Market Leadership and Growth - The company has become a market leader in Hong Kong's clean, circular recycling, waste management, green technology, pest control, and gardening sectors after 44 years of operation[7]. - The Hong Kong government aims to achieve carbon neutrality by 2050 and has set a mid-term target to reduce carbon emissions by 50% from 2005 levels by 2035, which will drive growth in recycling and green technology businesses[8]. - The "Northern Metropolis" development is projected to create approximately 500,000 new housing units and jobs, generating strong demand for the company's core services[12]. - The company is actively considering suitable mergers, joint ventures, or new business projects to strategically expand its market presence both locally and internationally[13]. - The company is a leader in the food waste collection market, providing services in Kowloon and New Territories West, contributing to its growth in the recycling sector[19]. Financial Performance - The company's revenue for the year was approximately HKD 2,327.5 million, an increase of about 29.8% compared to HKD 1,793.1 million in 2022[24]. - The cleaning segment generated revenue of HKD 1,827.3 million, accounting for 78.5% of total revenue, with a year-on-year growth of 37.3%[26]. - The waste management and recycling segment reported revenue of HKD 278.9 million, representing 12.0% of total revenue, with a growth of 14.7%[26]. - The gross profit increased by approximately 36.5% to about HKD 206.1 million, with a gross profit margin of 8.9%, up 0.5 percentage points from 8.4% in 2022[24]. - The group secured new contracts worth approximately HKD 3.1 billion in 2023, increasing the total contract value on hand from HKD 3.59 billion at the end of 2022 to approximately HKD 4.43 billion, representing a growth of about 23.3%[40]. Operational Efficiency and Technology - The implementation of the "Waste Charging" policy on August 1, 2024, is expected to significantly enhance the quality and quantity of recyclables, providing growth momentum for the company's recycling and green technology operations[9]. - The company has introduced various digital and automated technology solutions, enhancing management capabilities and operational efficiency, with green technology products becoming a key growth engine[11]. - The company has secured contracts for smart recycling machines and a big data analysis platform, enhancing its green technology business[21]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.034 per share, totaling HKD 14.11 million, down from HKD 15.77 million in 2022[25]. - The board aims to provide returns to shareholders while maintaining adequate reserves for future development[92]. - The company’s financial performance and overall financial condition will be considered when recommending or declaring dividends[94]. Corporate Governance and Management - The company emphasizes the importance of compliance and risk management in its operations, reflecting a commitment to corporate governance[80]. - The company has a strong focus on strategic human resource management, as evidenced by the qualifications of its HR manager[82]. - The board includes members with extensive academic and professional backgrounds, enhancing the company's strategic direction[73]. - The company has maintained compliance with the corporate governance code throughout the year[157]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[170]. Sustainability and Social Responsibility - The company emphasizes sustainable development as a key component of its business operations, planning to publish an independent sustainability report in April 2024[90]. - The company is committed to sustainable development and innovation in its operations[78]. - The group received multiple awards in 2023, recognizing its commitment to sustainability and excellence in service[34]. Employee and Workforce Development - As of December 31, 2023, the group employed 10,229 staff, an increase from 8,894 staff in 2022, reflecting a growth of approximately 15%[65]. - The company emphasizes fair, open, and just principles in all employment practices, promoting equal opportunities[184]. - The remuneration policy aims to provide competitive market-level salaries to attract and retain talented employees, based on individual performance and company profitability[189]. Challenges and Market Conditions - The pest management market faces challenges due to high service level demands and intense competition, impacting new contract bidding outcomes[29]. - The group's administrative expenses increased by approximately 27.6% to HKD 128.7 million, accounting for about 5.5% of total revenue[51]. - The group’s net profit attributable to equity shareholders decreased by approximately 12.3% to HKD 47.1 million from HKD 53.7 million in the previous year[53].

