Financial Performance - Total revenue for the year was HKD 4,271,161,000, an increase from HKD 4,053,908,000 in the previous year, representing a growth of approximately 5.4%[67] - Gross profit decreased to HKD 452,886,000 from HKD 515,000,000, reflecting a decline of about 12.1%[67] - The net profit for the year was HKD 90,538,000, down from HKD 221,543,000, indicating a significant decrease of approximately 59.0%[67] - The company reported a total comprehensive income of HKD 36,442,000, compared to HKD 236,042,000 in the previous year, a decline of about 84.5%[67] - The company's revenue for the year ended December 31, 2022, was HKD 1,278,136,000, a decrease from HKD 1,307,063,000 in 2021, representing a decline of approximately 2.2%[96] - The operating profit before tax for 2022 was HKD 106,180,000, down from HKD 249,096,000 in 2021, indicating a significant decrease of about 57.4%[98] - The company recognized other income of HKD 51,229,000, up from HKD 42,296,000, reflecting an increase of about 21.5%[67] Assets and Liabilities - As of December 31, 2022, total assets amounted to HKD 2,285,686 thousand, a slight decrease from HKD 2,335,533 thousand in the previous year[93] - Non-current assets were reported at HKD 749,573 thousand, down from HKD 812,308 thousand year-on-year[93] - Current liabilities decreased to HKD 1,529,119 thousand from HKD 1,572,319 thousand, indicating improved liquidity management[93] - The company's equity attributable to shareholders was HKD 1,169,736 thousand, a decline from HKD 1,193,866 thousand in the prior year[94] - The total equity of the company stood at HKD 1,278,136 thousand, compared to HKD 1,307,063 thousand in the previous year[94] - The company reported a significant increase in trade and other receivables, reaching HKD 959,118 thousand, up from HKD 899,800 thousand[93] - The cash and cash equivalents decreased to HKD 541,569 thousand from HKD 672,722 thousand, reflecting a tighter cash position[93] - The company’s non-current lease liabilities decreased to HKD 203,872 thousand from HKD 243,034 thousand, indicating a reduction in long-term obligations[94] Environmental and Social Responsibility - The company provided sponsorship of HKD 500,000 to the North District Football Recreation Association, becoming the main sponsor for their football team despite the COVID-19 pandemic[7] - The company has established targets for emissions reduction and has taken steps to achieve these goals[9] - The total amount of hazardous waste generated during the reporting period is documented, along with measures for waste management[9] - The company continues to promote effective resource usage policies, including energy and water conservation[9] - The company has committed to responsible and fair collection and use of customer data, strictly adhering to relevant regulations[5] - The company has no legal violations related to personal privacy during the reporting period[5] - There were no legal proceedings related to corruption during the reporting period[6] Financial Management - The financial expenses related to bank borrowings increased to HKD 41,517,000 from HKD 27,130,000, marking a rise of approximately 53.2%[67] - The expected credit loss model resulted in administrative expenses of HKD 159,890,000, down from HKD 196,063,000, a decrease of approximately 18.4%[67] - The company paid dividends of HKD 57,438,000 in 2022, an increase from HKD 31,591,000 in 2021, representing an increase of approximately 82%[99] - The company incurred financial costs of HKD 41,517,000 in 2022, compared to HKD 27,130,000 in 2021, marking an increase of about 53%[98] - The company experienced a net cash outflow from investing activities of HKD 48,547,000 in 2022, compared to a net inflow of HKD 2,749,000 in 2021[99] Accounting Policies and Standards - The group has not early adopted the new and revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[104] - The amendments to HKAS 1 clarify the classification of liabilities as current or non-current, impacting the assessment of deferred settlement rights[105] - The consolidated financial statements are prepared based on the historical cost method, with certain financial instruments measured at fair value[108] - The group recognizes goodwill arising from business acquisitions at the cost determined on the acquisition date, less any accumulated impairment losses[115] - Deferred tax assets are reviewed at each reporting period end and reduced if it is no longer probable that sufficient taxable profits will be available to utilize the assets[125] - The group applies the equity method for investments in associates and joint ventures, with goodwill recognized for any excess of cost over the fair value of identifiable net assets[119] - Non-controlling interests are presented separately in the consolidated financial statements, representing the proportionate share of net assets attributable to those interests[112] - The group will continue to use the equity method when an investment in an associate becomes an investment in a joint venture, without re-measuring fair value[122] - The amendments to HKAS 1 introduced in 2020 and 2022 provide additional guidance on the classification of liabilities and compliance with covenants[105] - The group expects that the application of all other new and revised Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[104] Revenue Recognition - The group recognizes revenue when control of the goods or services is transferred to the customer, either over time or at a point in time[159] - The group will reclassify cumulative exchange differences to profit or loss upon the sale of overseas operations, including the loss of control over subsidiaries containing overseas businesses[149] Inventory and Asset Management - The group uses the weighted average cost method for inventory costs of concrete products, while all other products are calculated using the first-in, first-out method[131] - Inventory is recorded at the lower of cost and net realizable value[194] - The cost of right-of-use assets includes any lease payments made before the commencement date, less any lease incentives received[186] - Lease liabilities are recognized at the present value of lease payments not yet paid at the lease commencement