[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)

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group reported a 3.3% revenue increase to HKD 151 million, yet gross profit fell 21.4% to HKD 15.33 million, and profit attributable to owners of the Company decreased 51.5% to HKD 4.07 million Summary of Consolidated Statement of Profit or Loss for Q1 2021 | Indicator | 2021 Q1 (HKD thousands) | 2020 Q1 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 151,108 | 146,335 | +3.3% | | Gross Profit | 15,331 | 19,497 | -21.4% | | Profit Before Tax | 4,640 | 9,422 | -50.8% | | Profit Attributable to Owners of the Company | 4,066 | 8,391 | -51.5% | | Basic Earnings Per Share (HK cents) | 0.68 | 1.40 | -51.4% | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to owners of the Company increased from HKD 101.5 million to HKD 105.6 million as of June 30, 2021, driven by the HKD 4.07 million profit for the period Summary of Changes in Equity | Item | As of June 30, 2021 (HKD thousands) | As of June 30, 2020 (HKD thousands) | | :--- | :--- | :--- | | Total Equity at Beginning of Period | 101,507 | 72,892 | | Profit for the Period | 4,066 | 8,391 | | Total Equity at End of Period | 105,573 | 81,283 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information & 2. Basis of Presentation](index=5&type=section&id=1.%20General%20Information%20%26%202.%20Basis%20of%20Presentation) The Company, an investment holding entity registered in the Cayman Islands, primarily provides environmental cleaning and property management services in Hong Kong, with financial statements prepared in HKD under HKFRS but not reviewed by auditors - The Group's principal activities include providing environmental cleaning solutions, such as street, building, bus, and ferry cleaning, and property management services[9](index=9&type=chunk) - The unaudited condensed consolidated results for the quarter have been reviewed by the Company's audit committee but not by the Group's auditor[13](index=13&type=chunk)[11](index=11&type=chunk) [3. Revenue](index=6&type=section&id=3.%20Revenue) Total revenue reached approximately HKD 151 million, with street cleaning solutions contributing HKD 101 million, while bus and ferry cleaning solutions saw a significant 78.5% year-on-year revenue increase Revenue Composition (By Business Segment) | Business Segment | 2021 Q1 (HKD thousands) | 2020 Q1 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Street Cleaning Solutions | 100,583 | 106,555 | -5.6% | | Building Cleaning Solutions | 20,835 | 22,826 | -8.7% | | Bus and Ferry Cleaning Solutions | 17,753 | 9,943 | +78.5% | | Other Cleaning Solutions | 9,941 | 4,937 | +101.4% | | Property Management Services | 1,996 | 2,074 | -3.8% | | **Total** | **151,108** | **146,335** | **+3.3%** | [4. Other Income, 5. Finance Costs, 6. Income Tax Expense, 7. Profit for the period](index=6&type=section&id=4.%20Other%20Income%2C%205.%20Finance%20Costs%2C%206.%20Income%20Tax%20Expense%2C%207.%20Profit%20for%20the%20period) Other income significantly decreased due to prior period government subsidies, finance costs declined by 24.4% from reduced bank borrowing interest, and total staff costs increased, while income tax expense decreased - Other income significantly decreased from **HKD 2.24 million** in the prior period to **HKD 0.21 million**, primarily due to the absence of government anti-epidemic fund and employment support scheme subsidies during the reporting period[16](index=16&type=chunk)[30](index=30&type=chunk) - Finance costs decreased by **24.4%** year-on-year to **HKD 0.465 million**, mainly attributable to reduced interest on bank borrowings[18](index=18&type=chunk)[32](index=32&type=chunk) - Total staff costs increased from **HKD 111 million** to **HKD 118 million**, primarily due to higher salaries, wages, and other benefits[20](index=20&type=chunk) [8. Earnings Per Share](index=8&type=section&id=8.