Financial Performance - The Group's unaudited consolidated revenue for the six months ended 30 September 2024 was approximately HK$867.0 million, an increase of 15.7% compared to approximately HK$749.2 million in the corresponding period in 2023[26] - The E-Commerce business generated revenue of approximately HK$277.4 million during the Period, up from approximately HK$165.9 million in the same period last year, representing a growth of 67.2%[26] - The gross profit for the Period was approximately HK$190.7 million, compared to approximately HK$131.5 million in the corresponding period in 2023, reflecting a gross profit margin increase to approximately 22.0% from 17.6%[27] - The Group's unaudited consolidated revenue for the period was approximately HK$867 million, an increase from approximately HK$749.2 million in the same period last year, primarily driven by e-commerce revenue of approximately HK$277.4 million compared to HK$165.9 million in the previous year[29] - Gross profit for the period was approximately HK$190.7 million, with a gross profit margin of approximately 22.0%, up from 17.6% in the same period last year[29] - Profit attributable to the owners of the Company decreased to approximately HK$17.5 million, representing a decrease of 15.7% from approximately HK$20.8 million in the same period last year[33] - The Group expects growth in its e-commerce business in the coming years, driven by changes in consumer habits and increased demand for online consumption[34] - Operating profit increased to HK$39,764,000, up from HK$35,191,000, representing an increase of 16.3% year-over-year[94] - Profit for the period was HK$31,495,000, which is a 9.1% increase from HK$28,844,000 in the previous year[96] Construction and E-Commerce Segments - The Group was awarded 3 new construction projects with a total contract value of approximately HK$149.4 million during the Period[17] - As of 30 September 2024, there were 26 ongoing projects with an outstanding contract sum of approximately HK$425.7 million[17] - The Group holds a 51% equity interest in CK Baiyin, which operates in the E-Commerce sector since March 2021[23] - The E-Commerce business focuses on providing high-quality and diversified products, including agricultural products, nutritional supplements, daily necessities, and cosmetics[25] - The construction business includes both conventional and prefabricated formwork services, contributing to the Group's overall service offerings[15] - Revenue from construction business amounted to HK$589,531,000, slightly up by 1.4% from HK$583,265,000 in the previous year[132] - The Group operates primarily in two segments: construction services in Hong Kong and E-Commerce in the PRC[127] - The reportable segment profit before tax for the construction business was HK$8,179, and for the e-commerce business, it was HK$38,180, leading to a total profit before tax of HK$42,283, compared to HK$36,771 in the previous year, indicating a 15.5% increase[143] Financial Position and Ratios - The current ratio improved to 4.7 times as of September 30, 2024, compared to 4.4 times as of March 31, 2024[45] - The gearing ratio decreased to 2.2% as of September 30, 2024, down from 6.7% as of March 31, 2024[45] - The Group's equity increased to approximately HK$503.2 million as of September 30, 2024, compared to approximately HK$479.5 million as of March 31, 2024[49] - Current ratio increased from 4.4 as of March 31, 2024, to 4.7 as of September 30, 2024, due to an increase in trade receivables and contract assets[49] - Gearing ratio decreased from 6.7% as of March 31, 2024, to 2.2% as of September 30, 2024, attributed to a decrease in bank borrowings during the period[49] - Total assets as of September 30, 2024, increased to HK$639,357,000, up from HK$622,241,000 as of March 31, 2024, representing a growth of approximately 2%[98] - Total equity as of September 30, 2024, was HK$503,229,000, an increase from HK$479,504,000 as of March 31, 2024, reflecting a growth of 4.9%[100] Cash Flow and Liquidity - As of September 30, 2024, the Group had cash and cash equivalents of approximately HK$168.3 million, down from approximately HK$227.6 million as of March 31, 2024[49] - The company reported a decrease in cash and cash equivalents of HK$58,897,000 for the six months ended September 30, 2024, compared to a decrease of HK$88,165,000 in the previous year[105] - Net cash used in operating activities amounted to HK$29,530,000, a decrease from HK$91,899,000 in the same period of 2023[105] - Cash flows from investing activities generated net cash of HK$3,067,000, compared to HK$2,581,000 in the previous year[105] - Net cash used in financing activities amounted to HK$32,434,000, contrasting with a net cash generation of HK$1,153,000 in the prior year[105] - The total cash and cash equivalents at the end of the period were HK$168,298,000, down from HK$230,524,000 at the end of the same period in 2023[105] Corporate Governance and Compliance - The interim report highlights the importance of corporate governance and compliance with regulatory requirements[69] - The Company complied with all applicable provisions of the Corporate Governance Code except for the deviation regarding the separation of the roles of chairman and chief executive[81] - All Directors confirmed compliance with the Model Code for Securities Transactions during the reporting period[81] - The Audit Committee, comprising three independent non-executive Directors, reviewed the financial reporting process and internal control systems[86] Shareholder Information - Magnificent Faith Limited has entered into a conditional sale agreement to dispose of 70,000,000 shares, representing 7% of the issued share capital of the Company[67] - As of the interim report date, Magnificent Faith holds 446,750,000 shares, accounting for approximately 44.6% of the Company's interests[74] - The report indicates that substantial shareholders with interests of 10% or more include Mr. Lo, Mrs. Lo, CT Vision, and ZCB[73] - The Company is subject to the provisions of the Securities and Futures Ordinance regarding the disclosure of interests in shares[73]

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 867,001 thousand, representing a 15.7% increase from HKD 749,157 thousand in 2023[2] - Gross profit for the same period was HKD 190,709 thousand, up 45% from HKD 131,458 thousand year-on-year[2] - Profit attributable to owners of the company decreased to HKD 17,538 thousand, down 15.4% from HKD 20,811 thousand in the previous year[2] - Basic earnings per share for the period was HKD 1.75, compared to HKD 2.08 in 2023, reflecting a decline of 15.8%[2] - Operating profit for the six months was HKD 39,764 thousand, an increase from HKD 35,191 thousand in the same period last year[4] - Total comprehensive income for the period was HKD 29,057 thousand, compared to HKD 24,152 thousand in 2023, marking a 20.1% increase[10] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 639,357 thousand, up from HKD 622,241 thousand as of March 31, 2024[13] - Current assets increased to HKD 635,451 thousand from HKD 617,413 thousand, indicating a growth in liquidity[13] - The company’s total equity attributable to owners increased to HKD 492,349 thousand from HKD 470,294 thousand, showing a growth of 4.7%[15] - Total liabilities decreased to HKD 136,128 thousand as of September 30, 2024, from HKD 142,737 thousand as of March 31, 2024, showing a reduction of 4.6%[40] Cash Flow - For the six months ended September 30, 2024, the company reported a net cash outflow from operating activities of HKD (29,530) thousand, compared to HKD (91,899) thousand for the same period in 2023, representing a significant improvement[21] - The total cash and cash equivalents at the end of the period were HKD 168,298 thousand, down from HKD 230,524 thousand at the end of the same period last year, indicating a decrease of 27%[21] - The company incurred financing cash outflows of HKD (32,434) thousand, a stark contrast to a cash inflow of HKD 1,153 thousand in the prior year, highlighting a shift in financing strategy[21] - Operating cash used in operations was HKD (31,985) thousand, a reduction of 66% compared to HKD (93,377) thousand in the same period last year, reflecting improved operational efficiency[21] Revenue Segmentation - Revenue from construction business, including formwork services, was HKD 589,531 thousand, slightly up from HKD 583,265 thousand in the previous year, while e-commerce business revenue increased to HKD 277,470 thousand from HKD 165,892 thousand[36] - The construction business segment generated contract revenue of HKD 567,879 thousand from formwork services, an increase of 13% from HKD 500,795 thousand in the previous year[36] - Reported segment revenue for the construction business was HKD 583,265 thousand, while e-commerce business revenue was HKD 277,470 thousand, totaling HKD 867,001 thousand for the six months ended September 30, 2024, representing a 15.7% increase from HKD 749,157 thousand in the same period of 2023[41] Expenses - Selling and administrative expenses increased to approximately HKD 151,100,000 from HKD 96,700,000 in the previous year, mainly due to increased sales commission expenses related to e-commerce[86] - Employee costs, including director remuneration, rose to HKD 130,777 thousand for the six months ended September 30, 2024, compared to HKD 120,665 thousand in the previous year, an increase of 8.8%[47] - The company reported a total income tax expense of HKD 10,788 thousand for the six months ended September 30, 2024, compared to HKD 7,927 thousand in the same period of 2023, reflecting an increase of 36.5%[49] Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions until September 30, 2024, except for the separation of the roles of Chairman and CEO, which are currently performed collectively by the executive directors[106] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the financial reporting process and risk management[114] - The interim results announcement has not been audited by external auditors but has been reviewed by the audit committee[115] Future Outlook - The board remains confident in the future development of the group's operational scale despite challenges in the construction business in Hong Kong[89] - The company is focused on expanding its e-commerce operations in China, which has shown significant growth potential in recent periods[36]

Financial Performance - Chi Kan Holdings Limited reported a significant increase in revenue, achieving a total of $150 million, representing a 25% year-over-year growth[1]. - The company reported a net profit of $27 million, which is a 35% increase from the last fiscal year[1]. - The Group's audited consolidated revenue for FY2024 was approximately HK$1,538.8 million, a decrease of 5.2% from approximately HK$1,623.5 million in FY2023[18]. - Gross profit for FY2024 increased to approximately HK$246.0 million, up 11.3% from approximately HK$221.1 million in FY2023, with a gross profit margin rising from 13.6% to 15.9%[18]. - Profit attributable to the owners of the Company decreased by 47.4% to approximately HK$28.1 million in FY2024, down from approximately HK$53.5 million in FY2023[18]. - Adjusted profit excluding government subsidies for FY2024 was approximately HK$28.1 million, a decrease of 11.7% from approximately HK$31.8 million in FY2023[18]. Market Expansion and Strategy - The company has expanded its user base to 1.2 million active users, marking a 30% increase compared to the previous year[1]. - For the upcoming fiscal year, Chi Kan Holdings Limited projects a revenue growth of 20%, targeting $180 million in total revenue[1]. - Chi Kan Holdings Limited plans to enter two new markets in Southeast Asia by the end of the fiscal year, aiming to capture an additional 15% market share[1]. - The company is investing $10 million in research and development for new product innovations, focusing on enhancing user experience and technology integration[1]. - The company has completed a strategic acquisition of a local tech firm for $5 million, which is expected to enhance its technological capabilities[1]. E-Commerce Business - The Group has been engaged in E-Commerce business since March 2021, offering over 500 types of products across various platforms[8]. - The E-Commerce segment is strategically positioned as a brand retailer, generating income primarily from private E-Commerce platforms[15]. - The company emphasizes high quality and diversified products in its E-Commerce business, including agricultural products, nutritional supplements, daily necessities, and cosmetics[16]. - E-Commerce business revenue increased to approximately HK$326.7 million in FY2024, compared to approximately HK$249.8 million in FY2023, reflecting a growth of 30.8%[18]. Operational Efficiency - Operating profit margin improved to 18%, up from 15% in the previous year, reflecting better cost management strategies[1]. - Selling and administrative expenses rose by HK$22.0 million to approximately HK$189.2 million in FY2024, primarily due to increased operating expenses in the E-Commerce sector[18]. - The Group completed 11 existing projects during FY2024, showcasing its operational capacity despite challenges[13]. Risk Management and Challenges - The Group faces challenges in securing new projects, which are critical for maintaining revenue, as contracts are awarded on a project-by-project basis without long-term agreements[21]. - Cash flow mismatch may adversely affect liquidity, as the Group incurs upfront costs before receiving payments from customers, who typically retain 5% of the total contract sum as retention money[22]. - The Group's revenue is of a non-recurring nature, and failure to secure new projects may significantly adversely affect its business, operating performance, financial condition, and future prospects[23]. - There is a potential mismatch in cash flow due to the timing of progress payments from customers and payments to suppliers and subcontractors, which may lead to a deterioration in cash flows and financial position[25]. Sustainability and Governance - Chi Kan Holdings Limited is focusing on sustainability initiatives, allocating 5% of its annual budget towards environmental and social governance projects[1]. - The Group aims for sustainable development by strictly selecting products and manufacturers to ensure quality[16]. - The Group's commitment to sustainability includes regular communication with stakeholders to identify important sustainability topics[169]. - The Group emphasizes the importance of sustainability as a critical element for maintaining its leading position in the industry and positively contributing to community development[171]. Corporate Governance - The Company has complied with all relevant laws and regulations in Hong Kong during FY2024, ensuring operational legitimacy[31]. - The Board composition includes a mix of executive and independent non-executive directors, ensuring a balance of skills and experience[119]. - The Company has established transparent procedures for developing remuneration policies to ensure no Director participates in deciding their own remuneration[133]. - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors during the year[115]. Employee and Management - The Group had 1,118 employees as at 31 March 2024, an increase from 605 employees in 2023[43]. - The management team is stable and experienced, contributing to the delivery of high-quality work and customer satisfaction[30]. - The Group's management team includes experienced professionals with backgrounds in finance, engineering, and project management[67]. Shareholder Engagement - The Group encourages shareholders to participate in general meetings and allows them to propose agenda items through written requisition[166]. - The Company maintains effective communication with shareholders through annual general meetings and its website[166]. - The Board is responsible for protecting and enhancing long-term shareholders' value and overseeing management and financial performance[118].

