Financial Performance - The company reported a revenue of HKD 4,716,239,000 for the six months ended June 30, 2023, representing a 24% increase from HKD 3,806,036,000 in the same period of 2022[3] - Gross profit for the same period was HKD 675,387,000, up from HKD 535,659,000, indicating a gross margin improvement[3] - Net profit attributable to shareholders was HKD 436,655,000, a significant increase of 36% compared to HKD 321,763,000 in the previous year[3] - Basic and diluted earnings per share increased to HKD 0.1936 from HKD 0.1490, reflecting a 30% growth[3] - The company reported a net comprehensive income of HKD 428,710,000 for the period, up from HKD 293,236,000, indicating a 46% increase[5] - Pre-tax profit for the six months ended June 30, 2023, was HKD 498,187,000, representing a 33.6% increase from HKD 373,093,000 in 2022[12] - The company declared an interim dividend of HKD 0.055 per share for 2023, an increase from HKD 0.041 per share in 2022, totaling approximately HKD 124,055,000[18] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 8,969,507,000, compared to HKD 8,014,118,000 at the end of 2022, showing a growth of 12%[6] - Current liabilities increased to HKD 7,531,668,000 from HKD 6,711,790,000, representing a 12% rise[7] - The company’s non-current assets decreased slightly to HKD 2,152,473,000 from HKD 2,285,744,000, a decline of 6%[6] - The company’s non-current bank loans decreased to HKD 607,328 as of June 30, 2023, from HKD 906,012 as of December 31, 2022[25] - The company’s estimated taxable profit for the period included a provision of HKD 38,456,000 for Hong Kong profits tax, up from HKD 28,552,000 in 2022[17] Operational Highlights - The company plans to continue expanding its operations in the facade engineering and general contracting sectors, focusing on urban development management and consulting services[11] - The company continues to focus on expanding its market presence in Hong Kong and Macau while strategically reducing overseas operations[29] - The company secured several large-scale facade projects in Hong Kong, including the Kai Tak Emergency Hospital and Prince of Wales Hospital, enhancing its market leadership[31] - The company aims to leverage its brand advantage in the facade industry to capture market opportunities and drive innovation[29] - The company anticipates stable progress in its total contracting business in mainland China, focusing on high-quality development[30] Revenue Segmentation - Revenue for the six months ended June 30, 2023, was HKD 4,695,739,000, an increase of 24.0% compared to HKD 3,784,916,000 for the same period in 2022[13] - The segment revenue from curtain wall engineering was HKD 3,647,654,000, up 25.8% from HKD 2,899,023,000 in 2022[12] - The wall business segment's revenue increased to HKD 3.648 billion, a 25.8% rise from HKD 2.899 billion in the previous year[35] Financial Management - Total financial expenses for the six months ended June 30, 2023, were HKD 33,429,000, significantly higher than HKD 11,956,000 in 2022[15] - The group’s financial expenses increased to HKD 33 million due to reduced interest capitalization and rising interbank lending rates, marking a 97% increase when excluding the capitalization factor[39] - The group’s net gearing ratio was approximately 30.8% as of June 30, 2023, compared to 17.6% at the end of 2022[42] Employee and Operational Efficiency - The group employed a total of 4,626 employees as of June 30, 2023, down from 4,964 at the end of 2022[45] - The group’s administrative, sales, and other operating expenses slightly decreased to HKD 1.60 billion from HKD 1.62 billion year-on-year[38] Market Outlook - The company expects global economic recovery to continue in the second half of the year, but there are risks of slowdown due to persistent inflation and tightening monetary policies[46] - There is an increasing demand for inspection, maintenance, and renovation of aging glass curtain walls due to stricter safety standards and the aging of buildings[47] Strategic Initiatives - The company emphasizes enhancing its design capabilities and recruiting various professionals to meet peak project demands[48] - The company aims to strengthen project management and maintain ideal profit levels while controlling project risks[47] - The company is actively developing its glass curtain wall maintenance and inspection operations to leverage its technical advantages[47] - The company’s strategy includes enhancing internal collaboration and deepening strategic partnerships with major clients[31] Miscellaneous - The company has not purchased, sold, or redeemed any of its listed securities in the six months ending June 30, 2023[51] - The audit committee, composed of three independent non-executive directors, reviewed the company's unaudited interim results for the six months ending June 30, 2023[52]

Financial Performance - Revenue for the year ended December 31, 2022, reached HK$7,668,983,000, representing a significant increase from HK$6,294,827,000 in 2021, marking a growth of approximately 21.9%[10] - Profit attributable to owners of the Company for 2022 was HK$421,852,000, up from HK$291,976,000 in 2021, reflecting a growth of about 44.5%[10] - Total assets increased to HK$10,299,862,000 in 2022, compared to HK$8,809,629,000 in 2021, indicating a growth of approximately 16.8%[10] - Return on equity attributable to owners of the Company improved to 20.2% in 2022, up from 18.2% in 2021[10] - The Company declared a dividend of HK$6.5 cents per share for 2022, an increase from HK$4.7 cents in 2021, representing a growth of approximately 38.3%[10] - Revenue from the principal business reached HK$7,669 million, representing a year-on-year increase of 21.8%[67] - Profit attributable to shareholders was HK$422 million, reflecting a 44.5% increase compared to the previous year[67] - Earnings per share increased to HK19.11 cents, a year-on-year rise of 41.0%[67] - The Group recorded aggregate revenue of HK$7,669 million for the year ended December 31, 2022, representing a 21.8% increase compared to HK$6,295 million in 2021[90] - Basic earnings per share increased by 41.0% to HK19.11 cents, up from HK13.55 cents in the previous year[90] Project Achievements - The Company won a subcontract for curtain wall works for the Cotai Phase IV project in Macau, valued at approximately HK$2,240 million, which will be the largest curtain wall contract in the world by single contract value[26] - The Company successfully bid for the Tseung Kwan O Chinese Medicine Hospital project, marking a significant achievement in the public works sector[23] - The Group maintained its leading position in the facade market in Hong Kong and won the bidding for Phase IV of the Galaxy project in Macau, the largest contract value for a standalone building facade globally[70] - The Group's facade projects in Mainland China included significant contracts such as OPPO's Chang'an R&D Centre and ByteDance's office building in Chengdu[74] - The Group successfully won the bid for the first municipal whole-process consulting project, Longlan Avenue North Extension Project, indicating a strategic shift towards full-process consultation services[79] Sustainability and Innovation - The Company signed its first three-year unsecured green revolving loan facility of HK$300 million to enhance its "green building" capabilities[21] - The Company implemented the national "Dual Carbon" policy through its subsidiary, receiving recognition for stable emission of air pollutants[18] - The Light S photovoltaic façade product was launched, representing a significant breakthrough in the BIPV field[36][37] - The Group launched the photovoltaic facade product – Light S, and continued to develop new photovoltaic facade products, enhancing its technological innovation[75] - The Group aims to build differentiated competitive advantages through technology empowerment and refined management, progressing towards becoming the world's most competitive facade technology conglomerate[145] Corporate Governance - The Company emphasizes high standards of corporate governance, aligning with the Corporate Governance Code throughout the year ended December 31, 2022[143] - The Board consists of eight members, including three Executive Directors and five Non-executive Directors, with a gender ratio of approximately 5.7:1 male to female employees as of December 31, 2022[153][164]. - The Board has established four committees to assist in governance responsibilities, ensuring a structured approach to oversight and decision-making[150][152]. - The Company aims to enhance shareholder value and promote long-term sustainable success through effective governance and strategic oversight by the Board[150][152]. - The Company has mechanisms in place to ensure independent views are available to the Board, which are reviewed annually[174] Financial Position and Management - As of 31 December 2022, the on-hand contract value amounted to approximately HK$26,108 million, with a backlog of