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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Continental Aerospace Technologies Holding Limited 大陸航空科技控股有限公司 (於百慕達註冊成立之有限公司) 232 （股份代號： ） 截至二零二二年十二月三十一日止年度之全年業績公告 大陸航空科技控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）宣佈，本公司 及其附屬公司（「本集團」）截至二零二二年十二月三十一日止年度之綜合業績連同二 零二一年之比較數字。 綜合損益表 二零二二年 二零二一年 附註 千港元 千港元 （經重列） 4 1,665,515 1,416,409 收益 (1,157,027) (1,093,758) 銷售及服務成本 508,488 322,651 毛利 4 13,630 63,350 其他收入 4 (5,954) 4,337 預期信貸虧損模型下之減值虧損，扣除撥回 4 7,979 1,966 ...

Financial Performance - The group recorded revenue of HKD 853,449,000 for the first half of 2022, representing a 17.0% increase compared to HKD 729,318,000 in 2021[8] - Gross profit for the same period was HKD 240,089,000, up from HKD 213,311,000 in 2021[8] - The net profit for the period was HKD 58,350,000, significantly higher than HKD 27,059,000 in 2021, primarily driven by the piston engine business[8] - Basic earnings per share increased to HKD 0.63 from HKD 0.29 in the previous year[8] - The return on equity for the company was 2%, compared to 1% in 2021[8] - For the six months ended June 30, 2022, the company reported revenue of HKD 853,449,000, an increase of 19.5% from HKD 729,318,000 in the same period of 2021[43] - The company achieved a profit attributable to owners of HKD 58,350,000, compared to HKD 27,059,000 in the prior year, representing a growth of 115.5%[43] - Basic earnings per share increased to HKD 0.63 from HKD 0.29, marking a significant rise of 117.2%[43] Business Segments - The piston engine business confirmed revenue of HKD 853,449,000 and a profit of HKD 56,640,000, up from HKD 15,350,000 in 2021[9] - The adjusted profit before tax for the aircraft piston engine business was HKD 47,179,000, significantly up from HKD 11,245,000 in the previous year, representing a growth of 319.5%[64] - The total revenue from customer contracts, including sales of aircraft engines and parts, was HKD 810,151,000 for the six months ended June 30, 2022, compared to HKD 674,588,000 in the previous year, marking an increase of 20.1%[65] Research and Development - The company plans to significantly increase its R&D budget in 2023 to support multiple global projects, including fuel improvement initiatives[27] - Research and development costs rose to HKD 13,995,000, compared to HKD 6,317,000 in the previous year, indicating a focus on innovation[43] Operational Efficiency - The company completed over 65% of the pre-production approval process for the Bluefin project, enhancing production capacity[11] - The implementation of a new ERP system is expected to be completed by Q2 2023, aimed at enhancing manufacturing processes and operational costs[27] - The company anticipates a 60% reduction in delivery times for major aircraft models due to the implementation of a kanban system[27] - The company has expanded the capacity of the Titan/Prime product line, reducing delivery times by 50%[27] - The company has sufficient orders to be delivered into 2023, focusing on improving internal efficiency and shortening delivery times[26] Financial Position - As of June 30, 2022, the group's current assets amounted to HKD 1,404,290,000, an increase from HKD 1,290,759,000 as of December 31, 2021[18] - The total equity of the group was HKD 2,829,006,000 as of June 30, 2022, compared to HKD 2,784,461,000 as of December 31, 2021[19] - The group maintained a debt-to-equity ratio of 10% as of June 30, 2022, consistent with the previous period[19] - Total non-current assets as of June 30, 2022, were valued at HKD 2,419,243,000, a slight decrease from HKD 2,472,499,000 at the end of 2021[47] - Current assets decreased to HKD 459,781,000 from HKD 492,972,000, reflecting changes in inventory and receivables[47] - Total current liabilities rose to HKD 416,768 thousand as of June 30, 2022, up from HKD 390,863 thousand at the end of 2021, indicating an increase of about 6.6%[49] - Non-current liabilities decreased to HKD 577,759 thousand as of June 30, 2022, from HKD 587,934 thousand at the end of 2021, showing a decline of about 1.9%[49] - The total assets less current liabilities amounted to HKD 3,406,765 thousand as of June 30, 2022, compared to HKD 3,372,395 thousand at the end of 2021, indicating an increase of about 1%[49] Cash Flow - The company reported a net cash outflow from investing activities of HKD 315,028 thousand for the six months ended June 30, 2022, compared to HKD 15,204 thousand in the same period of 2021[55] - Net cash flow from operating activities for the six months ended June 30, 2022, was HKD 149,204 thousand, a significant improvement from a net cash outflow of HKD 15,636 thousand in the same period of 2021[55] - The company’s cash flow from financing activities showed a net outflow of HKD 2,288 