Global Limited, and is deemed to own **193,500,000 shares** due to acting-in-concert[43](index=43&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=13&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) Man Shing Global Limited and Li Hang Investment Limited each held **29.25%** of shares; spouses were deemed to own **61.50%** Substantial Shareholders' Interests (As of June 30, 2022) | Shareholder Name/Name | Capacity/Nature | Number of Ordinary Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | Man Shing Global Limited | Beneficial owner | 175,500,000 | 29.25% | | Li Hang Investment Limited | Beneficial owner | 175,500,000 | 29.25% | | Ms. Wong Lai Man | Interest of spouse | 369,000,000 | 61.50% | | Chun Shing Investment Limited | Beneficial owner | 18,000,000 | 3.00% | | Ms. Wan Wing Ting | Interest of spouse | 369,000,000 | 61.50% | - **Man Shing Global Limited** is wholly-owned by Executive Director **Mr. Wong Chong Shing**[47](index=47&type=chunk) - **Ms. Wong Lai Man** is the spouse of **Mr. Wong Man Shing**, and **Ms. Wan Wing Ting** is the spouse of **Mr. Wong Chi Ho**, both are deemed to have interests in the shares held by their respective spouses[47](index=47&type=chunk) [Corporate Governance and Other Information](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers corporate governance practices, including competing interests, securities transactions, code compliance, share options, and board composition [Competing Interests and Conflicts of Interest](index=14&type=section&id=Competing%20Interests%20and%20Conflicts%20of%20Interest) Directors confirm no controlling shareholders, directors, or associates have competing businesses or conflicts of interest - None of the controlling shareholders, directors, or their respective close associates have any business that **directly or indirectly competes with or creates a conflict of interest** with the Group's business[48](index=48&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=14&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - Neither the company nor its any subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[49](index=49&type=chunk) [Compliance with the Corporate Governance Code](index=14&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The company complied with all applicable Corporate Governance Code provisions, ensuring transparency and protecting shareholder interests - The company has complied with all applicable code provisions of the **Corporate Governance Code** as set out in Appendix 15 to the GEM Listing Rules during the reporting period[50](index=50&type=chunk) - The company is committed to maintaining **high standards of corporate governance practices** to ensure transparency and safeguard shareholders' interests[51](index=51&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=14&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The company adopted GEM Listing Rules standards for directors' securities transactions, with all directors confirming full compliance - The company has adopted the standards set out in **Rules 5.48 to 5.67 of the GEM Listing Rules** as the code of conduct for directors' securities transactions[52](index=52&type=chunk) - All directors have confirmed full compliance with the dealing standards set out in the Code of Conduct during the reporting period and up to the reporting date[52](index=52&type=chunk) [Share Option Scheme](index=14&type=section&id=Share%20Option%20Scheme) The Share Option Scheme, adopted on March 20, 2017, aims to attract and motivate talent, but no options have been granted - The Share Option Scheme was adopted on **March 20, 2017**, to attract, retain, and motivate talented participants[53](index=53&type=chunk) - No share options have been granted under the Share Option Scheme since its adoption and up to June 30, 2022[54](index=54&type=chunk) [Audit Committee](index=15&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviews financial reporting and internal controls - The Audit Committee comprises **three independent non-executive directors**, with **Mr. Au Yeung Tin Wah** as chairman[56](index=56&type=chunk) - The committee assists the Board in fulfilling its responsibilities, providing **independent review of financial reporting** and **monitoring the effectiveness of internal controls**[56](index=56&type=chunk) - These unaudited quarterly financial statements have been **reviewed by the Audit Committee** and are considered to comply with the applicable accounting principles and requirements of the GEM Listing Rules[56](index=56&type=chunk) [Board Composition](index=15&type=section&id=Board%20Composition) The Board comprises three executive directors and three independent non-executive directors - The Board of Directors includes **three executive directors**: Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho[57](index=57&type=chunk) - The Board of Directors includes **three independent non-executive directors**: Mr. Li Pak Chung, Mr. Au Yeung Tin Wah, and Mr. Chiu Ka Wai[57](index=57&type=chunk)

香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM特 色 GEM乃 為 較 於 聯 交 所 上 市 的 其 他 公 司 帶 有 更 高 投 資 風 險 的 中 小 型 公 司 提 供 上 市 的 市 場。有 意 投 資 者 應 了 解投資有關公司的潛在風險，並應經審慎周詳考慮後方作出投資決定。 由於在GEM上 市 的 公 司 一 般 為 中 小 型 公 司，故 於GEM買賣的證券可能會較於聯交所主板買賣的證券承受 更大的市場波動風險，同時無法保證於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及聯交所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， 並明確表示概不對因本報告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 本 報 告（萬 成 環 球 控 股 有 限 公 司（「本 公 司」，連 同 其 附 屬 公 司 統 稱「本 集 團」或「萬 成」）董 事（「董 事」）共 同 及 個 別 對 此 負 全 責）乃 遵 照《聯 交 所GEM證 券 上 市 規 則》（「《GEM上 市 規 則》」）的 規 定 而 提 供 有 關 本 公 司 的 資 料 ...

