Financial Performance - For the six months ended June 30, 2023, the group's revenue was HKD 222,264,000, a decrease of approximately 16.5% compared to HKD 266,307,000 in the same period last year[12]. - The cement business generated revenue of HKD 108,809,000, down approximately 33.8% year-on-year, while property investment revenue increased by about 5.7% to HKD 76,163,000[12]. - The group recorded an unaudited profit attributable to equity holders of HKD 29,729,000, an increase of approximately 15.0% from HKD 25,848,000 in the same period last year[22]. - The overall operating income from the hotel business contributed HKD 29,059,000, an increase of 27.9% compared to the same period last year[55]. - The company reported a profit of HKD 29,595,000, an increase of 25.5% compared to HKD 23,517,000 for the same period in 2022[67]. - Total comprehensive income for the period was HKD 33,852,000, significantly up from HKD 7,174,000 in the previous year[67]. - The group reported a net profit of HKD 29,595,000 for the first half of 2023, up from HKD 23,517,000 in the same period last year[106]. - The group’s total comprehensive income for the first half of 2023 was HKD 41,593,000, an increase from HKD 36,329,000 in the prior year[106]. Revenue Breakdown - The total revenue from customer contracts for the first half of 2023 was HKD 162,825,000, with cement sales contributing HKD 108,809,000[109]. - The property investment segment generated revenue of HKD 16,724,000, while hotel operations contributed HKD 29,059,000 in the first half of 2023[109]. - The geographical revenue breakdown shows that Vietnam accounted for HKD 125,533,000, while Hong Kong contributed HKD 37,292,000 in total revenue[109]. Operational Metrics - The average occupancy rate of the group's hotels reached 92%, significantly up from 77.3% in the same period last year, with average room rates increasing by approximately 15%[28]. - The occupancy rate of the Saigon Trade Center reached 79% as of June 30, 2023, a significant increase from 74% on December 31, 2022[52]. - The group’s hotel operation revenue increased to HKD 29,059,000 for the six months ended June 30, 2023, compared to HKD 16,160,000 in the previous year, reflecting an increase of 79.5%[129]. Cash and Assets - The group's cash, bank balances, and time deposits as of June 30, 2023, amounted to HKD 496,167,000, an increase from HKD 444,409,000 as of December 31, 2022[33]. - The company’s cash and cash equivalents amounted to HKD 496,167,000, an increase from HKD 444,409,000 year-over-year[68]. - Non-current assets totaled HKD 2,357,636,000, slightly down from HKD 2,371,122,000 as of December 31, 2022[68]. - The company’s total assets less current liabilities stood at HKD 2,774,442,000, up from HKD 2,748,505,000[68]. - The net asset value of current assets was HKD 416,806,000, compared to HKD 377,383,000 in the previous year[68]. Liabilities and Expenses - Current liabilities increased to HKD 203,597,000 from HKD 189,879,000 in the previous year, reflecting a rise in accounts payable[68]. - The group reported a total tax expense of HKD 11,998,000 for the six months ended June 30, 2023, compared to HKD 12,812,000 in the same period of 2022, indicating a decrease of 6.4%[113]. - The group’s total liabilities increased to HKD 38,573,000 as of June 30, 2023, compared to HKD 37,348,000 at the end of 2022, reflecting a growth of 3.3%[140]. Market Conditions and Future Outlook - The group anticipates continued difficulties in its cement operations in the second half of 2023 due to a sluggish real estate and construction sector in Vietnam[21]. - The Vietnamese government plans to implement measures to stimulate economic growth, including lowering interest rates to ease borrowing costs[24]. - The group plans to expand its market presence and enhance its product offerings in the upcoming quarters[106]. - The company is focusing on new product development and technological advancements to drive future growth[106]. Management and Governance - The board of directors has adopted a corporate governance code to ensure high standards of governance and accountability[173]. - The company’s management structure was updated on January 17, 2023, with Zheng Yan resigning as CEO and three individuals appointed as co-CEOs[154]. - The audit committee consists of three independent non-executive directors who reviewed the financial statements for the six months ending June 30, 2023[157]. Shareholder Information - The company’s major shareholders include Zheng Yan, who holds 58,200,827 shares, representing 11.58% of the total issued share capital[167]. - The company reported a total of 276,214,862 shares held by Luks Family (PTC) Limited, representing 54.96% of the issued share capital[180]. - CC (Holdings) Limited holds 36,912,027 shares, accounting for 7.34% of the total issued share capital[180]. - Kopernik Global Investors LLC owns 25,274,866 shares, which is 5.03% of the issued share capital[180].

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文件的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示，概不對因本文件全部或任何部分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。 LUKS GROUP (VIETNAM HOLDINGS) COMPANY LIMITED 陸陸陸陸 氏氏氏氏 集集集集 團團團團 （（（（ 越越越越 南南南南 控控控控 股股股股 ）））） 有有有有 限限限限 公公公公 司司司司 * （於百慕達註冊成立之有限公司） （股份代號：366） 截截截截至至至至二二二二零零零零二二二二三三三三年年年年六六六六月月月月三三三三十十十十日日日日止止止止六六六六個個個個月月月月之之之之中中中中期期期期業業業業績績績績公公公公佈佈佈佈 陸氏集團(越南控股)有限公司（「本公司」）董事會欣然宣佈截至二零二三年六月三十日止六個月本公司及其附 屬公司（統稱「本集團」）之未經審核綜合中期業績連同二零二二年同期比較數字。此簡明綜合中期財務報表 為未經核數師審核，但已由本公司審核委員會審閱。 綜綜綜綜合合合合損損損損益益益益表表表表 截至二零二三年六月三十日止六個月 截截截截至至至至 ...

