Financial Performance - Revenue from contracts with customers decreased to HK$384,121,000, down 10.5% from HK$429,140,000 in the same period of 2023[12]. - Operating profit fell to HK$24,689,000, a decline of 66.1% compared to HK$72,677,000 in 2023[12]. - Profit for the period was HK$5,313,000, down 90.3% from HK$54,869,000 in the previous year[12]. - Total comprehensive loss for the period was HK$3,190,000, compared to a total comprehensive income of HK$34,237,000 in the prior year[36]. - The Group's profit attributable to equity holders for the six-month period was HK$34,000, a significant decrease from HK$50,743,000 in 2023[72]. Revenue Breakdown - The security, insurance, and infrastructure business generated total revenue of HK$250,200,000 in the first half of 2024, accounting for approximately 65% of the Group's total revenue[14]. - Revenue from the healthcare business decreased to HK$6,144,000 in 2024 from HK$10,022,000 in 2023, resulting in a net loss of HK$118,000 compared to a net profit of HK$166,000 in the previous year[19]. - Revenue from Security, Insurance and Infrastructure Business (SII Business) was HK$250,200,000, while Aviation and Logistics Business (AL Business) generated HK$117,052,000, and Healthcare Business (HC Business) contributed HK$6,144,000, totaling HK$384,121,000 for the current period[59]. Cost and Expenses - Employee benefit expenses decreased to HK$166,547,000, down 18.3% from HK$203,808,000 in 2023[12]. - The cost of direct materials and job expenses rose to HK$96,420,000, an increase of 23.6% from HK$77,945,000 in 2023[12]. - Rental expenses decreased to HK$2,845,000 from HK$3,659,000 in 2023, while depreciation and amortization costs were HK$16,571,000, down from HK$18,822,000[68]. Cash Flow and Liquidity - The Group generated net cash inflows from operating activities of HK$12,923,000 for the period ending June 30, 2024, compared to HK$8,558,000 for the same period in 2023[29]. - Cash and cash equivalents at the end of the period reached HK$201,847,000, compared to HK$186,484,000 at the end of the same period in 2023, marking an increase of 8.2%[42]. - The company reported a net cash used in investing activities of HK$6,761,000, which is a significant increase from HK$1,917,000 in the previous year[41]. Assets and Liabilities - As of June 30, 2024, the Group recorded total assets of HK$1,024,336,000, a decrease from HK$1,056,457,000 as of December 31, 2023[28]. - The Group's total liabilities amounted to HK$526,419,000 as of June 30, 2024, down from HK$553,485,000 as of December 31, 2023[28]. - Net assets decreased to HK$497,917,000 as of June 30, 2024, down from HK$502,972,000 as of December 31, 2023, reflecting a decrease of approximately 1.1%[38]. Share Capital and Dividends - The Company issued convertible bonds with an aggregate principal amount of HK$210,000,000, convertible into 210,000,000 shares at a conversion price of HK$1.00 per share[29]. - No interim dividend was recommended for the six-month period ended June 30, 2024, consistent with the previous year[73]. - The recommendation of dividend payments is subject to the Board's discretion and will consider various factors including financial performance and working capital requirements[30]. Legal and Compliance - The Group is facing contingent liabilities totaling approximately US$5,800,000 (equivalent to approximately HK$45,500,000) related to indemnification demands from Aircraft Engine Leasing Finance Inc.[106]. - The Group's legal advisor is confident in the defense against indemnification demands, indicating a low probability of incurring losses[110]. - The Company has complied with the Corporate Governance Code throughout the six-month period ended June 30, 2024[166]. Employee Information - As of June 30, 2024, the Group employed a total of 2,386 employees, an increase from 1,998 employees as of June 30, 2023[171]. - The Group's key management personnel compensation for the six-month period was HK$7,979,000, a decrease from HK$10,008,000 in 2023[123]. - Employee remuneration is determined based on market salary levels, individual responsibilities, and Group performance, with additional benefits and discretionary bonuses offered[171]. Strategic Developments - The acquisition of the DeWe Group has solidified the Group's presence in the security sector, targeting more lucrative security projects in Hong Kong[24]. - The aviation division plans to expand its offerings to include a wider range of air charter and air ambulance services in 2024[26]. - The Group plans to closely monitor the logistics business and consider repositioning strategies to minimize losses[18].

