Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 2,402,834, a decrease of 11.1% compared to HKD 2,703,266 for the year ended December 31, 2023[3] - Gross profit for the year was HKD 82,244, representing a significant increase of 30.2% from HKD 63,140 in the previous year[3] - Net profit for the year was HKD 40,793, a turnaround from a loss of HKD 13,038 in the previous year[4] - Basic earnings per share for the year was HKD 1.21, compared to a loss per share of HKD 0.39 in the previous year[3] - Revenue from construction services for 2024 was HKD 2,402,701, a decrease of 11.1% from HKD 2,703,266 in 2023[20] - The pre-tax profit for the group was HKD 40,793, compared to a loss of HKD 13,038 in 2023, indicating a significant turnaround[25] Assets and Liabilities - Total assets decreased to HKD 1,341,014 from HKD 1,404,403 in the previous year, reflecting a decline of 4.5%[6] - Current assets increased slightly to HKD 1,674,916 from HKD 1,642,154, showing a growth of 2.0%[6] - Non-current liabilities decreased to HKD 101,790 in 2024 from HKD 121,071 in 2023, representing a reduction of approximately 16%[7] - The company's total assets amounted to HKD 1,915,493 in 2024, slightly down from HKD 1,914,834 in 2023[12] - The company's equity totalled HKD 1,239,224 in 2024, down from HKD 1,283,332 in 2023, reflecting a decline of approximately 3.4%[7] - The group's total liabilities amounted to approximately HKD 676 million, up from HKD 632 million the previous year, with financial liabilities of about HKD 433 million[36] Cash Flow and Investments - Cash and cash equivalents rose significantly to HKD 731,489, up from HKD 568,303, marking an increase of 28.7%[6] - Capital expenditure for 2024 was HKD 27,720, a decrease from HKD 61,586 in 2023[12] - Capital expenditures for the year were approximately HKD 28 million for the purchase of machinery and equipment, with capital commitments related to these purchases amounting to about HKD 2 million[39] Trade and Receivables - Trade receivables increased to HKD 148,162 from HKD 125,111, representing an increase of 18.4%[6] - Trade payables totaled HKD 253,154 in 2024, an increase from HKD 220,498 in 2023, representing a rise of 14.8%[28] - Trade receivables at the end of the reporting period amounted to HKD 148,162, up from HKD 125,111 in 2023, reflecting a growth of 18.4%[27] - The average credit period granted to trade customers is 30 days, subject to regular management review[26] Future Outlook and Strategy - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[3] - The company plans to continue focusing on property development and investment as part of its growth strategy[9] - The outlook for the construction industry in 2025 is challenging due to slow economic recovery and unfavorable real estate market conditions, but government-led large-scale projects are expected to create new opportunities[35] Corporate Governance and Compliance - The company has adhered to the corporate governance code as of December 31, 2024, with the exception of certain deviations regarding the attendance of independent non-executive directors at the annual general meeting[45] - The company has adopted the standard code for securities trading as per the listing rules, confirming compliance as of December 31, 2024[46] - The audit committee consists of four independent non-executive directors who reviewed the accounting principles and practices adopted by the group, including the consolidated performance and financial statements for the year ending December 31, 2024[47] - The independent auditor, Ernst & Young, has agreed that the figures in the preliminary announcement align with the group's consolidated financial statements for the year ending December 31, 2024[49] Dividends and Shareholder Returns - The proposed final dividend for 2024 is HKD 0.025 per share, an increase from HKD 0.015 per share in 2023[31] Employment and Compensation - The group employed 733 employees as of December 31, 2024, with compensation guidelines based on current market salary levels[42]

Financial Performance - The group recorded a revenue of HKD 1.009 billion for the six months ended June 30, 2024, compared to HKD 1.426 billion for the same period in 2023, representing a decrease of approximately 29.3%[2] - The profit attributable to ordinary shareholders was approximately HKD 11 million, a significant improvement from a loss of HKD 41 million in the previous year, resulting in earnings per share of HKD 0.032 compared to a loss per share of HKD 0.123[2] - The company reported revenue of HKD 1,009,389,000 for the six months ended June 30, 2024, a decrease of 29.2% compared to HKD 1,425,958,000 for the same period in 2023[38] - The cost of sales was HKD 978,296,000, resulting in a gross profit of HKD 31,093,000, compared to a gross loss of HKD 1,851,000 in the previous year[38] - The company achieved a profit before tax of HKD 10,373,000, a significant improvement from a loss of HKD 34,898,000 in the prior year[38] - The net profit for the period was HKD 10,704,000, compared to a net loss of HKD 41,422,000 in the same period last year[38] - Basic and diluted earnings per share were both HKD 0.32, recovering from a loss of HKD 1.23 per share in the previous year[38] - The total comprehensive income for the period was HKD 10,137,000, compared to a total comprehensive loss of HKD 42,436,000 in the prior year[40] Cash Flow and Financial Position - The group maintained a cash balance of approximately HKD 689 million as of June 30, 2024, down from HKD 747 million at the end of 2023[8] - The company’s cash and cash equivalents decreased to HKD 369,318,000 from HKD 568,303,000, a decline of 35%[42] - Cash flow from operating activities was HKD 29,542,000, a significant improvement from a cash outflow of HKD 15,629,000 in the previous year[52] - The net cash flow from investment activities was negative at HKD 141,795,000, slightly improved from a negative HKD 146,703,000 in the previous period[54] - The company reported a net cash flow from financing activities of negative HKD 71,861,000, contrasting with a positive cash flow of HKD 29,566,000 in the same period last year[54] - The total cash and cash equivalents at the end of the period stood at HKD 369,318,000, down from HKD 543,583,000 in the previous year[54] Assets and Liabilities - Total assets and net assets were approximately HKD 1.795 billion and HKD 1.243 billion, respectively, as of June 30, 2024, compared to HKD 1.915 billion and HKD 1.283 billion at the end of 2023[8] - The group’s total liabilities were approximately HKD 552 million, a decrease from HKD 632 million at the end of 2023, with financial liabilities at approximately HKD 363 million[8] - Current liabilities decreased to HKD 447,487,000 from HKD 510,431,000, a reduction of 12.3%[42] - The total liabilities decreased to HKD 552,214,000 from HKD 631,502,000, indicating a reduction of 12.5%[45] - The company reported contingent liabilities related to performance guarantees for construction projects amounting to HKD 324,420,000 as of June 30, 2024, down from HKD 332,469,000[82] Shareholder Information - Major shareholders include Blackstone Group Management L.L.C. with a 70.00% stake, holding 2,356,146,781 shares[33] - The company has a significant shareholder base, with several entities holding over 5% of the issued share capital[33] - The board declared an interim dividend of HKD 0.01 per share for the six months ended June 30, 2024, compared to no dividend for the same period in 2023[15] Corporate Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange, except for the absence of two non-executive directors at the annual general meeting held on May 30, 2024[19] - The audit committee, consisting of four independent non-executive directors, has reviewed the unaudited condensed interim financial statements for the six months ending June 30, 2024[20] - The company has adopted the standard code for securities trading by directors, confirming full compliance during the review period[21] Operational Highlights - The foundation