Financial Performance - The unaudited condensed consolidated results for the Group for the three months and six months ended 30 September 2022 were presented[21]. - The Group reported a significant increase in revenue compared to the previous period, reflecting strong market demand[21]. - Revenue for the six months ended September 30, 2022, was HK$227,270,000, representing a year-on-year growth of 7.9% compared to HK$210,692,000 in 2021[35]. - Revenue for the three months ended September 30, 2022, was HK$135,227,000, representing an increase of 10.5% compared to HK$122,209,000 for the same period in 2021[39]. - Profit for the period attributable to owners of the Company for the three months ended September 30, 2022, was HK$2,931,000, an increase of 48.4% from HK$1,977,000 in 2021[41]. - Net profit attributable to owners of the Company increased by 155.0% to HK$3,557,000, up from HK$1,395,000 in the previous year[35]. - Basic and diluted earnings per share rose to HK$1.80, a 155.0% increase from HK$0.70 in the same period last year[35]. - Total comprehensive income for the period was HK$3,670,000, slightly up from HK$3,553,000 in the same period last year[41]. - Profit for the period increased by approximately 42.9% to HK$4.7 million from HK$3.3 million in the previous period[180]. - Profit attributable to owners of the Company increased by approximately 155.0% to HK$3.6 million from HK$1.4 million in the previous period[181]. Market and Growth Strategies - The Company is optimistic about future growth, projecting a revenue increase of 15% for the next fiscal year[21]. - New product launches are planned, aimed at expanding the product line and enhancing market competitiveness[21]. - The Company is exploring market expansion opportunities in Southeast Asia to diversify its revenue streams[21]. - Ongoing research and development efforts are focused on innovative technologies to improve product offerings[21]. - The Group anticipates more favorable policies in the PRC to stimulate economic development and create new business opportunities as the epidemic subsides[24]. - The Group remains optimistic about the medium to long-term development of the Grade A commercial property fit-out market in Hong Kong and Mainland China[29]. - The Group plans to maintain its existing marketing strategy and pursue larger contracts at more competitive prices to capture a higher market share[151]. - The leasing market size for local Grade A offices is expected to further increase, driving demand for fit-out services in the medium to long term[152]. - The Group aims to strengthen relationships with subcontractors and landlords to enhance bargaining power and seize market opportunities during industry recovery[151]. Financial Position and Assets - Total assets as of September 30, 2022, amounted to HK$311,592,000, up from HK$287,042,000 as of March 31, 2022, reflecting a growth of 8.5%[43]. - Cash and cash equivalents as of September 30, 2022, were HK$113,790,000, a decrease from HK$119,776,000 as of March 31, 2022[43]. - Total liabilities as of September 30, 2022, increased to HK$165,142, up 13.9% from HK$144,893 as of March 31, 2022[45]. - Total equity as of September 30, 2022, was HK$146,450, a decrease from HK$149,205 as of March 31, 2022[48]. - Net current assets as of September 30, 2022, were approximately HK$115.7 million, up from HK$109.9 million as of March 31, 2022[183]. - The current ratio was approximately 1.7 times as of September 30, 2022, compared to 1.8 times as of March 31, 2022[187]. - The equity attributable to owners of the Company amounted to approximately HK$140.2 million as of September 30, 2022, compared to HK$136.9 million as of March 31, 2022[187]. Operational Performance - The Group maintained business scale and cash flow through flexible marketing strategies, achieving revenue growth despite adverse market conditions[23]. - The Group's profit before income tax increased by 11.7% to HK$5,884,000 from HK$5,266,000 in the previous year[35]. - The gross profit margin decreased to 7.8% from 9.4%, reflecting a decline of 1.6 percentage points[35]. - Gross profit for the six months ended September 30, 2022, was HK$17,659,000, down 10.9% from HK$19,818,000 in the previous year[39]. - The overall direct margin for the Current Period was approximately HK$30.6 million, a decrease of approximately 6.0% compared to HK$32.5 million in the Previous Period[168]. - The direct margin ratio for the Current Period was approximately 13.5%, down 1.9 percentage points from 15.4% in the Previous Period[169]. - Total cost of sales and administrative expenses rose to HK$130,297, compared to HK$116,839, marking an increase of 11.5% year-over-year for the same period[85]. Regulatory Compliance and Governance - The document discusses the interests and positions of directors and senior management in the company's shares and related securities as of September 30, 2022[200]. - It outlines the requirements under the Securities and Futures Ordinance for disclosure of interests and positions held by directors and senior management[200]. - The document specifies the need for registration of interests in the company's register as per the relevant regulations[200]. - It mentions the obligations for notifying the company and the stock exchange regarding any changes in interests and positions[200]. - The document refers to the specific sections of the Securities and Futures Ordinance that govern the disclosure of interests[200]. - It highlights the importance of compliance with the GEM Listing Rules regarding securities transactions by directors[200]. - The document indicates that the interests and positions include both direct and deemed interests as defined by the law[200]. - It emphasizes the significance of transparency in the ownership of shares and related securities by company officials[200].