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the nine months ended December 31, 2021, revenue grew 5.1% to HK$455 million, but gross profit fell 28.0% and profit for the period sharply declined 74.8% to HK$6.54 million, with basic EPS dropping to HK$1.09 cents Summary of Consolidated Statement of Profit or Loss (For the nine months ended December 31) | Indicator | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 454,693 | 432,724 | +5.1% | | Gross Profit | 41,072 | 57,076 | -28.0% | | Profit Before Tax | 5,939 | 29,510 | -79.9% | | Profit for the Period | 6,543 | 25,951 | -74.8% | | Basic Earnings Per Share (HK Cents) | 1.09 | 4.33 | -74.8% | [Consolidated Statement of Changes in Equity](index=4&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of December 31, 2021, total equity slightly decreased to HK$99.05 million from HK$101.5 million, influenced by HK$6.54 million profit and HK$9 million in dividends Summary of Changes in Equity (For the nine months ended December 31, 2021) | Item | Amount (HK$ Thousand) | | :--- | :--- | | Balance at April 1, 2021 | 101,507 | | Profit for the period | 6,543 | | Approved dividends | (9,000) | | **Balance at December 31, 2021** | **99,050** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail financial data composition, highlighting street cleaning revenue decline, reduced other income due to prior-year subsidies, and a significant increase in staff costs [Revenue Analysis](index=6&type=section&id=3.%20Revenue) Total revenue grew 5.1% to HK$455 million, driven by bus and ferry cleaning and new property management services, despite a 3.7% decline in street cleaning solutions Segment Revenue (For the nine months ended December 31) | Business Segment | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Street Cleaning Solutions | 300,153 | 311,689 | -3.7% | | Building Cleaning Solutions | 65,885 | 64,215 | +2.6% | | Bus and Ferry Cleaning Solutions | 49,752 | 29,342 | +69.5% | | Other Cleaning Services | 32,575 | 27,478 | +18.5% | | Property Management Services | 6,328 | – | N/A | | **Total** | **454,693** | **432,724** | **+5.1%** | [Other Income](index=6&type=section&id=4.%20Other%20Income) Other income plummeted from HK$12.33 million to HK$1.37 million, primarily due to the absence of prior-year government grants - Other income significantly decreased due to approximately **HK$12.14 million** in government grants (Anti-epidemic Fund and Employment Support Scheme) received in the prior period, with no such grants in the current period[19](index=19&type=chunk) [Profit for the Period Composition](index=8&type=section&id=7.%20Profit%20for%20the%20period) Total staff costs increased 8.1% to HK$366 million, significantly impacting profit, with wages and benefits as primary components Key Expense Items (For the nine months ended December 31) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Staff Costs | 365,827 | 338,306 | +8.1% | | Depreciation of Right-of-use Assets | 5,770 | 5,776 | -0.1% | [Dividends](index=9&type=section&id=9.%20Dividend) The Board does not recommend a dividend for the current nine-month period, though a HK$9 million final dividend for the prior fiscal year was paid - No dividend is recommended for the current reporting period[26](index=26&type=chunk) - A final dividend of **HK$9 million** (HK$1.5 cents per share) for the previous fiscal year (ended March 31, 2021) was paid on October 20, 2021[26](index=26&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=10&type=section&id=Business%20Review%20and%20Outlook) The company's core environmental cleaning business, operating over 30 years, saw total revenue growth driven by bus and ferry cleaning despite street cleaning contract completion, with seven new government contracts supporting future prospects - The core business is environmental cleaning solutions, with a comprehensive service portfolio including street, building, bus, and ferry cleaning[29](index=29&type=chunk) - Seven new 3-year large government service contracts were secured starting October 2021, reflecting recognition of the company's service quality[29](index=29&type=chunk)[32](index=32&type=chunk) - The company remains confident in the environmental cleaning service industry outlook, aiming to expand market share and implement strict internal controls to maximize shareholder returns[32](index=32&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) Revenue grew 5.1% to HK$455 million, driven by bus and ferry cleaning, but increased staff costs and reduced other income led to a 74.8% decline in profit attributable to owners to HK$6.54 million - Revenue increased by **5.1%**, primarily driven by an increase in service contracts for bus and ferry cleaning solutions[34](index=34&type=chunk) - Gross profit decreased by **28.0%**, with the gross profit margin falling from **13.2% to 9.03%**, mainly due to an increase in staff costs of approximately **HK$24.72 million**[35](index=35&type=chunk) - Other income significantly decreased due to government Anti-epidemic Fund and Employment Support Scheme subsidies in the prior period, which were absent in the current period[36](index=36&type=chunk) - Net profit sharply declined by **74.8%** to **HK$6.54 million** (compared to HK$25.95 million in the prior period)[39](index=39&type=chunk) [Disclosures and Corporate Governance](index=12&type=section&id=Disclosures%20and%20Corporate%20Governance) [Disclosure of Directors' and Chief Executives' Interests](index=12&type=section&id=Disclosure%20of%20Interests) As of December 31, 2021, controlling shareholders Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho collectively held 61.50% of the company's shares - Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho are parties acting in concert, collectively deemed to be interested in **369,000,000 shares**, representing **61.50%** of the company's total share capital[42](index=42&type=chunk)[45](index=45&type=chunk) [Corporate Governance](index=15&type=section&id=Corporate%20Governance) The company complied with GEM Listing Rules' Corporate Governance Code, with an audit committee of independent non-executive directors reviewing the unaudited financial statements - The company has adopted and complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[51](index=51&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the quarter[57](index=57&type=chunk) - As of the reporting date, the company's issued shares maintained sufficient public float, complying with the GEM Listing Rules' requirement of not less than **25%**[56](index=56&type=chunk)

