B & D Strategic Holdings Limited · Income tax expenses 7 (4,735) (4,435) Profit and total comprehensive income for the period 23,364 12,682 Earnings per share — Basic (HK cents)

– 1 –

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

B & D Strategic Holdings Limited(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1780)

ANNOUNCEMENT OF INTERIM RESULTSFOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

FINANCIAL HIGHLIGHTS

• Revenueof theGroup for the sixmonths ended30September 2019 amounted toapproximatelyHK$203.5million(sixmonthsended30September2018:approximatelyHK$160.8million).

• Grossprofitmarginof theGroup for the sixmonthsended30September2019wasapproximately16.8%whichwaslowerthanthatofthecorrespondingsixmonthsended30September2018(sixmonthsended30September2018:approximately20.5%).

• Profit before tax of theGroup for the sixmonths ended 30September 2019wasapproximatelyHK$28.1million(sixmonthsended30September2018:approximatelyHK$17.1million).

• Profit of theGroup for the sixmonths ended 30 September 2019 amounted toapproximatelyHK$23.4million(sixmonthsended30September2018:approximatelyHK$12.7million).

• Basicearningsper share for the sixmonthsended30September2019amounted toapproximatelyHKcents3.92 (sixmonthsended30September2018:approximatelyHKcents2.73).

• TheBoarddeclaresaninterimdividendofHKcents4.84pershareforthesixmonthsended30September2019(sixmonthsended30September2018:Nil).

–2–

Theboard(the“Board”)ofdirectors(the“Directors”)ofB&DStrategicHoldingsLimited(the“Company”)ispleasedtopresenttheunauditedcondensedconsolidatedfinancialresultsof theCompanyanditssubsidiaries(collectively, the“Group”)for thesixmonthsended30September2019, togetherwith thecomparative figures for the corresponding sixmonthsended30September2018.TheinformationcontainedinthisannouncementshouldbereadinconjunctionwiththeprospectusoftheCompanydated13April2019(the“Prospectus”).

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFor the six months ended 30 September 2019

Six months ended 30 September

2019 2018Notes HK$’000 HK$’000

(Unaudited) (Unaudited)

Revenue 4, 5 203,473 160,804Directcosts (169,323) (127,873)

Grossprofit 34,150 32,931Otherincome,othergainsorlosses 6 899 76Listingexpenses – (11,125)Administrativeexpenses (6,948) (4,765)Financecosts (2) –

Profitbeforetax 8 28,099 17,117Incometaxexpenses 7 (4,735) (4,435)

Profitandtotalcomprehensiveincome fortheperiod 23,364 12,682

Earningspershare—Basic(HKcents) 10 3.92 2.73

–3–

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs at 30 September 2019

As at Asat30 September 31March

2019 2019Notes HK$’000 HK$’000

(Unaudited) (Audited)

Non-current assets Property,plantandequipment 15,627 4,063 Right-of-useassets 88 –

15,715 4,063

Current assets Tradeandotherreceivables,depositsand prepayments 11 54,942 34,247 Contractassets 83,074 76,095 Pledgedbankdeposits 27,511 21,263 Bankbalancesandcash 172,753 61,121

338,280 192,726

Current liabilities Tradeandotherpayables 12 61,696 43,095 Contractliabilities – 3,028 Leaseliabilities 70 – Taxationliabilities 7,845 3,559

69,611 49,682

Net current assets 268,669 143,044

Net assets 284,384 147,107

Capital and reserves Sharecapital 6,200 –* Reserves 277,312 146,702

Equity attributable to owners of the Company 283,512 146,702

Non-current liabilities Deferredtaxliabilities 854 405 Leaseliabilities 18 –

Total equity 284,384 147,107

* Amount less than HK$1,000

–4–

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTSFor the six months ended 30 September 2019

1. GENERAL INFORMATION

B&DStrategicHoldingsLimited (the “Company”)was incorporated in theCayman Islands as anexemptedcompanyandregistered in theCaymanIslandswith limited liabilityunder theCompaniesLaw,Cap.22(Law3of1961,asconsolidatedandrevised)oftheCaymanIslandson24April2018anditsshareshavebeen listedonMainBoardofTheStockExchangeofHongKongLimited (the“Stock Exchange”)witheffectivefrom30April2019(the“Listing”).Itsregisteredofficeis locatedatPOBox1350,CliftonHouse,75FortStreet,GrandCaymanKY1-1108,CaymanIslands.Theaddressof itsprincipalplaceofbusiness is located atRoom2803–2803A,AsiaTradeCentre, 79LeiMukRoad,KwaiChung,NewTerritories,HongKong.

TheCompany is an investmentholdingcompany.Thebusinessesof theCompanyand its subsidiaries(collectivelyreferredtoasthe“Group”)aremainlyconductedthroughthreemajoroperatingsubsidiaries,namely, (i)KaShunCivilEngineeringCompanyLimited (“Ka Shun Civil Engineering”), (ii)KaShunContractorsLimited (“Ka Shun Contractors”); and (iii)KaConstructionCompanyLimited (“Ka Construction”); andareprincipallyengaged inprovisionof servicesonalterationandadditionworks(includingalterationandadditionofbuilding layoutandstructuralworks thatcomprisingdesignofnewstructuralworks, fitting-outworks,changes in facilitiesconfiguration,constructionofanewextensive toexistingbuildings,conversionofanexistingbuildings,conversionofanexistingbuildingtodifferenttype,etc.)andcivilengineeringworksinHongKong.