Financial Performance - Revenue for the fiscal year ended March 31, 2024, decreased by approximately 5.2% to about HKD 1,538,800,000, compared to HKD 1,623,500,000 for the fiscal year ended March 31, 2023[2] - Profit attributable to owners of the company for the fiscal year 2024 was approximately HKD 28,100,000, a decrease of about 47.4% from approximately HKD 53,500,000 in the fiscal year 2023[2] - Total comprehensive income for the year was HKD 40,241,000, compared to HKD 57,365,000 in the previous year[5] - The group's net profit for the year ended March 31, 2024, was approximately HKD 28,107,000, a decrease from HKD 53,501,000 in 2023, reflecting a decline of 47.5%[26] - The audited consolidated revenue for the fiscal year 2024 was approximately HKD 1,538.8 million, a decrease from HKD 1,623.5 million in the fiscal year 2023[43] - The net profit attributable to owners decreased to approximately HKD 28.1 million, a decline of 47.4% compared to HKD 53.5 million in the previous year[44] Profitability Metrics - Gross profit margin increased from approximately 13.6% in the fiscal year 2023 to about 15.9% in the fiscal year 2024, driven by an increase in e-commerce gross profit from approximately HKD 170,800,000 to HKD 214,100,000[2] - Adjusted profit attributable to owners, excluding non-recurring government subsidies, was approximately HKD 28,100,000, down about 11.7% from approximately HKD 31,800,000 in the fiscal year 2023[2] - The gross profit for fiscal year 2024 was approximately HKD 246 million, with a gross profit margin of about 15.9%, up from 13.6% in the previous fiscal year[43] Revenue Breakdown - The construction business generated revenue of HKD 1,212,063,000, down from HKD 1,373,748,000, representing a decline of 11.8%[17] - E-commerce business revenue increased to HKD 326,790,000, up 30.8% from HKD 249,825,000 in the previous year[17] Assets and Liabilities - Non-current assets as of March 31, 2024, amounted to HKD 4,828,000, compared to HKD 4,779,000 in the previous year[6] - Current assets decreased from HKD 706,766,000 in 2023 to HKD 617,413,000 in 2024[6] - Total liabilities decreased from HKD 254,966,000 in 2023 to HKD 141,866,000 in 2024[6] - Net assets attributable to owners of the company increased from HKD 445,551,000 in 2023 to HKD 470,294,000 in 2024[7] Cash Flow and Financing - The group had approximately HKD 227.6 million in cash and cash equivalents as of March 31, 2024, down from HKD 318.8 million in the previous year[47] - Financing income net amount reached HKD 3,007,000, significantly up from HKD 442,000 in 2023, marking a growth of 579%[22] Employee and Operational Metrics - Total employee benefits expenses, including directors' remuneration, amounted to HKD 273,914, an increase of 23% from HKD 222,639 in the previous year[20] - The group employed 1,118 staff as of March 31, 2024, an increase from 605 in the previous year[48] Dividends and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the fiscal year 2024[2] - The group did not declare or recommend any dividends during the year, consistent with the previous year[27] Government Subsidies and Support - The company received government subsidies of HKD 25,000 in the current year, a significant decrease from HKD 21,670,000 in the previous year[18] Future Outlook - The company anticipates a recovery in e-commerce business as the COVID-19 pandemic ends, with expectations of continued growth in the online retail market due to changing consumer habits[51] - The company remains confident in its future operational scale development despite challenges in the construction industry in Hong Kong, supported by government policies on land supply and infrastructure investment[51] Compliance and Governance - The company has adopted the corporate governance code and has complied with all applicable provisions up to March 31, 2024, with some deviations noted regarding the separation of roles between the chairman and CEO[54] - The audit committee, composed of three independent non-executive directors, has reviewed the consolidated financial statements for the year ending March 31, 2024[55] - The external auditor confirmed that the preliminary announcement figures are consistent with the audited consolidated financial statements for the year ending March 31, 2024[56] Other Financial Metrics - The current ratio improved from 2.8 times in 2023 to 4.4 times in 2024, primarily due to a decrease in trade payables[46] - The asset-to-liability ratio increased from 6.5% in 2023 to 6.7% in 2024, mainly due to an increase in bank borrowings[46]

Revenue Performance - The Group's unaudited consolidated revenue for the six months ended 30 September 2023 was approximately HK$749.2 million, a decrease from approximately HK$776.0 million in the corresponding period of 2022[30]. - The construction business contributed approximately HK$583.3 million to revenue, down from approximately HK$642.4 million in the same period last year, with 25 projects ongoing as of 30 September 2023[30]. - E-Commerce business revenue increased to approximately HK$165.9 million, compared to approximately HK$133.6 million in the corresponding period of 2022, reflecting a growth of about 24%[30]. - The Group's unaudited consolidated revenue for the period was approximately HK$749.2 million, a decrease from HK$776.0 million in the same period last year, primarily due to a decline in construction business revenue[31]. - Revenue for the six months ended September 30, 2023, was HK$749,157,000, a decrease of 3.9% from HK$776,006,000 in the same period last year[74]. - Revenue from construction business was HK$583,265,000, down 9.2% from HK$642,409,000 in the previous year, with formwork services contributing HK$500,795,000 and other construction services contributing HK$82,470,000[103]. - E-Commerce business revenue increased by 24.1% to HK$165,892,000 from HK$133,597,000 year-over-year[123]. Profitability - The gross profit for the Period was approximately HK$131.5 million, up from approximately HK$121.1 million in the previous year, resulting in a gross profit margin of approximately 17.6%, compared to 15.6% in 2022[30]. - Profit attributable to the owners of the Company decreased to approximately HK$20.8 million, representing a 23.2% decline from approximately HK$27.1 million in the same period last year[33]. - The adjusted profit for the year attributable to owners of the Company was approximately HK$20.8 million, a slight increase of 6.7% compared to approximately HK$19.5 million last year[33]. - Operating profit for the period was HK$35,191,000, a slight decrease of 4.7% compared to HK$36,935,000 in the previous year[74]. - Profit for the period attributable to owners of the Company was HK$20,811,000, down 23.2% from HK$27,146,000 in the same period last year[74]. - Total comprehensive income attributable to owners of the Company increased to HK$16,564,000, compared to HK$21,013,000 in the same period last year, reflecting a decline of 21.3%[76]. - Profit before income tax for the six months ended 30 September 2023 was HK$5,033,000, down from HK$6,891,000 in the same period of 2022[127]. Expenses and Costs - Selling and administrative expenses increased by HK$5.1 million to approximately HK$96.7 million, mainly due to higher selling commission expenses for the E-Commerce business[32]. - Interest expenses for the period amounted to HK$1,001,000, while interest income was HK$2,581,000, resulting in a net interest income of HK$1,580,000[110]. - Key management compensation for the six months ended September 30, 2023, was HK$2,418,000, a decrease of 9.7% from HK$2,677,000 in the same period of 2022[169]. Financial Position - The current ratio improved to 4.0 times as of September 30, 2023, compared to 2.8 times as of March 31, 2023, indicating better liquidity[42]. - The gearing ratio increased slightly to 6.7% as of September 30, 2023, from 6.5% as of March 31, 2023, reflecting stable financial leverage[42]. - The Group had cash and cash equivalents of approximately HK$230.5 million, down from approximately HK$318.8 million as at 31 March 2023[45]. - The Group's capital structure consisted of equity of approximately HK$470.1 million and debts of approximately HK$31.6 million as at 30 September 2023[45]. - Total assets decreased to HK$624,537,000, down 12.2% from HK$711,545,000 as of March 31, 2023[78]. - Current assets saw a decline to HK$620,730,000, down 12.2% from HK$706,766,000[78]. - Cash and cash equivalents decreased to HK$230,524,000, down 27.7% from HK$318,830,000[78]. - The Group's total segment revenue for the construction business and E-Commerce business combined was HK$749,157,000 for the six months ended September 30, 2023[110]. E-Commerce Business - The Group has been engaged in E-Commerce since March 2021, holding a 51% equity interest in CK Baiyin, which operates on private E-Commerce platforms[27]. - The E-Commerce business offers a variety of products, including selenium-rich agricultural products, nutritional supplements, daily necessities, and cosmetic products[28]. - The increase in E-Commerce revenue indicates a successful adaptation to the rapidly developing online retail market[30]. - The Group expects growth in its E-Commerce business in the coming years as the impact of COVID-19 subsides, driven by changing consumer habits towards online consumption[34]. Construction Business - The Group was awarded 7 new construction projects with a total contract value of approximately HK$642.8 million during the Period[24]. - As of 30 September 2023, there were 25 ongoing projects with an outstanding contract sum of approximately HK$1,140.2 million[24]. - The Group remains confident in its future development in the construction business despite a challenging environment, supported by government policies on land supply and infrastructure investments[35]. - The construction business segment's assets decreased to HK$526,874,000 from HK$601,724,000, a decline of 12.4%[115]. Shareholder Information - Mr. Lo and Mrs. Lo each hold 446,750,000 shares, representing a 44.6% interest in the company[55]. - Magnificent Faith, a company controlled by Mr. Lo, is deemed to hold the same 44.6% interest in the company[60]. - CT Vision Strategic Company Limited holds 140,310,000 shares, accounting for 14.0% of the company's interests[61]. - Zhongchuang Boli (Hong Kong) Company Limited has a beneficial ownership of 100,000,000 shares, which is 10.0% of the company's interests[61]. - The company has not identified any substantial shareholders with interests of 10% or more in any class of share capital carrying voting rights[63]. Governance and Compliance - The Company has adopted the Corporate Governance Code and complied with all applicable provisions except for the separation of the roles of chairman and chief executive[67]. - The Audit Committee currently consists of three independent non-executive Directors, overseeing financial reporting and risk management[70]. - The financial report for the six months ended September 30, 2023, was reviewed by the Audit Committee with no disagreements noted, ensuring compliance and accuracy in reporting[170].