Stock Options and Rewards - No stock options or rewards were granted under the stock plan during the year ended December 31, 2023 [2] - Participants must pay HKD 1 within 28 days after the grant date to accept stock options [2] Profit Guarantee and Board Opinion - The Board did not express an opinion on the profit guarantee due to the failure to achieve the profit guarantee obligations under the acquisition agreement of De Wei Group [3]

Financial Performance - Revenue from customer contracts for the six months ended June 30, 2024, was HKD 384,121,000, a decrease of 10.5% compared to HKD 429,140,000 for the same period in 2023[2] - Operating profit for the period was HKD 24,689,000, down 66.1% from HKD 72,677,000 in the previous year[2] - Net profit for the period was HKD 5,313,000, a significant decline of 90.3% compared to HKD 54,869,000 in the same period last year[3] - The group reported a net profit of HKD 54,869,000 for the six months ended June 30, 2024, compared to HKD 62,814,000 in the previous year, indicating a decrease of approximately 12.5%[12] - The group’s profit for the six-month period ended June 30, 2024, was HKD 34,000, compared to HKD 50,743,000 for the same period in 2023, reflecting a significant decrease[18] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 1,024,336,000, down from HKD 1,056,457,000 at the end of 2023[4] - Current liabilities decreased to HKD 490,752,000 from HKD 519,906,000 at the end of 2023, indicating improved liquidity management[5] - Total assets as of June 30, 2024, amounted to HKD 1,024,336,000, with total liabilities of HKD 526,419,000, resulting in a net asset position[10] - The fair value of convertible bonds as of June 30, 2024, was HKD 219,070,000, an increase from HKD 209,049,000 as of December 31, 2023[25] - The capital debt ratio (total loans to total assets) was approximately 21.4% as of June 30, 2024, up from 19.8% as of December 31, 2023[42] Cash Flow and Expenses - Cash and cash equivalents increased slightly to HKD 201,847,000 from HKD 198,111,000 at the end of 2023, reflecting stable cash flow[4] - Employee benefits expenses decreased to HKD 166,547,000 from HKD 203,808,000, showing cost-cutting measures[2] - The group’s depreciation expense for the six months ended June 30, 2024, was HKD 12,213,000, compared to HKD 11,773,000 in the same period of 2023, reflecting an increase of approximately 3.7%[12] - Interest expenses for the six months ended June 30, 2024, totaled HKD 10,264,000, slightly higher than HKD 10,120,000 in the previous year, indicating a year-over-year increase of about 1.4%[13] Business Segments - Operating profit for the security, insurance, and infrastructure business was HKD 49,344,000, while the aviation and logistics business reported an operating profit of HKD 2,950,000, contributing to a total operating profit of HKD 24,689,000 for the group[10] - The security, insurance, and infrastructure business generated total revenue of HKD 250,200,000 for the period, accounting for about 65% of the group’s total revenue[31] - The aviation segment's revenue increased by HKD 56,524,000 to HKD 103,863,000, with net profit rising from HKD 3,744,000 to HKD 15,115,000, attributed to improved aircraft utilization[34] - The logistics segment's revenue from Shanghai Logistics increased approximately 19% to HKD 60,528,000, while maintaining a loss of HKD 1,401,000[36] - The healthcare segment generated total revenue of HKD 6,144,000, down from HKD 10,022,000, resulting in a net loss of HKD 118,000, as cross-border operations and online medical applications underperformed[37] Acquisitions and Investments - The acquisition of DeWe Group involved a cash payment of HKD 200,000,000 and potential share issuance based on profit targets, with 58,567,221 shares issued during the first relevant period[23] - The first target profit for DeWe Group was HKD 50,000,000, but the reported profit was HKD 38,069,000, leading to no shares issued for the second relevant period due to unmet minimum profit targets[23] - The fair value of the contingent consideration for the acquisition was estimated at HKD 135,055,000, based on expected profit scenarios[23] - The group has been actively seeking new investment opportunities to expand its revenue base and improve profitability[47] Legal Matters - The group is involved in a legal dispute with Aircraft Engine Leasing Finance Inc., with claims totaling approximately $5,800,000 (around HKD 45,500,000) related to a purchase agreement and repayment agreement[48] - The group has filed a claim exceeding €10,000,000 (approximately HKD 83,300,000) against the claimant for breach of contract and other legal responsibilities[49] - Shanghai Logistics, a wholly-owned subsidiary, is facing a claim of RMB 28,700,000 (approximately HKD 31,800,000) while counterclaiming RMB 11,400,000 (approximately HKD 12,700,000) against the same customer[49] - The potential liability for Shanghai Logistics is estimated at RMB 1,440,000 (approximately HKD 1,600,000), significantly lower than the claim amount[50] Employee Information - As of June 30, 2024, the group employed a total of 2,386 employees, an increase from 1,998 employees as of June 30, 2023[57] - Employee benefit expenses for the six months ended June 30, 2024, amounted to HKD 166,547,000, compared to HKD 203,808,000 for the same period in 2023[57] Dividend