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]

Financial Performance - The company's revenue increased by 42.7% year-on-year to MOP 592.2 million, compared to MOP 414.8 million in the previous period[13] - Gross profit recorded was MOP 72.8 million, down from MOP 79.0 million in the previous period, resulting in a gross margin of 12.3% compared to 19.0% previously[13] - Net profit remained stable at MOP 54.0 million, slightly down from MOP 54.6 million in the previous period, with a net profit margin of 9.1% compared to 13.2% previously[13] - The company's revenue increased by 177.3 million MOP or 42.7% to 592.2 million MOP, with 209.3 million MOP contributed from steel structure sales and processing[23] - The gross profit for the period was 72.8 million MOP, a decrease of 7.8% year-on-year, with the gross profit margin dropping from 19.0% to 12.3%[27] - The construction business revenue decreased by 32.3 million MOP or 7.8%, primarily due to significant progress made in large projects in the previous year[24] - The company reported a basic and diluted earnings per share of MOP 1.94 for the six months ended June 30, 2022, compared to MOP 2.03 for the same period in 2021[66] - The company reported a total profit before tax of MOP 59,295,000 for the six months ended June 30, 2022, compared to MOP 63,235,000 for the same period in 2021[86] - The company reported a profit of MOP 51,910 thousand for the period, contributing to a total comprehensive income of MOP 47,704 thousand[71] Business Operations and Expansion - The company secured contracts for various construction and renovation projects, including a contract valued at approximately MOP 380 million for structural engineering services for a new integrated resort[14] - The company diversified its business by entering the steel structure sector, involving the sale and processing of metal materials[11] - The company is also engaged in providing electric vehicle charging solutions, including the supply and installation of charging devices and infrastructure[11] - The company renewed three facility management service agreements for energy centers and mechanical, electrical, and plumbing systems for several hotel complexes[14] - The company's operating income from construction and renovation projects is expected to contribute significantly to future revenue growth[14] - The company plans to continue expanding its market presence and exploring new business opportunities in the construction and engineering sectors[11] - The company plans to expand its electric vehicle charging business and battery production into other cities in the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing its market competitiveness[58] - The company has successfully secured land use rights in Jiangmen, Guangdong Province, to establish a production facility, thereby extending its business into manufacturing[59] - The company is actively involved in major urban infrastructure projects in Macau, which are expected to create significant demand for construction services[57] - The company is developing various charging systems and smart charging networks to meet the needs of different drivers in Macau and the Greater Bay Area, aligning with national carbon neutrality goals[58] Financial Position and Assets - The total value of uncompleted contracts as of June 30, 2022, amounted to MOP 884 million[14] - As of June 30, 2022, the group's current assets net value was MOP 408.0 million, up from MOP 386.5 million on December 31, 2021, with a current ratio of 1.9 times[36] - The total cash and bank balance as of June 30, 2022, was MOP 145.8 million, down from MOP 224.8 million on December 31, 2021[36] - The group had unused credit facilities of MOP 187.5 million as of June 30, 2022, with no bank borrowings reported[37] - As of June 30, 2022, total assets amounted to MOP 851,652 thousand, an increase of 37% compared to MOP 621,780 thousand in the previous year[69] - Trade and other receivables rose significantly to MOP 517,619 thousand, up 102% from MOP 256,423 thousand year-on-year[69] - Current liabilities increased to MOP 443,673 thousand, compared to MOP 235,259 thousand in the previous year, reflecting a 88% rise[69] - The net asset value as of June 30, 2022, was MOP 473,909 thousand, up from MOP 447,528 thousand, indicating a growth of 6%[69] - The company’s inventory was reported at MOP 45,806 thousand, with no previous year comparison available[69] Employee and Operational Costs - The total employee costs for the period amounted to MOP 60,392,000, up from MOP 45,791,000 in the previous year, reflecting an increase in salaries and other allowances[97] - Administrative expenses increased by MOP 1.9 million or 12.1%, primarily due to salaries, consultancy fees, and other promotional costs related to the electric vehicle charging business and steel structure metal materials trading and processing[33] - The group’s accrued employee costs were MOP 10,775,000 as of June 30, 2022, down from MOP 15,164,000 as of December 31, 2021, reflecting a decrease of approximately 29%[126] Shareholder and Equity Information - The company declared an interim dividend of HKD 1.5 per share for the six months ended June 30, 2022, totaling approximately HKD 40,097,000, compared to HKD 2.8 per share and HKD 49,999,000 for the same period in 2021[102] - The group issued 891,039,150 new shares as bonus shares on June 29, 2022, based on a ratio of one bonus share for every two existing shares held[137] - The company has no preferential rights for existing shareholders to subscribe for new shares according to its articles of association[163] - As of June 30, 2022, Mr. Guo and Mr. Su each held 1,352,160,000 shares, representing approximately 50.58% of the total issued shares of 2,673,117,550[166][167] - Major shareholder Mr. Kwan held 335,475,000 shares, representing approximately 12.55% of the total issued shares[173][174] Tax and Compliance - Income tax expenses decreased by MOP 3.4 million or 39.2%, mainly due to a reduction in gross profit and a reversal of an overprovision from previous years amounting to MOP 1.8 million[34] - The company incurred a tax expense of MOP 7,022,000 for the six months ended June 30, 2022, compared to MOP 8,641,000 in the same period of 2021[92] - The company has unutilized tax losses of MOP 7,131,000 available to offset future profits, with losses expiring in 2024 to 2027 totaling MOP 6,106,000[95] Corporate Governance - The company established an audit committee consisting of three independent non-executive directors, with Ms. Chen Bao-yi as the chairperson, who possesses the appropriate professional qualifications as per listing rules[179] - The audit committee and external auditor Deloitte reviewed the group's accounting principles and practices, as well as the condensed consolidated financial statements for the six months ended June 30, 2022[180]

