Revenue and Profitability - Revenue for the fiscal year ending June 30, 2024, was HKD 160,732,000, representing an increase of 97% compared to HKD 81,518,000 in the previous year[1] - Gross profit for the same period was HKD 5,943,000, up from HKD 5,443,000, indicating a slight increase in profitability[1] - The solar energy business generated revenue of HKD 61,866 thousand in 2024, up from HKD 38,477 thousand in 2023, representing a growth of 60.9%[12] - The distribution system business reported revenue of HKD 98,866 thousand in 2024, compared to HKD 43,041 thousand in 2023, indicating an increase of 130.1%[12] - Total revenue for the company reached HKD 160,732 thousand in 2024, a significant rise from HKD 81,518 thousand in 2023, reflecting a growth of 96.7%[15] Losses and Financial Performance - The company reported a net loss of HKD 44,057,000 for the fiscal year 2024, an improvement from a net loss of HKD 53,110,000 in 2023[2] - Total comprehensive loss for the year was HKD 45,193,000, compared to HKD 68,460,000 in the previous year, showing a reduction in overall losses[2] - Basic and diluted loss per share for the year was HKD (53.0), an improvement from HKD (87.5) in the previous year[2] - The company reported a pre-tax loss of HKD 42,552 thousand for the year ending June 30, 2024, compared to a pre-tax loss of HKD 51,279 thousand for the previous year, showing an improvement of 17.5%[12] - The company reported a loss attributable to equity holders of approximately HKD 47,300,000 in 2024, compared to a loss of HKD 61,600,000 in 2023, indicating an improvement[38] Assets and Liabilities - Non-current assets increased to HKD 7,775,000 from HKD 3,360,000, reflecting significant investment in property, plant, and equipment[3] - Current assets decreased to HKD 219,500,000 from HKD 247,290,000, primarily due to changes in inventory and trade receivables[3] - The company's total equity decreased to HKD 151,744,000 from HKD 181,015,000, indicating a decline in shareholder value[4] - The total assets of the group as of June 30, 2024, were approximately HKD 227.3 million, a decrease of 9.3% compared to HKD 250.7 million as of June 30, 2023[47] - Total liabilities increased by 8.5% to approximately HKD 75.5 million as of June 30, 2024, compared to HKD 69.6 million as of June 30, 2023[48] Credit Losses and Receivables - The expected credit loss provision before segment performance for the solar energy business was HKD 1,441 thousand in 2024, down from HKD 2,408 thousand in 2023, a decrease of 40.2%[12] - The expected credit loss allowance for trade receivables was HKD 89,351,000 in 2024, compared to HKD 70,316,000 in 2023, indicating a rise of about 27.0%[25] - The company's trade receivables aged less than 30 days increased to HKD 25,168,000 in 2024 from HKD 18,204,000 in 2023, indicating improved collection efficiency[26] Employee and Operational Costs - The company incurred total employee benefits of HKD 17,899,000 in 2024, slightly increasing from HKD 17,095,000 in 2023, representing a growth of about 4.7%[19] - The gross profit margin for the fiscal year ending June 30, 2024, is reported at 275.1%[62] - The group's employee costs, including director remuneration, amounted to approximately HKD 17.9 million for the fiscal year ending June 30, 2024, compared to HKD 17.1 million for the fiscal year ending June 30, 2023[46] Financial Reporting and Compliance - The financial statements were prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[6] - The company anticipates that the application of new international financial reporting standards will not have a significant impact on its consolidated financial statements in the foreseeable future[9] - The company has not early adopted any new international financial reporting standards that have been issued but are not yet effective[8] Business Operations and Strategy - The company is engaged in the supply of solar photovoltaic components and equipment in China, indicating a focus on renewable energy markets[5] - The company expects to continue monitoring the performance of its solar energy and distribution system businesses separately for resource allocation and performance evaluation[10] - The company maintains confidence in the recovery of its business in China following the easing of social distancing measures[37] - The company aims to continue seeking good business opportunities to create value for its shareholders[37] Capital and Funding - The net proceeds from the 2023 placement amount to approximately HKD 2,900,000, which will be fully utilized for general operating funds[52] - The company completed a rights issue on May 8, 2024, raising net proceeds of approximately HKD 16,000,000[55] - The total amount utilized from the rights issue for general operating funds as of June 30, 2024, is HKD 3,800,000[55] - The company plans to extend the expected timeline for utilizing unutilized proceeds from the rights issue to June 2025[55] Dividends and Shareholder Communication - The board does not recommend the payment of a final dividend for the fiscal year ending June 30, 2024[72] - The preliminary annual results announcement will be published on the company's website and the Hong Kong Stock Exchange website[73] - The annual report for the fiscal year ending June 30, 2024, will be sent to shareholders in due course and will be available on the aforementioned websites[73]

