Financial Performance - The group reported a revenue of HKD 6,472,335,000 for the six months ended June 30, 2024, representing an increase from HKD 5,973,534,000 in the same period last year, which is a growth of approximately 8.4%[2] - The gross profit for the period was HKD 527,328,000, down from HKD 677,305,000 in the previous year, indicating a decrease of about 22.1%[2] - The profit attributable to the owners of the company was HKD 148,198,000, a decline from HKD 250,252,000 year-on-year, reflecting a decrease of approximately 40.7%[2] - Basic earnings per share decreased to HKD 11.9 from HKD 20.2, representing a decline of about 41.1%[2] - The total comprehensive income for the period was HKD 136,308,000, down from HKD 228,889,000 in the previous year, a decrease of approximately 40.4%[3] - The pre-tax profit for the six months ended June 30, 2024, was HKD 167,888, compared to HKD 329,486 for the same period in 2023, showing a decline of approximately 49%[17] - Investment and other income for the six months ended June 30, 2024, was HKD 10,930, compared to HKD 13,684 for the same period in 2023, indicating a decrease of approximately 20%[15] - The financial costs for the six months ended June 30, 2024, were HKD 11,908, down from HKD 15,386 in the same period of 2023, reflecting a reduction of about 22.5%[16] - The income tax expense for the six months ended June 30, 2024, was HKD 22,253, significantly lower than HKD 82,527 for the same period in 2023, a decrease of about 73%[18] Assets and Liabilities - Non-current assets amounted to HKD 885,039,000 as of June 30, 2024, a significant decrease from HKD 1,692,454,000 at the end of the previous year[4] - Current liabilities decreased to HKD 5,225,107,000 from HKD 5,500,139,000, indicating a reduction of about 5%[6] - The total equity attributable to the owners of the company increased to HKD 2,416,867,000 from HKD 2,376,470,000, reflecting a growth of approximately 1.7%[6] - The group’s cash and cash equivalents stood at HKD 1,131,248,000, down from HKD 1,299,649,000, indicating a decrease of about 13%[4] - Trade receivables as of June 30, 2024, amounted to HKD 529,696, down 12.4% from HKD 604,478 at the end of 2023[25] - Contract assets as of June 30, 2024, were HKD 3,450,491, a decrease of 5.7% from HKD 3,658,732 at the end of 2023[27] - Trade payables as of June 30, 2024, totaled HKD 285,838, a decrease of 32.2% from HKD 421,512 at the end of 2023[30] - The total interest-bearing borrowings decreased to HKD 178,000,000 from HKD 238,000,000, representing a reduction of 25.3%[40] - The total equity as of June 30, 2024, was HKD 2,439,000,000, up from HKD 2,402,000,000, reflecting a growth of 1.5%[42] - The capital debt ratio decreased to 7% from 10% as of December 31, 2023, indicating improved financial stability[42] Dividends - The company declared an interim dividend of HKD 0.03 per share[2] - The interim dividend declared on August 22, 2024, is HKD 0.03 per share, totaling approximately HKD 37,256,000, down from HKD 49,675,000 in the same period last year[22] - The interim dividend for the year ended December 31, 2023, was approved at HKD 0.08 per share, totaling approximately HKD 99,000,000[42] Operational Highlights - The segment profit for Hong Kong was HKD 206,636, while the segment loss for China was HKD 13,906, resulting in a total segment profit of HKD 192,730 for the six months ended June 30, 2024[12] - The company’s total segment revenue from construction contracts was HKD 6,363,753 for Hong Kong and HKD 108,582 for China, contributing to the overall revenue growth[10][12] - The company reported an increase in unbilled revenue from construction contracts, totaling HKD 2,621,307 as of June 30, 2024[27] - The company achieved new construction contract values of approximately HKD 8,200,000,000 since the beginning of the year[34] - The average steam supply from the company's four operational steam plants increased by 15% to 91 tons per hour, compared to 79 tons per hour in the previous year[36] Employee and Costs - Employee costs totaled HKD 939,000,000 for the period, compared to HKD 832,000,000 in the previous year, with the workforce increasing to 3,693 employees[39] Other Financial Matters - The company recognized a loss of HKD 42,730 from other losses for the six months ended June 30, 2024, compared to no losses reported in the same period of 2023[15] - The company expects to incur a loss of HKD 36,000,000 related to the termination of a land-sharing transaction in Hong Kong[37] - The fair value of a financial asset related to a joint venture project in Shenzhen was estimated at HKD 772,000,000, with a fair value gain of HKD 37,000,000 recorded for the period[38] - The company has made full provisions for the recoverability of a deposit of RMB 34,000,000 related to a terminated joint venture in Texas, reflecting ongoing legal proceedings[38] - As of June 30, 2024, the group's liquid assets amounted to HKD 1,950,000,000, an increase of 40.3% from HKD 1,390,000,000 on December 31, 2023[40] - The group has pledged bank deposits of HKD 82,000,000 to secure bank financing, an increase from HKD 70,000,000 as of December 31, 2023[43] - The group did not engage in any securities transactions involving the purchase, sale, or redemption of its listed securities during the six months ended June 30, 2024[47] - The company has adhered to the corporate governance code as per the listing rules, except for the separation of roles between the chairman and CEO[44]

Financial Performance - The group's revenue for 2023 was HKD 12.5 billion, a slight increase of approximately 1% compared to 2022, with profit rising from HKD 429 million to HKD 467 million due to successful project progress[1] - The company's revenue for the year ended December 31, 2023, was HKD 12.5 billion, slightly up from HKD 12.4 billion in 2022[36] - Total revenue from construction contracts amounted to HKD 12,300,000,000 for the year ending December 31, 2023, slightly up from HKD 12,200,000,000 in 2022[50] - The total revenue for the group was HKD 12.507 billion, with a profit attributable to shareholders of HKD 474 million[122] - The civil engineering segment generated a turnover of HKD 7.7 billion, representing an approximate 3% increase from 2022, with a gross profit of HKD 1.051 billion[123] Project Development - The group secured new engineering projects worth HKD 10.5 billion since the last report, with a total of HKD 28.6 billion in unfinished projects, indicating over two years of work ahead[1] - New civil engineering projects totaled HKD 4 billion in 2023, showing improvement from 2022 but still insufficient, with expectations for a busy bidding environment in 2024[4] - The group has 33 ongoing civil engineering projects, with most operating