Business Environment and Market Performance - In the fiscal year 2024, the company faced a challenging business environment but demonstrated strong resilience, with Macau's GDP growing by 11.5% year-on-year and total visitor numbers increasing by 23.8%[5]. - The total gaming revenue in Macau reached MOP 226.8 billion, recovering to 77.5% of pre-pandemic levels[5]. - The company anticipates increased demand for infrastructure projects, electromechanical engineering, and facility management due to ongoing urban planning and development in Macau[8]. - The company plans to expand its revenue and market share in Macau, Hong Kong, Australia, Cyprus, and Southeast Asia, with a focus on recovering gaming revenue to pre-pandemic levels[48]. - Significant investments in hardware renovations and upgrades are expected from the six major gaming companies in Macau, following a new gaming operating contract signed at the end of 2022[48]. Financial Performance - The group recorded revenue of MOP 1,506.6 million for the year, a slight increase from MOP 1,496.4 million in the previous fiscal year, with steel structure business revenue reaching MOP 1,113.2 million, up 8.0% from MOP 1,030.4 million[13]. - The steel structure business accounted for 73.9% of total revenue, compared to 68.9% in the previous fiscal year[13]. - Construction business revenue decreased by 15.7% to MOP 391.4 million due to a decline in large construction projects initiated by casino operators and integrated resort operators[13]. - The group’s net profit margin for the year was 0.3%, slightly down from 0.4% in the previous fiscal year[13]. - The overall revenue for the group increased by MOP 10.2 million or 0.7%, totaling MOP 1,506,571,000 in FY2024[19]. Strategic Initiatives and Business Development - The company successfully secured contracts for the maintenance of cultural center facilities and the expansion of a cloud computing center, capitalizing on opportunities from the Macau government's economic diversification efforts[6]. - The company expanded its new materials steel structure business to Macau, Hong Kong, and Southeast Asia, leveraging strategic partnerships for green energy and new materials development[7]. - The group established a strategic partnership with Beijing Construction Machinery Institute to focus on green energy and new materials, enhancing market opportunities in Macau, Hong Kong, Singapore, and Australia[15]. - New project contracts valued at approximately MOP 329.5 million were secured, ensuring a solid foundation for continued business growth in 2025[17]. Sustainability and Environmental Initiatives - The group aims to reduce carbon emissions by 30% by 2030 and achieve carbon neutrality by 2050, with a focus on monitoring emissions intensity in relation to business growth[60]. - The company has received ISO 14001:2015 certification for its environmental management system, demonstrating its commitment to sustainable practices[66]. - The company achieved a reduction in nitrogen oxide emissions from 103.02 kg in 2023 to 75.06 kg in 2024, representing a decrease of approximately 27.2%[70]. - The total direct greenhouse gas emissions (Scope 1) decreased from 48.63 tons CO2 equivalent in 2023 to 44.55 tons in 2024, a reduction of about 8.5%[70]. - The company is actively exploring opportunities in sustainable development projects and seeking green solutions to address sustainability challenges[66]. Employee and Workforce Management - The group had 405 employees as of December 31, 2024, compared to 366 employees in the fiscal year 2023, indicating a growth of approximately 10.67%[47]. - The total number of employees increased to 405 in 2024 from 366 in 2023, with a notable rise in full-time employees from 129 to 238[109]. - Employee turnover rate for males rose significantly to 53% in 2024 from 32% in 2023, while for females it remained relatively stable at 46%[109]. - The company has set a target for female representation in the workforce, aiming for 20% on the board, 25% in senior management, and maintaining at least 17% overall[104]. - The company has established a structured recruitment and termination process based on fair assessment criteria, ensuring compliance with local labor laws[106]. Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance and risk management, as evidenced by the expertise of its independent directors[144]. - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a balanced skill set and experience for effective leadership[166]. - The company has adhered to the corporate governance code, maintaining compliance with all relevant standards throughout the year[157]. - The board has established three committees: audit committee, nomination committee, and remuneration committee, to oversee various aspects of the company's affairs[165]. - The company emphasizes a strong corporate culture as a key to achieving sustainable growth and value creation for shareholders and stakeholders[160]. Health and Safety - The company has implemented an ISO 45001:2018 certified occupational health and safety management system to enhance workplace safety[111]. - The company reported a total of 95 workdays lost due to injuries in 2024, with no workdays lost in the Macau engineering sector[118]. - The company has established a safety team to conduct risk assessments and ensure compliance with safety regulations across all projects[111]. - The company has identified extreme weather events as acute physical risks that could threaten employee safety and disrupt operations, implementing measures to mitigate these risks[97]. - The company has implemented measures to mitigate the negative impacts of extreme weather, including securing outdoor equipment and halting hazardous operations during typhoons[98].