Financial Performance - The Group achieved a year-on-year revenue growth of 4% in the first financial quarter despite a declining Grade A commercial property leasing market[24]. - Revenue for the three months ended June 30, 2022, was HK$92,043,000, representing a 4.0% increase compared to HK$88,483,000 in the same period of 2021[38]. - Gross profit decreased to HK$5,766,000, down 19.7% from HK$7,185,000 year-on-year[38]. - Profit before income tax increased significantly to HK$1,074,000, compared to HK$184,000 in the same period last year, marking a 485.0% increase[38]. - The profit attributable to owners of the Company was HK$626,000, a turnaround from a loss of HK$582,000 in the previous year[38]. - Basic and diluted earnings per share were HK$0.32, compared to a loss of HK$0.29 per share in the same period of 2021[38]. - Total comprehensive income for the period attributable to owners of the Company was HK$442,000, compared to a loss of HK$520,000 in the prior year, indicating a significant improvement[44]. - The total comprehensive income for the period was HK$781,000, compared to a loss of HK$272,000 in the prior year, showing a substantial recovery[44]. - The Group recorded a profit of approximately HK$0.8 million for the current period, compared to a loss of approximately HK$0.3 million in the previous period[135]. - Profit attributable to owners of the Company was approximately HK$0.6 million for the current period, compared to a loss of approximately HK$0.6 million in the previous period[135]. Market Conditions - The overall market vacancy rate for Hong Kong's Grade A office market increased to 9.4% by the end of June 2022, with a negative absorption of 96,800 square feet reported in June[23]. - The vacancy rate in Central Hong Kong rose from 7.6% to 7.9%, indicating weak market demand[23]. - The overall vacancy rate for Grade A office space in Hong Kong increased to 9.4% as of June 2022, reflecting weakened market demand[25]. - The Group expects the domestic Grade A office fit-out market to face sustained pressure due to the COVID-19 pandemic, but anticipates opportunities from the development of the Northern Metropolis and Greater Bay Area[155]. - Hong Kong remains a vital international financial center, expected to attract more financial and tech companies as economic activities normalize post-pandemic[159]. Strategic Initiatives - The Group adopted an agile marketing and pricing strategy, resulting in a slight drop in gross profit margin but aimed at boosting market share and business scale[24]. - The aggressive marketing strategy is expected to enhance bargaining power with landlords and sub-contractors in the medium term[24]. - The Group aims to secure more orders from larger companies, positioning itself for profit growth when the industry recovers[24]. - The Group adopted flexible marketing and pricing strategies to maintain business scale and increase market share despite a declining fit-out project volume[26]. - The Group remains optimistic about the market for Grade A commercial fit-out services in Hong Kong and the PRC, aiming for growth through agile strategies and quality services[32]. - The group anticipates gaining a larger market share and solidifying its market position as industry activities recover[159]. Revenue Breakdown - Revenue from Hong Kong was HK$91,336,000, up 10.3% from HK$82,943,000 in 2021, while revenue from the PRC decreased significantly to HK$707,000 from HK$5,540,000[64]. - Revenue from bare shell fit-out projects was approximately HK$54.7 million, contributing to approximately 59.4% of total revenue, and increased by approximately 14.6% from HK$47.7 million in the previous period[120]. - Revenue from restacking projects was approximately HK$31.1 million, contributing to approximately 33.7% of total revenue, compared to HK$25.1 million in the previous period[119]. - The Group's revenue from maintenance and other services was approximately HK$0.3 million, accounting for 0.3% of total revenue, compared to HK$0.015 million in the previous period[119]. Cost and Expenses - Gross profit margin fell to 6.3%, a decrease of 1.8 percentage points from 8.1% in the previous year[38]. - Total cost of sales and administrative expenses amounted to HK$92,366,000, an increase of 5.9% from HK$87,732,000 in the previous year[72]. - Subcontracting charges for the period were HK$78,489,000, representing an increase of 6.8% from HK$73,966,000 in 2021[72]. - Administrative expenses decreased by approximately 5.4% to HK$6.1 million from HK$6.4 million in the previous period, primarily due to a reduction in administrative staff costs[132]. - Finance costs decreased by approximately 37.5% to HK$35,000 from HK$56,000 in the previous period, mainly consisting of interest on lease liabilities[133]. Shareholding Structure - As of June 30, 2022, Mr. Wong Sai Chuen holds 112,500,000 shares, representing 56.25% of the issued share capital[165]. - Ms. Hui Man Yee, Maggie, also holds 112,500,000 shares through her spouse, Mr. Wong Sai Chuen, equating to 56.25% of the issued share capital[165]. - Mr. Wong Kin Kei has an interest in 37,500,000 shares, which is 18.75% of the issued share capital[165]. - Madison Square International Investment Limited, a company controlled by Mr. Wong Sai Chuen, holds 56.25% of the group's issued share capital[168]. - J&J Partner Investment Group Limited, controlled by Mr. Wong Kin Kei, holds 18.75% of the group's issued share capital[168]. - As of June 30, 2022, no other directors or their close associates had interests or short positions in any shares of the company[172]. Corporate Governance - The Company has adopted a code of conduct for securities transactions by Directors that meets the required standards set out in the GEM Listing Rules[200]. - All Directors have confirmed full compliance with the required standards throughout the three months ended 30 June 2022[200].