Asat30September2019, theultimate controllingpartyof theGroup isMr.TangWingKwok (“Mr. Tang”).IntheopinionofthedirectorsoftheCompany,theimmediateandultimateholdingcompanyoftheGroup isSkyWinnerHoldingsLimited (“Sky Winner”), acompany incorporated in theBritishVirginIslands(“BVI”).

Theunauditedcondensedconsolidated financial statements (the“Interim Financial Information”) ispresentedinHongKongDollar(“HK$”),whichisthesameasthefunctionalcurrencyoftheGroup.

2. BASIS OF PREPARATION

The InterimFinancial Information for the sixmonths ended30September2019and2018havebeenpreparedinaccordancewiththeapplicabledisclosurerequirementsofAppendix16totheRulesGoverningtheListingofSecurities on theStockExchange andHongKongAccountingStandard (“HKAS”) 34“InterimFinancialReporting” issuedby theHongKong InstituteofCertifiedPublicAccountants (the“HKICPA”).TheInterimFinancialInformationdoesnotincludealloftheinformationrequiredinannualconsolidatedfinancialstatementsandshouldbereadinconjunctionwiththeannualconsolidatedfinancialstatementsoftheGroupfortheyearended31March2019.

3. SIGNIFICANT ACCOUNTING POLICIES

OtherthanchangesinaccountingpoliciesresultingfromapplicationofnewandamendmentstoHongKongFinancialReportingStandards (“HKFRSs”) issuedbyHKICPA, theaccountingpoliciesandmethodsofcomputationusedintheInterimFinancialInformationforthesixmonthsended30September2019arethesameasthosefollowedinthepreparationoftheannualconsolidatedfinancialstatementsoftheGroupfortheyearended31March2019.

–5–

Application of new and amendments to HKFRSs

In thecurrent interimperiod, theGrouphas applied, for the first time, the followingnewandcertainamendmentstoHKFRSswhicharemandatorilyeffectivefortheannualperiodbeginningonorafter1April2019forthepreparationoftheInterimFinancialInformation:

HKFRS16 LeasesHK(IFRIC)-Int23 UncertaintyoverIncomeTaxTreatmentsAmendmentstoHKFRS9 PrepaymentFeatureswithNegativeCompensationAmendmentstoHKAS19 PlanAmendment,CurtailmentorSettlementAmendmentstoHKAS28 Long-termInterestsinAssociatesandJointVenturesAmendmentstoHKFRSs AnnualimprovementstoHKFRSs2015–2017Cycle

Exceptasdescribedbelow,theapplicationofthenewandamendmentstoHKFRSsinthecurrentperiodhashadnomaterialimpactontheGroup’sfinancialpositionsandperformanceforthecurrentandpriorperiodsand/oronthedisclosuressetoutintheInterimFinancialInformation.

Impacts and changes in accounting policies of application of HKFRS 16 Leases

TheGrouphasappliedHKFRS16 for the first time in thecurrent interimperiod.HKFRS16supersededHKAS17Leases(the“HKAS 17”),andtherelatedinterpretations.

Ontransition,theGrouphasmadethefollowingadjustmentsuponapplicationofHKFRS16:

Asat1April2019,theGrouprecognisedadditionalleaseliabilitiesandright-of-useassetsatamountsequalto the related lease liabilitiesadjustedbyanyprepaid leasepaymentsbyapplyingHKFRS16.C8(b)(ii)transition.

When recognising the lease liabilities for leasespreviouslyclassifiedasoperating leases, theGrouphasapplied incrementalborrowing ratesof the relevantgroupentitiesat thedateof initialapplication.Theweightedaveragelessee’sincrementalborrowingrateappliedis3.5%.

At 1 April 2019

HK$’000

Operatingleasecommitmentsdisclosedasat31March2019 465

Leaseliabilitiesdiscountedatrelevantincrementalborrowingrates (7)Less:Recognitionexemption—short-termleases (336)

Lease liabilities relating to operating leases recognised upon application of HKFRS 16 122

Analysedas Currentportion 69 Non-currentportion 53

Lease liabilities as at 1 April 2019 122

–6–

Thecarryingamountofright-of-useassetsasat1April2019comprisesthefollowing:

Right-of-useassets

HK$’000

Right-of-useassetsrelatingtooperatingleasesrecogniseduponapplication ofHKFRS16 122

Byclass: Buildings 122

Thefollowingadjustmentsweremade to theamounts recognised in thecondensedconsolidatedstatementof financialpositionat1April 2019.Line items thatwerenot affectedby the changeshavenotbeenincluded.