Environmental Impact - In the fiscal year 2022, the cement plant consumed 80,876 tons of coal and 61,894,648 kWh of electricity[9] - The total amount of physical hazardous waste processed in 2022 was 15,840 kg[7] - The cement plant's water consumption for mechanical cooling was approximately 106,755 m³ in 2022[11] - The company installed a real-time emission monitoring system (CEMS) in 2018, which measures various gas emissions every 5 minutes[6] - The company has not received any penalties from the Environmental Protection Agency during the reporting year[8] Production and Employment - The cement plant produced 7,749,211 bags of cement, each weighing 50 kg, in the fiscal year 2022[12] - As of December 31, 2022, the cement plant employed approximately 835 staff members, all of whom earn above the local minimum wage[18] - As of December 31, 2022, the total number of hotel employees was 75, comprising 28 males and 47 females[45] Financial Performance - The company's revenue for the year was HKD 492,875,000, a decrease of 4% compared to HKD 513,230,000 in the previous year[89] - Gross profit decreased to HKD 130,920,000, down from HKD 153,973,000, reflecting a decline of approximately 15%[89] - The net profit for the year was HKD 48,498,000, a significant decrease of 43% from HKD 84,592,000 in the previous year[89] - Pre-tax profit for the year was HKD 76,218,000, down from HKD 115,132,000, indicating a decline of approximately 33.87%[71] - The company reported a total comprehensive income of HKD 106,868,000 for the year, compared to HKD 84,669,000 in the previous year, an increase of about 26.24%[68] Assets and Liabilities - The total non-current assets amounted to HKD 2,371,122,000, a decrease from HKD 2,451,297,000 in the previous year[62] - Current assets totaled HKD 567,262,000, down from HKD 587,731,000 in the previous year[62] - The total liabilities for current liabilities were HKD 189,879,000, a decrease from HKD 256,083,000 in the previous year[62] - Total assets minus current liabilities decreased to HKD 2,748,505,000 from HKD 2,782,945,000, a decline of approximately 1.23%[65] - Non-current liabilities totalled HKD 238,826,000, down from HKD 250,310,000, representing a decrease of about 4.59%[65] Corporate Governance - The company is committed to high standards of corporate governance, emphasizing transparency and accountability[34] - The company has confirmed compliance with the corporate governance code and disclosed this in its corporate governance report[96] - The audit committee is confident that there are no deficiencies in the internal control system as of 2022, and it will continue to assess and manage significant risks faced by the group[101] - The company has adopted the standard code as per Appendix 10 of the listing rules and confirmed compliance for the year ending December 31, 2022[98] Corporate Social Responsibility - The company has established a corporate social responsibility policy focusing on community investment, particularly in poverty alleviation, children's education, and healthcare services[57] Cash Flow and Investments - Operating cash flow generated a net inflow of HKD 107,338,000, a significant improvement compared to a net outflow of HKD 89,839,000 in the previous year[71] - The company experienced a net cash outflow from investing activities of HKD 17,825,000, compared to HKD 1,975,000 in the previous year[73] - The financing activities resulted in a net cash outflow of HKD 81,837,000, contrasting with an inflow of HKD 84,065,000 in the previous year[73] Shareholder Information - The major shareholders include Luks Family (PTC) Limited with 54.29% and CC (Holdings) Limited with 7.34% of the issued share capital[122] - The company has disclosed that public shareholders hold at least 25% of the total issued share capital as of the report date[172] - An interim dividend of HKD 0.02 per share was distributed on October 20, 2022, and the board recommends a final dividend of HKD 0.02 per share to shareholders listed on the register on June 14, 2023[126] Audit and Compliance - The independent auditor's report confirms that there are no significant misstatements due to fraud or error in the consolidated financial statements[160] - The company has maintained the same auditor for the past three years[147] - The audit committee assists the company's directors in fulfilling their responsibilities and overseeing the financial reporting process[158] - The auditor's responsibilities include identifying and assessing risks of material misstatement in the financial statements[161] Investment Properties - The total fair value of investment properties held by the group in Vietnam, Hong Kong, and mainland China is HKD 1,196,000,000 as of December 31, 2022[177] - Management engaged external valuers to estimate the fair value of hotel properties, which is significant due to the net book value of the hotel properties[154] - The hotel business held a total value of approximately HKD 486 million before impairment as of December 31, 2022, with continuous losses leading to impairment indicators[154] Miscellaneous - The company operates primarily in the manufacturing and sales of cement[191] - The company is registered in Bermuda and has its main office located in Hong Kong[190] - The financial report is prepared in accordance with Hong Kong auditing standards, ensuring the appropriateness of accounting policies and estimates[188]

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佈的內容概不負責，對其準確性或完整性亦不發表任 何聲明，並明確表示，概不對因本公佈全部或任何部分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。 LUKS GROUP (VIETNAM HOLDINGS) COMPANY LIMITED 陸陸陸陸 氏氏氏氏 集集集集 團團團團 （（（（ 越越越越 南南南南 控控控控 股股股股 ）））） 有有有有 限限限限 公公公公 司司司司 **** （於百慕達註冊成立之有限公司） （（（（股股股股份份份份代代代代號號號號：：：：366）））） 截截截截至至至至二二二二零零零零二二二二二二二二年年年年十十十十二二二二月月月月三三三三十十十十一一一一日日日日止止止止年年年年度度度度業業業業績績績績公公公公佈佈佈佈 陸氏集團(越南控股)有限公司（「本公司」）董事會宣佈本公司及其附屬公司（統稱「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。此年度業績已經本公司之審核委員會審閱。 綜綜綜綜合合合合損損損損益益益益表表表表 截至二零二二年十二月三十一日止年度 二二二二零零零零二二二二二二二二年年年年 二零二一年 ...