thousand for the six months ended June 30, 2022, compared to a net outflow of HKD 199,654 thousand in the same period of 2021[55] Compliance and Governance - The company has maintained compliance with corporate governance codes and continues to review its practices regularly[37][38] - The review of the interim financial statements was conducted according to the Hong Kong Institute of Certified Public Accountants' standards, specifically HKSA 2410[99] - The auditor did not find any matters that would lead to a belief that the financial statements were not prepared in accordance with HKAS 34[100] Employee and Management - The company reported a total employee count of 532 as of June 30, 2022, up from 510 as of December 31, 2021[25] - Management compensation totaled HKD 930,000 for the six months ended June 30, 2022, compared to HKD 648,000 in the previous year, indicating a significant increase[91] Accounts Receivable and Payable - The accounts receivable as of June 30, 2022, amounted to HKD 162,014,000, up from HKD 123,190,000 as of December 31, 2021, representing a rise of 31.5%[78] - 37% of the accounts receivable is concentrated from a major customer, down from 50% in the previous year[79] - Accounts payable as of June 30, 2022, totaled HKD 136,431,000, slightly up from HKD 133,422,000 as of December 31, 2021, indicating a 2% increase[84]

Financial Performance - The Group recorded revenue of HK$1,416,409,000 in 2021, a 13.6% increase from HK$1,246,809,000 in 2020[5] - Gross profit for the year was HK$348,409,000, up from HK$182,199,000 in 2020[5] - The loss for the year decreased to HK$55,972,000 from HK$756,738,000 in 2020, primarily due to market recovery and reduced impairment of goodwill[5] - Basic loss per share improved to HK¢0.60 from HK¢8.13 in 2020[5] - The general aviation aircraft piston engine business recorded a loss of HK$48,108,000, significantly reduced from HK$749,196,000 in the previous year[8] - The market for new aircraft with general aviation piston engines increased by 5.5% year-on-year in 2021[9] - The number of orders for the general aviation aircraft piston engine business exceeded the previous year, indicating strong demand[10] - The piston engine business experienced a 13.6% year-on-year increase in sales revenue for the full year 2021, surpassing the previous year's order volume[11] Cost Management - The Company implemented several pricing increases in 2021 to mitigate inflationary cost pressures[10] - The company implemented several price increases in 2021 to protect profit margins amid rising inflationary cost pressures[11] Production and Capacity - The modernization program at the Blue Marlin factory in Mobile, Alabama, has successfully completed production preparations, with primary product processes expected to be fully operational by early 2023[12][14] - The new factory is anticipated to significantly increase production capacity while ensuring a competitive cost base, thereby improving profit margins[12][14] Assets and Liabilities - As of December 31, 2021, the Group's other intangible assets amounted to HK$1,564,078,000, down from HK$1,657,066,000 in 2020[19] - An impairment of other intangible assets of HK$6,428,000 was recognized for the year ending December 31, 2021, compared to HK$85,274,000 in 2020[19] - The Group's current assets were HK$1,290,759,000, a decrease of 16.9% from HK$1,553,030,000 in 2020[23] - The Group's current liabilities as of December 31, 2021, were HK$390,863,000, down 36.0% from HK$612,235,000 in 2020[23] - The total equity of the Group as of December 31, 2021, was HK$2,784,461,000, a decrease of 2.2% from HK$2,846,140,000 in 2020[23] - The Group's interest-bearing debts included bank borrowings of HK$Nil, down from HK$252,902,000 in 2020, and lease liabilities of HK$311,018,000, slightly down from HK$314,897,000 in 2020[23] Human Resources - As of December 31, 2021, the Group employed 510 staff, a decrease from 560 in 2020, with total wages and salaries amounting to HK$208,768,000, down from HK$233,668,000 in 2020[29] Innovation and Development - The Company launched a new OEM application platform and streamlined the Jet-A product portfolio, focusing on adding value to newer products and technologies[33] - The global R&D team is actively developing multiple projects in the Avgas and Jet-A product lines[35] - The company plans to simplify its product offerings and lean processes to enhance market share and customer satisfaction[35] Corporate Governance - The company emphasizes transparency, accountability, and responsibility to its shareholders to maintain good corporate governance practices[67] - For the year ended December 31, 2021, the company complied with all code provisions of the Corporate Governance Code[69] - The Board consists of five executive