Financial Performance - The company's revenue for the three months ended June 30, 2021, was HKD 1,745,000, a decrease of 79% compared to HKD 8,362,000 for the same period in 2020[5] - Gross profit for the same period was HKD 421,000, down 55% from HKD 931,000 year-over-year[5] - The company reported a loss before tax of HKD 3,784,000, compared to a loss of HKD 7,627,000 in the previous year, indicating a 50% improvement in losses[5] - Basic and diluted loss per share was HKD 0.29, compared to HKD 0.59 for the same period in 2020[5] - The total comprehensive loss for the period was HKD 3,784,000, compared to HKD 7,627,000 in the prior year, showing a reduction of 50%[5] - The net loss for the three months ended June 30, 2021, was approximately 3,800,000 HKD, a reduction from a net loss of approximately 7,600,000 HKD for the same period in 2020[24] - The gross profit decreased by approximately 500,000 HKD or 54.7% to about 400,000 HKD for the three months ended June 30, 2021, compared to approximately 900,000 HKD for the same period in 2020[31] - The company recorded a net loss of approximately HKD 3,800,000 for the three months ended June 30, 2021, compared to a net loss of approximately HKD 7,600,000 for the same period in 2020, representing a 50% improvement in losses year-over-year[37] Expenses and Cost Management - Administrative expenses decreased to HKD 4,002,000 from HKD 8,585,000, reflecting a reduction of 53%[5] - The service costs decreased by approximately 6,100,000 HKD or 82% to about 1,300,000 HKD for the three months ended June 30, 2021, compared to approximately 7,400,000 HKD for the same period in 2020[30] - The administrative expenses decreased by approximately 4,500,000 HKD or 53% to about 4,000,000 HKD for the three months ended June 30, 2021, compared to approximately 8,600,000 HKD for the same period in 2020[33] - The financing costs decreased by approximately 500,000 HKD or 66.8% to about 200,000 HKD for the three months ended June 30, 2021, compared to approximately 700,000 HKD for the same period in 2020[35] - The company has implemented cost-cutting measures to minimize cash flow and general expenses while controlling capital expenditures[26] Business Operations and Strategy - The company continues to focus on providing design, procurement, and installation services for water circulation systems, which remains its core business[8] - The company anticipates that the business environment in Hong Kong and Macau will continue to be affected by COVID-19, leading to challenges in obtaining new projects[24] - The company plans to explore opportunities for business diversification and expansion in Hong Kong, Macau, and mainland China[26] Shareholder and Corporate Governance - The company’s total equity as of June 30, 2021, was HKD 43,714,000, down from HKD 68,806,000 a year earlier[6] - The company did not declare or recommend any dividends for the three months ended June 30, 2021, consistent with the same period in 2020[20] - The company has not granted, exercised, or allowed any stock options to expire or lapse during the three months ended June 30, 2021[49] - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended June 30, 2021[53] - The company’s major shareholder, Mr. Lan, holds 652,290,000 shares, representing 50.18% of the total shares[44] - Ms. Chan holds 243,750,000 shares, representing 18.75% of the total shares[46] - The company has adopted a code of conduct regarding securities trading by directors, with no violations reported during the reporting period[54] - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15, ensuring proper regulation of business activities and decision-making processes[55] - The company has maintained good corporate governance standards and procedures to enhance accountability and transparency, safeguarding shareholder interests[55] - The company has not identified any business or interests that may compete with its operations from its directors or controlling shareholders[61] Management and Oversight - The company has appointed Mr. Li Guan Yan as the Chief Financial Officer and Company Secretary effective from July 15, 2021[58] - The Audit Committee has reviewed the unaudited consolidated results for the three months ended June 30, 2021, and confirmed compliance with applicable accounting standards and GEM Listing Rules[62] - The Audit Committee consists of three independent non-executive directors, ensuring effective oversight of financial reporting and risk management processes[62] - The company has committed to providing monthly updates to the board regarding performance, financial condition, and outlook, although there was a gap in updates due to the transition of the CFO[58] - The company believes that the dual role of the Chairman and CEO is in the best interest of effective management and business development[55] Acknowledgments - The company expresses gratitude to customers, subcontractors, business partners, and shareholders for their continued support[64]

Financial Performance - The total revenue for the fiscal year ended March 31, 2021, decreased by approximately HKD 60.5 million or 69.5% to about HKD 26.6 million from approximately HKD 87.1 million for the fiscal year ended March 31, 2020[8]. - The net loss increased from approximately HKD 21.9 million for the fiscal year ended March 31, 2020, to approximately HKD 28.9 million for the fiscal year ended March 31, 2021[9]. - Total revenue decreased by approximately HKD 60.5 million or 69.5% to about HKD 26.6 million for the year ended March 31, 2021, compared to approximately HKD 87.1 million for the previous year[15]. - Net loss increased by approximately HKD 7 million or 32.1% to about HKD 28.9 million for the year ended March 31, 2021, from approximately HKD 21.9 million for the previous year[24]. - Gross profit decreased by approximately HKD 4.8 million or 67.2% to about HKD 2.4 million for the year ended March 31, 2021, from approximately HKD 7.2 million for the previous year[18]. - Other income increased from approximately HKD 363,000 to about HKD 1.5 million, mainly due to subsidies received under the Employment Support Scheme[20]. - Administrative expenses increased by approximately HKD 3.9 million or 14.7% to about HKD 30.2 million for the year ended March 31, 2021, from approximately HKD 26.3 million for the previous year[21]. - Financing costs decreased by approximately HKD 400,000 or 12.1% to about HKD 2.6 million for the year ended March 31, 2021, compared to approximately HKD 3 million for the previous year[22]. - Total assets decreased to approximately HKD 117.6 million as of March 31, 2021, from approximately HKD 155.1 million as of March 31, 2020[28]. - The debt-to-equity ratio increased from approximately 55.6% to about 77.1% due to the net loss for the year ended March 31, 2021[29]. - The company reported a reserve available for distribution to shareholders of approximately HKD 26,201,000 as of March 31, 2021, down from HKD 58,954,000 in 2020[173]. - The company did not declare a final dividend for the year ended March 31, 2021, consistent with the previous year[168]. Business Environment and Strategy - The company anticipates that the ongoing COVID-19 pandemic will continue to impact the business environment in Hong Kong and Macau in the foreseeable future[10]. - The company plans to explore business diversification or expansion into Hong Kong, Macau, and mainland China to maintain sustainable growth[10]. - The company acknowledges challenges such as high labor costs and skilled labor shortages due to travel restrictions caused by the pandemic[10]. - The company remains optimistic about the long-term business prospects in Hong Kong and Macau despite the adverse factors affecting financial performance, especially in the first half of the fiscal year 2021/2022[10]. - The company will closely monitor the economic environment and continuously assess its business strategies to adapt to challenging market conditions[10]. Corporate Governance - The board consists of six directors, including four executive directors and two independent non-executive directors, with a gender diversity of 71% male and 29% female[48][53]. - The company has complied with all applicable corporate