Financial Performance - Total revenue for the fiscal year 2024 was MOP 1,506,571,000, a slight increase of 0.8% compared to MOP 1,496,393,000 in 2023[3] - Gross profit decreased to MOP 118,432,000, down 2.1% from MOP 120,948,000 in the previous year[4] - Net profit for the year was MOP 4,091,000, representing a decline of 26.5% from MOP 5,566,000 in 2023[4] - The construction business generated MOP 391,434,000 in revenue for 2024, down from MOP 464,326,000 in 2023, indicating a decline of 15.7%[10] - The electric vehicle segment reported revenue of MOP 1,917,000 in 2024, up from MOP 1,676,000 in 2023, reflecting an increase of 14.4%[10] - The steel structure business saw revenue rise to MOP 1,113,220,000 in 2024, compared to MOP 1,030,391,000 in 2023, marking an increase of 8.0%[12] - The group recorded a revenue of MOP 1,506.6 million for the year 2024, a slight increase from MOP 1,496.4 million in 2023, with steel structure business revenue reaching MOP 1,113.2 million, accounting for 73.9% of total revenue[43] - The group’s construction business revenue decreased by 15.7% to MOP 391.4 million due to a decline in large construction projects initiated by casino operators[43] - The group achieved a total revenue of MOP 1,506.6 million for the fiscal year 2024, reflecting a 0.7% increase from MOP 1,496.4 million in fiscal year 2023[50] Assets and Liabilities - The total value of uncompleted contracts on hand increased to MOP 1,300,154,000, up 18.5% from MOP 1,041,158,000 in the previous year, with construction business contributing MOP 682,074,000 and steel structure business MOP 618,080,000[3] - Total assets decreased to MOP 792,296,000 from MOP 831,377,000, a decline of 4.7%[5] - The total contract assets decreased to MOP 62,065,000 in 2024 from MOP 111,423,000 in 2023, a reduction of 44.2%[20] - The trade receivables from customer contracts totaled MOP 401,582,000, down from MOP 479,486,000 in 2023, with a credit loss provision of MOP 29,413,000[25] - The company’s overdue trade receivables amounted to MOP 304,702,000, an increase from MOP 279,566,000 in the previous fiscal year, with MOP 76,485,000 overdue for more than 90 days[25] - The total trade payables increased to MOP 172,627,000 from MOP 170,422,000 in 2023, with a notable rise in payables due within 90 days[29][30] - The company’s other receivables, deposits, and prepayments totaled MOP 531,813,000, a decrease from MOP 598,556,000 in 2023[25] Profitability and Margins - Basic loss per share was reported at MOP 0.08, compared to a loss of MOP 0.29 in the previous year[4] - The group’s gross profit margin remained stable at approximately 7.9%, with a net profit margin of 0.3% for the year, slightly down from 0.4% in 2023[43] - The gross margin of the steel structure business decreased from 10.0% in FY2023 to 8.1% in FY2024, primarily due to a decline in the average price of rebar[53] - The gross loss in construction and renovation projects improved from 15.8% in FY2023 to 10.1% in FY2024, with a gross loss of 14.4 million MOP (FY2023: 36.4 million MOP)[53] - The gross margin of facility management services decreased from 38.2% in FY2023 to 30.1% in FY2024, attributed to a decrease in project numbers and margins[53] - The electric vehicle segment recorded a gross loss of 2.1 million MOP in FY2024, an improvement from 4.6 million MOP in FY2023[53] Strategic Initiatives and Future Plans - The company plans to continue expanding its electric vehicle services, including charging solutions and battery production[9] - The group is expanding its business into high-value new building materials production technology, with a new production base in Jiangmen, Guangdong, set to commence operations in January 2024[38] - The group has formed a strategic partnership with Beijing Construction Machinery Research Institute to develop and promote green energy and new materials, aiming to enhance production efficiency and market share[38] - The group anticipates increased demand for infrastructure projects and facility management services due to ongoing urban planning and development in the Greater Bay Area[39] - The group is committed to sustainable business models and aims to implement fully automated rebar production lines to capture more orders in China and Southeast Asia[40] - The company plans to expand its revenue and market share in Macau and other target markets, including Hong Kong, Australia, Cyprus, and Southeast Asia, in 2025[73] Governance and Compliance - The company has maintained compliance with corporate governance codes and standards throughout the fiscal year[81] - The audit committee, consisting of three independent non-executive directors, has been established to oversee financial reporting and internal controls[84] - Deloitte has confirmed the financial statements for the year ending December 31, 2024, as approved by the board on March 28, 2025[85] Shareholder Information - The company did not declare any dividends for the fiscal year ending December 31, 2024, consistent with the previous year[35] - The board did not recommend a final dividend for the year ending December 31, 2024[75] - The company issued a total of 266,408,595 2023 warrants to eligible shareholders, with a subscription price adjusted from HKD 1.78 to HKD 1.19 per share[77] - The company repurchased a total of 4,658,000 shares during the year at a total cost of approximately HKD 882,000, enhancing earnings per share for shareholders[83] - The highest repurchase price per share was HKD 0.204, while the lowest was HKD 0.175, indicating a range of price fluctuations during the repurchase period[83] Market Conditions - The company maintained a strong market position in Macau, with a local GDP growth of 11.5% year-on-year and a 23.8% increase in tourist numbers[36] - The Macau government is advancing economic diversification, with the international airport expansion expected to significantly increase annual passenger capacity by 2030[39] - The global smart building market is projected to reach USD 570 billion, prompting the group to respond to national policies by advancing smart manufacturing in new materials[40]

WECOM 澳能建設控股有限公司 MECOM Power and Construction Limited ( 於開曼群島註冊成立的有限公司 ) 股份代號 : 1183 2024 中期報告 目錄 公司資料2 管理層討論及分析4 簡明綜合財務報表審閱報告 13 簡明綜合損益及其他全面收益表 14 簡明綜合財務狀況表 15 簡明綜合權益變動表 16 簡明綜合現金流量表 17 簡明綜合財務報表附註 19 其他資料 37 澳能建設控股有限公司 中期報告 20242 公司資料 澳門總辦事處及主要營業地點 董事會 | --- | --- | |---------------------------------|----------------------------------------| | | | | 執行董事 | 澳門 | | 郭林錫先生 （主席） | 宋玉生廣場 258 號 | | 蘇冠濤先生 （行政總裁兼副主席） | 建興龍廣場 （興海閣、建富閣） | | 獨立非執行董事 | 6 樓 Q.R.S 座 | | 陳寶儀女士 | (Units Q, R and S | | 張翹楚先生 | 6/F, Praça Ki ...

