Performance Summary - Ningde Times (03750.HK) reported a revenue of 178.886 billion yuan for the first half of the year, an increase of 7.27% year-on-year, with a net profit of 30.512 billion yuan, up 33.02% year-on-year [2] - Hisense Home Appliances (00921.HK) achieved a total operating revenue of 49.34 billion yuan, a year-on-year increase of 1.44%, and a net profit of 2.077 billion yuan, up 3.01% year-on-year [2] - New Oriental-S (09901.HK) recorded a net revenue of 4.9 billion USD for the fiscal year 2025, a year-on-year increase of 13.6%, with a net profit of 372 million USD, up 20.1% year-on-year [2] - Weisheng Holdings (03393.HK) reported an operating income of 1.368 billion yuan, a year-on-year increase of 11.88%, and a net profit of 305 million yuan, up 12.24% year-on-year [2] - Yingda Real Estate (00432.HK) had a total revenue of 736 million HKD, a year-on-year growth of 35%, but reported a net loss of approximately 249 million HKD, an increase of 62.75% year-on-year [2] - Saint Bella (02508.HK) announced a profit alert, expecting a net profit of over 320 million yuan, turning from loss to profit year-on-year [2] - Aoneng Construction (01183.HK) issued a profit alert, expecting a net profit increase of over 125% to no less than 18 million MOP year-on-year [2] - Da Cheng Corn Group (03889.HK) issued a profit warning, expecting a net loss of approximately 65 to 85 million HKD, turning from profit to loss year-on-year [2] Company News - Sinopec Oilfield Services (01033.HK) announced that its subsidiary won a natural gas pipeline engineering project with a bid amount of 3.597 billion yuan, accounting for 4.44% of the 2024 revenue [2] - CSPC Pharmaceutical Group (01093.HK) signed an exclusive licensing agreement with MADRIGAL for SYH2086, with potential total payments of up to 2.075 billion USD [2] - China Biopharmaceutical (01177.HK) reported successful external licensing cooperation for LM-299, with a milestone payment of 300 million USD expected to be received soon [2] - Chunquan Industrial Trust (01426.HK) reported an average rental rate of approximately 86% for Huamao Property in the second quarter [2] - Sihuan Pharmaceutical (00460.HK) completed the first patient enrollment in a Phase III clinical trial for the new indication of the innovative drug Annelazole Sodium for gastroesophageal reflux disease [2] - Zhaoke Ophthalmology-B (06622.HK) received orphan drug designation from the FDA for Mephalan for the treatment of retinoblastoma in children [2] - Yunnan Construction Investment Concrete (01847.HK) continues to sign concrete supply contracts for the expansion project of Kunming Changshui International Airport, with a contract amount of approximately 283 million yuan [2] Buyback and Increase Dynamics - Vitasoy International (00345.HK) repurchased 2.122 million shares for approximately 19.6 million HKD at a price range of 9.2 to 9.26 HKD [2] - China Eastern Airlines (00670.HK) spent approximately 7.2536 million HKD to repurchase 2.5 million shares at a price range of 2.89 to 2.92 HKD [2]

Core Viewpoint - Aon Construction (01183.HK) expects to record a net profit of not less than 18 million Macanese Patacas for the six months ending June 30, 2025, representing an increase of over 125% compared to the net profit of 8 million Macanese Patacas for the six months ending June 30, 2024 [1] Group 1 - The expected increase in net profit is primarily due to an increase in revenue from construction activities, attributed to the certification of significant construction projects, including a substation and a government data center in the Macau Peninsula during the period [1] - Market expansion has led to an improvement in the gross profit margin of the steel structure business [1]

该期间纯利预期增加主要是由于(i)集团来自建设业务的收入增加，此乃由于该期间内澳门半岛一座变电 站及澳门政府数据中心的大量建筑工程获得认证及(ii)市场扩张使得钢结构业务的毛利率改善。 智通财经APP讯，澳能建设(01183)发布公告，集团预期截至2025年6月30日止六个月将取得不少于1800 万澳门元的纯利，较截至2024年6月30日止六个月的纯利800万澳门元增长125%以上。 ...