Financial Performance - The company's revenue increased by 28.9% year-on-year to MOP 912.0 million, compared to MOP 707.3 million in the previous fiscal year[14]. - Net profit surged by 148.4% to MOP 126.5 million, up from MOP 50.9 million in the previous fiscal year[14]. - Gross profit rose by 98.5% to MOP 173.4 million, compared to MOP 87.4 million in the previous fiscal year[14]. - The gross margin improved to 19.0%, up from 12.4% in the previous fiscal year, while the net profit margin increased to 13.9% from 7.2%[14]. - The company's total revenue for the fiscal year 2021 increased by MOP 204.7 million or 28.9%, reaching MOP 911.98 million, compared to MOP 707.31 million in 2020[21]. - Revenue from construction and renovation projects rose by MOP 170.7 million or 36.7%, while electromechanical engineering services revenue increased by MOP 36.3 million or 23.8%[21]. Electric Vehicle Charging Business - The company secured contracts to provide electric vehicle charging systems for approximately 5,100 private and public parking spaces in the Greater Bay Area, including Guangdong Province and Macau[9]. - The electric vehicle charging business has achieved significant breakthroughs and has not been adversely affected by the pandemic[9]. - The electric vehicle charging business has established projects covering approximately 5,100 private and public parking spaces in Guangdong and Macau[17]. - The company acquired a 49% stake in MS E.Mobi, enhancing its capabilities in electric vehicle charging infrastructure and technology[18]. - The electric bicycle battery swapping system was successfully launched in Q4 2021, with 2,070 lithium iron phosphate batteries assembled for users in Guangzhou[19]. - The electric vehicle charging business recorded a loss of MOP 1.55 million, attributed to installation costs of approximately MOP 1.1 million for charging facilities[24]. Construction Industry Outlook - The Macau government's policy emphasizes pandemic prevention, economic recovery, and urban planning, which is favorable for the company's construction business development[8]. - The Macao government announced an investment of MOP 20 billion in construction projects, surpassing the MOP 10 billion allocated for casino construction projects[48]. - The government plans to build approximately 15,400 social and economic housing units in the first phase of the Macao New City Area from 2022 to 2024, indicating significant demand for the construction industry[48]. - The Macao government intends to invest MOP 400 billion in infrastructure projects in Hengqin over the next decade, which is expected to increase demand for construction services[49]. - The construction industry in Macao is expected to see increased investment from operators following the issuance of new gaming licenses in 2022, further driving demand[49]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to enhance stakeholder value and ensure sustainable growth through a three-tier management framework focused on environmental, social, and governance (ESG) initiatives[71]. - The company is committed to achieving carbon peak by 2030, aligning with national environmental strategies and promoting clean energy alternatives[50]. - The company has received ISO 14001:2015 certification for its environmental management system, demonstrating its commitment to promoting green practices[79]. - The company emphasizes compliance with environmental regulations and has established a framework to monitor adherence to local and international standards[79]. - The company has established an ISO 14001:2015 certified environmental management system to minimize its environmental impact[95]. Corporate Governance - The company has adopted the corporate governance code as a framework to protect shareholder interests and enhance transparency[137]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced skill set for effective leadership[143]. - The board has established three committees to oversee various aspects of the company's affairs: the Audit Committee, Nomination Committee, and Remuneration Committee[142]. - The company has implemented appropriate insurance for directors and senior management against legal claims arising from company activities[153]. - The company has a commitment to corporate governance and regularly hires independent consultants to evaluate the effectiveness of its internal control systems[117]. Employee and Labor Practices - The total number of employees as of December 31, 2021, was 295, a decrease from 355 in the fiscal year 2020[47]. - The employee turnover rate was 64% for males and 24% for females, with the highest turnover rate of 73% among other staff categories[103]. - The company has a commitment to equal opportunity and diversity, strictly prohibiting any form of discrimination in the workplace[98]. - The company encourages work-life balance by providing reasonable working hours and organizing employee gatherings to enhance morale[100]. - The company has implemented an OHSAS 18001:2007 certified occupational health and safety management system to ensure compliance with safety regulations and improve safety performance[105]. Financial Management and Reporting - The total value of contracts in hand as of December 31, 2021, was approximately MOP 873.6 million, with an expected total of MOP 1 billion for Q1 2022[16]. - The net proceeds from the global offering amounted to MOP 269.4 million, with actual utilization as of December 31, 2021, totaling MOP 239.9 million[41]. - The company reported a proposed final dividend of HKD 0.033 per share for the year ended December 31, 2021, subject to shareholder approval at the upcoming annual general meeting[192]. - The company issued 595,741,000 bonus shares based on a ratio of one bonus share for every two existing shares held, completed on June 29, 2021[194]. - The company’s financial summary for the past five fiscal years is detailed on page 140 of the annual report, providing insights into performance, assets, and liabilities[196].