Revenue Performance - The revenue from the solar power business for the six months ended December 31, 2023, was approximately HKD 14,300,000, a decrease from HKD 39,300,000 for the same period in 2022, due to fewer contracts being secured and delivered [6]. - The revenue from the distribution system for the six months ended December 31, 2023, was approximately HKD 48,700,000, an increase from HKD 25,200,000 for the same period in 2022, attributed to the gradual recovery from the pandemic [7]. - The company reported revenue of HKD 63,118,000 for the six months ended December 31, 2023, a decrease of 2.1% compared to HKD 64,452,000 in the same period of 2022 [52]. - The solar energy business generated revenue of HKD 14,392,000, while the distribution system business generated HKD 48,726,000, with the engineering services segment reporting no revenue [76]. - Revenue from solar photovoltaic components and equipment decreased to HKD 14,392,000 from HKD 36,554,000, a decline of approximately 60.7% year-over-year [86]. - Revenue from the provision of distribution systems increased to HKD 48,726,000 from HKD 25,154,000, representing an increase of approximately 93.2% year-over-year [86]. Financial Performance - The gross profit for the six months ended December 31, 2023, decreased by 61.9% to approximately HKD 2,300,000, with a gross profit margin dropping from 9.3% to 3.6% [10]. - 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 [10]. - The company incurred a loss before tax of HKD 23,336,000, compared to a loss of HKD 1,959,000 in the previous year, indicating a significant decline in performance [52]. - The net loss for the period was HKD 23,989,000, compared to a loss of HKD 3,213,000 in the prior year, reflecting a worsening financial situation [52]. - Basic and diluted loss per share was HKD 33.1, up from HKD 13.9 in the previous year, indicating increased losses per share [52]. - The company reported a significant increase in overdue trade receivables over 90 days, rising to HKD 8,585,000 as of December 31, 2023, from zero as of June 30, 2023 [117]. Assets and Liabilities - The net current assets as of December 31, 2023, were approximately HKD 158,500,000, down from HKD 179,800,000 as of June 30, 2023 [15]. - The total assets decreased to HKD 232,257,000 from HKD 247,290,000, showing a decline in current assets [53]. - The company's total equity as of December 31, 2023, was HKD 161,912,000, down from HKD 181,015,000 as of June 30, 2023 [55]. - The total liabilities as of December 31, 2023, were HKD 75,316,000, compared to HKD 69,635,000 as of June 30, 2023, reflecting an increase in liabilities [77][80]. - The expected credit loss provision for trade receivables increased to HKD 80,124,000 from HKD 70,316,000, an increase of approximately 13.9% [104]. Cash Flow and Financing - The cash and cash equivalents held by the group were approximately HKD 6,200,000 as of December 31, 2023, compared to HKD 13,700,000 as of June 30, 2023 [15]. - Cash flow from operating activities showed a net outflow of HKD 3,371,000 for the six months ended December 31, 2023, an improvement from a net outflow of HKD 33,125,000 in the previous year [58]. - The company’s financing activities resulted in a net cash outflow of HKD 2,525,000 for the six months ended December 31, 2023, compared to an inflow of HKD 43,367,000 in the previous year [58]. - The company’s bank borrowings decreased to HKD 3,866,000 as of December 31, 2023, from HKD 10,815,000 as of June 30, 2023 [127]. Corporate Governance - The company has adhered to corporate governance codes and is considering the feasibility of separating the roles of Chairman and CEO [34][35]. - The company has appointed three independent non-executive directors, thus complying with Listing Rule 3.10(1) which requires at least three independent non-executive directors [40]. - The audit committee consists of three members, all independent non-executive directors, with one having professional accounting qualifications, complying with Listing Rule 3.21 [40]. - The company has established a remuneration committee chaired by an independent non-executive director, adhering to Listing Rule 3.25 [40]. Strategic Outlook - The company remains confident in the recovery of its business in China despite ongoing pressures in the solar energy sector due to government policies [31]. - The company aims to continue seeking good business opportunities to enhance shareholder value [32]. - The company continues to focus on expanding its solar photovoltaic components and equipment supply business in China, as well as power engineering services in Singapore [59].

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].