directors, one non-executive director, and three independent non-executive directors, with 7 out of 9 directors serving the full year[80] - All directors confirmed compliance with the Model Code for securities transactions throughout the year ended December 31, 2021[77] - The company has established written guidelines for securities transactions by relevant employees, with no incidents of non-compliance noted[78] - The Nomination Committee evaluates candidates for director appointments and submits recommendations to the Board[85] - Directors are subject to retirement by rotation, with one-third of the directors retiring at each annual general meeting[84] - The company will periodically review and improve its corporate governance practices[72] - The independent non-executive directors possess appropriate professional qualifications as prescribed by the Listing Rules[80] - The company has adopted the Model Code as its code of conduct regarding directors' securities transactions[73] - The Company has adopted a board diversity policy to maintain a competitive advantage by considering factors such as talents, skills, and gender[89] - The Board is responsible for formulating the overall strategy of the Group and monitoring its financial performance[91] - During the year ended December 31, 2021, the Company held ten Board meetings[101] - The Company reviewed its corporate governance policies and practices during the year[95] - The Board monitored the effectiveness of the risk management and internal control systems through the Audit Committee[96] - The Company arranged appropriate insurance cover for its Directors and officers against legal actions[99] - All Directors have access to the advice and services of the company secretary to ensure compliance with applicable rules and regulations[100] - The attendance record of Directors at Board meetings shows full participation, with some Directors attending all ten meetings[108] - The Company has set measurable objectives to implement its board diversity policy and will review progress towards these objectives[90] - The Company performed corporate governance duties under the CG Code during the year[95] - The company had a comprehensive training program for newly appointed directors to ensure awareness of their responsibilities under various regulations[111] - All directors participated in continuous professional development, receiving training in reading materials, updates, and attending seminars[112] Remuneration and Audit - The Remuneration Committee held three meetings in 2021 to review and recommend the remuneration packages for all directors[125] - The primary goal of the executive remuneration policy is to retain and motivate executive directors by linking compensation to performance against corporate objectives[126] - The Audit Committee met four times in 2021 to assess the external auditor's ability and review financial reporting processes and internal control systems[133] - The company has established a clear division of responsibilities between the chairman and the chief executive officer[117] - The company received annual confirmations of independence from its independent non-executive directors, ensuring compliance with Listing Rules[121] - The remuneration details for senior management indicate one individual received between HK$1,000,000 and HK$1,500,000[132] - The chairman and CEO roles are held by Mr. Huang Yongfeng and Mr. Yu Xiaodong, respectively, starting from April 1, 2022[115] - The company emphasizes the importance of non-executive directors in providing checks and balances to safeguard shareholder interests[121] - The Audit Committee held four meetings in 2021 to evaluate the effectiveness of the external auditor and review the Group's interim and annual performance reports[134] - The auditors, Deloitte Touche Tohmatsu, received HK$3,745,000 for audit services and HK$1,192,000 for non-audit services for the year ended December 31, 2021[145] - The Nomination Committee conducted three meetings in 2021 to review the structure and composition of the Board and assess the independence of non-executive Directors[139] Risk Management - The Company has adopted Hong Kong Financial Reporting Standards and prepared financial statements on a going concern basis[146] - The Board is responsible for the Group's risk management and internal control systems, which are designed to provide reasonable assurance against material misstatement and fraud[157] - The Company has timely announced and published its financial results in accordance with the Listing Rules[147] - The Nomination Committee emphasizes the importance of diversity in selecting candidates for the Board, considering factors such as gender, race, and experience[141] - The Audit Committee is tasked with reviewing