Financial Performance - Revenue decreased by 6.7% to MOP 746.2 million compared to MOP 800.1 million in the same period last year[1] - Gross profit fell by 55.3% to MOP 47.5 million, primarily due to reduced margins in construction and steel structure businesses[1] - Net profit declined by 79.1% to MOP 8.0 million, attributed to lower gross profit and increased administrative expenses from business expansion[1] - Total comprehensive income for the period amounted to MOP 1.5 million, a significant drop from MOP 38.2 million in the same period last year[2] - Basic and diluted earnings per share decreased to MOP 0.17 from MOP 0.81 in the previous year[2] - The pre-tax profit for the six months ended June 30, 2024, was MOP 9,598,000, compared to MOP 48,904,000 for the same period in 2023, showing a significant decrease of approximately 80.4%[11] - The company reported a basic and diluted earnings per share of MOP 1.74 for the six months ended June 30, 2024, down from MOP 8.07 in the same period of 2023, representing a decline of 78.4%[17] - The company recorded a net profit decrease of 30.2 million MOP or 79.1%, with a net profit margin dropping from 4.8% to 1.1%[42] Contract and Project Status - The total value of uncompleted contracts in the construction business increased to MOP 709.8 million from MOP 574.4 million as of December 31, 2023[1] - The total value of uncompleted contracts in the steel structure business rose to MOP 529.6 million from MOP 466.8 million as of December 31, 2023[1] - As of June 30, 2024, the value of unfinished construction and renovation contracts was MOP 709.8 million, up from MOP 574.4 million at the end of 2023[30] - The company secured approximately 116,187 tons of orders for various steel materials, contributing MOP 554.9 million to revenue[32] Revenue Breakdown - The electric vehicle business generated revenue of MOP 1,452,000 for the six months ended June 30, 2024, compared to MOP 1,186,000 in the same period of 2023, indicating an increase of 22.5%[11] - The steel structure business reported revenue of MOP 554,866,000 for the six months ended June 30, 2024, slightly down from MOP 536,036,000 in the previous year, reflecting an increase of 3.4%[11] - The company's revenue from external customers in Macau and China was MOP 587,798,000 for the six months ended June 30, 2024, compared to MOP 748,864,000 in the same period of 2023, representing a decrease of approximately 21.5%[14] - Construction and renovation engineering revenue dropped by 88.0 million MOP or 57.9% due to a reduction in large construction projects from casino operators[36] - The steel structure business revenue increased by 18.8 million MOP or 3.5%, contributing 554.9 million MOP to total revenue, with a delivery of approximately 108,842 tons of steel materials[37] Assets and Liabilities - Current assets increased to MOP 858.7 million from MOP 831.4 million, while current liabilities slightly decreased to MOP 573.4 million from MOP 576.1 million[3] - The net asset value remained stable at MOP 481.6 million compared to MOP 480.0 million as of December 31, 2023[3] - The total contract assets as of June 30, 2024, were MOP 87,222,000, a decrease from MOP 111,423,000 as of December 31, 2023, indicating a decline of approximately 21.7%[18] - Trade receivables, net of credit loss provisions, were MOP 379,622,000 as of June 30, 2024, down from MOP 445,906,000 as of December 31, 2023, representing a decrease of 14.8%[21] - The total trade payables as of June 30, 2024, were MOP 354,088,000, an increase of 19.5% from MOP 295,957,000 on December 31, 2023[23] Operational Developments - The company has established new production and R&D facilities in Jiangmen, Guangdong Province, China, which are reflected in the prepaid amounts[21] - The company is involved in high-pressure substation construction and civil engineering, focusing on complex construction projects[27] - The company provides electric vehicle-related services and steel structure business, including sales and processing of new material steel structures[27] - The electric vehicle business includes charging services, distribution, and manufacturing of electric vehicle charging systems and batteries[29] - The group plans to expand its steel structure business into Hong Kong and Southeast Asia, leveraging its production facility in Jiangmen to enhance market share[53] - The group aims to grow its electric vehicle business, particularly in the casino and resort sectors, by establishing rental charging stations to improve profitability[53] Governance and Compliance - The group has no significant contingent liabilities as of June 30, 2024, maintaining a stable financial position[50] - The group has no major investments or acquisitions planned for the future, focusing on existing operations[46] - The group is committed to maintaining good corporate governance practices to protect shareholder interests and enhance transparency[54] - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors during the period[55] - The audit committee, consisting of three independent non-executive directors, has been established to oversee financial reporting and internal controls[56] - The external auditor has reviewed the group's accounting principles and the condensed consolidated financial statements for the six months ending June 30, 2024[57] Shareholder Information - The company has not declared dividends for the two reporting periods[26] - No interim dividend has been recommended by the board for the period[55] - A total of 266,408,595 new bonus warrants were issued to eligible shareholders, with an initial subscription price adjusted from HKD 1.78 to HKD 1.19 per share[55] - 60,012 warrants have been exercised, with all unexercised warrants expiring on May 24, 2024[55] - The board expressed gratitude for the support from shareholders, business partners, and professionals during the period[58]

New Energy and Electric Vehicles - The company plans to expand its new energy business and accelerate its layout in the Southeast Asian market, focusing on electric vehicle and charging system sales[4]. - The company has established a strategic partnership with Wuling Motors Group, becoming the exclusive distributor for several electric motorcycles and logistics vehicles in Hong Kong and Macau, with sales expected to grow significantly in 2024[31]. - The company anticipates steady revenue growth from its charging systems starting in 2024, aiming for breakeven in 2025 and profitability in 2026[31]. - The company has initiated the installation of electric vehicle charging stations in Macau and China, contributing to the growing demand for electric vehicles[7][8]. - The company is actively planning to expand its electric bicycle battery swapping system business into the Southeast Asian market[87]. - The electric vehicle business generated revenue of MOP 1.7 million, maintaining a 0.1% contribution to total revenue[83]. - The electric vehicle segment reported a gross loss of 4.6 million MOP in FY2023, up from 2.3 million MOP in FY2022, with material and installation costs for charging facilities and lithium iron phosphate battery cabinets amounting to approximately 2.589 million MOP[95]. - The group plans to expand its electric vehicle charging services, having signed contracts for multiple projects in Macau and Guangdong Province[76]. - The company expanded its electric vehicle business and charging infrastructure in Macao and Guangdong Province, aiming to enhance energy efficiency and contribute to a net-zero future[183]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified 14 key environmental, social, and governance (ESG) themes, including greenhouse gas emissions and employee development, to guide its sustainability efforts[21]. - The company emphasizes compliance with environmental regulations and has implemented measures to ensure adherence to local laws regarding environmental