Revenue and Profitability - For the year ended December 31, 2023, the revenue was approximately HKD 2,327.5 million, an increase of about 29.8% compared to HKD 1,793.1 million in 2022[2] - The gross profit for the same period was approximately HKD 206.1 million, reflecting a growth of about 36.5% from HKD 151.0 million in 2022[2] - The profit attributable to equity shareholders was approximately HKD 47.1 million, a decrease of about 12.3% from HKD 53.7 million in 2022[2] - The group's revenue for the year was approximately HKD 2,327.5 million, an increase of about 29.8% compared to HKD 1,793.1 million in 2022[27] - Gross profit rose approximately 36.5% to about HKD 206.1 million, with a gross profit margin increase of 0.5 percentage points to approximately 8.9%[27] - The group’s pre-tax profit for the year ended December 31, 2023, was HKD 65,158,000, compared to HKD 29,760,000 in 2022, indicating a substantial increase[133] - The company reported a net profit attributable to equity shareholders of approximately HKD 47.1 million for 2023, a decrease of about 12.3% from HKD 53.7 million in 2022[74] Segment Performance - The cleaning services segment recorded a revenue increase of 37.3%, reaching approximately HKD 1.83 billion, which accounted for about 78.5% of the total revenue[21] - The waste management and recycling segment's revenue increased by approximately 14.7%, with profit margin improving from about 0.4% to 7.6% due to effective cost control measures[14] - The waste management and recycling segment reported revenue of HKD 278.9 million, a growth of 14.7% from HKD 243.2 million[57] - The clean services segment generated revenue of HKD 1,827,343,000, which is a 37.3% increase from HKD 1,330,697,000 in 2022[162] - The waste management and recycling services segment reported revenue of HKD 276,983,000, up from HKD 207,209,000, marking a growth of approximately 33.6%[162] Contracts and Business Development - The company secured new contracts worth approximately HKD 3.1 billion in 2023, increasing the total value of contracts on hand from approximately HKD 3.59 billion to about HKD 4.43 billion, a growth of about 23.3%[17] - The company has approximately HKD 4,430.8 million in unexpired contracts as of December 31, 2023, with about HKD 2,238.0 million expected to be recognized by the end of 2024[16] - The company won contracts to provide smart food waste recycling machines and maintenance services for large private residential estates in early 2024[7] - The company plans to expand its food waste recycling machines to all public housing estates in Hong Kong by 2024, creating significant business opportunities[63] - The company is actively developing the private customer market through a one-stop service approach to enhance growth across core businesses[64] Financial Position - The group's current assets totaled approximately HKD 684.0 million, with a current ratio of about 1.2 times, indicating a healthy liquidity position[48] - The total cash and bank balances as of December 31, 2023, were approximately HKD 41.4 million, an increase of about 42.8% from HKD 29.0 million in 2022[75] - Current assets increased significantly from HKD 530,925 thousand in 2022 to HKD 683,988 thousand in 2023, representing an increase of about 29%[88] - Total liabilities increased from HKD 489,953 thousand in 2022 to HKD 575,950 thousand in 2023, marking an increase of about 17.6%[88] - The company's asset-liability ratio improved from 0.7 times in 2022 to 0.6 times in 2023[103] Employee and Operational Metrics - The number of employees increased from 8,894 in 2022 to 10,229 in 2023, reflecting a growth of approximately 15%[109] - The total employee costs, including director remuneration, increased to HKD 1,856,452,000 in 2023 from HKD 1,398,845,000 in 2022, representing a growth of approximately 32.7%[190] Government Regulations and Market Opportunities - The government announced the implementation of a solid waste charging scheme effective August 1, 2024, which is expected to drive growth in the company's recycling and green technology businesses[20] - The introduction of a waste charging scheme on August 1, 2024, is expected to significantly boost recycling volumes and benefit the group's recycling and green technology business[34] - The North Metropolis Area is expected to provide approximately 500,000 new housing units, presenting opportunities for the company's core businesses[65] Financial Costs and Subsidies - The financial costs for the year were approximately HKD 13.7 million, up from HKD 8.2 million in 2022, primarily due to increased operating capital loans and bank borrowing rates[73] - The group recognized government subsidies totaling HKD 1,755,000 in 2023, down from HKD 17,489,000 in 2022, reflecting a decrease in support[141] - The company received subsidies of HKD 801,000 for the elimination of certain commercial diesel vehicles, down from HKD 5,147,000 in the previous year, showing a shift in operational strategy[165] Asset Management - Non-current assets decreased from HKD 365,243 thousand in 2022 to HKD 327,405 thousand in 2023, a decline of approximately 10.4%[88] - The total assets as of December 31, 2023, amounted to HKD 1,011,393,000, up from HKD 896,168,000 in 2022, indicating a growth of approximately 12.9%[159] - The company reported a net asset value of HKD 369,701 thousand in 2023, up from HKD 336,111 thousand in 2022, representing an increase of approximately 10%[121] Dividends and Shareholder Returns - The proposed final dividend per ordinary share is HKD 0.034 for 2023, which has not been recognized as a liability at the reporting date[194]