Core Viewpoint - 澳能建设 (01183) expects to achieve a net profit of no less than 18 million Macanese Patacas for the six months ending June 30, 2025, representing an increase of over 125% compared to the net profit of 8 million Macanese Patacas for the six months ending June 30, 2024 [1] Group 1 - The expected increase in net profit is primarily due to an increase in revenue from construction activities, attributed to the certification of significant construction projects, including a substation and a government data center in Macau [1] - Market expansion has led to an improvement in the gross profit margin of the steel structure business [1]

MECOM POWER AND CONSTRUCTION LIMITED 澳能建設控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1183） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 本公司股東及潛在投資者於買賣本公司股份時務請審慎行事。 承董事會命 澳能建設控股有限公司 主席 郭林錫 正面盈利預告 本公告乃由澳能建設控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）根 據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09(2)(a)條及證券及 期貨條例（香港法例第571章）第XIVA部而刊發。 本公司董事（「董事」）會（「董事會」）謹此知會本公司股東及潛在投資者，根據對 本集團截至2025年6月30日止六個月（「期間」）之未經審核綜合管理賬目的初步評 估以及董事會現有可得資料，本集團預期該期間將錄得不少於18.0百萬澳門元的 純利，較截至2024年6月30日止六個月的純利8.0百萬澳門元增長125%以上。 該期間 ...

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]

Company Information [Company Information](index=2&type=section&id=Company%20Information) (No summary provided for this top-level section) Management Discussion and Analysis [Company Overview](index=4&type=section&id=Company%20Overview) The Group is a leading civil engineering and high-voltage substation construction enterprise in Macau, with a broad business scope covering four core areas: construction and decoration, high-voltage substation construction, E&M engineering services, and facility management, while also expanding into EV-related services and steel structure business - The Group's core businesses include construction and decoration, high-voltage substation construction, E&M engineering, and facility management services[14](index=14&type=chunk) - The Group also engages in electric vehicle-related services, including charging services, EV distribution, system design and production, and battery pack manufacturing[15](index=15&type=chunk) - The steel structure business, as an upstream industry extension, primarily supplies steel materials such as rebar and sheet piles[15](index=15&type=chunk) [Business Review](index=5&type=section&id=Business%20Review) In H1 2024, despite Macau's tourism recovery, total revenue decreased by **6.7%** to **MOP 746 million** due to fewer large construction projects, while steel structure business grew to **MOP 555 million**, becoming the primary revenue source, though overall gross profit margin declined from **13.3%** to **6.4%** - As of June 30, 2024, the Group's outstanding construction and decoration engineering contracts were valued at **MOP 710 million**, and steel trading contracts at **MOP 530 million**[17](index=17&type=chunk) [Steel Structure Business](index=6&type=section&id=Steel%20Structure%20Business) During the period, the Group's Jiangmen production plant commenced operations, focusing on steel structure components and new building materials, securing **116,187 tons** of orders and delivering **108,842 tons** of steel materials, contributing **MOP 555 million** in revenue - The Jiangmen production plant officially commenced operations in early 2024, focusing on developing new materials and equipment for new energy businesses[18](index=18&type=chunk) - During the period, approximately **116,187 tons** of order contracts were secured, and approximately **108,842 tons** of steel materials were delivered, contributing **MOP 555 million** in revenue[18](index=18&type=chunk) [Construction Business](index=6&type=section&id=Construction%20Business) The Group secured new construction, E&M, and facility management projects totaling approximately **MOP 250 million** in new contracts and renewed several facility management agreements, anticipating growth opportunities from Macau's gaming operators' increased investment in non-gaming projects - New project contracts totaling approximately **MOP 250 million** were secured during the period, and multiple facility management service agreements were successfully renewed[19](index=19&type=chunk) - The six major gaming operators are expected to increase investment in non-gaming projects, benefiting the Group's construction business[19](index=19&type=chunk) [Electric Vehicle Business](index=7&type=section&id=Electric%20Vehicle%20Business) The Group's EV business has completed charging system installations and commenced fee collection at multiple gaming operators' hotels and residential commercial buildings, generating stable revenue and diversifying the EV business income - Charging