protection and noise pollution[29][26]. - The company has obtained ISO 14001:2015 certification for its environmental management system, demonstrating its commitment to sustainable practices[36]. - The company is actively exploring opportunities in sustainable development projects and seeking green solutions to address sustainability challenges[36]. - The group aims to incorporate "low carbon" into its investment strategy by 2025 and ensure emissions intensity aligns with business growth[150]. - The group will monitor paper consumption intensity and ensure it correlates with business growth by 2025[150]. - The group is committed to energy efficiency in procurement criteria for electronic equipment by 2025[150]. - The company has adopted proactive management policies to assess climate change risks and mitigate their impact on operations[182]. - The company has invested in climate-related projects to support a low-emission future[183]. - The company emphasizes the importance of environmental performance management and has established a system for assessing and improving its environmental impact[187]. Financial Performance - The group's revenue increased by 11.5% to MOP 1,496.4 million in the fiscal year 2023, up from MOP 1,341.9 million in 2022[62]. - Revenue from the steel structure business reached MOP 1,030.4 million, accounting for 68.9% of total revenue, compared to 45.9% in the previous fiscal year[62]. - The gross profit margin for the steel structure business improved significantly to 10.0%, up from 6.6% in the previous year, while the overall gross profit margin decreased to 8.1% from 10.5%[70]. - The group reported a net profit margin of only 0.4% for fiscal year 2023, down from 6.8% in 2022, primarily due to increased interest expenses and a trade receivable impairment loss of MOP 25.0 million[70]. - The group's annual profit decreased by MOP 86.1 million or 93.9%, with the net profit margin dropping from 6.8% in FY2022 to 0.4% in FY2023[152]. Construction and Infrastructure Development - The company has completed the first phase of its steel structure production base in Jiangmen, Guangdong, which will officially commence operations in January 2024, expanding its business from sales to production and manufacturing[38]. - The company plans to focus on entering the Hong Kong and overseas markets in 2024, aiming to increase the profitability of its steel structure business[38]. - The Macau government aims to improve local housing issues and will continue to implement the "ladder housing policy" while promoting major public works in 2024, which aligns with the company's infrastructure and engineering business development[39]. - The company aims to enhance its revenue and profit from construction, renovation, and mechanical engineering projects in 2024[39]. - The group secured new contracts valued at approximately MOP 191.8 million for various construction and maintenance projects, including structural engineering for a comprehensive resort and HVAC systems for public housing[74]. - The construction business will focus on participating in government infrastructure projects and renovations for major gaming companies, expecting stable development[135]. - The group anticipates a significant increase in demand for renovation and construction projects due to over MOP 1 billion in non-gaming investment commitments from six major gaming companies[129]. - The group expects to see more business opportunities from ongoing infrastructure projects in Macau and Hong Kong in 2024[130]. Human Resources and Employee Management - The number of employees increased to 366 as of December 31, 2023, compared to 281 in the previous fiscal year[128]. - The company has established a structured recruitment and termination process based on fair assessment criteria to attract and retain qualified talent[169]. - The company has implemented a comprehensive evaluation mechanism for employee performance to determine promotions and compensation[180]. - The percentage of trained employees in 2023 was 83% for males and 17% for females, compared to 75% and 25% in 2022 respectively[190]. - The average training hours per employee increased for males to 26.7 hours from 25.7 hours in 2022, and for females to 34.0 hours from 27.0 hours[190]. - The company reported no direct employee fatalities over the past three years, maintaining a strong safety record[195]. - The company has implemented measures to promote gender diversity in recruitment and aims to maintain current female representation levels[186]. - The board of directors comprised 20% female members, with 25% in senior management roles, and 16% of the total workforce being female[186]. - Employee turnover rate for males decreased from 38% in 2022 to 32% in 2023, while for females it increased from 15% to 45%[177]. Strategic Partnerships and Collaborations - A strategic cooperation agreement was signed with Zhongnan Steel Group to enhance support for project orders in the Hong Kong and Macau regions and to develop the green building market in Belt and Road countries[65]. - Aoneng International has entered into a collaboration with Tongji University to establish a research center aimed at improving product technology and market uniqueness in prefabricated construction materials[71]. - The group is deepening technical cooperation with Tongji University to meet market demands for assembly construction methods[135]. Operational and Capital Management - The group has made capital commitments of approximately MOP 63.87 million for the construction of new production and R&D facilities in Jiangmen, Guangdong Province[127]. - The group's outstanding bank borrowings as of December 31, 2023, were 267.2 million MOP, up from 90.6 million MOP in FY2022, with unused credit facilities of 120.5 million MOP[105]. - The group's capital debt ratio was 55.7% as of December 31, 2023, compared to 18.8% in FY2022[105]. - The group has pledged bank deposits of MOP 24.8 million and land leases of MOP 48.0 million as collateral for credit financing[120]. - The group has entered into foreign exchange hedging contracts totaling HKD 120 million and HKD 100 million to mitigate currency risk from RMB to HKD[112].

Financial Performance - The group's total revenue for the year reached 102,058 thousand MOP, a significant increase compared to the previous year's performance[1] - The pre-tax profit for the year was reported at 102,537 thousand MOP, indicating strong operational efficiency[3] - The group's revenue increased by 11.5% to MOP 1,496.4 million in 2023, up from MOP 1,341.9 million in 2022[44] - Total revenue for the year 2023 was MOP 1,496,393,000, an increase from MOP 1,341,916,000 in 2022, representing a growth of approximately 11.5%[124] - Revenue from the steel structure business reached MOP 1,030.4 million, accounting for 68.9% of total revenue, compared to 45.9% in the previous year[44] - The construction business generated revenue of MOP 464,326,000 in 2023, down from MOP 724,576,000 in 2022, reflecting a decline of about 36%[124] - The electric vehicle business reported revenue of MOP 1,676,000 in 2023, compared to MOP 1,219,000 in 2022, marking an increase of approximately 37.5%[124] - The steel structure business achieved revenue of MOP 1,030,391,000 in 2023, up from MOP 616,121,000 in 2022, indicating a significant growth of around 67%[124] Profitability and Margins - The overall gross profit margin decreased by 2.4 percentage points from 10.5% in FY2022 to 8.1% in FY2023, despite the steel structure business's gross margin increasing to 10.0% from 6.6%[1] - The net profit margin fell significantly from 6.8% in FY2022 to 0.4% in FY2023, reflecting a decrease in net profit of 86.1 million MOP or 93.9%[61] - Gross profit decreased by 13.9% to MOP 120.9 million, primarily due to a decline in gross margin from construction and renovation services[103] - The company recorded a net loss attributable to