%20Earnings%20Per%20Share) Basic and diluted earnings per share for the period were **HKD 0.68 cents**, representing a **51.4%** decrease from **HKD 1.40 cents** in the prior period, with no dilutive ordinary shares Earnings Per Share Calculation | Item | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Profit Attributable (HKD thousands) | 4,066 | 8,391 | | Weighted Average Number of Ordinary Shares (thousands) | 600,000 | 600,000 | | **Basic Earnings Per Share (HK cents)** | **0.68** | **1.40** | [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=9&type=section&id=Business%20Review%20and%20Outlook) The Group achieved stable contract sales growth, driven by new bus and ferry cleaning contracts and renewed street cleaning services, successfully securing new government contracts despite a subsidiary's bidding suspension, and remains confident in expanding market share - Contract sales growth was primarily driven by two newly awarded bus and ferry cleaning contracts, renewed street cleaning services, and new services provided to public crematoria[23](index=23&type=chunk) - Despite a key subsidiary's bidding suspension by the Food and Environmental Hygiene Department (FEHD), the Group successfully secured two FEHD service contracts through another subsidiary and anticipates more street cleaning contracts in Q4 2021[24](index=24&type=chunk) - Looking ahead, the Group remains confident in the environmental cleaning services industry outlook, committed to exploring new opportunities, expanding market share, and strengthening internal controls to maximize shareholder returns[26](index=26&type=chunk) [Financial Review](index=10&type=section&id=Financial%20Review) Revenue grew 3.3% to HKD 151 million, driven by bus and ferry cleaning, but gross profit margin decreased from 13.3% to 10.1% due to increased direct salaries, leading to a 51.5% decline in net profit to HKD 4.07 million - Revenue increased by **3.3%** year-on-year, primarily driven by an additional **HKD 7.81 million** from bus and ferry cleaning solutions and an increase of approximately **HKD 5 million** from other cleaning solutions[28](index=28&type=chunk) - Gross profit and gross profit margin decreased by **21.4%** and **3.2 percentage points** respectively, mainly due to an increase of approximately **HKD 6.65 million** in direct salaries during the reporting period[29](index=29&type=chunk) - Profit attributable to owners of the Company decreased by **51.5%** year-on-year from **HKD 8.39 million** to **HKD 4.07 million**, due to lower gross profit and the base effect of government subsidies in the prior period[34](index=34&type=chunk) [Dividend](index=11&type=section&id=Dividend) The Board does not recommend a dividend for the current reporting period but has approved a final dividend of **HKD 1.5 cents** per share for the year ended March 31, 2021 - The Board does not recommend a dividend for the current reporting period[35](index=35&type=chunk) - The final dividend of **HKD 1.5 cents** per share for the year ended March 31, 2021, has been approved by shareholders and is expected to be paid on or about October 20, 2021[35](index=35&type=chunk) [Corporate Governance and Other Disclosures](index=11&type=section&id=Corporate%20Governance%20and%20Other%20Disclosures) [Disclosure of Interests](index=11&type=section&id=Disclosure%20of%20Interests) As of June 30, 2021, controlling shareholders Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho were deemed to jointly hold **61.50%** of the Company's shares due to an acting in concert agreement Directors' and Chief Executive's Interests in Shares (Long Positions) | Director | Capacity | Number of Ordinary Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Wong Chong Shing | Interest in controlled corporation; Interest of person acting in concert | 369,000,000 | 61.50% | | Mr. Wong Man Shing | Interest in controlled corporation; Interest of person acting in concert | 369,000,000 | 61.50% | | Mr. Wong Chi Ho | Interest in controlled corporation; Interest of person acting in concert | 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, and are therefore deemed to be interested in each other's shares under the Securities and Futures Ordinance[39](index=39&type=chunk) [Compliance and Internal Control](index=14&type=section&id=Compliance%20and%20Internal%20Control) The Company complied with the Corporate Governance Code and directors' securities transaction code, with its audit committee, composed of three independent non-executive directors, reviewing the quarterly financial statements, and no share options granted since the scheme's adoption - During the reporting period, the Company complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[44](index=44&type=chunk) - No share options have been granted by the Company since the adoption of the share option scheme up to June 30, 2021[48](index=48&type=chunk) - The audit committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the quarter[50](index=50&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」）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 ...