Financial Performance - For the first half of 2022, the group's revenue was HKD 266,307,000, a decrease of approximately 4.1% compared to HKD 277,665,000 in the same period last year[8] - The cement business generated revenue of HKD 164,476,000, down about 6.3% year-on-year, while property investment revenue was HKD 72,083,000, also down 6.3%[8] - The hotel business recorded revenue of HKD 22,719,000, representing an increase of approximately 20.7% compared to the previous year[8] - The group reported an unaudited profit attributable to equity holders of HKD 25,848,000, a decline of about 39.2% from HKD 42,488,000 in the same period last year[10] - The basic earnings per share for the first six months were approximately HKD 0.051, compared to HKD 0.085 in the previous year[10] - Gross profit for the same period was HKD 66,605,000, down 20.8% from HKD 84,090,000 in 2021[35] - The net profit for the six months ended June 30, 2022, was HKD 23,517,000, a decline of 44.7% compared to HKD 42,109,000 in 2021[37] - The total comprehensive income for the period was HKD 7,174,000, significantly lower than HKD 49,460,000 in 2021, primarily due to foreign exchange losses[37] Segment Performance - Cement sales volume was approximately 420,000 tons, a decrease of about 19.8% from 524,000 tons in the same period last year[12] - The hotel operations segment reported revenue of HKD 22,719 million, compared to HKD 118,822 million in the previous year, indicating a significant decrease of around 80.9%[65] - Cement sales contributed HKD 164,476,000 for the six months ended June 30, 2022, down from HKD 175,567,000 in 2021, representing a decline of 6.2%[69] - Hotel operation revenue increased to HKD 22,719,000 in 2022 from HKD 18,822,000 in 2021, marking a growth of 20.1%[69] - Total rental income from investment properties was HKD 55,923,000 for the six months ended June 30, 2022, compared to HKD 59,517,000 in 2021, reflecting a decrease of 6.5%[69] Cash Flow and Liquidity - As of June 30, 2022, the group's cash, bank balances, and time deposits amounted to HKD 450,848,000, compared to HKD 439,596,000 on December 31, 2021[25] - For the six months ended June 30, 2022, the company reported a net cash inflow from operating activities of HKD 67,876,000, compared to HKD 26,612,000 for the same period in 2021, representing a significant increase of 154%[48] - The company’s operating cash flow increased significantly, with cash generated from operations rising to HKD 90,683,000 from HKD 47,305,000, marking an increase of 92%[48] - The company’s cash and cash equivalents at the end of the period were HKD 244,453,000, down from HKD 264,219,000 in the previous year, reflecting a decrease of about 7%[50] - The company incurred a net cash outflow from investing activities of HKD 43,583,000, compared to HKD 52,564,000 in the prior year, showing an improvement of approximately 17%[48] Assets and Liabilities - Non-current assets totaled HKD 2,409,192,000 as of June 30, 2022, compared to HKD 2,451,297,000 at the end of 2021[40] - Current assets increased to HKD 590,306,000 from HKD 587,731,000 at the end of 2021[40] - Current liabilities decreased to HKD 231,205,000 from HKD 256,083,000 at the end of 2021[40] - The net asset value as of June 30, 2022, was HKD 2,524,732,000, slightly down from HKD 2,532,635,000 at the end of 2021[41] - The company reported an increase in inventory to HKD 74,507,000 from HKD 69,119,000 at the end of 2021[40] Dividends and Shareholder Information - The group declared an interim dividend of HKD 0.02 per share to shareholders[22] - The group declared an interim dividend of HKD 10,051,000 for the six months ended June 30, 2022, compared to HKD 15,077,000 in 2021, a decrease of 33.2%[81] - The total issued and paid-up share capital as of June 30, 2022, was HKD 5,026,000, unchanged from the previous year[89] - As of June 30, 2022, major shareholders include Luks Family (PTC) Limited with 272,824,862 shares (54.29%) and Luk Ngai with 276,214,862 shares (54.96%) [106] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the combined roles of Chairman and CEO [111] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and policies adopted by the company [113] - The board approved the publication of the interim unaudited consolidated financial statements on August 31, 2022, ensuring timely financial reporting[94] Market Outlook - The group anticipates continued challenges for the cement business in the second half of 2022 due to high coal prices and supply shortages[12] - The hotel business in Hong Kong is expected to maintain a stable recovery in the second half of 2022 as restrictions are gradually eased[7] - Vietnam's GDP growth reached 7.72% in the second quarter of 2022, which is expected to benefit the recovery of the construction industry[7]

Financial Performance - For the year ended December 31, 2021, the group's revenue was HKD 513,230,000, a decrease of approximately 2.9% compared to HKD 528,495,000 in the previous year[9] - The cement business generated revenue of HKD 310,302,000, down approximately 7.3% year-on-year[9] - The property investment business reported revenue of HKD 149,324,000, a decrease of about 0.6% compared to the previous year[9] - The hotel business saw revenue increase by approximately 29.7%, reaching HKD 41,004,000 compared to the previous year[9] - The group recorded a net profit attributable to shareholders of HKD 84,669,000, an increase of approximately 37.6% from HKD 61,511,000 in the previous year[9] - Basic earnings per share were HKD 0.168, compared to HKD 0.122 in 2020[9] Impact of COVID-19 - The group's operations were significantly impacted by the COVID-19 pandemic, particularly in the third quarter of 2021, leading to a near halt in economic activity in Vietnam[7] - The group adapted its hotel strategy to attract local residents, successfully turning a previous loss into profit for the hotel