Financial Performance - Revenue for the six months ended June 30, 2021, amounted to approximately HK$135.7 million, representing an increase of approximately 76.9% compared to HK$76.7 million in the corresponding period in 2020[19] - Loss attributable to owners of the Company for the six months ended June 30, 2021, was approximately HK$42.0 million, a decrease of approximately 19.2% from HK$52.0 million in the corresponding period in 2020[19] - Basic loss per share for the six months ended June 30, 2021, was HK5.53 cents, compared to earnings of HK8.49 cents in the corresponding period in 2020[19] - The gross profit for the period was HK$2,605,000, compared to a gross loss of HK$33,733,000 in the previous year, indicating a significant turnaround[113] - The total comprehensive loss for the period was HK$42,355,000, compared to HK$52,946,000 in the same period of 2020, showing a decrease of about 20%[113] - The loss before income tax was HK$43,847,000, an improvement from a loss of HK$52,244,000 in the prior year, reflecting a reduction of approximately 16%[113] Revenue Breakdown - In the first half of 2021, foundation works and ancillary services projects contributed approximately HK$96.3 million in revenue, compared to approximately HK$54.5 million in the first half of 2020[36] - The renewable energy business contributed approximately HK$11.6 million in revenue in the first half of 2021, down from approximately HK$22.2 million in the first half of 2020[36] - Revenue from construction contracts increased significantly to HK$135,446,000, up from HK$76,397,000, marking an increase of approximately 77.3%[138] - Revenue from external customers in Hong Kong was HK$104,716,000, compared to HK$54,533,000 in the same period of 2020, indicating a growth of 92%[164] - Revenue from external customers in the PRC was HK$31,031,000, up from HK$22,175,000 in the previous year, marking an increase of 40%[164] Strategic Focus and Business Development - The Company is focused on expanding its renewable energy and e-commerce businesses as part of its growth strategy[21] - The Company aims to enhance its market position through strategic partnerships and potential acquisitions in the construction and renewable energy sectors[21] - The Group plans to strengthen its e-commerce business expansion and establish self-branded merchandise over the next three years[73] - The Group will continue to pursue opportunities in the e-commerce industry while developing its existing construction and renewable energy businesses[81][83] Operational Challenges - The Group's construction project in Saipan faced delays due to inclement weather, visa policy changes, and design modifications, with the completion date extended to the 2020 financial year[22] - The Group's construction-related supply chains have been disrupted due to COVID-19, affecting project timelines and costs[25] - The project is still under suspension, with expectations to resume in January 2022 based on current information[30] Financial Position and Ratios - As of June 30, 2021, the Group had cash and bank balances of approximately HK$7.3 million, down from approximately HK$33.7 million as of 31 December 2020[54] - The current ratio decreased from 2.2 as of 31 December 2020 to 2.0 as of 30 June 2021, while the gearing ratio increased from 29.0% to 32.4%[53] - The net debt to equity ratio rose from 17.5% as of 31 December 2020 to 29.3% as of 30 June 2021, indicating increased leverage[53] - Total equity attributable to owners of the company decreased to HK$254,950,000 from HK$295,584,000, a decline of approximately 13.8%[117] Employee and Operational Metrics - The Group had 127 employees as of June 30, 2021, an increase from 99 employees as of December 31, 2020[58] - Staff costs increased to HK$29,834,000 in the first half of 2021, up from HK$27,634,000 in the prior year, with salaries and wages accounting for HK$29,085,000[175] Corporate Governance and Compliance - The company complied with all code provisions set out in the Code on Corporate Governance Practices except for a temporary non-compliance regarding the composition of the Board[99] - The non-compliance was rectified upon the resignation of Mr. Lee Kai Lun as executive Director on July 6, 2021[99] - The company has adopted the Model Code for Securities Transactions by Directors as its own code of conduct[99] Future Outlook - The management is optimistic about future growth prospects, driven by increased demand in the construction and renewable energy markets[21] - The renewable energy business is expected to benefit from China's commitment to peak carbon emissions by 2030 and achieve carbon neutrality by 2060[72] - The Saipan project is scheduled to resume in January 2022, which is expected to contribute positively to the Group's results in the coming year[70]