Financial Performance - The company reported a revenue increase of 43.2% to approximately MOP 414.8 million for the six months ended June 30, 2021, compared to MOP 289.6 million in the same period last year[13]. - Net profit surged by 319.7% to about MOP 54.6 million, up from MOP 13.0 million in the previous period[13]. - Gross profit increased by 199.1% to MOP 79.0 million, compared to MOP 26.4 million in the prior period, with a gross margin of 19.0%[13]. - The company’s net profit margin improved to 13.2% from 4.5% in the previous period[13]. - Revenue for the six months ended June 30, 2021, increased by MOP 125.2 million or 43.2%, primarily due to increases in construction and renovation projects and electromechanical engineering services[17]. - The gross profit margin improved from 9.1% in the previous period to 19.0% in the current period, attributed to significant project completions and improved cost efficiency[20]. - The company reported a profit increase of MOP 41.6 million or 319.7% for the period, driven by various factors including project progress and revenue growth[27]. - Basic and diluted earnings per share increased to 3.05 MOP from 0.72 MOP, showing strong earnings growth[54]. - The company’s total profit for the six months ended June 30, 2021, was 54,566 thousand Macanese Patacas, a significant increase compared to the previous year[86]. Business Operations - The company operates in four main business areas: construction and renovation, high-voltage substation construction, electromechanical engineering services, and facility management services[10]. - The company completed significant construction progress on major contracts, including a hotel complex project in Cotai with a total contract value of approximately HKD 6.5 billion[13]. - The company diversified its business by introducing electric vehicle charging solutions and systems during the reporting period[10]. - The company has diversified its existing business by launching electric vehicle charging solutions and system services[73]. - The electric vehicle charging business generated revenue of MOP 28,000, marking the introduction of new services in this segment[76]. Market and Economic Conditions - The number of inbound tourists to Macau reached 4 million in the first half of 2021, showing a significant recovery from the previous year[13]. - Macau's gaming revenue rose approximately 45.4% year-on-year to about MOP 49 billion in the first half of 2021[13]. - The overall economic situation in Macau is gradually improving, with the government announcing multiple new construction projects valued at nearly MOP 35.2 billion[46]. - The group anticipates that existing license holders will increase facility renovations and potentially build more large-scale integrated resorts, benefiting the company directly[46]. - The central government is promoting the "Guangdong-Macau Cooperation Framework Agreement," which will allow Macau construction companies to enter the Hengqin area for projects, presenting significant opportunities[47]. - The group plans to leverage opportunities in the Greater Bay Area market, using Hengqin as a base for expansion[47]. Financial Position - As of June 30, 2021, the company's current assets net value was MOP 389.0 million, with a current ratio of 2.6 times[28]. - The company has not utilized credit financing amounting to MOP 178.0 million as of June 30, 2021, maintaining a capital debt ratio of zero[29]. - The total value of uncompleted contracts as of June 30, 2021, reached MOP 1.2 billion, with new contracts valued at approximately MOP 300 million[14]. - Total assets as of June 30, 2021, were MOP 631,478,000, compared to MOP 558,543,000 at the end of 2020, indicating a growth of 13.0%[57]. - The company's equity totalled MOP 444,508,000 as of June 30, 2021, compared to MOP 439,032,000 at the end of 2020, a slight increase of 1.6%[57]. - The company reported a significant increase in contract assets to MOP 107,889,000 from MOP 77,369,000, a growth of 39.5%[57]. - As of June 30, 2021, the group had no significant contingent liabilities, maintaining a stable financial position[42]. Shareholder Information - The company repurchased a total of 3,450,000 shares during the reporting period, with a total cost of approximately MOP 4,256,000[120]. - As of June 30, 2021, the total issued and paid-up share capital was MOP 18,409,000, with 1,787,223,000 shares outstanding[118]. - The board declared an interim dividend of 2.8 Hong Kong cents per share, expected to be paid around September 29, 2021[138]. - The company issued 595,741,000 new shares as bonus shares on June 29, 2021, based on a ratio of one bonus share for every two existing shares held[143]. - The shareholding structure indicates a strong control by major shareholders, with MECOM Holding Limited also holding 50.44%[153]. Governance and Compliance - The company confirmed compliance with all corporate governance codes during the reporting period[136]. - The company has adopted the corporate governance code as a basis for its governance practices, enhancing transparency and accountability[135]. - The audit committee consists of three independent non-executive directors, ensuring effective financial reporting and internal control[160]. - The company has not disclosed any interests or short positions in shares or debentures by directors or senior management as of June 30, 2021[153].