Note

Carrying amount

previouslyreported at

31 March 2019 Adjustments

Carryingamount

under HKFRS 16 at 1 April 2019

HK$’000 HK$’000 HK$’000

Non-current assetsRight-of-useassets – 122 122

Current liabilitiesLeaseliabilities (a) – (69) (69)

Non-current liabilitiesLeaseliabilities (a) – (53) (53)

Note:

(a) As at 1April 2019, current lease liabilities andnon-current lease liabilities ofHK$69,000 andHK$53,000wererecognisedrespectively.

–7–

4. REVENUE

Disaggregation of revenue from contracts with customers

Revenueof theGroup represents the fairvalueofamounts receivedand receivable from theprovisionofservicesonalterationandadditionworksandcivilengineeringworksinHongKong(allbeingrecognisedover timeunder long-termcontracts inHongKong)during thesixmonthsended30September2019and2018.

Six months ended 30 September2019 2018

HK$’000 HK$’000(Unaudited) (Unaudited)

Contractrevenuefromprovisionofservicesonalteration andadditionworks 76,514 123,165Contractrevenuefromprovisionofservicesoncivil engineeringworks 126,959 37,639

203,473 160,804

5. SEGMENT INFORMATION

Operatingsegmentsare identifiedon thebasisof internal reportsaboutcomponentsof theGroup thatareregularlyreviewedbythechiefoperatingdecisionmaker(the“CODM”),beingtheexecutivedirectorsoftheCompany, inorder forCODMtoallocate resourcesandassessperformance.NooperatingsegmentsidentifiedbytheCODMhavebeenaggregatedinarrivingatthereportingsegmentsoftheGroup.

Specifically, theGroup’s reportingandoperatingsegmentsunderHKFRS8Operating Segments areasfollows:

• Alterationandadditionworks;and

• Civilengineeringworks.

TheCODMmakesdecisionsaccording to theoperating resultsofeachsegment.Noanalysisof segmentassetsandsegmentliabilitiesispresentedastheCODMdoesnotregularlyreviewsuchinformationforthepurposes of resources allocation andperformance assessment.Therefore, only segment revenue andsegmentresultsarepresented.

–8–

Segment revenue and profit

ThefollowingisananalysisoftheGroup’srevenueandresultsbyoperatingsegments:

For the six months ended 30 September 2019

Alteration andCivil

engineeringaddition works works Total

HK$’000 HK$’000 HK$’000(Unaudited) (Unaudited) (Unaudited)

Segmentrevenue—external 76,514 126,959 203,473

Segmentresults 10,932 23,218 34,150

Otherincome,othergainsorlosses 899Administrativeexpenses (6,948)Financecosts (2)

Profitbeforetax 28,099

For the six months ended 30 September 2018

AlterationandCivil

engineeringadditionworks works Total

HK$’000 HK$’000 HK$’000(Unaudited) (Unaudited) (Unaudited)

Segmentrevenue—external 123,165 37,639 160,804

Segmentresults 26,065 6,866 32,931

Otherincome,othergainsorlosses 76Listingexpenses (11,125)Administrativeexpenses (4,765)

Profitbeforetax 17,117

6. OTHER INCOME, OTHER GAINS OR LOSSES



Bankinterestincome 599 19Gainondisposalofproperty,plantandequipment,net 202 7Others 98 50

899 76

–9–

7. INCOME TAX EXPENSE



Currenttax: HongKong 4,286 4,515Deferredtax 449 (80)

4,735 4,435

HongKongProfitsTaxiscalculatedat16.5%oftheestimatedassessableprofitsforthesixmonthsended30September2019(sixmonthsended30September2018:16.5%).

Commencing fromyear ended 31March 2019, the assessable profits of aHongKong incorporatedsubsidiary (aselectedby themanagement) is subject to the two-tieredprofits tax rates regimewhichwaseffectiveon28March2018 that the firstHK$2millionofassessableprofitswillbe taxedat8.25%,andassessableprofitsaboveHK$2millionwillbe taxedat16.5%.TheHongKongProfitsTaxofotherHongKongincorporatedsubsidiariesiscalculatedat16.5%oftheirrespectiveestimatedassessableprofitsforthesixmonthsended30September2019.

8. PROFIT BEFORE TAX



Profitbeforetaxhasbeenarrivedataftercharging:

Staffcosts(includingdirectors’emoluments): Salariesandotherbenefits 10,544 16,192 Retirementbenefitschemecontributions 389 652

10,933 16,844

Auditor’sremuneration 500 350

Minimumleasepaymentsunderoperatingleasesinrespectof: —propertiesandwarehouse 157 585 —plantandmachinery 337 1,083Depreciationofproperty,plantandequipment 2,852 1,370Depreciationofright-of-useassets 34 –

–10–

9. DIVIDENDS

Six months ended30 September2019 2018


Interimdividendproposedaftertheendofthereportingperiod 30,000 –

On26November2019, theBoardhasdeclaredaninterimdividendofHKcents4.84persharefor thesixmonthsended30September2019payableonoraround8January2020toownersof theCompanywhosenamesappearon the registerofmembersof theCompanyon13December2019.Theamountof interimdividenddeclaredwascalculatedbasedonthenumberofordinarysharesinissueatthedateofapprovaloftheInterimFinancialInformation.TheinterimdividendhasnotbeenrecognisedasaliabilityinthisInterimFinancialInformation.