normally, while a few face challenges that are being addressed[123] Profitability and Losses - The group experienced a loss of HKD 300 million in revenue and profit due to a negative change in the Construction Price Factor (CPF), which had previously increased by about 2% annually but turned negative in 2023[1] - The group incurred an investment loss of HKD 123 million due to changes in fair value, indicating a significantly poorer performance in investments compared to engineering[2] - The CPF index is expected to continue declining, which will significantly impact the company's profits in the short term[17] - Gross profit increased to HKD 1.3 billion from HKD 1 billion year-on-year, attributed to profits from a civil engineering project[36] - Net profit attributable to shareholders rose to HKD 474 million, compared to HKD 434 million in the previous year, driven by a gross profit increase of HKD 326 million[36] Employee and Operational Changes - The number of employees increased from 3,390 in 2022 to 3,601 in 2023, with over 180 non-local employees hired to address high operational costs in Hong Kong[18] - Employee compensation increased to HKD 1,706,000,000 for the year ending December 31, 2023, up from HKD 1,560,000,000 in 2022, reflecting increased administrative expenses[44] - The group recorded an increase in administrative expenses of HKD 108 million and a fair value loss on financial assets of HKD 67 million[36] Investment and Financial Position - The group invested HKD 800 million in a property project in Shenzhen, facing a provision for a loss of HKD 65 million due to market downturns and currency depreciation[16] - As of December 31, 2023, the group had interest-bearing borrowings totaling HKD 238 million, a decrease of 24% from HKD 313 million as of December 31, 2022[66] - The total equity as of December 31, 2023, was HKD 2,402 million, up 13% from HKD 2,126 million as of December 31, 2022[66] - The capital debt ratio as of December 31, 2023, was 10%, down from 15% as of December 31, 2022[66] Corporate Governance and Board Structure - The company’s board consists of 11 directors, including 5 executive directors, 2 non-executive directors, and 4 independent non-executive directors[167] - The board aims to maintain at least 20% female representation among its members, with current female members accounting for nearly one-fifth of the board[194] - The company has implemented a board diversity policy to ensure a balanced mix of skills and experiences, considering factors such as gender, age, and cultural background[192] - The audit committee, consisting of four independent non-executive directors, is responsible for reviewing financial statements and overseeing risk management and internal controls[195][196] Future Outlook and Strategic Plans - The company expects a reasonable profit in 2024, although it may be lower than in 2023 due to a more challenging operating environment[30] - The company estimates that the local construction industry will continue to thrive over the next seven to eight years, although maintaining current profit levels is uncertain[30] - The company is exploring new strategies for market expansion and product development in response to evolving industry demands[82] - The group plans to reduce unnecessary regulatory personnel through the effective implementation of CDE, enhancing operational efficiency[132] Dividend and Shareholder Returns - The company plans to distribute approximately 30% of its profits as dividends, proposing a final dividend of HKD 0.08 per share[31] - The proposed final dividend is HKD 0.08 per share, totaling HKD 0.12 per share for the year, down from HKD 0.105 in 2022[117]

Financial Performance - The group's revenue for the year ended December 31, 2023, was HKD 12,500,000,000, slightly up from HKD 12,400,000,000 in 2022, indicating a growth of approximately 0.8%[10] - Gross profit increased to HKD 1,300,000,000 for the year ended December 31, 2023, compared to HKD 1,000,000,000 in the previous year, reflecting a growth of 30%[12] - Shareholders' profit attributable to the company was HKD 474,000,000, up from HKD 434,000,000 in 2022, representing an increase of about 9.2%[12] - The company's total revenue for the year ended December 31, 2023, was HKD 12,507,000,000, representing an increase from the previous year's revenue[33] - Profit attributable to the company's owners for the year was HKD 474,000,000, compared to HKD 434,327,000 in 2022, reflecting a growth of approximately 9.1%[33][23] - The basic earnings per share for the year was HKD 0.38, up from HKD 0.35 in the previous year[23] - Net profit for the year was HKD 467,449, a rise of 8.9% from HKD 429,166 in 2022[38] - Basic earnings per share increased to HKD 38.1, up from HKD 35.0 in the previous year, reflecting a growth of 8.9%[36] - Profit before tax increased to HKD 641,000, representing a growth of 16.3% compared to HKD 551,470 in 2022[36] Revenue Sources - Total construction contract revenue for the year was HKD 12,300,000,000, up from HKD 12,200,000,000 in 2022, showing a growth of approximately 0.8%[16] - Revenue from domestic environmental infrastructure projects reached HKD 217,000,000, up from HKD 202,000,000 in 2022, with a reduction in segment loss to HKD 15,000,000 from HKD 24,000,000[27] - Revenue from construction contracts in Hong Kong was HKD 12,290,182,000, compared to HKD 12,220,379,000 in the previous year, showing an increase of about 0.57%[62] - The company reported operational revenue from sewage treatment plants in China amounting to HKD 51,333,000, a slight decrease from HKD 51,819,000 in the previous year[62] - Steam fuel plant operations generated revenue of HKD 161,171,000 in China, up from HKD 127,939,000, indicating a significant increase of approximately 26%[62] Expenses and Losses - Employee compensation rose to HKD 1,706,000,000 in 2023 from HKD 1,560,000,000 in 2022, reflecting an increase of approximately 9.3%[13] - The fair value loss on financial assets was HKD 123,000,000 in 2023, compared to HKD 56,000,000 in 2022, indicating a significant increase in losses[13] - Tax expenses increased to HKD 174,000,000 in 2023 from HKD 122,000,000 in 2022, marking an increase of about 42.6%[14] Dividends - The proposed final dividend is HKD 0.08 per share, down from HKD 0.105 per share in 2022, with a total annual dividend of HKD 0.12 per share[8] - The company proposed a final dividend of HKD 0.08 per share, totaling approximately HKD 99,350,000, subject to shareholder approval[22] - The company declared a final dividend of HKD 10.5 cents per share for the year 2022, totaling HKD 130,397, and an interim dividend of HKD 4.0 cents per share for 2023, totaling HKD 49,675[73] Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 