Financial Performance - The Group recorded total revenue of HK$350.8 million for the year ended 31 March 2021, representing an increase of approximately 43% compared to HK$245.5 million for the year ended 31 March 2020[27]. - The gross profit for the year was approximately HK$21.4 million, which is lower than the gross profit of approximately HK$60.9 million for the year ended 31 March 2020[27]. - The gross profit for the year amounted to approximately HK$21.4 million, representing a decrease of approximately 65% compared to approximately HK$60.9 million for the year ended 31 March 2020[39]. - The gross profit margin for the year was approximately 6.1%, down from approximately 24.8% for the year ended 31 March 2020[39]. - Other income and gain for the year amounted to approximately HK$5.2 million, representing an increase of approximately 311% compared to approximately HK$1.3 million for the year ended 31 March 2020[43]. - Profit attributable to owners of the Company decreased by approximately HK$21.7 million or approximately 78%, from approximately HK$27.7 million to approximately HK$6.0 million for the year[48]. Project and Revenue Insights - The increase in revenue was primarily driven by ongoing projects in the execution-peak stage during the year[38]. - The Group has a total of nine ongoing projects, each with an awarded contract sum of over HK$5 million as of 31 March 2021[35]. - The aggregate contract sums of ongoing projects amounted to approximately HK$716.2 million, with recognized revenue of approximately HK$461.4 million as of 31 March 2021[35]. - The Group's revenue from the largest customer accounted for 59.2% for the year ended 31 March 2021, up from 57.8% in the previous year[80]. - The aggregate revenue from the five largest customers represented 94.0% for the year ended 31 March 2020[80]. Cost and Expense Management - The decrease in gross profit was mainly due to additional costs paid to suppliers to increase production capacity and increased subcontracting costs due to unstable project schedules during the COVID-19 pandemic[27]. - The increase in overall construction costs was attributed to additional costs incurred for subcontracting works due to unstable project schedules during COVID-19[39]. - Administrative expenses for the year amounted to approximately HK$15.7 million, representing an increase of approximately 35.3% compared to approximately HK$11.6 million for the year ended 31 March 2020[45]. - The Group's administrative expenses for the year were approximately HK$15.7 million, an increase of about 35.3% compared to approximately HK$11.6 million for the year ended March 31, 2020[46]. - Finance costs decreased by approximately 8% to HK$107,000 from approximately HK$116,000 for the year ended March 31, 2020, mainly due to the repayment of bank borrowings[47]. Cash and Financial Position - As of March 31, 2021, the Group had total cash and bank balances of approximately HK$84.8 million, down from approximately HK$182.1 million in 2020[50]. - The Group's gearing ratio as of March 31, 2021, was approximately 1.3%, compared to approximately 0.3% in 2020[50]. - As of March 31, 2021, the Group had approximately HK$29.2 million of time deposits pledged for banking facilities, an increase from approximately HK$4.4 million in 2020[50]. - The net proceeds from the Listing amounted to approximately HK$78.9 million, slightly lower than the estimated HK$82.5 million[60]. - The total utilisation of proceeds from the Listing included HK$24.7 million for satisfying surety bond requirements, HK$28.6 million for upfront costs of awarded projects, and HK$6.9 million for expanding the project management team[62]. Market and Industry Outlook - The Group anticipates that the construction industry in Hong Kong will gradually recover under a more stabilized COVID-19 situation[27]. - The prices of certain raw materials have increased rapidly after the year, which will affect project costs and gross profit margins[28]. - The Group will continue to monitor raw material prices closely and take appropriate measures to mitigate risks and impacts on project costs[28]. - Despite near-term challenges, the Group remains focused on long-term goals and will explore suitable development opportunities to broaden its revenue base[29]. Corporate Governance and Management - The Company has adopted the corporate governance code as per Appendix 14 of the Listing Rules and has complied with it throughout the year, except for a deviation from code provision A.2.1[171]. - The Company prioritizes effective corporate governance practices to enhance shareholder value[167]. - The Board consists of five members, including two executive directors and three independent non-executive directors[170]. - The Company encourages Directors to attend relevant programs for professional development and has provided training materials regarding their duties and responsibilities[191]. - The Company established the Audit Committee on December 12, 2019, in compliance with the Listing Rules and the CG Code[199]. Shareholder and Dividend Information - The Board has resolved not to recommend the declaration of a final dividend to shareholders for the year[73]. - The Group's dividend policy allows shareholders to participate in profits while retaining reserves for future growth[73]. - As of March 31, 2021, the company had distributable reserves amounting to approximately HK$66.1 million[24]. Risks and Compliance - Risks include reliance on subcontractors, potential cash outflows affecting project acquisition, and changes in building material costs impacting profitability[66]. - There was no material non-compliance with relevant laws and regulations that significantly impacted the Group's operations during the year[70]. - The Group's financial performance and sustainability depend on securing new projects through competitive tendering processes[66].

