Financial Performance - The Group recorded a revenue of HK$1,805,382,000 for 2024, a decrease of 1.4% from HK$1,830,186,000 in 2023[7]. - Gross profit for the year was HK$476,703,000, down 16.0% from HK$567,574,000 in 2023[7]. - Profit for the year decreased to HK$56,010,000, compared to HK$162,209,000 in 2023, primarily due to challenges with the new ERP system[7]. - Basic earnings per share fell to HK0.60 cents from HK1.74 cents in 2023, representing a decline of 65.5%[9]. - The return on equity for 2024 was 1.9%, down from 5.4% in 2023[9]. - Administrative expenses for the year were recorded at HK$296,300,000, a decrease from HK$311,185,000 in 2023, indicating improved cost management[38]. - The Group recorded a share of loss from an associate of HK$4,370,000 in 2024, compared to HK$4,112,000 in 2023, alongside a gain of HK$10,097,000 from deemed disposal of partial interest in an associate[37]. - The Group's total equity as of December 31, 2024, was HK$2,979,137,000, slightly down from HK$2,995,461,000 in 2023, with interest-bearing debts including lease liabilities of HK$288,591,000[44]. Operational Developments - The USA subsidiary's order deliveries in the second half of 2024 exceeded those of the same period last year, indicating recovery in production capacity[8]. - The Group successfully implemented a new ERP system in the USA subsidiary, which initially faced challenges but ultimately improved operational performance[18]. - The Group developed an expanded global supply chain network to enhance quality, optimize lead times, and improve cost efficiency amidst geopolitical challenges[26]. - The Group has established an expanded global supply chain network to mitigate geopolitical risks and enhance operational resilience[28]. - The Group is focused on expanding Prime and Titan engine production as part of its 2025 strategic initiatives to meet growing demand while maintaining high industry standards[66]. - The Group has implemented a World-Class Manufacturing (WCM) system to drive optimization, innovation, and efficiency[65]. Product Development - The Group's helicopter-specific CD-170R engine model certification application was submitted to EASA, with approval expected by June 2025, expanding product lines[25]. - The Group submitted a certification application for the CD-170R engine model to the European Union Aviation Safety Agency (EASA), expected to be approved by June 2025, marking a significant milestone in expanding the product line for the general aviation sector[27]. - The General Aviation market saw total aircraft deliveries valued at US$31.2 billion in 2024, a 13.3% increase over 2023, with piston airplane shipments up 4.2%[16]. - The Group is expanding new general aviation product segments and markets, holding several Supplemental Type Certificates (STCs) for retrofitting aircraft with FADEC-controlled Jet-A engines[61]. - The Group continues to offer a range of fuel-injected Prime IO-370 engine models, delivering 180 to 195 horsepower, and is committed to developing innovative technologies to enhance engine reliability[64]. Corporate Governance - The company emphasizes transparency, accountability, and responsibility to its shareholders as part of its corporate governance practices[93]. - The company complied with all code provisions of the "Corporate Governance Code" for the year ended December 31, 2024[94]. - The company has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers" to regulate directors' securities transactions[95]. - The Company has established a written guideline for securities transactions by relevant employees, with no incidences of non-compliance noted[101]. - The Company has a commitment to maintaining good standards of corporate governance practices[93]. - The Board consists of five executive Directors, one non-executive Director, and three independent non-executive Directors, all serving the full year ended December 31, 2024[103]. - The Company has adopted a board diversity policy, currently comprising one female and eight male Directors, aiming to improve gender diversity over time[110]. - The Company has established procedures for safeguarding assets and maintaining proper accounting records[172]. - The Company has developed and reviewed its corporate governance policies and practices during the year[118]. Board and Management - Mr. Huang Yongfeng has been appointed as the chairman of the company since April 1, 2022, and has extensive experience in financial management and mergers and acquisitions[72]. - Ms. Jiao Yan has served as the board secretary and general counsel of AVIC Innovation, bringing legal expertise to the executive team[74]. - Mr. Yu Xiaodong has been the Chief Executive Officer since April 1, 2022, with a strong background in international trade and human resources management[76]. - Mr. Zhang Zhibiao was appointed as an executive Director on April 3, 2023, and has over 25 years of experience in management and aviation business[78]. - Mr. Li Peiyin, appointed as an executive Director on April 1, 2022, has over 11 years of experience in corporate financial management and is currently the head of the finance department[80]. - The Company has established a clear division of responsibilities between the Chairman and the Chief Executive Officer[137]. - The Company has received annual confirmations of independence from all independent non-executive Directors, ensuring compliance with Listing Rules[138]. - The Company has entered into service agreements with certain Directors for a term of three years, while others have no specified length of service[139]. Risk Management and Compliance - The Board is responsible for monitoring the Company's compliance with legal and regulatory requirements[117]. - The internal audit section evaluated the effectiveness of the Group's risk management and internal control systems, with no material deficiencies identified during the year ended December 31, 2024[173]. - The Audit Committee reviews the adequacy and effectiveness of the Group's risk management and internal control systems[173]. - The Company has implemented a Corporate Disclosure Policy to handle and disseminate inside information[176]. - The Board confirms that systems are in place to identify, control, and report on significant risks involved in achieving the Company's strategic objectives[173]. Shareholder Engagement - The company emphasizes fair disclosure and transparent reporting to shareholders[194]. - Shareholders can propose resolutions at meetings if they represent at least 5% of voting rights or 100 shareholders[188]. - A requisition for a special meeting must be submitted at least six weeks prior if it requires a resolution notice[189]. - The company has established a communication policy to ensure effective engagement with shareholders[195]. - Shareholders can send inquiries to the Board through the Company Secretary at specified contact details[193]. - The company is committed to timely dissemination of information through various formal channels[198]. - Procedures for proposing a director for election are available on the company's website[192]. - The company regularly reviews its shareholders' communication policy for effectiveness[199].