the effectiveness of the Group's internal audit function and risk management systems[134] - The Company aims to enhance shareholder value through the commitment of its Board members to provide practical insights and good judgment[143] - The financial statements are prepared to reflect a true and fair view of the Group's state of affairs and results for the relevant financial period[146] - The Group's internal audit section evaluated the effectiveness and adequacy of the risk management and internal control systems, reporting no material deficiencies identified during the year ended December 31, 2021[159] - 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[159] - The internal audit section adopted an integrated risk assessment approach for the evaluation, with the review report presented to the Audit Committee and the Board in March 2022[160] Corporate Communication - The Company has implemented a Corporate Disclosure Policy to handle and disseminate inside information[161] - The updated memorandum of association and bye-laws of the Company were posted on the Company's website, with no changes during the year 2021[165] - Shareholders holding not less than one-tenth of the paid-up capital can requisition a special general meeting[167] - The requisition must state the purposes of the meeting and be signed by the requisitionists, deposited at the Registered Office[169] - The Company is committed to fair disclosure and effective communication with shareholders through various formal channels[182] - A shareholders' communication policy has been established and is subject to regular review to ensure effectiveness[183] - The Company Secretary is responsible for directing shareholder enquiries to the Board and has complied with all qualification and training requirements under the Listing Rules[162] - The company emphasizes effective communication with shareholders through various formal channels, including interim reports, annual reports, announcements, and circulars[186] - The 2021 annual general meeting was held on May 21, 2021, where separate resolutions were proposed for each issue, including the re-election of retiring directors, and voting was conducted by poll[192] Environmental, Social, and Governance (ESG) - The Board of Directors is committed to sustainable development and social responsibility, focusing on emission reduction, resource management, and occupational safety[196] - The company has established working groups within its primary operating units to set ESG goals and regularly review the effectiveness of these plans[197] - ESG-related risk management is critical to the Board, which has incorporated relevant risks into its risk management and internal control systems[200] - The company aims to enhance its corporate brand image and promote community development through its ESG initiatives[196] - The Board will actively participate in training to stay updated on ESG issues and may invite relevant experts to board meetings[197] - The company has a shareholder communication policy that is regularly reviewed to ensure its effectiveness[187] - The company announced the results of the poll at the annual general meeting in accordance with the Listing Rules[192] - The company prioritizes products that safeguard customers' health and safety, focusing on quality control and environmental risks in the supply chain[200]

Financial Performance - For the first half of 2021, the group recorded revenue of HKD 729,318,000, a 12% increase from HKD 651,410,000 in 2020[8] - Gross profit for the same period was HKD 213,311,000, up from HKD 175,634,000 in 2020[8] - The group achieved a profit of HKD 27,059,000, compared to a loss of HKD 395,852,000 in the previous year[8] - The basic earnings per share were HKD 0.29, a significant improvement from a loss of HKD 0.0425 per share in 2020[8] - The return on equity was 1% for the period, compared to -12% in 2020[8] - The company reported a pre-tax profit of HKD 24,405,000, compared to a pre-tax loss of HKD 406,698,000 in the previous year[50] - The adjusted profit before tax for the company was HKD 24,405 thousand for the six months ended June 30, 2021, compared to a loss of HKD 406,698 thousand in the same period of 2020[76] Business Segments - The general aviation piston engine business reported a profit of HKD 15,350,000, recovering from a loss of HKD 391,280,000 in 2020[10] - The company achieved a profit of HKD 11,245 thousand in its general aviation piston engine business for the first half of 2021, a significant recovery from a loss of HKD 402,395 thousand in the same period of 2020[76] - Revenue from customer contracts, including sales of aircraft engines and parts, amounted to HKD 674,588 thousand, with service provision revenue of HKD 54,730 thousand, totaling HKD 