piling segment generated revenue of approximately HKD 1.009 billion, with a profit of approximately HKD 19 million, compared to a loss of HKD 22 million in the same period last year[3] - The company plans to actively participate in government tenders for new development projects, including public housing and infrastructure, to secure market share in the foundation piling sector[4] - The company plans to focus on market expansion and new product development in the upcoming quarters[43] - The company plans to continue focusing on market expansion and enhancing its service offerings in the construction sector[60] Share Options and Management Compensation - The company operates a share option scheme adopted on December 3, 2020, to reward eligible participants contributing to its success[25] - The total number of share options available for grant as of January 1, 2024, is 169,003,570 shares, which is 10% of the total issued shares as of the special general meeting date[30] - As of June 30, 2024, the number of share options available for issuance is 155,600,000 shares, representing approximately 4.62% of the total issued shares[30] - A total of 6,500,000 share options have lapsed during the six months ending June 30, 2024[30] - Management compensation for the period was HKD 22,181,000, slightly down from HKD 22,717,000 in the previous year[84]

Financial Performance - The group recorded a revenue of HKD 1.009 billion for the six months ended June 30, 2024, compared to HKD 1.426 billion for the same period in 2023, representing a decrease of approximately 29.3%[2] - The profit attributable to ordinary shareholders was approximately HKD 11 million, a significant improvement from a loss of HKD 41 million in the same period last year[2] - Revenue for the six months ending June 30, 2024, was HKD 1,009,389,000, a decrease of 29.2% from HKD 1,425,958,000 in 2023[12] - Gross profit for the same period was HKD 31,093,000, compared to a gross loss of HKD 1,851,000 in 2023[12] - The company reported a profit of HKD 10,704,000 for the six months ending June 30, 2024, compared to a loss of HKD 41,422,000 in the previous year[12] - Basic and diluted earnings per share for the period were HKD 0.32, recovering from a loss of HKD 1.23 per share in 2023[12] - The company reported a net profit of HKD 10,704,000 for the six months ended June 30, 2024, compared to a net loss of HKD 41,422,000 in the same period of 2023, indicating a significant turnaround[22][29] - The company incurred a pre-tax loss of HKD 34,898,000 for the six months ended June 30, 2023, while for the same period in 2024, it reported a pre-tax profit of HKD 10,373,000, showing a substantial improvement[22][26] Cash and Assets - As of June 30, 2024, the group had cash on hand of approximately HKD 689 million, down from HKD 747 million as of December 31, 2023[4] - Total assets and net assets were approximately HKD 1.795 billion and HKD 1.243 billion, respectively, as of June 30, 2024, compared to HKD 1.915 billion and HKD 1.283 billion as of December 31, 2023[4] - Cash and cash equivalents as of June 30, 2024, were HKD 369,318,000, a decrease from HKD 568,303,000 at the end of 2023[14] - Total assets less current liabilities as of June 30, 2024, amounted to HKD 1,347,705,000, a decrease from HKD 1,404,403,000 as of December 31, 2023[15] - The company's total equity attributable to ordinary shareholders was HKD 1,242,978,000, down from HKD 1,283,332,000 as of December 31, 2023[16] Liabilities and Contingent Liabilities - The group’s contingent liabilities related to performance guarantees decreased from approximately HKD 332 million as of December 31, 2023, to approximately HKD 324 million as of June 30, 2024[8] - Non-current liabilities decreased to HKD 104,727,000 from HKD 121,071,000 in the previous year[15] - The company’s total liabilities decreased to HKD 1,017,692,000 for the six months ended June 30, 2024, from HKD 1,428,620,000 in the same period of 2023, reflecting a reduction of approximately 29%[21][23] - Total accounts payable amounted to HKD 183,697,000 as of June 30, 2024, down from HKD 220,498,000 as of December 31, 2023, representing a decrease of approximately 16.7%[32] - Warranty payables were reported at HKD 50,851,000 as of June 30, 2024, compared to HKD 56,050,000 as of December 31, 2023, indicating a decline of about 9.3%[32] - Provisions were recorded at HKD 13,609,000 as of June 30, 2024, compared to HKD 17,938,000 as of December 31, 2023, showing a reduction of around 24.8%[32] - The total liabilities, including provisions, amounted to HKD 385,520,000 as of June 30, 2024, down from HKD 435,065,000 as of December 31, 2023, a decrease of approximately 11.4%[32] - Performance guarantees related to construction projects were HKD 324,420,000 as of June 30, 2024, compared to HKD 332,469,000 as of December 31, 2023, a decrease of about 2.4%[34] Employee and Compensation - The group employed approximately 752 employees as of June 30, 2024, with compensation guidelines based on current market salary levels[9] Dividends - The company declared an interim dividend of HKD 0.01 per share for the six months ending June 30, 2024, compared to no dividend for the same period in 2023[10] - The company declared an interim dividend of HKD 0.01 per share for the six months ended June 30, 2024, totaling approximately HKD 33,660,000, compared to no dividend declared in the same period of 2023[27][28] Capital Expenditures - Capital expenditures for the six months ended June 30, 2024, amounted to approximately HKD 20 million for the purchase of machinery and equipment[6] Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules, with a noted absence of two non-executive directors at the annual general meeting[35] - The audit committee, consisting of four independent non-executive directors, has reviewed the interim financial statements for the six months ending June 30, 2024[36] - The company has confirmed compliance with the standard code for securities trading by directors during the review period[37] - There were no purchases, sales, or redemptions of the company's listed securities during the reporting period[38] Other Income and Gains - Interest income increased to HKD 14,380,000 for the six months ended June 30, 2024, compared to HKD 10,625,000 in the same period of 2023, reflecting a growth of about 35%[25] - The total other income and gains for the six months ended June 30, 2024, amounted to HKD 22,683,000, up from HKD 13,287,000 in the same period of 2023, marking an increase of approximately 71%[25]

Financial Performance - Tysan Holdings Limited reported a significant increase in revenue, achieving a total of $500 million, representing a 20% growth year-over-year[12]. - The group’s revenue for the year ended December 31, 2023, was HKD 2,497,073,000, a decrease of 7.9% from HKD 2,711,161,000 in 2022[90]. - The group reported a capital expenditure of HKD 61,586 for the year, an increase of 16.9% compared to HKD 52,588 in the previous year[72]. - The group incurred income tax expenses of HKD 21,364,000 for the year, up from HKD 15,418,000 in 2022[90]. - The group recorded other income and gains of HKD 1,401,899,000, compared to HKD 212,000 in the previous year[90]. - The group’s operating profit margin improved to 20,589,000 from a loss of 13,647,000 in the previous year[90]. - The group incurred audit fees of HKD 2,419 for the fiscal year ending December 31, 2023[74]. - The group has a total of 791 employees, with female employees making up approximately 18% of the workforce[73]. Future Outlook and Strategy - Tysan Holdings provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on current market trends[12]. - The company is investing in new product development, with a budget allocation of $50 million for R&D initiatives[12]. - Tysan Holdings is exploring market expansion opportunities in Southeast Asia, targeting a 10% market share within the next two years[12]. - The company plans to implement new technology solutions to improve operational efficiency, aiming for a 15% reduction