and Shareholder Information - The company does not recommend any interim dividend for the six-month period ended June 30, 2024, consistent with the previous year[19] - The average number of ordinary shares issued during the six-month period ended June 30, 2024, was 2,403,385,881, an increase from 2,369,918,898 in the previous year[18] - The net asset value per share (excluding non-controlling interests) was approximately HKD 0.16 as of June 30, 2024, consistent with the value as of December 31, 2023[42] Financial Reporting and Compliance - The group expects that the recent amendments to the Hong Kong Financial Reporting Standards will not have a significant impact on its financial statements[8] - The group anticipates that the new accounting standards effective from January 1, 2024, will not materially affect its operations or financial reporting[7] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial statements for the six months ended June 30, 2024[58] - The interim report will be published on the Hong Kong Stock Exchange and the company's website, containing all information required by the listing rules[60]

Financial Performance - Total assets as of 31 December 2023 were HK$1,056,457,000, a decrease from HK$1,091,440,000 in 2022[2] - Net asset value per share (excluding non-controlling interests) increased to HK$0.16 in 2023 from HK$0.15 in 2022[2] - Available cash and bank balances were HK$198,111,000 in 2023, up from HK$186,790,000 in 2022[2] - Total borrowings increased to HK$209,049,000 in 2023 from HK$190,084,000 in 2022[2] - Gearing ratio rose to 19.8% in 2023 from 17.5% in 2022[2] - Consolidated revenue for 2023 decreased by 16% to HK$812,918,000 compared to HK$964,246,000 in 2022, primarily due to a significant decline in the logistics segment[46] - Operating profit improved significantly to HK$76,318,000 in 2023 from HK$4,210,000 in 2022, reflecting better operational performance[41] - Security, infrastructure, and insurance business grew to HK$572,533,000 in 2023, up from HK$527,518,000 in 2022, becoming the core revenue driver[46][49] - Aviation and logistics business revenue dropped sharply to HK$200,299,000 in 2023 from HK$371,316,000 in 2022, impacting overall revenue[46] - Cash and cash balances increased by HK$11,321,000 to HK$198,111,000 in 2023, driven by net cash generated from operating activities of HK$51,218,000[70] - Total assets decreased slightly to HK$1,056,457,000 in 2023 from HK$1,091,440,000 in 2022, while shareholders' funds increased to HK$382,922,000[43] - The Group achieved a net profit of HK$53,488,000 in 2023, a significant turnaround from a net loss of HK$26,250,000 in 2022[41] - Basic earnings per share improved to 2.14 cents in 2023 compared to a loss of 1.24 cents per share in 2022[43] - The company turned a loss of HK$26,250,000 in 2022 into a profit of HK$53,488,000 in 2023, primarily due to improved performance in the security, infrastructure, and aviation sectors[74][99] - The security segment's revenue increased by 21% from HK$423,657,000 in 2022 to HK$515,503,000 in 2023, contributing approximately 63% of the company's total revenue[76][102] - The infrastructure segment recognized a total revenue of HK$55,840,000 in 2023, down from HK$103,761,000 in 2022, with a profit of HK$8,467,000[80] - The aviation and logistics segment reported a decrease in revenue by approximately HK$171,017,000, but still managed to achieve an operating profit of HK$47,297,000[84][106] - The company's consolidated revenue for 2023 was HK$812,918,000, a 16% decrease from HK$964,246,000 in 2022, primarily due to a significant reduction in logistics business revenue[98] - Kenyan aviation arm's profit decreased from HK$12,788,000 in 2022 to HK$9,653,000 in 2023, a decline of 24.5%, due to reduced demand for air ambulance services and termination of a major customer contract[107] - The insurance segment recorded a profit of HK$4,209,000 in 2023, up 39.7% from HK$3,012,000 in 2022[108] - Infrastructure segment revenue in Laos decreased from HK$103,761,000 in 2022 to HK$55,840,000 in 2023, a 46.2% decline, with profit dropping from HK$14,476,000 to HK$8,467,000[108] - The security sector segment reported revenue of HK$200,299,000 and operating profit of HK$47,297,000 in 2023, compared to HK$371,316,000 revenue and HK$51,858,000 operating loss in 2022[128] - The healthcare segment generated total revenue of HK$18,628,000 in 2023, a significant decrease from HK$42,831,000 in 2022, and recorded an operating loss of HK$28,304,000 compared to an operating profit of HK$7,511,000 in 2022[131] Business Segments and Operations - The logistics sector, represented by Shanghai Logistics Company, achieved notable business improvement in 2023 through regional cooperation and targeted logistics services, enhancing customer retention[21][26] - The Group's infrastructure sector had a highlight moment in 2023, with key projects successfully completed and handed over, contributing to stable revenue[30][33] - The Group strengthened the linkage among various business entities, forming a resource and information platform at the Group level to share business needs and promote project expansion[30][33] - Frontier's aviation, insurance, and medical services all contributed stable revenue to the Group in 2023[30][33] - The Group's logistics sector engaged in regional cooperation