business[7] - The global economic environment remains volatile, posing challenges for the group's operations in 2022[8] Cement Business Challenges - The cement plant in Vietnam faced significant challenges in 2021, with cement and clinker sales volume decreasing to 893,000 tons, down approximately 7.8% from 969,000 tons in the previous year[12] - The after-tax profit for the cement business was HKD 4,813,000, a decrease of about 34.4% compared to HKD 7,332,000 in the previous year[12] - The construction and engineering projects in Vietnam faced significant delays due to strict pandemic measures, impacting local cement demand[12] - The logistics costs and prices of raw materials, including coal, surged, with coal prices rising to USD 250 per ton, more than tripling from USD 80 per ton in the previous year[12] Government Policies and Economic Outlook - The Vietnamese government's shift to a coexistence strategy with the virus is expected to positively impact the group's cement plant and trade center operations[8] - The Vietnamese government lifted all entry restrictions on March 15, 2022, which is expected to positively impact the economy and cement demand[12] - The government has implemented a series of stimulus measures, including reducing the value-added tax on cement from 10% to 8%, which will significantly improve the operating environment for the cement plant[12] Property and Investment - The overall rental income from leasing properties in Hong Kong and mainland China remained stable in 2021, with a fair value increase of investment properties amounting to approximately HKD 32,868,000, up from HKD 9,052,000 in 2020[16] - The group acquired a commercial and residential property in Hong Kong for HKD 183,800,000, which includes approximately 2,000 square feet of commercial space and 16,000 square feet of residential space[22] - The group plans to redevelop the acquired property, increasing the floor area to 21,600 square feet, which is expected to contribute to future profitability and cash flow[22] Environmental Management - The company conducts quarterly environmental measurements in accordance with Vietnamese environmental legislation[53] - The company adheres to various Vietnamese environmental standards for air quality and emissions[54] - The company is focused on controlling environmental issues related to emissions, dust, noise, and water[53] - The company employs environmental monitoring firms to ensure compliance with regulations[53] - The company plans to continue its efforts in environmental management and compliance with national standards[54] Employee Management and Safety - The cement plant provided training to all 889 employees, focusing on updated industrial safety practices and technical knowledge relevant to their departments[84] - The cement plant has a safety team that supervises workplace safety and provides safety training[77] - The hotel division emphasizes gender equality, encouraging female participation in management and operations[72] - All employees are covered by social insurance, medical insurance, and unemployment insurance as per Vietnamese law[71] Corporate Governance - The company emphasizes high standards of corporate governance, adhering to the Hong Kong Stock Exchange's corporate governance code[100] - The board of directors consists of eight members, including the chairperson and five executive directors, with independent non-executive directors serving a one-year term subject to re-election[104] - The audit committee, composed entirely of independent non-executive directors, held two meetings in 2021, with all members present[115] - The company has established three main board committees: the audit committee, the remuneration committee, and the nomination committee[114] Financial Reporting and Audit - The independent auditor's report confirms that the consolidated financial statements reflect a true and fair view of the group's financial position as of December 31, 2021[184] - The board is responsible for preparing true and fair consolidated financial statements according to Hong Kong Financial Reporting Standards and the Companies Ordinance[196] - The audit committee assists the board in fulfilling its responsibilities and oversees the financial reporting process of the group[197] Shareholder Information - The company has a significant shareholder structure, with Luks Family (PTC) Limited holding 272,824,862 shares, representing 54.29% of the issued share capital[177] - The company declared an interim dividend of HKD 0.03 per share on October 8, 2021, and proposed a final dividend of HKD 0.03 per share for shareholders listed on June 10, 2022[141] - The company’s available distributable reserves as of December 31, 2021, were approximately HKD 687,054,000, with HKD 15,077,000 proposed as the final dividend for the year[149]

Revenue Performance - For the first half of 2021, the group's revenue was HKD 277,665,000, a decrease of approximately 1.3% compared to HKD 281,440,000 in the same period last year[7] - The cement business generated revenue of HKD 175,567,000, representing a decrease of about 6.4% year-on-year[7] - The property investment segment recorded revenue of HKD 76,970,000, an increase of approximately 3% compared to the previous year[7] - The hotel business achieved revenue of HKD 18,822,000, marking a significant increase of about 38.4% year-on-year[7] - Total revenue from customer contracts for the six months ended June 30, 2021, was HKD 218,148,000, a decrease from HKD 224,488,000 in the same period of 2020, representing a decline of approximately 2.0%[78] - Revenue from electronic product sales increased to HKD 6,306,000, up 13.5% from HKD 5,554,000 in the previous year[74] - Total revenue from investment property rental was HKD 59,517,000, compared to HKD 56,952,000 in the prior year, reflecting a growth of 4.5%[74] Profitability - The group recorded an unaudited profit