date[190] - Depreciation of assets is calculated on a straight-line basis over their estimated useful lives, with estimates reviewed at each reporting period end[199] - The group recognizes any gains or losses from the sale or disposal of property, plant, and equipment in profit or loss[183]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 全年業績 截至二零二二年十二月三十一日止年度 高力集團有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬公司（「本集團」）截至 二零二二年十二月三十一日止年度之經審核綜合業績，連同截至二零二一年十二月三十一日止 年度之比較數字如下： 綜合損益及其他全面收益表 截至十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 3 4,271,161 4,053,908 銷售成本 (3,818,275) (3,538,908) 毛利 452,886 515,000 其他收入 51,229 42,296 銷售及分銷成本 (139,875) (131,716) 行政費用 (159,890) (196,063) 根據預期信貸損失（「預期信貸損失」）模式的 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 2,119,928, an increase of 7.5% compared to HKD 1,972,376 for the same period in 2021[4] - Gross profit decreased to HKD 231,444, down 20.7% from HKD 292,086 in the previous year[4] - Net profit for the period was HKD 44,731, a decline of 51.3% compared to HKD 91,862 in the same period last year[4] - Total comprehensive income for the period was HKD 17,656, significantly lower than HKD 98,218 in the previous year, reflecting a decrease of 82.0%[6] - Basic earnings per share decreased to HKD 0.067, down from HKD 0.1363 in the prior year, representing a decline of 50.9%[6] - The company reported a total comprehensive income of 98,218 thousand HKD for the period ending June 30, 2022, compared to 137,824 thousand HKD for the same period in the previous year, reflecting a decrease of approximately 28.7%[19] - The group reported a profit of HKD 38,476,000 for the six months ended June 30, 2022, compared to HKD 78,286,000 for the same period in 2021, indicating a decrease of approximately 50.9% [70] Assets and Liabilities - Non-current assets amounted to HKD 784,343, a slight decrease from HKD 812,308 as of December 31, 2021[8] - Current assets increased to HKD 2,560,155, up from HKD 2,335,533 at the end of 2021, indicating a growth of 9.6%[8] - Total equity decreased to HKD 1,278,769 from HKD 1,307,063, a decline of 2.2%[12] - The total equity attributable to shareholders was reported at 1,307,063 thousand HKD as of June 30, 2022, compared to 1,278,769 thousand HKD in the previous year, showing an increase of approximately 2.2%[23] - The company's total assets as of June 30, 2022, were valued at 1,193,866 thousand HKD, reflecting a slight increase from 1,165,372 thousand HKD in the prior year[23] - The net trade receivables as of June 30, 2022, amounted to HKD 921,134,000, an increase from HKD 813,594,000 as of December 31, 2021, reflecting a growth of 13.2% [74] - Trade and other payables as of June 30, 2022, were HKD 430,015,000, significantly higher than HKD 238,343,000 as of December 31, 2021, reflecting an increase of 80.5% [77] - The group's total borrowings as of June 30, 2022, were approximately HKD 1,279,160,000, compared to HKD 1,245,786,000 as of December 31, 2021[100] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2022, was 1,237,776 thousand HKD, an increase from 894,684 thousand HKD in the prior year, representing a growth of about 38.3%[29] - The company incurred a net cash outflow from investing activities of 29,207 thousand HKD for the current period, compared to a net inflow of 2,029 thousand HKD in the previous year[29] - The financing activities resulted in a net cash outflow of 1,324,614 thousand HKD, significantly higher than the outflow of 774,165 thousand HKD in the prior year, indicating increased financing costs[29] - The group’s cash flow from operating activities was reclassified to a net cash inflow of HKD 894,684,000 for the six months ended June 30, 2021[83] Revenue Segmentation - Revenue from metal products was HKD 617,738, while revenue from construction materials was HKD 1,502,112, contributing to the overall revenue[39] - The company’s revenue from operations for the six months ended June 30, 2022, was 744,936 thousand HKD, compared to 739,877 thousand HKD in the same period last year, indicating a slight increase[23] - The construction materials business generated revenue of approximately HKD 1,502,112,000, representing a 30% increase compared to the same period last year[98] - Revenue from the metal products segment was approximately HKD 619,185,000, a decrease of 24% compared to the same period last year[95] Expenses and Financial Costs - The financial expenses for the period amounted to HKD 14,987, including bank borrowing interest of HKD 9,003 and lease liabilities interest of HKD 5,984[44] - The group’s tax expenses for the six months ended June 30, 2022, were HKD 9,715,000, compared to HKD 8,524,000 for the same period in 2021, representing an increase of 13.9% [64] - The group’s depreciation expenses for property, plant, and equipment were HKD 19,032,000 for the six months ended June 30, 2022, compared to HKD 20,556,000 in the same period of 2021, showing a decrease of 7.4% [68] Market Outlook - The group expects a prolonged golden period for the Hong Kong construction industry due to strong demand for land, public facilities, and housing[104] - The group maintains a positive outlook for the construction materials business despite challenges from the pandemic and international market volatility[104] Corporate Governance - The Audit Committee was established on January 5, 1999, consisting of three independent non-executive directors[116] - The Remuneration Committee was formed on April 21, 2005, also comprising three independent non-executive directors[117] - The Nomination Committee was established on December 30, 2021, led by an executive director and three independent non-executive directors[119] - The company confirmed compliance with the standards set forth in the code of conduct for securities trading by directors for the six months ending June 30, 2022[120] - There were no purchases or redemptions of the company's listed securities by the company or its subsidiaries during the six months ending June 30, 2022[121] Employee and Stakeholder Relations - The company expressed gratitude to employees, management, shareholders, clients, banks, and business partners for their support and efforts[122]