Financial Performance - For the year ended December 31, 2020, the Group's revenue amounted to approximately HK$250.9 million, an increase from HK$246.9 million in 2019, primarily due to an increase in renewable energy business revenue of approximately HK$85.6 million[60]. - The Group recorded a gross loss of approximately HK$30.4 million for the year ended December 31, 2020, down from a gross profit of approximately HK$24.0 million in 2019, resulting in a gross profit margin decrease from approximately 9.7% to a gross loss margin of about 12.1%[60]. - The Group recorded a loss attributable to owners of the Company of approximately HK$55.5 million for the year, an improvement from a loss of approximately HK$108.1 million in 2019[63]. - Selling and administrative expenses increased by HK$13.0 million to approximately HK$58.6 million, compared to approximately HK$45.6 million in the previous year[62]. - The Group's financial positions were affected by a reduction in revenue and government grants related to COVID-19, as disclosed in the relevant notes[55]. Impact of COVID-19 - The construction activities were halted from January 2020 to April 2020 due to mandatory government quarantine measures, which disrupted supply chains and delayed project progress[25]. - The COVID-19 pandemic led to a halt in construction activities from January 2020 to April 2020, negatively impacting the Group's financial performance and operations[55]. - The uncertain economic outlook led to a significant reduction in the number of projects available for tender and a decline in profit margins for construction projects[26]. - The Group faced a significant decline in the number of projects available for tender due to the COVID-19 pandemic and Sino-US trade disputes, resulting in only seven new contracts awarded for foundation works[86]. - The management acknowledges the profound impact of the COVID-19 pandemic and anticipates a gradual recovery in global economic activities, while adapting to the "New Normal" of co-existing with the virus[41][43]. Business Diversification and Development - The Group plans to adopt energy-saving measures and building information models to enhance competitiveness in tendering for construction contracts[27]. - The management is developing energy storage projects based on the original clean energy business in response to opportunities from the PRC's macroeconomic policies[32]. - On June 29, 2020, the Company entered into cooperation agreements with SPIC Beijing and CATL to develop Energy Storage Projects, diversifying revenue risks and enhancing the renewable energy business[33][34]. - The Company is expanding its renewable energy business by developing domestic grid energy storage projects, leveraging opportunities from China's macroeconomic policies and government support[34]. - To broaden its revenue base, the Company established CT Shunlian in partnership with Zhejiang Shunlian to provide procurement and consultation services to e-commerce companies, tapping into the potential of the e-commerce industry in China[35][36]. Contracts and Projects - As of December 31, 2020, the Group had a total of 15 contracts on hand, an increase from 12 contracts in 2019, with a total contract sum yet to be recognized amounting to approximately HK$440.1 million, down from HK$469.6 million in 2019[55]. - The foundation works and ancillary services projects contributed revenue of approximately HK$114.8 million in 2020, a decrease from HK$143.5 million in 2019, with 19 projects completed compared to 18 in the previous year[55]. - General building works generated revenue of approximately HK$9.6 million in 2020, significantly down from HK$63.7 million in 2019, with only 4 projects completed compared to 8 in the previous year[55]. - The completion date for a major construction project was extended to 18 months after the recommencement of construction, dependent on the easing of quarantine measures and travel restrictions[53]. - The Group will continue to monitor the progress of ongoing projects closely, particularly in light