Company Overview - Sanbase Corporation Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange under stock code 8501[1]. - The company has a board of directors comprising executive and independent non-executive members, including Mr. Wong Sai Chuen as Chairman and CEO[13]. - The company is subject to the GEM Listing Rules, which require accurate and complete information disclosure[6]. - Sanbase Corporation Limited's compliance officer and company secretary is Dr. Sung Tak Wing, Leo, ensuring adherence to regulatory requirements[15]. - The principal bankers for the company include The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited, indicating strong banking relationships[15]. Financial Performance - The annual report includes a consolidated statement of profit or loss and other comprehensive income, detailing the company's financial performance[10]. - Total revenue for the year decreased by approximately 14.2%, from HKD 481,286,000 in 2021 to HKD 413,122,000 in 2022[40]. - The Group experienced a loss before income tax of HKD 6,833,000, compared to a loss of HKD 953,000 in the previous year, representing a 617.0% increase in loss[40]. - Basic and diluted loss per share was HKD (2.90) in 2022, compared to earnings of HKD 0.20 in 2021, highlighting a significant downturn in profitability[40]. - The gross profit margin slightly improved to 5.5% in 2022 from 5.4% in 2021, indicating better cost management[40]. - Gross profit for the year was HKD 22.7 million, down 12.0% from HKD 25.8 million recorded last year[48]. - The loss attributable to owners of the Company was HKD 5.7 million, compared to a profit of HKD 0.4 million in the corresponding period of last year[49]. Revenue Breakdown - Revenue from the restacking business remained stable, indicating consistent market demand despite overall revenue decline[25]. - The design business revenue increased by more than four times during the year, reflecting a rebound after previous adjustments[25]. - The Group's PRC subsidiary reported a revenue growth of 91.2% year-on-year, demonstrating improved service quality and customer recognition[31]. - Revenue from bare shell fit-out decreased by 31.1% to HKD 172.1 million, contributing 41.7% of total revenue for the year[58]. - Revenue from restacking was HKD 200.1 million, accounting for 48.4% of total revenue, showing a slight decrease from the previous year[57]. Operational Challenges - The pandemic led to postponements of certain projects due to strict COVID-19 quarantine measures in Hong Kong and some PRC cities[47]. - The Group lowered bidding prices to secure a higher chance of success in project tenders during the challenging economic environment[47]. - The Group's operations may be affected by public health incidents, which could slow down project progress[111]. - The Group's performance analysis by operating segment is provided in note 5 of the consolidated financial statements[109]. Corporate Governance - The report outlines the corporate governance structure, including various committees such as the audit and remuneration committees[13]. - Sanbase Corporation Limited's auditor is PricewaterhouseCoopers, ensuring the integrity of financial reporting[15]. - The Group has maintained good relationships with customers and suppliers, with no material disputes reported during the year ended 31 March 2022[125]. Future Outlook - The Group plans to leverage its extensive subcontractor network and client resources to capitalize on market recovery opportunities post-pandemic[32]. - The Chairman expressed optimism about the long-term prospects of the fit-out market in Hong Kong and the PRC, despite short-term challenges[32]. - The Group expects a rebound in demand for fit-out services as companies consider lease renewals and relocations[74][78]. - The Group remains optimistic about the Grade A commercial property fit-out market in Hong Kong as the pandemic subsides, with expectations for the office leasing market to return to an upward trajectory in Q2 and Q3 2022[74][78]. Shareholder Information - The Group did not have any significant investments, material acquisitions, or disposals during the year ended 31 March 2022[71]. - The Group has not recommended the payment of a final dividend for the year ended 31 March 2022, consistent with the previous year[137]. - The Group's dividend policy aims to balance shareholder expectations with prudent fund management, subject to shareholder approval[135]. - As of March 31, 2022, the Company's distributable reserves amounted to HKD 73.4 million, a decrease from HKD 78.0 million in 2021[145]. Employee and Management Information - The Group focuses on providing competitive remuneration packages to employees to recognize their contributions[126]. - As of March 31, 2022, the total employee cost was approximately HKD 44.9 million, slightly down from HKD 45.2 million as of March 31, 2021, with 83 employees[77]. - The management team anticipates that the efforts made during the pandemic will lead to improved financial performance in the latter part of 2022[75][78]. Risk Factors - The Group is exposed to various risks, including impacts from the pandemic, reliance on subcontractors, and project-based revenue fluctuations[111]. - The Group's liquidity and financial position may be adversely affected if progress payments or retention money are not received in full and on time[120]. - The Group's fee collection and profit margins are dependent on the terms of work contracts, which may not be regular[111]. Share Option and Incentive Plans - The Share Option Scheme allows for the issuance of up to 20,000,000 shares, which is approximately 10% of the total issued share capital as of the annual report date[184]. - The Share Award Scheme permits the grant of up to 2,056,000 shares, representing about 1.03% of the total issued share capital as of the annual report date[188]. - The company aims to attract suitable personnel for its ongoing operations and development through the share incentive plan[189].