Financial Performance - For the three months ended December 31, 2020, the company's revenue was HKD 140,872,000, a decrease of 7.5% compared to HKD 152,564,000 for the same period in 2019[4] - For the nine months ended December 31, 2020, the company's revenue increased to HKD 432,724,000, representing an increase of 10% from HKD 393,551,000 in the same period of 2019[4] - The gross profit for the three months ended December 31, 2020, was HKD 19,185,000, down 23.2% from HKD 24,961,000 in 2019[4] - The net profit for the nine months ended December 31, 2020, was HKD 25,951,000, which is an increase of 98.5% compared to HKD 13,097,000 for the same period in 2019[4] - The basic and diluted earnings per share for the nine months ended December 31, 2020, was HKD 4.33, compared to HKD 2.18 for the same period in 2019, reflecting a 98.2% increase[4] - The group recorded revenue of approximately HKD 432,724,000 for the reporting period, an increase of about HKD 39,173,000 or 10.0% compared to HKD 393,551,000 in the same period of 2019[33] - The group recorded a net profit attributable to shareholders of approximately HKD 25,951,000, an increase of about 98.1% compared to HKD 13,097,000 in the same period of 2019[39] Revenue Breakdown - The revenue from street cleaning solutions for the nine months ended December 31, 2020, was HKD 311,689,000, an increase of 14.6% from HKD 272,063,000 in 2019[14] - The revenue from building cleaning solutions decreased to HKD 64,215,000 for the nine months ended December 31, 2020, down from HKD 69,591,000 in 2019, a decline of 7.1%[14] Equity and Shareholding - The company reported a total equity of HKD 98,843,000 as of December 31, 2020, up from HKD 71,927,000 as of December 31, 2019[6] - As of December 31, 2020, Mr. Huang Chuang Cheng, Mr. Huang Wan Cheng, and Mr. Huang Zhi Hao each hold 369,000,000 shares, representing 61.50% of the company's equity[42] - Wan Cheng Global Holdings Limited and Li Hang Investment Limited each hold 175,500,000 shares, accounting for 29.25% of the company's equity[45] - The total number of shares held by Mr. Huang Wan Cheng includes 175,500,000 shares from Li Hang Investment Limited and 193,500,000 shares as a concert party with Mr. Huang Chuang Cheng and Mr. Huang Zhi Hao[46] - Mr. Huang Zhi Hao's total shareholding of 369,000,000 shares includes 18,000,000 shares from Jun Cheng Investment Limited and 351,000,000 shares as a concert party with Mr. Huang Wan Cheng and Mr. Huang Chuang Cheng[46] Expenses and Costs - Total employee costs increased to HKD 338,306,000 for the nine months ended December 31, 2020, compared to HKD 305,274,000 in the same period of 2019, reflecting a growth of 10.8%[20] - Interest expenses on bank loans decreased to HKD 721,000 for the nine months ended December 31, 2020, down from HKD 696,000 in the same period of 2019[18] - The total financing costs for the nine months ended December 31, 2020, were HKD 1,618,000, a decrease from HKD 1,828,000 in the same period of 2019[18] - Administrative expenses increased from approximately HKD 33,790,000 to about HKD 38,281,000, an increase of about HKD 4,491,000[37] - Financing costs decreased by approximately HKD 210,000 or 11.5% from about HKD 1,828,000 to approximately HKD 1,618,000[38] Other Income and Government Support - The company reported a total of HKD 12,333,000 in other income for the nine months ended December 31, 2020, compared to HKD 420,000 in the same period of 2019[16] - Other income rose significantly from approximately HKD 420,000 to about HKD 12,333,000, mainly due to government subsidies related to pandemic response and employment support totaling approximately HKD 12,139,000[36] - Government subsidies for epidemic prevention amounted to HKD 2,340,000 for the nine months ended December 31, 2020[16] Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency to protect shareholder interests[50] - The audit committee consists of three independent non-executive directors, ensuring oversight of the financial reporting process[56] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[49] - The company has not granted any stock options under the stock option plan as of December 31, 2020[54] - The company confirms that it has sufficient public float, complying with the minimum public float requirement of 25% under the GEM Listing Rules[55] Business Strategy - The company continues to focus on providing