Economic Impact of COVID-19 - In 2020, Macau's total gaming revenue dropped by 79.3% to MOP 60.4 billion from MOP 292.5 billion in 2019 due to the COVID-19 pandemic[9] - The number of visitors to Macau plummeted from 2.9 million in January 2020 to 660,000 by December 2020[9] - The GDP of Macau fell by 63.8% year-on-year in Q3 2020, significantly impacting the construction industry[9] Company Performance and Revenue - The company's revenue increased by 41.8% year-on-year to MOP 707.3 million in 2020, compared to MOP 498.9 million in 2019[18] - Over 60% of the revenue came from core civil engineering and steel construction services, followed by electromechanical engineering and maintenance services[18] - The company's total revenue for 2020 was MOP 707.3 million, an increase of MOP 208.4 million or 41.8% compared to 2019[20] Profitability and Margins - The gross profit margin decreased to 12.4% in 2020 from 20.5% in 2019, while the net profit margin fell to 7.2% from 11.3%[18] - The gross profit for the year was MOP 87.4 million, a decrease of 14.5% from MOP 102.2 million in 2019, with the gross profit margin dropping from 20.5% to 12.4%[22] - The gross profit margin for construction and renovation projects fell from 23.9% in 2019 to 12.6% in 2020, primarily due to supply chain disruptions caused by the COVID-19 pandemic[23] Electric Vehicle Initiatives - The company signed a memorandum of understanding with a US-listed gaming operator to establish and operate electric vehicle charging systems covering approximately 3,100 parking spaces in Macau[12] - The company aims to continue developing its electric vehicle charging business in Macau, Hong Kong, and the Greater Bay Area to enhance profitability and market leadership[12] - The number of electric vehicles in Macau increased by 64.4% from 685 in 2019 to approximately 1,126 in the first nine months of 2020, suggesting a growing market for electric vehicle charging solutions[49] Corporate Governance and Compliance - The company has adopted the corporate governance code as the basis for its governance practices, ensuring compliance with all relevant standards[126] - The board believes that good corporate governance standards are essential for safeguarding shareholder interests and enhancing corporate value[125] - The company has a zero-tolerance policy towards bribery and corruption, implementing internal controls to monitor key business activities and mitigate fraud risks[105] Environmental, Social, and Governance (ESG) Practices - The company emphasizes the importance of environmental, social, and governance (ESG) reporting, ensuring high-quality disclosures and stakeholder engagement[63] - The company has received ISO 14001:2015 certification for its environmental management system, ensuring robust mechanisms for promoting green practices[74] - The company has implemented measures to reduce direct greenhouse gas emissions by optimizing construction plans and monitoring vehicle usage[79] Financial Position and Cash Flow - Net cash generated from operating activities increased to MOP 37.6 million in 2020 from MOP 13.1 million in 2019, reflecting better cash flow management[36] - As of December 31, 2020, the group's cash and bank balances totaled MOP 175.3 million, down from MOP 223.7 million in 2019[37] - The group had undrawn credit facilities amounting to MOP 367.4 million as of December 31, 2020, up from MOP 312.0 million in 2019[38] Future Growth and Expansion Plans - The company anticipates further expansion in facility management contracts with the opening of new casinos and resorts in the future[11] - The company plans to actively seize opportunities in large-scale development projects, including the "Macau New Neighborhood" and new reclamation area projects, while enhancing talent training[50] - The company is positioned to benefit from the diversification of Macau's economy beyond gaming, supported by government initiatives[10] Community Engagement and Support - The company donated MOP 20,000 to support disaster relief efforts for COVID-19 in Wuhan, showcasing its community support initiatives[110] - The company provides scholarships of MOP 10,000 each to 10 outstanding graduates annually, demonstrating its commitment to supporting the younger generation[108] Risk Management and Internal Controls - The board is responsible for the risk management and internal control systems, ensuring they are effective and appropriate for achieving strategic objectives[166] - The company has established a risk management and internal control policy covering various operational areas, including revenue collection and financial reporting[167] - The board regularly reviews the effectiveness of the risk management and internal control systems, with no significant concerns identified that could impact financial or operational controls[169]

Revenue and Profitability - The company's revenue doubled to MOP 290 million, up from MOP 134 million in the previous period, with over 70% of revenue coming from core civil engineering and steel structure services[13]. - The group's profit increased by 8.3 million Macanese Patacas, or 176.9%, to 13.0 million Macanese Patacas, compared to 4.7 million Macanese Patacas in the previous period[33]. - Gross profit reached 26.4 million Macanese Patacas, up from 22.3 million Macanese Patacas in the previous period, but profit margins declined due to various factors[24]. - Total comprehensive income for the period was MOP 13,000,000, compared to MOP 4,694,000 in 2019, marking an increase of 176.5%[112]. - Basic and diluted earnings per share were MOP 1.09, up from MOP 0.39 in the same period last year[112]. Market and Contract Activity - The company secured contracts worth over MOP 750 million in the first half of the year, including multiple significant projects for the gaming industry[14]. - The company continues to diversify its construction services, including electromechanical engineering and facility management[10]. - The company is involved in high-pressure substation construction and system installation, providing planning and project management services[10]. - The company secured a residential development project contract worth MOP 120 million on July 25, 2020, reflecting ongoing opportunities in the market[60]. - The total value of uncompleted contracts as of June 30, 2020, reached MOP 1.17 billion, indicating a strong order backlog for the company[60]. Impact of COVID-19 - Macau's inbound tourist numbers fell nearly 70% year-on-year to 3.2 million in the first quarter, significantly impacting the tourism and gaming sectors[13]. - Macau's gaming revenue contracted approximately 60% year-on-year to around MOP 30 billion in the first quarter, reflecting the challenges faced by the industry[13]. - Despite the pandemic, the construction market in Macau remained stable, with some gaming companies pushing forward with important expansion plans[13]. - The