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 ...