of the ongoing impacts of the COVID-19 pandemic[53]. Revenue Sources and Future Outlook - The Group's renewable energy business segment is expected to play a significant role in future growth, although specific financial contributions were not detailed in the provided content[57]. - The renewable energy business contributed approximately HK$122.4 million in revenue for the year ended December 31, 2020, compared to HK$36.7 million in 2019[58]. - The e-commerce business generated approximately HK$3.0 million in revenue for the year ended December 31, 2020, compared to HK$Nil in 2019[58]. - The decrease in revenue from building construction business was approximately HK$82.9 million, which was offset by the increase in renewable energy business revenue[60]. - The board is confident in the company's outlook, supported by the development plans for Energy Storage Projects and the e-commerce business[92]. Shareholder and Governance Information - The Group's five largest customers accounted for approximately 84.1% of total revenue in 2020, up from 63.7% in 2019[147]. - The largest customer contributed approximately 34.5% of total revenue in 2020, compared to 21.1% in 2019[147]. - The Group's five largest subcontractors represented about 85.8% of total subcontracting fees in 2020, an increase from 60.9% in 2019[148]. - The largest subcontractor accounted for approximately 45.3% of total subcontracting fees in 2020, compared to 20.3% in 2019[148]. - The five largest suppliers made up approximately 76.9% of total material costs in 2020, up from 57.3% in 2019[149]. Management and Employee Information - The Group had 99 employees as of 31 December 2020, offering a competitive remuneration package based on market rates and performance[81]. - Ms. Ng has over 20 years of experience in senior positions within the finance and real estate sectors, including roles as CFO and executive director in listed companies[114]. - Mr. Wong has extensive legal experience, serving as a partner and head of the commercial department at a law firm, and has held various public service appointments[120]. - Dr. Tang has over 20 years of experience in investment and corporate management, holding senior positions in multiple companies and currently serving as chairman of Triwise Capital Management[124]. - Mr. Ng has over 20 years of experience in management and finance, previously working as a deputy general manager in a subsidiary of New World Development[128].

Financial Performance - Revenue for the six months ended June 30, 2020, amounted to approximately HK$76.7 million, representing a decrease of approximately 26.6% compared to HK$104.5 million in the corresponding period in 2019[17]. - Loss attributable to owners of the Company for the six months ended June 30, 2020, amounted to approximately HK$52.0 million, a decrease of approximately 604.9% compared to a profit of approximately HK$10.3 million in 2019[17]. - Basic loss per share amounted to HK8.49 cents for the six months ended June 30, 2020, compared to earnings of HK1.69 cents in the corresponding period in 2019[17]. - The Group's unaudited consolidated revenue for the six months ended June 30, 2020, was approximately HK$76.7 million, a decrease from approximately HK$104.5 million in the corresponding period of 2019[29]. - The gross profit margin significantly decreased from approximately 30.6% in the first half of 2019 to a gross loss margin of approximately 44.0% in the first half of 2020[29]. - The company reported a loss attributable to owners of approximately HK$52.0 million for the six months ended June 30, 2020, a decrease of about 604.9% compared to a profit of approximately HK$10.3 million in the same period of 2019[34]. - Total comprehensive expense for the period was HK$52,946,000, a significant decline from a total comprehensive income of HK$10,302,000 in the prior year[96]. - The company reported a loss of HK$51,983,000 for the six months ended June 30, 2020, compared to a profit of HK$10,341,000 in the corresponding period of 2019[177]. Impact of COVID-19 - The Group's construction activities were halted from January 2020 to April 2020 due to mandatory government quarantine measures related to the COVID-19 pandemic[21]. - The Group's financial positions and performance were affected by the pandemic, including a reduction in revenue and government grants related to COVID-19 subsidies[21]. - The ongoing impacts of the COVID-19 pandemic