environmental cleaning solutions, including street cleaning, building cleaning, and waste management services[8] - The company continues to seek new business opportunities to strengthen its market leadership in the cleaning industry[25] - The group plans to seek new government contracts through another subsidiary to mitigate the impact of the suspension of bidding for cleaning service contracts[32] - The group aims to explore new business opportunities from various government departments and private organizations to expand its customer base and generate further revenue[32] - The group will continue to pursue diversified investment opportunities to maximize shareholder returns[32] Financial Review - The financial results are unaudited and have been reviewed by the company's audit committee[12] - The deferred tax expense for the nine months ended December 31, 2020, was a credit of HKD 59,000, compared to a charge of HKD 102,000 in the same period of 2019[19]

[Company Information](index=4&type=section&id=Company%20Information) The report discloses fundamental company information including board members, committee compositions, registered office, principal place of business, and main bankers - The report discloses fundamental company information including board members, committee compositions, registered office, principal place of business, and main bankers[5](index=5&type=chunk)[6](index=6&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended September 30, 2020, the company's revenue grew by **21.1%** year-on-year, gross profit increased by **51.2%**, and profit for the period surged by **279.7%** to **HK$18,141 thousand** due to a significant increase in other income from government subsidies, with basic earnings per share reaching **3.02 HK cents** Consolidated Statement of Profit or Loss Summary (For the six months ended September 30) | Metric | 2020 (HK$ thousands) | 2019 (HK$ thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 291,852 | 240,987 | +21.1% | | Gross Profit | 37,891 | 25,062 | +51.2% | | Profit Before Tax | 20,878 | 5,408 | +286.1% | | Profit for the Period | 18,141 | 4,778 | +279.7% | | Basic Earnings Per Share (HK cents) | 3.02 | 0.80 | +277.5% | [Unaudited Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2020, the company's total assets were **HK$209,281 thousand** and total liabilities were **HK$118,248 thousand**, with current assets significantly increasing driven by trade receivables and cash, while current liabilities rose due to increased borrowings, leading to a decrease in the current ratio from **1.94x** to **1.71x** Consolidated Statement of Financial Position Summary | Metric | September 30, 2020 (HK$ thousands) | March 31, 2020 (HK$ thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 25,856 | 28,326 | | Current Assets | 183,425 | 139,041 | | **Total Assets** | **209,281** | **167,367** | | **Liabilities and Equity** | | | | Current Liabilities | 107,211 | 71,516 | | Non-current Liabilities | 11,037 | 22,959 | | **Total Liabilities** | **118,248** | **94,475** | | **Total Equity** | **91,033** | **72,892** | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended September 30, 2020, total equity increased from **HK$72,892 thousand** to **HK$91,033 thousand**, with the increase entirely attributable to the **HK$18,141 thousand** profit recorded during the period - Total equity increased by **HK$18,141 thousand** during the period, from **HK$72,892 thousand** to **HK$91,033 thousand**, with the increase stemming from profit for the period[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, the company's net cash and cash equivalents increased by **HK$17,194 thousand**, with operating cash flow turning positive due to improved profitability, and net cash inflow from financing activities of **HK$15,342 thousand** supporting business expansion Condensed Consolidated Statement of Cash Flows Summary (For the six months ended September 30) | Metric | 2020 (HK$ thousands) | 2019 (HK$ thousands) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 2,718 | (14,912) | | Net Cash (Used in) Investing Activities | (866) | (33,132) | | Net Cash From Financing Activities | 15,342 | 27,514 | | Net Increase (Decrease) in Cash and Cash Equivalents | 17,194 | (20,530) | | Cash and Cash Equivalents at End of Period | 57,348 | 12,918 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's principal accounting policies, revenue composition, other income sources, and expense breakdowns, highlighting significant growth in street cleaning solutions revenue and a substantial increase in other income from government anti-epidemic and employment support subsidies, with no dividends proposed for the period [General Information](index=9&type=section&id=1.