GEM Market Features and Report Declaration This section outlines the characteristics of the GEM market and the company's report declarations [GEM Market Risk Warning](index=2&type=section&id=GEM%E5%B8%82%E5%9C%BA%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The HKEX GEM market offers a listing platform for SMEs, but involves higher investment risks, potential for greater market volatility, and unguaranteed liquidity, with HKEX disclaiming responsibility for report content - GEM market provides a listing platform for small and medium-sized companies, but involves **higher investment risks**[1](index=1&type=chunk) - GEM securities may be subject to **greater market volatility risks**, and **high liquidity cannot be guaranteed**[1](index=1&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are **not responsible for the contents of this report**[1](index=1&type=chunk) [Directors' Statement and Report Compliance](index=2&type=section&id=%E8%91%A3%E4%BA%8B%E5%A3%B0%E6%98%8E%E4%B8%8E%E6%8A%A5%E5%91%8A%E5%90%88%E8%A7%84%E6%80%A7) This report is the joint and individual responsibility of the directors of Man Shing Global Holdings Limited, prepared in compliance with GEM Listing Rules, with directors confirming accuracy and completeness - This report is the **joint and individual responsibility of the company's directors**, prepared in compliance with the GEM Listing Rules[2](index=2&type=chunk) - Directors confirm that the information in the report is **accurate, complete, and free from misleading or fraudulent content** in all material aspects[2](index=2&type=chunk) Company Information This section provides essential details about the company's governance structure and professional services [Board of Directors](index=4&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%88%90%E5%91%98) The Board comprises three executive directors (Mr. Wong Chong Shing, Mr. Wong Man Shing, Mr. Wong Chi Ho) and three independent non-executive directors (Mr. Li Pak Chung, Mr. Au Yeung Tin Wah, Mr. Chiu Ka Wai), with Mr. Wong Chong Shing as Chairman - Executive Directors: **Mr. Wong Chong Shing (Chairman), Mr. Wong Man Shing, Mr. Wong Chi Ho**[5](index=5&type=chunk) - Independent Non-Executive Directors: **Mr. Li Pak Chung, Mr. Au Yeung Tin Wah, Mr. Chiu Ka Wai**[5](index=5&type=chunk) [Committee Composition](index=4&type=section&id=%E5%A7%94%E5%91%98%E4%BC%9A%E6%9E%84%E6%88%90) The company has an Audit, Remuneration, Nomination, and Risk Management Committee, each chaired or significantly staffed by independent non-executive directors to ensure governance independence - Audit Committee Chairman: **Mr. Au Yeung Tin Wah**[5](index=5&type=chunk) - Remuneration Committee Chairman: **Mr. Chiu Ka Wai**[5](index=5&type=chunk) - Nomination Committee Chairman: **Mr. Wong Chong Shing**[5](index=5&type=chunk) - Risk Management Committee Chairman: **Mr. Wong Chong Shing**[5](index=5&type=chunk) [Company Contact and Professional Services](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%81%AF%E7%BB%9C%E4%B8%8E%E4%B8%93%E4%B8%9A%E6%9C%8D%E5%8A%A1) Registered in the Cayman Islands with principal operations in Hong Kong, the company details its secretary, compliance officer, auditor, legal counsel, and primary banking relationships - Registered office: **Cayman Islands**[5](index=5&type=chunk) - Head office and principal place of business: **Kwai Chung, New Territories, Hong Kong**[5](index=5&type=chunk) - Company Secretary: **Mr. Tong Wai Kit**; Compliance Officer: **Mr. Wong Chong Shing**[5](index=5&type=chunk)[6](index=6&type=chunk) - Auditor: **Zhong Zheng Tian Heng CPA Limited**; Legal Advisor: **Liu, Lin & Chen**[6](index=6&type=chunk) - Principal bankers include **Shanghai Commercial Bank, Fubon Bank (Hong Kong), Standard Chartered Bank**, among others[6](index=6&type=chunk) Unaudited Condensed Consolidated Financial Statements This section presents the company's unaudited condensed consolidated financial performance and position for the period [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended September 30, 2021, revenue decreased by 9.1% to HK$265.2 million, gross profit fell 39.6% to HK$22.9 million, leading to a sharp profit reduction to HK$0.406 million and diluted EPS of HK$0.07 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended September 30) | Indicator | 2021 (HK$ '000) | 2020 (HK$ '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 265,203 | 291,852 | -9.1 | | Cost of sales | (242,300) | (253,961) | -4.6 | | Gross profit | 22,903 | 37,891 | -39.6 | | Other income | 1,325 | 7,333 | -81.9 | | Administrative expenses | (22,316) | (23,139) | -3.6 | | Finance costs | (934) | (1,207) | -22.6 | | Profit/(Loss) before tax | 978 | 20,878 | -95.3 | | Recoverable income tax/(expense) | (572) | (2,737) | -79.1 | | Profit/(Loss) and total comprehensive income/(expense) for the period | 406 | 18,141 | -97.8 | | Earnings/(Loss) per share (HK cents) | 0.07 | 3.02 | -97.7 | [Unaudited Condensed Consolidated Statement of Financial Position](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of September 30, 2021, total assets slightly increased, with significant growth in property and equipment, while net current assets decreased, maintaining a generally stable financial position Condensed Consolidated Statement of Financial Position (As of September 30) | Indicator | Sep 30, 2021 (HK$ '000) | Mar 31, 2021 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | 8,561 | 2,799 | +5,762 | | Right-of-use assets | 17,660 | 20,767 | -3,107 | | Goodwill | 4,095 | 4,095 | 0 | | **Current assets** | | | | | Trade receivables | 72,612 | 53,188 | +19,424 | | Prepayments, deposits and other receivables | 18,069 | 12,543 | +5,526 | | Pledged bank deposits | 54,197 | 33,125 | +21,072 | | Bank balances and cash | 29,427 | 70,545 | -41,118 | | **Current liabilities** | | | | | Trade payables | 9,850 | 7,031 | +2,819 | | Bank and other borrowings | 24,710 | 17,303 | +7,407 | | **Non-current liabilities** | | | | | Lease liabilities | 2,178 | 12,114 | -9,936 | | Long service payment obligations | 6,778 | 2,836 | +3,942 | | **Total equity** | 101,913 | 101,507 | +406 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended September 30, 2021, total equity slightly increased, primarily driven by the profit for