[Company Information](index=3&type=section&id=Company%20Information) This section provides fundamental corporate information for Cover-Tech Holdings Limited and its subsidiaries, covering key administrative and governance details like board members, committees, auditors, and principal bankers - The Board of Directors comprises executive directors Mr. Lau Yim Shing (Chairman) and Mr. Yiu Yun Hung, non-executive director Mr. Tam Tak Wah, and independent non-executive directors Mr. Leung Po Hon, Mr. Li Jin, and Dr. Lo Hiu Tung[5](index=5&type=chunk) - Mr. Leung Po Hon chairs the Audit Committee, Mr. Lau Yim Shing chairs the Nomination Committee, and Mr. Leung Po Hon chairs the Remuneration Committee[5](index=5&type=chunk) - The company's auditor is BDO Limited, with principal bankers including The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank (Singapore) Limited[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) This section elaborates on Cover-Tech Holdings Limited's business performance, financial position, capital structure, investment activities, and future outlook during the review period, showing stable solar power business, significant growth in power distribution systems, and improved gross profit despite pandemic challenges [Business Review](index=4&type=section&id=Business%20Review) The Group's business performance during the six months ended December 31, 2020, was affected by the pandemic, but the China photovoltaic market and solar power business remained relatively stable, with the Group flexibly adjusting strategy to significantly grow its power distribution system business - The COVID-19 pandemic had widespread negative economic impacts, but China's photovoltaic market and the Group's solar power business remained relatively stable and resilient from the second half of 2020[7](index=7&type=chunk) - The Group adopted a flexible business strategy in the first half of 2020, increasing its involvement in providing power distribution systems[7](index=7&type=chunk) [Solar Power Business](index=4&type=section&id=Solar%20Power%20Business) The solar power business, primarily supplying and installing solar photovoltaic components and equipment, saw a slight increase in revenue and maintained a stable contract volume during the review period Solar Power Business Revenue (For the six months ended December 31) | Indicator | 2020 (HKD) | 2019 (HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 98,800,000 | 95,100,000 | Slightly increased | - The Group continued to secure and deliver a stable volume of contracts during the period[8](index=8&type=chunk) [Power Distribution Systems](index=4&type=section&id=Power%20Distribution%20Systems) Revenue from power distribution systems significantly increased, mainly due to the Group commencing this service in November 2019, resulting in a lower comparative base in the prior period Power Distribution Systems Revenue (For the six months ended December 31) | Indicator | 2020 (HKD) | 2019 (HKD) | Growth | | :--- | :--- | :--- | :--- | | Revenue | 68,300,000 | 18,500,000 | 269.2% | - The increase was due to the Group commencing power distribution systems services in November 2019, meaning the prior period's comparison was not based on full-period figures[9](index=9&type=chunk) [Electrical Engineering Services](index=4&type=section&id=Electrical%20Engineering%20Services) Electrical engineering services in Singapore generated the lowest revenue, and despite some growth, no new projects were secured and no uncompleted contracts remained due to intense market competition and a conservative bidding strategy Electrical Engineering Services Revenue (For the six months ended December 31) | Indicator | 2020 (HKD) | 2019 (HKD) | Growth | | :--- | :--- | :--- | :--- | | Revenue | 1,600,000 | 593,000 | 169.8% | - Due to intense competition in Singapore's public housing development projects and the Group's conservative bidding strategy for new projects, no new projects were secured and no uncompleted contracts remained for the six months ended December 31, 2020[10](index=10&type=chunk) [Financial Review](index=4&type=section&id=Financial%20Review) The Group achieved significant revenue growth, doubled gross profit, and substantially narrowed losses during the review period, primarily driven by increased contributions from the power distribution system business and improved profitability in both solar power and power distribution segments [Revenue](index=4&type=section&id=Revenue) The majority of the Group's revenue, totaling 99.1%, was derived from its solar power business and power distribution system business in China Revenue Composition (For the six months ended December 31, 2020) | Business | Revenue (HKD) | % of Total Revenue | | :--- | :--- | :--- | | China Solar Power Business | 98,800,000 | 58.6% | | China Power Distribution Systems Business | 68,300,000 | 40.5% | - For the six months ended December 31, 2020, the majority of the Group's revenue was derived from its solar power business and power distribution systems business in the People's Republic of China ("China")[11](index=11&type=chunk) [Operating Results](index=5&type=section&id=Operating%20Results) The Group's gross profit increased by **103%** year-on-year, with the gross margin rising to **12.6%**, primarily due to increased contributions from the higher-margin power distribution system business, leading to a significant reduction in loss attributable to owners and a decrease in basic loss per share Operating