attributable to shareholders of HKD 42,488,000, up approximately 41.9% from HKD 29,939,000 in the same period last year[9] - The net profit for the period was HKD 42,109,000, up 45.1% from HKD 29,039,000 in the previous year[34] - The company reported a pre-tax profit of HKD 7,892,000 for the six months ended June 30, 2021, compared to HKD 3,884,000 in the same period of 2020, indicating an increase of approximately 102.6%[81] - The company recorded a total tax expense of HKD 15,453,000 for the six months ended June 30, 2021, compared to HKD 12,715,000 in the same period of 2020, representing an increase of approximately 21.6%[87] Earnings Per Share - The basic earnings per share for the first six months were approximately HKD 0.085, compared to HKD 0.059 in the same period last year[9] - The company’s basic and diluted earnings per share increased to HKD 0.085, compared to HKD 0.059 in the same period last year[34] Cash Flow and Financial Position - The group’s cash, bank balances, and time deposits as of June 30, 2021, amounted to HKD 480,226,000, an increase from HKD 454,752,000 at the end of 2020[24] - Operating cash flow for the six months ended June 30, 2021, was HKD 26,612,000, down from HKD 46,702,000 in the previous year, indicating a decline of approximately 43%[46] - Cash and cash equivalents at the end of June 30, 2021, were HKD 264,219,000, a decrease from HKD 373,882,000 at the end of June 30, 2020[49] - The company’s total assets less current liabilities amounted to HKD 2,742,194,000, an increase from HKD 2,706,041,000 as of December 31, 2020[40] - The company’s total equity rose to HKD 2,490,526,000, compared to HKD 2,456,143,000 at the end of the previous year[40] Dividends - The group declared an interim dividend of HKD 0.03 per share to shareholders[21] - The company declared an interim dividend of HKD 0.03 per share, totaling HKD 15,077,000, compared to HKD 10,106,000 in the previous year, an increase of approximately 49.2%[89] - The interim dividend declared for the six months ended June 30, 2021, is HKD 0.03 per share, compared to HKD 0.02 per share for the same period in 2020, reflecting a 50% increase[106] Market Conditions and Future Outlook - The group anticipates that the new wave of COVID-19 will negatively impact cement sales in the second half of the year, although the exact extent remains uncertain[11] - Vietnam's GDP growth for the first half of 2021 was 5.64%, making it one of the better-performing economies globally[7] - The group continues to focus on expanding its market presence and enhancing its product offerings in response to changing market conditions[74] - The group’s management believes that the company is well-positioned for future growth despite the challenges posed by the market[98] Capital Commitments and Investments - The group’s capital commitments as of June 30, 2021, were HKD 170,996,000, a significant increase from HKD 4,672,000 at the end of 2020[29] - The group acquired a commercial and residential property in Hong Kong for HKD 183.8 million, which includes approximately 2,000 square feet of commercial space and 16,000 square feet of residential space[20] - The company purchased property, plant, and equipment amounting to approximately HKD 2,266,000 during the six months ended June 30, 2021, a decrease from HKD 10,545,000 in the same period of 2020[91] Financial Ratios and Metrics - The company’s total liabilities decreased from HKD 1,999,461,000 as of January 1, 2021, to HKD 1,999,461,000 as of June 30, 2021, indicating stable financial leverage[43] - The company’s financing costs increased slightly to HKD 866,000 from HKD 831,000 year-on-year[34] - The company incurred a total interest expense of HKD 866,000 for the six months ended June 30, 2021, compared to HKD 831,000 in the same period of 2020[46] Accounting Policies and Compliance - The group has adopted the revised Hong Kong Financial Reporting Standards effective from January 1, 2021, which did not have any impact on the financial position and performance[60] - The group has implemented a practical expedient for lease accounting related to rent concessions directly arising from the COVID-19 pandemic, which allows for certain lease modifications without affecting the financial statements[61] - The group has not identified any significant impacts from the accounting policy changes on its financial reporting for the current period[60] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and policies adopted by the company[122]

Financial Performance - The group's total revenue for the year ended December 31, 2020, was HKD 528,495,000, a decrease of approximately 18.7% compared to HKD 650,089,000 in the previous year[11]. - The cement business generated revenue of HKD 334,880,000, down approximately 22.5% year-on-year[11]. - The property investment business recorded revenue of HKD 150,162,000, a slight increase of about 2.1% compared to the previous year[11]. - The hotel business revenue was HKD 31,609,000, reflecting a decline of approximately 44.5% year-on-year[11]. - The group's net profit attributable to shareholders was HKD 61,511,000, down about 49.7% from HKD 122,280,000 in the previous year[11]. - Basic earnings per share were HKD 0.122, compared to HKD 0.242 in 2019[11]. Cement Market Insights - Vietnam's GDP growth rate for 2020 was 2.91%, the lowest in a decade but among the best globally[10]. - Cement sales in Vietnam decreased by approximately 4.3% in 2020 due to the impact of the Covid-19 pandemic[13]. - The group anticipates a recovery in the cement demand in the second half of 2021, driven by a rebound in the real estate market and increased public investment[10]. - The cement plant's sales and profit declined in 2020, with cement and clinker sales at 969,000 tons, down approximately 23.7% from 1,270,000 tons in the previous year[15]. - The after-tax profit for the cement business was HKD 7,332,000, a