Financial Performance - Revenue for the third quarter declined by approximately 25.1% year-on-year to HK$348.5 million[25] - Net profit for the third quarter decreased by approximately 49.0% year-on-year to HK$5.1 million[26] - For the nine months ended December 31, 2021, the company's revenue decreased by 25.1% to HK$348.5 million compared to HK$465.0 million in the same period of 2020[41] - The net profit attributable to owners of the company for the nine months was HK$2.1 million, a decline of 75.8% from HK$8.8 million in the previous year[41] - The profit attributable to owners of the Company decreased by 75.8% to HK$2.1 million for the Current Period, down from HK$8.8 million for the Previous Period[124] - The Group recorded a revenue decrease of 25.1% to HK$348.5 million for the nine months ended 31 December 2021, down from HK$465.0 million for the same period in 2020[123] Gross Profit and Margins - The gross profit margin recorded a substantial year-on-year increase due to higher revenue contribution from the design business[26] - The gross profit margin improved to 8.7%, up from 7.9% year-on-year, due to an increase in the proportion of high-margin design business[41] - Gross profit decreased by 17.5% to HK$30.3 million for the Current Period, compared to HK$36.7 million for the Previous Period[123] Market Conditions - The vacancy rate of Grade A commercial properties in Hong Kong reached 9.6% by the end of December 2021, a year-on-year increase of 0.7 percentage points[25] - The vacancy rate in Central, a key area for Grade A commercial buildings, reached 8.0%[25] - The Group's performance reflects the impact of the emerging COVID-19 variant on Hong Kong's economic activities[25] - The vacancy rate for Grade A commercial properties in Hong Kong reached a recent high at the end of last year, indicating challenges in the market[131] Strategic Approach - The Group adopted a conservative approach by participating in more small-to-medium-scale projects to maintain market position and operating cash flow[26] - The Group's strategy focused on stability and development amidst challenging macroeconomic conditions[25] - The Group aims to strengthen its fit-out business in both Hong Kong and the PRC in anticipation of a market rebound as the pandemic subsides[133] - The Group plans to solidify its business presence in the PRC by participating in more and larger projects, particularly in the Guangdong–Hong Kong–Macau Greater Bay Area[132] Operational Metrics - The operating profit before income tax for the nine months was HK$8.4 million, down 37.3% from HK$13.4 million in the previous year[41] - Total comprehensive income for the period attributable to the owners for the three months ended December 31, 2021, was HK$814,000, a decline of 62.8% from HK$2,189,000 in 2020[49] - The total equity of the company as of December 31, 2021, was HK$154,495,000, an increase from HK$158,728,000 as of December 31, 2020[52] Employee and Shareholder Information - The Group had a total of 83 employees as of December 31, 2021, a decrease from 87 employees as of March 31, 2021[170] - Mr. Wong Sai Chuen holds 112,500,000 shares, representing 56.25% of the issued share capital of the company[190] - Ms. Hui Man Yee, Maggie, as the spouse of Mr. Wong Sai Chuen, is also deemed to be interested in 112,500,000 shares, equating to 56.25%[190] - The company has a significant concentration of ownership, with major shareholders holding over 5% of the shares[190] Cost Management - For the three months ended December 31, 2021, total cost of sales and administrative expenses amounted to HK$134,611,000, a decrease of 17% from HK$161,962,000 in the same period of 2020[89] - Subcontracting charges for the nine months ended December 31, 2021, were HK$294,896,000, down 26% from HK$398,360,000 in the previous year[89] - Administrative expenses decreased by HK$5.8 million or 21.7% to HK$21.0 million for the current period compared to HK$26.8 million in the previous period[153] Future Outlook - The company remains optimistic about the long-term prospects of the fit-out market in Hong Kong and the PRC despite short-to-medium term challenges[34] - The Group believes that the demand for high-end office fit-out services will rebound alongside the recovery of the economy post-pandemic[135] - The Group will closely monitor market dynamics and seek other development opportunities to enrich its business portfolio and enhance shareholder returns[135]

Company Overview - Sanbase Corporation Limited is listed on the GEM of the Hong Kong Stock Exchange under stock code 8501[1]. - The company acknowledges the higher investment risks associated with small and mid-sized companies listed on GEM[2]. - The company has a principal place of business and headquarters located in Hong Kong at 16/F, Loon Kee Building, 267-275 Des Voeux Road Central[18]. - The registered office is situated in the Cayman Islands at 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002[21]. - The Group's ultimate holding company is Madison Square International Investment Limited, with Mr. Wong Sai Chuen as the controlling shareholder[1]. Financial Performance - Revenue for the six months ended 30 September 2021 decreased by 30.1% YoY to HK$210.7 million, down from HK$301.6 million in the same period last year[39]. - Net profit attributable to owners of the Company dropped by 79.6% YoY to HK$1.4 million, compared to HK$6.8 million in the previous year[39]. - Basic and diluted earnings per share decreased by 79.7% to HK$0.70 from HK$3.45 in the previous year[39]. - Revenue for the three months ended September 30, 2021, was HK$122,209,000, a decrease of 22% compared to HK$156,624,000 for the same period in 2020[42]. - Gross profit for the six months ended September 30, 2021, was HK$19,818,000, down from HK$25,545,000 in the previous year, reflecting a decline of 22%[42]. - Profit for the period attributable to owners of the Company was HK$1,977,000 for the three months ended September 30, 2021, compared to HK$2,197,000 in the same period of 2020[44]. - The Group recorded losses for the first time in the first quarter of the fiscal year due to the impact of the COVID-19 pandemic[27]. Revenue Breakdown - Revenue from the PRC's business increased by approximately 117.3% YoY, indicating a recovery in demand for premium fit-out solutions[32]. - Revenue from Hong Kong was HK$199,227,000 for the six months ended September 30, 2021, down 32.8% from HK$296,299,000 in 2020[96]. - The Group's revenue from the PRC for the six months ended September 30, 2021, was HK$11,465,000, a decrease of 52.5% compared