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 1,805,382, a decrease of 1.4% from HKD 1,830,186 in 2023[3] - Gross profit for the year was HKD 476,703, down 16.0% from HKD 567,574 in the previous year[3] - The net profit attributable to the company's owners for the year was HKD 56,010, a significant decline of 65.5% compared to HKD 162,209 in 2023[4] - Basic and diluted earnings per share decreased to HKD 0.60 from HKD 1.74 in the previous year, reflecting a 65.5% drop[4] - Total comprehensive income for the year was HKD 30,193, down 83.0% from HKD 176,570 in 2023[5] - The group reported a profit attributable to equity holders of HKD 56,010,000 in 2024, down from HKD 162,209,000 in 2023[21] - Net profit for the year was HKD 56,010,000, significantly lower than HKD 162,209,000 in 2023, primarily due to challenges faced during the implementation of a new ERP system[29] Assets and Liabilities - Non-current assets totaled HKD 2,168,485, a decrease from HKD 2,237,395 in 2023[6] - Current assets increased to HKD 1,785,810 from HKD 1,741,669 in the previous year, indicating a growth of 2.5%[6] - Total liabilities decreased slightly to HKD 1,496,158 from HKD 1,483,603 in 2023, reflecting a stable financial position[7] - Non-current assets totaled HKD 2,166,154,000 in 2024, a decrease from HKD 2,235,052,000 in 2023[13] - Current assets totaled HKD 1,785,810,000 as of December 31, 2024, compared to HKD 1,741,669,000 in 2023, with cash and cash equivalents at HKD 799,458,000[41] - The total equity value of the group was HKD 2,979,137,000 as of December 31, 2024, slightly down from HKD 2,995,461,000 in 2023[41] Revenue Sources - Revenue from external customers in 2024 was HKD 1,805,382,000, a decrease of 1.4% from HKD 1,830,186,000 in 2023[12] - Total revenue from contracts with customers was HKD 1,805,382,000, with sales of aircraft engines and parts at HKD 1,710,658,000 and service revenue at HKD 94,724,000[15] - Major customers contributing over 10% of total revenue included Customer A with HKD 450,650,000 (down from HKD 552,471,000), Customer B with HKD 371,248,000 (up from HKD 340,209,000), and Customer C with HKD 278,758,000 (down from HKD 322,694,000)[14] Costs and Expenses - The cost of goods sold for the year was HKD 1,274,542,000, an increase from HKD 1,205,791,000 in 2023[16] - The group recorded administrative expenses of HKD 296,300,000 for the year, a decrease from HKD 311,185,000 in the previous year[40] - The depreciation of property, plant, and equipment was HKD 42,229,000 in 2024, compared to HKD 36,286,000 in 2023[16] Operational Developments - The company successfully implemented a new ERP system in its US subsidiary, which initially faced challenges but ultimately improved operational efficiency[31] - The group has initiated the Moby project to enhance its global service and product support network, aiming for improved customer support and technical training[48] - The group is expanding its general aviation product segment by utilizing innovative technologies and advanced product development, including STC for engine conversions[49] - The group is committed to advancing towards World Class Manufacturing (WCM) to optimize processes and enhance operational efficiency[50] Governance and Compliance - The company has implemented and complied with all provisions of the corporate governance code as of December 31, 2024[52] - The audit committee has reviewed the group's full-year performance for the year ending December 31, 2024[57] Miscellaneous - The group recorded a loss of HKD 4,370,000 from associates during the year, compared to HKD 4,112,000 in 2023, along with a profit of HKD 10,097,000 from the partial sale of an associate[39] - There were no purchases, redemptions, or sales of the company's listed securities by the company or its subsidiaries during the year ending December 31, 2024[53] - There have been no significant events occurring after the year ending December 31, 2024, up to the date of this announcement[58] - The chairman expresses gratitude to all directors and staff for their significant contributions and dedication[61]

Financial Performance - The group recorded revenue of HKD 781,805,000 for the first half of 2024, a decrease of 15.8% compared to HKD 928,696,000 in 2023[4] - Gross profit for the first half of 2024 was HKD 200,851,000, down from HKD 296,325,000 in the same period last year[4] - The group reported a net profit of HKD 7,053,000, significantly lower than HKD 80,480,000 in 2023, primarily due to a loss of HKD 3,277,000 in the general aviation piston engine business[4] - Basic and diluted earnings per share were HKD 0.08, compared to HKD 0.87 in 2023[4] - The return on equity was 0.2%, down from 2.8% in the previous year[4] - For the six months ended June 30, 2024, the company reported revenue of HKD 781,805,000, a decrease of 15.8% compared to HKD 928,696,000 for the same period in 2023[39] - Gross profit for the same period was HKD 200,851,000, down 32.2% from HKD 296,325,000 year-over-year[39] - The pre-tax profit for the period was HKD 8,567,000, a significant decline of 75.5% compared to HKD 34,945,000 in the prior year[39] - Net profit attributable to equity holders of the company was HKD 7,053,000, down 91.2% from HKD 80,480,000 year-over-year[39] - The company reported a gross margin of 25.7%, down from 31.9% in the previous year[39] - Other comprehensive loss for the period was HKD (14,422,000), compared to a gain of HKD 3,601,000 in the previous year[41] Operational Challenges - The group faced significant supply chain challenges and increased operational costs, impacting revenue and gross profit[5] - The company incurred research and development costs of HKD 22,294,000, a decrease of 19.1% from HKD 27,522,000 in the previous year[39] - The company reported a profit from the sale of an associate of HKD (10,011,000) for the six months ended June 30, 2024, compared to no such profit in 2023[57] - The overall cash flow from operating activities was significantly impacted by the changes in working capital, leading to a net cash outflow[80] Assets and Liabilities - As of June 30, 2024, the group's current assets totaled HKD 1,682,058,000, a decrease from HKD 1,741,669,000 as of December 31, 2023[18] - The total equity of the group was HKD 2,941,575,000 as of June 30, 2024, down from HKD 2,995,461,000 as of December 31, 2023[18] - Total assets decreased to HKD 3,420,892,000 as of June 30, 2024, down from HKD 3,472,205,000 at the end of 2023[44] - Current liabilities decreased to HKD 474,786,000 from HKD 506,859,000 at the end of 2023[44] - The company’s total equity as of June 30, 2024, was HKD 2,941,575,000, down from HKD 2,995,461,000 at the end of 2023[44] - The company recognized a deferred tax asset of HKD 49,920,000 due to expected taxable profits from its U.S. subsidiary, Continental Aerospace Technologies Inc.