Results Overview (For the six months ended December 31) | Indicator | 2020 (HKD) | 2019 (HKD) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 21,300,000 | 10,500,000 | 103% Growth | | Gross Margin | 12.6% | 9.18% | 3.42 percentage points increase | | Loss Attributable to Owners of the Company | (7,500,000) | (18,400,000) | 59.2% Loss narrowed | | Basic Loss Per Share | (0.54) HK cents | (1.32) HK cents | 59.1% Loss narrowed | - The increase in gross margin was primarily attributable to the increased contribution from the power distribution systems business, which has a relatively higher gross margin[12](index=12&type=chunk) - The change was mainly due to the combined effect of an improvement in the solar power business segment profit to approximately **HKD 11,600,000** and an increase in the power distribution systems segment profit to approximately **HKD 7,400,000**[12](index=12&type=chunk) [Other Income and (Losses)](index=5&type=section&id=Other%20Income%20and%20(Losses)) Net other income and losses significantly decreased, primarily due to a narrower fair value loss on financial assets at fair value through profit or loss Net Other Income and Losses (For the six months ended December 31) | Indicator | 2020 (HKD) | 2019 (HKD) | Change | | :--- | :--- | :--- | :--- | | Net Loss | (6,700,000) | (13,900,000) | 51.8% Loss narrowed | | Fair Value Loss on Financial Assets at Fair Value Through Profit or Loss | (8,200,000) | (10,900,000) | 24.8% Loss narrowed | - This was mainly due to a fair value loss of approximately **HKD 8,200,000** on financial assets at fair value through profit or loss for the six months ended December 31, 2020, compared to a loss of **HKD 10,900,000** for the six months ended December 31, 2019[13](index=13&type=chunk) [Administrative Expenses](index=5&type=section&id=Administrative%20Expenses) Administrative expenses remained largely stable during the review period Administrative Expenses (For the six months ended December 31) | Indicator | 2020 (HKD) | 2019 (HKD) | | :--- | :--- | :--- | | Administrative Expenses | 11,200,000 | 11,400,000 | - Administrative expenses for the six months ended December 31, 2020, remained largely stable at approximately **HKD 11,200,000**[14](index=14&type=chunk) [Taxation](index=5&type=section&id=Taxation) Net income tax expense significantly increased, primarily due to higher profits from the solar power business and power distribution systems in China Net Income Tax Expense (For the six months ended December 31) | Indicator | 2020 (HKD) | 2019 (HKD) | Growth | | :--- | :--- | :--- | :--- | | Net Income Tax Expense | 4,800,000 | 400,000 | 1100% | - The main reason was the increase in profits from the solar power business and power distribution systems in China[15](index=15&type=chunk) [Liquidity, Financial Resources, and Capital Gearing](index=5&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Gearing) The Group's net current assets increased, while cash and cash equivalents slightly decreased, and the gearing ratio was not applicable due to trade and other payables being less than cash and cash equivalents, indicating a sound financial position Liquidity Overview (As at December 31) | Indicator | 2020 (HKD) | June 30, 2020 (HKD) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 357,100,000 | 335,600,000 | 6.4% Growth | | Cash and Cash Equivalents | 74,000,000 | 86,700,000 | 14.7% Decrease | - As trade and other payables were less than cash and cash equivalents, the Group's gearing ratio was not applicable, indicating a sound financial position[16](index=16&type=chunk) [Capital Structure](index=6&type=section&id=Capital%20Structure) This section reviews the 2019 placing, which raised additional funds for the Group's business operations, strengthened its financial position, and whose proceeds were fully utilized for general working capital [2019 Placing](index=6&type=section&id=2019%20Placing) The 2019 placing successfully allotted 204,680,000 new shares, generating net proceeds of approximately **HKD 36.9 million**, which were fully used for the Group's general working capital, including human resources, office utility expenses, other general expenses, and solar power business working capital - The 2019 placing involved 204,680,000 new shares at a placing price of **HKD 0.183** per share, representing a discount of approximately **8.5%** to the then closing price[18](index=18&type=chunk) 2019 Placing Proceeds Utilization (As at December 31, 2020) | Purpose | Amount Utilized (HKD Million) | | :--- | :--- | | Human Resources | 8.2 | | Office Utility Expenses | 2.5 | | Other General Expenses | 6.2 | | General Working Capital for Solar Power Business | 20.0 | | **Total** | **36.9** | - The net proceeds of approximately **HKD 36,900,000** from the 2019 placing were used as general working capital for the Group[19](index=19&type=chunk) [Capital Structure, Exchange Rate Fluctuation Risk, and Related Hedging](index=7&type=section&id=Capital%20Structure%2C%20Exchange%20Rate%20Fluctuation%20Risk%2C%20and%20Related%20Hedging) The Group primarily funds its operations through internal cash flow, internal resources, and shareholders' equity, and despite operating