[Company Overview and Financial Summary](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88%E4%B8%8E%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) This section presents the company's fundamental details and a concise overview of its financial performance for the six months ended September 30, 2023 [Company Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) CHI KAN HOLDINGS LIMITED (Stock Code: 9913) is a company incorporated in the Cayman Islands, listed on the Main Board of the Hong Kong Stock Exchange on August 14, 2020, with this announcement covering interim results for the six months ended September 30, 2023 - Company Name: **CHI KAN HOLDINGS LIMITED** [1](index=1&type=chunk) - Stock Code: **9913** [1](index=1&type=chunk) - Place of Incorporation: **Cayman Islands** [1](index=1&type=chunk) - Announcement Type: Interim results for the **six months ended September 30, 2023** [1](index=1&type=chunk) [Financial Summary](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) For the six months ended September 30, 2023, the company's revenue decreased by 3.46% year-on-year, while gross profit increased by 8.53%, with profit attributable to owners and basic earnings per share both declining Financial Summary for the Six Months Ended September 30, 2023 | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 749,157 | 776,006 | -3.46% | | Gross Profit | 131,458 | 121,125 | 8.53% | | Profit attributable to owners of the Company | 20,811 | 27,146 | -23.20% | | Basic earnings per share (HK cents per share) | 2.08 | 2.71 | -23.10% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the condensed consolidated financial statements, including the statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended September 30, 2023, revenue slightly decreased, but gross profit increased, while profit for the period and profit attributable to owners both declined due to a significant reduction in other income and increased income tax expense Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 749,157 | 776,006 | -3.46% | | Cost of revenue | (617,699) | (654,881) | -5.68% | | Gross Profit | 131,458 | 121,125 | 8.53% | | Other income | 436 | 7,614 | -94.28% | | Selling and administrative expenses | (96,703) | (91,589) | 5.58% | | Operating Profit | 35,191 | 36,935 | -4.72% | | Net finance income/(costs) | 1,580 | 298 | 430.20% | | Profit before income tax | 36,771 | 37,233 | -1.24% | | Income tax expense | (7,927) | (6,837) | 16.09% | | Profit for the period | 28,844 | 30,396 | -5.11% | | Profit attributable to owners of the Company | 20,811 | 27,146 | -23.20% | | Non-controlling interests | 8,033 | 3,250 | 147.17% | | Basic earnings per share (HK cents per share) | 2.08 | 2.71 | -23.10% | [Condensed Consolidated Statement of Total Comprehensive Income](index=3&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E6%80%BB%E9%A2%9D%E8%A1%A8) For the six months ended September 30, 2023, total comprehensive income for the period slightly increased, primarily due to a significant rise in total comprehensive income attributable to non-controlling interests, despite a decrease for owners of the Company Key Data from Condensed Consolidated Statement of Total Comprehensive Income | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 28,844 | 30,396 | -5.11% | | Exchange differences on translation of foreign operations | (4,692) | (6,734) | -30.32% | | Total comprehensive income for the period | 24,152 | 23,662 | 2.07% | | Total comprehensive income attributable to owners of the Company | 16,564 | 21,013 | -21.20% | | Total comprehensive income attributable to non-controlling interests | 7,588 | 2,649 | 186.45% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of September 30, 2023, the company's total assets and total liabilities both decreased, with a significant reduction in trade receivables and a notable increase in contract assets, while trade payables also significantly declined Key Data from Condensed Consolidated Statement of Financial Position | Indicator | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 3,807 | 4,779 | -20.34% | | Current assets | 620,730 | 706,766 | -12.17% | | Total assets | 624,537 | 711,545 | -12.23% | | **Liabilities** | | | | | Non-current liabilities | 234 | 1,339 | -82.52% | | Current liabilities | 154,156 | 254,966 | -39.54% | | Total liabilities | 154,390 | 256,305 | -39.76% | | **Equity** | | | | | Total equity | 470,147 | 455,240 | 3.27% | | Equity and reserves attributable to owners of the Company | 462,115 | 445,551 | 3.72% | | Non-controlling interests | 8,032 | 9,689 | -17.00% | - Trade receivables significantly decreased from **HKD 174,562 thousand** as of March 31, 2023, to **HKD 12,040 thousand** as of September 30, 2023 [6](index=6&type=chunk) - Contract assets notably increased from **HKD 176,664 thousand** as of March 31, 2023, to **HKD 332,553 thousand** as of September 30, 2023 [6](index=6&type=chunk) - Trade payables significantly decreased from **HKD 181,406 thousand** as of March 31, 2023, to **HKD 85,947 thousand** as of September 30, 2023 [7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For the six months ended September 30, 2023, total equity attributable to owners of the Company increased, mainly due to profit for the period, though exchange reserves decreased from foreign operations translation differences, while non-controlling interests decreased due to dividend payments Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Sep 30, 2022 (HKD thousands) | | :--- | :--- | :--- | :--- | | Share Capital | 10,000 | 10,000 | 10,000 | | Share Premium | 120,421 | 120,421 | 120,421 | | Statutory Reserve | 7,539 | 7,539 | 3,699 | | Exchange Reserve | (5,810) | (1,563) | (3,707) | | Retained Earnings | 329,965 | 309,154 | 286,639 | | Total attributable to owners of the Company | 462,115 | 445,551 | 417,052 | | Non-controlling interests | 8,032 | 9,689 | 10,162 | | Total Equity | 470,147 | 455,240 | 427,214 | - Profit attributable to owners of the Company for the period was **HKD 20,811 thousand**, and profit attributable to non-controlling interests was **HKD 8,033 thousand** [8](index=8&type=chunk) - Exchange differences on translation of foreign operations resulted in a **HKD 4,247 thousand** decrease in exchange reserve within other comprehensive income for the period [8](index=8&type=chunk) - Dividends paid to non-controlling interests amounted to **HKD 9,245 thousand** [8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=%E7%AE%80%E6%98%8E%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended September 30, 2023, net cash used in operating activities significantly increased, net cash from investing activities turned into an inflow, and net cash from financing activities substantially decreased, resulting in a reduction in cash and cash equivalents at period-end Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (91,899) | (31,827) | 188.76% | | Net cash from/(used in) investing activities | 2,581 | (16,131) | 1160.69% | | Net cash from financing activities | 1,153 | 19,424 | -94.06% | | Decrease in cash and cash equivalents | (88,165) | (28,534) | 209.05% | | Cash and cash equivalents at beginning of period | 318,830 | 217,901 | 46.32% | | Cash and cash equivalents at end of period | 230,524 | 189,214 | 21.83% | - Net cash used in operating activities increased from **HKD 31,827 thousand** in 2022 to **HKD 91,899 thousand** in 2023, primarily due to increased cash used in operations [9](index=9&type=chunk) - Net cash from investing activities changed from an outflow of **HKD 16,131 thousand** in 2022 to an inflow of **HKD 2,581 thousand** in 2023, mainly due to no payments for property and equipment in 2023 [9](index=9&type=chunk) - Net cash from financing activities significantly decreased from **HKD 19,424 thousand** in 2022 to **HKD 1,153 thousand** in 2023, primarily due to reduced net proceeds from bank borrowings [9](index=9&type=chunk) [Notes to the Financial Statements](index=8&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section provides detailed notes to the financial statements, covering general information, accounting policies, segment information, and specific financial line items [General Information, Reorganization and Basis of Presentation](index=8&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99%E3%80%81%E9%87%8D%E7%BB%84%E5%8F%8A%E5%91%88%E5%88%97%E5%9F%BA%E5%87%86) This section outlines the company's basic information, historical reorganization, and the basis for preparing and presenting the interim financial statements, highlighting its construction business in Hong Kong and e-commerce business in China - The company was incorporated in the Cayman Islands as an exempted company on **April 16, 2018** [10](index=10&type=chunk) - The Group's principal businesses include construction in Hong Kong (formwork and other construction services) and e-commerce in China [10](index=10&type=chunk) - The condensed consolidated interim financial statements are presented in **HKD**, unaudited, and prepared in accordance with HKAS 34 and the Listing Rules of the Stock Exchange [12](index=12&type=chunk) [General Information](index=8&type=section&id=1.1%20%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) CHI KAN HOLDINGS LIMITED was incorporated in the Cayman Islands in 2018 as an investment holding company, primarily engaged in construction in Hong Kong and e-commerce in China, and listed on the Hong Kong Stock Exchange Main Board in 2020 - The Company was incorporated on **April 16, 2018**, under the laws of the Cayman Islands [10](index=10&type=chunk) - The Group primarily engages in **construction business in Hong Kong** (including formwork and other construction services) and **e-commerce business in China** [10](index=10&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **August 14, 2020** [10](index=10&type=chunk) [Reorganization](index=8&type=section&id=1.2%20%E9%87%8D%E7%BB%84) Prior to the company's incorporation and reorganization, the listed business was conducted by the formwork services division of Chi Kan Timber Company Limited and Chi Kan Engineering Company Limited, with Mr. Lo Hon Kwong as the controlling shareholder - The listed business was conducted by the formwork services division of Chi Kan Timber Company Limited and Chi Kan Engineering Company Limited prior to the reorganization [11](index=11&type=chunk) - Mr. Lo Hon Kwong was the controlling party of the operating companies and Chi Kan Engineering Company Limited [11](index=11&type=chunk) [Basis of Presentation](index=8&type=section&id=2.%20%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, are unaudited by external auditors, but have been reviewed by the company's audit committee - The unaudited condensed consolidated interim financial statements are prepared in accordance with **HKAS 34 "Interim Financial Reporting"** issued by the HKICPA and applicable disclosure requirements of the Listing Rules [12](index=12&type=chunk) - These statements do not include all information required for full financial statements and should be read in conjunction with the **2023 annual financial statements** [12](index=12&type=chunk) - The condensed consolidated interim financial statements have not been audited or reviewed by the Company's external auditor but have been reviewed by the **Audit Committee** [12](index=12&type=chunk) [Summary of Significant Accounting Policies](index=9&type=section&id=3.