6,625,288, compared to HKD 6,305,431 in 2022, indicating an increase of 5.1%[40] - Current liabilities rose to HKD 5,500,139, up from HKD 5,107,486 in the previous year, marking an increase of 7.7%[47] - The total equity attributable to the owners of the company increased to HKD 2,376,470, a growth of 13.6% from HKD 2,092,919 in 2022[47] - The company’s cash and cash equivalents decreased to HKD 1,299,649 from HKD 2,037,124 in 2022, a decline of 36.3%[40] - As of December 31, 2023, the group's current assets amounted to HKD 1,390,000,000, a decrease of 42% from HKD 2,391,000,000 as of December 31, 2022[81] - The total equity as of December 31, 2023, was HKD 2,402,000,000, representing an increase of 13% from HKD 2,126,000,000 as of December 31, 2022[85] - The capital debt ratio as of December 31, 2023, was 10%, down from 15% as of December 31, 2022[85] - The group had interest-bearing borrowings totaling HKD 238,000,000 as of December 31, 2023, a decrease of 24% from HKD 313,000,000 as of December 31, 2022[81] - The group had fixed-rate borrowings totaling HKD 41,000,000 as of December 31, 2023, slightly down from HKD 44,000,000 as of December 31, 2022[84] Investments and Acquisitions - The company completed the acquisition of a 20% stake in a Shenzhen project for approximately HKD 800,000,000, diversifying its future revenue sources[29] - The company completed the acquisition of a project company owning land in Tseung Kwan O for approximately HKD 369,000,000 on April 28, 2023[74] - The land acquired is currently designated for agricultural use, with plans to apply for an increase in plot ratio and change of use under a pilot scheme[75] - The company has extended the deadline for due diligence conditions related to the acquisition to April 30, 2024, allowing for further review[75] - The total consideration for the acquisition may be reduced by up to HKD 16,100,000 if certain conditions regarding residential use are not met[75] Regulatory and Accounting Changes - The application of new and revised Hong Kong Financial Reporting Standards did not have a significant impact on the group's financial position and performance for the year[51] - The group has not adopted the newly issued but not yet effective revised Hong Kong Financial Reporting Standards, which are set to take effect in 2024 and beyond[57] - The company is adjusting its accounting policies in response to the cancellation of the MPF offset mechanism, which will formally take effect on May 1, 2025[53] - The group has implemented guidance from the Hong Kong Institute of Certified Public Accountants regarding the accounting implications of the cancellation of the MPF offset mechanism, ensuring reliable and relevant information[54] Operational Highlights - The average output capacity of the company's steam supply operations increased by 31%, from 62 tons per hour in 2022 to 81 tons per hour in 2023[27] - The total income from the sewage treatment plant operations was HKD 51,333,000, reflecting the company's ongoing commitment to environmental services[62] - The overall service income from the group indicates a stable performance amidst regulatory changes and market conditions[62] - Total segment revenue for the year ended December 31, 2023, was HKD 12,507,050, with HKD 12,290,182 from Hong Kong and HKD 216,868 from China[64] - Segment profit for Hong Kong was HKD 816,439, while China reported a loss of HKD 15,364, resulting in a total segment profit of HKD 801,075[64] - Investment income for the year was HKD 4,306, despite a fair value loss of HKD 123,441 on financial assets[64] Meeting and Governance - The annual general meeting is scheduled for May 21, 2024, at the Harbour Plaza Metropolis Hotel in Hong Kong[94]

Contract Awards and Revenue - For the six months ended June 30, 2023, the total value of new contracts awarded was HKD 8,100,000,000, including seven building contracts and six civil engineering contracts [7]. - The company is optimistic about achieving its annual target of HKD 10,000,000,000 in new contracts for the second half of the year [7]. - As of June 30, 2023, the total value of uncompleted contract works increased to HKD 27,000,000,000 [7]. - For the six months ended June 30, 2023, total revenue reached HKD 5,973,534 thousand, an increase from HKD 5,833,020 thousand in the same period last year, representing a growth of approximately 2.4% [64]. - Total revenue for the six months ended June 30, 2023, was HKD 5,973,534, an increase from HKD 5,833,020 for the same period in 2022, representing a growth of approximately 2.4% [84]. - Construction contracts generated HKD 5,870,216 in revenue, while operations from sewage treatment plants and steam fuel plants contributed HKD 24,179 and HKD 79,139, respectively [84]. Financial Performance - The gross profit for the same period was HKD 677,305 thousand, compared to HKD 487,081 thousand in the previous year, indicating a significant increase of approximately 39% [72]. - The profit before tax for the six months ended June 30, 2023, was HKD 329,486 thousand, up from HKD 262,053 thousand in the prior year, reflecting a growth of about 25.7% [72]. - The net profit attributable to the owners of the company for the period was HKD 250,252 thousand, compared to HKD 199,217 thousand in the previous year, marking an increase of approximately 25.6% [72]. - Basic earnings per share for the period was HKD 20.2, up from HKD 16.0 in the same period last year, representing a growth of 26.3% [72]. - The company reported a decrease in investment and other income to HKD 15,926 thousand from HKD 38,843 thousand, a decline of approximately 59% [72]. - Administrative expenses increased to HKD 271,609 thousand from HKD 196,863 thousand, reflecting a rise of about 37.8% [72]. - Financial costs rose to HKD 15,386 thousand from HKD 8,882 thousand, indicating an increase of approximately 73% [72]. Dividends and Equity - The company declared an interim dividend of HKD 0.04 per ordinary share for the six months ended June 30, 2023, compared to no dividend for the same period in 2022 [5]. - The company plans to pay an interim dividend on September 28, 2023 [30]. - The total equity attributable to owners of the company increased to HKD 2,196,572,000 as of June 30, 2023, from HKD 2,092,919,000 as of December 31, 2022 [53]. - The total equity attributable to owners of the company as of June 30, 2023, was HKD 2,196,572 thousand, an increase from HKD 1,872,577 thousand as of June 30, 2022 [64]. Assets and Liabilities - The group's liquid assets amounted to HKD 1,784,000,000, a decrease from HKD 2,391,000,000 as of December 31, 2022 [9]. - The fair value of financial assets as of June 30, 2023, is HKD 803,478,000, compared to HKD 1,220,000 as of December 31, 2022 [27]. - The fair value of debt