10. EARNINGS PER SHARE



Earningsforthepurposeofcalculatingbasicearningspershare (profitfortheperiodattributabletotheownersoftheCompany) 23,364 12,682

Number Numberof shares ofshares

’000 ’000(Unaudited) (Unaudited)

Weightedaveragenumberofordinarysharesforthepurpose ofcalculatingbasicearningspershare 595,437 465,000

Theweightedaveragenumberofordinarysharesforthepurposeofcalculatingbasicearningpersharehasbeenadjustedfortheissuanceof155,000,000ordinarysharespursuanttotheShareOfferon30April2019andon the assumption that theReorganisation and theCapitalisation Issue (asdefined in the annualconsolidatedfinancialstatementsoftheGroupfortheyearended31March2019)hadbeeneffectiveon1April2018.

Nodilutedearningspershareispresentedforbothperiodsastherewasnopotentialordinaryshareinissue.

– 11 –

11. TRADE AND OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

30 September 31March2019 2019

HK$’000 HK$’000(Unaudited) (Audited)

Tradereceivables 45,836 20,551Advancestosub-contractorsandsuppliers 6,362 5,512Deferredissuecosts – 5,697Otherreceivables 1,449 970Prepaymentsanddeposits 1,295 1,517

54,942 34,247

Trade receivables

TheGroupallowsgenerallyacreditperiodrangingfrom30to90daystoitscustomers.Thefollowingisanagedanalysisoftradereceivablesfromcontractswithcustomerspresentedbasedondatesofworkcertifiedattheendofeachreportingperiod,netofallowanceforcreditloss.



1–30days 20,261 20,11131–60days 23,190 44061–90days – –Over90days 2,385 –

45,836 20,551

–12–

12. TRADE AND OTHER PAYABLES



Tradepayables 45,821 18,428Retentionpayables 11,191 10,438Staffcostspayables 2,808 2,752Accruedissuecosts – 8,421Otherpayables 1,876 3,056

61,696 43,095

Thefollowingisanagedanalysisof tradepayablespresentedbasedontheinvoicedatesat theendof thereportingperiod:



1–30days 31,869 13,16731–60days 13,952 5,26161–90days – –Over90days – –

45,821 18,428

–13–

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS REVIEW AND OUTLOOK

WeareacontractorspecialisinginalterationandadditionworksandcivilengineeringworksinHongKong. Inorder to emphasise the specificationondifferent fieldsof constructionworks,amongourprincipaloperatingsubsidiaries,KaShunContractorsmainlyfocusesontheprovisionofservicesonalterationandadditionworks,whileKaShunCivilEngineeringandKaConstructionmainly focus on the provision of services on civil engineeringworksgenerallyincludesiteformationandfoundationworks.

Wehaveobtainedallmaterial licenses,permitsand registration required forcarryingonourbusiness activities, including theRegisteredGeneralBuildingContractors andSpecialistContractors—SiteFormationWorksgrantedby theBuildingsDepartment; theApprovedContractorsforPublicWorks(RoadsandDrainage)andtheApprovedContractorsforPublicWorks (Site Formation) granted byWorksBranch of theDevelopmentBureau of theGovernmentofHongKong; andSubcontractorRegistrationSchemeof theConstructionIndustryCouncil under the group of concreting formwork, reinforcement bar fixing,concretingandgeneralcivilworks.

The shares of theCompany (the “Shares”)were listed on theMainBoardof theStockExchangeon30April2019,when155,000,000ordinaryshares(comprisingapublicofferof31,000,000sharesandplacingof124,000,000shares)hadbeenofferedforsubscription,atanoffer price ofHK$0.84 per Share. The proceeds received from the share offer havestrengthenedtheGroup’scashflowandtheGroupwillimplementitsfutureplansassetoutinthesectionheaded“FuturePlansandUseofProceeds”totheProspectus.

FINANCIAL REVIEW

Revenue

Our revenue increased fromapproximatelyHK$160.8million for the sixmonthsended30September2018 toapproximatelyHK$203.5million for thesixmonthsended30September2019,representinganincreaseofapproximately26.5%.

The increasewasprimarily attributable fromanawardof a civil engineeringproject in arelativelylargescaleduringthesixmonthsended30September2019.

Direct Costs

OurdirectcostsincreasedfromapproximatelyHK$127.9millionforthesixmonthsended30September2018 toapproximatelyHK$169.3million for thesixmonthsended30September2019, representingan increaseofapproximately32.4%.Such increase indirect costswasattributablefromasignificantincreaseinsubcontractingcostsasaresultoftheincreaseintheuseof subcontractors, insteadofdirect labour,becauseof thenatureand technicalneedsofcontractworks.

–14–

Gross Profit and Gross Profit Margin

Ourgrossprofit amounted toapproximatelyHK$32.9millionandapproximatelyHK$34.2millionforthesixmonthsended30September2018andthesixmonthsended30September2019respectively,representinganincreaseofapproximately3.7%.Theincreaseinourgrossprofitwasprimarilyattributable fromprofitgenerated fromacivilengineeringproject inarelativelylargescaleduringthesixmonthsended30September2019.