approximately HK$13,403 million[94] - The Group's finance costs increased to HK$51 million in 2022, up from HK$30 million in 2021, reflecting a 21% increase when excluding interest capitalization effects[96] - Cash and cash equivalents stood at HK$975 million as of December 31, 2022, compared to HK$928 million in 2021[96] - The net gearing ratio improved to approximately 17.6% as of December 31, 2022, down from 25.6% in 2021[96] - The net cash inflow from operating activities for 2022 was HK$246 million[105] Employee and Leadership Development - The company employed a total of 4,964 employees as of December 31, 2022, an increase from 4,434 employees in the previous year[106] - The leadership team is well-equipped to drive the company's strategic planning and business development initiatives, ensuring alignment with market trends and opportunities[120][126] - The company is focused on aligning the interests of management, employees, and shareholders through competitive remuneration policies[106] - The diverse backgrounds of the board members in finance, law, and engineering provide a comprehensive strategic advantage for the company in its future endeavors[121][125] Market Expansion - The company is actively expanding its market presence with significant projects in Hong Kong, Macau, and mainland China, indicating a strategic focus on regional growth[55] - The Group plans to further develop the Hong Kong and Macau markets while steadily exploring the Mainland China market, aiming to reduce the proportion of overseas markets[82] - The company is committed to enhancing its project portfolio with a mix of residential, commercial, and public building developments, ensuring a balanced growth strategy[59]

Financial Performance - For the three months ended March 31, 2023, the group's unaudited revenue was approximately HKD 1,724,639,000, representing a 30.5% increase from HKD 1,321,303,000 for the same period in 2022[2] - The operating profit for the same period was approximately HKD 329,979,000, up from HKD 244,429,000 in the previous year, indicating a growth of 35.1%[2] Contractual Activity - The total new contracts signed during the three months amounted to approximately HKD 3.523 billion[3] - As of March 31, 2023, the group's uncompleted contract amount was approximately HKD 15.135 billion[3]

Financial Performance - Revenue for the year ended December 31, 2022, was HKD 7,668,983, representing a 21.8% increase from HKD 6,294,827 in 2021[2] - Profit attributable to shareholders increased by 44.5% to HKD 421,852 from HKD 291,976 in the previous year[2] - Basic earnings per share rose by 41.0% to HKD 19.11 compared to HKD 13.55 in 2021[2] - Gross profit for the year was HKD 825,305, up from HKD 676,854 in 2021[4] - The company reported a net profit of HKD 409,960 for the year, up from HKD 283,907 in 2021[5] - The pre-tax profit for 2022 was HKD 508,214,000, an increase of 28.3% compared to HKD 395,973,000 in 2021[15] - The total revenue for the year 2022 was HKD 7,668,983,000, representing an increase of 21.9% from HKD 6,294,827,000 in 2021[15] - The total cost of sales for the year was HKD 6,843,678,000, which increased from HKD 5,617,973,000 in 2021, marking a rise of 21.8%[19] Assets and Liabilities - The total assets less current liabilities increased to HKD 3,588,072 from HKD 2,888,464 in 2021[8] - Non-current assets decreased to HKD 2,285,744 from HKD 2,621,072 in 2021[7] - Cash and cash equivalents at year-end were HKD 974,838, compared to HKD 928,104 in 2021[7] - The company's equity attributable to shareholders increased to HKD 2,092,325 from HKD 1,670,735 in 2021[8] - The company’s bank borrowings amounted to HKD 1.326 billion as of December 31, 2022, slightly down from HKD 1.333 billion in 2021[29] - The company’s non-current bank borrowings stood at HKD 906.012 million as of December 31, 2022, compared to HKD 508.593 million in 2021, showing an increase of 77.9%[29] - Trade payables increased significantly to HKD 3.486 billion in 2022 from HKD 2.072 billion in 2021, indicating a rise of 68%[30] Revenue Segments - The group operates in three main segments: curtain wall engineering, general contracting, and operational management, with operational management including urban development management and consulting services[14] - The revenue from the curtain wall engineering segment was HKD 5,784,122,000, up 29.2% from HKD 4,478,100,000 in 2021[15] - The operating management segment generated revenue of HKD 989,869,000, a slight decrease of 2.0% from HKD 1,010,135,000 in 2021[15] - The revenue from the operation management segment declined to HKD 990 million from HKD 1.010 billion in 2021, with operating profit dropping to HKD 64 million from HKD 181 million[41] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.041 per share for 2022, up from HKD 0.03 per share in 2021, and proposed a final dividend of HKD 0.024 per share, compared to HKD 0.017 per share in 2021[24] - The board proposed a final dividend of HKD 0.024 per share, increasing from HKD 0.017 per share in the previous year, resulting in a total annual dividend of HKD 0.065 per share[54] Operational Highlights - The company successfully launched the photovoltaic curtain wall product Light S and is continuing to develop new photovoltaic curtain wall products[35] - The company has a backlog of contracts amounting to approximately HKD 26.108 billion, with unfinished contracts valued at about HKD 13.403 billion[44] - The company raised approximately HKD 219 million from a share placement at HKD 2.20 per share, with net proceeds allocated 70.78% for Macau and 29.22% for Hong Kong curtain wall project materials and contract payments[48] Employee and Market Strategy - The company employed a total of 4,964 employees as of December 31, 2022, up from 4,434 employees in the previous year[50] - The company’s strategy focuses on expanding in Hong Kong and Macau while contracting overseas operations, leveraging its brand advantage in the façade industry[32] - The company plans to maintain a focus on high-end markets and enhance project management to improve competitiveness in the curtain wall business[52] - The company aims to strengthen its design teams in Hong Kong and North America while expanding its design team in mainland China to meet project demands[53] Governance and Compliance - The company has adhered to all applicable corporate governance codes as per the Hong Kong Stock Exchange regulations[58] - The audit committee, composed of three independent non-executive directors, has reviewed the consolidated financial statements for the year ended December 31, 2022[60] - The financial figures presented in the announcement have been acknowledged by the external auditor, Ernst & Young, for the group's consolidated financial statements for the year ended December 31, 2022[60] - Ernst & Young's work does not constitute an assurance engagement under the Hong Kong Standards on Auditing, and therefore, no opinion or assurance conclusion has been issued[60] Economic Outlook - The company anticipates strong economic recovery in the Hong Kong and Macau regions, driven by the reopening with mainland China and other countries[51] - The group has adopted new accounting standards effective from January 1, 2022, with no significant impact on financial performance due to the absence of business combinations during the year[10] - The group reported no changes in financial liabilities during the year, resulting in no impact on financial position or performance from the amendments to HKFRS 9[12] Other Information - Other comprehensive income for the year was a loss of HKD 95,132, compared to a gain of HKD 98,961 in 2021[6] - The administrative, sales, and other operating expenses increased by 6.2% to HKD 291 million due to the expansion of the curtain wall engineering business[42] - The company maintained a yield of 10.2% to 10.7% on its infrastructure project investments, consistent with the previous year[27] - The estimated taxable profit for the year was calculated based on a tax rate of 16.5% for Hong Kong profits tax[22] - The company reported net other income of HKD 25,432,000 for 2022, compared to HKD 22,622,000 in 2021, reflecting a growth of 12.4%[18] - The depreciation expense for property, plant, and equipment was HKD 138,478,000 in 2022, down from HKD 171,681,000 in 2021[19] - The net cash inflow from operating activities for the year 2022 was HKD 246 million[49] - No significant subsequent events have occurred since the end of the financial year up to the announcement date[59] - The chairman expressed gratitude to shareholders, customers, suppliers, and employees for their support and hard work[61] - The board of directors includes the chairman and non-executive director Zhang Haipeng, along with executive directors and independent non-executive directors[61]