decrease of about 49.8% compared to HKD 14,606,000 in the previous year[15]. - Vietnam's domestic cement consumption is expected to slowly recover in 2021, driven by a rebound in the real estate market and increased public spending on infrastructure[16]. Environmental Compliance and Initiatives - The company conducts quarterly environmental measurements in accordance with Vietnamese environmental legislation to monitor emissions and pollutants[56]. - The company plans to continue monitoring air quality, noise, and wastewater in compliance with national standards[57]. - The company aims to implement effective technical measures to reduce NOx emissions generated during the clinker burning process[47]. - The cement plant installed a real-time emission monitoring system (CEMS) to comply with environmental regulations, approved for use in August 2020[59]. - The hotel implemented energy-saving measures, achieving 99% LED lighting usage and utilizing high-efficiency water-cooled chillers[70]. - The cement plant's waste heat recovery system is under development, with 90% of the upgrade work completed by the end of 2020[64]. Employee Welfare and Training - As of December 31, 2020, the cement plant employed approximately 967 staff, all of whom received salaries above the local minimum wage[73]. - The cement plant provided training to all 967 employees, focusing on industrial safety practices and technical knowledge, with an average training time of 8-10 hours per employee[80][81]. - The hotel has implemented various training programs to enhance employee skills, including emergency response and occupational safety training[80]. - The youngest employee at the cement plant was 22 years old, ensuring compliance with child labor laws[84]. - The company is committed to providing a safe working environment and has not reported any significant non-compliance with labor laws during the reporting period[85]. Corporate Governance - The group emphasizes high corporate governance standards, adhering to the Hong Kong Stock Exchange's corporate governance code[99]. - The roles of the chairman and CEO are held by the same individual, which deviates from the corporate governance code but is deemed acceptable for business stability[100]. - The board of directors consists of eight members, including the chairperson and five executive directors, with independent non-executive directors serving a one-year term subject to re-election[101]. - The audit committee, composed entirely of independent non-executive directors, held two meetings in 2020, reviewing financial reports and discussing management's analysis of business performance[114][115]. - The company has not faced any claims against its directors and officers during the year, indicating effective risk management[109]. Shareholder Information - The group paid HKD 2,405,000 to Ernst & Young for audit services and HKD 92,500 for tax services for the fiscal year ending December 31, 2020[130]. - The board proposed a final dividend of HKD 0.03 per share to shareholders listed on June 21, 2021, following an interim dividend of HKD 0.02 per share paid on October 16, 2020[141]. - As of December 31, 2020, the company had distributable reserves of approximately HKD 739,336,000, of which HKD 15,077,000 is proposed for the final dividend[152]. - The company has confirmed that at least 25% of its issued share capital is held by the public as of the report date[182]. - The independent auditor's report states that the consolidated financial statements reflect the group's financial position accurately as of December 31, 2020[185]. Investment Properties and Valuation - The total value of investment properties held by the group as of December 31, 2020, is HKD 1,182,000,000[189]. - The hotel business of the company holds properties valued at approximately HKD 549 million as of December 31, 2020[192]. - Management has engaged external valuers to estimate the fair value of hotel properties, which is critical due to the net book amount of HKD 549 million[192]. - The impairment assessment of hotel properties is significant as it relies on estimates such as expected rental rates, projected cash flows, and discount rates[192].

Financial Performance - The group's revenue for the first half of 2020 was HKD 281,440,000, a decrease of approximately 14.9% compared to HKD 330,624,000 in the same period last year[7] - The cement business generated revenue of HKD 187,563,000, down about 14.5% year-on-year, while property investment revenue increased by approximately 5% to HKD 74,724,000[7] - The hotel business recorded revenue of HKD 13,599,000, a significant decline of approximately 59.4% compared to the previous year[7] - The group reported a profit attributable to equity holders of HKD 29,939,000, a decrease of about 46.9% from HKD 56,339,000 in the same period last year[8] - Revenue from cement sales decreased to HKD 187,563,000, down 14.5% from HKD 219,307,000 in the previous year[59] - Hotel operations revenue dropped significantly to HKD 13,599,000, a decline of 59.4% compared to HKD 33,520,000 in the prior year[59] - Total revenue for the six months ended June 30, 2020, was HKD 281,440,000, down 15% from HKD 330,624,000 in the same period last year[59] - The group reported a pre-tax profit of HKD 29,039,000, compared to HKD 56,208,000 in the previous year[67] - Total tax expense for the period was HKD 12,715,000, down from HKD 15,146,000 in the same period last year[71] Business Segment Performance - The cement plant's sales volume was 550,000 tons, down approximately 16.5% from 659,000 tons in the previous year[11] - The after-tax profit from the cement business was HKD 5,314,000, a decrease of about 58.7% compared to HKD 12,879,000 in the same period last year[11] - The average occupancy rate for the hotel business in the first half of 2020 was 53.5%, down approximately 40% from 89.4% in the same period last