The gross profit margin of alteration and addition works segment decreased fromapproximately21.2%for thesixmonthsended30September2018 toapproximately14.3%for the sixmonthsended30September2019.Thedecreasewasmainlybecause (i)highergrossprofitmargin for the core constructionworksof an alternationandadditionworksproject has been recognised in the sixmonths ended30September 2018,whichwas incompletionstageinthesixmonthsended30September2019;and(ii)severalnewalterationandadditionworksprojectswithdifferentscaleinsizewereininitialstageswhichgeneratedalowerprofitmarginduringthesixmonthsended30September2019.

Thegrossprofitmarginofcivilengineeringworkssegmentwasapproximately18.2%forthesixmonthsended30September2018andapproximately18.3%for thesixmonthsended30September2019.Thegrossprofitmarginwasgenerallystableduringthesixmonthsended30September2019and2018.

Other Income, Other Gains or Losses

Ourotherincome,othergainsorlossesincreasedfromapproximatelyHK$76,000forthesixmonthsended30September2018toapproximatelyHK$899,000forthesixmonthsended30September2019.Suchdifferencewasmainlydue to the increaseof interest incomearisingfromplacingoffixeddepositduringthesixmonthsended30September2019.

Administrative Expenses

OuradministrativeexpensesincreasedfromapproximatelyHK$4.8millionforthesixmonthsended30September2018 to approximatelyHK$6.9million for the sixmonths ended30September2019,representinganincreaseofapproximately45.8%.Suchincreasewasmainlydue to thepost-listing expenses incurred tomaintain the listing status of theCompany,includingshareregistrationservices,professionalfeesandfinancialprintingfee,etc.,forthesixmonthsended30September2019whileno suchexpenses incurred for the sixmonthsended30September2018.

Income Tax Expenses

OurprofitbeforetaxincreasedfromapproximatelyHK$17.1millionforthesixmonthsended30September2018toapproximatelyHK$28.1millionforthesixmonthsended30September2019,whichwasmainlyattributabletotheneteffectof(i) theincreaseinrevenueandgrossprofitasdiscussedabove; (ii) the recognitionof listingexpensesofapproximatelyHK$11.1million during the sixmonths ended 30 September 2018while no such expenseswasrecognisedduring the sixmonths ended30September2019; and (iii) the increase in theadministrativeexpensesasdiscussedabove.

–15–

Following the increase in our profit before tax, our income tax expense increased fromapproximatelyHK$4.4millionforthesixmonthsended30September2018toapproximatelyHK$4.7millionforthesixmonthsended30September2019asaresultoftheneteffectof(i)the increase in revenue and gross profit as discussed above; (ii) the tax effect of non-deductiblelistingexpensesforthesixmonthsended30September2018;and(iii)theincreaseintheadministrativeexpensesasdiscussedabove.

Profit and Total Comprehensive Income for the Period

Ourprofit and total comprehensive income for the period attributable to owners of theCompany increased from approximatelyHK$12.7million for the sixmonths ended 30September2018 toapproximatelyHK$23.4million for thesixmonthsended30September2019,whichwasmainlyduetotheneteffectof(i)theincreaseinthegrossprofitasdiscussedabove; (ii) the recognitionof listingexpensesofapproximatelyHK$11.1millionduring thesixmonthsended30September2018whilenosuchexpenseswas recognisedduring thesixmonthsended30September2019;and (iii) the increase in theadministrativeexpensesasdiscussedabove.

LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE

Asat30September2019,theCompany’sissuedcapitalwasHK$6.2millionandthenumberofitsissuedordinaryshareswas620,000,000sharesofHK$0.01each.

Asat30September2019, theGrouphad totalcashandcashequivalentsandpledgedbankdepositsofapproximatelyHK$172.8millionandapproximatelyHK$27.5millionrespectively(31March 2019: approximatelyHK$61.1million and approximatelyHK$21.3millionrespectively).

TheGroup has funded the liquidity and capital requirements primarily through capitalcontributionsandcashinflowgeneratedfromoperatingactivitiesforthesixmonthsended30September2019 aswell as theproceeds received from theShareOffer by listingof theCompany’sshare.

FOREIGN EXCHANGE EXPOSURES

AstheGrouponlyoperatesinHongKongandalloftherevenueandtransactionsarisingfromitsoperationsweresettledinHongKongdollar,theDirectorsareoftheviewthattheGroup’sforeign exchange rate risks are insignificant.Thus, theGrouphas not entered into anyderivativecontractstohedgeagainsttheforeignexchangeexposureforthesixmonthsended30September2019aswellasforthesixmonthsended30September2018.

GEARING RATIO

Gearing ratio iscalculatedas totalborrowingsdividedby totalequityat theperiodenddateand expressed as a percentage.Thegearing ratioof theGroup as at 30September2019remainednil(31March2019:Nil).

