Financial Performance - For the six months ended December 31, 2023, the company reported revenue of HKD 63,118,000, a decrease of 2.07% compared to HKD 64,452,000 for the same period in 2022[2] - The gross profit for the same period was HKD 2,276,000, down 61.86% from HKD 5,968,000 in the previous year[2] - The company incurred a loss before tax of HKD 23,336,000, compared to a loss of HKD 1,959,000 in the prior period, indicating a significant increase in losses[2] - The net loss for the period was HKD 23,989,000, compared to a net loss of HKD 3,213,000 in the previous year, reflecting a substantial deterioration in financial performance[3] - The total comprehensive loss attributable to owners of the company was HKD 23,869,000, compared to HKD 17,622,000 in the same period last year[3] - The company reported an expected credit loss provision of HKD 11,715,000, a significant increase compared to the reversal of HKD 4,892,000 in the previous period[2] - The solar energy business generated revenue of HKD 14,392,000, while the distribution system business generated HKD 48,726,000, resulting in a total segment loss of HKD 13,286,000 for the period[18] - The net loss before tax for the six months ended December 31, 2023, was HKD 27,654,000, compared to a loss of HKD 9,633,000 in 2022, representing an increase in loss of 187.3%[36] - The group's gross profit decreased by 61.9% to approximately HKD 2,300,000 for the six months ended December 31, 2023, down from HKD 6,000,000 for the same period in 2022, resulting in a gross margin decline from 9.3% to 3.6%[59] - The loss attributable to equity holders of the company was approximately HKD 27,700,000 for the six months ended December 31, 2023, compared to a loss of HKD 9,600,000 for the same period in 2022[60] Assets and Liabilities - The company's cash and cash equivalents decreased to HKD 6,253,000 from HKD 13,707,000, indicating a decline in liquidity[5] - Trade receivables increased to HKD 116,229,000 from HKD 108,780,000, suggesting a rise in outstanding customer payments[5] - The total assets decreased to HKD 161,912,000 from HKD 181,015,000, indicating a reduction in the company's asset base[5] - Total assets as of December 31, 2023, amounted to HKD 237,132,000, with segment assets for the solar energy business at HKD 106,495,000 and distribution system business at HKD 118,571,000[19] - The total liabilities as of December 31, 2023, were HKD 75,316,000, with segment liabilities for the solar energy business at HKD 14,241,000 and distribution system business at HKD 32,106,000[19] - The total trade receivables as of December 31, 2023, amounted to HKD 195,352,000, with an expected credit loss provision of HKD 80,124,000, resulting in a net trade receivable of HKD 115,228,000[40] - The net current assets of the group were approximately HKD 158,500,000 as of December 31, 2023, down from HKD 179,800,000 as of June 30, 2023[65] - The capital debt ratio increased to 0.38 as of December 31, 2023, compared to 0.25 as of June 30, 2023[65] Operational Focus - The company is primarily engaged in supplying solar photovoltaic components and equipment in China and providing electrical engineering services in Singapore, indicating ongoing operational focus in these markets[6] - The company operates three reportable segments: solar energy, distribution systems, and engineering services, with no inter-segment sales reported for the current period[16] - The revenue from solar photovoltaic components and equipment for the six months ended December 31, 2023, was HKD 14,392,000, a decrease of 60.7% compared to HKD 36,554,000 in 2022[24] - The revenue from providing distribution systems increased significantly to HKD 48,726,000, up 93.2% from HKD 25,154,000 in the previous year[24] - The solar energy business generated revenue of approximately HKD 14,300,000 for the six months ended December 31, 2023, a decrease of 63.6% compared to HKD 39,300,000 for the same period in 2022[55] - The distribution system segment recorded revenue of approximately HKD 48,700,000 for the six months ended December 31, 2023, an increase of 93.1% from HKD 25,200,000 for the same period in 2022[56] Corporate Governance - The company has adhered to all applicable corporate governance codes as of December 31, 2023, with no significant deviations[84] - The company has appointed Mr. Liu Yan Cheng as the Chairman of the Board, responsible for the overall strategy and operations as of December 31, 2023[85] - The Board believes that the current structure will not affect the balance of power and authority between the Board and management[85] - The company has increased the number of independent non-executive directors to three, thus complying with Listing Rule 3.10(1)[91] - The company has one independent non-executive director with professional accounting qualifications, meeting the requirements of Listing Rule 3.10(2)[91] - The Audit Committee consists