v3.25.2
Equity Method Investments
 12 Months Ended
Mar. 31, 2025
Equity Method Investments [Abstract]  
Equity Method Investments

6. Equity Method Investments

 

On November 13, 2019, the Company entered into a Joint Venture Agreement with Glory E&C Limited, a Hong Kong company, and formed a joint venture, Kin Chiu-Glory Joint Venture (“KC-Glory JV”) to execute the construction project (Contract No. ND/2019/06). On November 25, 2020, the Company entered into a Joint Venture Agreement with Geotech Engineering Limited, a Hong Kong company, and formed a joint venture, Kin Chiu-Geotech Joint Venture (“KC-Geotech JV”) to execute the construction project (Contract No. TW/2019/01). On August 29, 2020, the Company entered into a Joint Venture Agreement with China Railway First Group Co., Ltd, a Hong Kong company, and formed a joint venture, Kin Chiu-China Railway First Group Joint Venture (“KC-CRFG JV”) to execute several government construction projects.

 

The Company’s exposure to loss is limited to its investment in each joint venture. As of March 31, 2025, the Company has no additional capital commitments or guarantees related to these ventures.

 

No dividends or capital contributions were made or received during the years ended March 31, 2025, 2024 or 2023.

 

Equity Method Accounting Treatment

 

The Company’s 51% ownership of KC-Glory JV, 51% ownership of KC-Geotech JV and 35% ownership of KC-CRFG JV allowed the Company to have joint control over the operations and decision-making at joint ventures. Accordingly, the Company accounted for the transaction under the equity method and recorded the carrying value of the Company’s investment in joint ventures’ common shares at cost, including the transaction costs incurred to obtain the equity method investment, in the consolidated balance sheets.

The following table provides summarized balance sheet and income statement information for Joint Ventures:

 

   KC-Glory JV   KC-Geotech JV   KC-CRFG JV   Total 
   As of March 31, 2025 
Current assets  $1,748,391   $247,932   $1,188,208   $3,184,531 
Non-current assets   
-
    
-
    
-
    
-
 
Current liabilities   1,436,946    271,864    370,751    2,079,561 
Non-current liabilities   
-
    
-
    
-
    
-
 
Equity (Deficit)  $311,445   $(23,932)  $817,457   $1,104,970 

 

   Year ended March 31, 2025 
Total revenues  $
-
   $641   $4,828,815   $4,829,456 
Net (loss)/profit  $(64)  $7,168   $5,443   $12,547 

 

   KC-Glory JV   KC-Geotech JV   KC-CRFG JV   Total 
   As of March 31, 2024 
Current assets  $1,738,383   $308,899   $1,360,265   $3,407,547 
Non-current assets   
-
    
-
    
-
    
-
 
Current liabilities   1,428,665    339,831    552,929    2,321,425 
Non-current liabilities   
-
    
-
    
-
    
-
 
Equity (Deficit)  $309,718   $(30,932)  $807,336   $1,086,122 

 

   Year ended March 31, 2024 
Total revenues  $338,797   $2,372,250   $7,070,849   $9,781,896 
Net loss  $(174)  $(68,814)  $4,011   $(64,977)

 

The following table summarizes the activity of the Company’s equity method investment in joint ventures:

 

   Total 
Balance at March 31, 2023  $1,340,257 
Company’s share in net loss recognized during the year   (33,780)
Exchange difference   4,533 
Balance at March 31, 2024   1,311,010 
Company’s share in net profit recognized during the year   5,528 
Exchange difference   7,591 
Balance at March 31, 2025  $1,324,129