%20%E9%87%8D%E5%A4%A7%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E6%A6%82%E8%A6%81) The Group's accounting policies are consistent with the previous financial year, with new or revised HKFRSs effective April 1, 2023, adopted, but these revisions have no significant impact on the financial performance or position for the current and prior periods - The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for estimates of income tax and the adoption of new and revised standards [13](index=13&type=chunk) - The Group has adopted new and revised HKFRSs effective **April 1, 2023**, including HKFRS 17, HKAS 8 (Amendments), and HKAS 12 (Amendments) [14](index=14&type=chunk)[15](index=15&type=chunk) - The application of the new amendments has **no significant impact** on the Group's financial performance and position for the current and prior periods and/or the disclosures in these condensed consolidated interim financial statements [15](index=15&type=chunk) [Segment Information](index=10&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's chief operating decision maker assesses performance based on profit after tax, dividing operations into construction and e-commerce segments, with construction revenue decreasing and e-commerce revenue increasing - The Group's chief operating decision maker has segmented the business into two operating segments: **construction business in Hong Kong** (including formwork and other construction services) and **e-commerce business in China** [16](index=16&type=chunk) [Revenue by Type of Goods and Services](index=10&type=section&id=4.1%20%E6%94%B6%E7%9B%8A%E6%8C%89%E5%95%86%E5%8F%8A%E6%9C%8D%E5%8A%A1%E7%A7%8D%E7%B1%BB) For the six months ended September 30, 2023, construction business revenue decreased year-on-year, with a significant decline in formwork services, while e-commerce business revenue increased year-on-year Revenue by Type of Goods and Services | Type of Goods and Services | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Contract revenue from construction business | 583,265 | 642,409 | -9.19% | | - Formwork services | 500,795 | 592,692 | -15.49% | | - Other construction services | 82,470 | 49,717 | 65.88% | | E-commerce business revenue | 165,892 | 133,597 | 24.17% | | Total Revenue | 749,157 | 776,006 | -3.46% | [Segment Results, Assets and Liabilities](index=11&type=section&id=4.2%20%E5%88%86%E9%83%A8%E4%B8%9A%E7%BB%A9%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA) For the six months ended September 30, 2023, pre-tax segment profit for the construction business significantly decreased, while that for the e-commerce business substantially increased, with construction assets and liabilities both decreasing, and e-commerce assets slightly increasing while liabilities decreased Segment Results | Segment | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Construction business revenue | 583,265 | 642,409 | -9.19% | | Construction business pre-tax segment profit/(loss) | 15,476 | 30,105 | -48.60% | | E-commerce business revenue | 165,892 | 133,597 | 24.17% | | E-commerce business pre-tax segment profit/(loss) | 22,157 | 8,999 | 146.22% | | Unallocated pre-tax profit/(loss) | (862) | (1,871) | -53.93% | | Total pre-tax profit | 36,771 | 37,233 | -1.24% | Segment Assets and Liabilities | Segment | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Construction business assets | 526,874 | 601,724 | -12.44% | | E-commerce business assets | 35,075 | 33,066 | 6.08% | | Construction business liabilities | 135,199 | 221,538 | -38.98% | | E-commerce business liabilities | 18,615 | 32,204 | -42.19% | [Geographical Information](index=12&type=section&id=4.3%20%E5%9C%B0%E5%8C%BA%E8%B5%84%E6%96%99) The Group's external customer revenue primarily originates from Hong Kong and Mainland China, with revenue from Hong Kong decreasing and revenue from Mainland China significantly increasing External Customer Revenue by Geographical Region | Region | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 583,265 | 642,409 | -9.19% | | China | 165,892 | 133,597 | 24.17% | | Total | 749,157 | 776,006 | -3.46% | [Revenue and Other Income](index=13&type=section&id=5.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Total revenue for the period slightly decreased, mainly due to reduced formwork services revenue within the construction business, despite growth in e-commerce revenue, while other income significantly declined primarily due to the absence of government subsidies Details of Revenue and Other Income | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Contract revenue from construction business | 583,265 | 642,409 | -9.19% | | - Formwork services | 500,795 | 592,692 | -15.49% | | - Other construction services | 82,470 | 49,717 | 65.88% | | E-commerce business revenue | 165,892 | 133,597 | 24.17% | | Total Revenue | 749,157 | 776,006 | -3.46% | | Total other income | 436 | 7,614 | -94.28% | | - Government grants | – | 7,600 | -100.00% | | - Miscellaneous income | 436 | 14 | 3014.29% | - Government grants in 2023 were **zero**, compared to **HKD 7,600 thousand** in 2022, leading to a significant decrease in other income [23](index=23&type=chunk)[24](index=24&type=chunk) - Miscellaneous income primarily consists of service fees from **China consulting business** [24](index=24&type=chunk) [Net Finance Income/(Costs)](index=13&type=section&id=6.%20%E8%9E%8D%E8%B5%84%E6%94%B6%E5%85%A5%E2%95%97%EF%BC%88%E6%88%90%E6%9C%AC%EF%BC%89%E5%87%80%E9%A2%9D) Net finance income significantly increased during the period, primarily driven by a substantial rise in bank interest income, while bank borrowing interest expenses also increased Details of Net Finance Income/(Costs) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance income | | | | | - Bank interest income | 2,581 | 714 | 261.48% | | Finance costs | | | | | - Interest expense on lease liabilities | – | (379) | -100.00% | | - Interest expense on bank borrowings | (1,001) | (37) | 2605.41% | | Net finance income/(costs) | 1,580 | 298 | 430.20% | [Profit Before Income Tax](index=14&type=section&id=7.%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before income tax slightly decreased, mainly influenced by reduced staff costs (included in selling and administrative expenses) and lower cost of revenue, with depreciation expenses significantly decreasing Components of Profit Before Income Tax | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total staff costs | 125,326 | 112,387 | 11.51% | | Less: Amounts included in cost of revenue | (120,293) | (105,496) | 14.03% | | Staff costs (not included in cost of revenue) | 5,033 | 6,891 | -27.00% | | Cost of revenue | 617,699 | 654,881 | -5.68% | | Depreciation - owned assets | 118 | 2,693 | -95.62% | | Depreciation - right-of-use assets | 539 | 459 | 17.43% | [Income Tax Expense](index=14&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) Income tax expense increased during the period, primarily due to a significant rise in China corporate income tax, while Hong Kong profits tax decreased, and entities in BVI or Cayman Islands are tax-exempt Details of Income Tax Expense | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current income tax | | | | | - Hong Kong profits tax | 2,157 | 4,471 | -51.76% | | - China corporate income tax | 5,770 | 2,366 | 143.87% | | Total income tax expense | 7,927 | 6,837 | 16.09% | - Hong Kong profits tax is subject to a two-tiered tax rate, with the first **HKD 2,000,000** of assessable profits taxed at **8.25%** and the remainder at **16.5%** [27](index=27&type=chunk) - China corporate income tax provision is calculated at **25%** [28](index=28&type=chunk) [Earnings Per Share](index=15&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended September 30, 2023, basic earnings per share attributable to owners of the Company was **2.08 HK cents**, a decrease from the prior period, with diluted earnings per share being the same as basic earnings per share due to no outstanding potential ordinary shares Earnings Per Share Data | Indicator | 2023 (HKD thousands/HK cents) | 2022 (HKD thousands/HK cents) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company | 20,811 | 27,146 | -23.20% | | Weighted average number of ordinary shares in issue (thousands) | 1,000,000 | 1,000,000 | 0.00% | | Earnings per share (HK cents per share) | 2.08 | 2.71 | -23.10% | - The Company has no outstanding potential ordinary shares, thus diluted earnings per share are **equal to basic earnings per share** [29](index=29&type=chunk) [Property and Equipment](index=15&type=section&id=10.%20%E7%89%A9%E4%B8%9A%E5%8F%8A%E8%AE%BE%E5%A4%87) During the period, the Group neither purchased nor disposed of any property and equipment, while lease liabilities and related right-of-use assets both decreased - The Group did not acquire any property and equipment during the six months ended September 30, 2023 (2022: approximately **HKD 16,800,000**) [30](index=30&type=chunk) - The Group did not dispose of any property and equipment during the six months ended September 30, 2023 and 2022 [30](index=30&type=chunk) - As of September 30, 2023, lease liabilities of approximately **HKD 1,600,000** (March 31, 2023: approximately HKD 2,400,000) were recognized, along with related right-of-use assets of approximately **HKD 1,900,000** (March 31, 2023: approximately HKD 2,500,000) [30](index=30&type=chunk) [Inventories](index=15&type=section&id=11.%20%E5%AD%98%E8%B4%A7) As of September 30, 2023, inventories of finished goods decreased Details of Inventories | Item | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finished goods | 5,707 | 8,242 | -30.76% | [Trade Receivables and Contract Assets](index=16&type=section&id=12.%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%90%88%E7%B4%84%E8%B3%87%E7%94%A2) Trade receivables significantly decreased during the period, while contract assets notably increased, primarily driven by growth in uncertified work in progress and retention receivables [Trade Receivables](index=16&type=section&id=12(A).%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of September 30, 2023, trade receivables significantly declined, with the 31 to 90-day aging category accounting for the largest proportion Aging Analysis of Trade Receivables | Aging | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total trade receivables | 12,040 | 174,562 | -93.10% | | Up to 30 days | 2,246 | 74,838 | -96.99% | | 31 to 90 days | 9,794 | 99,724 | -90.17% | - The Group grants credit periods ranging from **14 to 60 days** to third-party customers [32](index=32&type=chunk) [Contract Assets](index=16&type=section&id=12(B).%20%E5%90%88%E7%BA%A6%E8%B5%84%E4%BA%A7) As of September 30, 2023, contract assets significantly increased, primarily due to a substantial rise in uncertified work in progress Details of Contract Assets | Item | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Contract assets related to: | | | | | - Uncertified work in progress | 172,598 | 30,549 | 464.99% | | - Retention receivables | 161,549 | 147,709 | 9.37% | | Total contract assets (less impairment losses) | 332,553 | 176,664 | 88.24% | [Prepayments, Deposits and Other Receivables](index=17&type=section&id=13.%20%E9%A2%84%E4%BB%98%E6%AC%BE%E9%A1%B9%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of September 30, 2023, total prepayments, deposits, and other receivables significantly increased, primarily due to a notable rise in prepayments Details of Prepayments, Deposits and Other Receivables | Item | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments | 12,261 | 480 | 2454.38% | | Deposits and other receivables | 145 | 624 | -76.76% | | Less: Non-current portion (deposits) | – | (136) | -100.00% | | Total | 12,406 | 968 | 1181.61% | [Cash and Cash Equivalents and Restricted Cash](index=17&type=section&id=14.%20%E7%8E%B0%E9%87%91%E5%8F%8A%E7%8E%B0%E9%87%91%E7%AD%89%E4%BB%B7%E7%89%A9%E4%B8%8E%E5%8F%97%E9%99%90%E5%88%B6%E7%8E%B0%E9%87%91) As of September 30, 2023, cash and cash equivalents decreased, mainly due to a decline in HKD cash, while restricted cash remained unchanged as collateral for bank facilities [Cash and Cash Equivalents](index=17&type=section&id=14(A).%20%E7%8E%B0%E9%87%91%E5%8F%8A%E7%8E%B0%E9%87%91%E7%AD%89%E4%BB%B7%E7%89%A9) As of September 30, 2023, total cash and cash equivalents decreased, with a significant reduction in HKD cash and a slight decrease in RMB cash Cash and Cash Equivalents by Currency | Currency | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | HKD | 155,545 | 241,850 | -35.60% | | RMB | 74,979 | 76,980 | -2.60% | | Total | 230,524 | 318,830 | -27.69% | [Restricted Cash](index=17&type=section&id=14(B).%20%E5%8F%97%E9%99%90%E5%88%B6%E7%8E%B0%E9%87%91) As of September 30, 2023, restricted cash remained unchanged at **HKD 27,500,000**, serving as collateral for bank facilities - As of September 30, 2023, and March 31, 2023, restricted cash of approximately **HKD 27,500,000** was held in Hong Kong as collateral for bank facilities granted to the Group [38](index=38&type=chunk) [Trade Payables](index=18&type=section&id=15.%20%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of September 30, 2023, total trade payables significantly decreased, primarily due to substantial declines in payables aged up to 30 days and 31 to 90 days Aging Analysis of Trade Payables | Aging | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Up to 30 days | 82,810 | 116,006 | -28.62% | | 31 to 90 days | 1,117 | 40,388 | -97.23% | | 91 to 180 days | 607 | 24,622 | -97.54% | | Over 180 days | 1,413 | 390 | 262.31% | | Total | 85,947 | 181,406 | -52.62% | [Accrued Expenses and Other Payables](index=18&type=section&id=16.