Revenue and Profitability - The group's revenue increased by approximately HKD 21.4 million or 14.3% to about HKD 171.5 million for the six months ended September 30, 2020, compared to approximately HKD 150.1 million for the same period in 2019[42]. - Revenue for the six months ended September 30, 2020, was HKD 171,520 thousand, an increase of 14.3% compared to HKD 150,121 thousand in 2019[78]. - Revenue from residential building construction services was HKD 165,909,000, up 38.2% from HKD 120,053,000 in 2019[121]. - Profit attributable to owners decreased by approximately 57.4% to HKD 9.1 million from HKD 21.4 million for the six months ended September 30, 2019[49]. - The company reported a net profit of HKD 9,115 thousand for the period, down 57.5% from HKD 21,397 thousand in the previous year[78]. - Basic earnings per share decreased to HKD 0.91, down from HKD 2.85 in the same period last year[78]. Gross Profit and Margins - Gross profit for the review period was approximately HKD 14.7 million, a decrease of about 63.2% from approximately HKD 40.0 million for the six months ended September 30, 2019, resulting in a gross margin of approximately 8.6%[43]. - The decline in gross profit and gross margin was primarily due to supply chain disruptions caused by the COVID-19 pandemic, leading to increased project costs[38]. Expenses and Costs - Administrative expenses increased by approximately 34.0% to HKD 6.3 million compared to HKD 4.7 million for the six months ended September 30, 2019[47]. - Financing costs decreased by approximately 34.2% to HKD 48,000 from HKD 73,000 for the six months ended September 30, 2019, primarily due to the repayment of bank loans[48]. - Total employee costs, including directors' remuneration, were approximately HKD 15.4 million, compared to approximately HKD 12.9 million for the six months ended September 30, 2019[74]. - The total cost of contracts for the six months ended September 30, 2020, was HKD 156,791,000, compared to HKD 110,104,000 in 2019, reflecting increased operational costs[129]. Cash Flow and Financial Position - The net cash flow from operating activities was a negative HKD 53,855 thousand, compared to a negative HKD 9,734 thousand in the same period last year[91]. - As of September 30, 2020, the group's cash and bank balances totaled approximately HKD 108.8 million, down from HKD 182.1 million as of March 31, 2020[53]. - The company’s total liabilities increased to HKD 47,037 thousand from HKD 21,690 thousand as of March 31, 2020[82]. - The company has a total equity of HKD 244,632 thousand as of September 30, 2020, up from HKD 235,517 thousand as of March 31, 2020[84]. - Cash and cash equivalents at the end of the period were HKD 51,540 thousand, compared to HKD 15,164 thousand in the previous year[95]. Contracts and Projects - The total contract amount for 11 ongoing projects as of September 30, 2020, was approximately HKD 887.6 million, with each contract exceeding HKD 5 million[37]. - The company reported a total contract asset of HKD 72,135,000 as of September 30, 2020, compared to HKD 53,441,000 as of March 31, 2020[143]. - The company’s contract liabilities stood at HKD 862,000 as of September 30, 2020, indicating ongoing project commitments[143]. - As of September 30, 2020, contract assets increased to HKD 72,135,000 from HKD 53,441,000 as of March 31, 2020, reflecting an increase in construction services[149]. - Trade receivables amounted to HKD 66,441,000 as of September 30, 2020, significantly up from HKD 6,829,000 as of March 31, 2020[152]. Strategic Plans and Market Conditions - The company plans to adopt a more competitive bidding pricing policy and strictly control production costs to improve project gross margins moving forward[41]. - The company will actively explore vertical expansion opportunities to ensure a more stable supply of building materials[41]. - The impact of COVID-19 on the business is being closely monitored, with ongoing communication with clients regarding project statuses[41]. - The company has identified that the local property market's uncertainties and economic downturn have led to reduced bidding opportunities, intensifying competition in the construction industry[38]. - The company aims to leverage its expertise and extensive supplier network to explore beneficial opportunities for expanding its revenue base[41]. Governance and Management - The company expects to continue complying with the corporate governance code to safeguard shareholders' best interests[199]. - The board believes that having the same individual serve as both chairman and CEO enhances the effectiveness and efficiency of business planning and decision-making[199]. - The company has established a governance framework that includes regular reviews to ensure compliance with corporate governance standards[200]. - The company has not disclosed any conflicts of interest involving directors or major shareholders during the review period[196]. - The company reported a significant increase in management compensation, indicating a strategic focus on retaining and incentivizing key personnel[16]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the review period, consistent with the previous period[75]. - The company did not declare an interim dividend for the six months ended September 30, 2020, consistent with the previous year[139]. - The issued and paid-up capital remains at HKD 10,000,000 as of both September 30, 2020, and March 31, 2020[164]. - As of September 30, 2020, the controlling shareholder, Mr. Chan Yew Wah, holds 750,000,000 shares, representing 75% of the company's equity[186]. - The company has a stock option plan that allows for the issuance of up to 100,000,000 shares, which is 10% of the total issued shares as of the mid-report date[195].

華 和 控 股 集 團 有 限 公 司 Wah Wo Holdings Group Limited Annual Report 2020 年報 (Incorporated in the Cayman Islands with limited liability) Stock Code 股份代號 : 9938 （於開曼群島註冊成立的有限公司） 2020 Annual Report 年 報 Contents 目錄 2 Corporate Information 公司資料 Chairman's Statement 4 主席報告 6 Management Discussion and Analysis 管理層討論與分析 14 Report of the Directors 董事會報告 Biographies of the Directors and Senior Management 27 董事及高級管理層履歷 30 Corporate Governance Report 企業管治報告 42 Environmental, Social and Governance Report 環境、社會及管治報告 53 Indep ...