company recognized government subsidies of MOP 600,000 during the period, related to COVID-19 business assistance[144]. Financial Position and Liquidity - As of June 30, 2020, the group's current assets amounted to 362.9 million Macanese Patacas, down from 405.0 million Macanese Patacas as of December 31, 2019[34]. - The group maintained a healthy liquidity position with a current ratio of 4.4 times as of June 30, 2020, compared to 3.4 times as of December 31, 2019[34]. - Current assets decreased to MOP 470,897,000 from MOP 576,922,000 as of December 31, 2019[115]. - Total liabilities decreased from MOP 171,889,000 to MOP 108,040,000, indicating improved financial stability[115]. - Cash and cash equivalents at the end of the period increased to MOP 163,810,000 from MOP 135,919,000 in the previous year[123]. Shareholder and Governance Information - The company declared an interim dividend of HKD 0.01 per share, expected to be paid around September 29, 2020[66]. - The company’s governance practices are based on the Hong Kong Stock Exchange's corporate governance code[65]. - The company’s board and management are committed to maintaining high standards of corporate governance to protect shareholder interests[63]. - Major shareholders include Chen Xiuying and Li Guoxiong, each holding significant stakes through controlled entities[92]. - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting and internal control standards[100]. Employee and Operational Metrics - The company has increased its workforce to 324 employees as of June 30, 2020, up from 269 at the end of 2019, indicating growth in operational capacity[52]. - Total employee costs for the six months ended June 30, 2020, amounted to 42,713,000 MOP, up from 41,128,000 MOP in 2019, reflecting a year-on-year increase of approximately 3.9%[150]. - The company incurred a current tax expense of 1,593,000 MOP for the six months ended June 30, 2020, compared to 853,000 MOP in the same period of 2019[150]. Asset Management and Investments - The company acquired property, plant, and equipment worth approximately 108,000 MOP during the reporting period, compared to 49,295,000 MOP in the same period of 2019[154]. - The company has a remaining performance obligation of MOP 660,346,000 for construction and renovation projects, with MOP 150,818,000 expected to be recognized within one year[142]. - The company has a tax exemption status in the Cayman Islands, which impacts its tax liabilities significantly[145]. Other Financial Metrics - The company reported a net cash outflow from operating activities of MOP 21,592,000, compared to a net inflow of MOP 3,728,000 in 2019[123]. - The company reported other income of MOP 2,449,000, down from MOP 3,225,000 in the previous year, primarily due to a decrease in bank interest income[144]. - The company has a credit period of 0 to 90 days for trade payables, with MOP 12,938,000 (96%) of trade payables due within 90 days as of June 30, 2020[188].

Contracts and Market Opportunities - The company secured contracts worth over MOP 800 million during the year, including a significant contract for the Macau Prosecutor's Office (Phase II) valued at over MOP 62 million[11]. - The company anticipates continued opportunities for high-quality engineering contracts, aiming to enhance revenue and market share[11]. - The construction market in Macau is expected to benefit from government support and infrastructure projects, with over 39.4 million visitors recorded in 2019, a 10% increase from 2018[10]. - The company plans to expand its mechanical and electrical system contracting capabilities to diversify its project portfolio and increase profitability[14]. - The company has established partnerships with state-owned enterprises for major construction projects, including a contract worth HKD 6.5 billion for a new hotel complex in Macau[11]. - The company aims to leverage its established reputation in the Macau construction market to secure larger contracts and increase market share[11]. - The company is closely monitoring market conditions and is prepared to adjust strategies in response to potential changes[14]. - The company expects to continue benefiting from the demand for renovation and maintenance projects in the gaming sector[14]. - The company secured over 30 projects during the year, with a total value exceeding 800 million MOP, including significant contracts for hotels and resorts[25]. - Public construction investment surged by 131.3% in the third quarter, stimulating demand in the construction market[24]. - Future infrastructure projects by the Macau government, including new bridges and expanded light rail coverage, are expected to drive demand for steel structure engineering[24]. - The group aims to expand its business by providing integrated construction services and has plans to explore opportunities in the Greater Bay Area market[73]. Financial Performance - The total revenue for the year was 498.9 million MOP, a decrease of 16.5% compared to 597.6 million MOP in 2018[30]. - Revenue from construction and renovation projects accounted for 73.7% of total revenue, amounting to 367.6 million MOP, an increase from 333.6 million MOP in 2018[30]. - Revenue from high-voltage substation construction and system installation dropped significantly by 77.6%, contributing only 39.2 million MOP compared to 175.4 million MOP in 2018[30]. - Facility management services generated 92.1 million MOP, representing 18.4% of total revenue, up from 88.6 million MOP in 2018[30]. - The gross profit margin improved to 20.5% from 18.5% in 2018, while the net profit margin increased to 11.3% from 9.2%[26]. - Revenue from construction and renovation increased by 10.2% to MOP 367.6 million, compared to MOP 333.6 million in 2018[31]. - Gross profit for the group decreased by 7.3% to MOP 102.2 million, down from MOP 110.3 million in 2018, with a gross margin of 20.5%[35]. - The gross margin for high voltage substation construction dropped significantly from 15.8% in 2018 to 9.1% in 2019 due to reduced revenue[35]. - Administrative expenses increased by 16.0% to MOP 41.3 million, primarily due to accelerated bidding activities[38]. - Other income rose by 32.5% to MOP 5.7 million, attributed to increased rental income from industrial units[36]. - The net cash generated from operating activities was MOP 13.1 million, a decrease from MOP 49.4 million in 2018[50]. - The bank balance and cash (including time deposits) decreased to MOP 223.7 million from MOP 315.2 million in 2018[50]. - Expected credit loss for trade receivables increased to MOP 3.0 million from MOP 0.3 million in 2018[37]. - As of December 31, 2019, the group's current assets net value was MOP 405.0 million, a decrease from MOP 425.4 million in 2018, with a current ratio of 3.4 compared to 3.7 in 2018[51]. - The group had unused credit facilities amounting to MOP 312.0 million as of December 31, 