to HK$5,275,000 in 2020[96]. - Revenue from bare shell fit-out dropped by 50.1% to HK$96.7 million, contributing 45.9% of total revenue in the current period compared to 64.3% in the previous period[184]. Cost and Expenses - Total cost of sales and administrative expenses reduced by 25.5% to HK$116,839,000 for the three months ended September 30, 2021, from HK$156,756,000 in 2020[102]. - Subcontracting charges decreased by 26% to HK$101,285,000 for the three months ended September 30, 2021, compared to HK$136,853,000 in the same period of 2020[102]. - Administrative expenses decreased from HK$17.1 million in the previous period to HK$13.7 million in the current period, mainly due to reduced staff costs and legal fees[197]. Assets and Liabilities - Total assets as of September 30, 2021, amounted to HK$311,063,000, an increase from HK$265,409,000 as of March 31, 2021[46]. - As of September 30, 2021, total liabilities increased to HK$158,482,000, up 36.3% from HK$116,204,000 as of March 31, 2021[48]. - Trade payables rose to HK$134,983,000, a 32.1% increase from HK$102,215,000[48]. - Trade receivables increased to HK$80.4 million as of 30 September 2021, compared to HK$61.3 million as of 31 March 2021[18]. Management and Governance - The audit committee is chaired by Mr. Cheung Chi Man, Dennis, with other members including Mr. Chan Chi Kwong, Dickson[12]. - The company has appointed PricewaterhouseCoopers as its auditor[16]. - The management discussion and analysis section is included in the interim report, providing insights into the company's performance[9]. Market Conditions - The vacancy rate for Grade A office buildings in Hong Kong rose to 9.8% in September 2021, an increase of 1.2% YoY, with Kowloon East reaching 13.8%[26]. - The Group remains confident that financial performance will improve as the bare shell fit-out market gradually recovers[27]. - The Group believes that demand for fitting-out services will eventually recover post-pandemic, with plans to explore new development opportunities[175]. Future Outlook - The Company plans to enhance service quality in the PRC, broaden the subcontractor network, and develop new customers to promote business growth[34]. - The Group aims to consolidate its existing business and improve the portfolio of subcontractors to enhance service quality and competitiveness[173]. - The Group is actively seeking more projects in the PRC to diversify its geographical distribution, with signs of revenue recovery in its PRC subsidiary[174].

Financial Performance - The Group recorded its first loss since listing due to the impact of the COVID-19 pandemic, with a significant decline in revenue[21]. - Revenue for the three months ended June 30, 2021, was HK$88,483,000, a decrease of 39.0% compared to HK$144,950,000 in the same period of 2020[36]. - Gross profit for the same period was HK$7,185,000, down 52.7% from HK$15,200,000 year-on-year[36]. - The company recorded a loss attributable to owners of the Company of HK$582,000, compared to a profit of HK$4,638,000 in the same period last year, marking a 112.5% decline[36]. - Basic and diluted loss per share was HK$0.29, a decrease of 112.4% from earnings of HK$2.34 per share in the prior year[36]. - The prolonged adverse economic effects of COVID-19 in Hong Kong led to cash flow issues for project owners and customers, resulting in project delays and slowdowns[120]. - The Group reported a loss for the period of HK$272,000, compared to a profit of HK$6,510,000 in the same quarter of 2020[40]. - Total comprehensive loss for the period was HK$177,000, a significant drop from a total comprehensive income of HK$6,517,000 in the prior year[40]. Market Conditions - Economic activities in Hong Kong continued to slump, affecting overall demand for Grade A office space[21]. - The vacancy rate of Hong Kong Grade A office rose to 9.5% by the end of June 2021, an increase of 1.9% year-on-year[21]. - The Central area's vacancy rate remained high at 7.4%, indicating sluggish service demand[21]. - Demand for premium office fit-out services in Hong Kong is expected to remain weak in the second half of 2021, with high vacancy rates in Grade A commercial offices[152]. - The overall business environment remains challenging, with enterprises adopting a wait-and-see approach[21]. Strategic Adjustments - The Group adjusted its go-to-market strategy to focus on lower bidding prices for new projects and to seize opportunities in the churn works market[22]. - The Group faced challenges in tendering due to fierce competition and a conservative market attitude towards business expansion[21]. - The Group's strategy aims to maintain healthy cash flow and business scale despite lower margins in churn works projects[22]. - The economic impact of COVID-19 has led to a strategic shift in project bidding practices to secure more contracts[120]. - The Group has been aggressively tendering for new projects with lower bidding prices to increase the chances of successful bids[120]. Revenue Sources - Revenue from the PRC business nearly tripled year-on-year, indicating a strong recovery post-pandemic[28]. - Revenue from the Hong Kong segment was HK$82,943,000, down 42.2% from HK$143,533,000 in 2020, while revenue from the PRC segment increased to HK$5,540,000 from HK$1,417,000[68]. - The Group's revenue primarily comes from providing interior fit-out solutions, with a significant focus on the Hong Kong and PRC markets[65]. - The Group's revenue from restacking services increased significantly to HK$25,093,000 in 2021 from HK$7,561,000 in 2020, representing a growth of 231.5%[65]. - The Group's design services revenue rose to HK$2,917,000 in 2021 from HK$517,000 in 2020, marking a substantial increase of 463.5%[65]. - The Group's churn works revenue was HK$9,689,000, up from HK$6,763,000 in the previous year, reflecting a growth of 43.5%[65]. Cost Management - Total cost of sales and administrative expenses decreased to HK$87,732,000 in 2021 from HK$136,980,000 in 2020, representing a reduction of approximately 36%[77]. - Staff costs for the three months ended June 30, 2021, were HK$10,300,000, slightly down from HK$10,832,000 in 2020, indicating a decrease of about 4.9%[82]. - Administrative expenses were HK$6,434,000, a decrease of 11% from HK$7,230,000 in 2020[40]. - The Group's cost of sales decreased from HK$129.8 million for the Previous Period to HK$81.3 million for the Current Period, representing a decrease of approximately 37.3%[129]. Shareholding Structure - Mr. Wong Sai Chuen holds 112,500,000 shares, representing 56.25% of the issued share