in multiple currencies, faced no significant exchange rate fluctuation difficulties or hedging activities during the review period, but will closely monitor future risks - The Group primarily funds its operations through internally generated cash flow, its internal resources, and shareholders' equity[22](index=22&type=chunk) - For the six months ended December 31, 2020, the Group's operations or liquidity did not face any significant difficulties or impacts due to currency exchange rate fluctuations, and no financial instruments were used for hedging purposes[22](index=22&type=chunk) [Capital Management](index=7&type=section&id=Capital%20Management) The Group's capital management objectives are to maintain a good credit rating and sound capital ratios to support business development and maximize shareholder value, with capital structure comprising equity and reserves monitored by the gearing ratio - The Group's primary objectives of capital management are to ensure it maintains a good credit rating and sound capital ratios to support its business and maximize shareholder value[23](index=23&type=chunk) - The Group monitors its capital using a gearing ratio, which is net debt/cash divided by equity attributable to owners of the Company, and seeks to maintain a stable gearing ratio[24](index=24&type=chunk) [Pledged Assets](index=7&type=section&id=Pledged%20Assets) The Group had no pledged assets as of December 31, 2020, and June 30, 2020 - As of December 31, 2020, and June 30, 2020, the Group had no pledged assets[25](index=25&type=chunk) [Capital Expenditure and Commitments](index=7&type=section&id=Capital%20Expenditure%20and%20Commitments) The Group incurred no significant capital expenditure or material contracted but unprovided capital commitments during the review period - For the six months ended December 31, 2020, and December 31, 2019, the Group incurred no significant capital expenditure[26](index=26&type=chunk) - As of December 31, 2020, and June 30, 2020, the Group had no material contracted but unprovided capital commitments in the condensed consolidated financial statements[26](index=26&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries and Associates](index=8&type=section&id=Significant%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) The Group holds certain listed securities as financial assets at fair value through profit or loss, recording a fair value loss of **HKD 8.2 million** during the review period, mainly due to share price declines in Cornerstone Technologies and Zhihao Development, offset by an increase in Star Asia Holdings, while remaining cautiously optimistic about the long-term prospects of the Hong Kong securities industry Fair Value Loss on Financial Assets at Fair Value Through Profit or Loss (For the six months ended December 31) | Indicator | 2020 (HKD) | 2019 (HKD) | Change | | :--- | :--- | :--- | :--- | | Fair Value Loss | (8,200,000) | (10,900,000) | 24.8% Loss narrowed | - The fair value loss primarily resulted from a **35.1%** decrease in the share price of Zhihao Development Holdings Limited and an **86.4%** decrease in the share price of Cornerstone Technologies Holdings Limited, partially offset by a **183.3%** increase in the share price of Star Asia Holdings Limited[27](index=27&type=chunk) - The Company is optimistic about the performance of the Hong Kong securities industry and thus positive about the prospects of these Hong Kong financial service providers[29](index=29&type=chunk) - China Baoli Technologies Holdings Limited's shares have been suspended from trading, and the Group assessed its fair value as minimal by reference to its adjusted net asset value, closely monitoring progress towards resumption of trading[31](index=31&type=chunk) [Contingent Liabilities](index=9&type=section&id=Contingent%20Liabilities) The Group had no other contingent liabilities as of December 31, 2020, except as disclosed in note 26 to the condensed consolidated financial statements - As of December 31, 2020, the Group had no other contingent liabilities except as disclosed in note 26 to the condensed consolidated financial statements[33](index=33&type=chunk) [Employees and Remuneration Policy](index=9&type=section&id=Employees%20and%20Remuneration%20Policy) As of December 31, 2020, the Group had 14 employees, with employee costs slightly decreasing, and remuneration policy based on Group performance and individual performance, offering medical and retirement benefits Employees and Remuneration Overview (For the six months ended December 31) | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 14 | 14 | Stable | | Employee Costs (HKD) | 5,300,000 | 5,400,000 | 1.9% Decrease | - Employee remuneration, including salaries and discretionary bonuses, is determined based on the Group's performance and individual performance, with medical and retirement benefit schemes provided for eligible personnel[34](index=34&type=chunk) [Prospects](index=9&type=section&id=Prospects) The Group anticipates accelerated transformation and consolidation in China's photovoltaic industry, benefiting industry leaders, and will continue to expand its power distribution system business and solar