2019, up from MOP 234.0 million in 2018, and no bank borrowings were reported[52]. - The total cash and bank balances, including fixed deposits, were MOP 223.7 million as of December 31, 2019, down from MOP 315.2 million in 2018[51]. - The total net proceeds from the global offering were MOP 269.4 million, with actual utilization of MOP 187.1 million as of December 31, 2019[58]. - The total value of uncompleted contracts as of December 31, 2019, was MOP 701 million, with an additional new hotel project worth over MOP 460 million awarded at the beginning of the year[72]. Corporate Governance and Compliance - The company is focusing on enhancing corporate governance, talent training, and acquiring new equipment to strengthen its competitive edge[25]. - The board of directors emphasizes the importance of corporate governance, adopting the corporate governance code as a framework to enhance transparency and accountability[194]. - The board believes the company has complied with all provisions of the corporate governance code for the year ended December 31, 2019[195]. - The company has adopted the standard code for securities transactions by directors as per the listing rules, confirming compliance by all directors for the year ended December 31, 2019[196]. - The board is responsible for corporate governance functions, including the formulation and review of governance policies and compliance with legal regulations[197]. - The board has fulfilled its corporate governance functions during the year[198]. Sustainability and Environmental Initiatives - The company has achieved ISO 14001:2015 certification for its environmental management system, demonstrating its commitment to sustainable practices[115]. - The company has identified 14 significant environmental, social, and governance (ESG) topics that impact its business and stakeholders[113]. - The company emphasizes stakeholder engagement in its decision-making processes to enhance sustainable development performance[110]. - The company is focused on improving environmental performance through initiatives related to greenhouse gas emissions, energy consumption, and waste management[115]. - The company has established a three-tier management framework to promote sustainability across its operations[104]. - The company is committed to maintaining compliance with environmental and social regulations, ensuring ethical business practices[109]. - The company is exploring opportunities in sustainable development projects and green solutions to address sustainability challenges[115]. - The company is enhancing its stakeholder communication through various channels, including meetings and public events[110]. - The company is dedicated to improving workplace health and safety as part of its social responsibility initiatives[117]. - Total indirect greenhouse gas emissions increased to 22.74 tons of CO2 equivalent in 2019 from 20.45 tons in 2018, representing an increase of approximately 11.8%[123]. - The intensity of indirect greenhouse gas emissions rose to 0.10 tons of CO2 equivalent per square foot of office area in 2019, compared to 0.09 tons in 2018, marking an increase of approximately 11.1%[123]. - Total electricity consumption reached 25,754 kWh in 2019, up from 24,400 kWh in 2018, indicating an increase of about 5.6%[136]. - Electricity intensity increased to 117.44 kWh per square foot of office area in 2019, compared to 111.26 kWh in 2018, reflecting an increase of approximately 5.6%[136]. - Paper waste consumption decreased significantly to 2.88 tons in 2019 from 5.66 tons in 2018, representing a reduction of approximately 49.1%[132]. - The company implemented various energy-saving measures, including shutting down idle office equipment and using energy-efficient devices, to control energy consumption and greenhouse gas emissions[136]. - The company has committed to using environmentally friendly refrigerants and minimizing the purchase of refrigerants to prevent leaks and pollution[128]. - The company has established guidelines for subcontractors to implement effective waste management mechanisms and measures[130]. - The company encourages subcontractors to save energy, water, and resources throughout the construction process[137]. - The company has not encountered any issues in sourcing water during the year, indicating stable water resource management[136]. - The company has established an ISO 14001:2015 certified environmental management system to minimize the impact of business activities on the environment[141]. - The company is actively assessing climate change risks and has announced two upcoming green projects to promote energy-saving and clean energy technologies[144]. - The company will collaborate with China Resources Peach New Energy Co., Ltd. to develop applications and infrastructure for waste treatment and renewable energy in Macau[144]. Employee and Social Responsibility - The company has implemented a structured recruitment and termination policy based on fair assessment criteria to select qualified candidates[149]. - The company emphasizes equal opportunities and prohibits any form of discrimination or harassment in the workplace[146]. - The company has established a comprehensive evaluation mechanism for fair assessment of employee performance, which influences promotion and compensation decisions[150]. - The company is committed to maintaining the highest safety standards and complies with local occupational health and safety regulations[152]. - The company conducts regular environmental assessments to identify potential environmental risks in the workplace and surrounding areas[141]. - The company has set measurable and actionable environmental performance objectives and regularly evaluates the effectiveness of control measures[141]. - The company emphasizes employee training and development, providing opportunities such as onboarding programs and external courses[157]. - The company prohibits any illegal employment practices, including child labor and forced labor, in compliance with local laws[158]. - The company has not reported any serious violations regarding child labor and forced labor laws during the year[159]. - The company encourages supply chain partners to adopt environmentally friendly practices and conducts regular assessments to ensure compliance[160]. - The company has implemented an ISO 9001:2015 certified quality management system to ensure service quality and compliance with relevant standards[163]. - There were no serious violations of service quality and data privacy laws reported during the year[165]. - The company has a zero-tolerance policy towards corruption and fraud, with established internal controls to mitigate risks[166]. - The company has sponsored academic awards and scholarships for outstanding graduates, providing MOP 10,000 to each of the 10 recipients annually[172]. Strategic Growth and Future Outlook - The company