securities decreased to HKD 36,747,000 as of June 30, 2023, from HKD 102,837,000 as of December 31, 2022 [27]. - The company's current liabilities decreased to HKD 4,960,091 as of June 30, 2023, from HKD 5,107,486 as of December 31, 2022, a reduction of about 2.9% [74]. - The total liabilities decreased slightly to HKD 3,852,881,000 from HKD 3,988,095,000 [131]. - The company's cash and cash equivalents decreased significantly to HKD 1,240,896 from HKD 2,037,124, a decline of approximately 39.1% [74]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2023, was a negative HKD 35,882,000, compared to a positive HKD 591,219,000 for the same period in 2022 [175]. - The net cash used in investing activities for the six months ended June 30, 2023, was HKD 655,922,000, significantly higher than HKD 117,711,000 in the previous year [175]. - New bank loans raised during the financing activities amounted to HKD 129,580,000, an increase from HKD 49,708,000 in the same period last year [175]. - The total cash and cash equivalents decreased by HKD 800,862,000, compared to a decrease of HKD 32,790,000 in the prior year [175]. - The company invested HKD 26,287,000 in property, machinery, and equipment during the period, a decrease of 37.0% from HKD 41,712,000 in the same period last year [96]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and confirmed compliance by all directors during the reporting period [19]. - There were no purchases, sales, or redemptions of the company's listed securities during the six months ended June 30, 2023 [21]. - The company did not report any inter-segment sales during the periods under review [66]. - The company did not have any potential ordinary shares that were not issued during the reporting periods [94]. Acquisitions and Investments - The company acquired 20% of RTL for a total consideration of HKD 800,015,700, which includes a shareholder loan of HKD 800,000,000 [103]. - The group acquired subsidiaries for approximately HKD 369,017,000 during the reporting period [146]. - The group completed the acquisition of 100% equity in Tian En Investment Limited for approximately HKD 136,532,000 and Real Best Development Limited for approximately HKD 232,485,000 [158]. - The cash outflow for the acquisition of Tian En Group and Real Best Group was HKD 13,653,000 and HKD 23,248,000, respectively [163]. - The company acquired several subsidiaries during the reporting period, with the remaining 90% of the purchase price expected to be paid in stages, projected to be fully settled by 2025 [183].

Financial Performance - The group reported a total revenue of HKD 5,974,000,000 for the six months ended June 30, 2023, representing an increase compared to the previous year's revenue [2]. - The profit attributable to the owners of the company was HKD 250,000,000, showing a significant increase from HKD 196,045,000 in the same period last year [4]. - The earnings per share increased by 5% to HKD 1.77, reflecting the company's improved financial performance [2]. - The total comprehensive income for the period was HKD 228,889,000, compared to HKD 175,791,000 for the same period last year [4]. - The group reported a total segment profit of HKD 320,780,000 for the six months ended June 30, 2023 [21]. - For the six months ended June 30, 2023, the company reported a pre-tax profit of HKD 247 million, an increase from HKD 196 million in the same period of 2022, reflecting a growth of approximately 26% [59]. - The gross profit margin improved from 8.4% to 11.3% year-on-year, contributing to an increase in profit by HKD 190 million [59]. - The company's revenue for the six months ended June 30, 2023, increased by 2.4% to HKD 5,900,000,000 compared to the same period in 2022, while the profit after tax rose by 26% to HKD 247,000,000 [76]. Dividends and Equity - The company declared an interim dividend of HKD 0.04 per share [2]. - The company declared an interim dividend of 4 HK cents per share, totaling approximately 49,675,000 HKD, compared to no dividend in the same period last year [27]. - As of June 30, 2023, the total equity of the company was HKD 2,224 million, up from HKD 2,126 million as of December 31, 2022, representing an increase of approximately 4.6% [63]. - The group’s equity attributable to owners increased to HKD 2,197,000,000, up from HKD 2,092,919,000 at the end of the previous year [2]. Revenue Sources - The construction contracts segment generated revenue of HKD 5,727,088,000, contributing significantly to the overall revenue [18]. - The company continues to focus on construction projects, with a total revenue from construction contracts of 5,870,216 HKD for the period [38]. - For the six months ended June 30, 2023, service revenue was 5,973,534 HKD, an increase from 5,833,020 HKD in the same period last year, representing a growth of 2.4% [32]. Expenses and Liabilities - The interest expenses for the period amounted to HKD 15,386,000, an increase from HKD 8,882,000 in the previous year [23]. - The tax expense for the period was HKD 82,527,000, compared to HKD 66,008,000 in the same period last year [24]. - The company had interest-bearing borrowings totaling HKD 358 million as of June 30, 2023, compared to HKD 313 million at the end of 2022, indicating a rise of about 14.4% [62]. - The company's total salary expenses for the six months ended June 30, 2023, amounted to approximately HKD 832 million, reflecting the competitive compensation structure based on individual responsibilities and performance [60]. Assets and Financial Position - The total assets as of June 30, 2023, were 6,296,680 HKD, slightly down from 6,305,431 HKD at the end of the previous year [34]. - The company's contract assets increased to 3,151,594 HKD from 2,964,937 HKD, showing a growth of 6.3% [34]. - Trade payables decreased to 3,852,881 HKD from 3,988,095 HKD, a reduction of 3.4% [34]. - The company reported a decrease in financial assets at fair value through profit or loss to 343,616 HKD from 1,220 HKD, indicating a significant change in asset valuation [34]. - The company's cash and cash equivalents amounted to HKD 1,241,000,000, a decrease from HKD 2,037,000,000 as of December 31, 2022 [80]. - The company's liquid assets were HKD 1,784,000,000 as of June 30, 2023, down from HKD 2,391,000,000 as of December 31, 2022 [80]. Future Outlook - The total value of new contracts awarded during the period was HKD 8,100,000,000, with an optimistic outlook for achieving an annual target of HKD 10,000,000,000 in new contracts for the second half of the year [77]. - The company expects moderate revenue growth in the future, driven by gradual increases in government infrastructure spending [102]. Compliance and Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange regulations [86].