governance code provisions during the reporting period, except for the separation of the roles of Chairman and CEO[46][42]. - The board acknowledges the importance of diversity in enhancing corporate governance and improving board efficiency[52]. - The company has adopted a board diversity policy to ensure a balanced composition of skills and experiences among board members[54]. - The company has established a remuneration committee to review the overall remuneration policy and structure for all directors and senior management[200]. - The company has adopted a nomination policy to enhance the nomination process and guide the selection of board members[74]. - The company emphasizes the importance of continuous professional development for directors to enhance their knowledge and skills[63]. - The company has not identified any violations of the securities trading code by directors during the fiscal year[61]. - The company is committed to maintaining high standards of corporate governance and has established various committees to oversee specific matters[66]. Employee and Labor Practices - As of March 31, 2021, the group employed 29 employees, a decrease from 37 employees in 2020, with total employee costs amounting to approximately HKD 10.4 million, down from HKD 16.2 million in 2020[40]. - The employee remuneration policy includes competitive salaries and performance-based bonuses, along with retirement and medical benefits[40]. - The company emphasizes equal employment opportunities and adheres to labor laws, ensuring fair treatment in hiring and promotion processes[124]. - The company has complied with all employee compensation and welfare regulations, with no employment disputes or violations reported during the reporting period[128]. - The company has established a safe and healthy work environment, with no recorded incidents of workplace injuries or health hazards during the reporting period[130]. - The company emphasizes continuous employee development and training, supporting participation in internal and external training programs[132]. - The management structure of the company remains stable, indicating a phase of seeking potential business growth[125]. Environmental Responsibility - The company is committed to sustainable development and aims to minimize environmental impact during operations[100]. - Total greenhouse gas emissions decreased by 10.7% from 29.59 tons in 2019/20 to 26.41 tons in 2020/21[103]. - Indirect emissions from electricity usage reduced by 10.8%, from 29.56 tons in 2019/20 to 26.38 tons in 2020/21[103]. - The company has implemented measures to monitor and reduce energy consumption in its Hong Kong office to lower operational costs and greenhouse gas emissions[106]. - The company has established policies to ensure responsible business practices and compliance with legal and regulatory standards[100]. - The company has implemented waste management practices prioritizing reduction, reuse, and recycling, with construction waste being sorted and recycled whenever possible[109]. - The company has engaged with subcontractors to manage emissions effectively, demonstrating a proactive approach to environmental responsibility[113]. - The company continues to monitor resource usage closely, particularly in energy and water, to enhance efficiency and reduce consumption[116]. Risk Management - The company emphasizes the importance of effective internal controls and risk management to protect shareholder interests, with regular reviews conducted by the audit committee[79]. - The company has established a series of risk management policies and measures to identify key risks associated with its operations and market environment[79]. - The board believes that the internal control systems are effective and sufficient for the current business model and environment as of March 31, 2021[81]. Shareholder Engagement - The company encourages ongoing communication with shareholders through various channels, including announcements and reports[93]. - The next annual general meeting is scheduled for September 3, 2021, with notifications to be sent at least 20 business days in advance[87]. - The company held its annual general meeting on August 28, 2020, to seek shareholder approval for various matters, including the re-election of directors[87]. Quality Assurance - The company has implemented strict quality assurance measures for its water circulation systems, ensuring compliance with government regulations and reducing risks associated with defective products[141]. - There were no quality claims reported during the reporting period that adversely affected the company's business[142]. Community Engagement - Community engagement is recognized as vital for long-term development, with the company supporting employee volunteerism and investing in youth education through internship programs[149].

Financial Performance - For the nine months ended December 31, 2020, the company reported total revenue of HKD 22,176,000, a decrease of 72.5% compared to HKD 80,431,000 for the same period in 2019[5] - The gross profit for the nine months was HKD 2,250,000, down 69.3% from HKD 7,338,000 in the previous year[5] - The company incurred a loss before tax of HKD 13,471,000 for the nine months, compared to a loss of HKD 8,428,000 in the same period of 2019, representing a 59.4% increase in losses[5] - The basic and diluted loss per share for the nine months was HKD 1.04, compared to HKD 0.65 for the same period in 2019, indicating a 60% increase in loss per share[5] - The company's total revenue decreased by approximately HKD 58.2 million or 72.4% to about HKD 22.2 million for the nine months ended December 31, 2020, compared to approximately HKD 80.4 million for the same period in 2019[28] - The net loss increased from approximately HKD 8.4 million for the nine months ended December 31, 2019, to approximately HKD 13.5 million for the same period in 2020[24] - Gross profit decreased from approximately HKD 7,300,000 for the nine months ended December 31, 2019, to approximately HKD 2,200,000 for the nine months ended December 31, 2020, a decline of 69.3% due to revenue drop[31] - The basic and diluted loss per share attributable to the owners of the company was HKD 10.36 for the nine months ended December 31, 2020, compared to HKD 6.49 for the same period in 2019[22] Expenses and Costs - Total administrative expenses for the nine months were HKD 15,047,000, an increase of 9.7% from HKD 13,717,000 in the previous year[5] - Service costs decreased by approximately HKD 53.1 million or 72.7% to about HKD 20 million for the nine months ended December 31, 2020, compared to approximately HKD 73.1 million for the same period in 2019[30] - The total labor costs amounted to HKD 9.8 million for the nine months ended December 31, 2020, down from HKD 12.9 million in the same period of 2019[18] - Administrative expenses rose by approximately HKD 1,300,000 or 9.7% from approximately HKD 13,700,000 for the nine months ended December 31, 2019, to approximately HKD 15,000,000 for the nine months ended December 31, 2020, mainly due to legal fees related to arbitration[33] - Excluding one-time legal fees, administrative expenses decreased by approximately HKD 3,900,000 or 28.5% to approximately HKD 9,800,000 for the nine months ended December 31, 2020[35] - Financing costs slightly decreased by approximately HKD 100,000 or 4.9% from approximately HKD 2,300,000 for the nine months ended December 31, 2019, to approximately HKD 2,200,000 for the nine months ended December 31, 2020[36] Income and Other Financial Metrics - The company generated other income of HKD 1,499,000 for the nine months, significantly up from HKD 235,000 in the same period of 2019[5] - Other income increased from approximately HKD 200,000 for the nine months ended December 31, 2019, to approximately HKD 1,500,000 for the nine months ended December 31, 2020, primarily due to subsidies received under the Employment Support Scheme from the Hong Kong government[32] Shareholder and Equity Information - As of December 31, 2020, the total equity of the company was HKD 62,962,000, down from HKD 89,912,000 at the end of 2019[7] - As of December 31, 2020, the company had a