with various countries, explored customer needs, and developed targeted logistics services, stabilizing and increasing revenue[21][26] - Frontier's brand has continuously enhanced its comprehensive influence locally, earning the trust and recognition of clients and establishing deep mutual trust in business cooperation[25][28] - The logistics segment's revenue decreased due to repositioning towards specific customers, but the segment operated near breakeven[86][88] - The logistics subsidiary in South Africa was liquidated, resulting in a one-time non-cash gain of HK$52,860,000 from deconsolidation[112] - The security segment has become the Group's core business and primary revenue driver, with significant returns expected from global security initiatives in the foreseeable future[132] - The Group acquired two security arms in Hong Kong, strengthening its presence in the security sector and targeting more prominent and lucrative security projects[132] - Globalmedicare Limited (GMC) adjusted its strategies in Q4 2023 to introduce potential new income streams, with management optimistic about a performance rebound in 2024[132] - The aviation division plans to enhance its fleet capabilities and expand services to include a wider range of air charter and air ambulance services in 2024[133][135] - The Group's logistics base in South Africa was placed into liquidation on January 23, 2023, resulting in a one-time non-cash gain of HK$52,860,000 due to the deconsolidation of the subsidiary[129] - Flying hours increased from 1,936 hours in 2022 to 2,090 hours in 2023, a 7.9% increase, driven by higher demand for chartered flights[107] Corporate Governance and Risk Management - The Group continues to optimize corporate governance and employee care, aiming to build a service-oriented enterprise and provide a larger stage for employees to realize their value[36][38] - Frontier has continuously strengthened group control, solidified management responsibilities, and streamlined processes, forming an efficient management system[31][33] - The Group's business planning and risk control are equally prioritized, with a well-rounded system and comprehensive assessments paving the way for subsequent business implementations[31][33] - Frontier actively supports and cooperates with foreign institutions and business chambers, providing compliant, safe, and professional security services for international investors, including Chinese enterprises[25][28] - The Group plans to transform from traditional business to comprehensive risk management services in 2024, leveraging multi-sector synergies[61] - Cost reduction and efficiency enhancement measures contributed to improved business resilience and operational performance[55] - The Group did not use any financial instruments for hedging due to prohibitive costs, but is closely monitoring currency exchange risks for KES, NN, and RMB[141] - The Group operates in Africa, South East Asia, and Mainland China, with transactions primarily denominated in USD, KES, NN, and RMB[141] - No significant investments or material acquisitions were made during the year, except for the deconsolidation of a subsidiary[141] - The Group maintains at least 25% public float as required under the Listing Rules[149] - The consolidated financial statements were audited by PricewaterhouseCoopers, who are eligible for re-appointment[149] - The Group was added to the US Department of Commerce's Entity List on 12 June 2023, but the Board denied any involvement in the alleged activities[158] - The Group hired a professional legal advisor to address the Entity List issue by 31 December 2023[160] - The Board's key responsibilities include formulating the Group's overall strategies, setting management targets, and regulating internal controls[164] - The Nomination Committee reviews the Board's diversity policy, considering factors such as gender, age, cultural background, and professional experience[173] - The Remuneration Committee determines the remuneration packages of Directors and senior management, and reviews the Group's remuneration policy[174][189] - The Risk Committee oversees the Group's risk appetite, risk principles, and risk-related issues, including corporate actions and sanction risks management[176] - The Group's performance analysis by operating segments is detailed in Note 5 of the consolidated financial statements[179] - The Group's annual performance for the year ended 31 December 2023 is presented in the consolidated income statement on page 98[180] - The Nomination Committee identifies potential directors based on qualifications, skills, and experience that contribute positively to the Board's performance[185] - The Remuneration Committee assists in attracting, retaining, and motivating high-caliber individuals to execute strategies across the Group's operations[187] - The Risk Committee comprises 3 independent non-executive directors, responsible for overseeing the Group's risk exposures and future risk strategy[190] - Shareholders can propose candidates for Director election by submitting a written notice with the candidate's information and consent for data publication[193] - The company adheres to the Model Code for Securities Transactions by Directors of Listed Issuers to oversee directors' securities transactions, with all directors confirming compliance for the