Financial Performance - The total revenue for the year ended December 31, 2021, was approximately HKD 4,053,908,000, representing a 36% increase compared to the previous year[35]. - The profit attributable to shareholders for the year was approximately HKD 197,584,000, an increase of 111% year-on-year[37]. - The growth in revenue was driven by average growth in the two core businesses, metal products and construction materials, along with rising commodity prices, including steel[36]. - The gross profit margin was under pressure due to rapidly rising raw material costs[37]. - The group's revenue for the year was approximately HKD 1,618,359,000, an increase of 22% compared to the previous year[41]. - The group's interest and tax pre-profit was approximately HKD 122,228,000, a decrease of 12% compared to the previous year[41]. - The construction materials business generated revenue of approximately HKD 2,441,607,000, an increase of 46% year-on-year[44]. - The interest and tax pre-profit for the construction materials business was approximately HKD 67,223,000, an increase of 47% year-on-year[44]. - The company reported retained earnings of HKD 117,465,000 as of December 31, 2021, compared to HKD 107,333,000 in the previous year, reflecting an increase of approximately 10.55%[195]. - The total distributable reserves available to shareholders as of December 31, 2021, amounted to HKD 183,356,000, up from HKD 173,224,000 in the previous year[195]. Challenges and Market Conditions - The company faced challenges during the year due to the COVID-19 pandemic, supply chain disruptions, and significant fluctuations in commodity prices, particularly in the second half of the year[37]. - The group anticipates that the business environment will remain unstable in 2022, with ongoing challenges and uncertainties[51]. Corporate Governance - The company has appointed Ms. Peng Yunping as the CEO since January 1, 2022, ensuring compliance with the corporate governance code regarding the separation of roles between the chairman and CEO[60]. - The board of directors consists of four executive directors and three independent non-executive directors, with Mr. Peng Dezhong serving as the chairman[62]. - The company has established a nomination committee as of December 30, 2021, to comply with the corporate governance code[60]. - The company has maintained compliance with the standards set forth in the Securities Trading Code for directors during the fiscal year ending December 31, 2021[61]. - The company has a strong focus on maintaining good corporate governance practices as outlined in the Hong Kong Stock Exchange listing rules[60]. - The company has a comprehensive insurance policy for all directors and senior management to cover their responsibilities[65]. - The company has adopted a board diversity policy to enhance the benefits of diversity in board appointments[75]. - The company encourages directors to participate in external courses to enhance their knowledge of their roles and responsibilities[66]. - The board has adopted a nomination policy outlining the selection criteria and nomination procedures for new and reappointed directors, focusing on educational background, professional qualifications, industry experience, character, and integrity[81]. Risk Management - The risk management and internal control systems are integrated into daily operations, with the board overseeing the risk management process and evaluating potential risks[86]. - The company has established policies and procedures in various risk areas, including financial, operational, and strategic risks, to prevent unauthorized asset use and ensure reliable financial reporting[86]. - The board believes that the risk management and internal control systems are effective and sufficient, with no significant concerns affecting shareholders identified[89]. Employee and Workforce - The total number of employees in the group is 1,345, with 89% being male[104]. - The employee turnover rate for the reporting period was 28%, up from 21% in 2020, indicating a significant increase in workforce instability[124]. - The workforce is predominantly male, with 1,260 males (84%) and 245 females (16%)[134]. - The group operates primarily in Mainland China (1,237 employees) and Hong Kong (268 employees)[137]. - The managerial level comprises 109 employees, while supervisory and general staff levels include 81 and 1,315 employees, respectively[135]. - During the reporting period, 1,345 employees (89%) received training, totaling approximately 31,000 hours, with an average training time of 23 hours per employee[146]. - The group recorded 3,292 lost workdays due to work injuries, with no severe injuries or fatalities reported during the year[144]. Environmental, Social, and Governance (ESG) - Four major areas identified for environmental, social, and governance (ESG) focus are occupational health and safety, environment, social, and governance[109]. - The company aims to enhance its sustainable development performance through responsible stakeholder engagement[98]. - The report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange[101]. - Total direct and indirect carbon emissions for the fiscal year 2021 amounted to 1,910 tons of CO2 equivalent, an increase of 1.38% compared to 2020[115]. - The total amount of chemical waste generated was 0.8 tons, maintaining the same level as in 2020, while non-hazardous waste totaled 9,396 tons, a decrease of 14.31% from 2020[117]. - The company aims to reduce carbon emissions and improve operational efficiency as part of its commitment to sustainable growth[115]. - The company has implemented measures to manage hazardous and non-hazardous waste sustainably, aiming to minimize environmental impact[117]. - The company emphasizes the importance of water conservation and has implemented water management plans to reduce usage and improve drainage quality[123]. - The company adheres to labor rights and human rights, with no reported violations regarding child or forced labor during the reporting period[156]. Dividends and Shareholder Returns - The company paid an interim dividend of HKD 0.02 per share, totaling approximately HKD 11,488,000[192]. - The proposed final dividend is HKD 0.03 per share and a special dividend of HKD 0.05 per share, amounting to approximately HKD 45,950,000[192].