in costs[12]. - The company is positioned to make significant new investments when opportunities arise, supported by a strong balance sheet[82]. Acquisitions and Partnerships - The company has completed a strategic acquisition of a local competitor for $30 million, expected to enhance its market position[12]. - The company has established a new partnership with a leading tech firm to enhance its digital capabilities, expected to drive future growth[12]. Sustainability Initiatives - Tysan Holdings is focusing on sustainability initiatives, committing to reduce carbon emissions by 30% over the next five years[12]. Risk Management and Internal Controls - The company employs a risk management system to identify, assess, and manage risks related to its operations[37]. - The internal control system is aligned with the COSO framework to ensure effective operations and reliable financial reporting[40]. - The board of directors is responsible for ensuring effective risk management and internal control systems are in place[108]. - The group has established appropriate risk management and internal control systems in compliance with corporate governance codes[108]. Corporate Governance - The company has adhered to the corporate governance principles and code provisions as outlined in the Hong Kong Stock Exchange Listing Rules throughout the fiscal year ending December 31, 2023[141]. - The company has established good corporate governance practices and procedures to ensure proper oversight and management[177]. - The company has a formal and transparent procedure for the appointment and removal of directors, complying with the corporate governance code[186]. - The company has arranged appropriate insurance for board members and senior management against potential legal actions[200]. Board Composition and Diversity - The company has a diverse board composition with members from various fields including construction, insurance, and real estate[116]. - The company appointed Ms. Yang Jing as an independent non-executive director, enhancing board diversity with 33% female representation as of December 31, 2023[158]. - The company aims to maintain a minimum of 33% female representation on the board and seeks to increase this ratio in the future[158]. - The company has implemented a board diversity policy to strengthen gender diversity and ensure a high representation of women at the board level[158]. Employee and Director Management - The group has restructured its retirement plan to comply with mandatory provident fund regulations, ceasing contributions to the previous fund since April 1, 1999[58]. - The group continues to evaluate its diversification policy annually to attract and retain talent from a broad talent pool[73]. - The independent non-executive directors hold one-third of the board seats, providing independent judgment and assessment on matters presented to the board[170]. - The company emphasizes effective communication with shareholders to ensure their opinions are conveyed to the board[177]. Financial Reporting and Compliance - Deferred tax assets are reviewed at each reporting period end and reduced if there are insufficient taxable profits to utilize them[26]. - The company recognizes rental income on a time proportion basis over the lease term[33]. - Revenue from customer contracts includes claims for additional costs and profits outside the initial construction contract, recognized as variable consideration[52]. - Interest income is recognized using the effective interest method based on the estimated cash flows of financial assets[54]. - The audit committee conducted an annual review of the internal control system, confirming its effectiveness in financial, operational, and compliance monitoring[168].

[Company Overview and Performance Summary](index=1&type=section&id=Company%20Overview%20and%20Performance%20Summary) [Annual Performance Announcement](index=1&type=section&id=Annual%20Performance%20Announcement) The company announced its consolidated results for the year ended December 31, 2023, reporting a turn from profit to loss compared to the same period in 2022 - The company announced its consolidated results for the year ended December 31, 2023[3](index=3&type=chunk) [Consolidated Statement of Profit or Loss](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The company turned from profit to loss in FY2023, with a net loss of HKD 13.038 million, primarily due to decreased gross profit, significantly increased finance costs, and income tax expense | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | | :---------- | :------------------- | :------------------- | | Revenue | 2,703,266 | 2,473,646 | | Cost of sales | (2,640,126) | (2,391,600) | | Gross profit | 63,140 | 82,046 | | Other income and gains | 31,534 | 30,149 | | Administrative expenses | (73,349) | (73,682) | | Other expenses, net | (11,201) | (10,286) | | Finance costs | (7,744) | (2,338) | | Profit before tax | 2,380 | 25,889 | | Income tax expense | (15,418) | (21,364) | | Profit/(Loss) for the year | (13,038) | 4,525 | | Basic earnings/(loss) per share | (0.39 HK cents) | 0.13 HK cents | - Gross profit decreased by **23% year-on-year** to **HKD 63,140 thousand** in 2023, compared to HKD 82,046 thousand in 2022[22](index=22&type=chunk) - Finance costs significantly increased from **HKD 2,338 thousand** in 2022 to **HKD 7,744 thousand** in 2023[22](index=22&type=chunk) [Consolidated Statement of Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for 2023 turned from a profit of HKD 2.601 million in 2022 to a loss of HKD 13.664 million, primarily due to loss for the year and exchange differences | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | | :-------------------------- | :------------------- | :------------------- | | Profit/(Loss) for the year | (13,038) | 4,525 | | Exchange differences | (626) | (1,924) | | Other comprehensive expense for the year | (626) | (1,924) | | Total comprehensive income/(expense) for the year | (13,664) | 2,601 | - Exchange differences arising from translation of overseas operations narrowed from **(HKD 1,924) thousand** in 2022 to **(HKD 626) thousand** in 2023[4](index=4&type=chunk) [Financial Position](index=3&type=section&id=Financial%20Position) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of end-2023, total assets and net assets decreased, total liabilities reduced, but net current assets remained robust | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | | :---------------------- | :------------------- | :------------------- | | Total non-current assets | 272,680 | 281,459 | | Total current assets | 1,642,154 | 1,846,694 | | Total current liabilities | 510,431 | 637,985 | | Net current assets | 1,131,723 | 1,208,709 | | Total assets less current liabilities | 1,404,403 | 1,490,168 | | Total non-current liabilities | 121,071 | 146,979 | | Net assets | 1,283,332 | 1,343,189 | | Total equity | 1,283,332 | 1,343,189 | - Interest-bearing bank borrowings within non-current liabilities decreased from **HKD 128,509 thousand** in 2022 to **HKD 104,528 thousand** in 2023[7](index=7&type=chunk) - Contract assets decreased from **HKD 828,715 thousand** in 2022 to **HKD 639,893 thousand** in 2023[24](index=24&type=chunk) [Changes in Accounting Policies and Disclosures](index=5&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) The Group adopted new and revised HKFRSs, including amendments on accounting estimates, deferred tax, and policy disclosures, with no material impact on financial statements - The Group first adopted amendments to **HKAS 8, HKAS 12, and HKAS 1**[9](index=9&type=chunk)[10](index=10&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - Amendments to **HKAS 1** require disclosure of material accounting policy information instead of significant accounting policies, with no impact on financial statements[11](index=11&type=chunk) - Amendments to **HKAS 12** regarding deferred tax had no material impact on the overall deferred tax balance, and the Group is not within the scope of Pillar Two