%20General%20Information) The company is an investment holding company whose subsidiaries primarily provide comprehensive environmental cleaning solutions in Hong Kong, including street, building, bus, and ferry cleaning services - The Group's principal business is providing environmental cleaning solutions, including street cleaning, building cleaning, bus and ferry cleaning, refuse collection and waste disposal, and pest control[15](index=15&type=chunk) [Revenue](index=10&type=section&id=3.%20Revenue) During the reporting period, total revenue increased by **21.1%** to **HK$291,852 thousand**, primarily driven by a **31.8%** year-on-year growth in the core 'Street Cleaning Solutions' segment, while 'Building Cleaning' and 'Bus and Ferry Cleaning' revenues declined Revenue Composition (For the six months ended September 30) | Business Segment | 2020 (HK$ thousands) | 2019 (HK$ thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Street Cleaning Solutions | 211,641 | 160,603 | +31.8% | | Building Cleaning Solutions | 44,397 | 46,007 | -3.5% | | Bus and Ferry Cleaning Solutions | 19,807 | 24,009 | -17.5% | | Others | 16,007 | 10,368 | +54.4% | | **Total** | **291,852** | **240,987** | **+21.1%** | [Other Income](index=10&type=section&id=4.%20Other%20Income) Other income surged from **HK$361 thousand** to **HK$7,333 thousand** during the period, primarily due to **HK$7,161 thousand** in subsidies from the Hong Kong Government's Anti-epidemic Fund and Employment Support Scheme - The significant increase in other income was primarily due to **HK$2,331 thousand** from the Hong Kong Government's Anti-epidemic Fund and **HK$4,830 thousand** from the Employment Support Scheme during the reporting period[23](index=23&type=chunk) [Finance Costs](index=11&type=section&id=5.%20Finance%20Costs) Finance costs slightly increased from **HK$1,081 thousand** to **HK$1,207 thousand** year-on-year, primarily due to higher interest on bank borrowings - Finance costs primarily comprise interest on bank borrowings and lease liabilities, with interest on bank borrowings increasing from **HK$267 thousand** to **HK$612 thousand**[25](index=25&type=chunk) [Income Tax Expense](index=11&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense increased from **HK$630 thousand** to **HK$2,737 thousand** year-on-year, driven by a significant rise in profit before tax, with eligible entities in Hong Kong benefiting from the two-tiered profits tax regime - Hong Kong profits tax adopts a two-tiered system, with a tax rate of **8.25%** for the first **HK$2 million** of assessable profits and **16.5%** for profits exceeding this amount[26](index=26&type=chunk) [Earnings Per Share](index=13&type=section&id=8.%20Earnings%20Per%20Share) For the reporting period, profit used for basic earnings per share calculation was **HK$18,141 thousand**, resulting in basic and diluted earnings per share of **3.02 HK cents** based on **600 million** weighted average ordinary shares outstanding, a significant increase from **0.80 HK cents** in the prior year - Basic and diluted earnings per share were **3.02 HK cents**, compared to **0.80 HK cents** in the prior period, with no potential dilutive ordinary shares during the reporting period[8](index=8&type=chunk)[29](index=29&type=chunk) [Dividends](index=13&type=section&id=9.%20Dividends) The Board did not recommend the payment of an interim dividend for the six months ended September 30, 2020 - The Group did not recommend the payment of any dividends for the six months ended September 30, 2020, and 2019[30](index=30&type=chunk) [Trade Receivables](index=14&type=section&id=11.%20Trade%20Receivables) As of September 30, 2020, trade receivables significantly increased to **HK$79,156 thousand** from **HK$53,055 thousand** as of March 31, 2020, with the majority of receivables aged within **60 days** - Trade receivables increased from **HK$53,055 thousand** to **HK$79,156 thousand**, with **94.7%** of the amounts aged within **60 days**[33](index=33&type=chunk)[34](index=34&type=chunk) [Trade Payables](index=15&type=section&id=12.