Revenue Growth - Revenue for the six months ended June 30, 2023, increased by 55.0% to HKD 1,106.9 million compared to HKD 714.1 million in the same period last year[9]. - The cleaning segment generated revenue of HKD 861.5 million, representing a 72.8% increase year-on-year and accounting for approximately 77.8% of total revenue[13]. - The waste management and recycling segment reported revenue of HKD 137.2 million, a 22.7% increase from HKD 111.8 million in the previous year[21]. - The gardening segment's revenue increased by 8.1% to HKD 61.4 million, while pest management revenue remained stable at HKD 46.8 million[21]. - Revenue for the six months ended June 30, 2023, was approximately HKD 1,106.9 million, representing an increase of about 55% compared to HKD 714.1 million in the same period last year[36]. - Revenue from external customers in Hong Kong reached HKD 1,106,301,000, a substantial rise from HKD 702,110,000 in the prior year[81]. Profitability - The operating profit for the six months was HKD 31.8 million, up 15.7% from HKD 27.5 million in the previous year[9]. - The profit attributable to equity shareholders increased by 22.7% to HKD 21.8 million, compared to HKD 17.8 million in the same period last year[9]. - The overall gross profit increased from approximately HKD 57.7 million to HKD 86.4 million, despite a slight decrease in overall gross margin from 8.1% to 7.8%[23]. - The company's net profit attributable to equity shareholders for the six months was approximately HKD 21.8 million, an increase of about 22.7% from HKD 17.8 million in the previous year[45]. - The pre-tax profit for the six months ended June 30, 2023, was HKD 21,834,000, an increase from HKD 17,796,000 for the same period in 2022, representing a growth of approximately 22.9%[88]. Contracts and Market Position - The group secured new contracts valued at approximately HKD 1.78 billion during the period, including contracts for various hospitals and public facilities[14]. - The group secured contracts totaling approximately HKD 4,557.2 million as of June 30, 2023, with HKD 1,148.9 million expected to be recognized by the end of 2023[25]. - The group won two out of four contracts awarded by the Environmental Protection Department for food waste collection services, reinforcing its market leadership in Hong Kong[17]. - The group continues to expand its waste management and recycling services, covering five districts and serving a population of approximately 1.6 million[15]. - The group’s cleaning services cover eight districts in Hong Kong, serving a population of about 3 million, reinforcing its market leadership[15]. Financial Position - The group's net cash flow from operating activities for the period was approximately HKD 111.0 million, compared to HKD 50.1 million in the first half of 2022, representing a significant increase[47]. - As of June 30, 2023, the group's available cash and bank balances were approximately HKD 63.2 million, an increase of about 118.0% from HKD 29.0 million on December 31, 2022[47]. - The total current assets and current liabilities as of June 30, 2023, were approximately HKD 553.5 million and HKD 506.0 million, respectively, maintaining a current ratio of approximately 1.1 times[47]. - The group's bank borrowings decreased by approximately 17.2% to HKD 146.0 million as of June 30, 2023, down from HKD 176.4 million on December 31, 2022[48]. - The company's total liabilities increased to HKD 573,975 thousand as of June 30, 2023, compared to HKD 560,057 thousand at the end of 2022, indicating a rise of 2.1%[61]. Employee Costs and Staffing - The total employee costs for the six months ended June 30, 2023, were approximately HKD 899.0 million, compared to HKD 555.2 million for the same period in 2022, reflecting an increase of approximately 62%[57]. - The group employed 8,963 staff as of June 30, 2023, an increase from 8,894 staff on December 31, 2022[57]. - The company's short-term employee benefits paid to key management personnel increased to HKD 6,094,000 in the first half of 2023, up from HKD 5,172,000 in the same period of 2022, reflecting a growth of 17.8%[109]. Dividends and Shareholder Returns - The company did not declare an interim dividend for the period, consistent with the previous year[20]. - The company approved a final dividend of HKD 0.038 per ordinary share for the fiscal year, compared to HKD 0.009 per share in the previous year, representing a 322% increase[87]. - The company did not recommend any interim dividend for the six months ended June 30, 2023, compared to no interim dividend in the same period of 2022[87]. Strategic Initiatives - The company is actively pursuing opportunities in green technology and aims to align with the government's green economy initiatives[12]. - The company is actively researching the application of biotechnology to address food waste issues, capturing significant business opportunities[16]. - The company is actively exploring suitable mergers, joint ventures, or new business projects to accelerate future growth and deliver long-term returns to shareholders[34]. Corporate Governance - The company has maintained high standards of corporate governance and has complied with all applicable code provisions during the reporting period[144]. - The audit committee, composed of three independent non-executive directors, is responsible for reviewing the group's financial reporting procedures and risk management[151]. - The company has adopted the standard code of conduct for securities transactions by directors and confirmed compliance during the reporting period[150].