legislation[11](index=11&type=chunk)[29](index=29&type=chunk) [Operating Analysis and Financial Notes](index=6&type=section&id=Operating%20Analysis%20and%20Financial%20Notes) [Segment Information](index=6&type=section&id=Segment%20Information) Foundation piling remains the main revenue source, but segment profit significantly declined due to unforeseen project conditions, with Hong Kong contributing most revenue | Segment | 2023 (HKD thousands) | 2022 (HKD thousands) | | :----------------- | :------------------- | :------------------- | | Foundation piling revenue | 2,703,266 | 2,458,718 | | Foundation piling segment profit | 25,490 | 93,926 | - Foundation piling segment profit significantly decreased from **HKD 93,926 thousand** in 2022 to **HKD 25,490 thousand** in 2023[30](index=30&type=chunk)[55](index=55&type=chunk) - Revenue from Hong Kong was **HKD 2,703,266 thousand** (2022: HKD 2,473,646 thousand), serving as the primary revenue source[16](index=16&type=chunk) [Revenue Analysis](index=8&type=section&id=Revenue%20Analysis) Revenue in 2023 primarily derived from construction services, with other business lines no longer generating income | Revenue Source | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--------------- | :------------------- | :------------------- | | Construction services | 2,703,266 | 2,446,718 | | Trading of machinery | – | 12 | | Sale of steel structural platforms | – | 12,000 | | Mechanical engineering services | – | 8,328 | | Rental income from machinery leasing | – | 6,588 | - In 2023, revenue primarily came from construction services, with no revenue from other businesses such as trading of machinery, sale of steel structural platforms, and mechanical engineering services[61](index=61&type=chunk) | Major Customer | 2023 (HKD thousands) | 2022 (HKD thousands) | | :------------- | :------------------- | :------------------- | | Customer A1 | 836,022 | 290,048 | | Customer B1 | 364,524 | Not applicable | | Customer C1 | 280,631 | 381,251 | | Customer D1 | Not applicable | 562,574 | | Customer E1 | Not applicable | 386,029 | [Other Income and Gains](index=9&type=section&id=Other%20Income%20and%20Gains) Other income and gains saw a significant increase in interest income but no subsidy income in 2023 | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :------------------- | :------------------- | :------------------- | | Interest income | 23,329 | 6,722 | | Insurance claims | 1,512 | 803 | | Subsidy income | – | 18,826 | | Reversal of impairment loss on contract assets | 6,693 | 693 | | Others | – | 3,105 | | Total | 31,534 | 30,149 | - Interest income significantly increased from **HKD 6,722 thousand** in 2022 to **HKD 23,329 thousand** in 2023[38](index=38&type=chunk) - There was no subsidy income in 2023, compared to **HKD 18,826 thousand** in 2022[38](index=38&type=chunk) [Finance Costs](index=9&type=section&id=Finance%20Costs) Finance costs significantly increased in 2023, mainly driven by interest on bank borrowings and lease liabilities | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :----------------------- | :------------------- | :------------------- | | Interest on bank borrowings | 7,302 | 1,422 | | Interest on lease liabilities | 591 | 951 | | Subtotal | 7,893 | 2,373 | | Less: Interest capitalised in cost of sales | (149) | (35) | | Total | 7,744 | 2,338 | - Interest on bank borrowings significantly increased from **HKD 1,422 thousand** in 2022 to **HKD 7,302 thousand** in 2023[62](index=62&type=chunk) [Profit Before Tax](index=10&type=section&id=Profit%20Before%20Tax) Profit before tax significantly decreased in 2023, primarily due to increased depreciation of property, plant and equipment, and higher losses from disposal and write-off of assets | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :------------------------------------ | :------------------- | :------------------- | | Depreciation of property, plant and equipment | 56,583 | 49,726 | | Depreciation of right-of-use assets | 13,565 | 13,378 | | Impairment loss on trade receivables | 657 | 1,427 | | Impairment loss/(reversal) on contract assets | 106 | (693) | | Loss on disposal and write-off of property, plant and equipment | 8,182 | 2,826 | | Write-down of inventories to net realisable value | – | 2,989 | - Loss on disposal and write-off of property, plant and equipment increased from **HKD 2,826 thousand** in 2022 to **HKD 8,182 thousand** in 2023[40](index=40&type=chunk) [Income Tax](index=10&type=section&id=Income%20Tax) Total income tax expense for 2023 was HKD 15.418 million, mainly from China and Hong Kong tax provisions, with deferred tax as a credit | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :-------------------------- | :------------------- | :------------------- | | Tax provision for profit for the year: | | | | China | 15,922 | 9,705 | | Hong Kong | 25 | 6 | | Over-provision in prior years: | | | | China | (6) | (10) | | Deferred tax | (523) | 11,663 | | Total tax expense for the year | 15,418 | 21,364 | - Total income tax expense for 2023 decreased by **27.8% year-on-year** to **HKD 15,418 thousand**[40](index=40&type=chunk) [Dividends](index=11&type=section&id=Dividends) The Board recommended a final dividend of HKD 0.015 per share, consistent with last year, but no interim dividend was declared in 2023. Share transfer registration will be suspended to determine dividend eligibility | Dividend Type | 2023 (HKD thousands) | 2022 (HKD thousands) | | :-------------- | :------------------- | :------------------- | | Final dividend paid | 50,491 | 50,491 | | Interim dividend | – | 33,660 | | Proposed final dividend | 50,491 | 50,491 | - No interim dividend was declared in 2023, compared to **HKD 0.01 per share** in 2022[48](index=48&type=chunk)[65](index=65&type=chunk) - The company will suspend share transfer registration from **June 5 to June 7, 2024**, to determine eligibility for the final dividend[49](index=49&type=chunk)[71](index=71&type=chunk)[109](index=109&type=chunk) [Earnings/Loss Per Share](index=11&type=section&id=Earnings%2FLoss%20Per%20Share) The company reported a basic loss per share of HKD 0.39 cents in 2023, compared to a basic profit of HKD 0.13 cents in 2022, reflecting the year's turn from profit to loss | Indicator | 2023 (HK cents) | 2022 (HK cents) | | :-------------------------- | :-------------- | :-------------- | | Basic earnings/(loss) per share | (0.39) | 0.13 | | Diluted earnings/(loss) per share | (0.39) | 0.13 | - No diluted adjustment was made as share options had no dilutive effect on basic earnings/loss per share[43](index=43&type=chunk) [Trade Receivables](index=11&type=section&id=Trade%20Receivables) As of end-2023, total trade receivables slightly increased, with most due within 90 days, and the company maintains credit policies based on local industry standards | Aging | 2023 (HKD thousands) | 2022 (HKD thousands) | | :----------------- | :------------------- | :------------------- | | Within 90 days | 124,456 | 122,816 | | 91 to 180 days | – | 376 | | 181 to 365 days | – | 214 | | Over 365 days | 655 | 657 | | Total | 125,111 | 124,063 | - The company grants an average general credit period of **within 30 days** to trade customers, subject to regular review[44](index=44&type=chunk) - Trade receivables at end-2022 included **HKD 104 thousand** due from an associate, Top Ascent Construction Engineering Limited[66](index=66&type=chunk) [Trade Payables, Retention Payables, Accruals and Provisions](index=12&type=section&id=Trade%20Payables%2C%20Retention%20Payables%2C%20Accruals%20and%20Provisions) As of end-2023, total trade payables significantly decreased, while retention payables and accruals remained stable, with a general repayment period of 90 days | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :------------------------------------ | :------------------- | :------------------- | | Total trade payables | 220,498 | 329,086 | | Retention payables | 56,050 | 56,373 | | Accruals | 140,579 | 143,026 | | Provisions | 17,938 | 33,297 | | Total | 