Financial Performance - The company reported a revenue of HKD 1,972,376,000 for the six months ended June 30, 2021, representing a 56.5% increase from HKD 1,258,920,000 in the same period of 2020[3]. - Gross profit for the same period was HKD 292,086,000, up 41.8% from HKD 206,022,000 year-on-year[3]. - The net profit for the period was HKD 91,862,000, compared to HKD 32,667,000 in the previous year, marking an increase of 180.5%[3]. - The total comprehensive income for the period was HKD 98,218,000, significantly higher than HKD 22,328,000 in the prior year[7]. - The company's basic earnings per share for the period was HKD 13.63, compared to HKD 3.89 in the previous year, reflecting a substantial growth[9]. - The company reported other income of HKD 22,738,000, which is a significant increase from HKD 9,844,000 in the previous year, representing a growth of 131.5%[3]. - The pre-tax profit for the six months ended June 30, 2021, was HKD 100,386,000, compared to HKD 40,250,000 for the same period in 2020[44][49]. - Profit for the period was HKD 78,286,000, compared to HKD 22,338,000 for the same period in 2020, reflecting a significant increase[59]. - Profit attributable to shareholders after deducting non-controlling interests was approximately HKD 78,286,000, a significant increase of 250% year-on-year[83]. Cash Flow and Financial Position - The company reported a net cash outflow from operating activities of HKD 166,669,000 for the six months ended June 30, 2021, compared to a net inflow of HKD 187,007,000 for the same period in 2020[26]. - The company generated a net cash inflow from investing activities of HKD 2,029,000, a significant improvement from a net outflow of HKD 19,940,000 in the previous year[26]. - Financing activities resulted in a net cash inflow of HKD 287,188,000, compared to a net outflow of HKD 184,693,000 in the prior period[26]. - The company's cash and cash equivalents increased to HKD 547,199,000 at the end of the period, up from HKD 303,097,000 at the end of the previous period[26]. - The total borrowings as of June 30, 2021, were approximately HKD 1,019,677,000, compared to HKD 691,766,000 at the end of 2020[89]. - The net asset to debt ratio was 0.42:1 as of June 30, 2021, compared to 0.26:1 at the end of 2020[90]. Assets and Liabilities - The company's current liabilities increased to HKD 1,505,896,000 from HKD 1,105,887,000, reflecting a rise of 36.1%[13]. - The inventory as of June 30, 2021, was HKD 735,254,000, up from HKD 444,521,000, indicating a 65.5% increase[11]. - Trade and bills receivables net amount increased to HKD 776,940,000 from HKD 691,940,000, indicating improved collection efficiency[64]. - Trade payables as of June 30, 2021, amounted to HKD 179,503,000, up from HKD 145,567,000 as of December 31, 2020[68]. Dividends and Shareholder Information - The company declared dividends amounting to HKD 2,820,000 to non-controlling interests during the period[26]. - The company declared a final dividend of HKD 0.035 per share for the year ended December 31, 2020, totaling approximately HKD 20,103,000[58]. - The company declared an interim dividend of HKD 0.02 per share[84]. - Golik Investments Ltd. holds 201,666,392 shares, representing 35.11% of the issued share capital[101]. Operational Insights - The company faced challenges due to the COVID-19 pandemic, including rising raw material prices and supply chain disruptions, but managed to achieve expected performance targets[83]. - The company actively focused on operational efficiency to mitigate business risks during the challenging environment[83]. - The construction materials business faced pressure from rising raw material costs, but implemented strict measures to stabilize costs and ensure supply[87]. Corporate Governance and Management - The company has maintained compliance with the corporate governance code as per Appendix 14 of the listing rules for the six months ending June 30, 2021, with exceptions noted[103]. - The company has not engaged in any buying or redeeming of its listed securities during the six months ending June 30, 2021[114]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2021[110]. - The company has not established a nomination committee, as the entire board is responsible for reviewing its structure and appointing new directors[103]. - The company appointed Mr. Xie Duan Tai as an independent non-executive director on June 16, 2021[108]. - The company has seen changes in its board composition, including the resignation of Mr. Liu Yihui as an executive director effective July 1, 2021[106]. Accounting Policies and Standards - The company did not adopt any new standards or interpretations that were not yet effective during the accounting period[41]. - The application of revised Hong Kong Financial Reporting Standards did not have a significant impact on the financial position and performance of the group[31]. - The group’s accounting policies for operating segments are consistent with the overall accounting policies of the group[50].

Financial Performance - The total revenue for the year ended December 31, 2020, was HKD 2,991,068,000, representing an increase of approximately 7% compared to the previous year[43]. - The attributable profit to shareholders after deducting non-controlling interests was HKD 93,545,000, showing significant improvement over the previous year's performance[45]. - The two core businesses, metal products and building materials, both experienced average growth during the year[44]. - The company faced challenges due to the COVID-19 pandemic, which impacted global economic activities, but most businesses managed to recover growth as planned[45]. - The revenue breakdown for 2020 showed that metal products accounted for 44% and building materials accounted for 56% of total revenue[41]. - The company’s pre-tax profit for 2020 was HKD 141,304,000, compared to a loss of HKD 78,195,000 in 2018[7]. - The construction materials segment reported revenue of HKD 1,674,282,000, a 7% increase compared to the previous year, with significant growth in EBIT[50]. - The metal products segment generated revenue of HKD 1,327,239,000, an increase of approximately 8% year-on-year, with EBIT rising by 52% to HKD 139,440,000[48]. Financial Position - Total assets as of December 31, 2020, were HKD 2,446,006,000, with total liabilities of HKD 1,340,574,000[7]. - The net asset value for the company was HKD 1,105,432,000 at the end of 2020[7]. - As of December 31, 2020, the group's cash and bank balances totaled HKD 403,092,000, up from HKD 304,672,000 the previous year[52]. - The group's total borrowings amounted to HKD 691,766,000, a decrease from HKD 791,461,000 in the previous year[53]. - The net asset-to-debt ratio improved to 0.26:1 from 0.50:1 year-on-year, indicating a stronger capital structure[53]. Corporate Governance - The company is committed to maintaining good corporate governance practices as outlined in the Hong Kong Stock Exchange's Listing Rules[66]. - The board currently consists of four executive directors and three independent non-executive directors, with a recent resignation reducing the number of independent directors to two[71]. - The company is actively seeking suitable candidates to fill the vacancy left by the resignation of an independent non-executive director to comply with the Listing Rules[68]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set out in the Listing Rules[69]. - All directors and senior management have been provided with directors' and officers' liability insurance[72]. - The company encourages continuous professional