Financial Performance - For the nine months ended September 30, 2022, the group's unaudited revenue was approximately HKD 5,106,932,000, representing a 35.4% increase from HKD 3,768,519,000 for the same period in 2021[2] - The operating profit for the same period was approximately HKD 484,431,000, up from HKD 345,654,000 in 2021, indicating a growth of 40.1%[2] Contractual Metrics - The total new contracts signed by the group amounted to approximately HKD 8.071 billion as of September 30, 2022[3] - As of September 30, 2022, the group had an uncompleted contract value of approximately HKD 13.861 billion[3]

Financial Performance - For the six months ending June 30, 2022, the company reported a revenue of HKD 3.806 billion, representing a year-on-year growth of 40.8%[8] - The profit attributable to shareholders for the same period was HKD 322 million, an increase of 42.5% year-on-year[8] - Earnings per share reached HKD 0.149, reflecting a year-on-year growth of 42.2%[8] - The total revenue for the six months ended June 30, 2022, was HKD 3.806 billion, an increase of 40.8% compared to HKD 2.703 billion for the same period last year[17] - The profit attributable to the owners of the company was HKD 322 million, up 42.5% from HKD 226 million year-on-year[17] - The basic earnings per share increased to HKD 0.149 from HKD 0.1048, reflecting a growth of 42.2%[17] - The gross profit for the six months ended June 30, 2022, was HKD 535,659,000, compared to HKD 381,088,000 in the same period of 2021, reflecting an increase of approximately 40.7%[31] - The net profit for the period was HKD 317,815,000, compared to HKD 221,588,000 in the previous year, indicating a growth of approximately 43.4%[32] - Pre-tax profit for the six months ended June 30, 2022, was HKD 321,763,000, up from HKD 225,803,000 in the same period of 2021, representing a growth of 42.4%[50] - Basic and diluted earnings per share for the six months ended June 30, 2022, were 14.90 HK cents, compared to 10.48 HK cents for the same period in 2021, reflecting an increase of 42.9%[50] Dividends and Share Capital - The company announced an interim dividend of HKD 0.041 per share, considering its profit situation and cash flow levels[8] - The company declared an interim dividend of 4.1 HK cents per share for the six months ended June 30, 2022, compared to 3 HK cents per share for the same period in 2021, representing a 36.7% increase[49] - The total issued share capital increased to 2,255,545,000 shares as of June 30, 2022, from 2,155,545,000 shares at the end of 2021[62] - The company raised approximately HKD 219,000,000 from the issuance of 100,000,000 shares at HKD 2.20 each on June 24, 2022[62] Project and Market Development - The company secured multiple high-end curtain wall projects in mainland China, including the OPPO Chang'an R&D Center and the World Meteorological Center projects[10] - The company emphasized technological innovation, enhancing its core competitiveness with advanced glass curtain wall technology and automated production lines[10] - The company is actively responding to national "dual carbon" goals by developing BIPV and MIC curtain wall systems to support green building initiatives[10] - The company maintained its leading position in the Hong Kong curtain wall market, winning several large residential and commercial projects[10] - The construction general contracting business is progressing steadily, with new contracts awarded for various projects, including the Wong Chuk Hang Station Phase 4 residential project[11] - The company is focusing on expanding its market share in the Hong Kong and Macau regions while implementing a differentiated strategy in the mainland market[9] Financial Position and Assets - The company's total assets as of June 30, 2022, were HKD 9,699,171,000, up from HKD 8,809,629,000 as of December 31, 2021, indicating a growth of about 10.0%[33] - The company's equity attributable to shareholders increased to HKD 2,152,000,000 as of June 30, 2022, from HKD 1,671,000,000 as of December 31, 2021, marking a rise of about 28.7%[28] - The total new contract value signed was HKD 6.009 billion, achieving 60.1% of the annual target of at least HKD 10 billion[23] - The total contract value on hand was approximately HKD 23.911 billion, with uncompleted contracts amounting to HKD 13.013 billion[23] Expenses and Liabilities - Administrative, sales, and other operating expenses rose to HKD 162 million, up from HKD 92 million in the previous year[21] - The net gearing ratio as of June 30, 2022, was approximately 31.4%, compared to 25.6% at the end of the previous year[25] - The company reported a decrease in non-current liabilities, with total non-current liabilities at HKD 701,543,000, down from HKD 766,736,000 in the previous year[34] - Bank loans amounted to HKD 1,458,821,000 as of June 30, 2022, an increase of 9.4% from HKD 1,333,156,000 as of December 31, 2021[59] - The average interest rate on bank loans increased to 2.45% as of June 30, 2022, compared to 2.03% as of December 31, 2021[60] - Trade payables and other payables totaled HKD 2,624,968,000 as of June 30, 2022, up 26.6% from HKD 2,072,159,000 as of December 31, 2021[61] Employee and Operational Metrics - The company employed a total of 5,018 employees as of June 30, 2022, an increase from 4,434 employees as of December 31, 2021, representing a growth of approximately 13.2%[30] - The operating management segment's revenue increased to HKD 602 million, up from HKD 561 million year-on-year[20] - The operating management segment generated revenue of HKD 601,915,000, compared to HKD 561,209,000 in the prior year, reflecting an increase of approximately 7.3%[41] Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code as set out in the Listing Rules during the reporting period[75] - A review of the unaudited condensed consolidated financial statements for the six months ending June 30, 2022, was conducted by a committee of three independent non-executive directors[77] - The company has adopted the Standard Code for Securities Transactions by Directors as its disciplinary code for securities transactions[76] - There have been no changes in the information of directors that require disclosure under the Listing Rules since the date of the last annual report[78]

Revenue Performance - For the three months ended March 31, 2022, the group's unaudited revenue was approximately HKD 1,321,303,000, representing an increase of 24.7% compared to HKD 1,059,533,000 for the same period in 2021[2] Profitability - The operating profit for the same period was approximately HKD 244,429,000, up 35.3% from HKD 180,638,000 in the previous year[2] Contractual Performance - The total new contracts signed by the group amounted to approximately HKD 3.046 billion for the three months ended March 31, 2022[3] - As of March 31, 2022, the group's uncompleted contract amount was approximately HKD 12.635 billion[3]

Financial Performance - For the fiscal year ending December 31, 2021, the company reported a revenue of HKD 6,294.83 million, representing a growth of 38.8% compared to HKD 4,535.66 million in 2020[9]. - The net profit attributable to shareholders for 2021 was HKD 291.98 million, an increase of 50.2% from HKD 194.34 million in 2020[9]. - The total assets of the company reached HKD 8,809.63 million in 2021, up from HKD 7,388.90 million in 2020, indicating a growth of 19.2%[9]. - The return on equity for 2021 was 18.2%, an increase from 13.9% in 2020[9]. - The company achieved a revenue of HKD 6.295 billion for the year, representing a growth of 38.8% compared to the previous year[33]. - Shareholders' profit attributable to the company was HKD 292 million, an increase of 50.2% year-on-year[33]. - Earnings per share reached HKD 0.1355, reflecting a 50.2% increase compared to the end of the previous year[33]. - The company recorded total revenue of HKD 6.295 billion for the year ended December 31, 2021, representing a 38.8% increase from HKD 4.536 billion in 2020[46]. - The profit attributable to shareholders was HKD 292 million, up 50.2% from HKD 194 million in the previous year[46]. - The earnings per share increased to HKD 0.1355, a 50.2% rise compared to HKD 0.0902 in 2020[46]. - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous year[62]. - The company reported a net profit of HKD 291,976,000 for the year, compared to a loss of HKD 8,069,000 the previous year, indicating a significant turnaround in performance[169]. - Total comprehensive income for the year reached HKD 390,402,000, up from HKD 382,868,000 in the prior year, reflecting a stable growth trajectory[169]. Dividends and Shareholder Returns - The company announced a mid-year dividend of HKD 0.047 per share, reflecting a significant increase from HKD 0.03 per share in the previous year[19]. - The company plans to distribute a final dividend of HKD 0.017 per share, considering its profitability and cash flow[33]. - The group reported a total dividend payout of HKD 101,310,000 for the year, with a total annual dividend of HKD 0.047 per share, including an interim dividend of HKD 0.03 and a proposed final dividend of HKD 0.017[101]. - The company paid dividends totaling HKD 129,332,000 