[60] Investments and Innovations - The "Blue Marlin Project" for new North American facilities has been completed, and two new crankcase machining centers are in pre-production approval[8][9] - The group submitted the CD-170R engine model certification to the European Union Aviation Safety Agency (EASA), marking a significant innovation milestone[9] - A strategic partnership was announced with APUS Zero Emission GmbH to explore sustainable piston engine technology[10] - The group plans to leverage innovative technologies and products to expand into new general aviation product segments and markets[26] Shareholder Information - Major shareholders include 中航國際（香港）集團 with a 26.03% stake and Tacko International Limited with a 20.37% stake[32] - The company did not declare or propose any dividends for the six months ended June 30, 2024, while a final dividend of HKD 46,517,000 was approved by shareholders for the previous year[63] Cash Flow and Working Capital - Cash flow from operating activities showed a net outflow of HKD (141,253,000) compared to an inflow of HKD 60,650,000 in the same period last year[47] - Cash flow from investing activities resulted in a net inflow of HKD 51,118,000, a recovery from a net outflow of HKD (209,412,000) in the previous year[47] - Inventory increased by HKD 150,565,000 and trade receivables increased by HKD 21,043,000 during the reporting period, indicating a significant rise in working capital requirements[80] - The decrease in contract assets was HKD 16,756,000, while contract liabilities increased by HKD 46,928,000, reflecting changes in revenue recognition and customer advances[80] Compliance and Audit - The financial review was conducted in accordance with Hong Kong Accounting Standards, ensuring compliance with regulatory requirements[84] - The auditor did not find any issues that would lead to a belief that the interim financial data was not prepared in accordance with the relevant accounting standards[84]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 781,805,000, a decrease of 11.8% compared to HKD 928,696,000 for the same period in 2023[2] - Gross profit for the period was HKD 200,851,000, down from HKD 296,325,000, reflecting a gross margin decline[2] - The net profit attributable to the company's shareholders for the period was HKD 7,053,000, a significant decrease of 91.2% from HKD 80,480,000 in the previous year[3] - The total comprehensive income for the period was HKD (7,369,000), compared to HKD 84,081,000 in the same period last year, indicating a substantial loss in comprehensive income[3] - Basic and diluted earnings per share were HKD 0.08 for the first half of 2024, compared to HKD 0.87 in the same period of 2023[24] - The return on equity for the company was 0.2% for the first half of 2024, down from 2.8% in the same period of 2023[24] - Revenue from customer contracts was HKD 729,799,000 for the first half of 2024, compared to HKD 894,629,000 in the same period of 2023, indicating a decline in contract revenue[10] Assets and Liabilities - Non-current assets totaled HKD 2,213,620,000 as of June 30, 2024, a slight decrease from HKD 2,237,395,000 at the end of 2023[4] - Current assets decreased to HKD 1,682,058,000 from HKD 1,741,669,000, primarily due to a reduction in cash and cash equivalents[5] - Current liabilities were HKD 474,786,000, down from HKD 506,859,000, indicating improved short-term financial health[5] - The company's net asset value was HKD 2,941,575,000, a decrease from HKD 2,995,461,000 at the end of 2023[5] - As of June 30, 2024, the company's total current assets were HKD 1,682,058,000, with cash and cash equivalents totaling HKD 650,784,000[36] - The company's total equity value was HKD 2,941,575,000, with a debt-to-equity ratio of 8.9%[36] Inventory and Costs - The company reported a significant increase in inventory, rising to HKD 787,523,000 from HKD 645,985,000, reflecting potential challenges in sales[4] - The cost of goods sold was HKD 549,392,000 for the first half of 2024, down from HKD 602,272,000 in the same period of 2023[11] - The company incurred a loss of HKD 3,277,000 in the general aviation piston engine business for the first half of 2024, compared to a profit of HKD 78,978,000 in the same period of 2023[24] Operational Developments - The company faced significant challenges during the transition to a new NetSuite ERP system, impacting operational management and increasing costs[26] - The company announced the completion of the Bluefin project and the addition of two crankcase machining centers, currently undergoing pre-production approval[27] - The CD-170R engine model certification was submitted to the European Union Aviation Safety Agency (EASA), marking a significant milestone in innovation and potential market expansion[28] - A strategic partnership was announced with APUS Zero Emission GmbH to explore sustainable piston engine technology aimed at reducing the climate impact of general aviation[29] - The group will focus on product and service growth by leveraging innovative technologies and products, including reverse-engineered products from competitors and the supply chain[43] - The group continues to provide various fuel-injected Prime IO-370 engine models, with power ranging from 180 to 195 horsepower, and has received FAA STC certification for direct replacement options for selected Cessna 172 models[45] - The group is advancing towards a world-class manufacturing system, optimizing internal processes and new ERP systems to enhance efficiency and reduce costs[44] Governance and Compliance - The group is committed to transparency, accountability, and responsibility in corporate governance, adhering to all relevant codes during the reporting period[46] - The interim financial information for the six months ended June 30, 2024, has been reviewed by the audit committee and Ernst & Young[50] - There have been no significant acquisitions or disposals during the reporting period[39] - As of June 30, 2024, there are no significant contingent liabilities reported[41] - The group has not purchased, redeemed, or sold any of its listed securities during the reporting period, and there are no treasury shares as of June 30, 2024[47] Employee and Workforce - The group has a total of 600 employees as of June 30, 2024, an increase from 567 employees as of December 31, 2023[42] Dividends - The company did not declare any dividends for the first half of 2024, while a final dividend of HKD 46,517,000 was approved by shareholders for 2023[17]

Community Engagement - The Group engaged in 159 hours of volunteer work and contributed over US$8,000 to various community activities, including sponsoring sports events and supporting food banks[8]. - The Group's commitment to community investment focuses on supporting disadvantaged groups through various initiatives[31]. Employee Management - The employee turnover rate decreased to 11% in 2023 from 20% in 2022, showing improvements across gender and age groups[24]. - As of December 31, 2023, the Group had 567 employees, with total wages and salaries amounting to HK$241,520,000, an increase from HK$216,715,000 in 2022[95]. - In 2023, the total number of employees decreased to 378 from 390 in 2022, representing a reduction of approximately 3.08%[122]. - The number of full-time employees decreased from 380 in 2022 to 375 in 2023, a decline of approximately 1.32%[122]. - The Group maintains a diverse and inclusive working environment, believing that employees significantly impact product and service quality, and strives for long-term sustainable development[113][114]. - Employee development and engagement are prioritized, with a commitment to fostering a skilled and proactive workforce[129]. - The Group has comprehensive human resources management policies, regularly reviewing remuneration packages to ensure competitiveness and attract top talent[116]. - The Group's workforce includes 289 male employees and 89 female employees, with a gender ratio of approximately 76.3% male to 23.7% female[122]. Environmental Performance - The Group achieved over a 30% reduction