–16–

DEBTS AND CHARGES ON ASSETS

TheGrouphadnodebtsandchargesonassetsasat30September2019and31March2019.

CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

Asat30September2019, theGrouphadnomaterial capital commitmentsandcontingentliabilities(31March2019:Nil).

SIGNIFICANT INVESTMENTS, MATERIAL ACQUISITIONS OR DISPOSAL OF SUBSIDIARIES AND ASSOCIATED COMPANIES

During the sixmonthsended30September2019, theGroupdidnothaveany significantinvestmentsheldor anymaterial acquisitionsordisposalsof subsidiaries andassociatedcompanies.

FUTURE PLANS FOR MATERIAL INVESTMENT OR CAPITAL ASSETS

Save as disclosed under the section headed “FuturePlans andUse of Proceeds” in theProspectus, therewas noother plans formaterial investments or capital assets as at 30September2019.

COMPARISON OF BUSINESS OBJECTIVES WITH ACTUAL BUSINESS PROGRESS AND USE OF PROCEEDS

TheListingoftheCompany’sshareshascommencedontheStockExchangeon30April2019(the “Listing Date”). The net proceeds from the initial public offering amounted toapproximatelyHK$96.7million,whichwillbeappliedby theGroup inaccordancewith thedisclosure as set out in the section headed “Future Plans andUse of Proceeds” of theProspectus.

Uptothedateofthisannouncement,detailsoftheuseoftheproceedsarelistedasbelow:

Actual usageup to

Planned useof proceed

the dateof this

announcementHK$’000 HK$’000

Strengtheningourfinancialposition 77,428 77,428Expandingourworkforce 10,840 69Enhancingourmachineryfleet—ReplacingNRMMexemptedmachinery 4,162 4,162Generalworkingcapital 4,355 4,355

96,785 86,014

–17–

Asat thedateof thisannouncement, theunutilisedproceedswereplaced in interest-bearingdepositswithauthorisedfinancialinstitutionsorlicensedbanksinHongKong.TheDirectorsregularlyevaluatetheGroup’sbusinessobjectiveandmaychangeormodifyplansagainstthechangingmarketcondition toascertain thebusinessgrowthof theGroup.Up to thedateofthis announcement, theDirectors considered thatnomodificationof theuseofproceedsdescribedintheProspectuswasrequired.

EMPLOYEES AND REMUNERATION POLICY

Asat30September2019,weemployeda totalof62 full-timeemployees (including twoexecutiveDirectorsbutexcludingthreeindependentnon-executiveDirectors),ascomparedtoa totalof83 full-timeemployeesasat30September2018.The remunerationpackages thattheGroup offers to employees includes salary, discretionary bonuses, staff benefits,contributionsand retirement schemesaswellasothercashsubsidies. Ingeneral, theGroupdetermines employee’s salaries based on each employee’s qualifications, position andseniority.TheGrouphasdesignedanannual reviewsystem toassess theperformanceof itsemployees,which forms thebasisof itsdecisionswith respect to salary raises,bonusesandpromotions.ThetotalstaffcostincurredbytheGroupforthesixmonthsended30September2019wasapproximatelyHK$10.9millioncomparedtoapproximatelyHK$16.8millioninthecorrespondingsixmonthsended30September2018.

INTERIM DIVIDEND

TheBoardhasdeclaredan interimdividendofHKcents4.84per share for thesixmonthsended30September2019(sixmonthsended30September2018:Nil),whichwillbepayableonoraroundMonday,8January2020toShareholderswhosenamesappearontheregisterofmembersoftheCompany(the“Register of Members”)onFriday,13December2019.

CLOSURE OF REGISTER OF MEMBERS

Fordetermining theShareholders’entitlement to interimdividend, theRegisterofMemberswillbeclosed fromTuesday,10December2019 toFriday,13December2019 (bothdaysinclusive)duringwhichno transferof shareswillbe registered. Inorder toqualify for theinterimdividend,allcompletedtransferformsaccompaniedbytherelevantsharecertificatesmustbe lodgedwith theCompany’sbranchshare registrar inHongKong,BoardroomShareRegistrars (HK)Limited, at2103B,21/F,148ElectricRoad,NorthPoint,HongKong forregistrationnotlaterthan4:30p.m.onMonday,9December2019.

EVENTS AFTER THE SIX MONTHS ENDED 30 SEPTEMBER 2019

Save asdisclosed in this announcement, theBoard is not awareof any significant eventrequiringdisclosurethathasbeenoccuredafter30September2019anduptothedateofthisannouncement.