continue to affect the operations of the Group[21]. - The Group is closely monitoring the progress of its construction projects amid ongoing challenges[20]. - The COVID-19 pandemic disrupted construction-related supply chains, affecting the progress of the Saipan project originally scheduled to resume in mid-2020[57]. - A majority of construction activities resumed in April 2020, with one new contract awarded in July 2020, indicating a gradual recovery in the construction business[62]. - The Group plans to continue assessing the impact of the COVID-19 pandemic on its operations and financial performance[63]. Construction and Project Updates - The completion of a significant construction project has been delayed, with the new expected completion date being 18 months after the resumption of construction work[20]. - As of June 30, 2020, the Group had a total of 12 contracts on hand, with an unrecognized contract sum of approximately HK$467.9 million, down from approximately HK$506.3 million as of December 31, 2019[26]. - In the first half of 2020, the renewable energy business contributed approximately HK$22.2 million in revenue, an increase from approximately HK$19.2 million in the first half of 2019[29]. - In the first half of 2020, there were 9 foundation works and ancillary services projects contributing approximately HK$54.5 million in revenue, compared to 16 projects generating approximately HK$47.1 million in the first half of 2019[26]. - The Group recorded no revenue from general building works projects in the first half of 2020, down from approximately HK$35.3 million in the first half of 2019 due to project suspensions[26]. - Sales of piles contributed nil revenue in the first half of 2020, a decrease from approximately HK$2.9 million in the first half of 2019, attributed to decreased demand[26]. Financial Position and Ratios - The current ratio decreased from 1.6 as of December 31, 2019, to 1.5 as of June 30, 2020, due to a decrease in trade receivables[42]. - The gearing ratio increased from 51.5% as of December 31, 2019, to 80.5% as of June 30, 2020, mainly due to a decrease in equity[42]. - The net debt to equity ratio rose from 33.8% as of December 31, 2019, to 58.0% as of June 30, 2020[42]. - As of June 30, 2020, the Group had cash and bank balances of approximately HK$0.6 million, down from approximately HK$1.3 million as of December 31, 2019[43]. - The capital structure consisted of equity of approximately HK$181 million and debts of approximately HK$146 million as of June 30, 2020, compared to HK$234 million and HK$121 million, respectively, as of December 31, 2019[44]. - The interest coverage ratio was negative 19.5% as of June 30, 2020, compared to negative 21.8% as of December 31, 2019[42]. - The total consolidated assets decreased to HK$445,886,000 from HK$517,742,000, a decline of 13.9%[155]. - Consolidated liabilities were HK$264,603,000, down from HK$283,513,000, indicating a reduction of 6.7%[155]. Corporate Governance and Shareholding - The Company did not recommend the payment of an interim dividend for the six months ended 30 June 2020, consistent with the previous year where no dividend was paid[79]. - The Company complied with all code provisions of the Corporate Governance Code except for the absence of the chairlady at the annual general meeting[83][84]. - The Company entered into a subscription and placing agreement on 22 January 2020, resulting in the subscription of 77,000,000 new shares and the placing of 73,000,000 new shares at HK$0.80 per share[93]. - The total net proceeds from the Subscription and Placing amounted to approximately HK$69.76 million, with HK$51.92 million allocated for renewable energy construction projects and HK$17.84 million for general working capital[93]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[85][90]. - The Directors are not aware of any other persons with interests or short positions in shares that require disclosure under the SFO provisions[76]. Employee and Operational Updates - The group employed 128 employees as of June 30, 2020, a slight decrease from 130 employees as of December 31, 2019[46]. - General and administrative expenses decreased by approximately HK$1.1 million to approximately HK$17.5 million compared to approximately HK$18.6 million in the last corresponding period[31]. - Staff costs for the period were HK$26,979,000, a decrease from HK$28,454,000, representing a reduction of 5.2%[170].