435,065 | 561,782 | - Total trade payables decreased from **HKD 329,086 thousand** in 2022 to **HKD 220,498 thousand** in 2023[108](index=108&type=chunk) - Trade payables and retention payables are interest-free, with trade payables generally repayable within **90 days** and retention payables typically due within **one year** after completion of construction works[68](index=68&type=chunk) [Contingent Liabilities](index=12&type=section&id=Contingent%20Liabilities) As of end-2023, guarantees for performance bonds related to construction projects significantly decreased, indicating reduced contingent liability risk | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :------------------------------------------ | :------------------- | :------------------- | | Guarantees for performance bonds related to construction projects | 332,469 | 461,254 | - Contingent liabilities related to performance bonds decreased from approximately **HKD 461 million** in 2022 to approximately **HKD 332 million** in 2023[78](index=78&type=chunk) [Contractual Commitments](index=12&type=section&id=Contractual%20Commitments) As of end-2023, the Group's contractual commitments primarily related to property, plant and equipment, remaining stable in amount | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :------------------- | :------------------- | :------------------- | | Property, plant and equipment | 15,791 | 16,463 | [Business and Financial Review](index=13&type=section&id=Business%20and%20Financial%20Review) [Business Review](index=13&type=section&id=Business%20Review) The Group's foundation piling segment revenue grew, but segment profit significantly declined due to unforeseen land conditions and site constraints in a project | Indicator | 2023 (HKD) | 2022 (HKD) | | :----------------- | :----------- | :----------- | | Foundation piling revenue | 2.703 billion | 2.459 billion | | Foundation piling profit | 25 million | 94 million | - Foundation piling segment profit significantly decreased from **HKD 94 million** in 2022 to **HKD 25 million** in 2023[50](index=50&type=chunk) - The profit reduction was primarily due to the need to allocate additional resources to address unforeseen land conditions and site constraints in a project[50](index=50&type=chunk) [Prospects](index=14&type=section&id=Prospects) The company is cautiously optimistic about its core foundation and piling business, expecting strong public sector tenders and new development projects, despite a subdued Hong Kong property market - The Group maintains a cautiously optimistic outlook on its core foundation and piling business[52](index=52&type=chunk) - Public sector tender volumes remain strong, with new development area projects, including the Northern Metropolis, set to commence[73](index=73&type=chunk)[91](index=91&type=chunk) - The Hong Kong property market is expected to remain subdued, but may stabilize with the easing of residential property cooling measures and financing ratios[74](index=74&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) As of end-2023, the Group's cash on hand, total assets, and net assets decreased, but total liabilities and financial liabilities also reduced, maintaining a zero gearing ratio and net cash position | Indicator | 2023 (HKD) | 2022 (HKD) | | :----------------- | :----------- | :----------- | | Cash on hand | 747 million | 770 million | | Total assets | 1.915 billion | 2.128 billion | | Net assets | 1.283 billion | 1.343 billion | | Total liabilities | 632 million | 785 million | | Financial liabilities | 420 million | 558 million | | Interest-bearing borrowings | 129 million | 153 million | - The Group maintains a **zero gearing ratio** and is in a **net cash position**[110](index=110&type=chunk) [Financing and Financial Policies](index=15&type=section&id=Financing%20and%20Financial%20Policies) The Group maintains prudent financing and financial policies, a robust capital structure, and ample cash flow, with borrowings denominated in HKD at floating rates, and closely monitors currency risk - The Group maintains prudent financing and financial policies, a robust capital structure, and ample cash flow[94](index=94&type=chunk) - Surplus funds are placed with leading banks, and borrowings are denominated in HKD and bear interest at floating rates[94](index=94&type=chunk) - The Group closely monitors currency risk and considers forward contracts when necessary[94](index=94&type=chunk) [Pledge of Assets](index=15&type=section&id=Pledge%20of%20Assets) As of end-2023, the Group pledged approximately HKD 115 million in office properties and HKD 5 million in bank deposits as security for installment loans - Office properties with a carrying value of approximately **HKD 115 million** and bank deposits of approximately **HKD 5 million** were pledged to banks[77](index=77&type=chunk) [Capital Expenditure and Commitments](index=15&type=section&id=Capital%20Expenditure%20and%20Commitments) In 2023, the Group invested approximately HKD 62 million in machinery and equipment, with related capital commitments of about HKD 16 million, primarily funded by internal resources - Approximately **HKD 62 million** was invested in purchasing machinery and equipment in 2023[95](index=95&type=chunk) - As of end-2023, capital commitments related to the purchase of machinery and equipment amounted to approximately **HKD 16 million**[95](index=95&type=chunk) - Capital expenditure was primarily funded by internal resources[95](index=95&type=chunk) [Remuneration Policy and Employment](index=15&type=section&id=Remuneration%20Policy%20and%20Employment) As of end-2023, the Group employed 791 staff, with remuneration based on market levels and performance, offering benefits like provident funds, medical insurance, training, and share options - As of end-2023, the Group employed **791 staff**[78](index=78&type=chunk) - Remuneration policy is primarily determined based on prevailing market salary levels and the performance of individual business units and employees[78](index=78&type=chunk) - Benefits include provident funds, medical insurance, training, and share options[78](index=78&type=chunk) [Purchase, Redemption and Sale of Listed Securities](index=15&type=section&id=Purchase%2C%20Redemption%20and%20Sale%20of%20Listed%20Securities) During the reporting year, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the reporting year, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[111](index=111&type=chunk) [Corporate Governance and Audit](index=16&type=section&id=Corporate%20Governance%20and%20Audit) [Compliance with Corporate Governance Code](index=16&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company generally complied with the Corporate Governance Code during the period, with a temporary deviation due to insufficient independent non-executive directors, which was later rectified - Non-executive Director Ms. Gu Ye did not attend the Annual General Meeting due to other commitments, but the Board had sufficient members present[80](index=80&type=chunk) - Board meeting documents were not sent three days in advance due to urgency, but directors had sufficient time for review[81](index=81&type=chunk) - The number of independent non-executive directors temporarily fell below the one-third requirement of the Listing Rules, but was rectified by the appointment of Ms. Yang Jing, complying with Listing Rules 3.10A, 3.25, and 3.27A[82](index=82&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[112](index=112&type=chunk) [Standard Code for Securities Transactions](index=17&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company adopted and confirmed compliance with the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules by all directors during the reporting period - The Company adopted the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules[99](index=99&type=chunk) - All directors confirmed compliance with the required standards set out in the Standard Code during the reporting period[99](index=99&type=chunk) [Audit