the period, with share capital and share premium remaining constant Condensed Consolidated Statement of Changes in Equity (For the six months ended September 30) | Indicator | Sep 30, 2021 (HK$ '000) | Sep 30, 2020 (HK$ '000) | | :--- | :--- | :--- | | Share capital | 6,000 | 6,000 | | Share premium | 42,463 | 42,463 | | Other reserves | 110 | 110 | | Retained earnings | 53,340 | 42,460 | | Total equity | 101,913 | 91,033 | - Profit for the period was **HK$406 thousand**, contributing to the growth in total equity[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended September 30, 2021, operating cash flow shifted to a net outflow, investment cash flow to a net inflow, and financing cash flow significantly decreased, resulting in a net cash reduction of HK$41.118 million Condensed Consolidated Statement of Cash Flows (For the six months ended September 30) | Indicator | 2021 (HK$ '000) | 2020 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Net cash (used in) from operating activities | (71,328) | 2,718 | -74,046 | | Net cash from (used in) investing activities | 26,006 | (866) | +26,872 | | Net cash from financing activities | 4,204 | 15,342 | -11,138 | | Net (decrease) increase in cash and cash equivalents | (41,118) | 17,194 | -58,312 | | Cash and cash equivalents at end of period | 29,427 | 57,348 | -27,921 | Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed explanatory notes supporting the unaudited condensed consolidated financial statements [1. General Information](index=9&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company, incorporated in the Cayman Islands and listed on GEM in 2017, operates as an investment holding company with subsidiaries providing environmental cleaning and property management services, controlled by Messrs. Wong Man Shing, Wong Chong Shing, and Wong Chi Ho - The company was incorporated in the Cayman Islands on **March 18, 2016**, and listed on GEM on **April 13, 2017**[15](index=15&type=chunk) - Principal activities include **environmental cleaning solutions** (street, building, bus and ferry cleaning, waste collection, pest control, etc.) and **property management services**[15](index=15&type=chunk) - Controlling shareholders are **Mr. Wong Man Shing, Mr. Wong Chong Shing, and Mr. Wong Chi Ho**[15](index=15&type=chunk) [2. Basis of Preparation](index=9&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated interim financial statements are prepared under HKAS 34, the Companies Ordinance, and GEM Listing Rules, using a historical cost basis, with recent HKFRS amendments having no material impact - Financial statements are prepared in accordance with **HKAS 34, the Companies Ordinance, and GEM Listing Rules**[17](index=17&type=chunk) - Prepared on a **historical cost basis**, and amendments to Interest Rate Benchmark Reform – Phase 2 have been adopted[18](index=18&type=chunk)[19](index=19&type=chunk) - The amendments have **no material impact** on the Group's results and financial position[18](index=18&type=chunk) - Interim results are **unaudited by the auditor** but have been reviewed by the Audit Committee[20](index=20&type=chunk) [3. Revenue](index=10&type=section&id=3.%20%E6%94%B6%E5%85%A5) For the six months ended September 30, 2021, total revenue decreased by 9.1% to HK$265 million, primarily due to a significant reduction in street cleaning solutions, despite growth in bus and ferry cleaning and property management services Revenue Analysis (For the six months ended September 30) | Service Type | 2021 (HK$ '000) | 2020 (HK$ '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Street cleaning solutions | 162,619 | 211,641 | -23.1 | | Building cleaning solutions | 41,940 | 44,397 | -5.6 | | Bus and ferry cleaning solutions | 35,701 | 19,807 | +80.2 | | Other cleaning services | 20,829 | 16,007 | +30.1 | | Property management services | 4,114 | – | N/A | | **Total Revenue** | **265,203** | **291,852** | **-9.1** | Segment Revenue and Results (For the six months ended September 30) | Segment | 2021 Revenue (HK$ '000) | 2020 Revenue (HK$ '000) | 2021 Profit (HK$ '000) | 2020 Profit (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | | Environmental cleaning services | 261,089 | 287,723 | 2,533 | 15,108 | | Property management services | 4,114 | 4,129 | 272 | 1,144 | | **Total** | **265,203** | **291,852** | **2,805** | **16,252** | - Total segment profit significantly decreased from **HK$16,252 thousand in 2020 to HK$2,805 thousand in 2021**[26](index=26&type=chunk) [4. Other Income](index=12&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended September 30, 2021, other income significantly decreased by 81.9% to HK$1.325 million, mainly due to the absence of government anti-epidemic fund and employment support scheme subsidies received in the prior period Other Income (For the six months ended September 30) | Item | 2021 (HK$ '000) | 2020 (HK$ '000) | YoY Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Government Anti-epidemic Fund subsidy | – | 2,331 | -2,331 | | Government Employment Support Scheme subsidy | – | 4,830 | -4,830 | | Disposal of fixed assets | 1,165 | 5 | +1,160 | | Bank interest income | 24 | 64 | -40 | | Miscellaneous income | 136 | 103 | +33 | | **Total** | **1,325** | **7,333** | **-6,008** | - The significant decrease in other income is primarily due to the **cancellation of government subsidies**[30](index=30&type=chunk) [5. Finance Costs](index=12&type=section&id=5.