year ended 31 December 2023[197] - The company will regularly review and reassess its policy to ensure smooth implementation, considering regulatory requirements, corporate governance practices, and shareholder expectations[196] - The Nomination Committee prioritizes candidates with significant business experience, public board experience, diversity, high ethical standing, and sufficient time commitment for board duties[195] - For independent non-executive directors, candidates must meet all independence requirements under Rule 3.13 of the Listing Rules and avoid conflicts of interest[195] Impairments and Non-Cash Items - Total impairment provisions for goodwill and other intangibles, interests in associates, financial and contract assets amounted to HK$65,489,000 in 2023, up from HK$38,750,000 in 2022[74][99] - The company recorded two non-cash gains in 2023: HK$52,860,000 from deconsolidation of a subsidiary and HK$40,745,000 from a decrease in fair value of contingent consideration payable[74][99] - Impairment provisions for the healthcare segment's goodwill amounted to HK$21,054,000 in 2023, with additional impairment provisions for financial and contract assets totaling HK$23,288,000[131] - Impairment provisions for non-current assets and financial assets of the South African subsidiary totaled HK$15,477,000 (HK$1,238,000 + HK$14,239,000)[114] Employee and Shareholder Information - The Group's total number of employees decreased to 1,939 in 2023 from 2,102 in 2022[4] - Total employees decreased from 2,102 in 2022 to 1,939 in 2023, a reduction of 7.8%[124] - The company did not grant any share options in 2023, compared to 23,400,000 share options granted in 2022[119] - A new share scheme was adopted on 28 June 2023, replacing the previous Share Option Scheme and Share Award Scheme[121] - No share options or share awards were granted under the new Share Scheme as of December 31, 2023, and up to the approval date of the consolidated financial statements[139] Currency and Exchange Rate Risks - The exchange rates of KES and NN against HK$ decreased by 21% and 50%, respectively, during the year ended 31 December 2023[141]

Dividends - The board of Frontier Services Group Limited does not recommend the payment of any dividends for the year ended December 31, 2023, consistent with the previous year[3] Governance - The board includes both executive and non-executive directors, ensuring a diverse governance structure[1] Announcements - The announcement serves as supplementary information to the annual results announcement published on March 27, 2024[3]

Financial Performance - The group reported a consolidated revenue of HKD 812,918,000 for the year ended December 31, 2023, a decrease of 15.7% compared to HKD 964,246,000 in 2022[13]. - Operating profit for the year was HKD 76,318,000, a significant increase from HKD 4,210,000 in the previous year[13]. - The net profit attributable to equity holders of the company was HKD 51,175,000, compared to a loss of HKD 28,966,000 in 2022[14]. - The company reported a basic and diluted earnings per share of HKD 0.0214, recovering from a loss of HKD 0.0124 per share in the previous year[14]. - The company reported an annual profit of HKD 53,488,000, a significant recovery from the previous year's loss[63]. - The profit attributable to equity holders for 2023 was HKD 51,175,000, a significant recovery from a loss of HKD 28,966,000 in 2022[102]. - The company reversed a loss of HKD 26,250,000 in 2022 to a profit of HKD 53,488,000 in 2023, primarily due to improved performance in the security, infrastructure, and aviation segments[148]. Assets and Liabilities - Total liabilities decreased to HKD 553,485,000 from HKD 620,865,000 in the previous year, reflecting a reduction of approximately 10.8%[10]. - The group's total assets as of December 31, 2023, amounted to HKD 1,056,457,000, a decrease from HKD 1,091,440,000 in 2022[36]. - Current assets totaled HKD 568,225,000 in 2023, compared to HKD 545,283,000 in 2022, indicating a growth in liquidity[36]. - The group's liabilities increased, with current liabilities totaling HKD 519,906,000 in 2023, up from HKD 344,882,000 in 2022[36]. - The group's equity rose to HKD 502,972,000 in 2023 from HKD 407,575,000 in 2022, representing an increase of approximately 23.4%[37]. - The company's total assets decreased to HKD 1,056,457,000 in 2023 from HKD 1,091,440,000 in 2022, a reduction of about 3.2%[146]. Impairment and Provisions - The company has not recognized any impairment losses on goodwill and other intangible assets for the current year, compared to HKD 40,544,000 in the previous year[13]. - The group’s financial and contract assets impairment provisions decreased to HKD 23,288,000 from HKD 38,750,000 in the previous year, indicating improved asset quality[13]. - The company recognized impairment provisions totaling HKD 65,489,000 for goodwill and other intangible assets in 2023, compared to HKD 38,750,000 in 2022[148]. - The company has recognized an impairment provision of HKD 19,490,000 for goodwill and other intangible assets in one of its cash-generating units for the year ended December 31, 2023[186]. Revenue Breakdown - The group's revenue from external customers in Africa was HKD 133,620,000 in 2023, down from HKD 189,101,000 in 2022, reflecting a decline of approximately 29.5%[55]. - The total