significant shareholder, Harmony Asia International, holding 652,290,000 shares, representing 50.18% of the total shares[42] Corporate Governance and Compliance - The audit committee reviewed the unaudited consolidated results for the nine months ended December 31, 2020, confirming compliance with applicable accounting standards[57] - The company emphasizes the importance of sound corporate governance for long-term success and has adhered to applicable governance codes[53] - The group has adopted a code of conduct for directors regarding securities trading, with no violations reported during the reporting period[52] - No competitive interests were reported between the directors, major shareholders, and the group's business during the nine months ended December 31, 2020[56] Future Outlook and Strategic Plans - The company anticipates continued challenges in acquiring new projects due to intense competition and the ongoing impact of the COVID-19 pandemic on the business environment in Hong Kong and Macau[25] - The company plans to explore opportunities for business diversification or expansion in Hong Kong, Macau, and mainland China to maintain growth[27] IPO Proceeds and Utilization - The net proceeds from the IPO, amounting to approximately HKD 38,000,000, will be used for the purposes outlined in the prospectus, with a decision made to change and reallocate the unused proceeds due to a challenging external business environment[49] - As of December 31, 2020, the total net proceeds utilized by the group amounted to HKD 38.0 million, with HKD 22.5 million remaining unutilized[50] - The group allocated HKD 19.4 million to strengthen its industry position and expand its business, with HKD 0.8 million already utilized[50] - A total of HKD 7.6 million was used to repay bank loans, with an additional HKD 20.0 million planned for future repayments[50] - The establishment of an office/warehouse in Macau cost HKD 2.5 million, with HKD 0.2 million already utilized[50] - General operating funds accounted for HKD 3.3 million, fully utilized during the reporting period[50] Dividend Information - The company did not recommend any dividend payment for the nine months ended December 31, 2020, consistent with the same period in 2019[21] - No dividends were declared or proposed for the nine months ended December 31, 2020, and 2019[39] Compliance with Financial Reporting Standards - The company has not applied any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[11] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2020[51] - The company has not granted, exercised, or allowed any stock options under its stock option plan during the nine months ended December 31, 2020[47]

Financial Performance - The group's revenue for the six months ended September 30, 2020, was HKD 17,211,000, a decrease of 76.5% compared to HKD 73,054,000 for the same period in 2019[5]. - Gross profit for the six months ended September 30, 2020, was HKD 1,966,000, down 71.5% from HKD 6,891,000 in the previous year[5]. - The group reported a loss before tax of HKD 10,012,000 for the six months ended September 30, 2020, compared to a loss of HKD 3,602,000 for the same period in 2019[5]. - Revenue from Hong Kong for the six months ended September 30, 2020, was HKD 12,482,000, a decline of 81.7% from HKD 68,291,000 in 2019[23]. - The total employee costs for the six months ended September 30, 2020, amounted to HKD 6,853,000, a decrease of 24.7% from HKD 9,108,000 in 2019[25]. - The company reported a loss attributable to shareholders of HKD 2,385,000 for the three months ended September 30, 2020, compared to a loss of HKD 4,811,000 for the same period in 2019, representing a 50.4% improvement[31]. - For the six months ended September 30, 2020, the loss attributable to shareholders was HKD 10,012,000, compared to HKD 3,602,000 in 2019, indicating a significant increase in losses[31]. - The net loss increased from approximately 3,600,000 HKD for the six months ended September 30, 2019, to approximately 10,000,000 HKD for the six months ended September 30, 2020[54]. Assets and Liabilities - Total assets as of September 30, 2020, were HKD 151,115,000, slightly down from HKD 151,438,000 as of March 31, 2020[7]. - The company’s total liabilities increased to HKD 85,715,000 as of September 30, 2020, compared to HKD 76,679,000 as of March 31, 2020[7]. - The company’s asset value decreased to HKD 66,421,000 as of September 30, 2020, from HKD 76,433,000 as of March 31, 2020[8]. - Contract assets as of September 30, 2020, amounted to HKD 100,512,000, up from HKD 95,701,000 as of March 31, 2020[33]. - The company had trade receivables of HKD 11,079,000 as of September 30, 2020, down from HKD 15,662,000 as of March 31, 2020, reflecting a decrease of 29.3%[35]. - Total bank borrowings increased to HKD 44,993,000 as of September 30, 2020, compared to HKD 35,967,000 as of March 31, 2020, representing a 25.1% increase[39]. - The debt-to-equity ratio increased from approximately 55.6% to approximately 84.5% due to higher bank borrowings and a decrease in total equity[74]. Cash Flow - The net cash used in operating activities for the six months ended September 30, 2020, was HKD 10,005,000, compared to a net cash inflow of HKD 6,143,000 in 2019[12]. - The group’s cash and cash equivalents decreased to HKD 10,102,000 as of September 30, 2020, from HKD 19,118,000 at the end of the previous year[12]. - The company utilized approximately HKD 7.6 million to repay outstanding bank loans as of September 30, 2020[98]. Administrative and Other Expenses - The group’s administrative expenses for the six months ended September 30, 2020, were HKD 12,016,000, an increase of 32.1% from HKD 9,112,000 in the previous year[5]. - The total compensation for key management personnel for the six months ended September 30, 2020, was 1,728,000 HKD, down from 2,016,000 HKD for the same period in 2019[48]. - Administrative expenses rose from approximately HKD 9.1 million to approximately HKD 12.0 million, an increase of about HKD 2.9 million or 31.9%, mainly due to legal fees related to arbitration[63]. Corporate Governance and Management - The company has adopted a code of conduct for securities trading by directors, with no reported violations during the reporting period[105]. - The company emphasizes the importance of sound corporate governance for long-term success and has complied with applicable corporate governance codes[106]. - The audit committee has reviewed the unaudited condensed consolidated results for the six months ended September 30, 2020, and found them to be properly prepared according to applicable accounting standards[114]. - The chairman and CEO, Mr. Lan Haokun, continues to oversee the overall business development strategy, combining both roles for effective management[108]. - The company’s executive directors have voluntarily waived 20% of their salaries for one year starting from April 1, 2020, as a cost control measure[110]. Future Outlook and Challenges - The company anticipates continued challenges in project acquisition due to intense competition and a depressed business environment in Hong Kong and Macau[55]. - The management expects financial performance for the fiscal year 2020/2021 to be affected by adverse factors including labor shortages and economic downturn[55]. - The company faces significant risks due to its project-based business model, with income primarily derived from non-recurring projects, which may be affected by contract terms and overall market conditions[101]. - The company relies on a bidding process to secure most contracts, with pricing based on estimated time and costs, which if inaccurately assessed, could adversely affect profitability[103]. Strategic Initiatives - The company plans to explore opportunities for business diversification or expansion into Hong Kong, Macau, and mainland China to maintain growth[57]. - The company has reallocated unutilized net proceeds from its IPO to other business strategies due to a challenging external business environment[94]. - The company continues to evaluate the use of unutilized net proceeds from its IPO to mitigate the impact of the COVID-19 pandemic and aims for better business performance[100].