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended September 30, 2021, finance costs decreased by 22.6% to HK$0.934 million, primarily attributable to reduced interest on bank borrowings and lease liabilities Finance Costs (For the six months ended September 30) | Item | 2021 (HK$ '000) | 2020 (HK$ '000) | YoY Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Interest on bank borrowings | 463 | 612 | -149 | | Interest on lease liabilities | 471 | 595 | -124 | | **Total** | **934** | **1,207** | **-273** | [6. Income Tax Expense](index=13&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended September 30, 2021, income tax expense decreased by 79.1% to HK$0.572 million, influenced by changes in Hong Kong profits tax and deferred tax, with no income tax in the Cayman Islands and BVI Income Tax Expense (For the six months ended September 30) | Item | 2021 (HK$ '000) | 2020 (HK$ '000) | YoY Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Hong Kong profits tax | 826 | 2,946 | -2,120 | | Deferred tax | (254) | (209) | -45 | | **Total** | **572** | **2,737** | **-2,165** | - No income tax is payable in the **Cayman Islands and British Virgin Islands**[34](index=34&type=chunk) - Hong Kong profits tax is calculated under a **two-tiered tax rate system**, with 8.25% for the first HK$2 million of assessable profits and 16.5% for the remainder[34](index=34&type=chunk) [7. Profit for the Period](index=13&type=section&id=7.%20%E6%9C%9F%E5%85%A7%E5%88%A9%E6%BD%A4) For the six months ended September 30, 2021, profit for the period was determined after deducting items such as staff costs, auditor's remuneration, and depreciation, with total staff costs decreasing by 6.7% to HK$213 million Profit for the Period Items Deducted/Included (For the six months ended September 30) | Item | 2021 (HK$ '000) | 2020 (HK$ '000) | YoY Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Total staff costs | 212,950 | 228,146 | -15,196 | | Auditor's remuneration | 314 | 294 | +20 | | Depreciation of property, plant and equipment | 522 | 599 | -77 | | Depreciation of right-of-use assets | 3,559 | 3,980 | -421 | | Short-term lease expenses | 137 | 137 | 0 | - Total staff costs (including directors' emoluments) decreased year-on-year, mainly due to a **reduction in salaries, wages, and other benefits**[33](index=33&type=chunk) [8. Earnings/(Loss) Per Share](index=14&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%E2%88%95%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89) For the six months ended September 30, 2021, basic and diluted earnings per share significantly decreased by 97.7% to HK$0.07 cents from HK$3.02 cents in the prior year, with a constant weighted average number of ordinary shares Earnings/(Loss) Per Share Calculation Data (For the six months ended September 30) | Indicator | 2021 (HK$ '000/shares '000) | 2020 (HK$ '000/shares '000) | | :--- | :--- | :--- | | Profit/(Loss) attributable to ordinary equity holders | 406 | 18,141 | | Weighted average number of ordinary shares in issue for the period | 600,000 | 600,000 | | **Basic and diluted earnings/(loss) per share (HK cents)** | **0.07** | **3.02** | - There were **no potential dilutive ordinary shares** outstanding during the period, thus basic and diluted earnings per share are the same[35](index=35&type=chunk) [9. Dividends](index=14&type=section&id=9.%20%E8%82%A1%E6%81%AF) No dividends were proposed for the six months ended September 30, 2021, although a final dividend of HK$1.5 cents per share for the year ended March 31, 2021, totaling HK$9 million, was approved and fully paid by October 2021 - No dividends were proposed for the **six months ended September 30, 2021**[36](index=36&type=chunk) - The final dividend of **HK$1.5 cents per share** (totaling **HK$9 million**) for the year ended March 31, 2021, was approved on August 5, 2021, and fully paid by October 2021[36](index=36&type=chunk) [10. Property, Plant and Equipment](index=14&type=section&id=10.%20%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended September 30, 2021, the Group acquired approximately HK$6.315 million in property, plant and equipment and generated a net gain of HK$1.165 million from the disposal of motor vehicles Property, Plant and Equipment Changes (For the six months ended September 30) | Item | 2021 (HK$ '000) | 2020 (HK$ '000) | | :--- | :--- | :--- | | Acquisitions of property, plant and equipment | 6,315 | 123 | | Carrying amount of motor vehicles disposed | 37 | 0 | | Cash proceeds from disposal of motor vehicles | 1,202 | 5 | | Net gain on disposal | 1,165 | 5 | [11. Trade Receivables](index=15&type=section&id=11.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of September 30, 2021, trade receivables increased to HK$72.612 million, with most balances falling within the 60-day credit period offered by the company Trade Receivables Ageing Analysis (As of September 30) | Ageing | Sep 30, 2021 (HK$ '000) | Mar 31, 2021 (HK$ '000) | | :--- | :--- | :--- | | 0 to 60 days | 66,345 | 51,958 | | 61 to 90 days | 2,891 | 19 | | Over 91 days | 3,376 | 1,211 | | **Total** | **72,612** | **53,188** | - No impairment loss on trade receivables was recognized for the current period, compared to **HK$261 thousand in the prior year**[40](index=40&type=chunk) [12. Trade Payables](index=15&type=section&id=12.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of September 30, 2021, trade payables increased to HK$9.85 million, with an average credit period of 60 days, managed through financial risk policies to ensure timely settlement Trade Payables Ageing Analysis (As of September 30) | Ageing | Sep 30, 2021 (HK$ '000) | Mar 31, 2021 (HK$ '000) | | :--- | :--- | :--- | | 0 to 60 days | 7,888 | 5,097 | | 61 to 90 days | 9 | 6 | | Over 91 days | 1,953 | 1,928 | | **Total** | **9,850** | **7,031** | - The company offers an average credit period of **60 days** and has financial risk management policies to ensure timely settlement[41](index=41&type=chunk) [13. Share Capital](index=16&type=section&id=13.%20%E8%82%A1%E6%9C%AC) As of September 30, 2021, the company's authorized share capital remained at HK$100 million (10 billion ordinary shares), with issued and fully paid share capital at HK$6 million (600 million ordinary shares) Share Capital Structure (As of September 30) | Item | Sep 30, 2021 (shares '000/HK$ '000) | Mar 31, 2021 (shares '000/HK$ '000) | | :--- | :--- | :--- | | Authorized number of ordinary shares | 10,000,000 | 10,000,000 | | Authorized share capital | 100,000 | 100,000 | | Issued and fully paid number of ordinary shares | 600,000 | 600,000 | | Issued and fully paid share capital | 6,000 | 6,000 | [14. Related Party Transactions](index=16&type=section&id=14.