%20%E5%BA%94%E8%AE%A1%E8%B4%B9%E7%94%A8%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of September 30, 2023, total accrued expenses and other payables decreased, mainly due to a decline in contract liabilities and other accrued expenses and payables Details of Accrued Expenses and Other Payables | Item | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Accrued staff salaries and other benefits | 20,018 | 18,784 | 6.57% | | Contract liabilities | 6,527 | 11,422 | -42.86% | | Other accrued expenses and other payables | 2,499 | 8,926 | -71.99% | | Total | 29,044 | 39,132 | -25.80% | [Lease Liabilities](index=18&type=section&id=17.%20%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%80%BA) As of September 30, 2023, total lease liabilities decreased, with a significant decline in the non-current portion Details of Lease Liabilities | Item | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Current | 1,394 | 1,135 | 22.82% | | Non-current | 234 | 1,339 | -82.52% | | Total | 1,628 | 2,474 | -34.19% | - The Group leases various properties for office use, and lease liabilities are measured at the present value of unpaid lease payments over the lease term [40](index=40&type=chunk) [Dividends, Share Capital and Share Premium](index=19&type=section&id=18.%20%E8%82%A1%E6%81%AF%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%8A%E8%82%A1%E4%BB%BD%E6%BA%A2%E4%BB%B7) The directors do not recommend a dividend for the period, and the company's authorized and issued and fully paid ordinary share capital and share premium remained unchanged [Dividends](index=19&type=section&id=18(a)%20%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of a dividend for the six months ended September 30, 2023 - The directors do not recommend the payment of a dividend for the six months ended September 30, 2023 (2022: nil) [41](index=41&type=chunk) [Share Capital](index=19&type=section&id=18(b)%20%E8%82%A1%E6%9C%AC) As of September 30, 2023, the company's authorized ordinary share capital and issued and fully paid ordinary share capital, including share premium, remained consistent with March 31, 2023 Share Capital and Share Premium | Item | Sep 30, 2023 (HKD thousands) | Mar 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Authorized ordinary share capital | 100,000 | 100,000 | | Issued and fully paid ordinary share capital | 10,000 | 10,000 | | Share premium on issued and fully paid ordinary shares | 120,421 | 120,421 | - Authorized ordinary shares have a par value of **HKD 0.01** and a number of **10,000,000** [42](index=42&type=chunk) - Issued and fully paid ordinary shares have a par value of **HKD 0.01** and a number of **10,000,000** [42](index=42&type=chunk) [Contingent Liabilities and Claims](index=19&type=section&id=19.%20%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA%E5%8F%8A%E7%94%B3%E7%B4%A2) As of September 30, 2023, the Group had no significant contingent liabilities, and the directors believe existing insurance coverage is sufficient for potential litigation claims - As of September 30, 2023, the Group had **no significant contingent liabilities** [43](index=43&type=chunk) - The directors believe that the insurance coverage will cover any potential compensation arising from ongoing litigation, and such litigation will **not have a material adverse effect** on the Group's consolidated financial statements [43](index=43&type=chunk) [Significant Related Party Transactions](index=20&type=section&id=20.%20%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) Total key management personnel compensation decreased during the period, with reductions in salaries, allowances, and benefits in kind, as well as a slight decrease in retirement benefit expenses Key Management Personnel Compensation | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 2,418 | 2,677 | -9.67% | | Retirement benefit expenses - defined contribution plans | 27 | 39 | -30.80% | | Total | 2,445 | 2,716 | -9.90% | [Review of Interim Financial Report](index=20&type=section&id=21.%20%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) The unaudited interim financial report for the six months ended September 30, 2023, has been reviewed by the Audit Committee without objection - The unaudited interim financial report for the six months ended September 30, 2023, has been reviewed by the **Audit Committee** without objection [45](index=45&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section provides management's discussion and analysis of the Group's business operations, financial performance, and future outlook [Business Review](index=21&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B1) The Group primarily operates construction business in Hong Kong (including formwork and other construction services) and e-commerce business in China, with the construction segment securing new contracts worth approximately HKD 643 million and the e-commerce segment retailing diverse products through private domain platforms - The Group's principal activities are **construction business** (providing formwork and other construction services) and **e-commerce business** [46](index=46&type=chunk) [Construction Business](index=21&type=section&id=%E5%BB%BA%E9%80%A0%E4%B8%9A%E5%8A%A1) The Group, as a formwork contractor in Hong Kong, provides traditional and pre-fabricated formwork services, along with other construction services, securing 7 new contracts totaling approximately HKD 643 million and holding 25 outstanding contracts valued at approximately HKD 1.14 billion during the period - The Group is a **Hong Kong-based formwork contractor**, providing traditional and pre-fabricated formwork services [46](index=46&type=chunk) - During the period, **7 new projects** with a total contract value of approximately **HKD 642,800,000** were secured, with 6 completed [46](index=46&type=chunk) - As of September 30, 2023, there were **25 outstanding contracts** with a total value of approximately **HKD 1,140,200,000** [46](index=46&type=chunk) [E-commerce Business](index=21&type=section&id=%E7%94%B5%E5%AD%90%E5%95%86%E5%8A%A1%E4%B8%9A%E5%8A%A1) Since March 2021, the Group has engaged in e-commerce through Baiyin Zhiqin (51% owned), strategically positioned as a brand retailer on private domain e-commerce platforms, offering diverse high-quality products including selenium-rich agricultural products, health foods, and beauty products - The Group has been engaged in e-commerce business through **Baiyin Zhiqin (51% owned)** since **March 2021** [47](index=47&type=chunk) - The Group is strategically positioned as a **brand retailer in private domain e-commerce**, collaborating with three private domain e-commerce platforms [48](index=48&type=chunk) - It offers a variety of products, including **selenium-rich agricultural products, health foods, daily necessities, and beauty and skincare products**, prioritizing high quality [48](index=48&type=chunk) [Financial Review](index=22&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B1) Total revenue for the period decreased by 3.46% to HKD 749.2 million, mainly due to reduced construction revenue, despite e-commerce growth; gross profit increased by 8.53% to HKD 131.5 million, with gross margin rising to 17.6%; selling and administrative expenses increased by HKD 5.1 million to HKD 96.7 million due to higher e-commerce sales commissions; profit attributable to owners decreased by 23.2% to HKD 20.8 million, but adjusted profit (excluding government grants) slightly increased by 6.7% Key Financial Review Data | Indicator | 2023 (HKD millions) | 2022 (HKD millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 749.2 | 776.0 | -3.46% | | Construction Business Revenue | 583.3 | 642.4 | -9.19% | | E-commerce Business Revenue | 165.9 | 133.6 | 24.17% | | Gross Profit | 131.5 | 121.1 | 8.59% | | Gross Profit Margin | 17.6% | 15.6% | 2.0 percentage points | | Selling and Administrative Expenses | 96.7 | 91.6 | 5.57% | | Profit for the period attributable to owners of the Company | 20.8 | 27.1 | -23.25% | | Adjusted profit excluding government grants | 20.8 | 19.5 | 6.67% | - The increase in selling and administrative expenses was primarily due to higher **sales commission expenses** for the e-commerce business [49](index=49&type=chunk) [Prospects](index=23&type=section&id=%E5%89%8D%E6%99%AF) The Group anticipates its e-commerce business to resume an upward trend post-COVID-19, driven by China's growing online retail market, and despite challenges in Hong Kong's construction sector, the directors remain confident in future development given government commitments to land supply and infrastructure investment, aiming to maintain competitive advantages and achieve revenue and net profit growth for shareholder value - The e-commerce business is expected to **resume an upward trend** in the coming year as the COVID-19 pandemic ends [51](index=51&type=chunk) - China's online retail market is projected to continue growing, driving demand for online consumption [51](index=51&type=chunk) - Despite challenges and intense competition in the Hong Kong construction business, the directors are confident in its future development, benefiting from the HKSAR Government's commitment to **increase land supply and infrastructure investment** [51](index=51&type=chunk) - The Group is committed to maintaining its comprehensive advantages in a complex business environment, achieving **revenue growth and net profit growth**, and continuously creating value for shareholders [51](index=51&type=chunk) [Employees](index=23&type=section&id=%E9%9B%87%E5%91%98) As of September 30, 2023, the Group had **1,068 employees**, offering competitive remuneration packages including salaries, performance-based bonuses, and training benefits - As of September 30, 2023, the Group had **1,068 employees** [52](index=52&type=chunk) - The Group provides competitive remuneration packages based on market rates, employee performance, and Group performance, including **salaries, performance-based bonuses, and other benefits such as training** [52](index=52&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=24&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E3%80%81%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90%E5%8F%8A%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) The Group's current ratio increased from 2.8 to 4.0 times, mainly due to a significant reduction in trade payables, while the gearing ratio slightly rose to 6.7% due to increased bank borrowings, with cash and cash equivalents at period-end totaling HKD 230.5 million, and a capital structure comprising HKD 470.1 million in equity and HKD 31.6 million in debt, with HKD 70 million of its HKD 100 million bank facilities remaining unutilized Liquidity and Financial Ratios | Indicator | Sep 30, 2023 | Mar 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 4.0 times | 2.8 times | 1.2 times | | Gearing Ratio | 6.7% | 6.5% | 0.2 percentage points | - The increase in the current ratio was primarily due to a **significant decrease in trade payables** [54](index=54&type=chunk) - The increase in the gearing ratio was due to **increased bank borrowings** during the period [54](index=54&type=chunk) - As of September 30, 2023, the Group's cash and cash equivalents amounted to approximately **HKD 230,500,000** [54](index=54&type=chunk) - The Group's capital structure comprises equity of approximately **HKD 470,100,000** and debt (lease liabilities and bank borrowings) of approximately **HKD 31,600,000** [54](index=54&type=chunk) - The Group has access to **HKD 100,000,000** in bank facilities, of which approximately **HKD 70,000,000** remains unutilized and unrestricted [55](index=55&type=chunk) [Market Risk](index=25&type=section&id=%E5%B8%82%E5%9C%BA%E9%A3%8E%E9%99%A9) The Group's management mitigates market risks, such as changes in government policies, interest rate fluctuations, or inflation, by managing and monitoring them to ensure timely and effective measures are taken to reduce potential impacts on profitability and business objectives - Market risk refers to risks affecting the Group's profitability or ability to achieve business objectives [56](index=56&type=chunk) - The Group's management manages and monitors risks such as **changes in government policies, interest rate fluctuations, or inflation** [56](index=56&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) Operating primarily in Hong Kong and China, the Group is exposed to foreign exchange risks related to HKD and RMB, currently not using derivative financial instruments for hedging, but managing risk by closely monitoring the proportion of non-HKD assets and liabilities - Operating primarily in Hong Kong and China, the Group is exposed to foreign exchange risks arising from relevant currencies, mainly **HKD and RMB** [57](index=57&type=chunk) - Currently, the