Financial Performance - The company's revenue for the three months ended June 30, 2020, was HKD 8,362,000, a decrease of 83.3% compared to HKD 49,991,000 for the same period in 2019[5] - Gross profit for the same period was HKD 931,000, down 85.5% from HKD 6,403,000 in 2019[5] - The company reported a loss before tax of HKD 7,627,000, compared to a profit of HKD 1,289,000 in the previous year[5] - The basic and diluted loss per share was HKD 0.59, compared to earnings of HKD 0.09 per share in the same period last year[5] - The total comprehensive loss for the period was HKD 7,627,000, compared to a total comprehensive income of HKD 1,209,000 in 2019[5] - The company reported a net loss of approximately HKD 7,600,000 for the three months ended June 30, 2020, compared to a net profit of approximately HKD 1,200,000 for the same period in 2019, primarily due to a significant decline in revenue[25] - Total revenue decreased by approximately HKD 41,600,000 or 83.3% to approximately HKD 8,400,000 for the three months ended June 30, 2020, from approximately HKD 50,000,000 for the same period in 2019[29] - Service costs decreased by approximately HKD 36,200,000 or 83.0% to approximately HKD 7,400,000 for the three months ended June 30, 2020, from approximately HKD 43,600,000 for the same period in 2019[31] - Gross profit decreased by approximately HKD 5,500,000 or 85.5% to approximately HKD 900,000 for the three months ended June 30, 2020, from approximately HKD 6,400,000 for the same period in 2019[33] - The gross profit margin decreased from approximately 12.8% for the three months ended June 30, 2019, to approximately 11.1% for the same period in 2020[33] Administrative Expenses - Administrative expenses increased to HKD 8,585,000, up 95.0% from HKD 4,394,000 in 2019[5] - Administrative expenses increased by approximately HKD 4,200,000 or 95.4% to about HKD 8,600,000 for the three months ended June 30, 2020, primarily due to legal costs related to arbitration decisions[35] - Excluding one-time legal costs, administrative expenses decreased by approximately HKD 1,100,000 or 25.0% to about HKD 3,300,000 for the same period, indicating effective cost control in daily operations[35] Equity and Financing - The company’s total equity as of June 30, 2020, was HKD 68,806,000, down from HKD 99,549,000 a year earlier[7] - Financing costs decreased by approximately HKD 100,000 or 14.2% to about HKD 700,000 for the three months ended June 30, 2020, mainly due to a reduction in average bank borrowing levels[37] - As of June 30, 2020, the company had a total of approximately HKD 38,000,000 in net proceeds from its initial public offering, with HKD 15,500,000 utilized[51] - Of the net proceeds, HKD 19,400,000 was allocated to strengthen the company's industry position and expand its business, with only HKD 800,000 utilized to date[52] Business Operations - The company generated all its revenue from construction management services, specifically related to water circulation systems[15] - The company’s main business involves investment holding and providing design, procurement, and installation services for water circulation systems[9] - The company anticipates that the ongoing COVID-19 pandemic will continue to impact the business environment in Hong Kong and Macau in the second half of 2020[26] - The company plans to explore opportunities for business diversification or expansion in Hong Kong, Macau, and mainland China to maintain sustainable growth[28] - The company’s management will closely monitor the economic environment and continuously assess its business strategies to adapt to challenging market conditions[28] Corporate Governance - The company has adopted a code of conduct for securities trading by directors, with no violations reported during the reporting period[55] - The board emphasizes the importance of sound corporate governance for long-term success and has adhered to applicable corporate governance codes[56] - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the company[58] - The audit committee, consisting of three members, has reviewed the unaudited consolidated results for the three months ended June 30, 2020, and found them to comply with applicable accounting standards[64] Future Outlook - The company will continue to monitor the development of the COVID-19 pandemic and its potential challenges in a rapidly changing market[53] - The board will periodically assess business objectives and the use of net proceeds to respond to market conditions[53] - The company has not identified any significant events after June 30, 2020, that would impact its operations and financial performance[41] - The company has not reported any business or interests that may compete with its operations during the reporting period[61] - The company has made changes to its board, appointing a new independent non-executive director and a committee chair[60] Dividends - No dividends were declared or proposed for the three months ended June 30, 2020, consistent with the same period in 2019[22] - No dividends were declared or proposed for the three months ended June 30, 2020, and 2019[40] Stock Options and Securities - The company has not granted, exercised, or allowed any stock options under its stock option plan during the three months ended June 30, 2020[49] - No purchases, sales, or redemptions of the company's listed securities were made during the three months ended June 30, 2020[54]

Financial Performance - For the fiscal year ending March 31, 2020, the total revenue decreased by approximately HKD 48.4 million or 35.7% to about HKD 87.1 million from approximately HKD 135.5 million for the fiscal year ending March 31, 2019[8]. - The company recorded a net loss of approximately HKD 21.9 million for the fiscal year ending March 31, 2020, compared to a net profit of approximately HKD 3 million for the fiscal year ending March 31, 2019[8]. - Total revenue decreased by approximately HKD 48.4 million or 35.7% to about HKD 87.1 million for the year ended March 31, 2020, compared to approximately HKD 135.5 million for the year ended March 31, 2019[15]. - Gross profit decreased by approximately HKD 18.9 million or 72.4% to about HKD 7.2 million, with gross margin dropping from approximately 19.3% to 8.3%[19]. - Administrative expenses increased by approximately HKD 6.2 million or 31.1% to about HKD 26.3 million, mainly due to accounting treatment related to arbitration results[21]. - Financing costs increased by approximately HKD 400,000 or 16.5% to about HKD 3.0 million, primarily due to increased average borrowing levels[22]. - Total assets as of March 31, 2020, were approximately HKD 155.1 million, down from approximately HKD 188.0 million as of March 31, 2019[27]. - The company's debt-to-equity ratio increased from approximately 54.7% to 55.6% due to the net loss for the year[28]. - The company did not declare or propose any dividends for the years ended March 31, 2020, and 2019[26]. - The company reported no final dividend for the fiscal year ending March 31, 2020, consistent with the previous year[163]. Business Operations - The group had 28 construction management projects during the reporting period, compared to 24 projects in the previous year, but zero consulting projects, down from four[13]. - The group’s services include construction management, consulting, and maintenance services for water circulation systems, primarily targeting private residential projects and commercial developments in Hong Kong and Macau[13]. - The company provides maintenance services for water circulation systems as part of its business operations[159]. - The company operates primarily as a contractor specializing in the design, procurement, and installation of water circulation systems[159]. - The company has a diversified service offering that includes construction management and consulting services related to water circulation systems[159]. Market Conditions - The economic environment remains uncertain due to the COVID-19 pandemic and ongoing social movements in Hong Kong, which are expected to impact financial performance, especially in the first half of the fiscal year 2020/2021[9]. - The significant decline in revenue was attributed to prolonged protests and the COVID-19 pandemic, leading to a historic economic recession in Hong Kong[13]. - The company expresses optimism about the long-term business prospects in Hong Kong and Macau despite the current adverse conditions[9]. Governance and Management - The board consists of seven directors, including four executive directors and three independent non-executive directors[43]. - The company held four board meetings during the fiscal year ending March 31, 2020, to approve financial performance and review governance compliance[50]. - The company has adopted a board diversity policy to ensure a balanced composition of skills, experience, and perspectives among board members[48]. - The independent non-executive directors represent at least one-third of the board, ensuring compliance with GEM listing rules[43]. - The chairman and CEO roles are held by the same individual, Mr. Lan Haokun, which the board believes is in the best interest of the company[40]. - The board is responsible for overseeing the company's governance policies and ensuring compliance with legal