revenue from customer contracts for the year ended December 31, 2023, was HKD 488,102,000, compared to HKD 546,086,000 in 2022, showing a decrease of about 10.6%[55]. - Revenue from customer contracts totaled HKD 812,918,000, a decrease of 15.7% from HKD 964,246,000 in the previous year[61]. - The security segment's total revenue increased by 21% from HKD 423,657,000 in 2022 to HKD 515,503,000 in 2023, contributing approximately 63% to the company's total revenue[149]. - The logistics segment reported a revenue of HKD 200,299,000 in 2023, down from HKD 371,316,000 in 2022, indicating a decline of approximately 46%[156]. Operational Focus and Strategy - The company anticipates continued focus on operational efficiency and cost management to enhance profitability in the upcoming fiscal year[6]. - The company is actively engaged in the development of new products and technologies, although specific details were not disclosed in the conference call[23]. - The group anticipates continued significant returns from global security efforts, driven by the increasing demand for protection of Chinese enterprises in hazardous environments abroad[132]. - The healthcare segment is actively seeking opportunities globally, with a strategic focus on promoting integrated healthcare concepts, and management is optimistic about a rebound in performance in 2024[133]. - The company plans to expand its aviation services in 2024, increasing fleet capacity and service offerings[162]. Challenges and Risks - The group faced numerous challenges in business development during 2023 but managed to utilize existing resources effectively to improve operational performance[118]. - The Kenyan shilling and Nigerian naira depreciated by 21% and 50% against the Hong Kong dollar, respectively, during the year, with the group closely monitoring exchange rate risks[141]. Shareholder and Employee Information - The weighted average number of ordinary shares issued increased to 2,386,698,234 in 2023 from 2,344,818,660 in 2022, reflecting a growth of approximately 1.8%[102]. - The company has a total employee count of 1,939 as of December 31, 2023, down from 2,102 in 2022[187]. - The company has not issued any share options under its share option plan for the year ended December 31, 2023, compared to 23,400,000 options issued in 2022[135]. Cash Flow and Financing - The company recorded a net cash inflow from operating activities of HKD 51,218,000 for the year ended December 31, 2023[185]. - The company’s cash and bank balances increased to HKD 198,111,000 in 2023 from HKD 186,790,000 in 2022, showing a growth of about 6.9%[146]. - As of December 31, 2023, the company's available cash and bank balances were HKD 198,111,000, an increase from HKD 186,790,000 in 2022, while total loans amounted to HKD 209,049,000, up from HKD 190,084,000[169].

Financial Performance - For the six-month period ended 30 June 2023, the Group reported a revenue drop from HK$503,839,000 in 2022 to HK$429,140,000 in 2023, primarily due to the liquidation of its logistics arm in South Africa[25]. - The Group's operating profit improved significantly from a loss of HK$34,751,000 in 2022 to a profit of HK$72,677,000 in 2023, aided by two non-cash gains totaling HK$57,221,000 recognized during the Current Period[25]. - The Group's profit before income tax for the Current Period was HK$62,814,000, compared to a loss of HK$47,658,000 in 2022[24]. - The net profit for the Group after amortization of intangible assets was HK$31,335,000, a significant increase from HK$1,576,000 in the previous year[38]. - The profit for the six-month period ended 30 June 2023 is HK$54,869, compared to a loss of HK$54,765 in the same period of 2022[107]. - Total comprehensive income for the period is HK$34,237, a significant improvement from a total comprehensive loss of HK$60,950 in the previous year[107]. Revenue Breakdown - Revenue from contracts with customers for the six-month period ended June 30, 2023, was HK$429,140,000, a decrease of 15% compared to HK$503,839,000 in 2022[106]. - The security business generated total revenue of HK$266,662,000, a 46% increase from HK$182,609,000 in the prior year, with net profit rising to HK$31,335,000 from HK$1,576,000[48]. - Revenue from the medical-related subsidiaries decreased to HK$10,022,000 from HK$23,837,000 year-on-year, with a net profit of HK$166,000 compared to HK$7,910,000 in the previous year[40]. - Revenue from the infrastructure project in Laos was HK$44,709,000, down from HK$71,924,000 in 2022, with approximately 95% of construction completed[50]. - The logistics arm in South Africa, which contributed HK$77,016,000 in revenue during the first half of 2022, generated no revenue in the same period of 2023[25]. Cost Management - Employee benefit expenses increased from HK$177,208,000 in 2022 to HK$203,808,000 in 2023, reflecting a rise in workforce costs[24]. - The cost of direct materials and job expenses decreased from HK$148,766,000 in 2022 to HK$77,945,000 in 2023, indicating improved cost management[24]. - The Group's finance costs amounted to HK$10,120,000, impacting overall profitability[167]. Corporate Governance and Compliance - The Group's corporate governance practices have been reviewed, and it is compliant with the Corporate Governance Code throughout the six-month period ended June 30, 2023[11]. - The