Financial Performance - Revenue from construction services dropped sharply compared to the previous year, attributed to a reduced number of projects and lower profit margins[26]. - For the year ended December 31, 2019, the Group's revenue amounted to approximately HK$246.9 million, a decrease from HK$610.8 million in 2018[68]. - The gross profit decreased from approximately HK$79.6 million in 2018 to approximately HK$24.0 million in 2019, with a gross profit margin decline from 13.0% to 9.7%[70]. - The Group recorded a loss of approximately HK$108.1 million for the year, compared to a profit of approximately HK$17.4 million in 2018[71]. - The current ratio decreased from 2.6 in 2018 to 1.6 in 2019, indicating a decline in liquidity[74]. - The gearing ratio increased from 31.9% in 2018 to 51.5% in 2019, reflecting higher leverage[74]. - The net debt to equity ratio rose from 16.6% in 2018 to 33.8% in 2019, indicating increased financial risk[74]. Contract and Project Updates - In 2019, the Group did not secure any new contracts for general building works and only obtained seven new contracts for foundation works and ancillary services, reflecting a significant decline in available projects due to market conditions[23]. - As of December 31, 2019, the company had 10 contracts on hand, with an unrecognized contract sum of approximately HK$506.3 million, up from HK$386.0 million in 2018[52][56]. - The company anticipates that new contracts signed in 2019 will generate revenue in 2020, positively impacting construction services income[31][32]. - The Saipan project is expected to resume work by the end of 2020, which will positively impact construction services income in the following year[31][32]. - The overdue trade receivables from Customer A are set to be settled in stages by March 31, 2021, with HK$103,952,000 already received[45][48]. - The completion of the affected project is now expected within 18 months after the resumption of construction work, pending visa approval processes[46][50]. Renewable Energy Initiatives - The Group plans to leverage the experience and technology of its controlling shareholder to introduce renewable energy solutions in construction, aiming to enhance competitiveness in tendering[24]. - TIEN New Energy Development Limited, a subsidiary, is expanding into renewable energy construction projects, including solar and wind power systems, to diversify income sources[29]. - The outlook for the renewable energy industry remains optimistic, supported by policies from the People's Republic of China, with expectations that this sector will drive future revenue growth for the Group[29]. - The renewable energy business is expanding, with the company signing its first wind power project contract in addition to constructing solar power stations[30]. - The renewable energy business contributed approximately HK$36.7 million in revenue for 2019, significantly up from HK$0.8 million in 2018[65]. - The renewable energy business is expected to be impacted by postponed work resumption in the first half of 2020, but overall revenue impact is deemed insignificant[101]. Management and Corporate Governance - The company changed its name from "Win Win Way Construction Holdings Ltd." to "CT Vision (International) Holdings Limited" on June 14, 2019, with the new stock short name effective from August 5, 2019[117][118]. - On 25 January 2019, CT Vision Investment acquired 51% of the company's issued share capital for HK$262,180,800, marking a significant change in controlling shareholder[105]. - Following the completion of the acquisition on February 19, 2019, Zhongtian Hongxin Investment made an unconditional mandatory cash offer for all remaining shares at HKD 0.84 per share, which closed on April 24, 2019[109]. - After the change in control, three executive directors resigned on April 26, 2019, and new appointments included Mr. Wu Rui as executive director and vice chairman, and Dr. Ho Chun Kit Gregory as executive director and CEO[112]. - The board of directors saw several changes, including the appointment of Ms. Ng Yi Kum, Estella, and Mr. Wong Wing Cheong Philip as independent non-executive directors in July 2019[116]. - The company emphasizes the importance of corporate governance with independent non-executive directors contributing to its strategic direction[143][148]. Shareholder and Financial Management - The Directors do not recommend the payment of a final dividend for the year ended 31 December 2019[171]. - As of 31 December 2019, the Company's reserves available for distribution to shareholders amounted to approximately HK$153 million, compared to HK$161 million as of 31 December 2018[173]. - The company issued 100,000,000 shares at a subscription price of HK$0.84 each, receiving net proceeds of approximately HK$81.3 million after deducting issuing expenses[81]. - The proposed application of the net proceeds included HK$20.0 million for the settlement of potential acquisition consideration and HK$61.3 million for general working capital, with actual usage matching the proposed amounts as of 31 December 2019[83]. - The maximum number of shares that may be issued upon exercise of all options under the Scheme is capped at 10% of the total shares in issue on the Listing Date, which amounts to 51,200,000 shares[184]. - No share options have been granted, exercised, or cancelled under the Scheme since its adoption, maintaining the total number of shares available for grant at 51,200,000 shares, representing 10% of the issued share capital[185]. Market and Economic Conditions - The company anticipates that the slowdown in the global economy and social unrest in Hong Kong will significantly affect the construction industry, leading to a focus on completing existing projects in the upcoming financial year[100]. - The ongoing COVID-19 pandemic has caused delays in renewable energy projects, expected to affect results in the first half of 2020[31][32].