Employee and Remuneration - As of December 31, 2022, the group had 3,390 employees with a total remuneration of approximately HKD 1,560,000,000 for the fiscal year[5] - The group has adopted a competitive remuneration policy based on individual responsibilities, qualifications, experience, and performance, with discretionary bonuses linked to financial performance[5] - The annual salary for the chairman has been adjusted to HKD 8,650,000 effective January 1, 2023[50] - The gender distribution of employees showed 30.3% female and 81.1% male[187] - The company received recognition for its employee care initiatives, including the "Caring Company" award and "Good MPF Employer 5 Years+"[190] - The implementation of "Family-Friendly Employment Measures" has reduced the required working days for employees, enhancing work-life balance[190] - The company emphasizes the importance of employee feedback and communication through various channels[190] Financial Performance - The group's gross profit increased by 33% to HKD 981 million, with a slight rise in gross margin from 7.4% to 7.9%[156] - The company's revenue for 2022 increased from HKD 10,000,000,000 to HKD 12,000,000,000, representing a growth of 24%[191] - Net profit after tax rose by 47% to HKD 429,000,000, driven by revenue growth[191] - The operating revenue from infrastructure investment projects in China increased by 11% to HKD 202 million, but losses rose from HKD 15 million to HKD 24 million[157] - Administrative expenses increased by 11%, and the company incurred a loss of HKD 26 million from its corporate bond portfolio, offsetting some of the gross profit increase[156] - The company plans to distribute a final dividend of HKD 0.105 per share, pending shareholder approval at the upcoming annual general meeting[152] - The company is cautiously optimistic about achieving breakeven in 2023, as more factories in industrial parks resume production following the easing of pandemic restrictions[157] Corporate Governance - The board is responsible for providing effective leadership and monitoring to achieve the group's strategic objectives[27] - The board consists of four independent non-executive directors, representing over one-third of the board[32] - The company has established mechanisms to encourage independent and objective opinions from directors, including annual separate meetings with independent non-executive directors[32] - The company has complied with the corporate governance code, except for the separation of roles between the chairman and the CEO[55] - The board members receive monthly updates on business activities and financial information to ensure effective governance[68] - The nomination committee is responsible for evaluating the independence of independent non-executive directors and ensuring a transparent process for appointing directors[102] - The board has established clear environmental, social, and governance (ESG) policies integrated into the company's management handbook[194] Risk Management and Internal Controls - The audit committee reviewed the financial information, financial reporting procedures, risk management, and internal control systems for the fiscal year ending December 31, 2022[73] - The internal audit team conducts risk-based audits and collaborates with management to analyze collected data and assess operational controls[88] - The internal audit team conducted a systematic review of the group's risk management and internal control systems, providing reasonable assurance of their effectiveness[113] - The board has authorized the audit committee to review and assess the effectiveness of the group's risk management and internal control systems[130] - The company has established a whistleblowing mechanism for employees to report any misconduct related to financial reporting and internal controls[75] - The group has not received any whistleblower reports in 2022, indicating a stable internal environment[114] Business Operations and Strategy - The group has established a framework agreement with Wai Kee for concrete procurement, with an expected total amount exceeding HKD 140,000,000 for the fiscal year 2023[19] - The company has entered into an investment agreement for a redevelopment project in Shenzhen, China[45] - The company is preparing for future bids in the construction market, which is expected to have significant opportunities as outlined in the latest policy report[156] - The group managed over 60 engineering projects in the fiscal year 2022, accounting for 98% of the group's revenue and 91% of its workforce[173] - The company aims to become a leading construction company in Hong Kong, focusing on professionalism, creativity, and integrity[56] Shareholder Information - The major shareholder, Top Horizon Holdings Limited, holds 58.12% of the shares[16] - The group has maintained a public float exceeding 25% as of December 31, 2022[24] - The company has not entered into any stock-linked agreements as of December 31, 2022[8] - The total value of related transactions for the year 2022 is capped at HKD 170 million, while for 2023 it is capped at HKD 140 million[47] - The board considers various factors, including financial status and operational needs, when proposing dividends[168] Compliance and Certifications - The group has achieved certifications including ISO 9001:2015, ISO 45001:2018, and ISO 14001:2015, demonstrating its commitment to quality management, occupational safety, and environmental protection[115] - The group emphasizes continuous improvement in quality management, occupational safety, and environmental protection, encouraging all employees and subcontractors to enhance performance[118] - The company plans to adopt new constitutional amendments at the upcoming 2023 annual general meeting, reflecting compliance with updated regulations[136] Challenges and Market Conditions - The company faced challenges due to the fifth wave of COVID-19, which caused temporary project suspensions at the beginning of 2022[191] - Most construction sites that were closed resumed operations quickly in the second half of 2022, leading to improved performance[191] - The group has uncompleted projects valued at HKD 25.8 billion, consistent with the end of 2021[156] - The group reported interest-bearing borrowings totaling HKD 313 million, significantly reduced from HKD 810 million in the previous year[159] - The capital debt ratio decreased to 15% as of December 31, 2022, down from 45% as of December 31, 2021[160]