–18–

DIRECTORS’ AND CHIEF EXECUTIVE’S INTEREST IN SECURITIES

Asatthedateofthisannouncement,theinterestandshortpositionsoftheDirectorsandchiefexecutiveoftheCompanyintheShares,underlyingsharesanddebenturesoftheCompanyoranyof the associated corporations (within themeaningofPartXVof theSecurities andFuturesOrdinance,Chapter571of theLawsofHongKong (the“SFO”))whichhavebeennotifiedtotheCompanyandtheStockExchangepursuanttoDivisions7and8ofPartXVoftheSFO(includingany interestor shortpositionswhich theyare takenordeemed tohaveunder suchprovisionsof theSFO)orwhich,pursuant to section352of theSFO,havebeenenteredintheregisterreferredtotherein,orhavebeen,pursuanttotheModelCode,notifiedtotheCompanyandtheStockExchangewereasfollow:

(i) Long position in the Shares

Name of DirectorCapacity/Nature of interest

Number of Shares held/interested

Percentage of shareholding

Mr.TangWingKwok (Note 1)

Interestincontrolled corporation

465,000,000 75%

Mr.LoWingHang (Note 2)

Interestincontrolled corporation

465,000,000 75%

Notes:

1. These 465,000,000 Shares are held by SkyWinnerHoldingsLimited.Mr. TangWingKwokbeneficiallyowns69.48%oftheentireissuedsharecapitalofSkyWinnerHoldingsLimited,whichinturnbeneficiallyowns52.11%shareholding in theCompany.Therefore,Mr.TangWingKwok isdeemed,or taken tobe, interested inallourSharesheldbySkyWinnerHoldingsLimited for thepurposeoftheSFO.Mr.TangWingKwokisthechairman,anexecutiveDirectorandthechairmanofthenominationcommitteeof theCompany.Mr.TangWingKwok isalsoadirectorofSkyWinnerHoldingsLimited.

2. These465,000,000SharesareheldbySkyWinnerHoldingsLimited.Mr.LoWingHangbeneficiallyowns30.52%of the entire issued share capital ofSkyWinnerHoldingsLimited,which in turnbeneficiallyowns22.89%shareholdingintheCompany.Therefore,Mr.LoWingHangisdeemed,ortakentobe, interestedinallourSharesheldbySkyWinnerHoldingsLimitedfor thepurposeof theSFO.Mr.LoWingHangisthevice-chairman,thechiefexecutiveofficer,anexecutiveDirectorandamemberoftheremunerationcommitteeoftheCompany.Mr.LoWingHangisalsoadirectorofSkyWinnerHoldingsLimited.

(ii) Long position in the ordinary shares of associated corporation

Name of DirectorName of associated corporation

Capacity/Nature

Number of shares held


Mr.TangWingKwok SkyWinnerHoldings Limited

Beneficial owner

6,948 69.48%

Mr.LoWingHang SkyWinnerHoldings Limited

Beneficial owner

3,052 30.52%

–19–

Substantial shareholders’ interests and short positions in Shares and underlying Shares

Asatthedateofthisannouncement,sofarasisknowntotheDirectors,thefollowingpersons(notbeingaDirectororchiefexecutiveof theCompany)had interestor shortposition inSharesorunderlyingShareswhichwouldfall tobedisclosed to theCompanyand theStockExchangeundertheprovisionofDivision2and3ofPartXVoftheSFOorasrecordedintheregisterrequiredtobekeptbytheCompanypursuanttotheSection336oftheSFO,orwhichwouldbedirectlyorindirectlyinterestedin5%ormoreofthenominalvalueofanyclassofsharecapitalcarryingrightstovoteinallcircumstancesatgeneralmeetingsoftheCompanyoranyothermembersoftheGroup.

Name of ShareholderCapacity/Nature of interest

Number of Shares held/interested in


SkyWinnerHoldingsLimited Beneficialinterest 465,000,000 75%

Ms.LamAhYee(Note 1) Spouseinterest 465,000,000 75%

Ms.ChanWaiChingRebecca (Note 2)

Spouseinterest 465,000,000 75%

Notes:

1. Ms.LamAhYeeisthespouseofMr.TangWingKwok.Accordingly,Ms.LamAhYeeisdeemed,ortakentobe interested inall465,000,000Shares inwhichMr.TangWingKwok is interested for thepurposeoftheSFO.

2. Ms.ChanWaiChingRebecca is the spouseofMr.LoWingHang.Accordingly,Ms.ChanWaiChingRebecca isdeemed,or taken tobe interested inall465,000,000Shares inwhichMr.LoWingHang isinterestedforthepurposeoftheSFO.

Saveasdisclosedabove,asatthedateofthisannouncement,theDirectorswerenotawareofanypersonorcorporation (other than theDirectorsand thechiefexecutives)whohadanyinterestorshortpositioninthesharesorunderlyingsharesoftheCompanywhichwouldfalltobedisclosed to theCompanyunder theprovisionsofDivisions2and3orPartXVof theSFO,orpursuanttosection336oftheSFO,whichwouldhavetoberecordedintheregisterreferredtotherein.

–20–

CORPORATE GOVERNANCE AND OTHER INFORMATION

Compliance with the Corporate Governance Code

TheCompanyhasadoptedtheprinciplesandallrelevantcodeprovisionsassetoutundertheCorporateGovernanceCode (the “CG code”) contained inAppendix 14 to theRulesGoverning theListingofSecuritieson theStockExchange (the“Listing Rules”).As theShareswerenotlistedontheMainBoardoftheStockExchangeuntil30April2019,theCGCodeprovisionswerenotapplicable to theCompanybefore theListingDate.To thebestoftheknowledgeof theBoard, theCompanyhascompliedwith theCGcodesince theListingDateandup to thedateof thisannouncement.TheDirectorswillperiodically reviewon theCompany’scorporategovernancepoliciesandwillproposeanyamendment, ifnecessary, toensurecompliancewiththecodeprovisionsfromtimetotime.