during the year, reflecting a commitment to returning value to shareholders[172]. Business Operations and Projects - The company secured a record residential project contract in Hong Kong worth HKD 580 million, marking the highest contract value in its history[19]. - The company completed over 310 overseas projects, establishing a strong competitive position in the global market[18]. - The company achieved a significant milestone by completing 140,000 square meters of curtain wall installation for the Shenzhen International Hotel project in just 100 days[21]. - New contract signings for curtain wall projects in Hong Kong and mainland China reached a historical high during the year[35]. - The company is actively developing high-end curtain wall projects to leverage its brand effect[35]. - The company secured multiple high-profile projects in mainland China, including contracts with OPPO and Huawei, contributing to a record high in new contracts signed[36]. - The company is focused on expanding its market presence in Hong Kong and mainland China while reducing overseas operations[33]. - The total new contract value signed was HKD 8,208 million for the year, achieving the annual target[51]. - The total backlog of contracts as of December 31, 2021, was approximately HKD 18,715 million, with unfinished contracts amounting to HKD 10,850 million[51]. Financial Position and Assets - Cash and cash equivalents increased to HKD 928 million as of December 31, 2021, compared to HKD 858 million in 2020[53]. - The net debt-to-equity ratio was approximately 25.6% as of December 31, 2021, up from 15.4% in 2020[54]. - The company’s equity attributable to shareholders increased to HKD 1,670,735 thousand in 2021 from HKD 1,403,019 thousand in 2020, reflecting a stronger financial position[166]. - The company’s total assets increased to HKD 1,670,735,000 as of December 31, 2021, compared to HKD 1,585,058,000 at the end of the previous year, indicating growth in asset base[169]. - Trade receivables net value amounted to HKD 1.413 billion, and contract assets were HKD 2.450 billion, representing 44% of the group's total assets[154]. Governance and Compliance - The company has adopted the Corporate Governance Code as per the Hong Kong Stock Exchange's Listing Rules, ensuring high standards of corporate governance[73]. - The board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors, complying with the requirement of at least one-third independent directors[74]. - The company emphasizes the importance of having sufficient time for each board member to effectively fulfill their duties[78]. - The board is responsible for approving the group's financial statements, dividends, external financing, and significant acquisitions or disposals[74]. - Independent non-executive directors contribute to the board by providing independent and objective judgment, ensuring the integrity of financial information and robust risk management systems[76]. - The company has established internal controls and approval processes to monitor compliance with applicable laws and regulations[107]. - The company has complied with all relevant laws and regulations throughout the fiscal year ending December 31, 2021, ensuring adherence to legal requirements in all significant aspects[107]. Risk Management - The company has established a risk management framework that includes multiple approval checkpoints throughout the project lifecycle, ensuring risks are managed effectively[93]. - The board confirmed that the risk management and internal control systems are sufficient and effective in assessing and managing significant risks to achieve strategic objectives[94]. - The company has implemented new risk management strategies, which are projected to decrease operational risks by I%[70]. - The group closely monitors foreign exchange rate fluctuations and has not used any financial instruments for hedging as of December 31, 2021[104]. - The group has established policies to assess, record, and manage interest rate risks, considering hedging for significant interest rate fluctuations when necessary[104]. Future Outlook and Strategy - The company is actively exploring BIPV investment and operational industrialization in collaboration with Longyan Energy Technology, focusing on low-carbon development trends[20]. - The company plans to focus on high-end markets and enhance project management to maintain ideal profit levels while expanding its presence in the Greater Bay Area[42]. - The company aims to strengthen its design team in Hong Kong and North America while expanding its mainland China design team to meet project demands[43]. - The company is implementing a marketing strategy centered on "large markets, large owners, and large projects" to enhance its competitive advantage[35]. - The company is committed to a prudent bidding strategy to maximize internal synergies and project quality[35]. Accounting and Financial Reporting - The financial statements for the year ending December 31, 2021, were prepared under the Hong Kong Financial Reporting Standards and applicable laws[92]. - The company has adopted several revised Hong Kong Financial Reporting Standards, including HKFRS 9 and HKAS 39, which address issues related to the replacement of existing interest rate benchmarks[176]. - The group expects that the amendments will not have a significant impact on its financial statements[179]. - The company applies straight-line depreciation for other assets based on estimated useful lives, with buildings depreciated over the shorter of the lease term or 50 years[198]. - The company reviews and adjusts the residual value and useful life of assets at each reporting period end, with immediate impairment recognized if the carrying amount exceeds the estimated recoverable amount[198].

Company Business Structure [Company Business Structure](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%9E%B6%E6%9E%84) The Group's business structure primarily comprises construction engineering and operation management, centrally managed by China State Construction International Holdings Limited - The company's main businesses include construction engineering and operation management[5](index=5&type=chunk) Board of Directors and Committees [Board of Directors and Committees](index=4&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%80%E5%8F%8A%E5%A7%94%E5%91%98%E4%BC%9A) The Board consists of Chairman Zhang Haipeng, Executive Directors Wu Mingqing (Vice Chairman & CEO) and Wang Hai, Non-executive Director Huang Jiang, and three Independent Non-executive Directors, with audit, remuneration, and nomination committees ensuring robust governance - The Board Chairman is Zhang Haipeng (Non-executive Director), and the Vice Chairman and CEO is Wu Mingqing (Executive Director)[7](index=7&type=chunk) - Audit, Remuneration, and Nomination Committees are established, with independent non-executive directors participating and chairing each[7](index=7&type=chunk) Company Information [Company Information](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99) The company is registered in the Cayman Islands, with its principal office in Hong Kong, stock code 00830, and financial calendar details including interim results and dividend distribution - The company's stock code is **00830**, and its website is www.cscd.com.hk[8](index=8&type=chunk) 2021 Financial Calendar | Event | Date | | :--- | :--- | | Interim Results Announcement | August 16, 2021 | | Ex-dividend Date | September 7, 2021 | | Closure of Register of Members | September 9 to 10, 2021 | | Record Date | September 10, 2021 | | Interim Dividend Payment | November 12, 2021 | Chairman's Report [Performance](index=6&type=section&id=%E4%B8%9A%E7%BB%A9) For the six months ended June 30, 2021, the Group's main business revenue increased by 37.8% to HKD 2.703 billion, and profit attributable to shareholders increased by 45.8% to HKD 226 million H1 2021 Key Financial Performance | Metric | H1 2021 (HKD billion) | H1 2020 (HKD billion) | YoY Growth | | :--- | :--- | :--- | :--- | | Main Business Revenue | 2.703 | 1.961 | 37.8% | | Profit Attributable to Shareholders | 0.226 | 0.155 | 45.8% | | Earnings Per Share (HK cents) | 10.48 | 7.19 | 45.8% | [Dividend Distribution](index=6&type=section&id=%E6%B4%BE%E5%8F%91%E8%82%A1%E6%81%AF) The Board declared an interim dividend of HKD 3 cents per share for the period ended June 30, 2021, considering profitability and future development - The Board declared an interim dividend of **HKD 3 cents per share**[12](index=12&type=chunk) [Business Review](index=6&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) The Group achieved steady progress in construction engineering and operation management in H1 2021, maintaining a leading position in Hong Kong and Macau curtain wall business and expanding in mainland China [Market Conditions](index=6&type=section&id=%E5%B8%82%E5%9C%BA%E5%BD%A2%E5%8A%BF) Global economic recovery in H1 2021 faced challenges from recurring epidemics and rising raw