power plant operation management, while actively seeking new business opportunities with return potential to enhance shareholder value - The transformation and consolidation of China's photovoltaic industry are expected to benefit leading industry players, and the Group has successfully launched its power distribution systems business and will continue to seek further expansion[35](index=35&type=chunk)[36](index=36&type=chunk) - The Group also continues to seek opportunities for further expansion in its power distribution systems business and the operation and management of solar power plants to strengthen its core businesses[36](index=36&type=chunk) - Looking ahead, the Group will continue to identify business opportunities with return potential to enhance shareholder value[37](index=37&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's financial performance for the six months ended December 31, 2020, showing significant revenue growth, doubled gross profit, a substantial narrowing of loss for the period, and a swing from total comprehensive expense to income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Overview (For the six months ended December 31) | Indicator | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 168,688 | 114,218 | 47.7% Growth | | Gross Profit | 21,279 | 10,482 | 103.0% Growth | | Loss for the Period | (1,809) | (16,408) | 89.0% Loss narrowed | | Loss Attributable to Owners of the Company | (7,505) | (18,374) | 59.2% Loss narrowed | | Total Comprehensive Income (Expense) for the Period | 21,915 | (24,437) | Swung from expense to income | | Basic and Diluted Loss Per Share | (0.54) HK cents | (1.32) HK cents | 59.1% Loss narrowed | [Condensed Consolidated Statement of Financial Position](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's financial position as of December 31, 2020, showing increases in total assets and net assets, stable net current assets, and a decrease in total liabilities Condensed Consolidated Statement of Financial Position Overview (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 12,657 | 13,001 | 2.6% Decrease | | Total Current Assets | 404,348 | 403,228 | 0.3% Growth | | Total Current Liabilities | 47,219 | 67,593 | 30.1% Decrease | | Net Current Assets | 357,129 | 335,635 | 6.4% Growth | | Net Assets | 369,525 | 347,610 | 6.3% Growth | | Total Equity | 369,525 | 347,610 | 6.3% Growth | [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement outlines the Group's equity movements for the six months ended December 31, 2020, indicating an increase in total equity attributable to owners of the Company and non-controlling interests, primarily driven by the positive swing in total comprehensive income for the period Condensed Consolidated Statement of Changes in Equity Overview (As at December 31) | Indicator | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | 304,430 | 343,418 | 11.4% Decrease | | Non-controlling Interests | 65,095 | 62,679 | 3.9% Growth | | Total Equity | 369,525 | 406,097 | 9.0% Decrease | | Total Comprehensive Income (Expense) for the Period | 21,915 | (24,437) | Swung from expense to income | - The exchange fluctuation reserve changed from **(HKD 19,534) thousand** as of December 31, 2019, to **HKD 5,498 thousand** as of December 31, 2020, reflecting a positive impact from exchange differences on translation of overseas operations[43](index=43&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the Group's cash flow for the six months ended December 31, 2020, showing reduced cash outflow from operating activities, a significant decrease in cash outflow from investing activities, cash outflow from financing activities primarily for lease liability repayment, and a decrease in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows Overview (For the six months ended December 31) | Indicator | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flows Used in Operating Activities | (18,332) | (23,935) | 23.4% Decrease in outflow | | Net Cash Flows From Investing Activities | 192 | 3,267 | 94.1% Decrease | | Net Cash Flows Used in Financing Activities | (709) | – | From none to outflow | | Net Decrease in Cash and Cash Equivalents | (18,849) | (20,688) | 9.0% Decrease | | Cash and Cash Equivalents at End of Period | 73,993 | 77,056 | 4.0% Decrease | [Notes to the Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering company and group information, accounting policies, segment information, revenue, various expenses, financial instruments, related party transactions, and contingent liabilities, offering essential context and details for understanding the financial statements [1. Company and Group Information](index=15&type=section&id=1.