Financial Performance - Revenue for the six months ended June 30, 2019, amounted to approximately HK$104.5 million, representing a decrease of approximately 67.87% compared to HK$325.2 million in the corresponding period in 2018[30]. - Profit for the period amounted to approximately HK$10.3 million for the six months ended June 30, 2019, a decrease of approximately 36.02% compared to HK$16.1 million in the corresponding period in 2018[30]. - Basic earnings per share amounted to HK1.69 cents for the six months ended June 30, 2019, down from HK3.09 cents in 2018[30]. - The Group's unaudited consolidated revenue for the six months ended 30 June 2019 was approximately HK$104.5 million, a decrease of 67.8% from HK$325.2 million in the same period of 2018[50][52]. - Gross profit decreased from approximately HK$49.4 million to approximately HK$31.9 million, but the gross profit margin increased significantly from approximately 15.2% to approximately 30.6%[51][53]. - Profit for the six months ended 30 June 2019 was approximately HK$10.34 million, representing a decrease of approximately 35.81% from approximately HK$16.11 million in 2018[55][57]. - The total comprehensive income for the period was HK$10,302,000, compared to HK$16,111,000 for the six months ended June 30, 2018, reflecting a decline of 36.0%[143]. - The profit for the period was HK$10,341,000, down from HK$16,110,000 for the same period in 2018, indicating a decline of 35.5%[143]. Revenue Breakdown - During the six months ended June 30, 2019, foundation works and ancillary services projects generated revenue of approximately HK$47.1 million, up from HK$36.4 million in 2018, with 16 projects compared to 9 in the previous year[36][39]. - General building works contributed approximately HK$35.3 million in revenue during the same period, a significant decrease from HK$235.3 million in 2018, primarily due to most projects being in the completion phase[38][40]. - Sales of piles generated approximately HK$2.9 million in revenue, down from HK$53.5 million in 2018, attributed to decreased demand in certain geological areas[43][45]. - The construction of solar power plants and sales of electricity contributed approximately HK$19.2 million in revenue, with the Group holding 2 contracts as of the interim report date[47]. - Revenue from construction contracts for the six months ended June 30, 2019, was $82,409,000, a decrease of 69.6% compared to $271,720,000 in the same period of 2018[198]. - Revenue from the construction of solar power plants and sales of electricity reached $19,202,000, with no revenue reported in the same period of 2018[198]. - Total revenue for the six months ended June 30, 2019, was $104,468,000, a decline of 67.8% from $325,215,000 in the previous year[198]. Contracts and Projects - As of June 30, 2019, the Group had a total of 10 contracts on hand, an increase from 8 contracts as of December 31, 2018, with unrecognized contract sums amounting to approximately HK$353.9 million[33]. - The awarded contract sum for solar power projects on hand amounted to approximately RMB189.8 million, down from RMB201.0 million as of December 31, 2018[47]. - The Saipan Project's completion date has been extended to December 2019 due to various delays, including weather and policy changes[33]. - The increase in foundation works projects indicates a positive trend in construction demand, while the decline in general building works revenue suggests a need for new project acquisitions[36][38]. - The Group continues to monitor the progress of ongoing projects closely, ensuring timely completion and client communication regarding delays[33]. - The company awarded only 4 new contracts with a total contract sum of HK$16.6 million during the first half of 2019, compared to 3 new contracts totaling HK$41.4 