material prices, while China's economy showed strong growth - Global economic recovery faced challenges from recurring epidemics and rising raw material prices[13](index=13&type=chunk) - China's economy showed strong growth, supporting domestic consumption recovery[13](index=13&type=chunk) - The Group implemented a "Hong Kong and Macau-based, Mainland-reliant, overseas-radiating, internal-external联动" strategy, preparing for cautious bidding[13](index=13&type=chunk) [Construction Engineering Business](index=7&type=section&id=%E5%BB%BA%E7%AD%91%E5%B7%A5%E7%A8%8B%E4%B8%9A%E5%8A%A1) Construction engineering, including curtain wall and general contracting, saw steady development, with the curtain wall business maintaining its leading position in Hong Kong and Macau and expanding in mainland China [Curtain Wall Engineering](index=7&type=section&id=%E5%B9%95%E5%A2%99%E5%B7%A5%E7%A8%8B) Curtain wall business maintained its leading position in Hong Kong and Macau with new major project wins, accelerated expansion in mainland China, and improved efficiency at the Zhuhai production base - Hong Kong and Macau curtain wall business maintained its leading position, securing new major projects including West Mid-Levels Seymour Road residential, Cheung Sha Wan Hing Wah Street residential, Cheung Kong Center II, and Kai Tak Sports Park[15](index=15&type=chunk) - China mainland curtain wall market accelerated expansion, winning quality projects such as Zhongzhou International Great Wall Logistics and China State Construction Industrial Base commercial projects[16](index=16&type=chunk) - Zhuhai production base's intelligent and automated upgrade significantly improved production capacity and technical levels[16](index=16&type=chunk) - North American curtain wall projects slowed due to epidemic and trade friction risks, focusing on existing projects and strengthening cost and contract management[16](index=16&type=chunk) [General Contracting Engineering](index=8&type=section&id=%E6%80%BB%E6%89%BF%E5%8C%85%E5%B7%A5%E7%A8%8B) General contracting business developed steadily, actively participating in bidding for small and medium-sized housing projects in Hong Kong and exploring internal collaboration opportunities - General contracting business developed steadily, actively participating in bidding for small and medium-sized housing projects in Hong Kong[18](index=18&type=chunk) - Stanley Wong Ma Kok Road No. 128 residential project and Henderson Ma Tau Wai project in Hong Kong progressed smoothly[18](index=18&type=chunk) [Operation Management Business](index=8&type=section&id=%E8%BF%90%E8%90%A5%E7%AE%A1%E7%90%86%E4%B8%9A%E5%8A%A1) Operation management business, including China Overseas Supervision and Huanggu Thermal Power, progressed steadily, with successful project wins and advancement in Canadian eldercare investment - China Overseas Supervision secured traditional supervision projects and transitioned to full-process consulting, winning the Harbin Institute of Technology (Shenzhen) renovation project[19](index=19&type=chunk) - Huanggu Thermal Power strengthened safe operations and energy saving, successfully completing the heating season's production in the first half of the year[19](index=19&type=chunk) - Canadian eldercare industry investment and operation business progressed, entering the interior decoration completion and marketing phase[19](index=19&type=chunk) [Human Resources Management](index=8&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B5%84%E6%BA%90%E7%AE%A1%E7%90%86) The Group prioritizes talent acquisition, retention, and development through comprehensive HR systems to enhance employee satisfaction and efficiency - The Group adheres to a people-oriented approach, improving recruitment, training, assessment, and incentive systems to enhance employee satisfaction and efficiency[20](index=20&type=chunk) - As of June 30, 2021, the Group's total number of employees reached **3,849**[21](index=21&type=chunk) [Social Responsibility](index=9&type=section&id=%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) The Group actively participates in public welfare activities, earning multiple social responsibility honors, including the "Caring Company" logo for eight consecutive years - The Group actively participated in public welfare activities, receiving multiple social responsibility honors, including the "Caring Company" logo from the Hong Kong Council of Social Service for eight consecutive years[22](index=22&type=chunk) [Future Outlook](index=9&type=section&id=%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B) The H2 2021 global economic outlook remains uncertain due to the pandemic and inflation, while Hong Kong and Macau economies are expected to recover, and the Greater Bay Area offers significant opportunities - The H2 global economic outlook is highly uncertain, with Hong Kong and Macau economies expected to recover, and the Greater Bay Area construction presenting opportunities[23](index=23&type=chunk) - Mainland China's economy has strong growth potential, while the North American construction market may slow down[23](index=23&type=chunk) [Operating and Development Strategies](index=9&type=section&id=%E7%BB%8F%E8%90%A5%E5%8F%8A%E5%8F%91%E5%B1%95%E7%AD%96%E7%95%A5) The Group focuses on curtain wall business as its core, deepening its presence in Hong Kong and Macau, steadily expanding in mainland China, and cautiously developing overseas markets - Curtain wall business is the core, adhering to a "large market, large client, large project" strategy, deeply cultivating Hong Kong and Macau, steadily expanding in mainland China, and cautiously developing overseas markets[24](index=24&type=chunk) - Strengthen R&D and innovation capabilities, improve multi-link coordination mechanisms for design, production, and installation, and enhance the comprehensive competitiveness of the curtain wall business[24](index=24&type=chunk) - Emphasize design team building, expand the mainland China design team, and strengthen support for overseas personnel[26](index=26&type=chunk) [Acknowledgements](index=10&type=section&id=%E8%87%B4%E8%B0%A2) The Chairman extends sincere gratitude to shareholders, clients, suppliers, and all employees for their strong support and hard work - The Chairman expressed gratitude to all stakeholders and employees[27](index=27&type=chunk) Management Discussion and Analysis [Overall Performance](index=11&type=section&id=%E6%95%B4%E4%BD%93%E8%A1%A8%E7%8E%B0) In H1 2021, the Group's total revenue increased by 37.8% to HKD 2.703 billion, with profit attributable to owners rising by 45.8% to HKD 226 million H1 2021 Overall Financial Performance | Metric | H1 2021 (HKD billion) | H1 2020 (HKD billion) | YoY Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 2.703 | 1.961 | 37.8% | | Profit Attributable to Owners of the Company | 0.226 | 0.155 | 45.8% | | Basic Earnings Per Share (HK cents) | 10.48 | 7.19 | 45.8% | [Segment Analysis](index=11&type=section&id=%E5%88%86%E9%83%A8%E5%88%86%E6%9E%90) All three core business segments—curtain wall, general contracting, and operation management—showed growth in revenue and operating profit in H1 2021 [Curtain Wall Business](index=11&type=section&id=%E5%B9%95%E5%A2%99%E4%B8%9A%E5%8A%A1) Curtain wall business revenue increased to HKD 1.852 billion, with operating profit rising to HKD 150 million, driven by accelerated project progress in Greater China Curtain Wall Business Performance | Metric | H1 2021 (HKD billion) | H1 2020 (HKD billion) | | :--- | :--- | :--- | | Revenue | 1.852 | 1.312 | | Operating Profit | 0.150 | 0.066 | [General Contracting Business](index=11&type=section&id=%E6%80%BB%E6%89%BF%E5%8C%85%E4%B8%9A%E5%8A%A1) General contracting business revenue increased to HKD 290 million, with operating profit rising to HKD 25 million, benefiting from new projects commenced in 2020 General Contracting Business Performance | Metric | H1 2021 (HKD billion) | H1 2020 (HKD billion) | | :--- | :--- | :--- | | Revenue | 0.290 | 0.174 | | Operating Profit | 0.025 | 0.006 | [Operation Management Business](index=11&type=section&id=%E8%BF%90%E8%90%A5%E7%AE%A1%E7%90%86%E4%B8%9A%E5%8A%A1) Operation management business revenue steadily increased to HKD 561 million, with operating profit rising to HKD 160 million, supported by contributions from Shenyang Huanggu Thermal Power Plant and Nanchang Bridge Operation Management Business Performance | Metric | H1 2021 (HKD billion) | H1 2020 (HKD billion) | | :--- | :--- | :--- | | Revenue | 0.561 | 0.475 | | Operating Profit | 0.160 | 0.142 | [Administrative, Selling and Other Operating Expenses](index=11&type=section&id=%E8%A1%8C%E6%94%BF%E3%80%81%E9%94%80%E5%94%AE%E5%8F%8A%E5%85%B6%E4%BB%96%E7%BB%8F%E8%90%A5%E8%B4%B9%E7%94%A8) Administrative, selling, and other operating expenses increased proportionally to HKD 92 million in H1 2021, reflecting the expansion of the three core businesses Administrative, Selling and Other Operating Expenses | Metric | H1 2021 (HKD billion) | H1 2020 (HKD