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，並明確表示概不就因本公告全部或任何部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 BAGUIO GREEN GROUP LIMITED 碧 瑤 綠 色 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） 1397 （股份代號： ） 有關截至二零二二年十二月三十一日止年度之 年報之補充公告 茲提述碧瑤綠色集團有限公司（「本公司」連同其附屬公司統稱「本集團」）截至二零 二二年十二月三十一日止年度之年報（「二零二二年年報」）。除另有界定者外，本公 告所用詞彙與二零二二年年報所界定者具有相同涵義。 除二零二二年年報中提供的資料外，本公司謹此根據香港聯合交易所有限公司證券 17 上市規則（「上市規則」）第 章補充以下有關購股權計劃及股份獎勵計劃之資料。 購股權計劃 17.07(2) 17.09(3) 根據上市規則第 及 條，本公司謹此澄清，於二零二二年一月一 ...

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，並表明概不就因本公告全部或任何部分內 容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 BAGUIO GREEN GROUP LIMITED 碧 瑤 綠 色 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） 1397 （股份代號： ） 截至二零二三年六月三十日止六個月 中期業績公告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 變動 千港元 千港元 1,106,855 714,122 +55.0% 收益 86,390 57,680 +49.8% 毛利 3,173 20,937 -84.8% 其他收入、收益及虧損 21,741 17,118 +27.0% 期內溢利 ...

Financial Performance - The group's revenue for the year was approximately HKD 1,793.1 million, an increase of about 40.8% compared to HKD 1,273.8 million in 2021[2] - Gross profit rose approximately 38.5% to about HKD 151.0 million, with a slight decrease in gross profit margin by 0.2 percentage points to approximately 8.4%[2] - Profit attributable to equity shareholders was approximately HKD 53.7 million, representing a year-on-year increase of about 3.2 times[2] - The gross profit for the year was approximately HKD 151.0 million, an increase of about 38.5% compared to HKD 109.0 million in the previous year[83] - The group's net cash flow from operating activities for the year was approximately HKD 90.4 million, slightly up from HKD 88.0 million in 2021[96] - The group's capital expenditure for the year was approximately HKD 138.7 million, up from HKD 73.4 million in 2021[106] - The group's bank borrowings as of December 31, 2022, were approximately HKD 176.4 million, an increase of about 42.7% from HKD 123.6 million in 2021[105] Revenue Segmentation - The cleaning segment's revenue increased by approximately 61.2% to HKD 1,330.7 million, accounting for 74.2% of total revenue[3] - The waste management and recycling segment's revenue was HKD 243.2 million, a 3.9% increase from the previous year[3] - The gardening segment's revenue was HKD 122.2 million, reflecting an 8.8% increase year-on-year[3] - The pest management segment's revenue decreased by 4.9% to HKD 97.0 million[3] Contracts and Backlog - The total value of uncompleted contracts was HKD 3,589.5 million, with HKD 1,795.1 million expected to be recognized by December 31, 2023[8] - The total amount of outstanding contracts as of December 31, 2022, is approximately HKD 3,589.5 million, with HKD 1,795.1 million expected to be recognized by the end of 2023[17] - The company has secured new contracts worth approximately HKD 3.08 billion, increasing its backlog from about HKD 2.15 billion to approximately HKD 3.59 billion, a growth of about 67.3%[79] - The company expects to recognize about HKD 1.8 billion in revenue from its current contracts in 2023, which exceeds the total revenue for the entire year of 2022 (HKD 1.79 billion)[79] Dividends - The proposed final dividend for the year is HKD 0.038 per share, totaling HKD 15,770,000, compared to HKD 3,735,000 in the previous year[18] - The total proposed final dividend represents a significant increase of over 320% compared to the previous year's dividend[18] Technology and Innovation - The group successfully introduced advanced technologies to enhance pest control efficiency, improving competitive barriers[1] - The company has introduced a new fully automated high-speed plastic sorting equipment that can process