%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) During the period, the Group engaged in related party transactions for lease payments and consultancy fees with directors and their associates, with key management personnel compensation also increasing Related Party Transactions (For the six months ended September 30) | Related Party | Nature of Transaction | 2021 (HK$ '000) | 2020 (HK$ '000) | | :--- | :--- | :--- | :--- | | Mr. Wong Chong Shing | Lease payments | 212 | 202 | | Mr. Lo Wing Keung | Consultancy fees | 60 | 180 | Key Management Personnel Remuneration (For the six months ended September 30) | Item | 2021 (HK$ '000) | 2020 (HK$ '000) | | :--- | :--- | :--- | | Short-term benefits | 3,309 | 2,578 | - Mr. Wong Chong Shing is a **director and controlling shareholder** of the company, and Mr. Lo Wing Keung is a **director of a subsidiary**[44](index=44&type=chunk)[45](index=45&type=chunk) Management Discussion and Analysis This section provides an overview of the Group's operational performance, financial position, and future outlook [Business Review](index=17&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the Group's revenue slightly decreased due to the completion of two street cleaning contracts, yet it successfully secured new bus and ferry cleaning contracts, renewed street cleaning contracts, and expanded private sector cleaning services - Revenue decrease primarily due to the completion of **Sham Shui Po (East) and Sham Shui Po (West) street cleaning service contracts**, reducing revenue by approximately **HK$31.137 million**[47](index=47&type=chunk) - Successfully secured **two bus and ferry cleaning solutions service contracts** (January and April 2021)[47](index=47&type=chunk) - Renewed the **Tsuen Wan (West) street cleaning service contract** (effective May 2021)[47](index=47&type=chunk) - Provided **related handling services to Hong Kong public crematoria** since May 2021[47](index=47&type=chunk) - Increased other cleaning solutions provided to **private organizations**[47](index=47&type=chunk) [Cleaning Solutions Services](index=17&type=section&id=%E6%B8%85%E6%BD%94%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88%E6%9C%8D%E5%8B%99) Cleaning solutions remain the Group's core business with over 30 years of experience, securing new government contracts despite a subsidiary's bidding suspension, affirming service quality and future growth - Cleaning solutions services are the Group's **main business**, with over **30 years of experience**[48](index=48&type=chunk) - Services cover **street, building, bus and ferry cleaning, waste disposal, external wall and window cleaning, confined space cleaning, and pest control**[48](index=48&type=chunk) - Through another subsidiary, successfully obtained **two Food and Environmental Hygiene Department service contracts**, despite the main subsidiary being suspended from bidding[48](index=48&type=chunk) - Awarded **seven large government service contracts**, effective for 3 years from October 2021, reflecting recognition of service quality[48](index=48&type=chunk) [Property Management Services](index=17&type=section&id=%E7%89%A9%E6%A5%AD%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8B%99) Property management services, while currently a limited revenue contributor, provide a stable income stream and are expected to generate synergies with existing cleaning services, becoming a key future revenue source - Property management services contribute **limited revenue** but provide a **stable income source**[49](index=49&type=chunk) - Property management services are believed to have **synergies with cleaning solutions services** and may become a major revenue source in the future[49](index=49&type=chunk) [Prospects](index=17&type=section&id=%E5%89%8D%E6%99%AF) The company is confident in the environmental cleaning sector's prospects, with recent large government contracts expected to strengthen its business and financial position, aiming for market expansion and shareholder value maximization - Confident in the **prospects of the environmental cleaning service industry**[50](index=50&type=chunk) - The **seven large government service contracts** awarded in Q4 2021 will strengthen business and financial position[50](index=50&type=chunk) - Will continue to build **closer relationships with government departments and private clients**, seeking potential projects and expanding customer base[50](index=50&type=chunk) - Will implement **strict internal controls** to enhance operational efficiency and financial position, maximizing shareholder returns[50](index=50&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the Group experienced significant declines in revenue, gross profit, other income, and net profit, primarily due to contract completions and the cessation of government subsidies - Revenue decreased by **9.1% year-on-year to HK$265 million**, mainly due to the completion of two street cleaning service contracts[52](index=52&type=chunk) - Gross profit decreased by **39.6% year-on-year to HK$22.903 million**, with gross profit margin falling by **4.4 percentage points to 8.6%**, primarily due to increased long service payments[53](index=53&type=chunk) - Other income decreased by **81.9% year-on-year to HK$1.325 million**, mainly due to the cessation of government Anti-epidemic Fund and Employment Support Scheme subsidies[54](index=54&type=chunk) - Administrative expenses decreased by **3.6% year-on-year to HK$22.316 million**, mainly due to reduced staff welfare and insurance expenses[55](index=55&type=chunk) - Finance costs decreased by **22.6% year-on-year to HK$0.934 million**, mainly due to reduced interest on bank borrowings and finance leases[56](index=56&type=chunk) - Net profit significantly decreased by **97.8% year-on-year to HK$0.406 million**[57](index=57&type=chunk) [Dividends](index=19&type=section&id=%E8%82%A1%E6%81%AF) The Board did not recommend a dividend for the six months ended September 30, 2021, though a final dividend for the year ended March 31, 2021, was approved and fully paid in October 2021 - The Board did not recommend a dividend for the **six months ended September 30, 2021**[59](index=59&type=chunk) - The final dividend of **HK$1.5 cents per share** for the year ended March 31, 2021, was approved on August 5, 2021, and