Financial Performance - Total service revenue for 2022 was HKD 12,422,558, an increase from HKD 10,030,017 in 2021, representing a growth of approximately 23.9%[3] - Gross profit for 2022 reached HKD 980,900, up from HKD 739,603 in 2021, indicating a growth of about 32.6%[3] - Profit before tax increased to HKD 551,470 in 2022, compared to HKD 376,855 in 2021, reflecting a growth of approximately 46.2%[3] - Net profit for the year was HKD 429,166, a significant increase from HKD 291,891 in 2021, representing a growth of around 47.0%[3] - Basic earnings per share rose to HKD 0.35 in 2022, compared to HKD 0.237 in 2021, marking an increase of approximately 47.5%[3] - The total revenue for the year ended December 31, 2022, was HKD 12,422,558,000, compared to HKD 12,220,379,000 in 2021, reflecting an increase of approximately 1.65%[29] - The pre-tax profit for the year was HKD 551,470,000, showing a decrease from the previous year due to various factors including a reduction in investment income[28] - The total comprehensive income for the year was HKD 392 million, compared to HKD 304 million in 2021, representing an increase of approximately 28.8%[62] Equity and Liabilities - Total equity attributable to owners of the company increased to HKD 2,092,919 in 2022 from HKD 1,765,906 in 2021, a growth of about 18.5%[5] - The total liabilities increased to HKD 2,213,047 in 2022 from HKD 1,886,637 in 2021, reflecting an increase of approximately 17.3%[5] - The total liabilities decreased slightly to HKD 5,107,486,000 from HKD 5,239,555,000, reflecting improved financial management[29] - The capital debt ratio decreased to 15% as of December 31, 2022, down from 45% in 2021, indicating improved financial stability[51] - The total interest-bearing borrowings as of December 31, 2022, were HKD 313 million, a reduction from HKD 810 million in 2021, showing a decrease of approximately 61.3%[50] - The company reported total liabilities of HKD 3,988,095,000, with a significant portion due within one year[80] Dividends - The company proposed a final dividend of HKD 0.105 per share, up from HKD 0.06 per share in 2021, indicating a 75% increase in dividend payout[20] - Proposed final dividend is subject to shareholder approval at the upcoming annual general meeting, with a record date set for June 1, 2023[81] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.105 per share, totaling approximately HKD 130,397,000, compared to HKD 0.06 per share and approximately HKD 74,513,000 for the year 2021[99] Expenses and Income - The company reported a decrease in administrative expenses to HKD 436,671 in 2022 from HKD 392,586 in 2021, a reduction of about 11.2%[3] - Investment and other income decreased to HKD 68,948 in 2022 from HKD 98,432 in 2021, representing a decline of approximately 30.0%[3] - The company’s investment income included dividends from financial assets at fair value through profit or loss, totaling HKD 877,000, down from HKD 2,321,000 in 2021[30] - The company’s financial costs amounted to HKD 17,061,000, which is a critical factor in the overall profit margin[28] - Financial costs decreased to HKD 17,061,000 in 2022 from HKD 19,014,000 in 2021, primarily due to lower bank borrowing costs[97] Assets and Receivables - Current assets increased to HKD 2,391,000,000 as of December 31, 2022, up from HKD 2,155,000,000 in 2021, with cash and bank balances rising to HKD 2,037,000,000 from HKD 1,755,000,000[39] - The company reported a significant increase in inventory, which rose to HKD 114,502,000 from HKD 36,426,000, indicating a strategic buildup of stock[29] - Trade receivables aged 0 to 60 days amounted to HKD 368,254,000 in 2022, slightly up from HKD 362,900,000 in 2021[101] - Trade receivables aged over 90 days were HKD 16,187,000 in 2022, compared to HKD 16,356,000 in 2021, indicating a slight decrease[101] - Other receivables remained stable at HKD 196,474,000 in 2022, compared to HKD 196,407,000 in 2021[101] - The company reported a total of HKD 705,039,000 in receivables for 2022, an increase from HKD 682,385,000 in 2021[101] Employment and Future Outlook - The group employed 3,390 staff with a total remuneration of approximately HKD 1,560 million for the year ended December 31, 2022[48] - The company anticipates a cautious optimism for achieving breakeven in 2023 as production resumes in more factories following the easing of pandemic restrictions[84] - The company is preparing for future bids in the construction market, particularly in major road and railway systems as outlined in the latest policy report[84] Meeting and Compliance - The company will hold its annual general meeting on May 24, 2023, with a cutoff for share transfer registration on May 18, 2023[106] - The company has not adopted new accounting standards that are yet to be effective, which may impact future financial reporting[26]

Financial Performance - The group's revenue for the six months ended June 30, 2022, increased by 25% to HKD 5,800,000,000 compared to HKD 4,700,000,000 in the previous year[9]. - The net profit after tax rose by 33% to HKD 196,000,000 from HKD 147,000,000, with a gross profit margin improvement from 7.3% to 8.4%[9]. - Service revenue for the six months ended June 30, 2022, was HKD 5,833,020 thousand, an increase from HKD 4,677,801 thousand in the same period of 2021, representing a growth of approximately 24.6%[42]. - Gross profit for the same period was HKD 487,081 thousand, compared to HKD 342,400 thousand in 2021, reflecting a year-over-year increase of about 42.3%[42]. - Profit before tax for the six months ended June 30, 2022, was HKD 262,053 thousand, up from HKD 186,333 thousand in 2021, indicating a growth of approximately 40.6%[42]. - Net profit attributable to the owners of the company for the period was HKD 199,217 thousand, compared to HKD 147,389 thousand in the previous year, marking an increase of around 35.3%[42]. - Total comprehensive income for the six months ended June 30, 2022, was HKD 175,791 thousand, compared to HKD 150,777 thousand in 2021, representing a growth of about 16.6%[45]. - The basic earnings per share for the six months ended June 30, 2022, was HKD 16.0, compared to HKD 11.9 in the same period of 2021, representing an increase of approximately 34.4%[42]. - The company reported a profit of HKD 199,217 thousand for the six months ended June 30, 2022, compared to a profit of HKD 147,389 thousand for the same period in 2021, an increase of 35.25%[52]. Financial Position - The group's total equity as of June 30, 2022, was HKD 1,909,000,000, an increase from HKD 1,807,000,000 as of December 31, 2021[16]. - The capital debt ratio decreased to 21% from 45% as of December 31, 2021, reflecting improved financial stability[16]. - The company’s total assets as of June 30, 2022, were HKD 1,909,403 thousand, compared to HKD 1,806,627 thousand as of December 31, 2021, reflecting an increase of 5.69%[50]. - Non-current assets as of June 30, 2022, totaled HKD 1,140,247 thousand, a decrease from HKD 1,210,827 thousand as of December 31, 2021[47]. - Current assets amounted to HKD 5,591,738 thousand as of June 30, 2022, compared to HKD 5,915,365 thousand at the end of 2021, indicating a decline of approximately 5.5%[47]. - Current liabilities were HKD 4,764,993 thousand as of June 30, 2022, down from HKD 5,239,555 thousand at the end of 2021, reflecting a decrease of about 9.1%[47]. - The company’s non-current liabilities decreased to HKD 1,966,992 