over 10,000 tons of plastic annually, equivalent to 400 million plastic bottles, enhancing both quantity and quality of recycling[63] - The company has received its first contract utilizing biotechnology for waste conversion, marking a significant milestone in its green technology business development[74] - The launch of the green technology business in 2022 has successfully secured multiple government contracts, including a project using biotechnology to address chicken manure issues[34] Sustainability and ESG - The company is actively pursuing sustainable development strategies, integrating ESG principles into its core business operations[30] - The company aims to enhance its ESG performance and facilitate green financing through the provision of ESG data to corporate clients[30] - The company aims to achieve "zero waste to landfill" by 2035 and "carbon neutrality" by 2050, aligning with the Hong Kong government's environmental goals[43] - The company is committed to developing green technology and collaborating with academic institutions to address environmental issues[44] - The company has received multiple awards for corporate governance and ESG practices, reflecting its commitment to sustainability[14] Market Opportunities - The anticipated population influx in the Northern Metropolis and the planned New Tin Science City presents significant growth opportunities for the company's services[31] - The introduction of new legislation in Hong Kong is expected to significantly boost recycling rates, benefiting the company's recycling services[43] - Approximately 80% of the company's revenue comes from government and semi-government contracts, indicating substantial growth potential in the non-government client sector[79] - The company is actively exploring opportunities in non-government sectors and enhancing its one-stop service offerings to deepen and broaden its core business[79] Corporate Governance - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[187] - The Audit Committee has reviewed the audited consolidated annual performance of the group for the year and assessed the effectiveness of the company's risk management and internal control systems[189] - The Audit Committee is responsible for recommending the appointment, reappointment, and removal of external auditors, as well as approving their remuneration and service term[190] - The company has established a Sustainability Steering Committee to manage and monitor sustainability matters, aiming to develop and review the company's sustainability direction and strategies[195] Employee and Operational Metrics - The group employed 8,894 employees as of December 31, 2022, compared to 5,621 employees in 2021[117] - Sales to the group's top five customers accounted for 67.7% of total sales for the year, up from 54.3% in 2021, with the largest customer contributing 44.3% of total sales, compared to 26.3% in 2021[126] - Purchases from the group's top five suppliers represented 35.6% of total purchases for the year, an increase from 31.5% in 2021, with the largest supplier accounting for 10.6% of total purchases, slightly down from 10.8% in 2021[126]

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，並明確表示概不就 因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失承擔任何責任。 BAGUIO GREEN GROUP LIMITED 碧 瑤 綠 色 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1397） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 末 期 業 績 公 告 財務摘要 • 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 收 益 約 為1,793.1百 萬 港 元（二零二一年：1,273.8百萬港元），較去年增加約40.8%。 • 截至二零二二年十二月三十一日止年度的毛利約為151.0百萬港元（二 零二一年：109.0百萬港元），較去年增加約38.5%。 • 截至二零二二年十二月三十一日止年度的本公司權益股東應佔本 集團溢利約為53.7百萬港元（二零二一年：12.8百萬港元），較去年增 加約3.2倍。 ...