development for all directors to ensure they remain informed and capable of contributing effectively[73]. - Independent non-executive directors have confirmed their independence in accordance with the Listing Rules[71]. - The company has established service contracts with all directors, which are subject to annual renewal[75]. - The company has complied with the corporate governance code, except for the combined roles of the chairman and CEO, which the board believes provides strong leadership[67]. - The company is committed to reviewing the board's structure and composition regularly to ensure it meets the business's needs[67]. Risk Management - The board oversees the risk management process, integrating it into daily operations to identify and address key business risks[94]. - The internal audit function regularly reviews the adequacy and effectiveness of the risk management and internal control systems[95]. - The company has implemented policies and procedures to prevent unauthorized asset appropriation and ensure reliable financial reporting[94]. - The company believes that the risk management and internal control systems are effective and sufficient as of December 31, 2020[97]. Sustainability and Environmental Impact - A sustainability committee led by the board has been established to promote environmental, social, and governance practices[107]. - The company emphasizes the importance of sustainable development as part of its corporate strategy[105]. - Total direct and indirect carbon emissions for the fiscal year 2020 amounted to 1,884 tons of CO2 equivalent, an increase of 32.58% compared to 2019[118]. - The company aims to reduce or prevent negative environmental impacts from its operations, products, and services[124]. - The company has implemented measures to continuously invest in facilities equipped with the latest technology to reduce energy consumption and emissions[117]. - The company is committed to sustainable waste management practices, aiming to minimize waste generation and enhance recycling efforts[119]. Employee and Training - Total number of employees in Hong Kong and mainland China as of December 31, 2020, was 1,629, an increase from 1,557 in 2019[127]. - Employee turnover rate during the reporting period was 21%, compared to 19% in 2019[127]. - 1,390 employees, representing 85% of the workforce, received training during the reporting period, totaling approximately 77,000 hours of training[131]. - Average training time per employee during the reporting period was 55.4 hours[131]. - The company has not recorded any work-related fatalities or serious injuries in the past three years, including the reporting year[129]. Audit and Financial Reporting - The independent auditor, Deloitte, has audited the company's consolidated financial statements, which reflect a true and fair view of the group's financial position as of December 31, 2020[182]. - The company is responsible for preparing financial statements that reflect a true and fair view in accordance with applicable accounting standards[194]. - The auditor's responsibility is to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error[196]. - The overall presentation, structure, and content of the consolidated financial statements, including disclosures, were assessed to ensure they fairly reflect relevant transactions and events[200]. Shareholder Engagement - The company is committed to enhancing communication with shareholders through annual and special general meetings[100]. - The company must consider financial performance, earnings, and operational needs when proposing dividend payments[92]. - The company provided a final dividend of HKD 0.035 per share, totaling HKD 20,103,000, with no interim dividend paid during the year[151].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 1,258,920 thousand, a decrease of 5.9% compared to HKD 1,338,948 thousand in the same period of 2019[4] - Gross profit increased to HKD 206,022 thousand, up 32.9% from HKD 155,022 thousand year-on-year[4] - The net profit for the period was HKD 32,667 thousand, compared to a loss of HKD 6,976 thousand in the same period of 2019[4] - Basic earnings per share for the period was HKD 3.89, compared to a loss of HKD 2.44 per share in the previous year[6] - The company reported a total comprehensive income of HKD 22,328 thousand for the period, compared to a loss of HKD 8,226 thousand in the same period of 2019[6] - The total comprehensive income for the period was HKD 22,973, compared to HKD 13,745 for the previous year, indicating a significant increase[23] - The company reported a profit before tax of HKD 40,250 thousand for the six months ended June 30, 2020, compared to a loss of HKD 3,650 thousand in the same period of 2019[36] - The company's profit for the six months ended June 30, 2020, was HKD 22,338,000, compared to a loss of HKD 13,697,000 for the same period in 2019, indicating a significant turnaround in performance[49] Revenue Breakdown - Revenue from metal products was HKD 525,155 thousand, down from HKD 555,368 thousand in the previous year, representing a decline of 5.9%[39] - Revenue from concrete products increased to HKD 174,250 thousand from HKD 118,602 thousand, marking a growth of 47.0%[39] - Revenue from construction steel products and other construction products was HKD 559,515 thousand, down from HKD 650,630 thousand, a decrease of 13.98%[39] - The geographical breakdown of revenue showed HKD 709,302 thousand from Hong Kong, HKD 498,715 thousand from Mainland China, and HKD 19,115 thousand from the USA for the current period[42] - Revenue from the metal products segment was HKD 528,818,000, a decrease of 5%, while profit before interest and tax increased by 46% to HKD 53,748,000[71] - Revenue from the construction materials segment was HKD 734,827,000, also a decrease of 5%, with profit before interest and tax turning positive at HKD 14,108,000[74] Assets and Liabilities - Total assets as of June 30, 2020, amounted to HKD 1,385,715 thousand, down from HKD 1,569,533 thousand as of December 31, 2019[8] - Current liabilities decreased to HKD 958,830 thousand from HKD 1,153,428 thousand at the end of 2019[10] - Non-current liabilities increased to HKD 239,624 thousand from HKD 235,982 thousand at the end of 2019[15] - The company’s total equity attributable to shareholders was HKD 506,917 as of December 31, 2019, reflecting a stable financial position[23] - The group’s current assets totaled HKD 625,704,000 as of June 30, 2020, down from HKD 644,361,000 as of December 31, 2019[52] - The company’s trade payables decreased to HKD 106,327,000 as of June 30, 2020, from HKD 159,912,000 as of December 31, 2019[54] - Total bank borrowings amounted to HKD 652,455,000, a decrease from HKD 791,461,000 at the end of 2019[75] - The net debt-to-equity ratio was 0.38:1 as of June 30, 2020, down from 0.50:1 at the end of 2019[78] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 187,007, a decrease from HKD 224,835 in the same period last year[27] - The company reported a net cash outflow from investing activities of HKD 19,940, up from HKD 13,358 in the prior year[27] - The company’s cash and cash equivalents decreased to HKD 303,097 from HKD 382,995 at the beginning of the period[27] - The company issued new trust receipt loans amounting to HKD 419,297 during the reporting period[27] - The group sold investment properties with a total book value of HKD 4,020,000 during the period, while purchasing property, plant, and equipment amounting to HKD 28,045,000 to enhance production capacity[51] - The group incurred