Group does not use any derivative financial instruments to hedge its foreign exchange risk [57](index=57&type=chunk) - The Group closely monitors the proportion of non-HKD assets and liabilities to manage related foreign exchange risk [57](index=57&type=chunk) [Material Investments Held, Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies](index=25&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E3%80%81%E9%99%84%E5%B1%9E%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%94%E5%B1%9E%E5%85%AC%E5%8F%B8%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended September 30, 2023, the Company did not hold any material investments or undertake any material acquisitions or disposals of subsidiaries and affiliated companies - For the six months ended September 30, 2023, the Company did not hold any **material investments** or undertake any **material acquisitions or disposals of subsidiaries and affiliated companies** [58](index=58&type=chunk) [Capital Commitments](index=25&type=section&id=%E8%B5%84%E6%9C%AC%E6%89%BF%E6%8B%85) As of September 30, 2023, the Group had no capital commitments - As of September 30, 2023, the Group had **no capital commitments** [58](index=58&type=chunk) [Contingent Liabilities](index=26&type=section&id=%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) Except as disclosed in Note 19 to the financial statements, the Group had no other contingent liabilities as of September 30, 2023 - Except as disclosed in Note 19 to the financial statements, the Group had **no other contingent liabilities** as of September 30, 2023 [59](index=59&type=chunk) [Pledge of Group Assets](index=26&type=section&id=%E9%9B%86%E5%9B%A2%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of September 30, 2023, the Group's bank facilities were secured by bank deposits of **HKD 27,500,000**, consistent with March 31, 2023 - As of September 30, 2023, the Group's bank facilities were secured by bank deposits of **HKD 27,500,000** (March 31, 2023: HKD 27,500,000) [59](index=59&type=chunk) [Dividends](index=26&type=section&id=%E8%82%A1%E6%81%AF) The directors do not recommend the payment of an interim dividend for the six months ended September 30, 2023 - The directors do not recommend the payment of an interim dividend for the six months ended September 30, 2023 (2022: nil) [60](index=60&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended September 30, 2023 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the **six months ended September 30, 2023** [60](index=60&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section details the company's corporate governance practices, compliance with trading standards, post-reporting period events, and other relevant information [Corporate Governance Practices](index=26&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A7%84) The Company has adopted the Corporate Governance Code in Appendix 14 of the Listing Rules and complied with all applicable provisions from its listing date to September 30, 2023, except for the non-segregation of Chairman and Chief Executive roles, which are jointly performed by all executive directors - The Company has adopted the **Corporate Governance Code** as set out in Appendix 14 of the Listing Rules [61](index=61&type=chunk) - From its listing date to September 30, 2023, the Company has complied with all applicable provisions of the Corporate Governance Code, except for the **non-segregation of the roles of Chairman and Chief Executive** [61](index=61&type=chunk) - The roles and functions of the Chief Executive are jointly performed by all executive directors, and the Board believes the current arrangement is sufficient to ensure effective business management [61](index=61&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix 10 of the Listing Rules, and all directors confirmed compliance with the required standards during the period - The Company has adopted the **Standard Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix 10 of the Listing Rules [62](index=62&type=chunk) - Following specific enquiries with all directors, each director confirmed compliance with the required standards set out in the Standard Code during the period [62](index=62&type=chunk) [Events After Reporting Period](index=27&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) No other significant events occurred after September 30, 2023, up to the date of this interim results announcement for the Company or the Group - No other significant events occurred after **September 30, 2023**, up to the date of this interim results announcement for the Company or the Group [63](index=63&type=chunk) [Related Party Transactions](index=27&type=section&id=%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) Significant related party transactions entered into by the Group for the six months ended September 30, 2023, are detailed in Note 20 of this interim results announcement - Significant related party transactions entered into by the Group for the six months ended September 30, 2023, are detailed in **Note 20** of this interim results announcement [63](index=63&type=chunk) [Sufficient Public Float](index=27&type=section&id=%E8%B6%B3%E5%A4%9F%E5%85%AC%E4%BC%97%E6%8C%81%E8%82%A1%E9%87%8F) Based on publicly available information and the directors' knowledge, the Company has maintained the required public float under the Listing Rules from its listing date to the date of this interim results announcement - The Company has maintained the **required public float** under the Listing Rules from its listing date to the date of this interim results announcement [64](index=64&type=chunk) [Audit Committee](index=27&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Company's Audit Committee, composed of three independent non-executive directors, is primarily responsible for reviewing and overseeing financial reporting, risk management, internal control systems, the audit process, and the selection and evaluation of external auditors - The Company's Audit Committee comprises three independent non-executive directors: **Ms. Chan Sze Man (Chairperson), Dr. Leung Ka Tung, Surveyor, and Mr. Jiang Jun Gan** [64](index=64&type=chunk) - The Audit Committee's primary responsibilities include reviewing and overseeing the Group's financial reporting process, risk management, and internal control systems, supervising the audit process, and selecting external auditors and assessing their independence and qualifications [64](index=64&type=chunk) [Audit Committee Review](index=27&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A%E5%AE%A1%E9%98%85) The accounting information provided in this interim results announcement has not been audited by the Company's external auditor but has been reviewed by the Audit Committee - The accounting information provided in this interim results announcement has not been audited by the Company's external auditor but has been reviewed by the **Audit Committee** [65](index=65&type=chunk) [Publication of Interim Results and Interim Report](index=28&type=section&id=%E5%88%8A%E5%8F%91%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) The results announcement has been published on the Company's and the Stock Exchange's websites, and the 2023 interim report will be dispatched to shareholders and simultaneously published on both websites in due course - The results announcement has been published on the Company's website **www.chikanck.com** and the Stock Exchange's website **www.hkexnews.hk** [66](index=66&type=chunk) - The **2023 interim report** will be dispatched to shareholders and simultaneously published on the Stock Exchange's and the Company's websites in due course [66](index=66&type=chunk) [Acknowledgements](index=28&type=section&id=%E9%B8%A3%E8%B0%A2) The Board of Directors expresses gratitude to the Group's management and all employees for their dedication, and to shareholders, business partners, and other professionals for their continuous support - The Board of Directors extends its sincere gratitude to the Group's management and all employees for their diligence and teamwork, and to all shareholders, business partners, and other professionals for their continuous support during the period [67](index=67&type=chunk) - The Board of Directors comprises two executive directors (**Mr. Lo Hon Kwong, Ms. Chan Mei Kiu**), one non-executive director (**Mr. Chan Chung Chau**), and three independent non-executive directors (**Dr. Leung Ka Tung, Surveyor, Ms. Chan Sze Man, Mr. Jiang Jun Gan**) [67](index=67&type=chunk)

Financial Performance - For FY2023, Chi Kan Holdings Limited secured 8 new contracts with a total contract sum of approximately HK$611.3 million[10]. - As of March 31, 2023, the company had 24 contracts on hand, down from 32 contracts as of March 31, 2022, with an unrecognized contract amount of approximately HK$812.3 million[10]. - The Group's audited consolidated revenue for FY2023 was approximately HK$1,623.6 million, an increase from approximately HK$1,574.3 million in FY2022[20]. - The construction business contributed approximately HK$1,373.7 million to the revenue, up from approximately HK$1,133.2 million in FY2022, with 24 projects on hand as of March 31, 2023[20]. - The E-Commerce business generated revenue of approximately HK$249.8 million during FY2023[20]. - Gross profit for FY2023 was approximately HK$221.2 million, down from approximately HK$322.4 million in FY2022, resulting in a gross profit margin of approximately 13.6%[20]. - The gross profit margin decreased by approximately 6.9% from 20.5% in FY2022 to 13.6% in FY2023, primarily due to a decline in E-Commerce gross profit[20]. - Other incomes increased by HK$20.2 million from approximately HK$1.9 million in FY2022 to approximately HK$22.1 million in FY2023, mainly due to an increase in government grants of approximately HK$21.7 million[23]. - Selling and administrative expenses decreased by HK$77.8 million to approximately HK$167.7 million, compared to approximately HK$245.5 million last year, primarily due to a reduction in operating expenses for the E-Commerce business[23]. - Profit attributable to the owners of the Company increased to approximately HK$53.5 million, representing a 37.9% increase over approximately HK$38.8 million in the previous year[23]. - Adjusted profit attributable to owners, excluding government subsidies, amounted to approximately HK$31.8 million, a decrease of approximately 18.0% compared to approximately HK$38.8 million last year[23]. Market and Business Strategy - The Group has been engaged in E-Commerce since March 2021, strategically positioning itself as a brand retailer on various platforms, offering 500 types of products[10]. - The Group's online retail business is expected to achieve sustainable and rapid development through the provision of quality and diverse products[10]. - The company continues to explore opportunities for market expansion and new strategies in response to evolving market conditions[10]. - The Group's strategy includes cooperation with three private E-Commerce platforms to provide brand commodities tailored to customer needs[18]. - The Group aims for sustainable development by strictly selecting products and manufacturers to ensure high quality[19]. - The Group expects growth in its E-Commerce business following the end of the COVID-19 pandemic, which had significantly impacted operations[55]. - The Group anticipates sustainable growth in the online retail market due to changing consumption habits driven by mobile internet usage in the PRC[55]. - The construction business in Hong Kong faces a challenging environment, but the Group remains confident in its future development due to its established reputation and healthy financial position[55]. Operational Challenges - The outbreak of COVID-19 may significantly and adversely impact the Group's business operations and financial performance due to potential delays in new construction projects and labor shortages[25]. - Cash flow mismatch may materially and adversely affect the Group's liquidity and financial position due to various upfront costs incurred before receiving payments from customers[27]. - The COVID-19 outbreak in Hong Kong may significantly adversely affect the company's business operations and financial performance due to economic uncertainty and decreased purchasing power[28]. - The company faces potential delays in project approvals and construction timelines, impacting its ability to fulfill contractual obligations and collect payments from clients[28]. - Cash inflows primarily consist of progress payments from customers, who retain a maximum of 5% of the total contract sum