%20Trade%20Payables) As of September 30, 2020, trade payables slightly decreased to **HK$7,191 thousand** from **HK$7,979 thousand** as of March 31, 2020, with approximately **73.6%** of payables aged within **60 days** - Trade payables decreased from **HK$7,979 thousand** to **HK$7,191 thousand**, with an average credit period of **60 days**[36](index=36&type=chunk)[37](index=37&type=chunk) [Related Party Transactions](index=16&type=section&id=14.%20Related%20Party%20Transactions) During the reporting period, the Group engaged in related party transactions, primarily involving lease payments to Director Mr. Wong Chong Shing and consultancy fees to subsidiary director Mr. Lo Wing Keung, with key management personnel short-term benefits amounting to **HK$2,578 thousand** - During the reporting period, lease payments of **HK$202 thousand** were made to Director Mr. Wong Chong Shing, and consultancy fees of **HK$180 thousand** were paid to a subsidiary director[40](index=40&type=chunk) - Short-term benefits for directors and other key management personnel amounted to **HK$2,578 thousand**, an increase from **HK$1,920 thousand** in the prior period[41](index=41&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=17&type=section&id=Business%20Review%20and%20Outlook) During the reporting period, the company achieved significant sales growth driven by new government street cleaning contracts, with minimal financial impact from the COVID-19 pandemic; however, a major risk emerged as key subsidiary 'Man Shing Cleaning' was suspended from bidding on FEHD contracts for five years, which is expected to adversely affect future revenue and profit, prompting the company to seek legal review and plan for other subsidiaries to participate in tenders [Business Review](index=17&type=section&id=Business%20Review) The Group achieved significant contract sales growth driven by several major street cleaning service contracts secured in late 2019 and early 2020, with its business portfolio covering various cleaning sectors, and newly acquired subsidiary 'Kei Tak Yan' contributing revenue and profit, while the COVID-19 pandemic had operational impacts but no material financial repercussions as of the reporting date - Business growth was primarily driven by street cleaning service contracts secured for Kowloon City and Wong Tai Sin districts in October 2019 and March 2020[43](index=43&type=chunk) - Kei Tak Yan Property Management Limited, a wholly-owned subsidiary acquired in October 2019, contributed approximately **HK$4,129 thousand** in revenue and **HK$1,144 thousand** in profit before tax for the six months ended June 30, 2020[45](index=45&type=chunk) [Latest Business Development](index=18&type=section&id=Latest%20Business%20Development) The company disclosed a significant adverse development: its wholly-owned subsidiary 'Man Shing Cleaning Services Limited' was suspended from bidding on FEHD cleaning service contracts for five years starting June 19, 2020, due to a breach of the Occupational Safety and Health Ordinance, which the Board expects to adversely impact the Group's revenue and profit given its status as a major revenue contributor - Core subsidiary 'Man Shing Cleaning' was suspended by the Hong Kong Food and Environmental Hygiene Department (FEHD) from bidding on cleaning service contracts for five years due to a breach of safety regulations[47](index=47&type=chunk) - The company is seeking a review of the bidding suspension decision and may consider legal action, while also planning for other subsidiaries to participate in future FEHD tenders to mitigate the impact[47](index=47&type=chunk)[48](index=48&type=chunk) [Outlook](index=18&type=section&id=Outlook) Facing the challenge of its key subsidiary's bidding suspension, the company will strive to secure new FEHD tenders through other subsidiaries, actively explore new business opportunities from various government departments and private sectors to expand its client base, and continue to seek diversified investment opportunities to maximize shareholder returns - Future strategies include: 1) continuing to bid for FEHD contracts through other subsidiaries; 2) expanding clients to other government departments and private sectors; and 3) seeking diversified investment opportunities[49](index=49&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) During the reporting period, the Group