year[18] - The hotel business generated a revenue contribution of HKD 13,599,000 for the first half of 2020, representing a decline of 59.4% compared to the same period last year[18] - The average room rate decreased by approximately 25% compared to the same period last year[18] - The group recorded a loss of HKD 15,714,000 for the hotel business after depreciation, compared to a loss of HKD 4,933,000 in the previous year[18] Economic Context - Vietnam's GDP growth rate for the first half of 2020 was 1.81%, the lowest in 12 years, but still better than many other countries experiencing economic contraction[7] - The group anticipates continued pressure on business performance in the short term due to the ongoing global pandemic[6] Strategic Initiatives - The group plans to increase public investment and expedite residential and infrastructure projects to support the economy in the second half of the year[12] - The group plans to delay the development of the "Hue Plaza" project in Vietnam due to the impact of the pandemic and government restrictions[21] Cash Flow and Financial Position - The group’s cash, bank balances, and time deposits as of June 30, 2020, amounted to HKD 414,630,000, an increase from HKD 381,055,000 as of December 31, 2019[25] - The total bank and other borrowings were HKD 12,500,000 as of June 30, 2020, down from HKD 16,250,000 as of December 31, 2019[25] - The group recorded an exchange loss of HKD 2,404,000 due to currency fluctuations, with the Vietnamese Dong depreciating by approximately 0.65% against the Hong Kong Dollar[29] - Current assets increased to HKD 555,301,000, up 12.43% from HKD 493,979,000 in the previous period[38] - Total liabilities increased to HKD 180,858,000, representing a rise of 14.59% from HKD 157,829,000 as of December 31, 2019[39] - The net asset value as of June 30, 2020, was HKD 2,425,603,000, slightly up from HKD 2,422,470,000 at the end of 2019[39] - The company reported an increase in inventory to HKD 80,465,000, which is a 17.54% increase from HKD 68,463,000[38] - Cash and cash equivalents rose to HKD 414,630,000, an increase of 8.73% from HKD 381,055,000[38] - The total equity attributable to owners of the parent company was HKD 2,454,009,000, compared to HKD 2,450,758,000 at the end of 2019[39] - Non-current liabilities decreased to HKD 242,363,000, down 2.83% from HKD 248,077,000[39] - The company’s total assets less current liabilities stood at HKD 2,667,966,000, a slight decrease from HKD 2,670,547,000[39] - The company’s retained earnings as of June 30, 2020, were HKD 2,014,241,000, reflecting an increase from HKD 1,999,461,000[43] Cash Flow Analysis - Operating cash flow for the six months ended June 30, 2020, was HKD 57,677,000, a decrease of 63.0% compared to HKD 155,938,000 in 2019[46] - Net cash inflow from operating activities was HKD 46,702,000, down from HKD 134,103,000, representing a decline of 65.1%[46] - Net cash inflow from investing activities increased to HKD 74,446,000 from HKD 63,268,000, an increase of 17.3%[46] - Financing activities resulted in a net cash outflow of HKD 4,492,000, compared to a net inflow of HKD 9,738,000 in the previous year[46] - Cash and cash equivalents at the end of the period were HKD 373,882,000, slightly down from HKD 381,946,000 in 2019[46] - The cash balance analysis showed cash and bank deposits of HKD 106,435,000, down from HKD 115,709,000, a decrease of 8.8%[46] - The company reported a significant reduction in interest paid, amounting to HKD 831,000 compared to HKD 1,301,000 in the previous year[46] - The total cash inflow from operating activities was significantly impacted by a decrease in revenue due to market conditions[46] - The company maintained a strong cash position despite the challenges, with total cash and cash equivalents at HKD 373,882,000[46] Shareholder Information - The board declared an interim dividend of HKD 0.02 per share for shareholders[22] - The interim dividend declared is HKD 0.02 per share, down from HKD 0.06 per share for the same period last year[90] - The total issued and fully paid ordinary shares as of June 30, 2020, were 505,297,418 shares, unchanged from the previous period[81] - As of June 30, 2020, the major shareholders include Luks Family (PTC) Limited with 53.99% and Lu Yi with 54.66% of the issued share capital[102] Compliance and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance and transparency[48] - The audit committee consists of three independent non-executive directors, who reviewed the accounting principles and policies adopted by the company[109] - The company confirmed that all directors complied with the standard code of conduct for securities trading during the interim reporting period[108] - The company believes that having the same person serve as both Chairman and CEO enhances decision-making efficiency and helps seize business opportunities more promptly[107] Other Financial Metrics - Interest income for the period was HKD 3,298,000, slightly down from HKD 3,362,000 in the previous year[65] - The cost of goods sold for the period was HKD 173,048,000, a decrease from HKD 195,726,000 in the prior year[67] - The group’s financing costs decreased to HKD 831,000 from HKD 1,301,000 in the previous year[66] - Revenue from property management and related services increased slightly to HKD 17,772,000 from HKD 17,589,000 in the prior year[59] - The group did not generate taxable profits in Hong Kong for the current period, consistent with the previous year[70] - The group recorded approximately HKD 10,545,000 in property, plant, and equipment purchases for the six months ended June 30, 2020, compared to HKD 9,010,000 for the same period in 2019, representing an increase of 17%[75] - The net accounts receivable as of June 30, 2020, amounted to HKD 52,869,000, an increase from HKD 32,630,000 as of December 31, 2019, reflecting a growth of 62%[77] - Accounts payable as of June 30, 2020, totaled HKD 23,205,000, compared to HKD 10,628,000 as of December 31, 2019, indicating a significant increase of 118%[80] - The group has capital commitments of HKD 3,603,000 as of June 30, 2020, down from HKD 7,372,000 as of December 31, 2019, showing a decrease of 51%[83] - Short-term employee benefits for management personnel were HKD 4,503,000 for the six months ended June 30, 2020, down from HKD 5,946,000 in the same period last year, a reduction of 24%[84] - The group has no significant contingent liabilities as of the reporting date[85]