in treatable wastewater during the reporting period, exceeding its annual target of a 1% reduction[33]. - The Group has set a target to reduce greenhouse gas emissions and is actively working on waste reduction initiatives[12]. - The Group aims to reduce treatable wastewater by 1% per year, achieving a 30% reduction during the reporting period[128]. - The Group has not experienced any major environmental accidents during the reporting period[40]. - The total consumption of packaging material used for finished products was 198.06 tonnes in 2023, up from 178.01 tonnes in 2022, reflecting an increase of 11.3%[38]. - The Group is committed to reducing total electricity consumption by 1% annually as part of its energy management strategy[60]. - In 2023, the total electricity consumption was 15.23 million kWh, an increase from 14.41 million kWh in 2022, representing a growth of 5.7%[35]. - Fuel oil consumption decreased significantly from 2,621.76 million kWh in 2022 to 923.79 million kWh in 2023, a reduction of 64.8%[35]. - Total energy consumption for 2023 was 10,075.61 million kWh, down from 12,192.41 million kWh in 2022, indicating a decrease of 17.4%[35]. - Water consumption increased to 41,105.22 cubic meters in 2023 from 30,760.00 cubic meters in 2022, marking a rise of 33.4%[35]. Governance and Compliance - There were no legal cases regarding corrupt practices against the Group or its employees during the reporting period[31]. - The Group has established an internal integrity system and an audit committee to enhance governance practices and prevent misconduct[3]. - The Group has established effective whistle-blowing procedures to report misconduct while ensuring confidentiality for employees[4]. - The Group has no significant contingent liabilities as of December 31, 2023, maintaining compliance with all relevant laws and regulations throughout 2023[99][100]. - The company emphasizes transparency, accountability, and responsibility in its corporate governance practices[164]. - For the year ended December 31, 2023, the company complied with all code provisions of the Corporate Governance Code[165]. - The company has a commitment to regularly review and improve its corporate governance practices[163]. - All Directors confirmed compliance with the required standards set out in the Model Code throughout the year ended December 31, 2023[168]. - The company has established written guidelines for employees regarding securities transactions to prevent insider trading[168]. - The company has independent non-executive Directors with diverse backgrounds and extensive experience in various industries[153][157]. - The Company has adopted a board diversity policy to maintain competitive advantage, currently comprising one female and eight male Directors[188]. - The Company has implemented and complied with all provisions of the Corporate Governance Code as of December 31, 2023[179]. - The Nomination Committee evaluates candidates for Director appointments and submits recommendations to the Board for approval[187]. - The Company emphasizes transparency, accountability, and responsibility to maintain good corporate governance practices[179]. - The Board is responsible for the overall strategy of the Group and monitoring its financial performance[190]. Financial Performance - As of December 31, 2023, the Group's current assets amounted to HK$1,741,669,000, an increase from HK$1,509,210,000 in 2022[80]. - The Group's total equity as of December 31, 2023, was HK$2,995,461,000, compared to HK$2,818,891,000 in 2022, reflecting a growth in equity[80]. - The Group recorded administrative expenses of HK$311,185,000 in 2023, up from HK$293,665,000 in 2022, indicating a rise in operational costs[78]. - The Group's gearing ratio decreased to 8.8% in 2023 from 9.4% in 2022, showing improved capital structure[80]. - The Group recorded a share of loss from an associate of HK$4,112,000 in 2023, down from HK$8,390,000 in 2022, indicating improved performance[78]. - No material acquisitions or disposals occurred during the current year, maintaining a stable operational focus[82]. Operational Efficiency - The successful implementation of the new ERP system transitioned from the outdated Macola system to Oracle NetSuite, enhancing operational efficiency[73]. - The company achieved a record delivery volume in 2023, reflecting the success of the Bluefin Tuna project aimed at improving manufacturing efficiency[53]. - The Blue Marlin project was completed, improving manufacturing efficiency and achieving the highest delivery volumes in 2023[68]. - The time between replacements for the CD-170 and CD-300 engines increased from 1,200 hours to 1,800 hours and 2,000 hours respectively, enhancing customer value[54]. - The Group will leverage innovative technology and data analytics to enhance operational efficiency and reduce costs[124]. - The Group plans to fully implement World Class Manufacturing (WCM) practices in all factories by 2024, aiming for the highest standards of efficiency, quality, and innovation[105][107]. - The Group will focus on expanding its global service network and introducing innovative solutions to capture new market segments and drive revenue growth[109]. Leadership and Management - Mr. Huang Yongfeng has been the chairman of the company since April 1, 2022, and has extensive experience in financial management and mergers and acquisitions[133]. - Mr. Li Peiyin, appointed as an executive director on April 1, 2022, has over 11 years of experience in corporate financial management and is currently the head of the finance department[139]. - Mr. Zhang Zhibiao, appointed as an executive director on April 3, 2023, has over 25 years of experience in management, aviation business, and strategic development[137]. - Mr. Yu Xiaodong has been appointed as the Chief Executive Officer since April 1, 2022, and has extensive experience in international trade and project management[148]. - The company is focused on expanding its operations in the aviation manufacturing and operation sectors, leveraging the expertise of its executive team[133]. - The diverse experience of the board members in various industries supports the company's strategic initiatives and operational efficiency[139]. - The executive team has a strong educational background, with degrees from prestigious institutions such as Peking University and Nankai University[135][137]. - The company aims to enhance its market position through strategic acquisitions and partnerships in the aviation sector[133]. Future Outlook - The Group anticipates a modest contraction in real GDP of approximately 0.5% between the first and third quarters of 2024, which would be the smallest contraction among the 12 post-World War II economic recessions[96][104]. - The Group plans to strategically expand market share and target untapped opportunities in 2024, focusing on integrating cutting-edge technologies[131].

智通财经APP获悉，大陆航空科技控股(00232)涨近5%，截止发稿涨4.92%，报0.128港元，成交额323万港元。 消息面上，4月18日，大陆航空科技(Continental)，大陆航空科技控股有限公司的子公司，在德国自豪地宣布推出其最新的CD-170R航空煤油活塞发动机。基于数十年的创新，大陆航空科技将其CD-100系列进行了不断的扩展，本次推出的CD-170R将其扩展到旋翼飞行器的应用平台。目前，大陆航空科技已向欧洲航空安全局(EASA)提交了发动机认证文件，并预计于今年晚些时候获得认证。 据悉，公司截至2023年12月31日止年度业绩，该集团期内取得收益18.3亿港元，同比增加9.89%;公司拥有人应占溢利1.62亿港元，同比增加219.11%;每股基本盈利1.74港仙;拟派发末期股息每股0.5港仙。公告称，截至2023年12月31日止年度的溢利大幅增加乃主要由于公司一间美国附属公司于2023年度开始产生应课税溢利，对其过往年度所得税损失确认了递延所得税项抵免;及2022年的溢利包括其他无形资产减值。 ...