thousand as of June 30, 2022, from HKD 1,886,637 thousand as of December 31, 2021, a decline of 4.25%[50]. - The company’s retained earnings increased to HKD 1,813,155 thousand as of June 30, 2022, from HKD 1,688,451 thousand as of January 1, 2022, representing a growth of 7.39%[52]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 591,219 thousand, compared to HKD 209,291 thousand for the same period in 2021, indicating a significant increase of 182.56%[56]. - The company reported a net cash outflow from investing activities of HKD 117,711 thousand for the six months ended June 30, 2022, compared to HKD 342,090 thousand in the previous year, showing a reduction of 65.54%[56]. - The company’s cash and cash equivalents at the end of June 30, 2022, stood at HKD 1,721,890 thousand, up from HKD 1,534,044 thousand at the end of June 30, 2021, marking an increase of 12.19%[56]. - The company invested HKD 44,033,000 in property, plant, and equipment during the period, significantly lower than HKD 88,215,000 in the same period last year[77]. - The company incurred a tax expense of HKD 75,460 for the six months ended June 30, 2022, compared to HKD 39,476 for the same period in 2021, representing an increase of approximately 91.1%[72]. Shareholder Information - As of June 30, 2022, the company’s major shareholder, Top Horizon Holdings Limited, holds 704,945,033 shares, representing 56.76% of the total shares[25]. - Director Dan Wei Biao owns 123,725,228 shares, accounting for 9.96% of the company[19]. - The company did not declare an interim dividend for the six months ended June 30, 2022[5]. - The total dividends declared for the period amounted to HKD 74,513,000, down from HKD 86,931,000 in the previous year, reflecting a decrease of approximately 14.3%[76]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, except for the separation of roles between the chairman and CEO[29]. - The company confirmed compliance with the standard code of conduct for securities transactions by all directors during the six months ending June 30, 2022[30]. - The audit committee reviewed the accounting policies and the unaudited interim financial information for the six months ending June 30, 2022[35]. - No changes in director information have been disclosed since the last annual report[36]. - The company has no other disclosures regarding the interests of directors or their associates in the company’s shares or related securities[24]. Contractual and Operational Insights - The total amount of new contracts awarded during the period was HKD 1,400,000,000, falling short of the target of HKD 10,000,000,000 for 2022[10]. - The total value of unfinished contract works as of the report date was HKD 24,000,000,000, indicating ongoing project commitments[10]. - The segment profit for the construction contracts in Hong Kong was HKD 337,177, while the segment loss from operations in China was HKD 16,397, leading to a consolidated segment profit of HKD 320,780[65]. - The company reported a significant increase in construction contract revenue from HKD 4,602,176 in 2021 to HKD 5,727,088 in 2022, marking a growth of approximately 24.4%[62][63]. - The company’s total revenue from construction contracts with related parties was HKD 68,159,000, slightly down from HKD 70,684,000 in the previous year[111].

Financial Performance - The group's revenue for 2021 was HKD 10,030,000,000, an increase of nearly 31% compared to 2020[6] - Profit attributable to owners decreased from HKD 440,000,000 in 2020 to HKD 295,000,000 in 2021[6] - The company's revenue for the fiscal year 2021 increased by 31% to HKD 10,030,000,000, up from HKD 7,628,000,000 in 2020[44] - Gross profit rose by 7% to HKD 740,000,000, although the gross profit margin decreased from 9% to 7% due to intense competition in new engineering projects[44] - The net profit after tax decreased by 34% to HKD 292,000,000, primarily due to a one-time government subsidy of HKD 116,000,000 received in 2020 and losses from bond investments[45] Revenue Sources - The construction industry accounted for 99% of the group's revenue, with civil engineering revenue at HKD 5,300,000,000, a 15% increase year-on-year[11] - The group’s building construction revenue was HKD 4,200,000,000, a significant increase of 75% compared to 2020[16] - The group received new engineering projects worth HKD 8,100,000,000 during the year, with an outstanding contract value of approximately HKD 25,500,000,000[9] - The company successfully secured new engineering projects worth HKD 8,100,000,000, with HKD 6,800,000,000 from government civil engineering projects and HKD 1,300,000,000 from private developers[45] Dividends and Shareholder Returns - The group proposed a final dividend of HKD 0.06 per share, down from HKD 0.07 in 2020[5] - The company plans to distribute a dividend of HKD 0.06 per share, equivalent to 25% of the earnings per share of HKD 0.24[41] - The final dividend is expected to be paid on June 15, 2022, pending shareholder approval[75] Employee and Talent Management - The number of employees increased from 2,922 in 2020 to 3,222 in 2021, reflecting the company's efforts to address the talent shortage in the construction industry[22] - The company is addressing talent shortages in the construction industry due to increased competition for skilled workers[15] - The company is actively recruiting non-construction personnel to alleviate the talent shortage and is willing to provide necessary training[24] Financial Position and Assets - As of December 31, 2021, the group's current assets amounted to HKD 2,155,000,000, an increase from HKD 2,085,000,000 as of December 31, 2020[49] - The total equity as of December 31, 2021, was HKD 1,807,000,000, up from HKD 1,589,000,000 in the previous year, reflecting a growth of approximately 13.8%[50] - The group's interest-bearing borrowings totaled HKD 810,000,000 as of December 31, 2021, compared to HKD 520,000,000 a year earlier, indicating a significant increase of 55.8%[49] - Cash and cash equivalents increased to HKD 1,755,000,000 from HKD 1,515,000,000, representing a growth of 15.8%[49] Governance and Compliance - The company has complied with the corporate governance code as per the listing rules throughout the year[117] - The company has established a whistleblowing mechanism for employees to report any misconduct related to financial reporting and internal controls[145] - The company is committed to maintaining the highest standards of corporate governance in compliance with the listing rules[191] Environmental, Social, and Governance (ESG) Initiatives - The board has established a clear environmental, social, and governance (ESG) policy, integrating it into the company's management handbook[183] - The company emphasizes the importance of stakeholder engagement in sustainable development, conducting regular meetings to understand their views on ESG policies[183] - The company has achieved certifications in quality management and environmental standards, including ISO 9001:2015, ISO 45001:2018, and ISO 14001:2015, reflecting its commitment to quality and environmental management[171] Risk Management - The board is responsible for maintaining an effective risk management and internal control system to safeguard the company's assets and shareholders' interests, with a systematic review conducted by the internal audit team[167] - The internal audit team employed a risk-based audit approach to assess the effectiveness of the group's risk management and internal control systems, providing reasonable assurance of their effectiveness[168] Future Outlook - The company anticipates securing HKD 10,000,000,000 in new engineering projects in 2022[9] - The company anticipates that two steam supply projects will start generating profits in 2022, while two additional projects are expected to begin operations by summer 2022[35] - The company aims to earn HKD 100,000,000 from environmental infrastructure investments by 2025, delayed from the previous target of 2024[37]