Revenue Performance - Total revenue for the group rose by 21.6% to HKD 714.1 million compared to the same period last year[10] - Revenue for the cleaning services segment increased by 41.7% to HKD 498.6 million, accounting for approximately 70% of total revenue[10] - The cleaning segment saw a significant revenue increase of 41.7%, contributing HKD 498.6 million, which accounted for 69.8% of total revenue[23] - Revenue for the six months ended June 30, 2022, was approximately HKD 714.1 million, an increase of about 21.6% compared to HKD 587.2 million in the same period of 2021[47] - Revenue from external customers reached HKD 714,122,000, with a significant contribution from cleaning services at HKD 498,607,000[129] - Revenue from Hong Kong for the six months ended June 30, 2022, was HKD 702,110,000, up from HKD 587,154,000 in the same period of 2021, reflecting a growth of approximately 19.5%[151] Profitability - The operating profit increased by 29.8% to HKD 27.5 million, reflecting strong performance in the cleaning services sector[10] - The profit attributable to equity shareholders rose by 45.3% to HKD 17.8 million, with basic earnings per share increasing to HKD 4.29[10] - Gross profit for the period was approximately HKD 57.7 million, an increase of about 17.6% from HKD 49.0 million in the previous year[49] - Profit for the period was HKD 17,118 thousand, compared to HKD 12,247 thousand in the prior year, marking an increase of 39.8%[79] - The group reported a pre-tax profit of HKD 23,047,000[129] - The group reported a pre-tax profit of HKD 17,796,000 for the six months ended June 30, 2022, compared to HKD 12,247,000 for the same period in 2021, reflecting an increase of approximately 45.5%[168] Cost and Expenses - Service costs for the same period were approximately HKD 656.4 million, accounting for about 91.9% of total revenue, compared to 91.6% in the previous year[48] - Overall gross margin declined from 8.4% to 8.1%, primarily due to initial operating costs of new projects in the waste and recycling segment[31] - Administrative expenses increased by approximately 19.3% to HKD 48.2 million for the six months ended June 30, 2022, compared to HKD 40.4 million in 2021, accounting for about 6.7% and 6.9% of total revenue, respectively[57] - Financial costs rose to approximately HKD 2.7 million for the six months ended June 30, 2022, from HKD 2.0 million in 2021, representing about 0.4% and 0.3% of total revenue, respectively, due to increased levels of working capital loans and bank borrowing rates[58] Contracts and New Business - The group secured new street cleaning service contracts from the government valued at approximately HKD 1.6 billion[16] - The group obtained two new waste collection service contracts from the Environmental Protection Department, totaling approximately HKD 140 million[17] - The group achieved new contracts worth approximately HKD 19.5 billion, increasing the total contracts on hand from HKD 2.1 billion to approximately HKD 3.4 billion, a growth of about 59%[36] - The group secured seven three-year street cleaning service contracts from the Food and Environmental Hygiene Department, valued at approximately HKD 1.6 billion, expanding its service coverage to seven districts, serving over 2.5 million people[36] Technological Innovations - The group introduced green innovative technologies, including electric vehicles and IoT technology, to enhance service efficiency[16] - The group plans to introduce artificial intelligence technology to enhance pest control services and improve competitive barriers[31] - The group introduced a new fully automated high-speed plastic sorting equipment, expected to process over 10,000 tons of plastic annually, equivalent to 400 million plastic bottles[40] Financial Position - As of June 30, 2022, the group had cash and bank balances of approximately HKD 43.4 million, an increase of about 34.7% from HKD 32.3 million as of December 31, 2021[62] - The group's bank borrowings increased by approximately 28.5% to HKD 158.9 million as of June 30, 2022, compared to HKD 123.6 million as of December 31, 2021[63] - The group had unutilized bank credit facilities of approximately HKD 272.0 million as of June 30, 2022, compared to HKD 244.0 million as of December 31, 2021[64] - The group had contracted capital commitments of approximately HKD 19.1 million as of June 30, 2022, compared to HKD 4.4 million as of December 31, 2021[66] Market Conditions - The ongoing COVID-19 pandemic has increased demand for cleaning and disinfection services, positively impacting the group's performance[15] - The group recognized government subsidies totaling HKD 7,696,000 for the Employment Support Scheme during the reporting period, aimed at retaining employees amid the pandemic[160] Shareholder Returns - The interim dividend for this period is not recommended, consistent with the previous year[22] - The group did not recommend any interim dividend for the six months ended June 30, 2022, compared to HKD 14,940,000 declared for the same period in 2021[167]