%20Company%20and%20Group%20Information) This note introduces Cover-Tech Holdings Limited's registration information, principal business activities, details the accounting treatment for the change in functional and presentation currency from SGD to HKD, and provides information on major subsidiaries - The Company is incorporated in the Cayman Islands and primarily engaged in electrical engineering services in Singapore, supply and installation of solar photovoltaic components and equipment in China, and power distribution systems business[46](index=46&type=chunk) - Effective June 30, 2020, the Company's functional currency changed from Singapore Dollars to Hong Kong Dollars, and the presentation currency also changed to Hong Kong Dollars, with comparative figures restated to reflect this change in the Group's presentation currency[47](index=47&type=chunk) [Functional and Presentation Currency Change](index=15&type=section&id=Functional%20and%20Presentation%20Currency%20Change) The Company's functional and presentation currency changed from SGD to HKD effective June 30, 2020, to reflect the primary operating environment and convenience for shareholders, with comparative figures restated according to IAS 21 - The Company's functional currency changed from Singapore Dollars to Hong Kong Dollars, and the presentation currency also changed to Hong Kong Dollars, effective June 30, 2020[47](index=47&type=chunk) - Comparative figures have been restated, with assets and liabilities translated at the closing rate at the reporting date, income and expenses at the average exchange rate for the period, and share capital, share premium, and reserves at historical exchange rates[47](index=47&type=chunk) [Information on Principal Subsidiaries](index=16&type=section&id=Information%20on%20Principal%20Subsidiaries) This note lists the principal subsidiaries' places of incorporation and business, issued share capital, percentage of equity interest held by the Company, and principal activities, including investment holding, financing, solar power business, power distribution systems, and electrical engineering services companies in Hong Kong, BVI, China, and Singapore - Principal subsidiaries include Crown Asia Investment Limited (Hong Kong, investment holding), Kaihe New Energy (Xuyi) Co Ltd (China, supply and installation of solar photovoltaic components and equipment), and Strike Electrical Engineering Pte Ltd (Singapore, electrical engineering services)[49](index=49&type=chunk) [2. Basis of Preparation](index=17&type=section&id=2.%20Basis%20of%20Preparation) This interim financial statement has been prepared in accordance with IAS 34 and should be read in conjunction with the Group's annual financial statements - The Group's unaudited condensed consolidated financial statements for the six months ended December 31, 2020, have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[51](index=51&type=chunk) [Basis of Consolidation](index=17&type=section&id=Basis%20of%20Consolidation) The interim financial statements include the financial statements of the Company and its subsidiaries for the reporting period, with all intra-group transactions fully eliminated, and investments in associates and joint ventures accounted for using the equity method - The interim financial statements include the financial statements of the Company and its subsidiaries for the six months ended December 31, 2020, with all intra-group balances, income, and expenses fully eliminated[52](index=52&type=chunk)[53](index=53&type=chunk) [3. Principal Accounting Policies](index=17&type=section&id=3.%20Principal%20Accounting%20Policies) This interim financial statement is prepared under the historical cost convention and presented in HKD, with accounting policies consistent with the prior year's financial statements, except for the application of new and revised IFRSs - The interim financial statements are prepared under the historical cost convention, except for financial assets at fair value through profit or loss, and are presented in Hong Kong Dollars, with all values rounded to the nearest thousand[54](index=54&type=chunk) [Application of New and Revised IFRSs and Interpretations](index=18&type=section&id=Application%20of%20New%20and%20Revised%20IFRSs%20and%20Interpretations) The Group has first applied several new and revised IFRSs effective on or after July 1, 2020, but directors do not expect them to have a significant impact on the consolidated financial statements - The Group has first applied amendments to IAS 1 and IAS 8, amendments to IFRS 3, amendments to IFRS 9, amendments to IAS 39 and IFRS 7, and amendments to IFRS 16[56](index=56&type=chunk) - The directors of the Company do not expect the adoption of the above new IFRSs, IFRS amendments, and IFRS interpretations to have any significant impact on the consolidated financial statements in the foreseeable future[56](index=56&type=chunk) [Impact of Issued but Not Yet Effective IFRSs](index=18&type=section&id=Impact%20of%20Issued%20but%20Not%20Yet%20Effective%20IFRSs) The Group has not yet applied several IFRSs that have been issued but are not yet effective, which will become effective in future annual periods - The Group has not yet applied several issued but not yet effective IFRSs for the six months ended December 31, 2020, including amendments to IAS 1, amendments to IAS 16, amendments to IAS 37, amendments to IFRS 3, amendments to IFRS 10 and IAS 28, and IFRS 17[57](index=57&type=chunk) [4. Critical Accounting Judgments and Estimates](index=19&type=section&id=4.