Financial Performance - The company's total revenue for the year ended December 31, 2023, was HKD 1,830,186,000, an increase from HKD 1,665,515,000 in 2022, representing a growth of approximately 9.9%[28] - Gross profit for the year was HKD 567,574,000, compared to HKD 508,488,000 in the previous year, indicating a year-over-year increase of about 11.6%[28] - The company reported a profit attributable to owners of the company of HKD 162,209,000 for the year, significantly up from HKD 50,832,000 in 2022, marking an increase of approximately 219.5%[29] - The company’s pre-tax profit for the year was HKD 90,703,000, compared to HKD 27,265,000 in the previous year, reflecting a substantial increase of about 233.5%[29] - The company’s total comprehensive income for the year was HKD 176,570,000, compared to HKD 34,430,000 in 2022, representing an increase of about 413.5%[18] - The company reported a basic earnings per share of 1.74 HK cents for the year ending December 31, 2023, compared to 0.55 HK cents in 2022, reflecting a significant increase[57] Equity and Liabilities - The total equity of the company as of December 31, 2023, was HKD 2,995,461,000, up from HKD 2,818,891,000 in 2022, representing an increase of approximately 6.3%[20] - The total liabilities decreased from HKD 1,888,554,000 in 2022 to HKD 2,065,124,000 in 2023, indicating a reduction of approximately 9.5%[20] - The total liabilities increased from HKD 422,783 thousand in 2022 to HKD 506,859 thousand in 2023, reflecting a rise of about 19.9%[36] - The net asset value improved from HKD 2,818,891 thousand in 2022 to HKD 2,995,461 thousand in 2023, an increase of approximately 6.3%[36] - The company’s debt-to-equity ratio improved to 8.8% in 2023 from 9.4% in 2022, indicating a stronger capital structure[93] Assets - Current assets increased from HKD 1,509,210 thousand in 2022 to HKD 1,741,669 thousand in 2023, representing a growth of about 15.4%[36] - The net current assets rose from HKD 1,086,427 thousand in 2022 to HKD 1,234,810 thousand in 2023, an increase of approximately 13.6%[36] - The total non-current assets decreased from HKD 2,290,638 thousand in 2022 to HKD 2,237,395 thousand in 2023, a decline of approximately 2.3%[36] - As of December 31, 2023, the company's current assets amounted to HKD 1,741,669,000, an increase from HKD 1,509,210,000 in 2022, with cash and bank deposits totaling HKD 875,280,000[118] - Other intangible assets as of December 31, 2023, were valued at HKD 1,340,863,000, a decrease from HKD 1,387,327,000 in 2022[115] Expenses - The company’s research and development expenses for the year were HKD 311,185,000, compared to HKD 293,665,000 in 2022, showing an increase of about 6%[28] - The company recorded administrative expenses of HKD 311,185,000 for the year, up from HKD 293,665,000 in 2022[118] - The cost of goods sold increased from HKD 1,085,381 thousand in 2022 to HKD 1,205,791 thousand in 2023, an increase of approximately 11%[49] Market Performance - The revenue from the US market increased from HKD 1,376,844 thousand in 2022 to HKD 1,473,262 thousand in 2023, a growth of about 7%[42] - The company achieved a record delivery volume in its Alabama facilities in 2023, marking a significant milestone in manufacturing efficiency[60] - The company is focused on expanding its global service network to meet evolving customer needs and preferences, driving revenue growth through innovative solutions[125] Corporate Governance and Strategy - The company emphasizes transparency, accountability, and responsibility to maintain good corporate governance practices[128] - The company plans to enhance market penetration and explore emerging regional markets through strategic partnerships with new OEMs[100] - The company aims to fully implement World-Class Manufacturing (WCM) practices across all factories by 2024, focusing on efficiency, quality, and innovation[124] - The company plans to strategically expand its market share in 2024, targeting untapped opportunities and integrating cutting-edge technology to enhance operations[127] Shareholder Information - The company plans to suspend share transfer registration from May 28, 2024, to May 31, 2024, to determine the rights of shareholders attending the annual general meeting[5] - The company proposed a final dividend of 0.5 HK cents per ordinary share, which is a new introduction compared to no dividend in the previous year[56] Other Income and Gains - The company’s net other income and gains for the year were HKD 43,554,000, compared to HKD 21,924,000 in the previous year, indicating a significant increase of approximately 98.5%[28] - The company reported a total of 36,511 thousand HKD in other income, significantly higher than 13,630 thousand HKD in the previous year[68] - The company recognized a deferred tax asset of 81,255 thousand HKD due to expected taxable profits from its U.S. subsidiary, Continental Aerospace Technologies Inc.[75] Workforce - The company’s workforce increased to 567 employees in 2023 from 534 in 2022, with total employee compensation rising to HKD 241,520,000 from HKD 216,715,000[98] Joint Ventures - The company reported a profit of HKD 6,515 thousand from the sale of a joint venture in 2023[47] - The company reported a loss from joint ventures of HKD 4,112,000 for the year, an improvement from HKD 8,390,000 in 2022[117] Technology and Innovation - The company has successfully implemented a new ERP system, transitioning from the outdated Macola system to the renowned Oracle NetSuite system, enhancing overall efficiency and scalability[112] - The company is committed to sustainable aviation fuel applications and has completed testing for hydrogenated plant oil as a sustainable fuel option for its CD-100 series engines[112] Credit Risk - The accounts receivable from a major customer accounted for 40% of total trade receivables in 2023, up from 35% in 2022, indicating increased credit concentration risk[54]

Financial Performance - The company recorded revenue of HKD 928,696,000 for the first half of 2023, an increase of 8.8% compared to HKD 853,449,000 in the same period of 2022[3]. - Gross profit for the first half of 2023 was HKD 296,325,000, up from HKD 239,132,000 in the first half of 2022, reflecting a gross margin improvement[3]. - The net profit for the period was HKD 80,480,000, compared to HKD 58,350,000 in the previous year, indicating a year-on-year growth of 37.9%[3]. - The piston engine business contributed HKD 78,978,000 to the net profit, significantly up from HKD 56,640,000 in the same period last year[3]. - For the six months ended June 30, 2023, the group reported a profit before tax of HKD 34,945,000, a decrease of 30.3% from HKD 50,625,000 in the same period of 2022[83]. - The company recorded a net profit attributable to equity holders of HKD 80,480,000, representing a 37.9% increase from HKD 58,350,000 in the previous year[169]. - The pre-tax profit for the six months ended June 30, 2023, was HKD 80,480,000, representing a 37.9% increase from HKD 58,350,000 in the same period of 2022[184]. Operational Highlights - Aircraft deliveries in the general aviation sector