capital[163]. - Ms. Hui Man Yee, Maggie, holds 112,500,000 shares through her spouse's controlled corporation, also representing 56.25%[164]. - Mr. Wong Kin Kei holds 37,500,000 shares, representing 18.75% of the issued share capital[165]. - Madison Square International Investment Limited is a beneficial owner of 112,500,000 shares, accounting for 56.25%[174]. - J&J Partner Investment Group Limited is a beneficial owner of 37,500,000 shares, accounting for 18.75%[174]. - The company’s shareholding structure indicates significant control by Mr. Wong Sai Chuen and his spouse, with a combined interest of 56.25%[173]. Future Outlook - The company remains cautiously optimistic about the long-term prospects of the Grade A office fit-out market in Hong Kong, anticipating a gradual rebound in demand[29]. - The Group anticipates better performance in its PRC business, aiming to strengthen its foothold and seek collaboration opportunities in the Greater Bay Area[153]. - The Group plans to focus on fit-out services in the long run, expecting a gradual rebound in demand for Grade A office leasing as the economy stabilizes[154]. - The Group will continue to explore opportunities for launching its financing business to support long-term growth[157].

Financial Performance - Revenue decreased by 24.6% year-on-year to HKD 481.3 million[26] - Revenue decreased by 24.6% to HKD 481.3 million from HKD 638.0 million in the previous year[46] - Gross profit fell by 60.3% to HKD 25.8 million, with a gross profit margin of 5.4% compared to 10.2% last year[40][46] - Profit attributable to owners of the Company decreased by 97.6% to HKD 0.4 million from HKD 16.2 million in the previous year[47] - The group's profit for the year decreased from HKD 21.7 million last year to HKD 0.4 million for the year ended March 31, 2021[77] - Profit attributable to owners of the Company fell by 97.6% to HKD 0.4 million for the current year, compared to HKD 16.2 million last year[50] - Revenue from bare shell fit-out projects decreased by 53.9% to HKD 249.8 million, contributing 51.9% of total revenue for the year ended 31 March 2021[57] - Other income amounted to HKD 3.7 million for the current year, attributed to government subsidies under the Employment Support Scheme[67] Market Conditions - The number of projects awarded decreased from 234 in 2020 to 155 in 2021[26] - Vacancy rate of Grade A commercial buildings in Hong Kong rose to 9.5% in April 2021, a year-on-year increase of 4.7 percentage points[26] - The vacancy rate for Grade A offices in Hong Kong reached 9.5%, an increase of 4.7 percentage points year-on-year, impacting demand for high-end fit-out services[29] - The overall economic recovery in Hong Kong and globally is expected to drive demand in the local leasing and fit-out market[30] - The Chairman expressed confidence in the long-term demand for Grade A office space, anticipating a recovery in the fit-out business post-pandemic[35][38] Strategic Initiatives - The Group aims to explore business expansion into the Greater Bay Area while maintaining strong relationships with customers and subcontractors[36] - The Group's strategy includes tendering for new projects at lower bidding prices to increase the chances of securing contracts[46] - The Group is committed to providing high-quality fit-out services while delivering sustainable returns to shareholders[37] - The Group aims to maintain a healthy financial position while preparing for future development[26] - The Group is committed to minimizing its carbon footprint and natural resource consumption across all business operations[145] - The company plans to further expand its business into the Greater Bay Area and strengthen collaborations with property management companies and developers[107] - Fit-out services will continue to be the main driver of the company's future growth, leveraging its reputation and technical knowledge[108] Employee and Governance - The Group is committed to supporting its employees during challenging times[26] - The total number of employees as of March 31, 2021, was 87, down from 94 the previous year[105] - The Group provides competitive remuneration packages to employees to recognize their contributions and retain talent[149] - The Group's principal activity is investment holding, primarily engaged in providing interior fit-out solutions in Hong Kong and the PRC[135] - The Company’s board of directors includes both executive and independent non-executive directors, with a total of six directors listed in the report[184][187] Financial Position - The Group's net current assets as of 31 March 2021 were HKD 117.8 million, down from HKD 128.2 million in the previous year[73] - As of March 31, 2021, the Company's distributable reserves amounted to HKD 78.0 million, an increase from HKD 74.0 million in 2020, representing a growth of approximately 5.4%[170][176] - The Group's current ratio was 2.0 times, up from 1.6 times as of March 31, 2020[80] - The equity attributable to owners of the company was HKD 142.5 million as of March 31, 2021, compared to HKD 141.8 million as of March 31, 2020[81] Risks and Challenges - The Group's operations may be affected by external factors such as the pandemic, which could slow down project progress[137] - The Group relies on subcontractors for various trades, exposing it to risks associated with fluctuations in subcontracting costs and performance issues[137] - The business is project-based, with fee collection and profit margins dependent on contract terms, which may not be regular[137] - The Group's liquidity and financial position may be adversely affected if progress payments or retention money are not received in full and on time[147] - The Group's principal risks and uncertainties include dependency on subcontractors and the impact of public health incidents[137] Corporate Actions - The Board did not recommend the payment of a final dividend for the year ended 31 March 2021[72] - The Company has not recommended the payment of a final dividend for the year ended March 31, 2021[162] - The Group's dividend policy aims to balance shareholder expectations with prudent fund management[161] - Charitable and other donations made by the Group during the year were less than HKD 0.2 million, compared to less than HKD 0.1 million in 2020, indicating a slight increase in philanthropic efforts[171][177]

第三季度報告 SANBASE CORPORATION LIMITED 莊皇集團公 司 （於開曼群島註冊成立的有限公司） Stock code (Incorporated in the Cayman Islands with limited liability) 股份代號: 8501 THIRD QUARTERLY REPORT 2020 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks o ...