new bank loans and trust receipt loans of HKD 188,564,000 and HKD 419,297,000 respectively during the period, with total repayments of HKD 259,711,000 and HKD 483,930,000[58] Corporate Governance and Future Outlook - The company plans to continue focusing on cost management and operational efficiency to enhance profitability in the future[4] - The company continues to focus on expanding its market presence and enhancing product offerings in response to changing market demands[36] - The company anticipates that 2020 will be filled with challenges and uncertainties due to the impact of COVID-19 on the global economy and various political and social events in Hong Kong[80] - The company maintains a solid foundation in its two core businesses and is cautiously optimistic about improving overall performance for the year[80] - The company plans to adopt a prudent approach to further adjust and optimize its current businesses to enhance risk resilience[80] - The company is committed to effective resource utilization and strategic planning to continue developing its business efficiently[88] Shareholder Information - The company declared a final cash dividend of HKD 0.02 per share for the year ended December 31, 2019, totaling HKD 11,488,000, compared to HKD 11,238,000 for the previous period[47] - As of June 30, 2020, Mr. Peng Dezhong holds a total of 365,594,474 shares, representing 63.65% of the issued shares[82] - Golik Investments Ltd. holds 201,666,392 shares, accounting for 35.11% of the company's total issued shares[85] - The company has not granted any options under the share option scheme since its adoption on June 5, 2014, which is valid for ten years until June 4, 2024[83] Employee and Management - The group had 1,651 employees as of June 30, 2020, with compensation based on performance and industry standards[79] - The board decided not to declare an interim dividend for the period[70] - The company expresses gratitude to its employees, management, shareholders, customers, banks, and business partners for their support and efforts[99] - The company has adhered to the corporate governance code throughout the six months ending June 30, 2020, with some exceptions regarding the roles of the chairman and CEO[88] - No securities were bought or redeemed by the company or its subsidiaries during the six months ending June 30, 2020[97]

Financial Performance - The total revenue for the year ended December 31, 2019, was HKD 2,803,735,000, a decrease of approximately 9% compared to the previous year[19]. - The company reported a loss attributable to shareholders of HKD 6,233,000, a significant improvement from a loss of HKD 84,782,000 in the previous year[21]. - Revenue for the year was HKD 1,561,518,000, a decrease of 17% compared to the same period last year[26]. - Interest and tax pre-profit improved significantly to HKD 2,106,000 compared to the previous year[26]. - The company reported a profit before tax of HKD 14,396, compared to a loss of HKD 78,195 in 2018[143]. - Net profit for the year was HKD 8,451, a significant recovery from a loss of HKD 80,021 in 2018[143]. - The total comprehensive income for the year was a loss of HKD 102,344,000, which includes a loss of HKD 84,782,000 attributed to shareholders[147]. - The company paid dividends of HKD 22,477,000 to shareholders during the year[147]. Segment Performance - The metal products segment generated revenue of HKD 1,233,605,000, an increase of approximately 4% year-on-year, with a substantial increase in profit before interest and tax of about 90%[23]. - The construction materials business showed significant improvement compared to the previous year despite the overall construction industry remaining sluggish[26]. - The group remains optimistic about the construction materials business due to several large-scale infrastructure projects, including airport expansion and public housing construction peaks in the coming years[26]. Assets and Liabilities - The total assets as of December 31, 2019, were HKD 2,358,997,000, while total liabilities were HKD 1,389,410,000[10]. - The company’s net asset value decreased to HKD 969,587,000 from HKD 985,749,000 in the previous year[10]. - The total borrowings of the group were HKD 791,461,000 as of December 31, 2019, down from HKD 1,024,098,000 the previous year[29]. - The net asset liability ratio improved to 0.50:1 as of December 31, 2019, compared to 0.67:1 the previous year[31]. Governance and Compliance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange listing rules throughout the year ending December 31, 2019[41]. - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure[44]. - The company has adopted a code of conduct for directors' securities trading, confirming adherence to the standards set forth in the listing rules[43]. - The chairman and CEO roles are currently held by the same individual, Mr. Peng Dezhong, which the board believes provides strong and effective leadership[42]. - The company has established a board diversity policy, considering various factors such as gender, age, and professional experience in director appointments[53]. Risk Management - The company emphasizes the importance of risk management as an integral part of its business strategy[62]. - The Board evaluates potential risks to identify and address key business risks[62]. - The Board believes that the group's risk management and internal control systems are effective and sufficient as of December 31, 2019[64]. Sustainability and Community Engagement - The company actively supports community initiatives, providing a sponsorship of HKD 500,000 to the North District Football Recreation Association for their football team[72]. - The company emphasizes sustainable development as a core part of its business strategy, integrating it into daily operations and continuously reviewing and expanding sustainability projects[71]. - The company maintains high levels of business integrity and transparency, focusing on ethical supply chain management and compliance with local laws and international guidelines[76]. - The company is committed to creating a safe and healthy work environment, promoting employee health and safety education[77]. Environmental Impact - Total direct and indirect carbon emissions for the fiscal year 2019 amounted to 2,420 tons of CO2 equivalent, a decrease of 16.0% compared to 2018[82]. - The total amount of hazardous chemical waste generated was 0.4 tons, representing a significant reduction of 77.8% from 1.8 tons in 2018[86]. - Total electricity consumption for specific plants was 752,360 kWh, a decrease of 15.1% from 886,065 kWh in 2018[88]. - Total water consumption was 48,168 cubic meters, reflecting a decrease of 25.3% compared to 64,519 cubic meters in 2018[86]. Shareholder Information - The proposed final dividend for shareholders is HKD 0.02 per share, totaling HKD 11,488,000[91]. - As of December 31, 2019, the company had a total of 365,594,474 shares held by Mr. Peng Dezhong, representing 63.65% of the issued shares[97]. - The company has a total of 574,378,128 share options available for issuance, equivalent to 10% of the company's issued share capital[98]. Related Party Transactions - The company’s independent non-executive directors confirmed that the transactions were conducted in the ordinary course of business and on normal commercial terms[119]. - The auditor issued an unqualified opinion on the company’s continuous related party transactions[120]. - The company plans to continue its leasing agreements and processing services with Zhongxing Shengda until 2036[116][119].