Compliance with the Model Code for Securities Transactions by Directors

TheCompanyhasadoptedtheModelCodeforSecuritiesTransactionsbyDirectorsofListedissuers (the “Model Code”) as set out inAppendix10of theListingRules as a codeofconductof theCompany regardingDirectors’ securities transactionssince theListingDateanduptothedateofthisannouncement.HavingmadespecificenquiriesoftheDirectors,alltheDirectorshaveconfirmed that theyhavecompliedwith the requirementsof theModelCodesincetheListingDateanduptothedateofthisannouncement.

SHARE OPTION SCHEME

Pursuant to thewritten resolutionsof thesole shareholderof theCompanyon4April2019,theCompanyadoptedashareoptionscheme(the“Share Option Scheme”)witheffectfrom4April2019.The termsof theShareOptionSchemeare inaccordancewith theprovisionsofChapter17of theListingRulesandare summarised in theProspectus.ThemainpurposeoftheShareOptionScheme is tomotivateemployees tooptimise theirperformanceefficiencyfor thebenefit of theCompany, to attract and retainbest availablepersonnel, toprovideadditional incentive toemployees (full timeorpart time),directors, consultants, advisers,distributors,contractors, suppliers,agents,customers,businesspartnersor serviceprovidersoftheGroupandtopromotesuccessofthebusinessoftheGroup.

Noshareoptionshadbeengrantedunder theShareOptionSchemesince theadoptionof theScheme.During theperiodbetween theadoptiondateof theShareOptionSchemeand thedateof thisannouncement,noshareoptionhasbeengranted,exercised,cancelledor lapsed.Asat thedateof thisannouncement, the totalnumberofsharesavailablefor issueunder theShareOptionSchemewas62,000,000, representing10%of theentire issuedsharecapitaloftheCompany.

–21–

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

Neither theCompanynor anyof its subsidiariespurchased, soldor redeemedanyof theCompany’slistedsecuritiesforthesixmonthsended30September2019.

COMPETING INTERESTS

TheDirectors confirm that noneof the controlling shareholders of theCompanyor theDirectorsandtheirrespectivecloseassociates(asdefinedintheListingRules)isinterestedinanybusinessapart from thebusinessoperatedby theGroupwhichcompetesor is likely tocompete,directlyor indirectly,with theGroup’sbusinessduring the sixmonthsended30September2019anduptothedateofthisannouncement,andthatisrequiredtobedisclosedpursuanttoRule8.10oftheListingRules.

SUFFICIENCY OF PUBLIC FLOAT

BasedontheinformationthatispubliclyavailabletotheCompanyandwithintheknowledgeoftheDirectors,theDirectorsconfirmedthattheCompanyhasmaintainedasufficientamountofpublicfloatforitsSharesasrequiredundertheListingRulesduringthesixmonthsended30September2019anduptothedateofthisannouncement.

AUDIT COMMITTEE

Theauditcommittee(the“Audit Committee”)oftheBoardwasestablishedon4April2019.TheAuditCommitteeconsistsof three independentnon-executiveDirectors,namelyMr.YeungTzeLong,Mr.CheungTingKin andMr.YiuChunWing.Mr.YeungTzeLongcurrentlyservesasthechairmanoftheAuditCommittee.

The interimfinancial resultsof theGroup for thesixmonthsended30September2019areunauditedbuthavebeen reviewedandapprovedby theAuditCommittee,whichwasof theopinionthatthepreparationofsuchresultscompliedwiththeapplicableaccountingstandardsandrequirementsaswellastheListingRulesandthatadequatedisclosureshavebeenmade.

Publication of Interim Results Announcement and Interim Report

ThisresultsannouncementispublishedontheCompany’swebsiteatwww.bnd-strategic.com.hkand thewebsite of theStockExchange atwww.hkexnews.hk.The interim report of theCompanyforthesixmonthsended30September2019willbedespatchedtoshareholdersoftheCompanyandavailableonthesamewebsitesinduecourse.

–22–

Appreciation

TheBoardwould like to take this opportunity to express its sincere gratitude to themanagement teamandstaff for theirhardworkandcontributions, and to its shareholders,investorsandbusinesspartnersfortheirtrustandsupport.

ByOrderoftheBoardB & D Strategic Holdings Limited

Tang Wing KwokChairman and Executive Director

HongKong,26November2019

As at the date of this announcement, the Board comprises Mr. Tang Wing Kwok and Mr. Lo Wing Hang as executive Directors; and Mr. Yeung Tze Long, Mr. Yiu Chun Wing and Mr. Cheung Ting Kin as independent non-executive Directors.

Documents

B & D Strategic Holdings Limited · Income tax expenses 7 (4,735) (4,435) Profit and total comprehensive income for the period 23,364 12,682 Earnings per share — Basic (HK cents)