million in the same period of 2018[82]. Financial Position and Ratios - Current ratio decreased from 2.6 as at 31 December 2018 to 2.4 as at 30 June 2019, while the gearing ratio increased from 31.9% to 39.3%[59][60]. - Net debt to equity ratio increased from 16.6% to 27.1% as at 30 June 2019, primarily due to an increase in bank loans and loans from related parties[60][61]. - As at 30 June 2019, the Group had cash and bank balances of approximately HK$43.3 million, down from HK$52.5 million as at 31 December 2018[63][67]. - The capital structure consisted of equity of approximately HK$353.0 million and debts of approximately HK$138.8 million as at 30 June 2019[64][67]. - The company reported finance costs of HKD 2,134,000, up 47.4% from HKD 1,448,000 in the previous year[134]. - Total assets as of June 30, 2019, were HKD 542,196,000, slightly down from HKD 554,760,000 at the end of 2018[137]. - Net current assets decreased to HKD 319,080,000 from HKD 338,224,000, reflecting a decline of 5.4%[139]. - Non-current liabilities increased to HKD 32,322,000 from HKD 25,443,000, an increase of 27.5%[139]. - Cash and bank balances as of June 30, 2019, were HKD 43,261,000, down from HKD 52,520,000, a decrease of 17.6%[137]. Shareholder and Corporate Governance - CT Vision Investment holds a beneficial interest of 51.01% in the Company, indicating significant control over the Group[98]. - The total interests of Dr. Ho Chun Kit and Mr. Wu Rui in CT Vision Investment are 22.4% and 7.8%, respectively, reflecting their significant stakes in the associated corporation[94]. - Condover Assets Limited holds a beneficial interest of 11.75% in the Company, indicating additional substantial shareholder involvement[98]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2019, compared to $Nil in 2018[102]. - The company complied with all code provisions of the Corporate Governance Code, except for the absence of the chairman at the annual general meeting[111]. - The company has maintained the prescribed public float under the Listing Rules from the Listing Date up to the date of the interim report[108]. Strategic Initiatives - The company plans to develop green building construction projects in domestic and overseas markets, leveraging the experience and technology of strategic shareholders[86]. - The company aims to enhance competitiveness in tendering for construction contracts by applying renewable energy and energy-saving measures in its projects[86]. - The Group aims to broaden its earning base by seeking suitable investment opportunities, with a focus on renewable energy projects[89]. - The introduction of strategic shareholders in April 2019 is expected to enhance the Group's competitiveness in construction contract bidding[88]. - The Group is actively considering expanding into domestic and overseas green building projects, leveraging the experience and technology of strategic shareholders in renewable energy applications[88]. Accounting Standards and Changes - The company has applied new accounting standards, including HKFRS 16, which may impact future financial reporting but did not have a material effect on current performance[154]. - The Group has applied HKFRS 16 for the first time in the current interim period, superseding HKAS 17 Leases[156]. - Right-of-use assets are recognized at the commencement date of the lease and measured at cost, less any accumulated depreciation and impairment losses[160]. - The Group recognizes lease liabilities at the present value of unpaid lease payments at the commencement date, using the incremental borrowing rate if the implicit interest rate is not determinable[166]. - The Group applies HKFRS 15 to allocate consideration in a contract to lease and non-lease components based on their relative standalone selling prices[172].