the company’s owners for the year of MOP 11,585,000, compared to a profit of MOP 81,344,000 in the previous year[115] Liquidity and Financial Position - The net current assets as of December 31, 2023, were 255.3 million MOP, down from 356.3 million MOP in the previous year, reflecting a decrease in liquidity[22] - The company’s liquidity ratio was reported at 1.4 times for 2023, down from 1.7 times in 2022, suggesting a tighter liquidity position[22] - The cash and bank balances decreased to 57.6 million MOP from 74.8 million MOP in FY2022, indicating a tighter liquidity position[54] - The company’s bank borrowings increased to 267.2 million MOP from 90.6 million MOP in FY2022, resulting in higher interest expenses[54] - The capital debt ratio increased significantly to 55.7% from 18.8% in FY2022, indicating a higher leverage position[54] Business Expansion and Strategy - The company plans to expand its steel structure business into Hong Kong and overseas markets in 2024, aiming to increase its market share and profitability[29] - The company has completed the first phase of its production base in Jiangmen, Guangdong, which is set to commence operations in January 2024, enhancing its production capabilities[29] - The company plans to expand its electric bicycle battery swapping system business into the Southeast Asian market, complementing the sales of Wuling electric bicycles[98] - The company plans to continue expanding its electric vehicle services, including charging solutions and battery production[118] - The company aims to expand its new energy business, particularly in electric vehicles and charging systems, capitalizing on increasing global environmental awareness and government support[165] Project and Contract Management - The company’s contract assets amounted to 111,423 thousand MOP in 2023, up from 84,312 thousand MOP in 2022, indicating growth in project backlog[10] - The group has secured several large construction and renovation projects, with a total contract value of approximately MOP 191.8 million[47] - As of December 31, 2023, the value of uncompleted construction and renovation contracts was 574.4 million MOP, down from 742.9 million MOP in FY2022[1] - The total value of uncompleted contracts in the construction and steel structure businesses was MOP 574.4 million and MOP 466.8 million, respectively[103] Employee and Governance - The group’s employee count increased to 405 as of December 31, 2023, up from 281 in the previous fiscal year[159] - The company has been compliant with the corporate governance code throughout the year, ensuring transparency and accountability[179] - The audit committee has reviewed the group’s consolidated financial statements, including accounting principles and risk management systems[194] Future Outlook - The company expects significant business opportunities in 2024 due to ongoing infrastructure projects in Macau and Hong Kong, which will enhance its participation and contribution[167] - The group anticipates a significant increase in demand for renovation and construction projects due to over 1,000 billion MOP investment commitments from major gaming companies[161] - The company plans to focus on participating in government infrastructure projects and renovations for major gaming companies, expecting stable growth in its construction business[161]

Financial Performance - The group's revenue increased by 35.1% year-on-year to MOP 800.1 million, driven by construction and steel structure businesses contributing MOP 262.9 million and MOP 536.0 million respectively[7]. - The gross profit margin for the period was 13.3%, stable compared to the previous period's 12.3%[7]. - The net profit margin decreased by 4.3 percentage points to 4.8% due to increased interest expenses from bank loans and a foreign exchange loss of MOP 9.7 million[7]. - The gross profit for the group increased by 45.9% to MOP 106.2 million, with a slight increase in gross profit margin to 13.3%[17]. - The group's profit for the period decreased by 15.8 million MOP or 29.3%, with a net profit margin dropping from 9.1% to 4.8%[169]. - The group recognized a loss of 9.7 million MOP from the fair value changes of foreign exchange forward contracts due to the depreciation of RMB against HKD[167]. Business Segments - The total revenue for the construction business was MOP 262.9 million, a decrease of 32.9% compared to MOP 382.5 million in the same period last year[36]. - The steel structure business revenue increased by 156.1% to MOP 536.0 million, with approximately 92,452 tons of steel delivered during the period[16]. - The steel structure business generated MOP 536.0 million, representing 67.0% of total revenue, an increase of 35.3% from MOP 209.3 million in the previous year[36]. - The electric vehicle business reported revenue of MOP 1.2 million, a slight increase from MOP 0.4 million, maintaining a 0.1% share of total revenue[36]. - The electric vehicle business segment recorded a gross loss of 1.4 million Macanese Patacas during the period[50]. Contracts and Projects - The total value of uncompleted contracts for construction and steel structure businesses was MOP 765.8 million and MOP 550.4 million respectively as of June 30, 2023[7]. - The company secured several large construction projects with a total contract value of approximately MOP 176.5 million during the period[33]. - The construction and renovation projects include significant contracts for public housing and infrastructure, aligning with the government's accelerated construction plans[42]. Investments and Partnerships - A memorandum of understanding was signed with Guodian Investment for a three-year partnership in energy management and electric vehicle business, expected to accelerate development in this area[15]. - The group is collaborating with Tongji University to establish a research center for prefabricated construction technology to enhance competitiveness in the steel structure business[9]. - The company is expanding its electric vehicle business, having signed a distribution agreement with Liuzhou Wuling Motors Industry Co., covering multiple regions including Hong Kong and Southeast Asia[45]. Financial Position - As of June 30, 2023, the company's trade payables amounted to MOP 183,891,000, a decrease of 18.7% from MOP 226,241,000 as of December 31, 2022[85]. - The company reported bank loans of MOP 229,811,000 as of June 30, 2023, compared to MOP 90,640,000 as of December 31, 2022, indicating a significant increase[87]. - The group’s capital debt ratio was 44.1% as of June 30, 2023, compared to 18.8% as of December 31, 2022[190]. - The group's outstanding bank loans as of June 30, 2023, amounted to 229.8 million MOP, an increase from 90.6 million MOP as of December 31, 2022[190]. Employee and Management - The total short-term employee benefits for key management personnel was MOP 7,047,000 for the six months ended June 30, 2023, slightly up from MOP 7,039,000 for the same period in 2022[98]. - The company has 295 employees as of June 30, 2023, an increase from 281 employees on December 31, 2022[199]. Future Outlook - The company aims to leverage the recovery of economic activities post-COVID-19 to enhance its market position in both the steel structure and electric vehicle sectors[41]. - The company is actively seeking new business opportunities to enhance market share and competitiveness in integrated resort construction and management[200]. - The company anticipates that the unutilized net proceeds will be fully utilized by December 31, 2023[196]. Compliance and Governance - The audit committee has reviewed the accounting principles and practices adopted by the group for the six months ending June 30, 2023[143]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[150]. - The group’s management confirmed compliance with the standards set forth in the Securities Trading Code during the reporting period[105].