729,318 thousand[77] Operational Changes - The company plans to adjust its operational strategies in response to inflation and supply chain challenges, including raising product prices to enhance profitability[11] - The modernization project at the Mobile, Alabama facility has seen approximately 65% of personnel and 75% of equipment relocated, with a completion target in Q1 2022[13] Financial Position - Current assets were HKD 1,403,872,000 as of June 30, 2021, down from HKD 1,553,030,000 as of December 31, 2020, a decrease of approximately 9.6%[20] - Total equity increased to HKD 2,879,392,000 as of June 30, 2021, from HKD 2,846,140,000 as of December 31, 2020, an increase of about 1.2%[22] - The interest-bearing debt decreased significantly to HKD 371,782,000 as of June 30, 2021, from HKD 566,799,000 as of December 31, 2020, a reduction of approximately 34.4%[22] - The capital debt ratio was 11% as of June 30, 2021, down from 17% as of December 31, 2020, indicating improved financial stability[22] Expenses and Costs - Administrative expenses increased to HKD 162,086,000 for the period, compared to HKD 149,661,000 in 2020, representing an increase of about 8.9%[19] - Research and development expenses decreased to HKD 6,317,000 from HKD 19,896,000, reflecting a focus on cost management[50] - The cost of sales for inventory was HKD 478,127 thousand for the first half of 2021, compared to HKD 436,866 thousand in the same period of 2020[80] Cash Flow and Assets - Cash and cash equivalents decreased from HKD 914,072,000 to HKD 687,781,000, a decline of around 25%[61] - Operating cash flow showed a net outflow of HKD 15,636,000 compared to a larger outflow of HKD 35,481,000 in the previous year, indicating an improvement[61] - Non-current assets decreased from HKD 481,329,000 to HKD 466,741,000, a decline of approximately 3.8%[52] Governance and Compliance - The company maintained compliance with all corporate governance codes as of June 30, 2021[45] - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial results[48] - The company plans to regularly review and improve its corporate governance practices in line with the latest developments[46] Shareholder Returns - The group did not declare an interim dividend for the six months ended June 30, 2021, compared to no dividend declared in 2020[90] Employee Information - The company employed 541 staff as of June 30, 2021, a decrease from 560 employees as of December 31, 2020[28] - Employee salaries and wages for the period totaled HKD 107,565,000, compared to HKD 96,833,000 in 2020, reflecting an increase of approximately 11%[28] Future Outlook - The company anticipates challenges and opportunities in the second half of 2021, with ongoing projects expected to drive future growth[29]

Financial Performance - The Group recorded revenue of HK$1,246,809,000 in 2020, a decrease of 14% from HK$1,458,003,000 in 2019[6] - Gross profit for the year was HK$182,199,000, down from HK$376,523,000 in 2019[6] - The Group reported a loss of HK$756,738,000 for the year, compared to a loss of HK$54,016,000 in 2019, primarily due to the COVID-19 pandemic[6] - Basic loss per share amounted to HK¢ 8.13, compared to HK¢ 0.58 in 2019[6] - Impairment of goodwill and other intangible assets was HK$471,044,000, with no impairment recorded in 2019[8] - Selling and distribution expenses increased from HK$90,768,000 to HK$127,077,000, largely due to a warranty provision related to product recalls[8] - The Group recorded share of losses from joint ventures and associates totaling HK$1,191,000, a significant decrease from HK$38,689,000 in 2019[23] - As of December 31, 2020, the Group's current assets were HK$1,553,030,000, down from HK$1,654,279,000 in 2019, while current liabilities increased to HK$612,235,000 from HK$527,355,000[24] - The Group's total equity decreased to HK$2,846,140,000 from HK$3,573,694,000 in 2019, with interest-bearing debts rising to HK$567,799,000 from HK$545,771,000[24] - The Group's gearing ratio increased to 17% in 2020 from 13% in 2019, indicating a higher level of debt relative to equity[24] Market Conditions - The global piston airplane market decreased by 10.9% in 2020 compared to the same period in 2019[9] - The USA and global GDP decreased by 4.3% and 4.2%, respectively, due to the pandemic[9] Operational Developments - The new manufacturing plant in Mobile, Alabama, is expected to significantly increase production capacity and reduce production costs, with major production lines ready for operation in 2021[14] - The advanced manufacturing facility in Mobile, Alabama, has transferred approximately 37% of personnel, 61% of equipment, and 19% of processing centers, with full production expected to be ready in 2021[18] - The company successfully stimulated sales through