Financial Performance - For the six months ended June 30, 2019, Golik Group reported revenue of HKD 1,338,948, a decrease of 17.7% compared to HKD 1,627,466 for the same period in 2018[4] - Gross profit for the same period increased to HKD 155,022, up from HKD 119,960, representing a growth of 29.4%[4] - The company recorded a net loss of HKD 6,976 for the six months ended June 30, 2019, significantly improved from a net loss of HKD 37,695 in the prior year, marking a reduction of 81.5%[4] - Other income increased to HKD 10,797, compared to HKD 6,238 in the previous year, reflecting a growth of 73.5%[4] - The company reported a significant increase in interest income to HKD 1,228, up from HKD 891, representing a growth of 37.8%[4] - Golik Group's total comprehensive loss for the period was HKD 14,656, compared to HKD 41,884 in the previous year, a decrease of 65.0%[6] - The company reported a net cash inflow from operating activities of HKD 224,835,000 for the six months ended June 30, 2019, compared to a net outflow of HKD 41,614,000 for the same period in 2018[25] - The total comprehensive income for the period was HKD 616,000, reflecting a decrease of HKD 1,575,000 compared to the previous period[20] - The company declared dividends amounting to HKD 11,238,000, which is consistent with the previous year's dividend payments[20] Assets and Liabilities - Total assets as of June 30, 2019, were HKD 1,487,794, down from HKD 1,641,207 as of December 31, 2018, indicating a decrease of 9.3%[8] - Current liabilities decreased to HKD 1,111,575 from HKD 1,198,576, a reduction of 7.3%[10] - The company’s equity attributable to shareholders was HKD 909,024, down from HKD 934,918, a decline of 2.8%[12] - The company’s total assets as of June 30, 2019, were HKD 934,918,000, compared to HKD 985,749,000 at the end of 2018[20] - The company’s equity attributable to shareholders was HKD 512,672,000, down from HKD 537,607,000 at the end of 2018[20] - The company’s total liabilities included lease liabilities of HKD 53,430 as of June 30, 2019[72] - The company’s net current assets were reported at HKD 602,130,000 as of June 30, 2019, down from HKD 654,416,000 as of December 31, 2018[100] - The company’s total assets decreased to HKD 613,951,000 as of June 30, 2019, from HKD 668,526,000 as of December 31, 2018[99] Revenue Breakdown - Revenue from metal products was HKD 555,368 for the first half of 2019, compared to HKD 546,556 in the same period of 2018, showing a slight increase of 1.5%[78] - Revenue from construction materials decreased significantly to HKD 650,630 in 2019 from HKD 904,802 in 2018, reflecting a decline of approximately 28.1%[78] - The group's revenue from Hong Kong was HKD 749,876 in 2019, down from HKD 1,035,283 in 2018, a decrease of about 27.6%[79] - Revenue from mainland China increased slightly to HKD 545,210 in 2019 from HKD 536,446 in 2018, representing a growth of approximately 1.4%[79] - The metal products segment generated revenue of HKD 558,878,000, an increase of 2% year-on-year, with a profit before interest and tax of HKD 36,698,000, up 89%[123] - The construction materials segment reported revenue of HKD 770,316,000, a decrease of 28%, and a loss before interest and tax of HKD 9,831,000[125] Cash Flow and Investments - The company incurred a net cash outflow from investing activities of HKD 13,358,000, compared to HKD 11,903,000 in the prior year[25] - The company’s financing activities resulted in a net cash outflow of HKD 191,589,000, contrasting with a net inflow of HKD 58,313,000 in the previous year[25] - The company purchased property, plant, and equipment amounting to HKD 15,814,000 during the period, a decrease from HKD 23,658,000 in the same period of 2018[97] - The group has committed capital expenditures of HKD 511,000 for property, plant, and equipment as of June 30, 2019, down from HKD 1,622,000 as of December 31, 2018[111] Financial Ratios and Metrics - The company reported a loss per share for the period was HKD 2.44, improved from HKD 7.09 in the same period last year[6] - The group’s current ratio as of June 30, 2019, was 1.34:1, slightly down from 1.37:1 as of December 31, 2018[128] - The net asset to liability ratio as of June 30, 2019, was 0.52:1, improved from 0.67:1 as of December 31, 2018[131] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code, with no significant deviations reported[146] - The board of directors has collectively reviewed the structure and composition of the board to ensure it meets the company's business needs[146] - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the standard code during the six months ending June 30, 2019[154] Employee and Management Insights - The group had a total of 1,559 employees as of June 30, 2019, with compensation based on performance, qualifications, and industry standards[132] - The management expressed confidence in the core business outlook, anticipating significant improvement in overall performance compared to the previous year[133] - The high-end steel wire rope business, including elevator wire ropes, is expected to achieve record benefits this year[133] Shareholder Information - Golik Investments Ltd. held 195,646,500 shares, representing 34.82% of the issued share capital as of June 30, 2019[141] - Following the issuance of new shares under the scrip dividend scheme, Golik Investments Ltd. owned 201,666,392 shares, approximately 35.11% of the issued share capital as of July 31, 2019[143] - The company has adopted a share option scheme since June 5, 2014, which will remain effective until June 4, 2024[139] Miscellaneous - The company expresses gratitude to employees, management, shareholders, clients, banks, and business partners for their contributions and support, aiming for better performance in the second half of the year[157]