Contracts and Projects - The company secured 5 new contracts with a total value of HKD 68.0 million during the fiscal year ending December 31, 2018[19]. - As of December 31, 2018, the company had a total of 8 contracts on hand, with an unrecognized contract amount of approximately HKD 386.0 million[25]. - The company had 16 foundation engineering projects in 2018, down from 44 in 2017[26]. - The company reported a total of 11 general construction projects as of December 31, 2018, consistent with the previous year[27]. - The completion date for the Saipan project has been postponed to December 2019 due to various delays[24]. - The group completed 9 foundation engineering projects and 6 general construction projects during the year[35]. Revenue and Financial Performance - Revenue from foundation engineering and related services was approximately HKD 102.7 million, a decrease from HKD 131.3 million in 2017[26]. - Revenue from general construction projects was approximately HKD 441.4 million, down from HKD 622.9 million in 2017[27]. - For the year ended December 31, 2018, the group reported revenue of approximately HKD 610.8 million, a decrease of about 25.7% from HKD 821.9 million in 2017[35]. - The gross profit decreased to approximately HKD 86.4 million from HKD 113.9 million in the previous year, while the gross profit margin slightly increased to 14.2% from 13.9%[36]. - Net profit for the year fell to approximately HKD 17.4 million, down about 24.0% from HKD 22.9 million in 2017[37]. - Sales of piles generated revenue of approximately HKD 65.8 million, compared to HKD 67.7 million in 2017[32]. - Sales of electricity contributed approximately HKD 0.8 million to the group's revenue for the year[33]. Competition and Market Conditions - The company faced significant competition in the Hong Kong construction market, impacting profit margins and shareholder equity[19]. - The construction industry in Hong Kong is highly competitive, which may impact the group's profitability and market share[44]. - The group anticipates significant pressure on profit margins due to intense competition in the Hong Kong construction bidding market, with expectations of a deteriorating performance in the next fiscal year[77]. Acquisitions and Strategic Initiatives - The company completed the acquisition of 100% equity in Zhongtian New Energy Development Co., Ltd. in July 2018, which is expected to provide new revenue sources[20]. - The acquisition of Zhongtian New Energy is seen as a stepping stone for the group to enter the energy performance contracting market in China, potentially introducing a new revenue base and diversifying profit sources[77]. - The company is focused on expanding its market presence in renewable energy projects, leveraging the expertise of its executives in this sector[88]. Financial Ratios and Capital Structure - Current ratio increased from 2.1 on December 31, 2017, to 2.6 on December 31, 2018, due to an increase in contract assets[54]. - Leverage ratio rose from 25.1% on December 31, 2017, to 31.9% on December 31, 2018, primarily due to increased bank loans and overdrafts[54]. - Net debt to equity ratio increased significantly from 1.7% on December 31, 2017, to 16.6% on December 31, 2018, attributed to higher bank loans and loans from related parties[54]. - Interest coverage ratio decreased from 20.0 on December 31, 2017, to 6.7 on December 31, 2018, mainly due to increased bank loans and reduced operating profit[54]. Shareholder and Dividend Information - The group’s available reserves for distribution to shareholders were approximately HKD 161 million as of December 31, 2018, an increase from HKD 81 million on December 31, 2017[111]. - The group did not recommend the payment of a final dividend for the year ended December 31, 2018[105]. Governance and Management - The board of directors includes 6 executive directors and 3 independent non-executive directors, ensuring a balance of skills and experience[186]. - The management team, consisting of executive directors and senior executives, is responsible for executing the strategies adopted by the board and managing daily operations[189]. - The board held a total of 8 meetings during the year, with all executive directors attending 100% of the meetings[195]. - The company adheres to the corporate governance code, holding at least four board meetings annually[191]. Related Party Transactions - The company entered into significant related party transactions, including procurement agreements with Guangzhou Yangcheng, which is indirectly controlled by Dr. Jian, Mr. Li, and Mr. Huang[152]. - The independent non-executive directors confirmed that the continuing connected transactions were conducted on normal commercial terms and were in the overall interest of the company's shareholders[151]. Employee and Compensation Information - The group had 160 employees as of December 31, 2018, with a competitive compensation package based on market levels and employee performance[65].