systems at multiple gaming operator hotels and residential commercial buildings, including City of Dreams, Venetian, and Grand Lisboa Palace, have commenced fee collection, generating stable revenue[20](index=20&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) In H1 2024, total revenue decreased by **6.7%** to **MOP 746 million**, and gross profit fell **55.3%** to **MOP 47.5 million**, with gross margin dropping from **13.3%** to **6.4%**, primarily due to declines in construction and steel structure margins, increased administrative expenses, and higher finance costs, resulting in a **79.1%** profit reduction to **MOP 7.98 million** [Revenue](index=7&type=section&id=Revenue) Total revenue in H1 2024 decreased by **6.7%** to **MOP 746 million**, with construction business revenue declining **27.8%** to **MOP 190 million** due to fewer large projects, while steel structure business revenue grew **3.5%** to **MOP 555 million**, increasing its share of total revenue to **74.4%** Revenue Breakdown by Business Segment (For the six months ended June 30) | Business Segment | 2024 Revenue (MOP Thousands) | Share (%) | 2023 Revenue (MOP Thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Construction Business | 189,846 | 25.4 | 262,921 | 32.9 | | Electric Vehicle Business | 1,452 | 0.2 | 1,186 | 0.1 | | Steel Structure Business | 554,866 | 74.4 | 536,036 | 67.0 | | **Total** | **746,164** | **100.0** | **800,143** | **100.0** | [Gross Profit](index=8&type=section&id=Gross%20Profit) The Group's overall gross profit significantly decreased by **55.3%** to **MOP 47.5 million**, with gross margin falling from **13.3%** to **6.4%**, driven by a **68.9%** decline in construction business gross profit, including a gross loss in construction and decoration, and a drop in steel structure business gross margin from **9.1%** to **5.4%** due to lower rebar prices Gross Profit and Gross Margin Breakdown by Business Segment (For the six months ended June 30) | Business Segment | 2024 Gross Profit/(Loss) (MOP Thousands) | Gross Margin (%) | 2023 Gross Profit/(Loss) (MOP Thousands) | Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Construction Business | 18,342 | 9.7 | 58,950 | 22.4 | | Electric Vehicle Business | (1,008) | (69.4) | (1,396) | (117.7) | | Steel Structure Business | 30,143 | 5.4 | 48,677 | 9.1 | | **Total** | **47,477** | **6.4** | **106,231** | **13.3** | - The decline in construction business gross margin was primarily due to pricing strategy adjustments, increased competition, and higher costs from inflation[24](index=24&type=chunk) [Changes in Other Financial Indicators](index=9&type=section&id=Changes%20in%20Other%20Financial%20Indicators) During the period, other income and losses increased by **MOP 4.5 million** due to exchange gains, administrative expenses rose **40.0%** to **MOP 35.1 million** due to new production facilities, finance costs also increased, and income tax expense significantly decreased by **84.9%** due to lower gross profit - Administrative expenses increased by **MOP 10 million** (**+40.0%**), primarily due to additional salaries and promotion costs from the commencement of operations at the China production facility[29](index=29&type=chunk) - Finance costs increased to **MOP 5.4 million**, mainly due to an increase in bank borrowings during the period[30](index=30&type=chunk) - Profit for the period decreased by **MOP 30.2 million** (**-79.1%**), with net profit margin falling from **4.8%** to **1.1%**[31](index=31&type=chunk) [Liquidity and Financial Resources](index=10&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains prudent cash management, with net current assets of **MOP 285 million** and a current ratio of **1.5 times** at period-end, both improved from end-2023, while cash and bank balances increased to **MOP 94.4 million**, and the debt-to-equity ratio slightly rose to **57.6%** Key Liquidity Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Current Assets | MOP 285 million | MOP 255 million | | Current Ratio | 1.5 times | 1.4 times | | Cash and Bank Balances | MOP 94.4 million | MOP 57.6 million | | Bank Borrowings | MOP 277 million | MOP 267 million | | Capital Gearing Ratio | 57.6% | 55.7% | [Use of Net Proceeds from Global Offering](index=11&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) The company listed in 2018, raising approximately **HKD 262 million** in net proceeds from its global offering, with most funds utilized as planned by June 30, 2024, for performance bonds, storage facilities, staff recruitment, machinery purchases, new project pre-costs, and general working capital, leaving only **HKD 1.1 million** unutilized Use of Net Proceeds and Utilization (As of June 30, 2024) | Purpose | Revised Use (HKD Millions) | Actual