Financial Performance - The group's revenue for the first half of 2020 was HKD 281,440,000, a decrease of approximately 14.9% compared to HKD 330,624,000 in the same period last year[7] - The cement business generated revenue of HKD 187,563,000, down about 14.5% year-on-year, while property investment revenue increased by approximately 5% to HKD 74,724,000[7] - The hotel business reported revenue of HKD 13,599,000, a significant decline of approximately 59.4% compared to the previous year[7] - The group recorded a profit attributable to shareholders of HKD 29,939,000, a decrease of about 46.9% from HKD 56,339,000 in the same period last year[8] - Revenue from cement sales decreased to HKD 187,563,000, down 14.5% from HKD 219,307,000 in the previous year[59] - Hotel operation revenue dropped significantly to HKD 13,599,000, a decline of 59.4% compared to HKD 33,520,000 in the prior year[59] - Total revenue from customer contracts amounted to HKD 224,488,000, a decrease of 19.0% from HKD 277,024,000 year-over-year[61] - The group reported a pre-tax profit of HKD 29,039,000, compared to HKD 56,208,000 in the same period last year, reflecting a decline of 48.3%[67] - Total tax expense for the period was HKD 12,715,000, down from HKD 15,146,000 in the previous year[71] - The cost of goods sold for the period was HKD 173,048,000, a decrease from HKD 195,726,000 in the previous year[67] Business Segments - Cement sales volume was 550,000 tons, down approximately 16.5% from 659,000 tons in the same period last year[11] - The after-tax profit from the cement business was HKD 5,314,000, a decrease of about 58.7% compared to HKD 12,879,000 in the previous year[11] - The hotel business experienced a significant impact from the COVID-19 pandemic, with a 90% decrease in visitors to Hong Kong in the first half of 2020 compared to the same period last year[17] - The average occupancy rate for the hotel business in the first six months of 2020 was 53.5%, down approximately 40% from 89.4% in the same period last year[18] - The hotel business recorded a loss of HKD 15,714,000 after depreciation in the first half of 2020, compared to a loss of HKD 4,933,000 in the same period last year[18] Economic Context - The Vietnamese GDP growth rate for the first half of 2020 was 1.81%, the lowest in 12 years, but still better than many other countries experiencing economic contraction[7] - The group anticipates continued pressure on business performance in the short term due to the ongoing global pandemic[6] Cash and Liquidity - The group’s cash, bank balances, and time deposits as of June 30, 2020, amounted to HKD 414,630,000, an increase from HKD 381,055,000 at the end of 2019[25] - The group’s total bank and other borrowings were HKD 12,500,000 as of June 30, 2020, down from HKD 16,250,000 at the end of 2019[25] - Operating cash flow for the six months ended June 30, 2020, was HKD 57,677,000, a decrease of 63.0% compared to HKD 155,938,000 in 2019[46] - Net cash inflow from operating activities was HKD 46,702,000, down from HKD 134,103,000, representing a decline of 65.1%[46] - Cash and cash equivalents rose to HKD 414,630,000, an increase of 8.83% from HKD 381,055,000 at the end of 2019[38] - The cash balance analysis showed cash and bank deposits of HKD 106,435,000, down from HKD 115,709,000, a decrease of 8.8%[46] - The company maintained a strong cash position with cash and cash equivalents at the beginning of the period at HKD 258,624,000[46] Assets and Liabilities - As of June 30, 2020, total non-current assets amounted to HKD 2,293,523,000, a decrease of 1.74% from HKD 2,334,397,000 as of December 31, 2019[38] - Current assets increased to HKD 555,301,000, up 12.43% from HKD 493,979,000 at the end of 2019[38] - Total liabilities increased to HKD 180,858,000, representing a rise of 14.59% compared to HKD 157,829,000 at the end of 2019[39] - The net asset value as of June 30, 2020, was HKD 2,425,603,000, slightly up from HKD 2,422,470,000 at the end of 2019[39] - The company’s current liabilities included accounts payable of HKD 23,205,000, which is a significant increase of 118.73% from HKD 10,628,000 at the end of 2019[38] - Non-current liabilities decreased to HKD 242,363,000, down 2.77% from HKD 248,077,000 at the end of 2019[39] - The company’s total assets less current liabilities stood at HKD 2,667,966,000, a slight decrease from HKD 2,670,547,000 at the end of 2019[39] Shareholder Information - The board declared an interim dividend of HKD 0.02 per share for shareholders[22] - The interim dividend declared is HKD 0.02 per share, down from HKD 0.06 per share for the same period last year[90] - The issued and fully paid share capital as of June 30, 2020, was HKD 5,053,000, unchanged from December 31, 2019[81] - As of June 30, 2020, the major shareholders include Luks Family (PTC) Limited holding 53.99% and Lu Yi holding 54.66% of the issued share capital[102] Management and Governance - The company believes that having the same person serve as both Chairman and CEO enhances decision-making efficiency[107] - The audit committee consists of three independent non-executive directors, ensuring oversight of accounting principles and internal controls[109] - All directors confirmed compliance with the standard code of conduct for securities trading during the interim reporting period[108]