increased by 10.1% year-on-year, reaching 294 units[6]. - The company is excited about the upcoming completion of the bluefin tuna project, which will enhance manufacturing capabilities and reduce delivery times[16]. - The CD series engines have accumulated a total flight time of 10 million hours, showcasing operational cost savings and performance advantages for owners and operators[17]. - The company is focused on leveraging new manufacturing advantages to produce FAA-approved parts, enhancing its competitive position in the market[16]. - The company is excited about the future of its CD300 engine, which has received FAA certification and will power Diamond Aircraft's DA50 RG aircraft[131]. - The company is testing hydrogenated vegetable oil (HVO) as a sustainable fuel option for its CD100 series engines, emphasizing its commitment to reducing carbon emissions[132]. - The company announced that its GTSIO-520-S engine will be used by Tecnam for their short takeoff and landing aircraft, indicating a strategic partnership and market expansion[158]. Financial Position - The company's net asset value increased to HKD 2,902,972,000 as of June 30, 2023, compared to HKD 2,818,891,000 at the end of 2022[59]. - The company's total equity as of June 30, 2023, was HKD 2,902,972,000, an increase from HKD 2,818,891,000 at the end of 2022[126]. - The company's interest-bearing debt to total equity ratio was 9.1% as of June 30, 2023, down from 9.4% at the end of 2022[126]. - The total current liabilities as of June 30, 2023, amounted to HKD 502,002,000, an increase from HKD 422,783,000 at the end of 2022[59]. - The company's cash and cash equivalents stood at HKD 424,878,000 as of June 30, 2023, down from HKD 578,903,000 at the end of 2022[170]. - The company's current assets as of June 30, 2023, were HKD 1,651,136,000, an increase from HKD 1,509,210,000 at the end of 2022[152]. Cash Flow and Investments - The company reported a net cash flow from operating activities of HKD 60,650,000 for the six months ended June 30, 2023, compared to HKD 149,204,000 for the same period in 2022[62]. - The company reported a decrease in cash flow used in investing activities to HKD (209,412,000) for the first half of 2023, compared to HKD (315,028,000) in the same period of 2022[62]. - The group invested HKD 31,322,000 in property, plant, and equipment during the six months ended June 30, 2023, compared to HKD 18,389,000 in the same period of 2022, reflecting an increase of 70.5%[90]. - The group’s cash and cash equivalents decreased significantly, with a net cash generated from operating activities of HKD 79,138,000, down from HKD 162,518,000 in the previous year[84]. Expenses and Liabilities - Administrative expenses for the period were HKD 152,938,000, compared to HKD 145,567,000 in the previous year, reflecting a 5.3% increase[9]. - The cost of sales for inventory increased to HKD 602,272,000 in the first half of 2023, up from HKD 584,015,000 in the same period of 2022[69]. - The company recognized a product recall provision of HKD 54,810,000 in the first half of 2023, with no such provision in the same period of 2022[69]. - The company's operating expenses, including sales and marketing, administrative, and R&D costs, totaled HKD 213,978,000 for the first half of 2023, compared to HKD 193,310,000 in the previous year[168]. Market Outlook - The company anticipates global GDP growth to slow to 2.4% in 2024, with increased economic uncertainty due to inflation and tightening monetary policies[14]. - Global GDP growth is projected at 2.7% for 2023, down from 3.3% in 2022, reflecting economic resilience despite tightening monetary policies[147]. Shareholder Information - The company has complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules during the reporting period[196]. - The company has not granted, exercised, lapsed, or cancelled any share options under the share option scheme since its adoption[193]. - The company's major shareholders include Tacko International Limited with 20.37% and AVIC International Holdings with 46.40% of the issued share capital as of June 30, 2023[194].

[Financial and Business Highlights](index=1&type=section&id=Financial%20and%20Business%20Highlights) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2023, the Group reported **HKD 929 million** in revenue, an 8.8% increase, and **HKD 80.48 million** in profit, up 37.9%, primarily due to deferred tax credits from a US subsidiary's taxable profits, with basic EPS rising to **HK 0.87 cents** Key Financial Indicators for H1 2023 | Indicator | For the six months ended June 30, 2023 (HKD) | For the six months ended June 30, 2022 (HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 928,696,000 | 853,449,000 | +8.8% | | Gross Profit | 296,325,000 | 239,132,000 | +23.9% | | Profit for the Period | 80,480,000 | 58,350,000 | +37.9% | | Basic Earnings Per Share | 0.87 HK cents | 0.63 HK cents | +38.1% | - Profit growth was primarily due to a US subsidiary beginning to generate taxable profits during the period, leading to the recognition of **deferred income tax credits** related to prior years' tax losses[79](index=79&type=chunk)[22](index=22&type=chunk) - During the period, **HKD 54.81 million** in costs from product recalls were recognized under "Other operating expenses," impacting profit[21](index=21&type=chunk)[37](index=37&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue for the period increased to **HKD 929 million** from **HKD 853 million** in the prior year, and despite **HKD 54.81 million** in additional operating expenses, profit for the period rose from **HKD 58.35 million** to **HKD 80.48 million** due to income tax credits Profit or Loss Statement Summary (HKD thousands) | Item | H1 2023 (Unaudited) | H1 2022 (Unaudited) | | :--- | :--- | :--- | | Revenue | 928,696 | 853,449 | | Gross Profit | 296,325 | 239,132 | | Other Operating Expenses | (54,810) | – | | Profit Before Tax | 34,945 | 50,625 | | Income Tax Credit | 45,535 | 7,725 | | Profit for the Period | 80,480 | 58,350 | [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period significantly increased to **HKD 84.1 million** from **HKD 44.5 million** in the prior year, primarily due to higher profit and exchange gains from foreign operations translation Total Comprehensive Income (HKD thousands) | Item | H1 2023 (Unaudited) | H1 2022 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period | 80,480 | 58,350 | | Exchange Differences Arising from Translation of Foreign Operations | 3,601 | (21,401) | | Total Comprehensive Income Attributable to Equity Holders of the Company for the Period | 84,081 | 44,545 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's net assets increased to **HKD 2.903 billion**, with total assets at **HKD 3.910 billion** and net current assets at **HKD 1.149 billion**, reflecting a robust financial position and slight increases in cash, trade receivables, and inventories compared to year-end 2022 Financial Position Statement Summary (HKD thousands) | Item | June 30, 2023 (Unaudited) | December 31, 2022 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 2,259,037 | 2,290,638 | | Total Current Assets | 1,651,136 | 1,509,210 | | **Total Assets** | **3,910,173** | **3,799,848** | | Total Current Liabilities | 502,002 | 422,783 | | Total Non-current Liabilities | 505,199 | 558,174 | | **Total Liabilities** | **1,007,201** | **980,957** | | **Net Assets** | **2,902,972** | **2,818,891** | | Total Equity | 2,902,972 | 2,818,891 | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) These interim financial statements are prepared under HKAS 34 and incorporate new HKFRSs, with Pillar Two Model Rules amendments impacting disclosures but not materially affecting the Group's financial position - The interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and is unaudited[41](index=41&type=chunk) - Several new and revised standards have been adopted, none of which have a significant financial impact except for amendments to HKAS 12[11](index=11&type=chunk)[18](index=18&type=chunk) - The Group has retrospectively applied amendments related to international tax reform (Pillar Two Model Rules) and is assessing its exposure to Pillar Two income tax[43](index=43&type=chunk) [Operating Segments and Revenue](index=6&type=section&id=Operating%20Segments%20and%20Revenue) The Group operates solely in the general aviation aircraft piston engine business, with total revenue of **HKD 929 million** for the period, predominantly from aircraft engine and spare parts sales, and the United States as the primary market, contributing over 80% of revenue - The Group has only one reportable operating segment: the design, development, production, and after-sales service of general aviation aircraft piston engines and spare parts[20](index=20&type=chunk)[33](index=33&type=chunk) Revenue by Type and Region (HKD thousands) | Revenue Classification | H1 2023 | H1 2022 | | :--- | :--- | :--- | | **By Type** | | | | Sales of Aircraft Engines and Spare Parts | 894,629 | 810,151 | | Provision of Services | 34,067 | 43,298 | | **Total** | **928,696** | **853,449** | | **By Region** | | | | United States | 747,421 | 690,834 | | Europe | 112,383 | 106,583 | | Others | 68,892 | 56,032 | | **Total** | **928,696** | **853,449** | [Income Tax and EPS](index=7&type=section&id=Income%20Tax%20and%20EPS) The period recorded an income tax credit of **HKD 45.54 million**, primarily due to deferred tax asset recognition from a US subsidiary's taxable profits, resulting in basic EPS of **HK 0.87 cents**, up from **HK 0.63 cents** in the prior year - As a US subsidiary began generating taxable profits, the Group recognized **HKD 49.92 million** in deferred tax assets, leading to an income tax credit of **HKD 45.54 million** for the period[22](index=22&type=chunk) Earnings Per Share Calculation | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders (HKD thousands) | 80,480 | 58,350 | | Number of Ordinary Shares in Issue | 9,303,374,783 | 9,303,374,783 | | Basic Earnings Per Share (HK cents) | 0.87 | 0.63 | [Dividends](index=8&type=section&id=Dividends) For the six months ended June 30, 2023, the company neither paid, declared, nor proposed any dividends - The company neither paid, declared, nor proposed any dividends for the six months ended June 30, 2023 (2022: Nil)[26](index=26&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=10&type=section&id=Business%20Review) In H1 2023, the general aviation manufacturing industry showed unexpected resilience, with piston engine deliveries growing **10.1%** year-on-year, indicating strong demand that drove the Group's robust shipments, revenue, and gross profit growth - The General Aviation Manufacturers Association (GAMA) reported a **10.1%** year-on-year increase in piston engine deliveries compared to H1 2022, indicating strong industry demand[80](index=80&type=chunk) - Benefiting from the strong performance of the general aviation industry, the Group's shipments were also robust compared to H1 2022 and the annual operating plan[80](index=80&type=chunk) - The Group's aviation gasoline piston engines have re-attracted interest from contract manufacturing partners, such as Tecnam Aircraft selecting the GTSIO-520-S engine[89](index=89&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) The Group maintains sufficient working capital and a robust capital structure, with total cash and bank balances reaching **HKD 850 million** at period-end, and a gearing ratio slightly decreased from **9.4%** to **9.1%**, indicating low financial risk and minimal foreign exchange exposure - The Group maintains sufficient working capital, with total cash, bank balances, and time deposits amounting to **HKD 850 million** as of June 30, 2023[59](index=59&type=chunk) - The gearing ratio, calculated as interest-bearing debt as a percentage of total equity plus interest-bearing debt, was **9.1%** (December 31, 2022: **9.4%**), indicating a low level[60](index=60&type=chunk) - As of June 30, 2023, the Group had **564 employees**, an increase of **30** from year-end 2022, with employee wages and salaries for the period totaling **HKD 136 million**[64](index=64&type=chunk) [Outlook](index=13&type=section&id=Outlook) The Group maintains a healthy order book extending into 2024, focusing on enhancing production capacity and technological innovation through completing the "Bluefin Project" in Mobile, USA, promoting the FAA-certified CD300 jet fuel engine, and continuing R&D in sustainable aviation fuels like HVO to solidify market leadership - The order book remains healthy and extends into **2024**[66](index=66&type=chunk) - The "Bluefin Project" for the advanced manufacturing facility in Mobile, Alabama, USA, is nearing completion, which will enhance production capacity and shorten delivery times[66](index=66&type=chunk) - The CD300 jet fuel piston engine has received its FAA validation type certificate, making it available for use by pilots in the United States[67](index=67&type=chunk) - The Group is completing testing of hydrotreated vegetable oil (HVO) as a sustainable fuel option for the CD100 series engines, committed to reducing carbon emissions[90](index=90&type=chunk) [Corporate Governance and Other Information](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance](index=14&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards, having complied with all code provisions of the Listing Rules' Corporate Governance Code during the period, with directors also adhering to the standard code for securities transactions - For the six months ended June 30, 2023, the company has implemented and complied with all code provisions of the Corporate Governance Code[70](index=70&type=chunk) - All directors have confirmed compliance with the company's adopted standard code for securities transactions during the period[94](index=94&type=chunk) [Audit Committee and Review of Interim Results](index=14&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The company has established an Audit Committee comprising three independent non-executive directors, which, along with Ernst & Young, has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2023 - The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal control systems[72](index=72&type=chunk) - The unaudited interim financial information for the period has been reviewed by both the Audit Committee and the independent auditor, Ernst & Young[3](index=3&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=14&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities - Neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities during the period[71](index=71&type=chunk)