reported a significant increase in revenue for the fiscal year ending December 31, 2019, with total revenue reaching HKD 1.2 billion, representing a year-on-year growth of 15%[183]. - The company has expanded its project portfolio, successfully completing over 30 major construction projects in the past year, contributing to a 20% increase in project management efficiency[183]. - The company is focusing on technological advancements, investing approximately HKD 50 million in research and development for new construction technologies[183]. - The management team has outlined a strategic plan to enter new markets in Southeast Asia, targeting a 10% market share within the next three years[183]. - The company has set a performance guidance for the upcoming fiscal year, projecting a revenue growth of 12% to 15% based on current market trends and project pipeline[183]. - The company is actively pursuing potential mergers and acquisitions to enhance its service offerings, with a budget of HKD 100 million allocated for this purpose[183]. - The company has reported a customer satisfaction rate of 85%, indicating strong performance in service delivery and project execution[183]. - The company plans to launch a new line of eco-friendly construction materials, aiming to capture a growing segment of environmentally conscious clients[183]. - The company has established a partnership with a leading technology firm to integrate AI solutions into its project management processes, expected to improve operational efficiency by 25%[183].

Financial Performance - Total revenue decreased by 63.0% to MOP 134.2 million due to the lack of major construction and renovation projects during the period [19]. - Net profit for the period was MOP 4.7 million, down from MOP 20.8 million for the same period in 2018 [19]. - Total revenue for the six months ended June 30, 2019, decreased by MOP 228.7 million or 63.0% compared to the same period in 2018, primarily due to a decline in construction and renovation engineering revenue by MOP 162.0 million or 72.0% [20]. - Gross profit for the six months ended June 30, 2019, decreased by MOP 32.0 million or 58.9%, attributed to reduced contract revenue during the period [26]. - The group reported a net profit decrease of MOP 16.1 million or 77.5% for the period, primarily due to the combined effects of reduced revenue and increased costs [31]. - The group reported a profit of MOP 4,694,000 for the six months ended June 30, 2019, down 77% from MOP 20,831,000 in the same period of 2018 [139]. - Basic and diluted earnings per share were MOP 0.39, compared to MOP 1.82 in the same period last year, indicating a decrease of approximately 78.6% [94]. Market Conditions - The construction market in Macau faced challenges, with a 15.0% year-on-year contraction in the number of construction projects in the first quarter of 2019 [15]. - The overall public and private construction market in Macau showed insufficient growth potential due to economic downturn trends and delays in project approvals [15]. - The company’s operational pressure increased due to a slowdown in engineering demand and a decrease in the number of construction projects available for bidding [15]. Contracts and Projects - The total value of contracts to be completed as of June 30, 2019, reached MOP 463.5 million, compared to MOP 265.0 million on December 31, 2018, indicating a significant increase [19]. - The company successfully secured a hotel project at Ma Tong Ling Lane and provided low-voltage system and HVAC system services for the second phase of the Macau SAR Prosecutor's Office, with a total contract value of approximately MOP 210 million [19]. - The company entered into a strategic cooperation agreement with China Resources Black Peach New Energy Limited in February 2019 to expand environmental protection projects in Macau [19]. - In April 2019, the company signed a cooperation agreement with a company with business backgrounds in Germany, Mauritius, and Macau to construct a solar power plant in Mauritius [19]. Cash Flow and Financial Position - Net cash and cash equivalents as of June 30, 2019, totaled MOP 268.4 million, down from MOP 315.2 million as of December 31, 2018 [32]. - The group had unused credit facilities amounting to MOP 427.0 million as of June 30, 2019, compared to MOP 234.0 million as of December 31, 2018 [33]. - The net proceeds from the global offering amounted to MOP 269.4 million, with actual utilization at MOP 139.9 million for various purposes including project guarantees and operational funding [36]. - The company’s cash and cash equivalents increased to MOP 139,553 thousand from MOP 100,314 thousand, representing a growth of about 38.9% [96]. - Net cash flow from operating activities was 3,728 thousand MOP, a significant decrease compared to (90,895) thousand MOP in the previous period [103]. Corporate Governance - The company emphasizes good corporate governance practices to protect shareholder interests and enhance corporate value [51]. - The company has complied with all corporate governance code provisions during the reporting period [51]. - The audit committee consists of three independent non-executive directors, ensuring effective financial reporting and internal control [81]. - Deloitte has reviewed the interim financial statements for the six months ended June 30, 2019, in compliance with International Accounting Standard 34 [87]. Employee and Shareholder Information - As of June 30, 2019, the company had 263 employees in Hong Kong and Macau, a decrease from 271 employees as of December 31, 2018 [46]. - The company did not grant any stock options under its stock option plan during the period, and no options were exercised or expired as of June 30, 2019 [46]. - The company repurchased 1,918,000 shares at a total cost of HKD 2,513,380, with a purchase price range between HKD 1.50 and HKD 1.18 per share [53][54]. - As of June 30, 2019, MECOM Holding Limited is owned by Mr. Guo and Mr. Su, each holding 35%, and Mr. Lin and Mr. Liu, each holding 15%, with a total shareholding of 100% [66]. - Major shareholders include Mr. Lin and Mr. Liu, each holding 600,960,000 shares, representing 50.16% of the total shares [70]. Future Outlook - The company holds a cautious outlook for the second half of 2019, anticipating a stable economic environment in Macau following the Chief Executive election [47]. - The company plans to strengthen internal management and business deployment to adapt to environmental changes, focusing on cost control and construction efficiency [47]. - The company aims to expand its market presence in the Guangdong-Hong Kong-Macau Greater Bay Area through collaboration with China Resources Black Peach New Energy Company on green building projects [47]. - The company is actively seeking advantageous acquisition opportunities in the upstream and downstream sectors to enhance revenue and market share [47].