Financial Performance - The total revenue for the year ended December 31, 2018, was HKD 3,087,200,000, an increase of approximately 13% compared to the previous year, primarily due to rising steel prices and higher sales prices of steel products[34]. - The company reported a loss attributable to shareholders of HKD 84,782,000 for the year, mainly due to the downturn in the Hong Kong construction industry, which posed significant challenges to the building materials business[34]. - The metal products segment generated revenue of HKD 1,186,369,000, representing a 17% increase year-on-year, although the segment's profit before interest and tax decreased by approximately 32%[36]. - The revenue for the construction materials business was HKD 1,872,798,000, representing an increase of approximately 11% compared to the previous year, primarily due to rising prices of construction steel products[40]. - The group reported a pre-tax loss of HKD 75,470,000 in the construction materials segment, marking a disappointing performance and the first loss in many years[40]. - The company’s performance was adversely affected by the sluggish construction market in Hong Kong, leading to a disappointing financial year[34]. - The company reported a net loss of HKD 80,021 for the year, compared to a profit of HKD 48,889 in the previous year[185]. - Total comprehensive loss for the year amounted to HKD 102,344, a significant decrease from a comprehensive income of HKD 76,866 in 2017[185]. - The company experienced a net loss before tax of HKD 78,195,000 for the year, compared to a profit of HKD 69,168,000 in the previous year[199]. Dividends and Equity - The company plans to declare a final dividend of HKD 0.02 per share, in addition to an interim dividend of HKD 0.01 per share, totaling HKD 0.03 per share for the year[35]. - The company paid dividends totaling HKD 25,287,000 during the year, consistent with the previous year's dividend payments[191]. - The company’s total equity attributable to shareholders was HKD 934,918,000 as of December 31, 2018, down from HKD 1,057,820,000 at the end of 2017[191]. - The company’s retained earnings decreased to HKD 537,607,000 from HKD 651,592,000, indicating a decline in profitability[191]. Assets and Liabilities - Total assets as of December 31, 2018, were HKD 2,206,830,000, while total liabilities were HKD 1,221,081,000, resulting in net assets of HKD 985,749,000[9]. - The total borrowings of the group as of December 31, 2018, amounted to HKD 1,024,098,000, an increase from HKD 848,935,000 as of December 31, 2017[43]. - The net asset to debt ratio was 0.67:1 as of December 31, 2018, compared to 0.42:1 the previous year, indicating a deterioration in financial leverage[43]. - The current ratio of the group as of December 31, 2018, was 1.37:1, down from 1.46:1 the previous year, indicating a slight decline in short-term liquidity[42]. Governance and Compliance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the year ending December 31, 2018[56]. - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure[62]. - The roles of chairman and CEO are currently held by the same individual, Mr. Peng Dezhong, which the board believes provides strong and effective leadership[70]. - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring unbiased oversight[62]. - The company has adopted a code of conduct for directors' securities transactions, adhering to the standards set forth in the listing rules[57]. - The board is collectively responsible for reviewing the structure and composition of the board to ensure it meets the company's needs[56]. - The company has arranged for directors and senior management to have liability insurance, providing additional protection[63]. - The audit committee reviewed the group's financial reports and internal control systems, meeting at least twice a year[82]. - The board is responsible for maintaining an effective internal control and risk management system[88]. Environmental Performance - Total direct and indirect carbon emissions for the fiscal year 2018 amounted to 2,882 tons of CO2 equivalent, a reduction of 17.5% compared to 2017[120]. - The emissions per production unit for direct and indirect carbon emissions (Scope 1 and 2) totaled 0.0115 tons of CO2 equivalent, up from 0.0086 tons in 2017[120]. - Nitrogen oxides (NOx) emissions were recorded at 4.63 tons, a decrease of 10% from the previous year[120]. - Sulfur oxides (SOx) emissions were 11.34 kilograms, down 12.8% compared to last year[120]. - Particulate matter (PM) emissions totaled 333.23 kilograms, reflecting a 10% reduction from 2017[120]. - The company is committed to maintaining high standards of environmental management and continuously improving its environmental performance[119]. - The company has adopted various practices to address environmental issues, including investing in facilities equipped with the latest technology to reduce energy consumption and gas emissions[119]. Community Engagement - The company actively supports community activities and has donated HKD 500,000 to the North District Football Recreation Association, becoming a major sponsor for their football team[109]. - The total charitable donations made by the group during the year amounted to HKD 559,000[144]. Operational Challenges - The company faced significant cost increases in raw materials and environmental fees, which could not be passed on to customers, impacting profit margins[36]. - The construction materials business experienced pressure and challenges, leading to disappointing performance during the year[34]. - The group's construction materials business performance is influenced by the overall operating environment of the construction industry in Hong Kong, amid economic slowdown and commodity price fluctuations in mainland China[89]. - The group closely monitors and implements stringent procurement measures for raw materials and components, as inventory valuation is affected by raw material price volatility[90]. Audit and Financial Reporting - The company’s independent auditor, Deloitte, has issued an unqualified opinion on the consolidated financial statements for the year ended December 31, 2018[158]. - The independent auditor confirmed that the ongoing related party transactions were conducted in the ordinary course of business and on normal commercial terms[154]. - The expected credit loss for trade receivables is identified as a key audit matter due to significant management judgment involved[162]. - The audit identified inventory write-downs as a key audit matter due to significant management judgment involved[167].