of three members, all independent non-executive directors, with one holding professional accounting qualifications, complying with Listing Rule 3.21[91] - The company is arranging appropriate liability insurance for its directors to cover potential legal actions[87] - The company has adopted the standard code for securities transactions by directors as per the Listing Rules[90] - The Audit Committee was established on December 9, 2013, and consists of three independent non-executive directors[102] Employee and Operational Costs - The company’s employee benefits for the six months ended December 31, 2023, were HKD 9,031,000, an increase of 4.6% from HKD 8,631,000 in 2022[29] - The total employee count increased to 50 as of December 31, 2023, with employee costs amounting to approximately HKD 8,900,000[82] - Administrative expenses increased from approximately HKD 10,800,000 for the six months ended December 31, 2022, to HKD 13,100,000 for the same period in 2023[63] - The company incurred unallocated expenses of HKD 10,084,000, contributing to the overall loss before tax for the period[18] Financing and Capital Management - The company completed a placement of 13,902,800 new shares at a price of HKD 0.22 per share on June 12, 2023[66] - The net proceeds from the 2023 placement amount to approximately HKD 2,900,000, which will be fully utilized for general operating funds[68] - As of December 31, 2023, the group has utilized HKD 2,300,000 for human resources and HKD 600,000 for other general expenses from the placement proceeds[70] - The company’s total financing costs for the six months ended December 31, 2023, were HKD 293,000, up 15.4% from HKD 254,000 in the previous year[28] - The interest expense on bank borrowings for the six months ended December 31, 2023, was HKD 195,000, an increase of 11.4% from HKD 175,000 in 2022[28] - Bank borrowings were HKD 3,866,000 as of December 31, 2023, down from HKD 10,815,000 as of June 30, 2023[49] Other Financial Information - The company did not declare any dividends for the six months ended December 31, 2023, and 2022[38] - The total other income and losses for the six months ended December 31, 2023, was HKD 42,000, a recovery from a loss of HKD 1,357,000 in the previous year[25] - Other income and losses improved from a net loss of approximately HKD 1,300,000 for the six months ended December 31, 2022, to a gain of approximately HKD 400,000 for the same period in 2023[61] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending December 31, 2023[100] - There were no arrangements made for directors or senior management to profit from the acquisition of the company's securities during the six months ending December 31, 2023[98] - The company has not received any notifications regarding significant interests or short positions in its shares as of December 31, 2023[99]

Financial Performance - For the fiscal year ending June 30, 2023, the total revenue of the company decreased by 61.5% to approximately HKD 81,500,000, down from HKD 211,600,000 in the previous fiscal year[15]. - The solar energy business generated revenue of approximately RMB 34,200,000 (about HKD 38,500,000), a decrease of 32.2% compared to RMB 47,900,000 (about HKD 56,800,000) in the previous year[16]. - The distribution system business contributed revenue of approximately RMB 38,300,000 (about HKD 43,000,000), representing a significant decline of 72.0% from RMB 129,500,000 (about HKD 153,600,000) in the prior year[17]. - The company reported a loss attributable to equity holders of approximately HKD 61,600,000, with a loss per share of HKD 0.877, compared to a loss of HKD 44,000,000 and HKD 0.633 per share in the previous fiscal year[15]. - The group's gross profit margin decreased from 10.6% for the fiscal year ending June 30, 2022, to 6.7% for the fiscal year ending June 30, 2023, primarily due to a reduction in the gross profit margin of the distribution system business[18]. - The operating loss increased from approximately HKD 44 million for the fiscal year ending June 30, 2022, to approximately HKD 61.6 million for the fiscal year ending June 30, 2023, mainly due to a decrease in gross profit from about HKD 22.5 million to about HKD 5.4 million[18]. - Other income and losses improved from a net loss of approximately HKD 1.1 million for the fiscal year ending June 30, 2022, to a net income of approximately HKD 900,000 for the fiscal year ending June 30, 2023[20]. - The fair value loss of financial assets decreased by 43.8% to approximately HKD 1.9 million for the fiscal year ending June 30, 2023, compared to HKD 3.3 million for the fiscal year ending June 30, 2022[21]. - Administrative expenses decreased by 5.6% to approximately HKD 27.3 million for the fiscal year ending June 30, 2023, down from HKD 28.9 million for the fiscal year ending June 30, 2022[22]. - Total assets decreased by 18.9% to approximately HKD 250.7 million as of June 