Financial Performance - The Group recorded a revenue of HK$1,665,515,000 in 2022, representing a 17.6% increase from HK$1,416,409,000 in 2021[3] - Gross profit for the year was HK$508,488,000, up from HK$322,651,000 in 2021, indicating a significant improvement in profitability[3] - The profit for the year was HK$50,832,000, a turnaround from a loss of HK$55,972,000 in 2021, primarily driven by the general aviation aircraft piston engine business[3] - Basic earnings per share increased to HK ￠0.55 in 2022, compared to a loss of HK ￠0.60 in 2021[3] - The return on equity improved to 1.8% in 2022, up from -2% in the previous year[3] - The general aviation aircraft piston engine business recognized a revenue of HK$1,665,515,000 and a profit of HK$60,874,000 in 2022, compared to a loss of HK$48,108,000 in 2021[3] - The Group recorded a revenue growth of 17.6% in 2022 compared to the previous year, with significant improvements in operating profit and cash flow[20] Assets and Liabilities - As of December 31, 2022, the Group's current assets were HK$1,509,210,000, an increase of 17.0% from HK$1,290,759,000 in 2021[12] - The Group's total equity as of December 31, 2022, amounted to HK$2,818,891,000, up from HK$2,784,461,000 in 2021, reflecting a growth of 1.2%[12] - The Group's interest-bearing debts, including lease liabilities, were HK$294,099,000, a decrease of 5.4% from HK$311,018,000 in 2021[12] - The Group's gearing ratio improved to 9.4% in 2022 from 10.0% in 2021, indicating a stronger capital structure[12] - Other intangible assets decreased to HK$1,387,327,000 in 2022 from HK$1,564,078,000 in 2021[10] - An impairment loss of HK$101,142,000 was recognized for development programs in progress during the year ended 31 December 2022[10] Economic Environment - The global economic environment faced challenges, with the International Monetary Fund projecting GDP growth to slow from 6% in 2021 to 3.4% in 2022, alongside rising inflation[8] - The International Monetary Fund projected global GDP growth to slow from 3.4% in 2022 to 2.9% in 2023, indicating potential market challenges ahead[24] - The global economic outlook remains uncertain due to high inflation and geopolitical tensions, impacting the General Aviation industry[43] Operational Efficiency - In 2022, the Group improved engine delivery lead time from 87 days to 35 days and has a solid aftermarket spare parts backlog to be fulfilled by Q4 2023[29] - The Group completed 90% of new equipment installation (28 of 31) and 61% (19 of 31) started producing, with full production capacity expected by the end of Q2 2023[29] - The Group achieved a time between replacement (TBR) increase for the CD300 engine to 2,000 hours and for the CD170 engine to 1,800 hours in 2022[30] - The operating profit and cash flow for 2022 reached historical highs, despite challenges from inflation, the Russia-Ukraine conflict, and rising energy costs[51] Corporate Governance - The Company is committed to maintaining good standards of corporate governance practices by emphasising transparency, accountability, and responsibility to its shareholders[93] - The Company has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers" as its code of conduct regarding Directors' securities transactions[83] - The Board currently comprises five executive Directors, one non-executive Director, and three independent non-executive Directors, with 8 out of 9 Directors serving the full year[85] - The Company has established a written guideline for securities transactions by relevant employees, ensuring no incidence of non-compliance was noted[98] - The Company emphasizes the importance of good corporate governance to promote its success and direct its affairs effectively[100] - The Company will periodically review and improve its corporate governance practices with reference to the latest developments in corporate governance[96] Management and Board Composition - Mr. Zhao Yang resigned as CEO on April 1, 2022, and as an executive director on April 3, 2023, after serving since August 2019[66] - Mr. Li Peiyin has been appointed as an executive director since April 1, 2022, with over 11 years of experience in corporate financial management[68] - Mr. Zhang Zhibiao was appointed as an executive director on April 3, 2023, and has over 25 years of experience in management and strategic development[69] - The company has a diverse board with members holding degrees from prestigious institutions such as Harvard University and Nankai University, enhancing its governance and strategic oversight[72] - The management team has extensive experience in various sectors, including finance, project management, and architectural design, contributing to the company's operational effectiveness[72] Employee and Training Initiatives - As of December 31, 2022, the group had a total of 534 employees, an increase from 510 employees in 2021[44] - Employee salaries and wages amounted to HKD 209,678,000 in 2022, compared to HKD 208,768,000 in 2021[44] - The Group's commitment to employee training and improving operational environments is aimed at achieving continuous progress[189] ESG and Sustainability - The Group has been integrating environmental protection concepts into its operations, focusing on cleaner production and sustainable development[22] - The Group's ESG report outlines its development and performance in 2022, addressing stakeholder expectations for sustainable development[187] - The Group emphasizes the importance of reducing emissions and resource usage to enhance its brand image and business sustainability[189] - The Group's ESG strategies will adapt to challenges posed by global economic slowdowns and high energy and raw material prices[193] - The Board regularly reviews strategies and plans to ensure alignment with stakeholder expectations regarding ESG disclosures[188] Shareholder Communication - The Company is committed to fair disclosure and effective communication with shareholders through various formal channels, including interim and annual reports[182] - The Company has established a shareholders' communication policy to enhance transparency and engagement with shareholders[182] Audit and Risk Management - The internal audit section evaluated the effectiveness and adequacy of the Group's risk management and internal control systems, with no material deficiencies identified during the year ended December 31, 2022[163] - The Board confirmed that the Group's risk management and internal control systems were adequate and effective, complying with the provisions of the CG Code[164] - The Audit Committee met four times during 2022 to assess the external auditor's ability and review interim and annual results, ensuring effective financial reporting and risk management[135]