billion) | | :--- | :--- | :--- | | Expenses | 0.092 | 0.084 | [Finance Costs](index=12&type=section&id=%E8%B4%A2%E5%8A%A1%E8%B4%B9%E7%94%A8) The Group's finance costs decreased to HKD 13 million in H1 2021, primarily due to lower borrowing interest rates Finance Costs | Metric | H1 2021 (HKD billion) | H1 2020 (HKD billion) | | :--- | :--- | :--- | | Finance Costs | 0.013 | 0.017 | [New Contracts and Projects in Progress](index=12&type=section&id=%E6%96%B0%E6%89%BF%E6%8E%A5%E5%B7%A5%E7%A8%8B%E5%8F%8A%E5%9C%A8%E5%BB%BA%E9%A1%B9%E7%9B%AE) As of June 30, 2021, the Group secured new contracts worth HKD 4.55 billion, achieving 56.9% of its annual target, with total outstanding contracts of HKD 21.068 billion - As of June 30, 2021, cumulative new contract value was **HKD 4.55 billion**, completing **56.9%** of the annual target[34](index=34&type=chunk) New Contract Value and Projects in Progress (As of June 30, 2021) | Segment Business | New Contract Value (HKD billion) | Total Contract Value (HKD billion) | Uncompleted Contract Value (HKD billion) | | :--- | :--- | :--- | :--- | | Curtain Wall Engineering | 3.474 | 14.463 | 7.824 | | General Contracting Engineering | 0.464 | 5.453 | 2.132 | | Operation Management | 0.612 | 1.152 | 0.619 | | **Total** | **4.550** | **21.068** | **10.575** | [Financial Management](index=12&type=section&id=%E8%B4%A2%E5%8A%A1%E7%AE%A1%E7%90%86) As of June 30, 2021, the Group had HKD 577 million in cash and bank balances, HKD 1.178 billion in total bank borrowings, and a net gearing ratio of 38.7% Key Financial Management Indicators (As of June 30, 2021) | Metric | June 30, 2021 (HKD billion) | December 31, 2020 (HKD billion) | | :--- | :--- | :--- | | Bank Balances and Cash | 0.577 | 0.858 | | Total Bank Borrowings | 1.178 | 1.062 | | Net Gearing Ratio | 38.7% | 15.4% | - The Group has approximately **HKD 2.543 billion** in unutilized bank facilities, ensuring sufficient financial resources[36](index=36&type=chunk) Bank Borrowings Maturity Profile (HKD thousand) | Maturity | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Repayable on demand or within one year | 566,546 | 650,710 | | Repayable in the second year | 400,551 | 400,524 | | Repayable in the third to fifth year | 210,977 | 10,932 | | **Total Bank Borrowings** | **1,178,074** | **1,062,166** | Currency Composition of Bank Deposits (%) | Currency | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | RMB | 36 | 69 | | HKD | 50 | 24 | | USD | 1 | 1 | | MOP | 1 | 1 | | Others | 12 | 5 | [Employees and Remuneration Policy](index=14&type=section&id=%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2021, the Group employed 3,849 staff, with an effective management incentive policy and competitive remuneration packages - As of June 30, 2021, the Group had **3,849** employees (December 31, 2020: 3,344 employees)[39](index=39&type=chunk) - The Group has an effective management incentive policy and competitive remuneration, including basic salary, allowances, benefits, and discretionary bonuses[39](index=39&type=chunk) [Foreign Exchange Risk](index=14&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The Group's foreign currency risk primarily arises from operations denominated in USD, RMB, CAD, GBP, and MOP, with management monitoring and considering hedging as needed - Foreign currency risk primarily arises from operating activities denominated in USD, RMB, CAD, GBP, and MOP[40](index=40&type=chunk) - The Group currently has no foreign currency hedging policy, but management will monitor and consider hedging major foreign currencies when necessary[40](index=40&type=chunk) Unaudited Condensed Consolidated Statement of Profit or Loss [Unaudited Condensed Consolidated Statement of Profit or Loss](index=15&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B9%8B%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2021, the Group reported revenue of HKD 2.703 billion, gross profit of HKD 381 million, and profit attributable to shareholders of HKD 226 million Condensed Consolidated Statement of Profit or Loss Summary (For the six months ended June 30) | Metric | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Revenue | 2,703,455 | 1,960,725 | | Cost of Sales | (2,322,367) | (1,693,878) | | Gross Profit | 381,088 | 266,847 | | Other income and gains, net | 9,122 | 15,591 | | Administrative, selling and other operating expenses | (92,300) | (83,917) | | Finance costs | (12,872) | (17,487) | | Profit before tax | 285,038 | 181,034 | | Income tax expense | (63,450) | (28,774) | | **Profit for the period** | **221,588** | **152,260** | | Profit attributable to owners of the Company | 225,803 | 154,930 | | Non-controlling interests | (4,215) | (2,670) | | **Basic and diluted earnings per share** | **HKD 10.48 cents** | **HKD 7.19 cents** | Unaudited Condensed Consolidated Statement of Comprehensive Income [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=16&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B9%8B%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2021, profit for the period was HKD 222 million, with total comprehensive income of HKD 292 million, primarily due to exchange differences on translating foreign operations Condensed Consolidated Statement of Comprehensive Income Summary (For the six months ended June 30) | Metric | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Profit for the period | 221,588 | 152,260 | | Exchange differences on translating foreign operations | 70,764 | (42,470) | | **Total comprehensive income for the period, net of tax** | **292,352** | **109,790** | | Total comprehensive income attributable to owners of the Company | 295,538 | 112,222 | | Non-controlling interests | (3,186) | (2,432) | Unaudited Condensed Consolidated Statement of Financial Position [Unaudited Condensed Consolidated Statement of Financial Position](index=17&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B9%8B%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2021, total assets were HKD 7.742 billion, total liabilities HKD 6.190 billion, and equity attributable to owners of the Company HKD 1.634 billion Condensed Consolidated Statement of Financial Position Summary (As of June 30) | Metric | June 30, 2021 (HKD thousand) | December 31, 2020 (HKD thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 2,199,859 | 2,107,754 | | Interests in infrastructure projects | 98,711 | 132,892 | | Goodwill | 129,649 | 129,649 | | **Current assets** | | | | Contract assets | 2,070,387 | 1,451,792 | | Trade and other receivables | 1,268,217 | 1,321,016 | | Cash and cash equivalents | 577,271 | 858,154 | | **Total assets** | **7,742,134** | **7,388,898** | | **Current liabilities** | | | | Bank borrowings | 566,546 | 650,710 | | Contract liabilities | 539,315 | 778,041 | | Trade and other payables and accrued expenses | 1,558,780 | 1,464,870 | | **Non-current liabilities** | | | | Contract liabilities | 750,602 | 755,970 | | Bank borrowings | 611,528 | 411,456 | | **Equity attributable to owners of the Company** | **1,634,209** | **1,403,019** | Unaudited Condensed Consolidated Statement of Changes in Equity [Unaudited Condensed Consolidated Statement of Changes in Equity](index=19&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B9%8B%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2021, equity attributable to owners increased from HKD 1.403 billion to HKD 1.634 billion, driven by profit for the period and foreign currency translation reserves Condensed Consolidated Statement of Changes in Equity Summary (For the six months ended June 30) | Metric | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | At January 1 (Attributable to owners of the Company) | 1,403,019 | 1,125,325 | | Profit for the period | 225,803 | 154,930 | | Exchange differences on translating foreign operations | 69,735 | (42,708) | | 2020 Final dividend | (64,666) | — | | **At June 30 (Attributable to owners of the Company)** | **1,634,209** | **1,237,842** | Unaudited Condensed Consolidated Statement of Cash Flows [Unaudited Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B9%8B%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2021, net cash used in operating activities was HKD 356 million, with net cash from financing activities of HKD 167 million Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Metric | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (355,904) | (374,243) | | Net cash used in investing activities | (133,098) | (70,927) | | Net cash from financing activities | 167,041 | 75,267 | | Decrease in cash and cash equivalents | (321,961) | (369,903) | | Cash and cash equivalents at beginning of period | 858,154 | 826,576 | | Effect of foreign exchange rate changes | 41,078 | (19,863) | | **Cash and cash equivalents at end of period** | **577,271** | **436,810** | Notes to the Unaudited Condensed Consolidated Financial Statements [1 Basis of Preparation](index=21&type=section&id=1%20%E7%BC%96%E8%A3%BD%E5%9F%BA%E5%87%86) The condensed consolidated financial statements are prepared in accordance