Committee](index=17&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors, reviewed the Group's accounting principles, practices, internal controls, risk management, and annual results - The Audit Committee comprises four independent non-executive directors: Mr. Li Kit Chi, Mr. Lung Tsz Ming, Ms. Kwok Man Wai, and Ms. Yang Jing[100](index=100&type=chunk) - The Audit Committee reviewed the Group's accounting principles and practices and discussed matters related to audit, internal control, risk management, and financial reporting[100](index=100&type=chunk) [Review of Preliminary Announcement](index=17&type=section&id=Review%20of%20Preliminary%20Announcement) Ernst & Young, the Group's independent auditor, confirmed the annual results in the preliminary announcement align with the consolidated financial statements but did not perform an assurance engagement - Ernst & Young, the independent auditor, agreed that the annual results in the preliminary announcement are consistent with the consolidated financial statements[85](index=85&type=chunk) - Ernst & Young's work does not constitute an assurance engagement conducted in accordance with standards issued by the Hong Kong Institute of Certified Public Accountants, thus no assurance is provided[85](index=85&type=chunk) [Others](index=18&type=section&id=Others) [Acknowledgement](index=18&type=section&id=Acknowledgement) The Board expressed sincere gratitude to all staff for their dedicated service and contributions, and to all shareholders for their support - The Board extends its sincere gratitude to all staff for their dedicated service, hard work, and significant contributions during the year[86](index=86&type=chunk) - Appreciation is also extended to all shareholders for their support of the Group[86](index=86&type=chunk) [Board of Directors](index=18&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprised three executive directors, five non-executive directors, and four independent non-executive directors - Executive Directors: Mr. Fung Chiu Chak, Victor, Mr. Chiu Chin Hung, and Mr. Lau Kin Fai[103](index=103&type=chunk) - Non-executive Directors: Mr. Wai Tsang Pang, Mr. Vikram Garg, Mr. Yuen Pak Man, Ms. Gu Ye, and Ms. Hou Xiangjia[103](index=103&type=chunk) - Independent Non-executive Directors: Mr. Lung Tsz Ming, George, Mr. Li Kit Chi, Mr. Kwok Man Wai, and Ms. Yang Jing[103](index=103&type=chunk)

Financial Performance - The company reported a revenue of HKD 1.426 billion for the six months ended June 30, 2023, compared to HKD 1.018 billion for the same period in 2022, representing a year-on-year increase of approximately 40.1%[12]. - The company incurred a loss attributable to ordinary shareholders of approximately HKD 41 million, compared to a loss of HKD 3 million for the same period in 2022, resulting in a loss per share of HKD 1.23[12]. - The gross loss for the period was HKD 1,851,000, compared to a gross profit of HKD 38,805,000 in the previous year[61]. - The company recorded a loss before tax of HKD 34,898,000, a significant decline from a profit of HKD 7,534,000 in the prior year[61]. - The net loss attributable to ordinary shareholders for the period was HKD 41,422,000, compared to a loss of HKD 2,851,000 in the same period last year[61]. - The total comprehensive loss for the period was HKD 42,436,000, compared to HKD 3,900,000 in the same period of 2022[64]. - The company reported a loss of HKD 41,422,000 during the period, impacting the overall equity[70]. - The company reported a total of HKD 606,419,000 in trade payables, warranty payables, accrued expenses, and provisions as of June 30, 2023, compared to HKD 561,782,000 at the end of 2022, representing an increase of approximately 8%[118]. Revenue and Customer Contracts - Revenue from external customers for the six months ended June 30, 2023, was HKD 1,425,958, an increase of 41.3% compared to HKD 1,008,383 for the same period in 2022[90]. - Total revenue for the six months ended June 30, 2023, was HKD 1,428,522, compared to HKD 1,017,027 in 2022, reflecting a growth of 40.5%[90]. - The company’s revenue from customer contracts for the six months ended June 30, 2023, was entirely derived from construction services in Hong Kong, amounting to HKD 1,425,958[92]. Assets and Liabilities - As of June 30, 2023, the company had cash on hand of approximately HKD 752 million, with total assets valued at approximately HKD 2.183 billion and net assets of approximately HKD 1.252 billion[15]. - Total liabilities amounted to approximately HKD 931 million, with financial liabilities around HKD 506 million[15]. - Non-current assets increased to HKD 289,923,000 as of June 30, 2023, up from HKD 281,459,000 at the end of 2022, representing a growth of 3.3%[66]. - Current assets rose to HKD 1,893,368,000, compared to HKD 1,846,694,000 at the end of 2022, marking an increase of 2.5%[66]. - Total current liabilities increased to HKD 798,441,000, compared to HKD 637,985,000 at the end of 2022, an increase of 25.1%[66]. - The net current assets decreased to HKD 1,094,927,000 from HKD 1,208,709,000, a decline of 9.4%[66]. - The total equity attributable to the company's ordinary shareholders decreased to HKD 1,252,372,000 as of June 30, 2023, down from HKD 1,343,189,000, a decrease of 6.8%[70]. Cash Flow and Financing - The company experienced a net cash outflow from operating activities of HKD 17,133,000, a significant decline from a net inflow of HKD 31,159,000 in the previous year[78]. - Cash flow from investment activities showed a net outflow of HKD 146,703,000, compared to HKD 75,705,000 in the prior period[81]. - The company’s cash flow from financing activities showed a net inflow of HKD 29,566,000, a recovery from a net outflow of HKD 58,588,000 in the previous year[81]. - The company’s interest-bearing borrowings were approximately HKD 191 million as of June 30, 2023, compared to HKD 153 million at the end of 2022[16]. - The group’s net cash level resulted in a debt-to-equity ratio of zero as of June 30, 2023[23]. Dividends and Share Options - The board decided not to declare any interim dividend for the six months ended June 30, 2023, compared to HKD 0.01 per share for the same period in 2022[27]. - The company declared a dividend of HKD 50,491,000 for the year-end 2022, which was paid during the period[70]. - The company operates a share option scheme adopted on December 3, 2020, to reward eligible participants contributing to the company's operations[40]. - The company reported a total of 22,000,000 stock options granted as of January 1, 2023, with an exercise price of HKD 0.49 per share, valid from January 1, 2022, to May 24, 2025[41]. - The total number of stock options available for grant as of June 30, 2023, was 169,003,570 shares, representing approximately 2.91% of the total issued shares[50]. Employment and Management - The group employed approximately 836 employees as of June 30, 2023, with compensation guidelines based on current market salary levels and employee performance[26]. - The remuneration for key management personnel was HKD 22,717,000 for the period, a slight decrease from HKD 23,436,000 in the same period last year[123]. - The company is currently seeking suitable candidates to fill the independent non-executive director position to comply with listing rules regarding board composition[31]. - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the financial reporting system and risk management[32]. Risks and Commitments - The company continues to monitor currency risks closely and will consider forward contracts when necessary[18]. - The group invested approximately HKD 44 million in machinery and equipment as of June 30, 2023, with capital commitments related to these purchases amounting to about HKD 19 million[19]. - The company has a contingent liability related to performance guarantees for construction projects amounting to HKD 397,576,000 as of June 30, 2023, down from HKD 461,254,000 at the end of the previous year[121]. - The company has not disclosed any new product or technology developments in the current report[60].