30, 2023, compared to HKD 309.3 million as of June 30, 2022[26]. - Total liabilities increased by 10.2% to approximately HKD 69.6 million as of June 30, 2023, compared to HKD 63.2 million as of June 30, 2022[29]. - The company's total equity decreased by 26.4% to approximately HKD 181 million as of June 30, 2023, from HKD 246.1 million as of June 30, 2022, primarily due to a loss of approximately HKD 53.1 million during the fiscal year[29]. - The group reported a net cash outflow from operating activities of approximately HKD 39.8 million for the fiscal year ending June 30, 2023, compared to a net cash inflow of HKD 6.3 million in 2022[49]. - Financing activities generated a net cash inflow of approximately HKD 16.9 million, attributed to proceeds from share issuance and bank borrowings[49]. Business Strategy and Operations - The company is establishing a new subsidiary in Guangzhou focused on the research and development of cosmetics and personal care products, expected to commence operations in the next fiscal year[6]. - The company aims to balance resources between its solar energy and distribution system businesses to optimize operations and seek new customers and contracts[6]. - Future strategies include identifying stable return businesses with high potential, particularly in the production and supply of distribution equipment and energy storage systems[7]. - The company anticipates a gradual recovery in domestic business as social distancing measures are lifted, although initial customer demand remains weak[5]. - The company is facing ongoing operational pressure in its solar energy business due to government policies promoting large-scale photovoltaic power stations[6]. - The company has not secured any new projects in Singapore's power engineering services due to a conservative approach amid a sluggish construction market[11]. - The company continues to monitor regulatory developments in China, Hong Kong, and Singapore to ensure compliance with local laws and regulations, which could impact financial performance[63]. - The company faces risks related to changes in government policies regarding renewable energy in China, which could affect revenue and profitability[63]. - The company is exploring new opportunities in non-government housing sectors to diversify its business[63]. - The company’s operations in Singapore are highly dependent on projects planned by the Housing and Development Board, and any adverse changes in government housing policies may negatively impact financial performance[63]. Risk Management and Compliance - The company actively manages risks by identifying and assessing key project and business risks across all levels[65]. - The company continues to monitor credit risk associated with trade receivables, which typically have a maturity of 180 to 360 days[56]. - Economic conditions in China and Singapore are critical to the company's operational performance, with potential negative impacts from any economic contraction in China[60]. - The company faces operational risks related to the availability and cost of skilled labor in Singapore, which could adversely affect financial performance[60]. - The company has established an effective and sufficient risk management and internal control system, with independent consultants conducting reviews every two years to enhance the system's effectiveness[154]. Corporate Governance - The company has complied with all applicable corporate governance codes as per the listing rules[95]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[100]. - The company has arranged for liability insurance for its directors and senior officers for the fiscal year ending June 30, 2023[83]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors as of June 30, 2023[124]. - The company has adopted the corporate governance code principles as per the Hong Kong Stock Exchange and has complied with all applicable provisions for the fiscal year ending June 30, 2023[119]. - The board is responsible for determining the applicable corporate governance standards and ensuring processes are in place to achieve governance objectives[121]. - The audit committee has reviewed the annual performance and consolidated financial statements for the fiscal year ending June 30, 2023, and believes they are prepared in accordance with applicable accounting standards[138]. - The remuneration committee is responsible for reviewing the financial controls and internal risk management systems of the group[139]. - The company provides appropriate insurance for directors and senior officers to protect against risks arising from the group's business[135]. - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary[128]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report highlights the company's policies and performance for the fiscal year ending June 30, 2023, ensuring fair representation of significant ESG matters[167]. - The