Recycling and Waste Management - The company operates over 5,000 recycling points in Hong Kong, including plastics, glass, metals, and waste paper, and has established a food-grade PET plastic factory in Tuen Mun, expected to commence production in mid-2022[9]. - The company secured a contract with the Environmental Protection Department to collect over 20 tons of food waste daily from Kowloon, converting it into renewable energy at O.PARK1[9]. - The green technology business is expected to be a growth engine, with a contract to use biotechnology to convert chicken manure into animal feed and fertilizer, aiming to address larger waste issues in Hong Kong[10]. - The group expanded its recycling network to include gas stations and reverse vending machines, enhancing its leadership position in the recycling industry[29]. - A new recycling facility was opened in Yuen Long, covering 50,000 square feet with a maximum processing capacity of 20 tons per day, equipped with advanced sorting technology[25]. - The waste management and recycling segment's revenue increased by approximately 38.8% due to new contracts with the Food and Environmental Hygiene Department and the Airport Authority Hong Kong[36]. - The company anticipates significant opportunities in the recycling industry due to upcoming government policies under the "Hong Kong Climate Action Blueprint 2050" and "Hong Kong Resource Recycling Blueprint 2035"[44]. - The company has a commitment to pursuing new environmental technologies, including smart recycling systems and biotechnology[105]. Financial Performance - The group's revenue for the year was approximately HKD 1,273.8 million, an increase of about 12.5% compared to HKD 1,131.8 million in the previous year[30]. - Gross profit rose approximately 71.5% to about HKD 109.0 million, with a gross profit margin increase of 3.0 percentage points to approximately 8.6%[30]. - The cleaning business generated revenue of HKD 825.5 million, accounting for 64.8% of total revenue, reflecting a growth of 21.5%[32]. - Waste management and recycling revenue increased by 38.8% to HKD 234.0 million, representing 18.4% of total revenue[32]. - The company experienced a significant decrease in profit attributable to equity shareholders, down approximately 75.0% to HKD 12.8 million, primarily due to the absence of government subsidies under the "Employment Support Scheme" in 2021[30]. - The company plans to pay a final dividend of HKD 0.009 per share, totaling HKD 3,735,000, down from HKD 14,940,000 the previous year[31]. - The overall gross profit margin improved from approximately 5.6% to 8.6%, with gross profit amount increasing from approximately HKD 63.5 million to HKD 109.0 million[36]. - The service cost for the same period was approximately HKD 1,164.8 million, accounting for about 91.4% of total revenue, compared to 94.4% in the previous year[53]. - Other income decreased by approximately 76.8% to HKD 22.2 million from HKD 95.5 million, primarily due to the absence of government subsidies in 2021[55]. - The net cash generated from operating activities was approximately HKD 88.0 million, down from HKD 162.3 million in 2020[63]. Operational Efficiency and Technology - The company plans to enhance its iRecycle platform using big data technology to provide more precise services and create greater business opportunities[11]. - The company is focusing on smart machines and information technology to improve operational efficiency in its cleaning services, responding to increased demand due to the pandemic[16]. - The group will implement various IT solutions to enhance operational efficiency and optimize resource utilization[50]. - The company is committed to enhancing its operational efficiency and governance through continuous improvement initiatives led by experienced professionals[100]. Governance and Management - A Sustainable Development Steering Committee has been established to review and report on sustainability strategies regularly to the board[17]. - The company emphasizes compliance and governance, with board members having extensive backgrounds in operational management and financial analysis[100]. - The company has appointed Zhang Xiaozhen as the Executive Director, Chief Financial Officer, and Company Secretary since January 23, 2014, overseeing financial, procurement, and logistics departments[85]. - The management team includes Zhou Yutong, appointed as Chief Strategy Officer in November 2021, with over 25 years of experience in financial markets and mergers and acquisitions[94]. - The company has a strong board of independent non-executive directors, including Jun Haozhao, who has significant experience in sales and management roles since his appointment on April 24, 2014[87]. Human Resources and Talent Management - The company is actively involved in talent management and human resources, led by He Chenghui, who has over 20 years of experience in the field[95]. - The company aims to attract and retain talented individuals through the stock option plan, rewarding contributions to the group's growth[164]. Shareholder Information - As of December 31, 2021, major shareholders include Wu Yongkang with 279,256,000 shares (67.29%) and Chen Shujuan with the same number of shares, indicating significant family ownership[135][136]. - The company reported that sales to its top five customers accounted for 54.3% of total sales for the year, up from 50.8% in 2020, with the largest customer contributing 26.3%[151]. - The procurement amount from the top five suppliers represented 31.5% of total procurement, an increase from 26.8% in 2020, with the largest supplier accounting for 10.8%[151]. Stock Options and Remuneration - The company has a stock option plan that allows for the issuance of up to 10% of the total shares issued as of the listing date, which amounts to 40,000,000 shares[177]. - In the fiscal year, the company granted stock options for a total of 5,216,000 shares, representing approximately 