Financial Performance - For the six months ended June 30, 2023, the group recorded a revenue of HKD 1.426 billion, compared to HKD 1.018 billion for the same period in 2022, representing a year-on-year increase of approximately 40.1%[2] - The group reported a loss attributable to ordinary shareholders of approximately HKD 41 million, compared to a loss of HKD 3 million for the same period in 2022, resulting in a loss per share of HKD 1.23, compared to HKD 0.08 in the previous year[2] - Revenue for the six months ended June 30, 2023, was HKD 1,425,958 thousand, an increase from HKD 1,018,220 thousand in the same period of 2022, representing a growth of approximately 40%[25] - The company reported a loss before tax of HKD 34,898 thousand for the first half of 2023, compared to a profit of HKD 7,534 thousand in the same period of 2022[25] - The net loss for the period was HKD 41,422 thousand, significantly higher than the net loss of HKD 2,851 thousand in the previous year[25] - The company reported a pre-tax loss of HKD 34,898,000 for the period, compared to a loss of HKD 6,524,000 in the same period last year[43] - The net loss for the period was HKD 41,422,000, reflecting a deterioration from the previous year's performance[43] Assets and Liabilities - As of June 30, 2023, the group had cash on hand of approximately HKD 752 million, a slight decrease from HKD 770 million as of December 31, 2022[5] - The total assets and net assets of the group were approximately HKD 2.183 billion and HKD 1.252 billion, respectively, compared to HKD 2.128 billion and HKD 1.343 billion as of December 31, 2022[5] - The group’s total liabilities amounted to approximately HKD 931 million, an increase from HKD 785 million as of December 31, 2022[5] - Current assets totaled HKD 1,893,368 thousand as of June 30, 2023, compared to HKD 1,846,694 thousand at the end of 2022[33] - Current liabilities increased to HKD 798,441 thousand as of June 30, 2023, from HKD 637,985 thousand at the end of 2022[33] - The company's equity attributable to ordinary shareholders decreased to HKD 1,252,372 thousand as of June 30, 2023, from HKD 1,343,189 thousand at the end of 2022[35] - The contingent liabilities related to performance guarantees provided to banks decreased from approximately HKD 461 million at the end of 2022 to approximately HKD 398 million as of June 30, 2023[29] Capital Expenditure and Investments - The group plans to invest approximately HKD 44 million in purchasing machinery and equipment during the period[21] - The group has a capital commitment of approximately HKD 19 million related to the purchase of machinery and equipment as of June 30, 2023[21] - The company has a capital commitment of HKD 19,237,000 for property, machinery, and equipment as of June 30, 2023, up from HKD 16,463,000 at the end of 2022[76] - The group purchased properties, machinery, and equipment amounting to HKD 44,489,000 during the period[49] Dividends - The board of directors has resolved not to declare any interim dividend for the six months ended June 30, 2023, compared to a dividend of HKD 0.01 per share for the same period in 2022[24] - The company did not declare an interim dividend for the six months ending June 30, 2023[48] - The company did not declare an interim dividend for 2023, while it paid a total of HKD 33,660,000 in dividends for the same period in 2022[71] Operational Insights - The group maintains a cautious optimism regarding its core foundation and piling business, anticipating improved performance in the second half of 2023[17] - Interest income increased to HKD 10,625 thousand in the first half of 2023, compared to HKD 1,473 thousand in the same period of 2022[28] - Depreciation of property, machinery, and equipment increased to HKD 27,198,000 in 2023 from HKD 24,358,000 in 2022, representing an increase of approximately 7.5%[68] - The total tax expense for the period was HKD 6,524,000, down from HKD 10,385,000 in 2022, indicating a decrease of about 37.5%[70] - Trade receivables at the end of the reporting period amounted to HKD 606,419,000, compared to HKD 561,782,000 at the end of 2022, showing an increase of approximately 7.9%[75] - The company reported a net foreign exchange gain of HKD 116,000 in 2023, compared to a loss of HKD 74,000 in 2022[68] Strategic Initiatives - The company is in the process of identifying suitable candidates for the position of independent non-executive director to comply with listing rules[79] - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting and risk management standards[80] - The company is exploring potential acquisitions to strengthen its market position, with a focus on companies that align with its strategic goals[89] - A new marketing strategy has been implemented, aiming to increase brand awareness and customer retention by E%[89] - Overall, the company remains committed to enhancing shareholder value through strategic initiatives and operational efficiencies[89]

年 內 其 他 全 面 收 益╱（開 支），扣 除 稅 項 (1,924) 632 | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------|-------|-------|-------|-------|------------|------------| | | | | | | | | | | | | | | | | | | | | | | 二零二二年 | 二零二一年 | | | | | | | 千港元 | 千港元 | | | | | | | | | | 物 業、機 器 及 設 備 折 舊 | | | | | 49,726 | 45,820 | | 使用權資產折舊 | | | | | 13,378 | 16,198 | | 應收貿易賬款減值 * | | | | | 1,427 | 1,088 | | | | | | | (693) | | | 合 約 資 產 減 值╱（減 值 撥 ...

Financial Performance - The group recorded a revenue of HKD 1.018 billion for the six months ended June 30, 2022, compared to HKD 1.109 billion for the same period in 2021, representing a decrease of approximately 8.2%[8] - The loss attributable to ordinary shareholders was approximately HKD 3 million, an improvement from a loss of HKD 8 million in the same period last year, equating to a loss per share of HKD 0.08 compared to HKD 0.24[8] - The foundation piling segment generated revenue of approximately HKD 1.008 billion, down from HKD 1.088 billion in the previous year, while profit for this segment increased to HKD 43 million from HKD 30 million[9] - The company reported revenue of HKD 1,018,220,000 for the six months ended June 30, 2022, a decrease from HKD 1,109,363,000 in the same period of 2021, representing a decline of approximately 8.2%[44] - Gross profit for the same period was HKD 38,805,000, up from HKD 32,750,000 in 2021, indicating an increase of about 18.5%[44] - The company incurred a loss of HKD 2,851,000 for the six months ended June 30, 2022, compared to a loss of HKD 7,956,000 in the previous year, reflecting an improvement of approximately 64.2%[44] - Basic and diluted loss per share for the period was HKD 0.08, compared to HKD 0.24 in the same period of 2021, showing a reduction in loss per share by 66.7%[44] - Total comprehensive loss attributable to equity holders of the company was HKD 3,900,000 for the period, down from HKD 7,768,000 in 2021, indicating a decrease of approximately 49.8%[47] - The company reported a loss of HKD 2,851,000 for the period, compared to a loss of HKD 7,956,000 in the same period last year, showing an improvement in financial performance[77] Cash Flow and Assets - As of June 30, 2022, the group had cash on hand of approximately HKD 597 million, down from HKD 651 million at the end of 2021[11] - Total assets and net assets were approximately HKD 1.919 billion and HKD 1.366 billion, respectively, compared to HKD 2.081 billion and HKD 1.415 billion at the end of 2021[11] - The group maintained a net cash position, with a debt-to-equity ratio of zero as of June 30, 2022, due to the absence of net debt[12] - The company reported a cash flow from operating activities of HKD 31,159 million, compared to HKD 39,118 million in the previous year, a decrease of approximately 20.5%[62] - The company’s cash and cash equivalents decreased from HKD 650,890 million to HKD 596,700 million, a decline of approximately 8.3%[49] - The total cash and cash equivalents decreased by HKD 103,134,000 during the period, compared to an increase of HKD 53,686,000 in the prior year, indicating a shift in cash flow dynamics[65] Investments and Expenditures - Capital expenditures for the six months ended June 30, 2022, amounted to approximately HKD 21 million for the purchase of machinery and equipment[15] - The net cash flow used in investment activities was HKD (75,705,000), significantly higher than HKD (5,575,000) in the previous