Revenue and Profitability - Revenue increased by 35.1% to MOP 800.1 million compared to MOP 592.2 million in the previous period[2] - The company reported a total comprehensive income of MOP 38.2 million, down from MOP 54.0 million in the previous period[21] - The gross profit margin for the period was 13.3%, up from 12.3% in the previous period, while the net profit margin decreased to 4.8% from 9.1% due to increased sales and administrative expenses[62] - The group’s profit decreased by 15.8 million MOP or 29.3%, with a net profit margin dropping from 9.1% in the previous period to 4.8%[85] - Basic and diluted earnings per share were MOP 0.81, down from MOP 1.29 in the previous period[21] Business Segments Performance - The construction business generated revenue of MOP 262,921,000, down 29.5% from MOP 382,499,000 in the previous year[27] - The electric vehicle business reported revenue of MOP 93,000, a significant decrease of 62% compared to MOP 245,000 in the prior year[25] - The steel structure business achieved revenue of MOP 1,186,000, up from MOP 357,000, marking a 232.5% increase year-over-year[25] - The construction business reported a segment profit of MOP 36,125,000, down from MOP 54,121,000 in the previous year, a decrease of 33.2%[27] - The electric vehicle segment recorded a gross loss of MOP 1.4 million, with costs related to installation of charging facilities amounting to approximately MOP 393,000[76] Assets and Liabilities - Current assets included inventory of MOP 89.3 million and contract assets of MOP 156.2 million as of June 30, 2023[5] - Total assets less current liabilities amounted to MOP 564.5 million, an increase from MOP 483.4 million[8] - The company’s contract assets amounted to MOP 156,207,000 as of June 30, 2023, compared to MOP 84,312,000 at the end of 2022, representing an 85.1% increase[35] - The group’s total liabilities as of June 30, 2023, were MOP 341,744,000, down from MOP 403,095,000 as of December 31, 2022, reflecting a reduction of approximately 15.2%[45] - The group’s trade payables as of June 30, 2023, totaled MOP 183,891,000, down from MOP 226,241,000 as of December 31, 2022, indicating a decrease of approximately 18.7%[45] Cash Flow and Financing - The total cash and bank balance as of June 30, 2023, was 31.7 million MOP, down from 74.8 million MOP on December 31, 2022[87] - The group's outstanding bank borrowings as of June 30, 2023, amounted to 229.8 million MOP, an increase from 90.6 million MOP on December 31, 2022[87] - The capital debt ratio as of June 30, 2023, was 44.1%, significantly up from 18.8% on December 31, 2022[87] - The net proceeds from the global offering amounted to 261.6 million HKD (approximately 269.4 million MOP) after deducting underwriting fees and related expenses[92] Strategic Initiatives and Future Outlook - The group secured several large construction and renovation projects with a total contract value of approximately MOP 176.5 million during the period[65] - The investment in the production plant in Jiangmen, Guangdong, has been completed, which will accelerate the expansion of the steel structure business to meet the growing demand in local, Hong Kong, and Southeast Asian markets[66] - The group plans to leverage technological research advantages to quickly capture the market for new building materials in response to the rapid demand growth for prefabricated construction materials[66] - The group anticipates increased demand for construction services and prefabricated steel materials in Hong Kong and Southeast Asia, supported by government policies promoting the high-quality development of the new energy vehicle industry[103] - The company plans to leverage its experience in integrated resort construction and facility management to explore new business opportunities and enhance market share and competitiveness[101] Shareholder and Governance Matters - As of June 30, 2023, the board proposed a bonus share issuance of 1,332,083,725 new shares to existing shareholders based on a ratio of one bonus share for every two shares held, completed on June 29, 2023[107] - The company has established an audit committee to provide independent oversight of financial reporting, internal controls, and risk management systems[117] - The group’s financial statements for the six months ending June 30, 2023, have been reviewed by the audit committee and external auditors, Deloitte[118] - The company has not proposed an interim dividend for the period[112]

Financial Performance - The company's overall gross profit margin decreased from 19.0% in 2021 to 10.5% in 2022, primarily due to increased costs related to employees and procurement transportation caused by the COVID-19 pandemic[9][18] - The company's net profit margin dropped from 13.9% in 2021 to 6.8% in 2022, mainly due to increased administrative expenses and interest expenses from bank loans[10] - Net current assets of the group amounted to MOP 356.3 million as of December 31, 2022, compared to MOP 386.5 million in the previous fiscal year[24] - The group's equity and capital stood at MOP 483.4 million and MOP 27.4 million respectively as of December 31, 2022, up from MOP 447.5 million and MOP 18.4 million in 2021[25] - The group has utilized MOP 102.8 million of the net proceeds for providing performance guarantees as of the reporting date[30] - The group held MOP 34.4 million in pledged bank deposits as collateral for credit facilities as of December 31, 2022, up from MOP 31.2 million in 2021[31] - The group's outstanding bank borrowings stood at MOP 90.6 million as of December 31, 2022, with unused credit facilities of MOP 187.1 million[52] - The group's capital gearing ratio (total debt divided by total equity) was 18.8% as of December 31, 2022, compared to zero in 2021[52] - The group's net proceeds from the global offering amounted to HK$261.6 million (approximately MOP 269.4 million) after deducting underwriting fees, commissions, and related expenses[54] - The net proceeds from fundraising are expected to be fully utilized by December 31, 2023, due to delays in project approvals and permits since 2018, which resumed normalcy in the second half of 2019[55] Business Segments and Revenue - The steel structure business contributed MOP 616.1 million in revenue, accounting for 45.9% of the total revenue, becoming the second largest revenue source after the construction business[12][16] - The company delivered approximately 93,869 tons of steel materials, including rebar, sheet piles, and galvanized sheets, generating MOP 616.1 million in revenue[12][17] - The company's construction business revenue decreased from MOP 911.9 million in 2021 to MOP 724.6 million in 2022, with the construction and decoration engineering segment contributing MOP 448.2 million, accounting for 33.4% of total revenue[16] - The company's electric vehicle business revenue increased from MOP 75,000 in 2021 to MOP 1.2 million in 2022, but still only accounted for 0.1% of total revenue[16] - The company signed memorandums with GSS Energy Limited and Coastal Contracts Bhd. in February 2023 to expand its electric vehicle business in Southeast Asia[14] - The company plans to install 2,500 to 3,500 charging stations (including 75,000 to 105,000 sets of lithium iron phosphate batteries) in Guangdong Province, involving an investment of approximately RMB 200 million[15] - The company's new production base in Jiangmen, Guangdong Province is expected to be operational in the third quarter of 2023, expanding its business scope to include production and manufacturing[4] - The company secured orders for 183,347 tons of steel materials from April 2022 to August 2024, with a total value of MOP 616.1 million[12] - Capital commitment for the construction of a new production and R&D facility in Jiangmen, Guangdong