On behalf of the Board of Directors of In Construction Holdings Limited (the “Company”), I am pleased to present the annual report of In Construction Holdings Limited (the “Company”) and its subsidiary (collectively “The Group”) for the year ended 31 March 2023 (the “Financial Year 2022/23”).
The Group continues to serve Hong Kong’s building and construction industries by offering quality and flexible solutions to our customers. With learnt experience, technical know-how together with stringent quality control and established procedures, our management team applies their abilities to resolve different and increasingly complex issues on construction projects, succeed in building credibility and trusts of our existing and new customers. We continual to gain the co-operations and support of our clients and business partners who have been working with us over the years.
The Group has experienced an eventful year with Hong Kong suffered under the grip of Coronavirus disease 2019 (“COVID-19”) for the 3rd year. With the surge of the fifth wave of Coronavirus disease 2019 (“COVID-19”) in Hong Kong during the year ended 31 March 2023, as certain staff and sites operatives were infected by the highly infectious Omicron, the progress of some of our construction projects have been slowed down due to staff/labour being quarantined causing temporary manpower shortage and downturn. Fortunately, the infected cases slowed down in the second half of the year, and the pandemic was under control.
During the year, the financial result had been adversely affected by some loss-making projects. The loss of these projects was due to the provision of the liquidated and ascertained damages for the estimated delay in the completion as a result of a) increment weather and tropical cyclone, b) unnecessary delay to progress as a result of the unreasonable alert alarm set by the relevant parties, and (c) other unforeseen difficulties uncontrollable by the Company. We are seeking for the extension of time in completing the project from the Employers, hoping that they know that we are using our best endeavor to cooperate with the relevant parties to solve all difficulties encountered, and understand our helpless situation.
Notwithstanding the above mentioned, we are pleased to say that in this financial year, we had been awarded 2 new contracts with an aggregate contract sum of HK$156.1 million as compared to 5 new contracts in the last financial year with an aggregate contract sum of HK$411.6 million.
Looking ahead, with the relaxing of the local anti-epidemic measures imposed on the citizens, and the promise of the increase of the land supply for the development of the infrastructures by the Government of the Hong Kong Special Administration Region (“HKSAR”), we are hopeful that the Hong Kong economy and the construction industry will be restored gradually. We will continue to adhere to our strategy of focusing on “design and build” projects to maintain the profit margin to safeguard our shareholders’ interests. We remain confident to remain resilient in the construction industry as we are well-positioned in the market.
On behalf of our board, I would like to express our sincere gratitude to our management team and all our staff for their hard work and dedication, as well as our shareholders, business partners and other professional parties for their continuous support.