and regulatory requirements[41]. - The company emphasizes the importance of board diversity, with a mix of educational backgrounds, professional expertise, and gender representation[46]. - The board has established a code of conduct and compliance manual for directors and employees[42]. - The company has received annual confirmations of independence from its independent non-executive directors[43]. - The board's decision-making process includes regular updates from management on business performance and developments[41]. - The company appointed new service agreements for executive directors, with terms lasting three years, ensuring continuity in leadership[56]. - The audit committee held four meetings during the fiscal year ending March 31, 2020, to review financial performance and compliance with governance codes[64]. - The remuneration committee conducted one meeting to review the compensation structure for directors and senior management, ensuring alignment with market standards[65]. - The nomination committee is responsible for reviewing the board's structure and identifying qualified candidates for board membership[68]. - The company emphasizes continuous professional development for directors, with all directors attending training related to regulatory updates during the fiscal year[58]. - The company has adopted a code of conduct for directors' securities trading, with no known violations reported for the fiscal year ending March 31, 2020[57]. - The company’s governance framework includes three committees: audit, remuneration, and nomination, to oversee specific matters effectively[61]. - The independent non-executive director, Mr. Zeng Yongfa, was appointed to the audit committee and became its chairman on April 6, 2020[62]. - The company ensures that one-third of directors retire at each annual general meeting, maintaining a cycle of re-election and governance[56]. - The company has adopted a nomination policy to enhance the nomination process and serve as a guideline for the selection process and board succession planning[69]. - The nomination committee evaluates candidates based on qualifications, skills, experience, and gender diversity to complement the existing board's capabilities[70]. - The audit committee has reviewed and deemed the internal control system and existing procedures sufficient for the company's current business model and environmental needs[76]. - The company aims to provide stable and sustainable returns to shareholders through its dividend policy, considering operational performance, cash flow, and financial condition[78]. Environmental Impact - The total greenhouse gas emissions for the fiscal year 2019/20 amounted to 29.59 tons, a decrease of 17.2% from 35.74 tons in the previous year[98]. - Indirect emissions from electricity consumption were recorded at 29.56 tons, down from 35.71 tons, reflecting a reduction of 17.2%[98]. - The company aims to minimize environmental impact through sustainable practices in its operations, including compliance with relevant environmental laws and regulations[96]. - The company has implemented measures to monitor and reduce energy consumption in its Hong Kong office to lower operational costs and greenhouse gas emissions[101]. - The company has established policies to ensure that construction activities minimize adverse environmental impacts and comply with industry regulations[96]. - The company has a vision to be socially and environmentally responsible, focusing on reducing its environmental footprint and contributing positively to the community[91]. - The company continues to engage with stakeholders to understand and address significant environmental, social, and governance issues[92]. - The company has implemented waste management protocols prioritizing avoidance, reduction, recycling, and proper disposal of construction waste[103]. - The company has not been aware of any significant violations of environmental laws or regulations during the reporting period[106]. - The company actively encourages employees to reduce water usage in the office[106]. - The company has adopted measures to minimize harmful and non-harmful emissions from construction activities[107]. - The company has implemented energy-saving measures to improve electricity efficiency in its main office[111]. - The company has established a system for the classification and recycling of excavated materials on construction sites[103]. - The company has not received any public complaints or fines from environmental protection agencies during the reporting period[106]. - The company continues to promote the use of recycled paper and electronic methods to reduce paper consumption[113]. Employee and Labor Practices - Total number of employees as of March 31, 2020, remained stable at 37 compared to the previous year[119]. - The ratio of male to female employees increased from 1:2.2 to 1:3.6, indicating a shift towards greater gender diversity[119]. - The number of office employees, including executive directors and senior management, increased by 16.7% from 6 to 7[119]. - The age distribution of employees showed a decrease of 10.9% in the 19-40 age group, while the 41-60 age group increased by 8.2%[119]. - Employee compensation and benefits are linked to individual performance and company performance, with annual reviews based on industry practices[121]. - The company has no records of any employment disputes, violations, or lawsuits during the reporting period[127]. - The company adheres to local labor laws and has established a safe and healthy work environment, with no incidents of fatalities or occupational health hazards reported[123]. - Continuous learning and development are emphasized, with resources allocated for employee training programs[125]. Supplier and Procurement Practices - The procurement policy ensures transparency and fairness in supplier selection, with regular evaluations of suppliers based on ethical standards[131]. - The company has a list of approved subcontractors who have passed quality control tests and have a good track record for timely delivery[131]. - The group evaluated 77 key suppliers and subcontractors, with 61 in Hong Kong, 8 in Macau, 3 in China, and 5 in other regions, showing no change from the previous year[132]. - The group emphasizes high-quality final products, adhering to strict government regulations and independent oversight during planning, design, and construction phases[134]. - The group has a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, with no reported cases during the reporting period[140]. - The company has established a recognized supplier list and regularly evaluates supplier performance[180]. Shareholder and Equity Information - As of March 31, 2020, the company's reserves available for distribution to shareholders were approximately HKD 58,954,000, compared to HKD 58,972,000 in 2019, reflecting a slight decrease of 0.03%[167]. - The company has not granted any stock options under the stock option plan from its adoption date until March 31, 2020, but will consider granting options as incentives in the future[171]. - As of March 31, 2020, Mr. Lan Haokun held 652,290,000 shares, representing 50.18% of the company's issued shares, making him a significant shareholder[174]. - On April 2, 2020, Morgan Star Investment Limited sold its 109,590,000 shares, resulting in no longer holding any interest in those shares[179]. - As of April 2, 2020, Mr. Zhang Wei sold 134,160,000 shares, and no longer held any interest in those shares, while Ms. Chen Mingxia held 243,750,000 shares, equivalent to 18.75% of the total issued share capital[179]. - The stock option plan allows for a maximum of 10% of the issued shares to be granted as options, subject to shareholder approval for any increase beyond this limit[169]. - The company has not entered into any equity-related agreements other than the stock option plan during the fiscal year ending March 31, 2020[172]. - The company’s bank borrowings details are available in the consolidated financial statements, indicating financial leverage considerations[168]. - The company’s property, plant, and equipment changes for the fiscal year ending March 31, 2020, are detailed in the consolidated financial statements[165]. - The company’s capital structure as of March 31, 2020, is outlined in the consolidated financial statements, reflecting its financial position[166]. - Revenue from the top five customers accounted for approximately 93.7% of total revenue for the year ended March 31, 2020, down from 96.9% in 2019[180]. - The largest customer contributed about 79.2% of total revenue for the year ended March 31, 2020, compared to 86.5% in 2019[180]. - Procurement from the top five suppliers represented approximately 10.5% of total service costs for the year ended March 31, 2020, a decrease from 21.0% in 2019[180]. - The largest supplier accounted for about 3.3% of total service costs for the year ended March 31, 2020, down from 11.0% in 2019[180]. - Payments to the top five subcontractors constituted approximately 56.5% of total service costs for the year ended March 31, 2020, up from 47.7% in 2019[180]. - The largest subcontractor received about 45.5% of total subcontracting fees for the year ended March 31, 2020, compared to 42.4% in 2019[180].