Province, China amounted to approximately MOP 146.2 million as of December 31, 2022[33] Environmental, Social, and Governance (ESG) - The company is focusing on environmental, social, and governance (ESG) goals, including reducing carbon emissions and improving energy efficiency by 2025[78] - The company has established a three-tier management framework to integrate sustainability into its value chain, overseen by the Board of Directors[76] - The company is closely monitoring compliance with environmental regulations, including noise pollution control and water conservation[82] - The company has identified 14 key ESG themes, including greenhouse gas emissions, waste management, and employee development, aligning with stakeholder concerns and industry trends[81] - The company is committed to enhancing stakeholder engagement and creating value for the broader community through its products and services[79] - The company's ESG report has been reviewed by the ESG working group and approved by the Board of Directors, ensuring compliance with reporting guidelines[81] - Direct Scope 1 greenhouse gas emissions decreased to 38.71 tons of CO2 equivalent in 2022 from 45.44 tons in 2021[85] - Direct Scope 1 greenhouse gas emission intensity improved to 0.00003 tons of CO2 equivalent per thousand MOP of revenue in 2022 from 0.00005 in 2021[85] - Indirect Scope 2 greenhouse gas emissions slightly decreased to 23.93 tons of CO2 equivalent in 2022 from 24.44 tons in 2021[85] - Indirect Scope 2 greenhouse gas emission intensity improved to 0.00002 tons of CO2 equivalent per thousand MOP of revenue in 2022 from 0.00003 in 2021[85] - The company's greenhouse gas emissions mainly come from vehicle usage and office electricity consumption[106] - The company implemented dust control measures including covering construction materials, water spraying, and weekly dust inspections[106] - The company encourages subcontractors to use low-sulfur diesel vehicles and conducts regular inspections to ensure compliance with emission standards[106] - The company is transitioning to a paperless work environment through digital operations and encourages double-sided printing and recycled paper usage[109] - The company strictly controls potential hazardous waste from subcontractors and conducts regular pH tests on wastewater[110] - Electricity consumption increased due to the conversion of warehouses into temporary staff dormitories during COVID-19 restrictions[110] - Gasoline consumption decreased to 16,401 liters in 2022 from 19,252 liters in 2021, with gasoline intensity dropping to 0.0123 liters per thousand MOP revenue from 0.0211 liters[130] - Electricity consumption increased to 38,589 kWh in 2022 from 29,802 kWh in 2021, while electricity intensity decreased to 0.0290 kWh per thousand MOP revenue from 0.0327 kWh[130] - Paper waste reduced to 3.41 tons in 2022 from 4.25 tons in 2021[129] - Nitrogen oxide emissions increased slightly to 97.48 kg in 2022 from 95.80 kg in 2021, while sulfur dioxide emissions decreased to 0.24 kg from 0.28 kg[125] - The company promotes the use of energy-efficient appliances, such as LED lighting systems with a Grade 1 energy label[112] - The company has implemented an ISO 14001:2015 certified environmental management system to minimize environmental impact[116] - The company encourages subcontractors to adopt energy-saving policies and use energy-efficient equipment[113] - The company actively monitors subcontractors' environmental performance and conducts carbon emission reviews and environmental impact assessments[126] - The company avoids using ozone-depleting refrigerants like HCFC and promotes the use of environmentally friendly alternatives[128] - The company has implemented energy-saving and water-saving systems, such as energy-efficient motors and multi-speed fans for ventilation systems, water-cooled heat dissipation systems, and condensate collection systems, contributing to global climate change mitigation efforts[132] - The company has established a comprehensive environmental management system, conducting regular environmental assessments to identify potential risks and ensure compliance with legal requirements and contractual obligations[135] - The company has adopted a forward-looking management approach to assess climate change risks and has developed emergency response plans to mitigate the impact of climate-related hazards on its products, services, and operations[136] Human Resources and Employee Management - The group had 281 employees as of December 31, 2022, including 104 Macau residents and 177 non-Macau residents, compared to 295 employees in 2021[34] - In 2022, women accounted for 20% of the board members, 25% of senior management, and 16% of the total workforce, with the company aiming to maintain or increase the current level of female representation[139] - The company has 281 employees, with 235 males and 46 females, and a turnover rate of 38% for males and 15% for females[143] - The company has established a structured recruitment and termination process, ensuring fair evaluation based on interview performance, relevant experience, and academic and professional qualifications[152] - The company has implemented a comprehensive performance evaluation mechanism to determine promotions and compensation based on employees' goal achievement, strengths, and development opportunities[153] - The average training hours completed per employee were 25.7 hours for males and 27.0 hours for females[173] - The company sponsors academic awards and scholarships for 10 outstanding graduates annually, providing MOP 10,000 per recipient[168] - The company collaborated with the University of Macau to develop an intelligent crawling robot platform aimed at improving window cleaning efficiency and safety[169] - The company maintains a certified Occupational Health and Safety Management System under OHSAS 18001:2007[157] - The company has no record of employee fatalities due to work-related incidents in the past three years[160] - The company provides personal protective equipment to construction workers to minimize the risk of workplace injuries and occupational diseases[158] - The company recorded 92 days of lost workdays due to workplace injuries in 2022[160] Corporate Governance and Compliance - The company has no significant contingent liabilities as of December 31, 2022 (2021: none)[56] - The company strictly adheres to local laws and regulations regarding personal data protection and intellectual property rights[178] - No serious violations of service quality or data privacy laws and regulations in Macau were reported during the year[179] - The company maintains a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, with an internal control system to monitor key business activities[181] - Employees are prohibited from having financial or personal interests in transactions between the company and its business partners to prevent conflicts of interest[182] - The company actively engages in community work and encourages employee participation in volunteer services to support underprivileged groups[183] - The company’s Chairman, Mr. Kwok, has over 40 years of experience in the construction industry and founded Hung Yip Engineering in 2000[185] - The company’s CFO and Company Secretary, Ms. Tam, has over 19 years of experience in accounting and auditing, joining the company in 2017[192] - The company’s Board of Directors is committed to maintaining good corporate governance practices to protect shareholder interests and enhance transparency[195] - The board is responsible for overseeing and monitoring the management of business matters and the overall performance of the group[200] - The board has established three committees to oversee various aspects of the company: the Audit Committee, the