Financial Performance - In 2018, the company's revenue decreased by 9.3% to MOP 597.6 million due to delays in project commencement and external market instability[12]. - Total revenue for 2018 decreased by 9.3% to MOP 597.6 million, down from MOP 658.7 million in 2017[19]. - Gross profit for 2018 was MOP 110.3 million, a decline of 13.4% from MOP 127.3 million in 2017, resulting in a gross margin of 18.5%[20]. - Profit for the year was MOP 55.0 million, down 29.6% from MOP 78.2 million in 2017, with adjusted profit at MOP 69.4 million[20]. - Revenue from construction and renovation services decreased by 34.2% to MOP 333.6 million, accounting for 55.8% of total revenue[21]. - Revenue from high voltage substation construction and system installation increased by 91.9% to MOP 175.4 million, representing 29.4% of total revenue[24]. - Revenue from facility management services rose by 47.2% to MOP 88.6 million, making up 14.8% of total revenue[25]. - Net profit for the year decreased by 29.6% from MOP 78.2 million in 2017 to MOP 55.0 million in 2018, reflecting the cumulative impact of various factors[44]. Market Conditions - Macau's economy grew by 4.7% in 2018, with a significant slowdown in the second half due to the US-China trade dispute[10]. - The total value of the Macau civil engineering market is projected to reach MOP 74.4 billion in 2018 and grow to MOP 126 billion by 2021[12]. - Macau's gaming revenue reached MOP 302.8 billion in 2018, an increase of 14% year-on-year[14]. - The opening of the Hong Kong-Zhuhai-Macau Bridge is expected to boost tourism and construction demand in the region[11]. Operational Strategy - The company plans to enhance operational efficiency and maintain price competitiveness by investing in new machinery and skilled personnel[15]. - The company aims to leverage opportunities in the Greater Bay Area to strengthen its market position[14]. - The company aims to balance securing more projects while maintaining reasonable gross margins for long-term development[22]. - The competitive environment in the Macau construction market has led the company to adopt more competitive pricing strategies[22]. Cost Management - The company experienced a significant increase in material costs, rising by 93.4% to MOP 126.2 million due to specific project requirements[33]. - Administrative expenses increased by 30.8% from MOP 27.5 million in 2017 to MOP 35.9 million in 2018, mainly due to higher director remuneration and legal fees post-listing[39]. - The company aims to enhance operational efficiency and maintain competitive pricing through rigorous cost control policies[74]. Environmental and Social Responsibility - The total indirect greenhouse gas emissions for the year amounted to 6.29 tons of CO2 equivalent, with an intensity of 0.03 tons of CO2 equivalent per square foot[88]. - The company has implemented an environmental and occupational health and safety manual in accordance with ISO 14001:2015 and OHSAS 18001:2007 standards to improve environmental performance[86]. - The company has not identified any serious violations of environmental laws and regulations in Macau during the year[87]. - The company actively monitors subcontractors' environmental performance and encourages the use of low-sulfur diesel vehicles to ensure compliance with regulatory standards[88]. - The company aims to minimize future emissions by seeking and utilizing more environmentally friendly equipment[88]. - The company has a commitment to sustainable business practices, creating long-term value for customers, employees, and the community[79]. Corporate Governance - The management team emphasized the importance of maintaining strong corporate governance practices to safeguard shareholder interests[144]. - The company has adopted the corporate governance code as a framework to enhance transparency and accountability[144]. - The board of directors is committed to overseeing the company's strategic direction and ensuring effective management of business operations[147]. - The audit committee, established on January 23, 2018, consists of three independent non-executive directors and is responsible for overseeing financial reporting, internal controls, and risk management systems[170]. - The board has confirmed that there are no significant uncertainties affecting the company's ability to continue as a going concern[197]. Employee Management - The company employed 271 staff as of December 31, 2018, a decrease from 541 in 2017, including 79 Macau residents[71]. - The company emphasizes occupational health and safety, maintaining high safety standards for employees and subcontractors[107]. - The company has established a safety management system certified by OHSAS 18001:2007, ensuring compliance with safety guidelines and regulations[108]. - The company emphasizes employee training and development, providing opportunities for onboarding and external training programs[109]. Community Engagement - The company supports community engagement through a scholarship program, providing MOP 10,000 to 10 students annually for three years[124]. - The company donated MOP 20,000 to support the "Community Chest Million Walk 2018" event, demonstrating its commitment to social responsibility[126].