with HKFRS 34 and Appendix 16 of the HKEX Listing Rules, presented at historical cost in HKD - Financial statements are prepared in accordance with Appendix 16 of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting"[51](index=51&type=chunk) - Statements are presented on a historical cost basis and in HKD[52](index=52&type=chunk) [2 Changes in Accounting Policies and Disclosures](index=21&type=section&id=2%20%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%92%8C%E6%8A%AB%E9%9C%B2%E4%B9%8B%E6%94%B9%E5%8F%98) The Group adopted amendments related to interest rate benchmark reform and COVID-19-related rent concessions, which had no significant impact on its performance or financial position - The Group adopted amendments related to interest rate benchmark reform (HKFRS 9) and COVID-19-related rent concessions (HKFRS 16) for the first time this period[53](index=53&type=chunk)[54](index=54&type=chunk) - These amendments had no significant impact on the Group's performance or financial position[54](index=54&type=chunk) [3 Estimates](index=22&type=section&id=3%20%E4%BC%B0%E8%AE%A1) Financial statement preparation involves management judgments and assumptions, with significant sources of estimation uncertainty remaining consistent with the prior year - Financial statement preparation involves management judgments, estimates, and assumptions, and actual results may differ from estimates[56](index=56&type=chunk) - Significant sources of estimation uncertainty for this period are consistent with the prior year's financial statements[56](index=56&type=chunk) [4 Revenue and Segment Information](index=22&type=section&id=4%20%E8%90%A5%E4%B8%9A%E9%A2%9D%E5%8F%8A%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's revenue primarily derives from curtain wall, general contracting, and operation management businesses, with Greater China being the main source of income - The Group primarily engages in curtain wall engineering, general contracting, and operation management, with revenue representing income from engineering and management contracts[57](index=57&type=chunk) Segment Results Summary (For the six months ended June 30) | Segment | 2021 Revenue (HKD thousand) | 2020 Revenue (HKD thousand) | 2021 Gross Profit (HKD thousand) | 2020 Gross Profit (HKD thousand) | 2021 Segment Results (HKD thousand) | 2020 Segment Results (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Curtain Wall Engineering | 1,851,965 | 1,312,453 | 180,182 | 103,836 | 149,891 | 65,805 | | General Contracting Engineering | 290,281 | 173,602 | 25,420 | 7,344 | 24,876 | 5,965 | | Operation Management | 561,209 | 474,670 | 175,486 | 155,667 | 160,387 | 142,091 | | **Total** | **2,703,455** | **1,960,725** | **381,088** | **266,847** | **335,154** | **213,861** | - Curtain wall engineering revenue primarily originated from Greater China, Asia, and other regions (**HKD 1.602 billion**) and North America (**HKD 250 million**)[60](index=60&type=chunk) [5 Other Income and Gains, Net](index=24&type=section&id=5%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%EF%BC%8C%E5%87%80%E9%A2%9D) In H1 2021, other income and gains, net, totaled HKD 9.122 million, mainly from bank interest and sundry income, a decrease from the prior year due to lower exchange gains Other Income and Gains, Net (For the six months ended June 30) | Item | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Bank interest income | 2,918 | 1,447 | | Exchange gains, net | — | 6,526 | | Sundry income | 6,204 | 7,618 | | **Total** | **9,122** | **15,591** | [6 Finance Costs](index=24&type=section&id=6%20%E8%B4%A2%E5%8A%A1%E8%B4%B9%E7%94%A8) Net finance costs for H1 2021 decreased to HKD 12.872 million, primarily due to reduced interest on bank borrowings and overdrafts Finance Costs (For the six months ended June 30) | Item | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Interest on bank borrowings and overdrafts | 12,464 | 17,271 | | Interest on lease liabilities | 508 | 695 | | Interest on borrowings from intermediate holding company | 2,112 | 352 | | **Total** | **15,084** | **18,318** | | Less: Capitalized in property, plant and equipment | (2,212) | (831) | | **Net finance costs** | **12,872** | **17,487** | [7 Profit Before Tax](index=25&type=section&id=7%20%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax for H1 2021 was HKD 285 million, after deducting total depreciation expenses of HKD 7.406 million Profit Before Tax Deductions (For the six months ended June 30) | Item | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment (excluding right-of-use assets) | 3,678 | 3,072 | | Depreciation of right-of-use assets | 3,728 | 6,458 | | **Total depreciation expenses** | **7,406** | **9,530** | [8 Income Tax Expense](index=26&type=section&id=8%20%E6%89%80%E5%BE%97%E7%A8%8E%E8%B4%B9%E7%94%A8) Net income tax expense for H1 2021 was HKD 63.45 million, comprising Hong Kong, mainland China, and overseas tax provisions, and deferred tax Income Tax Expense (For the six months ended June 30) | Item | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Current tax — Hong Kong | 11,724 | 5,586 | | Current tax — Mainland China and overseas | 20,466 | 30,333 | | Deferred tax, net | 31,260 | (7,145) | | **Net income tax expense for the period** | **63,450** | **28,774** | - Hong Kong profits tax is calculated at **16.5%**, while other regions are based on local laws, interpretations, and practices[68](index=68&type=chunk) [9 Dividends](index=27&type=section&id=9%20%E8%82%A1%E6%81%AF) The company distributed a 2020 final dividend of HKD 3 cents per share in July 2021 and declared an interim dividend of HKD 3 cents per share for November 2021 - A 2020 final dividend of **HKD 3 cents per share**, totaling approximately **HKD 64.666 million**, was distributed in July 2021[70](index=70&type=chunk) - The Board declared an interim dividend of **HKD 3 cents per share**, totaling approximately **HKD 64.666 million**, to be paid on November 12, 2021[70](index=70&type=chunk) [10 Earnings Per Share](index=27&type=section&id=10%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2021, basic and diluted earnings per share were HKD 10.48 cents, based on profit attributable to shareholders of HKD 226 million and 2,155,545 thousand weighted average ordinary shares Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2021 (HKD thousand/thousand shares) | 2020 (HKD thousand/thousand shares) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 225,803 | 154,930 | | Weighted average number of ordinary shares | 2,155,545 | 2,155,545 | | **Basic and diluted earnings per share** | **HKD 10.48 cents** | **HKD 7.19 cents** | - There were no potential dilutive ordinary shares at the end of the period[72](index=72&type=chunk) [11 Property, Plant and Equipment](index=28&type=section&id=11%20%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) During the period, the Group acquired property, plant, and equipment totaling approximately HKD 117 million Property, Plant and Equipment Acquisitions (For the six months ended June 30) | Item | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Acquisition amount | 117,056 | 72,541 | [12 Interests in Infrastructure Projects](index=28&type=section&id=12%20%E5%9F%BA%E5%BB%BA%E9%A1%B9%E7%9B%AE%E6%8A%95%E8%B5%84%E6%9D%83%E7%9B%8A) As of June 30, 2021, total interests in infrastructure projects amounted to HKD 163 million, with an annual yield of 10.2% to 10.7% Interests in Infrastructure Projects (HKD thousand) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total interests in infrastructure projects | 163,451 | 193,972 | | Less: Current portion due within one year | (64,740) | (61,080) | | **Non-current portion due after one year** | **98,711** | **132,892** | - Interests in infrastructure projects yield an annual return of **10.2% to 10.7%**[76](index=76&type=chunk) [13 Goodwill](index=29&type=section&id=13%20%E5%95%86%E8%AA%89) As of June 30, 2021, the net carrying amount of goodwill was HKD 130 million, primarily allocated to Gamma Group and its North American subsidiaries Goodwill Carrying Amount (HKD thousand) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cost | 159,707 | 159,707 | | Accumulated impairment | 30,058 | 30,058 | | **Net carrying amount** | **129,649** | **129,649** | - Goodwill is primarily allocated to Gamma Group and its North American segment subsidiaries, with recoverable amounts calculated based on value in use[79](index=79&type=chunk) [14 Trade and Other Receivables](index=30&type=section&id=14%20%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE) As of June 30, 2021, total trade and other receivables were HKD 1.268 billion, with an average credit period of no more than 90 days for customers Ageing Analysis of Trade and Other Receivables (HKD thousand) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Trade receivables** | | | | 0–30 days | 230,985 | 500,862 | | 31–60 days | 40,179 | 28,305 | | 61–90 days | 10,691 | 30,393 | | Over 90 days | 270,570 | 135,070 | | **Subtotal** | **552,425** | **694,630** | | Retention