marketing campaigns despite challenges from the pandemic and supply chain issues[12] Human Resources - Employee wages and salaries for the year ended December 31, 2020, amounted to HK$233,668,000, down from HK$293,581,000 in 2019, with a total of 560 employees compared to 650 in the previous year[33][36] Corporate Governance - The company is committed to maintaining good corporate governance practices, emphasizing transparency, accountability, and responsibility to shareholders[67] - For the year ended December 31, 2020, the company complied with all code provisions of the Corporate Governance Code, except for specific terms of appointment for two independent non-executive Directors[68] - The Board currently comprises five executive Directors, one non-executive Director, and three independent non-executive Directors, all of whom served the full year for the year ended December 31, 2020[79] - The company has established a written guideline for securities transactions by relevant employees, ensuring no incidents of non-compliance were noted[77] - The Nomination Committee evaluates candidates for Director appointments and submits recommendations to the Board for approval[83] - The company will periodically review and improve its corporate governance practices based on the latest developments[69] - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2020[76] - The company emphasizes the importance of Directors notifying the chief executive officer before dealing in the company's securities[75] - The retiring Directors are eligible for re-election, ensuring a rotation system is in place[82] - The company has a senior management team with over 25 years of experience in accounting and finance, enhancing its operational capabilities[65] Risk Management - The Company has established a robust framework for risk management and compliance, ensuring sustainable operations[60] - The Board is responsible for overseeing the preparation of financial statements that accurately reflect the Group's business conditions, performance, and cash flow[147] - The internal audit section evaluated the effectiveness and adequacy of the Group's risk management and internal control systems, reporting no material deficiencies identified during the year ended December 31, 2020[151] - The Group's risk management and internal control systems were deemed adequate and effective, complying with the provisions of the CG Code[151] - The Company has engaged an independent internal control consultant to conduct evaluations on its internal control systems[151] Environmental, Social, and Governance (ESG) - The Group's environmental, social, and governance (ESG) report covers the fiscal year 2020, aligning with the annual report period from January 1 to December 31, 2020[188] - The ESG report focuses on the general aviation piston engine business in the United States, which represents the majority of the Group's environmental and social impacts[188] - The Group is committed to creating long-term value for stakeholders while driving business growth and sustainable development[189] - The Group's sustainable development policies encompass activities related to environment, employment, business integrity, and society[189] - The Group aims to enhance transparency and responsibility in information disclosure through its ESG guidelines[189] - The Group's ESG report is released annually for public review, reflecting its commitment to sustainable development[189] - The Group's policies and measures on environmental, social, and governance issues are detailed in the ESG report, increasing public confidence[187] - The Group's communication with stakeholders is designed to provide a clear understanding of its sustainability progress and development direction[187] - The Group's ESG report is based on the materiality principle, ensuring relevant issues are addressed[188] - The Group strives to incorporate sustainable development principles into its governance and practices[189] - The Board is responsible for reviewing and assessing the Group's environmental, social, and governance risks to contribute to sustainability[194] - The report is prepared in accordance with the Environmental, Social and Governance (ESG) Reporting Guide as per the Listing Rules[196] - The report emphasizes the importance of materiality, stating that ESG issues must be reported when they significantly impact investors and stakeholders[196] - Key Performance Indicators (KPIs) are presented in the report to measure the effectiveness of ESG policies and management systems[196] - The report aims to provide a balanced view of the issuer's performance, avoiding any misleading selections or omissions[196] - Consistency in methodologies is highlighted to allow for meaningful comparisons of ESG data over time[196]