1.26% of all issued shares as of the report date[193]. - The exercise price for stock options must be at least the higher of the closing price on the date of grant or the average closing price over the five trading days prior to the grant[189]. - The company can issue stock options exceeding the plan limit only with independent shareholder approval, and such options can only be granted to specifically designated qualified participants[187]. - The stock option plan is valid for 10 years from April 24, 2014, unless terminated early by shareholders[192]. - The maximum number of shares that can be issued upon exercise of all outstanding stock options cannot exceed 30% of the total issued shares at any time[188]. - The company has not reported any changes in the remuneration of directors and the five highest-paid individuals[156].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 587.154 million, a decrease of 0.7% compared to HKD 591.055 million in the same period of 2020[10]. - The operating profit increased by 27.8% to HKD 21.195 million, compared to HKD 16.582 million in the previous year[10]. - The profit attributable to equity shareholders rose by 9.8% to HKD 12.247 million, up from HKD 11.158 million in the same period last year[10]. - The company reported a gross profit of HKD 49.033 million, reflecting a 48.7% increase from HKD 32.976 million in the prior year[10]. - Gross profit increased by approximately 48.7% to about HKD 49.0 million, with a gross margin improvement of 2.8 percentage points to approximately 8.4%[23]. - The group reported a profit attributable to equity shareholders of approximately HKD 12.2 million, an increase of about 9.8% from HKD 11.2 million in the same period of 2020[62]. - The total comprehensive income for the six months ended June 30, 2021, was HKD 12,247,000, compared to HKD 11,857,000 in the same period of 2020, reflecting a growth of approximately 3.3%[100]. Revenue Segmentation - The waste management and recycling segment saw a significant increase in revenue, rising by 47.4% to HKD 117.595 million from HKD 79.768 million year-on-year[10]. - The cleaning segment accounted for approximately 59.9% of total revenue, while waste management and recycling contributed 20.0%[34]. - Revenue from waste plastic sourcing, collection, and sorting services increased to HKD 12,999 million in the first half of 2021, up from HKD 4,635 million in the same period of 2020[185]. Market and Economic Context - The Hong Kong economy grew by 7.8% year-on-year in the first half of 2021, benefiting from a rebound in internal consumption and strong export growth[17]. - The market for integrated environmental and waste management services is anticipated to grow due to increased public awareness of environmental health and hygiene during the pandemic[17]. - The company anticipates increased demand for professional recycling services and waste management following the implementation of the municipal solid waste charging scheme[47]. Operational Developments - The group secured new contracts worth approximately HKD 10.5 million from government tenders, including street cleaning and waste collection services[25]. - The group expanded its waste collection network, including a new waste sorting plant with a maximum processing capacity of 20 tons per day, set to open in Q3 2021[31]. - The company aims to leverage its waste management technology platform to track every piece of waste, aligning with the vision of a carbon-neutral economy[17]. - The company is focused on developing new green technologies and expanding its market presence in response to the evolving waste management landscape in Hong Kong[16]. Financial Position and Cash Flow - The net cash generated from operating activities was approximately HKD 51.4 million, down from HKD 70.7 million in the first half of 2020[64]. - As of June 30, 2021, the group had cash and bank balances of approximately HKD 57.0 million, an increase of about 99.7% from HKD 28.5 million at the end of 2020[64]. - The group's bank borrowings increased by approximately 21.1% to HKD 130.3 million as of June 30, 2021, compared to HKD 107.6 million at the end of 2020[64]. - The net cash generated from financing activities was HKD 13,476,000, contrasting with a net cash outflow of HKD 52,857,000 in the prior year, showing improved financing conditions[100]. Shareholder Information - Major shareholder Wu Yongkang holds 67.29% of the company's issued shares, totaling 279,256,000 shares[198]. - Wu Yongkang also directly owns an additional 4,256,000 shares, bringing his total ownership to 283,512,000 shares[198]. - Wu Yukun's spouse, Chen Shujuan, is considered to have an interest in all shares held by him, as per securities regulations[199]. - Wu Yukun's family member Wu Yaqun directly holds 6.44% of the shares, amounting to 26,736,000 shares[198]. Challenges and Competition - The group continues to face intense market competition and project delays due to the pandemic, but remains focused on high-margin projects[25]. - The horticulture segment continues to be affected by COVID-19, with increased operational costs and intense competition hindering new contract bidding results[36]. Technology and Innovation - The "iRecycle" platform was developed to encourage proper recycling and offers rewards in the form of iDollar for users[33]. - The company plans to actively develop its proprietary waste recycling and management technology platform to enhance waste management efficiency and increase recycling rates[48].