Nomination Committee, and the Remuneration Committee[200] - The board is responsible for formulating, reviewing, and monitoring the corporate governance policies and practices of the company[199] - The board reviews and monitors the training and continuous professional development of directors and senior management[199] - The board reviews and monitors the company's policies and practices in compliance with laws and regulatory requirements[199] - The board formulates, reviews, and monitors the code of conduct and compliance manuals for employees and directors[199] - The board reviews the company's compliance with the Corporate Governance Code and the relevant disclosures in the annual report[199] - The board is responsible for making all major financial and operational decisions[200] - The board formulates, monitors, and reviews the corporate governance of the group[200] - The board handles shareholder concerns at the general meeting[200] Supply Chain and Quality Management - The company has 85 subcontractors and 47 suppliers in Macau, 4 subcontractors and 20 suppliers in Hong Kong, and 1 subcontractor and 29 suppliers in Mainland China[176] - The company requires all suppliers and subcontractors to operate in an environmentally responsible manner to reduce pollution and waste[162] - The company has implemented strict quality control measures for suppliers and subcontractors, including regular on-site inspections[175] - The company has established a quality management system certified by ISO 9001:2015 to ensure service quality and compliance with relevant standards and regulations[178] - No complaints related to product or service safety and health issues were received during the year[178] Electric Vehicle and Charging Infrastructure - The company's lithium iron phosphate sheet batteries have passed comprehensive safety tests and are fully insured by a renowned Chinese insurance company, with discharge capacity exceeding 90% at -20°C compared to 70% for standard batteries[37] - China's new energy passenger vehicle retail sales reached 5.674 million units in 2022, a year-on-year increase of 90.0%, with projected sales of 8.5 million units in 2023 and a penetration rate of 36%[60] - The company has strategically developed electric vehicle charging infrastructure in the Greater Bay Area, positioning itself to benefit from the explosive growth in demand for charging stations[60] - The company has expanded its electric vehicle charging infrastructure in Macau and Guangdong Province, including the installation of charging cabinets with lithium iron phosphate batteries, primarily serving delivery riders[149]

Financial Performance - The group generated revenue of MOP 616.1 million from new business segments, accounting for 45.9% of total revenue for the fiscal year 2022[2] - The total comprehensive income for the year was MOP 75.98 million, down from MOP 126.84 million in the previous year[5] - The gross profit margin decreased to 10.5% in 2022 from 19.0% in 2021, with net profit of MOP 91.67 million compared to MOP 126.47 million in 2021[16] - Basic and diluted earnings per share were both MOP 3.05, a decrease from MOP 4.72 in the previous year[5] - Total revenue for the year ended December 31, 2022, was MOP 1,341,916, a decrease from MOP 1,341,982 in 2021[59] - The profit before tax for the year was MOP 102,537, compared to MOP 144,504 in 2021, indicating a decline in profitability[59] - The company’s net profit decreased by 34.8 million Macanese Patacas or 27.5%, resulting in a net profit margin decline from 13.9% in 2021 to 6.8% in 2022[130] Revenue Breakdown - The construction business generated total revenue of 724,576 thousand Macanese Patacas in 2022, down 20.5% from 911,907 thousand Macanese Patacas in 2021[1] - The electric vehicle business saw significant growth, with sales of electric vehicle charging systems reaching 677 thousand Macanese Patacas in 2022, compared to only 46 thousand Macanese Patacas in 2021[1] - The steel structure business reported revenue of 1,341,916 thousand Macanese Patacas in 2022, an increase of 47% from 911,982 thousand Macanese Patacas in 2021[1] - Revenue from external customers in Macau was 1,205,124 thousand Macanese Patacas in 2022, up 32.1% from 911,954 thousand Macanese Patacas in 2021[1] Assets and Liabilities - The group reported cash and bank balances of MOP 74.8 million, down from MOP 224.8 million in the previous year[3] - The net asset value increased to MOP 483.4 million from MOP 447.5 million in the previous year[25] - The group’s trade receivables amounted to 557,734 thousand Macanese Patacas in 2022, compared to 234,763 thousand Macanese Patacas in 2021, indicating a significant increase in receivables[1] - The group reported overdue trade receivables of 246,004 thousand Macanese Patacas as of December 31, 2022, compared to 28,160 thousand Macanese Patacas in 2021[1] - The company reported a total of MOP 403,095 in trade and other payables for 2022, significantly higher than MOP 209,332 in 2021[70] Business Expansion and Diversification - The group diversified its operations into the steel structure business, involving metal material sales and processing[28] - The group has formed strategic partnerships with multiple listed automotive companies to develop electric vehicle businesses in Singapore, Thailand, Indonesia, and Malaysia[76] - The group is expanding its electric vehicle business, which includes providing charging services and manufacturing battery packs[90] - The company plans to expand its operations with a new production base in Jiangmen, Guangdong, expected to commence production in Q3 2023, enhancing its capabilities in construction and electric vehicle sectors[75] - The group plans to install approximately 2,500 to 3,500 charging stations in Guangdong Province, involving an investment of around 200 million RMB[99] Shareholder Actions - The board proposed a bonus issue of shares at a ratio of one new share for every two existing shares held, and a warrant issue at a ratio of one warrant for every ten existing shares held[3] - The board proposed a bonus share issuance of one new share for every two existing shares held, pending necessary approvals, with expected distribution around June 29, 2023[146] - The company plans to issue 2024 bonus warrants, with eligibility based on holding ten shares to receive one warrant, pending approval from the Stock Exchange[177] - The company repurchased 9,384,000 shares during the year at a total cost of approximately HKD 19.407 million, all of which were cancelled[154] Operational Challenges - The construction business revenue decreased by 187.3 million Macanese Patacas or 20.5% due to delays in large construction projects caused by the COVID-19 pandemic[121] - The gross profit margin for construction and renovation projects decreased from 19.6% in 2021 to 10.0% in 2022, primarily due to increased project costs[102] - The group recorded a gross loss of 2.3 million MOP in the electric vehicle business during the fiscal year[104] Future Outlook - The group plans to leverage its advanced engineering technology and management capabilities to capture new construction and renovation opportunities in the gaming and resort sectors in Macau[1] - The demand for construction services and prefabricated steel in Macau and Hong Kong is anticipated to increase as the global economy recovers[144] - The global steel demand is expected to grow by 1% to 1.8147 billion tons in 2023, according to the World Steel Association[142] Corporate Governance - The company has maintained a strong focus on corporate governance to protect shareholder interests and enhance business value[193] - The audit committee has been established with three independent non-executive directors, ensuring compliance with corporate governance codes[198]