company generated a total of 20.0 tons of CO2 emissions for the fiscal year ending June 30, 2023, a decrease from 47.6 tons in the previous year[176]. - Water consumption per employee decreased to 2.92 cubic meters in 2023 from 5.39 cubic meters in 2022[179]. - Electricity consumption per employee reduced to 1,210 kWh in 2023 from 2,042 kWh in 2022[179]. - The company reported a significant reduction in paper usage per employee, down to 1.3 kg in 2023 from 11.2 kg in 2022[179]. - The company did not encounter any violations of environmental laws and regulations during the fiscal year ending June 30, 2023[170]. - The company implemented measures to reduce energy consumption, including the use of energy-efficient lighting and encouraging public transport[171]. - The company has established clear and measurable environmental goals communicated to employees[172]. - The company reported zero significant hazardous waste generated during the fiscal year ending June 30, 2023[178]. - The company aims to promote environmental awareness among employees through training and communication[171]. Workforce and Employee Relations - The company has increased its workforce to 35 full-time employees as of June 30, 2023, up from 23 in 2022, indicating a growth in human resources[186]. - The gender ratio of employees is approximately 1.5:1 (male to female), slightly down from 1.6:1 in 2022, reflecting a commitment to equal opportunity hiring[195]. - About 20% of the workforce is aged 35 or below, an increase from 17% in 2022, showcasing a diverse age distribution among employees[197]. - The company has implemented additional resources to monitor health and safety risks for workers in hot climates, ensuring adequate breaks and hydration[183]. - There have been no recorded incidents of workplace injuries or fatalities in the past three years, demonstrating a strong focus on employee safety[200]. - The company adheres to health and safety regulations across multiple regions, including Hong Kong, Singapore, and China, to provide a safe working environment[200]. - The company has developed its solar energy business to provide cleaner resources, aligning with global efforts to reduce emissions[183]. - The company emphasizes a multicultural work environment by focusing on candidates' abilities and strengths during the recruitment process[190]. - The company has established a comprehensive safety policy in its employee handbook to minimize workplace accidents[200].

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。 KINGBO STRIKE LIMITED 工 蓋 有 限 公 司* （於開曼群島註冊成立的有限公司） （股份代號：1421） 截 至 二 零 二 三 年 六 月 三 十 日 止 財 政 年 度 的 年 度 業 績 公 告 工蓋有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此呈列本公司及其附屬 公司（統稱「本集團」）截至二零二三年六月三十日止年度的經審核綜合業績，連 同截至二零二二年六月三十日止年度的比較數字如下： 綜合損益及其他全面收入表 截至二零二三年六月三十日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 4 81,518 211,606 銷售成本 (76,07 5) (189,11 2) 毛利 5,443 22,494 其他收益及（虧損）淨額 5 919 (1,052) 行政開支 (27,275) (28,888) 按公平值計入損益的金融資產的 公平值變動淨額 6(c) ( ...

Financial Performance - The solar power business generated revenue of approximately HKD 39,300,000 (around RMB 34,200,000) for the six months ended December 31, 2022, a decrease of 29.1% compared to HKD 55,500,000 (around RMB 45,800,000) for the same period in 2021[6]. - The distribution system business recorded revenue of approximately HKD 25,200,000 (around RMB 21,900,000), down 76.3% from HKD 106,200,000 (around RMB 87,500,000) in the previous year[7]. - The company reported revenue of HKD 64,452,000 for the six months ended December 31, 2022, a decrease of 60.24% compared to HKD 162,302,000 for the same period in 2021[54]. - Revenue from mainland China decreased to HKD 64,452,000 in the six months ended December 31, 2022, down 60% from HKD 161,684,000 in the same period of 2021[82]. - Revenue from supplying solar photovoltaic components and equipment was HKD 36,554,000, a decline of 34% compared to HKD 55,534,000 in the previous year[86]. Profitability and Losses - The group reported a gross profit of approximately HKD 6,000,000, a decline of 52.0% from HKD 12,400,000 in the same period last year, with a gross profit margin improvement from 7.7% to 9.3%[11]. - The attributable loss to equity holders was approximately HKD 9,600,000, an improvement from a loss of HKD 13,500,000 in the previous year, with basic loss per share improving from HKD 0.97 to HKD 0.69[11]. - The company reported a net loss of HKD 9,633,000 for the six months ended December 31, 2022, compared to a loss of HKD 13,503,000 in the same period last year, indicating a 28% improvement in loss[58]. - The company recorded a loss before tax of HKD 1,959,000, an improvement from a loss of HKD 4,046,000 in the previous year[54]. - The company reported a pre-tax loss of HKD 9,633,000 for the six months ended December 31, 2022, an improvement from a loss of HKD 13,503,000 in the previous period[97]. Assets and Liabilities - As of December 31, 