demonstrated strong financial performance with revenue growing by **21.1%** year-on-year, primarily from new street cleaning contracts, gross margin improving from **10.4%** to **13.0%** due to higher-margin projects and efficiency gains, and a substantial increase in other income from government subsidies, collectively leading to a **280%** year-on-year surge in net profit [Revenue](index=18&type=section&id=Revenue) Revenue increased by **21.1%** year-on-year to **HK$291,852 thousand**, primarily driven by new street cleaning contracts for Kowloon City and Wong Tai Sin districts, which commenced in October 2019 and March 2020, contributing approximately **HK$87,000 thousand** in revenue during the period and offsetting the impact of some expired contracts - Revenue increased by approximately **HK$50,865 thousand** (**+21.1%**) year-on-year, primarily due to several new FEHD street cleaning contracts[50](index=50&type=chunk) [Gross Profit and Gross Margin](index=19&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by **51.2%** year-on-year to **HK$37,891 thousand**, with gross margin improving from **10.4%** to **13.0%**, primarily due to increased contributions from higher-margin private and government projects, enhanced team efficiency, and cost control - Gross margin improved from **10.4%** to **13.0%**, primarily due to increased contributions from higher-margin projects and enhanced efficiency[52](index=52&type=chunk) [Other Income](index=19&type=section&id=Other%20Income) Other income significantly increased from **HK$361 thousand** to **HK$7,333 thousand**, primarily driven by approximately **HK$2,331 thousand** from the Hong Kong Government's Anti-epidemic Fund and **HK$4,830 thousand** from the Employment Support Scheme - The increase in other income primarily stemmed from two Hong Kong Government subsidies, totaling approximately **HK$7,161 thousand**[53](index=53&type=chunk) [Administrative Expenses](index=19&type=section&id=Administrative%20Expenses) Administrative expenses increased by **HK$4,205 thousand** year-on-year to **HK$23,139 thousand**, primarily due to higher staff costs, vehicle depreciation and related expenses, and increased insurance premiums for new contracts, driven by business expansion - The increase in administrative expenses primarily resulted from higher staff costs, vehicle depreciation and related motor expenses, and increased insurance premiums for new contracts[54](index=54&type=chunk) [Net Profit](index=19&type=section&id=Net%20Profit) Driven by revenue growth, improved gross margin, and government subsidies, net profit attributable to owners of the company reached **HK$18,141 thousand**, a significant increase of approximately **280%** from **HK$4,778 thousand** in the prior period - Net profit for the reporting period was approximately **HK$18,141 thousand**, an increase of approximately **280%** from **HK$4,778 thousand** in the prior period[56](index=56&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=20&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains a sound financial position and healthy liquidity, with cash and bank balances increasing to **HK$57,348 thousand** and a current ratio of **1.71x** as of September 30, 2020; bank borrowings increased to support business expansion, leading to a rise in the gearing ratio from **27.7%** to **41.0%** Key Financial Ratios | Metric | September 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | Cash and Bank Balances (HK$ thousands) | 57,348 | 40,154 | | Current Ratio | 1.71x | 1.94x | | Gearing Ratio | 41.0% | 27.7% | - Bank borrowings increased by approximately **84.9%** from **HK$20,181 thousand** to **HK$37,322 thousand**, primarily for business expansion[59](index=59&type=chunk) [Other Financial Information](index=21&type=section&id=Other%20Financial%20Information) The Group utilizes bank credit facilities, such as bank guarantees, to support service contract fulfillment, collateralizing certain deposits for this purpose; directors believe existing insurance adequately covers personal injury claims, posing no material contingent liabilities, and there were no significant investments or capital commitments during the reporting period, with minimal foreign exchange risk [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) The Group issued bank guarantees for service contract fulfillment, collateralizing approximately **HK$30,119 thousand** in