fully paid on October 20, 2021[59](index=59&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group maintains a sound financial position, primarily funded by operating income and bank borrowings, with a healthy current ratio of 1.88 despite a decrease in cash and an increase in bank borrowings - The Group maintains a **sound financial position**, with operations primarily funded by **operating activities income and bank borrowings**[60](index=60&type=chunk) Liquidity Indicators (As of September 30) | Indicator | Sep 30, 2021 (HK$ '000) | Mar 31, 2021 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 29,427 | 70,545 | -58.3 | | Total current assets | 175,508 | 170,783 | +2.8 | | Total current liabilities | 93,206 | 80,223 | +16.2 | | Current ratio | 1.88 times | 2.13 times | -11.7 | | Bank borrowings | 24,710 | 17,303 | +42.8 | | Lease liabilities | 16,956 | 20,159 | -15.9 | | Gearing ratio | 24.2% | 17.0% | +7.2 pp | - Secured bank borrowings bear interest at **floating rates (2.39% to 3.66%)**, and lease liabilities bear interest at **fixed annual rates (1.98% to 3.42%)**; all borrowings are denominated in HKD and repayable within five years[61](index=61&type=chunk) - The company possesses **sufficient liquidity** to meet its operational and capital requirements[62](index=62&type=chunk) [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) The Group utilizes bank credit facilities, including guarantees, to support service contract financial commitments, with directors deeming potential liabilities from personal injury claims immaterial due to adequate insurance coverage - The Group uses bank credit facilities (e.g., bank guarantees) to support **financial commitments for service contracts**[64](index=64&type=chunk) Contingent Liabilities Related Data (As of September 30) | Item | Sep 30, 2021 (HK$ '000) | Mar 31, 2021 (HK$ '000) | | :--- | :--- | :--- | | Pledged deposits | 54,197 | 33,125 | - Directors believe that potential liabilities arising from personal injury claims are **not material** and are adequately covered by insurance policies[65](index=65&type=chunk) [Capital Commitments](index=20&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of September 30, 2021, the Group had no capital commitments, consistent with the position as of March 31, 2021 - As of September 30, 2021, the Group had **no capital commitments**[66](index=66&type=chunk) [Exchange Rate Fluctuation Risk](index=20&type=section&id=%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) With all operations and financial instruments denominated in HKD, the Group's directors consider foreign exchange risk minimal and did not use derivative instruments for hedging during the period - The Group's business operations are conducted in Hong Kong, with transactions, monetary assets, and liabilities all denominated in **Hong Kong Dollars**[67](index=67&type=chunk) - No derivative instruments or financial tools were used to hedge foreign exchange risk during the reporting period[67](index=67&type=chunk) - Directors consider the **impact of foreign exchange risk to be minimal**[67](index=67&type=chunk) [Material Investments, Acquisitions and Disposals](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the Group did not undertake any material investments, acquisitions, or disposals - The Group had **no material investments, acquisitions, or disposals** during the reporting period[68](index=68&type=chunk) [Future Plans for Material Investments and Capital Assets](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Beyond the disclosures in this interim report, the Group currently has no other future plans for material investments and capital assets - Apart from what has been disclosed, the Group currently has **no other future plans for material investments and capital assets**[69](index=69&type=chunk) [Charges on the Group's Assets](index=21&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%BC%E8%A8%98) As of September 30, 2021, the Group's total interest-bearing debt was HK$41.666 million, with general banking facilities of HK$259.173 million secured by company guarantees and subsidiary assets Charges on Assets Related Data (As of September 30) | Item | Sep 30, 2021 (HK$ '000) | Mar 31, 2021 (HK$ '000) | | :--- | :--- | :--- | | Total interest-bearing debts | 41,666 | 37,462 | | General banking facilities | 259,173 | 173,800 | | Outstanding balance of secured bank borrowings | 24,710 | 16,040 | | Utilized performance bonds | 46,689 | 45,084 | | Lease liabilities | 16,956 | 20,159 | - General banking facilities are secured by a **company guarantee** and certain **cash deposits and trade receivables of a subsidiary**[71](index=71&type=chunk) - Lease liabilities are secured by a **charge over the leased assets by the lessor** and a **company guarantee**[72](index=72&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of September 30, 2021, the Group's employee count significantly decreased to 2,535, with total staff costs reducing to HK$213 million, and remuneration policies based on qualifications, position, and seniority Employees and Remuneration Data (As of September 30) | Indicator | Sep 30, 2021 | Mar 31, 2021 | | :--- | :--- | :--- | | Number of employees | 2,535 | 5,187 | Total Staff Costs (For the six months ended September 30) | Indicator | 2021 (HK$ '000) | 2020 (HK$ '000) | | :--- | :--- | :--- | | Total staff costs | 212,950 | 228,146 | - Remuneration policy is based on **qualifications, position, and seniority**, offering discretionary bonuses, retirement benefits, training subsidies, and a share option scheme[73](index=73&type=chunk) - An **annual appraisal system** is used to assess employee performance, serving as a basis for salary increments and promotions[73](index=73&type=chunk) [Disclosure of Interests](index=22&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) As of September 30, 2021, directors and substantial shareholders, including Messrs. Wong Chong Shing, Wong Man Shing, and Wong Chi Ho, collectively held 61.50% of the company's shares through controlled corporations and acting-in-concert agreements - Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho are deemed to collectively hold **61.50% of the company's shares** through an acting-in-concert deed[75](index=75&type=chunk)[78](index=78&type=chunk) - Mr. Wong Chong Shing holds **175,500,000 shares (29.25%)** through Man Shing Global Limited[78](index=78&type=chunk)[81](index=81&type=chunk) - Mr. Wong Man Shing holds **175,500,000 shares (29.25%)** through Lik Hang Investment Limited[78](index=78&type=chunk)[81](index=81&type=chunk) - Mr. Wong Chi Ho holds **18,000,000 shares (3.00%)** through Chun Shing Investment Limited[78](index=78&type=chunk)[81](index=81&type=chunk) - Ms. Wong Lai Man (spouse of Mr. Wong Man Shing) and Ms. Wan Wing Ting (spouse of Mr. Wong Chi Ho) are deemed to hold **369,000,000 shares (61.50%)** due to spousal interests[79](index=79&type=chunk)[81](index=81&type=chunk) [Competition and Conflicts of Interest](index=25&type=section&id=%E7%AB%B6%E7%88%AD%E5%8F%8A%E6%AC%8A%E7%9B%8A%E8%A1%9D%E7%AA%81) Directors confirm that as of the report date, no controlling shareholders, directors, or their close associates held interests in any business competing with the Group, and no other conflicts of interest existed - Directors confirm that controlling shareholders, directors, and their close associates **do not hold interests in any business competing with the Group's business**[82](index=82&type=chunk) - There are **no other conflicts of interest**[82](index=82&type=chunk) [Changes in Directors' Information](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) The company is unaware of any changes in directors' information since the 2021 annual report date that require disclosure under GEM Listing Rule 17.50A(1) - The company is **unaware of any changes in directors' information** since the 2021 annual report date that require disclosure[83](index=83&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Neither the company nor any of its subsidiaries **purchased, sold, or redeemed any of the company's listed securities** during the reporting period[84](index=84&type=chunk) [Compliance with the Corporate Governance Code](index=25&type=section&id=%E3%80%8A%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99%E3%80%8B%E7%9A%84%E9%81%B5%E5%AE%88) The company has adopted and complies with the principles and applicable code provisions of the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, aiming to maintain high governance standards and protect shareholder interests - The company has adopted and complies with the **Corporate Governance Code** as set out in Appendix 15 of the GEM Listing Rules[85](index=85&type=chunk) - Committed to maintaining **high standards of corporate governance practices**, enhancing transparency, and safeguarding shareholders' interests[85](index=85&type=chunk) [Code of Conduct for Directors' Securities Transactions](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E8%A1%8C%E7%82%BA%E5%AE%88%E5%88%99) The company has adopted GEM Listing Rules 5.48 to 5.67 as the code of conduct for directors' securities transactions, with all directors confirming full compliance during the reporting period - The company has adopted **GEM Listing Rules 5.48 to 5.67** as the code of conduct for directors' securities transactions[86](index=86&type=chunk) - All directors confirm **full compliance with the code of conduct** during the reporting period and up to the report date[86](index=86&type=chunk) [Share Option Scheme](index=25&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company's share option scheme, adopted on March 20, 2017, aims to attract, retain, and incentivize participants for future growth, with no options granted as of September 30, 2021 - The share option scheme was adopted on **March 20, 2017**, aiming to attract, retain, and incentivize talented participants to promote the Group's future development[87](index=87&type=chunk) - Eligible participants include **employees, executives, non-executive directors, consultants**, etc[87](index=87&type=chunk) - As of September 30, 2021, **no share options were granted** under the scheme[88](index=88&type=chunk) [Sufficiency of Public Float](index=26&type=section&id=%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F%E7%9A%84%E5%85%85%E8%B6%B3%E6%80%A7) Directors confirm that as of the report date, the company's issued shares maintain a sufficient public float, complying with the GEM Listing Rules' minimum 25% public float requirement - Directors confirm that the company's issued shares have a **sufficient public float**[90](index=90&type=chunk) - Complies with the **minimum 25% public float requirement** under the GEM Listing Rules[90](index=90&type=chunk) [Audit Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%98%E6%9C%83) The Audit Committee, comprising three independent non-executive directors with Mr. Au Yeung Tin Wah as chairman, assists the Board in overseeing financial reporting, internal controls, and audit adequacy, having reviewed the interim financial statements - The Audit Committee consists of **three independent non-executive directors**, with **Mr. Au Yeung Tin Wah as Chairman**[91](index=91&type=chunk) - Committee responsibilities include **monitoring financial reporting processes, assessing the effectiveness of internal controls, and reviewing audit adequacy**[91](index=91&type=chunk) - The unaudited condensed consolidated financial statements for the period have been **reviewed by the Audit Committee** and are deemed to comply with applicable accounting principles and GEM Listing Rules[91](index=91&type=chunk) [By Order of the Board](index=26&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This report is signed by Mr. Wong Chong Shing, Chairman and Executive Director, on November 11, 2021, with the Board comprising three executive and three independent non-executive directors - The report was signed by **Mr. Wong Chong Shing, Chairman and Executive Director**, on **November 11, 2021**[92](index=92&type=chunk) - The Board of Directors includes **Mr. Wong Chong Shing, Mr. Wong Man Shing, Mr. Wong Chi Ho (Executive Directors)** and **Mr. Li Pak Chung, Mr. Au Yeung Tin Wah, Mr. Chiu Ka Wai (Independent Non-Executive Directors)**[92](index=92&type=chunk)