Financial Performance - For the nine months ended December 31, 2019, the group's revenue was HKD 80,431,000, a decrease of 18.7% compared to HKD 98,988,000 for the same period in 2018[4] - The gross profit for the nine months was HKD 7,338,000, down 63.5% from HKD 20,106,000 in the previous year[4] - The group reported a loss before tax of HKD 8,428,000 for the nine months, compared to a profit of HKD 3,450,000 in the same period of 2018[4] - Total comprehensive loss for the period was HKD 8,428,000, compared to a total comprehensive income of HKD 3,000,000 for the same period in 2018[4] - Basic and diluted loss per share for the nine months was HKD 0.65, compared to earnings of HKD 0.23 per share in the previous year[4] - The company incurred a loss attributable to owners of HKD 8,428,000 for the nine months ended December 31, 2019, compared to a profit of HKD 3,000,000 for the same period in 2018[25] - The company recorded a net loss of approximately HKD 8.4 million for the nine months ended December 31, 2019, compared to a net profit of approximately HKD 3 million for the same period in 2018[38] Revenue Breakdown - The company reported a total revenue of approximately HKD 80,431,000 for the nine months ended December 31, 2019, a decrease of 18.1% compared to HKD 98,988,000 for the same period in 2018[19] - The construction management services generated revenue of HKD 7,377,000 for the three months ended December 31, 2019, down 79.1% from HKD 35,304,000 in the same period of 2018[19] - The company’s total revenue for the three months ended December 31, 2019, was HKD 7,377,000, with no revenue from consulting and maintenance services during this period[19] - Total revenue decreased by approximately HKD 18.6 million or 18.7% to approximately HKD 80.4 million for the nine months ended December 31, 2019, compared to HKD 99 million for the same period in 2018[29] - Construction management service revenue decreased by approximately HKD 15.9 million or 16.4% to approximately HKD 80.4 million, primarily due to the completion of a project in Tseung Kwan O, resulting in a revenue decrease of approximately HKD 18.1 million[30] Expenses and Costs - Administrative expenses for the nine months were HKD 13,717,000, a decrease of 8.1% from HKD 14,939,000 in 2018[4] - The total employee costs for the nine months ended December 31, 2019, were HKD 12,908,000, slightly down from HKD 13,088,000 in the same period of 2018[21] - Service costs decreased by approximately HKD 5.8 million or 7.3% to approximately HKD 73.1 million, mainly due to a reduction in consumables costs by approximately HKD 11.8 million[31] - Administrative expenses decreased by approximately HKD 1.2 million or 8.2% to approximately HKD 13.7 million, primarily due to reductions in legal and professional fees, rent expenses, and bank charges[35] - Financing costs increased by approximately HKD 400,000 or 19.6% to approximately HKD 2.3 million, mainly due to increased bank borrowings for early-stage project financing[36] Equity and Dividends - The group had total equity of HKD 89,912,000 as of December 31, 2019, down from HKD 98,358,000 at the end of 2018[6] - The company did not declare any dividends for the nine months ended December 31, 2019, consistent with the previous year[24] - The board did not declare or propose any dividends for the nine months ended December 31, 2019, and 2018[39] Business Strategy and Market Conditions - The company continues to focus on providing design, procurement, and installation services for water circulation systems[8] - The company plans to explore opportunities to expand its business into Hong Kong, Macau, and other construction-related contracting services in China to maintain sustainable growth[28] - The company faced challenges due to external macroeconomic slowdowns and increased competition in project acquisition amid the COVID-19 pandemic[27] - The company continues to monitor market conditions amid the challenges posed by the COVID-19 pandemic and will assess business objectives and the use of net proceeds accordingly[54] Compliance and Governance - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[9] - The group has adopted the cumulative effect transition method for the new lease accounting standard, with minimal impact on financial performance[13] - The audit committee reviewed the unaudited condensed consolidated results for the nine months ending December 31, 2019, and found them to be prepared in accordance with applicable accounting standards[65] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules[56] - The company maintains a commitment to good corporate governance, believing it is essential for long-term success and sustainable development[59] Use of Proceeds - As of December 31, 2019, the net proceeds from the IPO amounted to approximately HKD 38 million, with HKD 15.3 million utilized and HKD 22.7 million remaining[51] - The company allocated HKD 19.4 million for consolidating its industry position and expanding its business, with only HKD 0.8 million utilized[52] - HKD 7.6 million was fully used to repay bank loans, while HKD 3.6 million was utilized to strengthen the company's technology and project management capabilities[52] Other Financial Information - The average borrowing rate applied to lease liabilities as of April 1, 2019, was 5.875%[17] - The company recognized lease liabilities interest expense of approximately HKD 84,000 and depreciation of right-of-use assets of approximately HKD 1,474,000 for the nine months ended December 31, 2019[18] - The company’s contract costs for the nine months ended December 31, 2019, included approximately HKD 73,093,000, a decrease from HKD 77,496,000 in the same period of 2018[21] - Other income increased from approximately HKD 192,000 to approximately HKD 235,000, mainly due to an increase in interest income from fixed deposits[34] - The company has not engaged in any arrangements that would allow directors to benefit from purchasing shares or debt securities during the nine months ending December 31, 2019[50] - No share options were granted, exercised, expired, or lapsed under the share option scheme during the nine months ending December 31, 2019[49] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2019[55]

Financial Performance - The group's revenue for the six months ended September 30, 2019, was HKD 73,054,000, an increase of 14.7% compared to HKD 63,684,000 for the same period in 2018[4] - The gross profit for the six months ended September 30, 2019, was HKD 6,891,000, down 50.1% from HKD 13,823,000 in the previous year[4] - The group reported a loss before tax of HKD 3,602,000 for the six months ended September 30, 2019, compared to a profit of HKD 2,805,000 for the same period in 2018[4] - For the six months ended September 30, 2019, the company reported a loss attributable to owners of the company of HKD 3,602,000, compared to a profit of HKD 2,455,000 for the same period in 2018, representing a significant decline[35] - The company recorded a net loss of approximately HKD 3,600,000 for the six months ended September 30, 2019, compared to a net profit of approximately HKD 2,500,000 for the same period in 2018[68] Revenue Sources - Construction management services generated revenue of HKD 73,054,000 for the six months ended September 30, 2019, compared to HKD 60,948,000 in 2018, reflecting a growth of 19.9%[24] - Revenue from Hong Kong for the six months ended September 30, 2019, was HKD 68,291,000, up 25.7% from HKD 54,368,000 in 2018[28] - Revenue from major client A and its affiliates for the six months