deposits; additionally, while facing personal injury claims, directors believe most are covered by insurance, posing no material liabilities - As of September 30, 2020, deposits pledged for bank guarantees and other financing amounted to approximately **HK$30,119 thousand**[62](index=62&type=chunk) [Material Investments, Acquisitions and Disposals](index=21&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) During the reporting period, the Group did not undertake any material investments, acquisitions, or disposals, nor does it have any related future plans - The Group had no material investments, acquisitions, or disposals during the reporting period, and currently has no plans for any significant investments or capital assets[66](index=66&type=chunk)[67](index=67&type=chunk) [Charges on the Group's Assets](index=22&type=section&id=Charges%20on%20the%20Group%27s%20Assets) As of September 30, 2020, the Group's total interest-bearing debts amounted to approximately **HK$55,881 thousand**; general bank facilities are secured by company guarantees, cash deposits of subsidiaries, and trade receivables, while lease liabilities are secured by charges over leased assets and company guarantees - As of September 30, 2020, the Group's total interest-bearing debts amounted to approximately **HK$55,881 thousand**, with general bank facilities totaling **HK$196.6 million**[69](index=69&type=chunk) [Other Disclosures](index=22&type=section&id=Other%20Disclosures) [Employees and Remuneration Policy](index=22&type=section&id=Employees%20and%20Remuneration%20Policy) As of September 30, 2020, the Group had approximately **2,716** employees, with total staff costs for the reporting period amounting to approximately **HK$228 million**, an increase from the prior year; the company's remuneration policy is based on qualifications, position, and seniority, supplemented by discretionary bonuses and share option schemes to incentivize staff - As of September 30, 2020, the Group had approximately **2,716** employees, with total staff costs (including directors' emoluments) for the reporting period amounting to approximately **HK$228 million**[71](index=71&type=chunk) [Interim Dividend](index=22&type=section&id=Interim%20Dividend) The Board did not recommend the payment of an interim dividend for the six months ended September 30, 2020 - The Board did not recommend the payment of an interim dividend, consistent with no dividend payment in the prior period[72](index=72&type=chunk) [Disclosure of Interests](index=23&type=section&id=Disclosure%20of%20Interests) Controlling shareholders Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho, acting in concert, collectively hold **61.50%** of the company's shares, with the report detailing the shareholding interests of directors and substantial shareholders - Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho are parties acting in concert and are deemed to jointly hold **369,000,000** shares of the company, representing **61.50%** of the total share capital[74](index=74&type=chunk)[75](index=75&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) The company has adopted and complied with the Corporate Governance Code in the GEM Listing Rules; the Audit Committee, comprising three independent non-executive directors, has reviewed the interim financial statements, and directors confirm continuous compliance with the Model Code for Securities Transactions by Directors during the reporting period - The company has established an Audit Committee, comprising three independent non-executive directors, which has reviewed the unaudited condensed consolidated financial statements[88](index=88&type=chunk) - Directors confirm that as of the reporting date, the company's issued shares maintained sufficient public float of not less than **25%**[87](index=87&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」）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 ...

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。GEM的較高風險及其他特色表明其 為一個更適合專業投資者及其他經驗豐富的投資者的市場。 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 ...

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。 鑒 於GEM上市公司一般為中小型公司，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 重 ...

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 萬 成 環 球 控 股 有 限 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 重 大 方 面 均 屬 準 確 及 完 整，且 無 誤 導 或 欺 詐 成 分，及 ...