as retention money, which may delay cash flow[30]. - The company may incur substantial upfront costs for projects, leading to significant cash outflows and potential liquidity issues due to timing mismatches between receiving payments and making supplier payments[31]. - Discrepancies between estimated and actual costs can adversely affect the company's business and financial performance, particularly if unexpected circumstances arise[33]. - Labour costs are a major expense for construction projects, and significant increases in these costs may not be transferable to customers, negatively impacting financial performance[35]. Corporate Governance and Management - The company maintains long-term relationships with customers and partners, which is crucial for its business model and overall success[36]. - The Group's current ratio decreased from 3.3 times as of March 31, 2022, to 2.8 times as of March 31, 2023, primarily due to an increase in trade payables[45]. - The gearing ratio increased from 4.2% as of March 31, 2022, to 6.5% as of March 31, 2023, mainly due to an increase in bank borrowings[48]. - The Group's capital structure consisted of approximately HK$455.2 million in equity and approximately HK$29.5 million in debts (lease liabilities and bank borrowings) as of March 31, 2023[48]. - The Group's liquidity position is closely monitored by the Directors and senior management to meet funding needs[42]. - The Group has maintained long-term relationships with clients and partners, some exceeding 10 years, which is crucial for its business model[39]. - The Group's management team is experienced and stable, contributing to high customer satisfaction[39]. - The company is focused on expanding its market presence and enhancing operational efficiency through strategic planning and management oversight[59]. - The management team emphasizes the importance of corporate governance and compliance, ensuring transparency and accountability in operations[64]. - The company is exploring new strategies for market expansion and product development to drive future growth[60]. - The leadership's extensive experience in their respective fields positions the company well for navigating market challenges and opportunities[63]. - The company aims to leverage its management expertise to enhance shareholder value and operational performance[62]. - The board's composition reflects a commitment to diverse perspectives and expertise, which is crucial for informed decision-making[61]. Environmental, Social, and Governance (ESG) - The Group is committed to environmental protection and sustainable development through green practices in its business activities[41]. - The ESG report covers the construction and E-commerce business for the fiscal year ended 31 March 2023[184]. - The Group's environmental performance data is primarily focused on office management in Hong Kong and the PRC due to operational models at construction sites[185]. - The Group is committed to quantifying and disclosing key performance indicators within environmental and social categories[188]. - The Group emphasizes the importance of sustainability as a critical element for maintaining its leading position in the industry[191]. - The Board is fully responsible for formulating and reporting on ESG strategies, overseeing and managing ESG-related risks[192]. - The Group has established an effective risk management and internal control system to support sustainable development[192]. - The ESG management team is tasked with identifying, evaluating, prioritizing, managing, and mitigating material ESG-related issues[192]. - The Group engages with stakeholders, including shareholders and regulatory bodies, to communicate business performance and gather feedback[195]. - The Group emphasizes the importance of career development, competitive salary, and occupational health for employees[200]. - Customer expectations include service delivery quality and protection of customer information[200]. - The Group aims to build a responsible supply chain and maintain integrity in cooperation with suppliers[200]. - Community involvement and social responsibilities are key expectations from the community[200]. Shareholder and Board Matters - The Board does not recommend the payment of a final dividend for the year ended 31 March 2023[80]. - The Listing was completed on 14 August 2020, marking a significant milestone for the Group[79]. - The financial results for the year ended 31 March 2023 are detailed in the consolidated statement of comprehensive income[79]. - The Company has not granted, exercised, or cancelled any share options under the share option scheme since its adoption on July 17, 2020[83]. - The Company considers all independent non-executive Directors to be independent as per the Listing Rules[84]. - The Directors' remuneration details are provided in note 9 of the Financial Statements[92]. - The Company has appropriate directors' and officers' liability insurance coverage in place[89]. - The Company will dispatch a circular to shareholders regarding the re-election of Directors along with the annual report[84]. - The Company has established an Audit Committee, which assists the Board in reviewing financial information, internal control, and risk management systems[148]. - The Audit Committee reviewed the Company's financial statements for the year ended March 31, 2023, including accounting principles and practices[148]. - The Company provides sufficient resources for Board committees to fulfill their duties and allows them to seek independent professional advice at the Company's expense[147]. - The Company has established specific written terms of reference for all Board committees, outlining their authority and duties[144]. - The Board is responsible for overseeing the management, business strategies, and financial performance of the group to ensure good corporate governance practices[129]. - The Board meets regularly to discuss and formulate the overall strategy and financial performance of the Group, with meetings held at least four times a year[138]. - Attendance at Board meetings for FY2023 shows all Executive and Independent Non-executive Directors attended 100% of the meetings[140]. - The Remuneration Committee held two meetings to review and recommend the remuneration policy and structure for executive Directors and senior management[154]. - The Nomination Committee held two meetings to assess the Board composition and the independence of independent non-executive Directors[158]. - The Company has established a formal risk management policy and conducts annual risk assessments to identify and mitigate potential risks[164]. - The Board is responsible for overseeing the Group's risk management and internal control systems, which are reviewed at least annually for effectiveness[165]. - The Company has a structured approach to ensure compliance with legal and regulatory requirements, as well as adherence to corporate governance codes[162].

Revenue and Profitability - Revenue for the fiscal year ended March 31, 2023, increased by approximately 3.1% to about HKD 1,623,600,000, compared to HKD 1,574,300,000 for the fiscal year ended March 31, 2022[2] - Profit attributable to owners of the company for the fiscal year 2023 was approximately HKD 53,500,000, an increase of about 37.9% compared to HKD 38,800,000 in the fiscal year 2022[2] - Adjusted profit attributable to owners, excluding non-recurring government subsidies, was approximately HKD 31,800,000, a decrease of about 18.0% from HKD 38,800,000 in the previous fiscal year[2] - Total comprehensive income for the year was HKD 57,365,000, compared to HKD 60,855,000 in the previous year[5] - The company reported a pre-tax profit of HKD 53,501, an increase from HKD 38,751 in the previous year, resulting in earnings per share of HKD 5.35 compared to HKD 3.88[30] Gross Profit and Margins - Gross profit margin decreased from approximately 20.5% in the fiscal year 2022 to about 13.6% in the fiscal year 2023, primarily due to a decline in e-commerce gross profit from approximately HKD 284,800,000 to HKD 170,800,000[2] - Gross profit for fiscal year 2023 was approximately HKD 221.2 million, with a gross margin of about 13.6%, down from 20.5% in fiscal year 2022[45] Dividends - The company did not recommend the payment of a final dividend for the fiscal year 2023[2] - The company did not declare any dividends during the year, consistent with the previous year[30] - The board does not recommend the payment of a final dividend for the year ended March 31, 2023[57] Assets and Liabilities - Non-current assets increased from HKD 4,644,000 to HKD 4,779,000, with property and equipment rising from HKD 2,227,000 to HKD 2,957,000[6] - Trade receivables increased significantly from HKD 96,952,000 to HKD 174,562,000, indicating improved collection or sales[6] - Current liabilities rose from HKD 170,682,000 to HKD 254,966,000, reflecting increased trade payables and bank borrowings[6] - The company's net asset value increased from HKD 403,552,000 to HKD 455,240,000, indicating a stronger financial position[7] - Total assets for the construction segment increased to HKD 601,724,000 from HKD 469,093,000 year-over-year, while e-commerce segment assets decreased to HKD 33,066,000 from HKD 73,197,000[17] - The total liabilities for the construction segment rose to HKD 221,538,000 from HKD 126,794,000, and the e-commerce segment liabilities decreased to HKD 32,204,000 from HKD 43,908,000[17] Segment Performance - For the fiscal year ending March 31, 2023, the reported segment revenue was HKD 1,623,573,000, with construction business revenue at HKD 1,373,748,000 and e-commerce business revenue at HKD 249,825,000[16] - The profit before tax for the construction segment was HKD 60,753,000, while the e-commerce segment reported a profit before tax of HKD 22,938,000, leading to a total profit before tax of HKD 74,432,000[16] - The construction business remains the primary revenue driver, while the e-commerce business is still in its growth phase, having launched operations in China during the previous fiscal year[14] Financial Reporting and Standards - The company applied the revised Hong Kong Financial Reporting Standards for the first time in the fiscal year ending March 31, 2023, but it did not have a significant impact on the financial statements[12] - The company is currently evaluating the potential impact of new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[13] Cash Flow and Financing - As of March 31, 2023, the group held approximately HKD 318,800,000 in cash and cash equivalents, compared to approximately HKD 217,900,000 as of March 31, 2022[49] - The net financing income decreased to HKD 442 from HKD 900 in the previous year, primarily due to increased bank borrowing costs[26] - The net proceeds from the listing amounted to approximately HKD 97,000,000, fully utilized for project funding, general working capital, and labor expansion[50][51] Employee and Operational Metrics - The group had 605 employees as of March 31, 2023, down from 1,026 employees in 2022[52] - The average credit period for trade procurement remained between 15 to 60 days, consistent with the previous year[36] Customer Concentration - The company had three customers contributing over 10% of total revenue, with Customer A generating HKD 413,632, Customer B HKD 368,556, and Customer C HKD 175,947[20] Other Income and Expenses - Other income rose significantly to approximately HKD 22.1 million in fiscal year 2023, compared to HKD 1.9 million in the previous year, mainly due to increased government subsidies[45] - The total tax expense for the year was HKD 12,567, down from HKD 19,952 in the previous year, reflecting lower taxable income[27] Strategic Outlook - The group anticipates a recovery in e-commerce business following the end of the COVID-19 pandemic[55] - The company continues to assess its strategic decisions based on the performance of its operating segments, with a focus on resource allocation and profitability evaluation[15] Miscellaneous - The company has no significant contingent liabilities as of March 31, 2023, and believes insurance coverage will cover any potential claims from ongoing litigation[41] - The group has no significant contingent liabilities or major acquisitions during the fiscal year 2023[54] - The preliminary announcement of the group's consolidated financial statements for the year ended March 31, 2023, has been verified to be consistent with the audited financial statements[61] - The annual performance announcement is available on the company's website and the Hong Kong Stock Exchange website[62] - The board expresses gratitude to the management, employees, shareholders, and business partners for their support throughout the year[63]