2022, the group's net current assets were approximately HKD 234,800,000, down from HKD 246,000,000 as of June 30, 2022[15]. - Total assets as of December 31, 2022, amounted to HKD 365,566,000, an increase from HKD 308,038,000 as of June 30, 2022[55]. - Current liabilities totaled HKD 130,739,000, up from HKD 62,055,000 in the previous period, reflecting increased financial obligations[55]. - The company's total liabilities amounted to HKD 85,028,000, which includes trade and other payables of HKD 6,936,000 and bank loans of HKD 43,943,000[120]. - The expected credit loss provision for trade receivables was HKD 40,762,000 as of December 31, 2022, compared to HKD 48,016,000 as of June 30, 2022, indicating a reduction of about 15%[103]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to HKD 15,866,000 from HKD 38,810,000 as of June 30, 2022, indicating a decline in liquidity[55]. - Cash flow from operating activities showed a net outflow of HKD 33,125,000, worsening from a net outflow of HKD 4,928,000 in the previous year, indicating a significant increase in cash usage[60]. - The company’s cash and cash equivalents decreased to HKD 15,866,000 at the end of the reporting period, down from HKD 50,296,000 a year earlier, representing a decline of 68.4%[60]. - The company incurred a foreign exchange loss of HKD 7,989,000 during the period, contributing to the overall comprehensive loss of HKD 17,622,000[58]. Operational Highlights - The company faced business development slowdowns and weakened customer demand due to COVID-19 outbreaks in Eastern China during the first half of 2022[36]. - The board of China Baoli remains optimistic about long-term development despite a decline in the market value of its financial assets[33]. - The company is engaged in expanding its operations in the renewable energy sector, particularly in solar photovoltaic components and power engineering services in Singapore[61]. - The company has a significant investment in subsidiaries, including a 100% ownership in solar component supply and installation operations in China[63]. Shareholder and Governance Matters - The company did not declare any interim dividend for the six months ended December 31, 2022[51]. - The board believes that the current governance structure does not affect the balance of power and authority between the board and management[40]. - The company has adopted a share option scheme approved at the annual general meeting held on February 13, 2017[128]. - The company proposed a share consolidation on January 17, 2023, to merge every 20 existing shares of HKD 0.01 into one consolidated share of HKD 0.20[137]. Employee and Management Compensation - Employee costs for China Baoli amounted to approximately HKD 8,600,000 during the review period, up from HKD 8,200,000 for the same period last year[35]. - The remuneration for key management personnel for the six months ended December 31, 2022, was HKD 5,348,000, a decrease from HKD 6,117,000 in the previous year[125]. - The company granted stock options to 8 eligible participants, including 2 directors and 1 senior management, for a total of 98,800,000 shares at a nominal value of HKD 0.01 per share[132].

Financial Performance - For the fiscal year ending June 30, 2022, the total revenue of the group decreased by 44.3% to approximately HKD 211.6 million from HKD 380.1 million in the previous year[20]. - The solar power business generated revenue of approximately RMB 47.9 million (about HKD 56.8 million), a decrease of 65.6% compared to RMB 144.2 million (about HKD 165.2 million) in the previous year[21]. - The distribution system business contributed revenue of approximately RMB 129.5 million (about HKD 153.6 million), down 27.1% from RMB 183.8 million (about HKD 210.6 million) in the previous year[22]. - The power engineering services segment recorded low revenue of approximately SGD 200,000 (about HKD 1.1 million), significantly lower than SGD 800,000 (about HKD 4.3 million) in the previous year[23]. - The group reported a loss attributable to equity holders of approximately HKD 44 million, with a loss per share of HKD 3.17, compared to a loss of approximately HKD 30.1 million and HKD 2.17 per share in the previous year[20]. - Operating losses increased from approximately HKD 30.1 million for the fiscal year ending June 30, 2021, to approximately HKD 44 million for the fiscal year ending June 30, 2022, primarily due to a decrease in gross profit from about HKD 37.8 million to about HKD 22.5 million[25]. - Other income and losses decreased from a net income of approximately HKD 5.2 million for the fiscal year ending June 30, 2021, to a net loss of approximately HKD 1.1 million for the fiscal year ending June 30, 2022[26]. - The fair value loss on financial assets decreased by 46.9% to approximately HKD 3.3 million for the fiscal year ending June 30, 2022, compared to HKD 6.3 million for the fiscal year ending June 30, 