financial statements have been reviewed by the company's audit committee and approved by the Board on August 29, 2023[148]. - The financial statements are prepared in accordance with Hong Kong Accounting Standards and should be read in conjunction with the audited financial statements for the year ended December 31, 2022[149]. Risk Management - The Group has implemented comprehensive risk management measures, including specialized training and consultation with external legal experts, to mitigate potential sanction risks[7]. - The global macroeconomic environment remains unpredictable, with challenges such as geopolitical tensions and inflation impacting operational costs[41]. - The Group is closely monitoring currency exchange risks and may consider using financial instruments for hedging if necessary[110]. Share Schemes and Employee Incentives - As of June 30, 2023, no options or awards were granted under the new Share Scheme[7]. - The newly adopted Share Scheme allows for the grant of options and awards to participants, with a mandate limit of 240,338,588 shares, representing 10% of the total shares in issue as of June 28, 2023[68]. - The Share Scheme is designed to provide incentives for recruiting and retaining valued employees, aligning their interests with the Group's long-term business objectives[71]. Strategic Focus and Future Outlook - The Group's strategic focus includes retaining talent and attracting personnel for further development through incentive schemes[30]. - The Group anticipates benefits from the post-COVID recovery, although demand and profitability have not yet returned to pre-COVID levels[41]. - The Group aims to enhance its market competitiveness and is optimistic about navigating challenges in the current global business landscape[64]. - The Group plans to closely monitor and consider repositioning its logistics business to minimize losses[53]. - The Group anticipates continued substantial returns from its global security ventures in the foreseeable future[44]. Asset and Liability Management - As of June 30, 2023, the Group recorded total assets of HK$1,103,747,000, an increase from HK$1,091,440,000 as of December 31, 2022[73]. - Total liabilities decreased to HK$581,156,000 from HK$620,865,000, showing a reduction in financial obligations[125]. - The Group's gearing ratio was approximately 18.1% as of June 30, 2023, compared to 17.5% as of December 31, 2022[88]. - The Group's available cash and bank balances were HK$186,484,000 as of June 30, 2023, slightly down from HK$186,790,000 as of December 31, 2022[73].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦無發表聲明，並表明不會就因本公告全部或任何部份內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 FRONTIER SERVICES GROUP LIMITED 先豐服務集團有限公司 * （於百慕達註冊成立之有限公司） 網址： www.fsgroup.com www.irasia.com/listco/hk/frontier （股份代號：00500） 中期業績 截至二零二三年六月三十日止六個月期間 Frontier Services Group Limited先豐服務集團有限公司*（「本公司」）董事會（「董事 會」）提呈本公司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個 月期間（「本期間」）之未經審核綜合財務業績及財務狀況，連同二零二二年同期比較 金額。該等未經審核簡明中期財務報表已經本公司審核委員會成員審閱。 ...

Financial Performance - In 2022, the Group achieved significant improvement in revenue and operating indicators compared to the previous year, with all profit units meeting their strategic targets[13]. - Revenue from contracts with customers increased to HK$964,246,000 in 2022, up from HK$756,123,000 in 2021, representing a growth of approximately 27.5%[36]. - Operating profit improved to HK$4,210,000 in 2022, compared to an operating loss of HK$122,537,000 in 2021, marking a significant turnaround[36]. - The basic loss per share decreased to (1.24) cents in 2022 from (6.81) cents in 2021, indicating an improvement in financial performance[38]. - Total loss for the year was HK$26,250,000, a reduction from HK$157,179,000 in the previous year, reflecting a substantial decrease in losses[37]. - The Group's loss for the year reduced substantially from HK$157,179,000 in 2021 to HK$26,250,000 in 2022, primarily due to improved operating results in the security and infrastructure segments[49]. - The Group reported a consolidated revenue of HK$964,246,000 for the year ended December 31, 2022, representing an increase of 28% from HK$756,123,000 in 2021[46]. - The security, insurance, and infrastructure business segment generated revenue of HK$527,518,000, up from HK$236,148,000 in 2021, marking a significant growth[56]. - The security segment's revenue increased by 137%, from HK$178,616,000 in 2021 to HK$423,657,000 in 2022, contributing approximately 44% of the Group's total revenue[51]. - The insurance segment recorded revenue of HK$527,518,000 in 2022, up from HK$236,148,000 in 2021, with an operating profit of HK$27,164,000 compared to an operating loss of HK$22,553,000 in the previous year[60]. Business Segments - The security business revenue increased, and its share in the Group's business segment further improved, with successful completion of ISO18788:2015 certification[14]. - The insurance business, represented by Global Pioneer Assurance S.A., made significant breakthroughs in investment income contributions[15]. - The logistics business, led by Frontier Logistics (Shanghai) Company Limited, focused on regional cooperation to enhance synergetic development[15]. - The aviation and logistics business segment reported a decrease in revenue of approximately HK$122,925,000, largely