Financial Performance - The group reported a revenue increase of 26% to HKD 4,678,000,000 for the six months ended June 30, 2021[10]. - Gross profit margin decreased from 11% in the first half of 2020 to 7% in the current period, resulting in a gross profit reduction of HKD 73,000,000[10]. - Net profit after tax decreased from HKD 208,000,000 to HKD 147,000,000, a decline of HKD 61,000,000[10]. - Service revenue for the six months ended June 30, 2021, was HKD 4,677,801 thousand, an increase from HKD 3,719,131 thousand in the same period of 2020, representing a growth of approximately 25.8%[47]. - The gross profit for the six months ended June 30, 2021, was HKD 342,400 thousand, down from HKD 415,184 thousand in 2020, indicating a decrease of about 17.5%[47]. - The net profit for the period was HKD 146,857 thousand, compared to HKD 208,387 thousand in the previous year, reflecting a decline of approximately 29.5%[50]. - The total comprehensive income for the six months ended June 30, 2021, was HKD 150,777 thousand, down from HKD 202,852 thousand in 2020, a decrease of about 25.7%[50]. - The company's profit attributable to owners for the six months ended June 30, 2021, was HKD 147,389,000, a decrease of 29.5% compared to HKD 209,130,000 for the same period in 2020[86]. Project and Contract Information - The group successfully secured five projects with a total contract value of HKD 5,200,000,000, including a major project worth HKD 4,000,000,000 expected to be completed by 2026[10]. - The total amount of unfinished projects as of the report date is HKD 27,000,000,000, consistent with the level at the end of 2020[10]. - The construction contract revenue for Hong Kong was HKD 4,602,176, while the revenue from China was HKD 75,625, contributing to the overall revenue[69]. - The company reported construction material purchases from subsidiaries amounting to HKD 70,684,000 for the six months ended June 30, 2021, compared to HKD 31,240,000 in 2020, representing a significant increase of 126%[125]. - Construction contract revenue from a joint venture with a major holding company was HKD 29,146,000, down from HKD 289,258,000 in the previous year, indicating a decline of 90%[125]. - The company recorded construction contract revenue of HKD 41,389,000 for the six months ended June 30, 2021, up from HKD 29,881,000 in 2020, reflecting an increase of 38%[125]. Financial Position and Equity - The group’s cash and cash equivalents amounted to HKD 1,534,000,000 as of June 30, 2021, compared to HKD 1,515,000,000 at the end of 2020[16]. - Total equity increased to HKD 1,653,000,000 from HKD 1,589,000,000 at the end of 2020, reflecting a 4% increase[18]. - The group’s debt-to-equity ratio rose to 47% from 33% at the end of 2020, indicating increased leverage[18]. - The total liabilities increased to HKD 4,109,686 thousand as of June 30, 2021, from HKD 3,779,807 thousand at the end of 2020, indicating a rise of about 8.7%[52]. - The company’s total liabilities increased to HKD 2,867,274,000 as of June 30, 2021, from HKD 2,616,149,000 as of December 31, 2020, reflecting a rise of 9.6%[107]. - The company’s non-current liabilities totaled HKD 1,720,295 as of June 30, 2021, compared to HKD 1,663,437 at the end of 2020, reflecting an increase of approximately 3.4%[55]. Cash Flow and Financing Activities - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 209,291, a significant improvement compared to a net cash outflow of HKD 52,950 for the same period in 2020[61]. - The company raised new bank loans totaling HKD 395,908 during the financing activities, compared to HKD 59,045 in the previous period[61]. - The cash outflow from investing activities was HKD 342,090 for the six months ended June 30, 2021, compared to an inflow of HKD 47,239 in the same period of 2020[61]. - The company paid dividends amounting to HKD 86,931 during the period, compared to HKD 59,610 in the previous period[61]. Governance and Management - The company has complied with the corporate governance code as per the listing rules, except for the separation of roles between the chairman and CEO[35]. - The company has maintained a clear distinction of responsibilities between the board and management, ensuring governance balance[35]. - The company’s governance structure is believed to be beneficial for its operations and business[35]. - Mr. Dan Wei Biao's annual salary was adjusted from HKD 3,000,000 to HKD 8,000,000 effective January 1, 2021[41]. - The company has no other disclosures regarding the interests of directors or their associates in the company's shares or related securities[29]. Assets and Liabilities - Non-current assets increased to HKD 1,008,418 thousand as of June 30, 2021, from HKD 935,295 thousand as of December 31, 2020, representing a growth of approximately 7.8%[52]. - Current assets totaled HKD 4,821,563 thousand as of June 30, 2021, compared to HKD 4,507,949 thousand at the end of 2020, an increase of about 6.9%[52]. - The total reserves increased to HKD 1,487,045 as of June 30, 2021, up from HKD 1,456,715 as of December 31, 2020, indicating a growth of approximately 2.2%[55]. - The accounts receivable from trade contracts aged 0 to 60 days amounted to HKD 190,491,000, down from HKD 231,232,000 as of December 31, 2020[96]. - The total contract assets as of June 30, 2021, were HKD 1,931,199,000, an increase from HKD 1,793,164,000 at the end of 2020[100]. - The company reported a decrease in trade receivables over 90 days to HKD 35,883,000 from HKD 226,630,000 in the previous year[96]. Taxation and Compliance - The total tax expense for the six months ended June 30, 2021, was HKD 39,476,000, significantly higher than HKD 13,185,000 in the same period of 2020, reflecting an increase in the effective tax rate[8]. - The company adopted revised Hong Kong Financial Reporting Standards during the reporting period, which did not have a significant impact on the financial position or performance[66].