2021[27]. - Income tax expenses rose by 141.3% from approximately HKD 8 million for the fiscal year ending June 30, 2021, to approximately HKD 19.3 million for the fiscal year ending June 30, 2022, mainly due to an increase in domestic withholding tax provisions[33]. - Total assets decreased by 27.4% to approximately HKD 309.3 million as of June 30, 2022, down from HKD 426.2 million as of June 30, 2021[36]. - Total liabilities decreased by 22.7% to approximately HKD 63.2 million as of June 30, 2022, compared to HKD 81.8 million as of June 30, 2021[36]. - The company's total equity decreased by 28.5% to approximately HKD 246.1 million as of June 30, 2022, from HKD 344.3 million as of June 30, 2021, primarily due to a loss of approximately HKD 51.8 million during the fiscal year[37]. Operational Efficiency - The group is optimizing resource allocation between its solar and distribution system businesses to maintain operational efficiency[9]. - The average collection period increased to 431.6 days in the fiscal year ending June 30, 2022, compared to 254.8 days in the previous year[56]. - The average accounts receivable period increased by 176.8 days due to reduced revenue in the second half of the fiscal year and delayed customer repayments[57]. - The group has implemented strict budget control measures to mitigate risks associated with project delays and cost overruns, which typically last between 6 to 48 months[63]. - The company has established a framework for internal controls and risk management, which is reviewed by the Compensation Committee[149]. Market and Business Strategy - The company aims to seek stable return and high-potential businesses, including but not limited to the production and supply of distribution equipment[10]. - The company remains confident in the recovery of its business in China despite ongoing pressures from government policies on solar energy[17]. - The board is committed to creating value for shareholders by maintaining its core business and seeking new opportunities[19]. - The company is exploring new opportunities in non-government housing sectors to diversify its business amid potential adverse changes in government housing policies in Singapore[69]. - The company’s revenue is non-recurring and relies on competitive bidding for new projects, which could adversely affect its business and financial performance if it fails to maintain customer relationships[69]. - The company continues to explore profitable business opportunities and expand its market presence despite the challenges faced in the financial year[48]. Corporate Governance - The company has complied with all applicable corporate governance code provisions[99]. - The independent non-executive directors confirmed their independence under the listing rules[105]. - The company is committed to maintaining high standards of corporate governance, believing it provides a sustainable foundation for managing business risks and enhancing accountability[124]. - The board believes that the current structure facilitates strong and consistent leadership, allowing for efficient operations[127]. - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary[136]. - The board actively participates in meetings and makes independent judgments on matters concerning the company's strategy and performance[134]. - Continuous professional development is provided to directors to keep them informed of legal and regulatory developments relevant to their roles[144]. Environmental and Social Responsibility - The company reported a total carbon dioxide (CO2) emission of 47.6 tons for the fiscal year ending June 30, 2022, an increase from 40.8 tons in the previous year[187]. - The company has implemented policies to reduce energy consumption and effectively utilize resources, including measures to minimize greenhouse gas emissions[182]. - The company encourages employees to protect the environment through training and communication initiatives[182]. - The company has established clear and measurable environmental goals, including compliance with applicable laws and regulations[183]. - The company aims to enhance corporate social responsibility in response to evolving societal demands[177]. - The company has implemented various measures to promote environmental awareness among employees, including green office practices and water-saving initiatives[190]. Employee and Workforce Management - Approximately 10.0% of the workforce consisted of foreign labor as of June 30, 2022, highlighting reliance on skilled labor amidst local labor shortages[63]. - As of June 30, 2022, the company employed 23 full-time employees, an increase from 18 in 2021[197]. - Employee diversity includes 9 from Singapore, 13 from India, and 1 from the Greater China region in 2022[198]. - The company has invested additional resources to monitor health and safety risks for workers in hot climates due to climate change[194].