Utilization (HKD Millions) | Unutilized Amount (HKD Millions) | | :--- | :--- | :--- | :--- | | Funding performance bonds | 112.4 | 112.4 | 1.1 | | Establishing storage facilities | 44.3 | 44.3 | – | | Recruiting additional staff | 45.2 | 45.2 | – | | Purchasing additional machinery | 16.8 | 16.8 | – | | Funding pre-costs for new projects | 16.7 | 16.7 | – | | General working capital | 26.2 | 26.2 | – | | **Total** | **261.6** | **261.6** | **1.1** | [Outlook](index=12&type=section&id=Outlook) For H2 2024, the Group is optimistic, anticipating increased demand for facility renovation from Macau's gaming operators and continued government investment in infrastructure and public housing to drive stable growth in the construction business, while the steel structure business will expand into Hong Kong and Southeast Asia, and the EV business will focus on charging station operations at gaming and resort properties to enhance gross profit - Construction Business: Anticipated growth drivers include gaming operators' facility renovations and government infrastructure projects[42](index=42&type=chunk) - Steel Structure Business: Accelerated expansion into Hong Kong and Southeast Asian markets, alongside the growth of prefabrication processing business[42](index=42&type=chunk) - Electric Vehicle Business: Expansion of hourly charging pile fee-based operations at gaming and resort properties to enhance gross profit[42](index=42&type=chunk) Review Report on Condensed Consolidated Financial Statements [Review Report on Condensed Consolidated Financial Statements](index=13&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Financial%20Statements) (No summary provided for this top-level section) [Conclusion of Review Report](index=13&type=section&id=Conclusion%20of%20Review%20Report) Deloitte Touche Tohmatsu, the auditor, reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2024, in accordance with Hong Kong Standard on Review Engagements, concluding that nothing came to their attention to suggest the statements were not prepared in all material respects in accordance with International Accounting Standard 34, Interim Financial Reporting - Auditor's Conclusion: Nothing came to attention to suggest the condensed consolidated financial statements were not prepared in all material respects in accordance with International Accounting Standard 34[45](index=45&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Financial Statements](index=14&type=section&id=Condensed%20Consolidated%20Financial%20Statements) (No summary provided for this top-level section) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group reported revenue of **MOP 746 million**, a **6.7%** decrease year-on-year, with gross profit at **MOP 47.48 million**, down **55.3%**, and profit for the period significantly reduced by **79.1%** to **MOP 7.98 million**, resulting in basic earnings per share of **MOP 0.17 cents** Key Profit or Loss Data for H1 2024 (For the six months ended June 30) | Indicator | 2024 (MOP Thousands) | 2023 (MOP Thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 746,164 | 800,143 | -6.7% | | Gross Profit | 47,477 | 106,231 | -55.3% | | Profit before tax | 9,598 | 48,904 | -80.4% | | Profit for the period | 7,982 | 38,181 | -79.1% | | Profit attributable to owners of the Company | 6,949 | 32,242 | -78.4% | | Basic earnings per share (MOP Cents) | 0.17 | 0.81 | -79.0% | [Condensed Consolidated Statement of Financial Position](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were **MOP 1.141 billion**, total liabilities were **MOP 660 million**, and net assets were **MOP 482 million**, a slight increase from **MOP 480 million** at end-2023, with net current assets rising from **MOP 255 million** to **MOP 285 million** Key Financial Position Data | Indicator | June 30, 2024 (MOP Thousands) | December 31, 2023 (MOP Thousands) | | :--- | :--- | :--- | | Non-current assets | 282,632 | 256,915 | | Current assets | 858,726 | 831,377 | | **Total assets** | **1,141,358** | **1,088,292** | | Current liabilities | 573,365 | 576,106 | | Non-current liabilities | 86,433 | 32,221 | | **Total liabilities** | **659,798** | **608,327** | | **Net assets** | **481,560** | **479,965** | | **Total equity** | **481,560** | **479,965** | [Condensed Consolidated Statement of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2024, the Group generated a net cash inflow from operating activities of **MOP 71.29 million**, a significant improvement from a net outflow of **MOP 129 million** in the prior period, with net cash outflow from investing activities at **MOP 33.73 million**, net cash inflow from financing activities at **MOP 2.85 million**, and period-end cash and cash equivalents increasing to **MOP 94.44 million** Cash Flow Summary (For the six months ended June 30) | Indicator | 2024 (MOP Thousands) | 2023 (MOP Thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 71,289 | (128,954) | | Net cash used in investing activities | (33,729) | (50,777) | | Net cash generated from financing activities | 2,845 | 135,779 | | Net increase (decrease) in cash and cash equivalents | 40,405 | (43,952) | | Cash and cash equivalents at end of period | 94,443 | 31,732 | Notes to the Condensed Consolidated Financial Statements [Notes to the Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) (No summary provided for this top-level section) [3. Revenue and Segment Information](index=20&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's operations are divided into three segments: construction, electric vehicles, and steel structures, with the steel structure business contributing **74.4%** of total revenue in H1 2024, while Macau remains the primary market, contributing **78.8%** of revenue, and both China and Hong Kong markets saw increased revenue Revenue from External Customers by Geographical Location (For the six months ended June 30) | Region | 2024 Revenue (MOP Thousands) | 2023 Revenue (MOP Thousands) | | :--- | :--- | :--- | | Macau | 587,798 | 748,864 | | China | 60,692 | 44,944 | | Hong Kong | 81,187 | – | | Singapore | 1,986 | – | | Cyprus | 14,501 | 6,335 | | **Total** | **746,164** | **800,143** | [10. Earnings Per Share](index=27&type=section&id=10.%20Earnings%20Per%20Share) For the six months ended June 30, 2024, profit attributable to owners of the Company was **MOP 6.95 million**, resulting in basic and diluted earnings per share of **MOP 0.17 cents**, a significant decrease from **MOP 0.81 cents** in the prior period Earnings Per Share Calculation | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (MOP Thousands) | 6,949 | 32,242 | | Weighted average number of ordinary shares (Thousands) | 3,986,007 | 3,996,126 | | **Basic and diluted earnings per share (MOP Cents)** | **0.17** | **0.81** | [18. Bank Borrowings](index=34&type=section&id=18.%20Bank%20Borrowings) As of June 30, 2024, the Group's total bank borrowings increased to **MOP 277 million** from **MOP 267 million** at end-2023, with **MOP 191 million** due within one year as current liabilities, **MOP 86.37 million** as non-current liabilities, and secured borrowings totaling **MOP 113 million** Bank Borrowings Structure | Item | June 30, 2024 (MOP Thousands) | December 31, 2023 (MOP Thousands) | | :--- | :--- | :--- | | Repayable within one year | 190,854 | 235,146 | | Repayable after one year | 86,366 | 32,052 | | **Total** | **277,220** | **267,198** | | Secured | 113,432 | 72,614 | | Unsecured | 163,788 | 194,584 | [23. Dividends](index=37&type=section&id=23.%20Dividends) The Board did not declare an interim dividend for the six months ended June 30, 2024, consistent with the policy for the same period last year - The Board did not declare an interim dividend for the six months ended June 30, 2024[93](index=93&type=chunk) Other Information [Other Information](index=37&type=section&id=Other%20Information) (No summary provided for this top-level section) [Directors' and Chief Executives' Interests](index=39&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests) As of June 30, 2024, Executive Directors Mr. Kwok Lam Sik and Mr. Sou Kun Tou jointly held approximately **51.20%** of the company's equity through their jointly controlled corporation, MECOM Holding Limited, while major shareholder Macau Rui Ying Investment Limited held approximately **13.56%** - Mr. Kwok Lam Sik and Mr. Sou Kun Tou jointly held **2,040,800,000** shares, representing **51.20%** of the issued share capital, through their controlled corporation, MECOM Holding Limited[101](index=101&type=chunk)[102](index=102&type=chunk) - Major shareholder Macau Rui Ying Investment Limited held **540,617,500** shares, representing **13.56%** of the issued share capital[105](index=105&type=chunk)[106](index=106&type=chunk) [Disclosure Requirements under Rule 13.21 of the Listing Rules](index=42&type=section&id=Disclosure%20Requirements%20under%20Rule%2013.21%20of%20the%20Listing%20Rules) Several financing agreements between the Group and Tai Fung Bank include a specific clause stating that if Mr. Kwok Lam Sik and Mr. Sou Kun Tou cease to be key management of the company, it constitutes an event of default, potentially triggering immediate repayment of all or part of the loans - Under financing agreements with Tai Fung Bank, the cessation of Mr. Kwok Lam Sik as Chairman and Mr. Sou Kun Tou as CEO from key management positions constitutes an event of default, potentially leading to immediate loan repayment demands[111](index=111&type=chunk)

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].