due to the shutdown of Transit Freight Forwarding (Pty) Ltd in South Africa[57]. - SH Logistics turned a loss of HK$10,743,000 in 2021 into a profit of HK$2,219,000 in 2022, aided by increased logistics services for infrastructure projects in Africa and Southeast Asia[63]. - The healthcare segment generated total revenue of HK$42,831,000 in 2022, significantly up from HK$3,891,000 in 2021, with an operating profit of HK$7,511,000 compared to HK$138,000 in the previous year[69]. Strategic Focus and Development - The Group's strategic focus is on comprehensive and diversified development in logistics, insurance, and aviation, with security as the core[14]. - The Group is prepared to seize development opportunities in key countries and major projects despite a complex and volatile business environment[19]. - The group plans to leverage its accumulated professional knowledge and brand potential to achieve significant breakthroughs in 2023[34]. - The group has emphasized sustainable development as a strategic target, aiming to create long-term value for stakeholders[29]. - The Group aims to achieve close to breakeven as soon as possible amidst high operational costs due to rising fuel prices and inflation in overseas markets[77]. - The logistics segment is expected to operate close to breakeven or profit-making starting from 2023 after liquidating a loss-making arm in South Africa[88]. Cost Management and Financial Health - Employee benefit expenses rose to HK$347,152,000 in 2022, compared to HK$242,431,000 in 2021, an increase of approximately 43.3%[36]. - The Group implemented further cost-cutting measures in 2022, which contributed to the reduction in overall operating costs[49]. - Cash and cash equivalents decreased by HK$80,641,000, primarily due to net cash used in operating activities of HK$20,460,000 and repayment of lease liabilities of HK$25,188,000[41]. - The Group's current ratio decreased from 2.00 in 2021 to 1.58 in 2022, indicating a decline in short-term liquidity[46]. - The price to book ratio improved from 3.78 in 2021 to 2.06 in 2022, reflecting a better valuation of the company's equity[46]. - The Group's available cash and cash equivalents decreased to HK$186,790,000 in 2022 from HK$267,431,000 in 2021[98]. - The gearing ratio as of December 31, 2022, was approximately 17.5%, up from 16.6% in 2021[99]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2022[142]. - The Board of Directors consists of 12 members, including 3 executive directors and 5 non-executive directors[143]. - The Chairman and the Chief Executive Officer roles are separate, ensuring proper governance and oversight[144]. - The Board has established four committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Committee[144]. - Independent non-executive directors are required to confirm their independence annually, and all have met the independence requirements[150]. - The Company provides ongoing training for directors to ensure they are updated on business developments and regulatory changes[151]. - The Group is committed to accountability, transparency, and protecting shareholders' interests as part of its corporate governance practices[141]. Risk Management and Future Outlook - The geopolitical tensions and strong US dollar are expected to create uncertainties in 2023, affecting capital spending and increasing funding costs[78]. - The Group is closely monitoring currency exchange risks in various regions, including KES, ZAR, and RMB, and will consider hedging if necessary[114][116][120]. - The Group has not utilized any financial instruments for hedging purposes during the year ended 31 December 2022 due to high costs[114][120]. - The business rescue proceedings of TFF were discontinued, and the application for liquidation was approved by the Court in January 2023[135]. - The Group has filed a claim exceeding €10,000,000 (approximately HKD 83,300,000) against the claimant for breach of purchase and repayment agreements[137]. Employee and Community Engagement - The group has actively engaged in community support during the pandemic, showcasing its commitment to social responsibility[31]. - The total number of employees increased to 2,102 as of December 31, 2022, from 1,837 in 2021, reflecting expansion in security businesses[96]. - A total of 23,400,000 share options were granted under the share option scheme during the year ended December 31, 2022, to incentivize eligible directors and employees[91]. Diversity and Inclusion - The Board currently comprises eleven male and one female directors, reflecting a need for improved gender diversity[194]. - The Company has adopted a Board Diversity Policy that considers various aspects such as gender, age, and professional experience to achieve diversity[193]. - The Nomination Committee recognizes the importance of gender diversity at the Board level and aims for continuous improvement[198]. - The company maintained an adequate ratio of women to men in the workplace during the year[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 FRONTIER SERVICES GROUP LIMITED 先豐服務集團有限公司 * （於百慕達註冊成立之有限公司） 網址：www.fsgroup.com www.irasia.com/listco/hk/frontier （股份代號：00500） 末期業績公告 截至二零二二年十二月三十一日止年度 Frontier Services Group Limited先豐服務集團有限公司*（「本公司」）董事會（「董事 會」）公佈本公司及其附屬公司（「本集團」）截至二零二二年十二月三十一日止年度 之末期業績，連同截至二零二一年十二月三十一日止年度之比較數字。本集團之末 期綜合業績已經本公司審核委員會（「審核委員會」）審閱。 ...