ended September 30, 2019, was HKD 66,272,000, an increase of 15.7% from HKD 57,291,000 in 2018[29] Expenses and Costs - The group incurred administrative expenses of HKD 9,112,000 for the six months ended September 30, 2019, compared to HKD 9,866,000 in the same period of 2018, showing a decrease of 7.6%[26] - Total employee costs for the six months ended September 30, 2019, amounted to HKD 9,108,000, an increase of 7.4% from HKD 8,480,000 in the same period of 2018[31] - The company's contract costs for the six months ended September 30, 2019, were HKD 66,163,000, a substantial increase of 36.5% compared to HKD 48,475,000 in the previous year[31] - Financing costs for the six months ended September 30, 2019, were HKD 1,537,000, an increase from HKD 1,235,000 in 2018, representing a rise of 24.5%[26] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 166,392,000, a decrease from HKD 184,602,000 as of March 31, 2019[6] - The group's current liabilities decreased to HKD 72,941,000 as of September 30, 2019, from HKD 87,677,000 as of March 31, 2019[6] - The group’s total equity decreased to HKD 94,738,000 as of September 30, 2019, from HKD 98,340,000 as of March 31, 2019[7] - Trade receivables decreased to HKD 16,650,000 as of September 30, 2019, down 48.7% from HKD 32,476,000 as of March 31, 2019[38] - Trade payables decreased to HKD 16,625,000 as of September 30, 2019, down from HKD 29,702,000 as of March 31, 2019[40] Shareholder Information - The company’s weighted average number of ordinary shares for the calculation of basic and diluted loss per share remained constant at 1,300,000 shares for both periods[35] - The total issued and fully paid shares remained at 1,300,000,000 as of September 30, 2019, consistent with previous periods[47] - As of September 30, 2019, Mr. Lan Haojun holds 731,250,000 shares, representing a 56.25% ownership stake in the company[83] Corporate Governance and Strategy - The company emphasizes the importance of sound corporate governance for long-term success and has adhered to the corporate governance code, with the exception of the separation of roles between the chairman and CEO[104] - The company aims to expand its services into construction-related contracting opportunities in Hong Kong, Macau, and other parts of China to sustain growth[57] - The company’s management team is focused on closely monitoring the economic environment and adapting business strategies to maintain sustainable development[57] Market Challenges - Management noted ongoing challenges due to external macroeconomic slowdowns and intense market competition, impacting profit margins[56] - The company primarily generates revenue from non-recurring projects, with profit margins influenced by contract terms and project efficiency, indicating a reliance on project feasibility and external factors[99] - The company faces risks related to project size and resource allocation, as large projects consume significant resources, potentially impacting the ability to take on additional projects[99] Miscellaneous - The company did not recommend any dividend for the six months ended September 30, 2019, consistent with the previous year[34] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending September 30, 2019[100] - The audit committee has reviewed the unaudited consolidated results for the six months ending September 30, 2019, confirming compliance with applicable accounting standards and GEM listing rules[112]

Financial Performance - Revenue for the three months ended June 30, 2019, was HKD 49,991,000, an increase of 58.5% compared to HKD 31,549,000 for the same period in 2018[6] - Gross profit for the same period was HKD 6,403,000, a decrease of 8.2% from HKD 6,973,000 in 2018[6] - Profit before tax was HKD 1,289,000, down 23.1% from HKD 1,674,000 in the previous year[6] - Net profit for the period was HKD 1,209,000, a decrease of 16.3% compared to HKD 1,444,000 in 2018[6] - Basic and diluted earnings per share were HKD 0.09, down from HKD 0.11 in the same period last year[6] - Total revenue increased by approximately HKD 18,500,000 or 58.5% to about HKD 50,000,000 for the three months ended June 30, 2019, compared to approximately HKD 31,500,000 for the same period in 2018[32] - Gross profit decreased by approximately HKD 600,000 or 8.2% to about HKD 6,400,000 for the three months ended June 30, 2019, compared to approximately HKD 7,000,000 for the same period in 2018[33] - Net profit decreased by approximately HKD 200,000 or 16.3% to approximately HKD 1,200,000 for the three months ended June 30, 2019[39] Expenses and Costs - Administrative expenses decreased to HKD 4,394,000 from HKD 4,799,000, reflecting a reduction of 8.4%[6] - Service costs rose by approximately HKD 19,000,000 or 77.4% to about HKD 43,600,000 for the three months ended June 30, 2019, driven mainly by increases in subcontracting and consumable costs[32] - Administrative expenses decreased by approximately HKD 400,000 or 8.4% to approximately HKD 4,400,000, mainly due to reductions in legal and professional fees[36] - Financing costs increased to HKD 796,000 from HKD 538,000, representing a rise of 47.9%[6] - Financing costs increased by approximately HKD 300,000 or 48.0% to approximately HKD 800,000, attributed to increased bank borrowing levels for early-stage project financing[37] - Income tax expenses decreased by approximately HKD 150,000 or 65.2% to approximately HKD 80,000, driven by a reduction in taxable profits in Hong Kong and Macau[38] Business Operations - The company’s main business involves the design, procurement, and installation services of water circulation systems[10] - The company plans to explore opportunities to expand its business into construction-related contracting services in Hong Kong, Macau, and other parts of China[30] - The management noted ongoing challenges due to external macroeconomic slowdowns and intense market competition affecting profit margins[29] - The company aims to manage project progress and costs to enhance competitiveness in securing new projects[29] - Construction management service revenue increased by approximately HKD 20,000,000 or 66.5% to approximately HKD 50,000,000 for the three months ended June 30, 2019, compared to approximately HKD 30,000,000 for the same period in 2018[34] Corporate Governance - The company has maintained good corporate governance standards and procedures to enhance accountability and transparency for shareholders[58] - The company has complied with all applicable provisions of the corporate governance code, except for the separation of roles between the chairman and CEO[60] - The board believes that the dual role of the chairman and CEO is in the best interest of the company for effective management and business development[60] - The audit committee reviewed the unaudited condensed consolidated results for the three months ended June 30, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[66] - The audit committee consists of three members, with the chairman holding appropriate professional qualifications as per GEM listing rules[64] Shareholder Information - Major shareholder Mr. Lan holds 731,250,000 shares, representing 56.25% of the company[43] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended June 30, 2019[55] - The company did not recommend any dividend payment for the three months ended June 30, 2019, consistent with the previous year[26] - No dividends were declared or recommended for the three months ended June 30, 2019, and 2018[40] Compliance and Advisory - The company has established a compliance advisory agreement with Chuangqiao International Limited, effective from January 26, 2017[57] - The board of directors will closely monitor the economic environment and continuously assess business strategies to adapt to challenging market conditions[30] - The company has appointed a new executive director, Wang Rui, effective July 2, 2019[62] - There were no known business or competitive interests that could conflict with the company's operations during the reporting period[63] - The company adopted a code of conduct for securities trading by directors, with no violations reported during the reporting period[56] - The company did not fully utilize the net proceeds as planned due to increased external business environment challenges[54] - As of June 30, 2019, the company had a total of approximately HKD 38,000,000 in net proceeds from its IPO, with HKD 15,300,000 utilized[52]