Financial Performance - The Group's unaudited consolidated revenue for the six months ended 30 September 2022 was approximately HK$776.0 million, an increase from approximately HK$755.4 million in the corresponding period of 2021[26]. - The construction business contributed approximately HK$642.4 million to the revenue, up from approximately HK$532.1 million in the same period of 2021, with 34 projects on hand as of 30 September 2022[26]. - The E-Commerce business generated revenue of approximately HK$133.6 million, a decrease from approximately HK$223.3 million in the corresponding period of 2021[26]. - The gross profit for the Period was approximately HK$121.1 million, compared to approximately HK$73.2 million in the same period of 2021[26]. - The gross profit margin improved to approximately 15.6%, up from approximately 9.7% in 2021, indicating a healthier financial position[26]. - Profit attributable to the owners of the Company decreased to approximately HK$27.1 million, representing a decrease of 13.7% from approximately HK$31.4 million in the previous year[28]. - Total comprehensive income for the period was HK$23,662,000, down from HK$46,177,000, marking a decrease of approximately 48.8%[86]. - Basic earnings per share for the six months ended 30 September 2022 was 2.71 HK cents, down from 3.14 HK cents in the same period of 2021, reflecting a decline of approximately 13.7%[145]. E-Commerce Business - The Group offers over 500 types of products through its E-Commerce business, focusing on high-quality and diversified offerings[24]. - The E-Commerce business has been strategically positioned as a brand retailer in private E-Commerce platforms, collaborating with three platforms[23]. - The Group has been engaged in E-Commerce since March 2021, holding a 51% equity interest in CK Baiyin, a company incorporated in China[23]. - The Group plans to further expand technical platforms, increase product types, and enhance smart services to capture a larger market share in the E-Commerce business in China[31]. - E-Commerce business revenue decreased to HK$133,597,000 from HK$223,339,000, indicating a decline of approximately 40.2%[114]. Construction Business - Five new projects with an aggregate contract value of approximately HK$328.1 million were awarded to the Group during the Period[22]. - As of 30 September 2022, there were 34 ongoing projects with an outstanding contract sum of approximately HK$1,274.9 million[22]. - Revenue from construction business, including formwork services and other construction services, was HK$642,409,000, up from HK$532,110,000, reflecting a growth of about 20.7%[114]. - The reportable segment profit before tax for the construction business was HK$30,105,000[121]. - The Group's construction business primarily serves customers in Hong Kong[118]. Expenses and Costs - Selling and administrative expenses increased by HK$77.6 million to approximately HK$91.6 million, compared to approximately HK$14 million in the corresponding period last year, mainly due to increased director's emoluments and selling commission expenses for the E-Commerce business[29][30]. - Staff costs increased to HK$112,387,000 from HK$104,124,000, representing an increase of approximately 8% year-over-year[137]. Assets and Liabilities - Total assets as of September 30, 2022, increased to HK$598,574,000 from HK$575,452,000 as of March 31, 2022, representing a growth of approximately 4.9%[88]. - Trade receivables decreased to HK$75,549,000, down 22.0% from HK$96,952,000 as of March 31, 2022[88]. - Contract assets increased significantly to HK$269,610,000, up 20.5% from HK$223,788,000 as of March 31, 2022[88]. - Current liabilities decreased slightly to HK$169,042,000 from HK$170,682,000, indicating a reduction of approximately 1.0%[90]. - Total debts, including lease liabilities and bank borrowings, increased to approximately HK$38.5 million as of September 30, 2022, from approximately HK$16.8 million as of March 31, 2022[44]. Corporate Governance - The company complied with all applicable provisions of the Corporate Governance Code except for the separation of roles between chairman and chief executive[69]. - The company recognizes the importance of maintaining high standards of corporate governance to protect shareholder interests[66]. - The company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance among all directors during the reporting period[71]. Cash Flow - Cash and cash equivalents were approximately HK$189.2 million as of September 30, 2022, down from approximately HK$217.9 million as of March 31, 2022[43]. - Net cash used in operating activities for the six months ended 30 September 2022 was HK$31,827,000, compared to HK$13,594,000 in the same period of 2021, indicating a significant increase in cash outflow[95]. - Net cash used in investing activities was HK$16,131,000 for the six months ended 30 September 2022, compared to HK$2,078,000 in the previous year, reflecting increased investment expenditures[95]. - Net cash generated from financing activities was HK$19,424,000 for the six months ended 30 September 2022, a substantial recovery from a net cash outflow of HK$822,000 in the same period of 2021[95]. Shareholder Information - Mr. Lo holds a total interest of 546,750,000 shares, representing approximately 54.6% of the company[57]. - Mrs. Lo, as the spouse of Mr. Lo, is deemed to have an interest in all shares held by Mr. Lo, totaling 546,750,000 shares or 54.6%[58]. - Magnificent Faith, wholly owned by Mr. Lo, holds 546,750,000 ordinary shares, equating to 54.6% of the company[62]. - CT Vision Strategic Company Limited, beneficially owned by Dr. Ho, holds 140,310,000 ordinary shares, representing 14.0% of the company[62]. Miscellaneous - There were no significant investments, material acquisitions, or disposals of subsidiaries and affiliated companies during the six months ended September 30, 2022[50]. - The company did not recommend the payment of a dividend for the six months ended 30 September 2022, consistent with the previous year[173]. - The Group did not have any significant contingent liabilities as of 30 September 2022, and ongoing litigations are expected to be covered by insurance[176].

Contracts and Revenue - In FY 2022, Chi Kan Holdings Limited was awarded 16 new contracts with an aggregate contract sum of approximately HK$1,112.0 million[24]. - As of March 31, 2022, the company had a total of 32 contracts on hand, an increase from 28 contracts as of March 31, 2021[24]. - The amount of contract sum yet to be recognized as of March 31, 2022, was approximately HK$1,376.1 million, slightly down from HK$1,381.6 million as of March 31, 2021[24]. - The Group's consolidated revenue for FY2022 was approximately HK$1,574.3 million, a significant increase from approximately HK$826.2 million in FY2021, primarily driven by construction projects and E-Commerce revenue[32]. - The construction business contributed approximately HK$1,133.2 million to the revenue, with 32 projects on hand as of March 31, 2022, compared to 28 projects in FY2021[32]. - E-Commerce business generated approximately HK$441.2 million in revenue during FY2022, reflecting the Group's strategic positioning in private E-Commerce platforms[32]. E-Commerce Business - The company has been engaged in E-Commerce business since March 2021, cooperating with over 40 suppliers and offering 500 types of products[25]. - The company aims to achieve sustainable and rapid development in its online retail business by providing high-quality and diversified products[25]. - The Group has engaged with over 40 suppliers and brand merchants, offering over 500 types of products in its E-Commerce business, focusing on high-quality and diversified offerings[31]. - The Group holds a 51% equity interest in CK Baiyin, which operates in the E-Commerce sector, enhancing its market presence in the PRC[30]. - The Group plans to expand technical platforms and increase product types to enhance its market share in the E-Commerce business in China[60]. Financial Performance - Gross profit for FY2022 was approximately HK$322.4 million, with a gross profit margin of approximately 20.5%, up from 7.3% in FY2021, indicating improved profitability[32]. - Selling and administrative expenses increased significantly to approximately HK$245.8 million in FY2022, up from approximately HK$26.9 million in FY2021, mainly due to higher operating expenses in the E-Commerce segment[35]. - Profit attributable to the owners of the Company decreased to approximately HK$38.8 million, representing a decline of 9.4% from approximately HK$42.8 million in the previous year[35]. - The adjusted profit for the year, excluding non-recurring expenses, was approximately HK$38.8 million, an increase of about 6.0% compared to approximately HK$36.3 million in FY2021[35]. Challenges and Risks - The COVID-19 pandemic has posed unprecedented challenges, but the company remains hopeful for economic recovery due to vaccine developments[27]. - The outbreak of COVID-19 in Hong Kong may significantly and adversely impact the Group's business operation and financial performance due to unfavorable economic conditions and decreased purchasing power[38]. - Health safety risks during COVID-19 may lead to labor shortages, increased wages, and interruptions in business operations, delaying project progress[38]. - The Group's revenue is non-recurring, and failure to secure new projects would materially and adversely affect its business, results of operations, financial position, and future prospects[36]. - There is no assurance that the Group will be able to retain major customers or secure new projects, which could adversely affect its financial performance[36]. Management and Governance - The management team is stable and experienced, contributing to high-quality work and customer satisfaction[45]. - The Group's management team includes professionals with extensive experience in their respective fields, enhancing operational effectiveness[72]. - The Company is focused on strategic planning and business development, with oversight of daily operations by the executive team[64]. - The board includes a mix of executive and independent non-executive directors, enhancing governance and oversight[66]. - The Company has adopted the Corporate Governance Code and complied with all applicable provisions except for the separation of the roles of chairman and chief executive[119]. Environmental, Social, and Governance (ESG) - The Group is committed to quantifying and disclosing key performance indicators within environmental and social categories[173]. - The Group emphasizes the importance of sustainability as a critical element for maintaining its leading position in the industry and positively contributing to community development[175]. - The Group prioritizes community involvement and social responsibilities as part of its corporate strategy[181]. - The Group aims to improve its environmental practices continually through employee training and operational measures[190]. - The Group's ESG performance and corporate governance details are available on its website for stakeholder feedback[183]. Shareholder Relations - The annual shareholders' meetings serve as the primary forum for communication between the Company and its shareholders[165]. - The Company encourages shareholders to participate in general meetings and appoint proxies to attend[163]. - The Group's annual general meeting serves as a platform for reporting overall business performance to investors[176]. - The Company has established written guidelines for relevant employees regarding their dealings in the securities of the Company, with no incidents of non-compliance noted since the Listing[120]. Financial Position and Liquidity - The Group's liquidity position is closely monitored by directors and senior management to meet funding needs[50]. - The Group's cash inflows mainly comprise progress payments from customers, which are paid after the works have commenced and the value is confirmed[39]. - The Group expects to fund future cash flow needs through internally generated cash flows from operations and bank facilities[55]. - The Group's capital structure consisted of equity of approximately HK$403.6 million and debts of approximately HK$16.8 million as at 31 March 2022[55]. - The Group's cash flow management is prudent, with no material outstanding debts as at 31 March 2022, except for certain debts including lease liabilities and bank borrowings[55].