year, indicating increased investment outflows[65] - The group acquired properties, machinery, and equipment for HKD 20,549,000 during the period, an increase from HKD 9,709,000 in the previous year[95] Shareholder Information - The interim dividend declared for the six months ended June 30, 2022, is HKD 0.01 per share, consistent with the previous year[19] - Major shareholders include Blackstone Group Management L.L.C., holding 70.00% of the issued share capital, and other entities associated with Blackstone[36] - The company declared an interim dividend of HKD 0.01 per ordinary share, totaling HKD 33,660, consistent with the previous year[92] Governance and Management - The audit committee, consisting of four independent non-executive directors, oversees the financial reporting system, risk management, and internal control systems[23] - The board of directors includes key figures such as the chairman and executive directors, ensuring strong governance[109] - The financial director is responsible for overseeing the financial health of the company, contributing to strategic decisions[109] - The company is actively involved in corporate governance through various committees, including the remuneration and nomination committees[109] Market Outlook and Strategy - The group is cautiously optimistic about its business outlook, driven by the resumption of construction activities and a steady tender volume from both public and private sectors[10] - The company will continue to focus on its foundation piling business while seeking suitable investment opportunities to leverage its strong balance sheet[10] - The company is focused on expanding its market presence and exploring new strategies for growth[110] Liabilities and Contingent Liabilities - The contingent liabilities related to performance guarantees increased from approximately HKD 4.14 billion to HKD 4.51 billion during the reporting period[17] - The company had contingent liabilities of HKD 450,644,000 related to performance guarantees as of June 30, 2022, compared to HKD 413,628,000 at the end of the previous year[104] Employee Information - The company employed approximately 793 employees as of June 30, 2022, with compensation guidelines based on current market salary levels and employee performance[18] - The remuneration for key management personnel was HKD 23,436,000 for the period, an increase from HKD 21,916,000 in the previous year[106] Other Financial Information - The company reported other comprehensive losses of HKD 1,049,000 due to foreign exchange differences, compared to a gain of HKD 188,000 in the previous year[47] - The company has adopted revised Hong Kong Financial Reporting Standards, which did not have a significant financial impact on the interim financial statements[72] - The company reported a total of HKD 6,738 in subsidy income for the six months ended June 30, 2022, which was not recorded in the previous year[86]

Financial Performance - The company reported a loss attributable to shareholders of HKD 100,000 for the year ended December 31, 2021, compared to a loss of HKD 105 million for the previous year, representing a significant improvement [6]. - Revenue for the year was HKD 2.204 billion, down from HKD 3.054 billion in the previous year, indicating a decrease of approximately 27.8% [6]. - The foundation piling segment generated revenue of approximately HKD 2.164 billion, down from HKD 3.018 billion, but recorded a profit of HKD 73 million compared to a loss of HKD 32 million in the previous year [8]. - The company reported a loss attributable to ordinary shareholders of HKD 107,000 for the year ended December 31, 2021, compared to a loss of HKD 104,882,000 in 2020 [154]. - Total assets decreased to HKD 2,080,696,000 from HKD 2,267,268,000 in the previous year, reflecting a decline of approximately 8.25% [154]. - Total liabilities were HKD 665,604,000, down from HKD 834,141,000 in 2020, indicating a reduction of about 20.19% [154]. Cash and Assets - The company maintained a cash balance of approximately HKD 651 million as of December 31, 2021, down from HKD 707 million the previous year [13]. - Total assets and net assets were approximately HKD 2.081 billion and HKD 1.415 billion, respectively, compared to HKD 2.267 billion and HKD 1.433 billion in the previous year [13]. - The total liabilities decreased to approximately HKD 666 million from HKD 834 million, with financial liabilities at about HKD 400 million, down from HKD 470 million [13]. - The equity attributable to ordinary shareholders was HKD 1,415,092,000, slightly down from HKD 1,433,127,000 in the previous year [154]. Dividends - The company proposed a final dividend of HKD 0.015 per share, compared to no dividend in the previous year [7]. - The company proposed a final dividend of HKD 0.015 per ordinary share, following an interim dividend of HKD 0.01 per share paid on September 24, 2021 [152]. - The company has a dividend policy that is regularly reviewed to ensure its principles and guidelines remain appropriate for distributing profits to shareholders [129]. Corporate Governance - The company is committed to maintaining high standards of governance and compliance through its board committees [33]. - The company has maintained full compliance with the corporate governance code as of December 31, 2021 [41]. - The board consists of 12 directors, with 3 executive directors, 5 non-executive directors, and 4 independent non-executive directors, ensuring a strong independent component [43]. - The company has established a risk management and internal control system that complies with the corporate governance code, ensuring effective monitoring of risks associated with its operations [108]. - The internal control system is based on the COSO 2013 framework, which aims to achieve effective operations, reliable financial reporting, and compliance with applicable laws [111]. - The company has established a shareholder communication policy to ensure timely information dissemination and encourage shareholder participation in meetings [124]. - The company has a commitment to maintaining good corporate governance practices in line with the Hong Kong Stock Exchange's listing rules [41]. Board and Leadership - The company has a diverse leadership team with expertise in various sectors, including engineering, real estate, and finance [32]. - The independent non-executive directors bring over 37 years of experience in audit, accounting, and corporate services [33]. - The chairman, Mr. Wei Zengpeng, leads the board and is responsible for formulating the group's strategy and overall policy [48]. - The financial director, Ms. Ye Peishan, has over 21 years of experience in auditing, internal control, and financial management [37]. - The board has delegated daily responsibilities to executive directors and senior management under the chairman's leadership [42]. - The company has a diverse board with members possessing extensive professional knowledge and experience in various fields [43]. Risk Management - The audit committee has been tasked with reviewing the company's compliance policies, including anti-bribery and anti-corruption measures [80]. - The board is responsible for the effectiveness of the group's risk management and internal control systems, which are reviewed annually [119]. - The audit committee conducts an annual review of the internal control system, covering financial, operational, compliance, and risk management functions [119]. Shareholder Information - Blackstone Group holds a significant 70.00% stake in the company, amounting to 2,356,146,781 shares [192]. - Major shareholders include Chen's Group International Limited and its affiliates, each holding 235,106,000 shares, representing 6.98% of the issued share capital [196]. - The company has a diverse shareholder base, with several entities holding over 5% of the issued share capital [196]. - The company has a total of 167,600,000 unexercised stock options as of December 31, 2021 [183]. Compliance and Legal - The company has not faced any serious violations of applicable laws and regulations during the year [146]. - The company has allocated resources to ensure compliance with relevant laws and regulations in Hong Kong, Bermuda, and China [146]. - The company has implemented procedures for handling and disclosing inside information, ensuring compliance with securities regulations [117].