Market Conditions - The overall vacancy rate of Grade A office buildings in Hong Kong rose to 8.1% in August 2020, with the Central District reaching a record high of 6.0%[23]. - The COVID-19 pandemic has created significant business headwinds for Hong Kong enterprises, the most severe since the SARS epidemic in 2003[23]. - Companies that initially planned for business expansion are postponing their relocation plans due to the unpredictable market environment[23]. - The Group remains confident in its leading position in the Hong Kong market and anticipates increased demand for Grade A office space as the economy recovers[25]. - Future market demand is expected to rise as more Chinese companies return to Hong Kong for listing, driving demand for fit-out projects[25]. - The outlook for the office leasing market is cautiously optimistic, with expectations of a rebound in short-to-medium-term leases due to potential demand from returning companies[175]. - The impact of the COVID-19 pandemic has intensified, creating significant business challenges, but there are signs of market adjustment that may benefit the fit-out industry[175]. Financial Performance - Revenue for the first six months decreased by approximately 13.2% from HK$347.4 million to HK$301.6 million[27]. - Revenue for the three months ended September 30, 2020, was HK$156,624, a decrease of 6.9% compared to HK$167,856 for the same period in 2019[39]. - Revenue from restacking projects increased by approximately 2.3 times year-on-year from HK$29.7 million to HK$96.9 million[27]. - Profit before income tax decreased by 25.4% from HK$12.5 million to HK$9.3 million[37]. - Profit attributable to owners of the Company increased by 48.9% from HK$4.6 million to HK$6.8 million[37]. - Basic and diluted earnings per share rose by 48.7% from HK$2.32 to HK$3.45[37]. - The Group recorded a revenue decrease of 13.2% to HK$301.6 million for the six months ended 30 September 2020, down from HK$347.4 million for the same period in 2019[168]. - Gross profit decreased by 12.1% to HK$25.5 million for the Current Period, compared to HK$29.0 million for the Previous Period[168]. - The Group's total expenses for the six months ended September 30, 2020, were HK$293,115,000, down from HK$332,791,000 in the same period of 2019[101]. Cost Management - The Group plans to implement various cost control measures to minimize operational cost pressures[25]. - The Group aims to refine its subcontractor portfolio to control operational costs more effectively[176]. - Administrative expenses increased to HK$17.1 million from HK$14.4 million, mainly due to higher staff costs and legal fees[199]. - The Group's cost of sales decreased by 13.3% to HK$276.0 million from HK$318.3 million in the previous period[190]. Assets and Liabilities - Total assets as of September 30, 2020, were HK$368,737, a slight decrease from HK$370,858 as of March 31, 2020[43]. - Total liabilities decreased from HK$218,653,000 as of March 31, 2020, to HK$213,683,000 as of September 30, 2020, representing a reduction of approximately 2.2%[45]. - Current liabilities decreased from HK$215,879,000 to HK$211,296,000, a decline of about 2.7%[45]. - Trade and retention receivables increased to HK$121,625 as of September 30, 2020, from HK$75,556 as of March 31, 2020[43]. - Trade payables decreased from HK$201,835,000 to HK$185,541,000, a decline of about 8.0%[45]. Government Support and Grants - The Group received government subsidies amounting to HK$2,483,000 during the six months ended September 30, 2020, to support employee retention amid COVID-19[103]. - Other income amounted to HK$2.5 million due to government subsidies received under the Employment Support Scheme[195]. Strategic Initiatives - The Group plans to solidify its existing business by seeking more opportunities with current clients and exploring collaborations with property management companies[176]. - The Group continues to seek collaboration opportunities with existing clients and explore partnerships with property management companies and developers to drive organic growth[179]. - A financing company was acquired mid-year to develop a new income stream through mortgage services, although it has not yet commenced operations due to market uncertainties[177]. - The acquisition of Yu Rong Capital Limited on June 1, 2020, was completed for a consideration of approximately HK$2,550,000, aimed at diversifying the Group's existing business[138]. Financial Risks and Management - The Group's activities expose it to a variety of financial risks, including market risk, credit risk, and liquidity risk[73]. - The interim condensed consolidated financial information does not include all financial risk management information and disclosures required in the annual financial statements[74]. - The Group's financial risk management policies have remained unchanged since March 31, 2020[77].