Revenue Performance - The solar power business generated revenue of approximately HKD 55,500,000 (around RMB 45,800,000) for the six months ended December 31, 2021, a decrease of 43.8% compared to HKD 98,800,000 (around RMB 86,700,000) for the same period in 2020[8]. - The distribution system business recorded revenue of approximately HKD 106,200,000 (around RMB 87,500,000) for the six months ended December 31, 2021, an increase of 55.5% from HKD 68,300,000 (around RMB 59,900,000) for the same period in 2020[9]. - The revenue from the solar power and distribution system businesses accounted for approximately 34.2% (HKD 55,500,000) and 65.4% (HKD 106,200,000) of the group's total revenue, respectively[11]. - For the six months ended December 31, 2021, total revenue from external customers was HKD 162,302,000, with contributions of HKD 618,000 from engineering services, HKD 55,534,000 from solar energy business, and HKD 106,150,000 from distribution system business[65]. - Total revenue for the six months ended December 31, 2021, was HKD 162,302,000, compared to HKD 168,688,000 for the same period in 2020, a decline of 3.1%[75]. Profitability and Losses - The group reported a gross profit of approximately HKD 12,400,000 for the six months ended December 31, 2021, down 41.6% from HKD 21,300,000 for the same period in 2020, with a gross margin decrease from 12.6% to 7.7%[13]. - The loss attributable to the owners of the company was approximately HKD 13,500,000 for the six months ended December 31, 2021, compared to a loss of HKD 7,500,000 for the same period in 2020[13]. - The pre-tax loss reported for the six months ended December 31, 2021, was HKD 13,503,000, compared to a loss of HKD 7,505,000 in the previous year[83]. - Basic and diluted loss per share was HKD 0.97, compared to HKD 0.54 for the same period in 2020[83]. Financial Position - As of December 31, 2021, the group's net current assets were approximately HKD 320,900,000, down from HKD 343,100,000 as of June 30, 2021[17]. - The group held cash and cash equivalents of approximately HKD 50,300,000 as of December 31, 2021, compared to HKD 75,100,000 as of June 30, 2021[17]. - The total assets of China Power decreased from HKD 424,857,000 as of June 30, 2021, to HKD 363,044,000 as of December 31, 2021[43]. - The net asset value of China Power decreased from HKD 344,331,000 as of June 30, 2021, to HKD 322,360,000 as of December 31, 2021[44]. - The company experienced a decrease in cash and cash equivalents, ending the period with HKD 50,296,000, down from HKD 73,993,000 at the end of 2020[47]. Expenses and Provisions - The expected credit loss provision increased by approximately HKD 5,000,000 to HKD 6,700,000 for the six months ended December 31, 2021, compared to HKD 1,800,000 for the same period in 2020[14]. - Administrative expenses remained stable at approximately HKD 11,300,000 for the six months ended December 31, 2021, compared to HKD 11,200,000 for the same period in 2020[15]. - Employee costs for China Power amounted to approximately HKD 8,200,000 during the review period, compared to HKD 5,300,000 for the six months ended December 31, 2020[37]. - The total remuneration for key management personnel for the six months ended December 31, 2021, was HKD 6,117,000, an increase of 68% compared to HKD 3,644,000 for the same period in 2020[115]. Investments and Financial Instruments - The group recorded dividend income from listed securities investments of HKD 37,250 during the six months ended December 31, 2021, compared to no income in the same period the previous year[29]. - The fair value loss on financial assets measured at fair value through profit or loss was HKD 1 million for the six months ended December 31, 2021, compared to a loss of HKD 8.2 million in the same period the previous year[29]. - The company has not used any financial instruments for hedging purposes as of December 31, 2021[23]. - The fair value of financial assets measured at fair value through profit or loss was HKD 5,786,000 as of December 31, 2021, a decrease from HKD 6,834,000 as of June 30, 2021, representing a decline of approximately 15.3%[108]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance code provisions except for the separation of the roles of Chairman and CEO, which is currently held by the same individual[120]. - The audit committee, established on December 9, 2013, consists of four non-executive directors, three of whom are independent, and is chaired by Mr. Leung Po-han[131]. - The company has confirmed that all directors have fully complied with the relevant standards of the securities trading code during the six months ended December 31, 2021[122]. Future Outlook - China Power plans to focus more resources on its distribution system business due to pressures on contract volume and profitability in the photovoltaic business[38]. - The company expects domestic business to return to normal development despite the impact of COVID-19[39]. - The company anticipates pressure on future cash-generating unit contracts and gross margins due to policy disruptions and industry consolidation in China[88].