receivables | 598,571 | 570,131 | | Other receivables | 117,221 | 56,255 | | **Total** | **1,268,217** | **1,321,016** | - The Group generally grants customers an average credit period of no more than **90 days**, with retention receivables repaid approximately one year after the project warranty period expires[81](index=81&type=chunk) [15 Bank Borrowings](index=31&type=section&id=15%20%E9%93%B6%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2021, total bank borrowings were HKD 1.178 billion, with an average annual interest rate of 2.51% Total Bank Borrowings (HKD thousand) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Bank loans, secured | 12,056 | 11,958 | | Bank loans, unsecured | 1,166,018 | 1,050,208 | | **Total** | **1,178,074** | **1,062,166** | Bank Borrowings Repayment Period (HKD thousand) | Repayment Period | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Repayable on demand or within one year | 566,546 | 650,710 | | Repayable in the second year | 400,551 | 400,524 | | Repayable in the third to fifth year | 210,977 | 10,932 | | **Total** | **1,178,074** | **1,062,166** | - As of June 30, 2021, the average annual interest rate for bank loans was **2.51%** (December 31, 2020: 2.62%)[84](index=84&type=chunk) [16 Trade and Other Payables and Accrued Expenses](index=32&type=section&id=16%20%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E3%80%81%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E5%8F%8A%E5%BA%94%E8%AE%A1%E8%B4%B9%E7%94%A8) As of June 30, 2021, total trade and other payables and accrued expenses were HKD 1.559 billion, including trade payables, retention payables, and other accrued expenses Ageing Analysis of Trade and Other Payables and Accrued Expenses (HKD thousand) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Trade payables** | | | | 0–30 days | 879,789 | 827,777 | | 31–60 days | 42,978 | 26,273 | | Over 60 days | 174,392 | 139,579 | | **Subtotal** | **1,097,159** | **993,629** | | Retention payables | 320,133 | 276,518 | | Other payables and accrued expenses | 141,488 | 194,723 | | **Total** | **1,558,780** | **1,464,870** | - As of June 30, 2021, retention payables expected to be due after twelve months amounted to approximately **HKD 175 million**[85](index=85&type=chunk) [17 Share Capital](index=33&type=section&id=17%20%E8%82%A1%E6%9C%AC) As of June 30, 2021, the company's issued and fully paid share capital consisted of 2,155,545 thousand ordinary shares at HKD 0.01 par value each Share Capital (As of June 30, 2021) | Item | Number of Shares (thousand shares) | Share Capital Amount (HKD thousand) | | :--- | :--- | :--- | | Ordinary shares of HKD 0.01 par value each | 2,155,545 | 21,555 | [18 Commitments](index=33&type=section&id=18%20%E6%89%BF%E6%8B%85) As of June 30, 2021, the Group's contracted but unrecognised commitments included capital expenditure for property, plant, and equipment and investments in joint ventures Contracted but Unrecognized Commitments (HKD thousand) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Capital expenditure for property, plant and equipment in progress | 65,441 | 163,526 | | Investments in joint ventures | 3,611 | 8,886 | [19 Related Party Transactions](index=33&type=section&id=19%20%E5%85%B3%E8%BF%9E%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) In H1 2021, the Group engaged in various related party transactions, including receiving engineering and service fees from and paying for insurance, materials, and machinery rentals to group companies Summary of Related Party Transactions (For the six months ended June 30) | Transaction Type | 2021 (HKD thousand) | 2020 (HKD thousand) | | :--- | :--- | :--- | | Engineering fees received from group companies | 766,154 | 545,397 | | Service income received from group companies | 52,825 | 31,925 | | Insurance service fees paid to group companies | 10,447 | 7,198 | | Material costs paid to group companies | 1,853 | 3,164 | | Machinery rental fees paid to group companies | 3,299 | 1,597 | Other Information [Interim Dividend](index=34&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board declared an interim dividend of HKD 3 cents per share, payable on November 12, 2021, to shareholders registered on September 10, 2021 - The Board declared an interim dividend of **HKD 3 cents per share**, payable on November 12, 2021[87](index=87&type=chunk) [Closure of Register of Members](index=34&type=section&id=%E6%9A%82%E5%81%9C%E5%8A%9E%E7%90%86%E8%82%A1%E4%BB%BD%E8%BF%87%E6%88%B7%E7%99%BB%E8%AE%B0) To determine interim dividend entitlements, the company will suspend share transfer registration from September 9 to September 10, 2021 - To determine interim dividend entitlements, the company will suspend share transfer registration from **September 9 to September 10, 2021**[88](index=88&type=chunk) [Share Capital](index=34&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2021, the company's total issued share capital comprised 2,155,545,000 ordinary shares with a par value of HKD 0.01 each - As of June 30, 2021, the company's total issued share capital was **2,155,545,000 ordinary shares**, each with a par value of **HKD 0.01**[89](index=89&type=chunk) [Directors' Interests in Shares, Underlying Shares and Debentures](index=34&type=section&id=%E8%91%A3%E4%BA%8B%E4%BA%8E%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E5%85%B3%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%80%BA%E5%88%B8%E7%9A%84%E6%9D%83%E7%9B%8A%E5%8F%8A%E6%B7%A1%E4%BB%93) As of June 30, 2021, Directors Zhang Haipeng, Wu Mingqing, and Huang Jiang held long positions in the company's shares, with some also holding interests in China State Construction Engineering Corporation Limited A shares Directors' Long Positions in the Company's Shares (As of June 30, 2021) | Director's Name | Capacity | Nature of Interest | Number of Ordinary Shares | Percentage of Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Zhang Haipeng | Beneficial owner | Personal interest | 3,750,000 | 0.174 | | Wu Mingqing | Beneficial owner | Personal interest | 5,000,000 | 0.232 | | Huang Jiang | Beneficial owner | Personal interest | 3,000,000 | 0.139 | - Mr. Zhang Haipeng, Mr. Wang Hai, and Mr. Huang Jiang also held personal interests in A shares of China State Construction Engineering Corporation Limited[91](index=91&type=chunk) [Substantial Shareholders' Interests in Shares and Underlying Shares of the Company](index=36&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E4%BA%8E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E5%85%B3%E8%82%A1%E4%BB%BD%E7%9A%84%E6%9D%83%E7%9B%8A%E5%8F%8A%E6%B7%A1%E4%BB%93) As of June 30, 2021, Capable Holdings Limited held 74.06% of the company's shares, with China State Construction International Holdings Limited and its parent companies deemed to hold the same interest Substantial Shareholders' Long Positions in the Company's Shares (As of June 30, 2021) | Shareholder Name | Capacity | Number of Ordinary Shares | Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Capable Holdings Limited | Beneficial owner | 1,596,403,279 | 74.06 | | China State Construction International Holdings Limited | Interest in controlled corporation | 1,596,403,279 | 74.06 | | China Overseas Holdings Limited | Interest in controlled corporation | 1,596,403,279 | 74.06 | | China State Construction Engineering Corporation Limited | Interest in controlled corporation | 1,596,403,279 | 74.06 | | China State Construction Group Co., Ltd. | Interest in controlled corporation | 1,596,403,279 | 74.06 | - Capable Holdings Limited is a wholly-owned subsidiary of China State Construction International, and due to control relationships, China State Construction International, China Overseas, China State Construction Engineering, and China State Construction Group are deemed to hold the same share interest[95](index=95&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) During the six months ended June 30, 2021, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[97](index=97&type=chunk) [Corporate Governance](index=37&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company fully complied with all code provisions of the Corporate Governance Code set out in Appendix 14 of the HKEX Listing Rules throughout the reporting period - The company complied with all code provisions of the Corporate Governance Code in Appendix 14 of the HKEX Listing Rules throughout the reporting period[98](index=98&type=chunk) [Directors' Securities Transactions](index=37&type=section&id=%E8%91%A3%E4%BA%8B%E7%9A%84%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the reporting period - The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance with the code[99](index=99&type=chunk) [Review of Accounts](index=37&type=section&id=%E8%B4%A6%E7%9B%AE%E5%AE%A1%E9%98%85) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2021 - The Audit Committee, comprising three independent non-executive directors, reviewed the financial statements in this interim report[100](index=100&type=chunk)