Financial Performance - The unaudited condensed consolidated results for the three months ended June 30, 2020, were presented, indicating the financial performance of the Group[24]. - The report includes a summary of financial highlights, although specific figures are not provided in the extracted content[9]. - For the three months ended June 30, 2020, the company's revenue decreased by approximately 19.3% to approximately HK$144.9 million compared to HK$179.5 million for the same period in 2019[26]. - Gross profit increased by approximately 2.6% to approximately HK$15.2 million, up from approximately HK$14.8 million in the same period in 2019[26]. - Net profit recorded a notable increase of approximately 4.4% year-on-year, demonstrating resilience amid challenging market conditions[26]. - Profit before income tax attributable to owners of the company increased by 6.7% to HK$8.6 million, up from HK$8.0 million in the same period in 2019[38]. - Profit for the period attributable to owners of the Company was HK$4,638,000, compared to HK$3,513,000 in the same period of 2019, reflecting a 32.0% increase[46]. - Total comprehensive income for the period was HK$6,517,000, up from HK$6,174,000 year-on-year, indicating a 5.6% increase[46]. - Basic and diluted earnings per share increased by 32.2% to 2.34 HK cents, compared to 1.77 HK cents in the previous year[38]. Market Conditions - The Company operates under a higher investment risk profile typical of small and mid-sized companies listed on GEM[3]. - There is a potential for high market volatility in securities traded on GEM, which may affect liquidity[4]. - In the first half of 2020, the leasing market for Grade A offices in Hong Kong saw a 53% year-on-year decrease in total gross floor area leased, marking the largest adjustment since the 2008/09 financial crisis[25]. - The overall vacancy rate of Grade A offices in Hong Kong rose to 7.6%, the highest level since September 2009[25]. - The leasing market is expected to continue to slump in the second half of the year, negatively impacting the fit-out services of Grade A office[153]. - The Group anticipates a challenging business environment in Hong Kong due to factors such as the COVID-19 pandemic and social unrest, which may negatively impact the leasing market for Grade A office space[157]. - The Group believes that a significant adjustment in Grade A office rents may lead to a rebound in the leasing market, benefiting the fitting-out services industry[157]. Corporate Governance - The Company emphasizes compliance with the GEM Listing Rules, ensuring the accuracy and completeness of the financial information presented[6]. - The Board of Directors collectively accepts full responsibility for the contents of the quarterly report, confirming no misleading or deceptive information is included[6]. - The report outlines the corporate governance structure, including various committees such as the Audit Committee and Remuneration Committee[11]. Revenue Breakdown - Revenue from the Hong Kong market was HK$143,533,000, down from HK$157,213,000, representing a decline of 8.7% year-over-year[72]. - Revenue from the PRC market significantly decreased to HK$1,417,000 from HK$22,325,000, reflecting a decline of 93.7%[72]. - The Group's revenue primarily comes from providing interior fit-out solutions, with the bare shell fit-out segment generating HK$129,472,000, down from HK$153,565,000, a decrease of 15.7%[66]. - The reinstatement segment saw revenue drop to HK$216,000 from HK$5,114,000, a decline of 95.8%[66]. - The Group's maintenance and other services generated HK$421,000, down from HK$761,000, a decrease of 44.7%[66]. - Bare shell fit-out contributed approximately 89.3% of the Group's total revenue for the three months ended 30 June 2020[123]. Cost Management - Total cost of sales and administrative expenses decreased to HK$136,359,000 in 2020 from HK$171,386,000 in 2019, a reduction of 20.5%[79]. - Subcontracting charges were HK$117,239,000 in 2020, down from HK$154,206,000 in 2019, indicating a decrease of 23.9%[79]. - Administrative expenses slightly decreased to HK$6,609,000 from HK$6,663,000, showing a reduction of 0.8%[42]. - The Group's cost of sales decreased from HK$164.7 million in the Previous Period to HK$129.8 million in the Current Period, representing a decrease of approximately 21.2%[130]. Strategic Plans - The company anticipates that external factors, such as the secondary listing of China Concepts Stocks in Hong Kong, may boost leasing demand in the second half of the year[31]. - Strategic deployment in the Guangdong-Hong Kong-Macao Greater Bay Area and Southeast Asia is planned to enhance future synergy and business opportunities[32]. - The Group plans to continue developing its business in China and overseas, particularly in Cambodia, Vietnam, Singapore, and Malaysia, to enhance its brand image[162]. - The Group aims to solidify its existing business by seeking more cooperation opportunities among current clients and exploring partnerships with other property management companies[158]. - The Group is focused on improving its subcontractor portfolio to enhance cost management while maintaining construction quality[158]. - The Group's strategy includes identifying more competitive subcontractors to strengthen cost control[158]. Employee and Shareholder Information - The Group had a total of 93 employees as of June 30, 2020, a slight decrease from 94 employees as of March 31, 2020[152]. - As of June 30, 2020, Madison Square International Investment Limited held 112,500,000 shares, representing 56.25% of the issued share capital of the company[182]. - J&J Partner Investment Group Limited held 37,500,000 shares, accounting for 18.75% of the issued share capital[182]. - The company did not purchase, sell, or redeem any of its listed securities during the current period, except for trustee purchases under the Share Award Scheme[190]. - The company adopted a Share Option Scheme on December 8, 2017, aimed at attracting and retaining employees and directors[196]. Financial Statements and Reporting - The Group's financial information is prepared in accordance with Hong Kong Financial Reporting Standards and is presented in thousands of Hong Kong dollars (HK$'000)[63]. - The unaudited condensed consolidated financial statements should be read in conjunction with the annual report for the year ended March 31, 2020[63]. - The Group has not applied any new and revised HKFRSs that are not yet effective for the current period[63].