Financial Performance - Total revenue for the year ended March 31, 2019, increased by approximately HKD 4.6 million or 3.5% to approximately HKD 135.5 million compared to HKD 130.9 million for the year ended March 31, 2018[10]. - Shareholders' profit for the year remained stable at approximately HKD 3 million, unchanged from the previous year[10]. - Adjusted net profit decreased by approximately HKD 4.4 million or 59.5% to approximately HKD 3 million, down from approximately HKD 7.4 million in the previous year, primarily due to increased administrative expenses and higher financing costs[10]. - Total revenue increased by approximately HKD 4.6 million or 3.5% to approximately HKD 135.5 million for the year ended March 31, 2019, compared to approximately HKD 130.9 million for the previous year[17]. - Gross profit increased by approximately HKD 900,000 or 3.7% to approximately HKD 26.1 million, with a stable gross margin of approximately 19.3%[18][19]. - Net profit remained stable at approximately HKD 3 million, with adjusted net profit decreasing by approximately HKD 4.4 million or 59.5% to approximately HKD 3 million[26]. - Total assets increased to approximately HKD 188 million from approximately HKD 146.3 million, with total liabilities and equity at approximately HKD 89.7 million and HKD 98.3 million respectively[28]. - The debt-to-equity ratio increased from approximately 36.6% to approximately 54.7%, primarily due to a rise in bank borrowings exceeding the increase in total equity[31]. Business Operations - The group had 24 construction management projects and 4 consultancy projects contributing to revenue, compared to 26 construction management projects and 1 consultancy project in the previous year[14]. - The company aims to explore opportunities to expand its business into construction-related contracting services in Hong Kong, Macau, and other parts of China[11]. - The company faces challenges from high labor costs and material costs, as well as external macroeconomic slowdowns impacting future opportunities[11]. - The management team emphasizes the importance of managing project progress and costs amid intense competition in the construction industry[11]. - The company plans to adapt its business strategies to maintain sustainable development and seize long-term growth opportunities[11]. - The group’s experience in water circulation system design, procurement, and installation services positions it favorably against competitors[11]. Corporate Governance - The board consists of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse skill set and experience[45]. - The company has adopted a board diversity policy, considering factors such as skills, gender, age, and industry experience to ensure effective governance and strategy execution[50]. - The board held four meetings during the fiscal year ending March 31, 2019, to approve financial performance and review governance compliance[52]. - The company emphasizes competitive compensation packages to attract and retain high-quality employees, including performance-based bonuses and stock options[41]. - The board is committed to maintaining high corporate governance standards to enhance accountability and transparency for shareholders[43]. - The independent non-executive directors confirm their independence annually, ensuring compliance with GEM listing rules[45]. - The company has implemented a governance framework based on the GEM listing rules to regulate its business activities and decision-making processes[43]. - The company has established three committees: Audit, Remuneration, and Nomination, to oversee specific matters[61]. Environmental Impact - The total greenhouse gas emissions increased by 22.7% from 29.11 tons in 2017/18 to 35.74 tons in 2018/19[98]. - Indirect emissions from electricity usage rose by 22.7%, from 29.09 tons in 2017/18 to 35.71 tons in 2018/19[98]. - The company aims to reduce environmental impact and ensure compliance with relevant environmental laws and regulations[96]. - The company has implemented measures to minimize greenhouse gas emissions during construction projects[99]. - The company has established measures to minimize wastewater generation and has complied with relevant water pollution control regulations[105]. Employee Management - As of March 31, 2019, the group employed 37 staff members, with employee costs amounting to approximately HKD 17.3 million, an increase from HKD 14 million in 2018[41]. - The company emphasizes continuous learning and development, funding training programs for employees[124]. - Safety audits are conducted regularly, with no significant health and safety incidents reported during the period[121][122]. - The company has established a safe and pleasant working environment, strictly adhering to local labor laws and regulations[125]. - The company provides various employee benefits, including retirement and medical benefits, as well as training course funding[41]. Shareholder Relations - The company aims to provide stable and sustainable returns to shareholders through its dividend policy, which was adopted for the fiscal year ending March 31, 2019[78]. - The board of directors values communication with shareholders and presents independent resolutions for significant matters at the annual general meeting[82]. - The major shareholder, Harmony Asia International, holds 731,250,000 shares, representing 56.25% of the total shares[175]. - Another significant shareholder, Zhang Wei, holds 243,750,000 shares, which is 18.75% of the total shares[175]. Risk Management - The company has established a series of risk management policies and measures to identify key risks related to its business, industry, and market[75]. - An independent internal control consultant was appointed to review the internal control system, and recommendations for improvements were implemented based on the consultant's findings[76]. - The company emphasizes the importance of good internal control procedures to protect shareholder interests and has strict policies against unauthorized use of confidential information[75]. Market Position - Revenue from the top five customers accounted for approximately 96.9% of total revenue for the year ended March 31, 2019, compared to 95.8% in 2018[177]. - The largest customer contributed about 86.5% of total revenue for the year ended March 31, 2019, down from 87.8% in 2018[177]. - Procurement from the top five suppliers represented approximately 21.0% of total service costs for the year ended March 31, 2019, significantly down from 42.4% in 2018[177]. - The largest supplier accounted for about 11.0% of total service costs for the year ended March 31, 2019, compared to 38.9% in 2018[177].