%20Critical%20Accounting%20Judgments%20and%20Estimates) The preparation of interim financial statements requires management to make judgments, estimates, and assumptions affecting the reported amounts of revenue, expenses, assets, and liabilities, and these uncertainties may lead to significant adjustments to carrying amounts in future accounting periods - The preparation of interim financial statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of revenue, expenses, assets, and liabilities, and the accompanying disclosures[60](index=60&type=chunk) [5. Segment Information](index=19&type=section&id=5.%20Segment%20Information) The Group is organized into three reportable operating segments based on products and services: electrical engineering services, solar power business, and power distribution systems, with management independently monitoring each segment's performance for resource allocation and performance assessment - The Group's business units are organized based on their products and services, comprising three reportable operating segments: providing electrical engineering services, supplying and installing solar photovoltaic components and equipment, and providing power distribution systems[61](index=61&type=chunk)[63](index=63&type=chunk) - Management separately monitors the performance of the electrical engineering services, solar power business, and power distribution systems segments to make decisions on resource allocation and performance assessment[61](index=61&type=chunk) [For the Six Months Ended December 31, 2020](index=20&type=section&id=For%20the%20Six%20Months%20Ended%20December%2031%2C%202020) For the six months ended December 31, 2020, the solar power business and power distribution systems were the primary sources of revenue and profit, while electrical engineering services recorded a loss Segment Revenue and Results (For the six months ended December 31, 2020) | Segment | Revenue (HKD Thousand) | Results (HKD Thousand) | | :--- | :--- | :--- | | Engineering Services | 1,647 | (933) | | Solar Power Business | 98,782 | 11,624 | | Power Distribution Systems Business | 68,259 | 7,382 | | **Total** | **168,688** | **18,073** | [As at December 31, 2020](index=20&type=section&id=As%20at%20December%2031%2C%202020) As of December 31, 2020, the solar power business and power distribution systems had higher segment assets, while liabilities were relatively balanced across segments Segment Assets and Liabilities (As at December 31, 2020) | Segment | Assets (HKD Thousand) | Liabilities (HKD Thousand) | | :--- | :--- | :--- | | Engineering Services | 58,166 | 4,761 | | Solar Power Business | 191,707 | 26,468 | | Power Distribution Systems Business | 116,221 | 13,239 | | **Total** | **366,094** | **44,468** | [For the Six Months Ended December 31, 2019](index=21&type=section&id=For%20the%20Six%20Months%20Ended%20December%2031%2C%202019) For the six months ended December 31, 2019, the solar power business was the main revenue source, power distribution systems were nascent, and electrical engineering services recorded a loss Segment Revenue and Results (For the six months ended December 31, 2019) | Segment | Revenue (HKD Thousand) | Results (HKD Thousand) | | :--- | :--- | :--- | | Engineering Services | 593 | (2,289) | | Solar Power Business | 95,076 | 3,597 | | Power Distribution Systems Business | 18,549 | 1,744 | | **Total** | **114,218** | **3,052** | [As at June 30, 2020](index=21&type=section&id=As%20at%20June%2030%2C%202020) As of June 30, 2020, the power distribution system business had the highest segment assets, and both solar power and power distribution systems had higher liabilities Segment Assets and Liabilities (As at June 30, 2020) | Segment | Assets (HKD Thousand) | Liabilities (HKD Thousand) | | :--- | :--- | :--- | | Engineering Services | 69,252 | 6,473 | | Solar Power Business | 108,634 | 33,909 | | Power Distribution Systems Business | 181,199 | 23,813 | | **Total** | **359,085** | **64,195** | [Geographical Information](index=22&type=section&id=Geographical%20Information) The Group's revenue primarily originated from Mainland China, where its non-current assets are also mainly located Revenue from External Customers (For the six months ended December 31) | Region | 2020 (HKD Thousand) | 2019 (HKD Thousand) | | :--- | :--- | :--- | | Singapore | 1,647 | 593 | | Mainland China | 167,041 | 113,625 | | **Total** | **168,688** | **114,218** | Non-current Assets (As at December 31) | Region | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong | 2,088 | 2,952 | | Singapore | 88 | 390 | | China | 10,481 | 9,659 | | **Total** | **12,657** | **13,001** | [6. Revenue](index=23&type=section&id=6.%20Revenue) Revenue represents the appropriate portion of contract revenue from construction contracts and the net invoiced value of goods sold and services rendered, after deducting provisions for returns and trade discounts, with the current period's revenue primarily from supplying and installing solar photovoltaic components and equipment and providing power distribution systems Revenue Composition (For the six months ended December 31) | Revenue Source | 2020 (HKD Thousand) | 2019 (HKD Thousand) | | :--- | :--- | :--- | | Providing Electrical Engineering Services | 1,647 | 593 | | Supplying and Installing Solar Photovoltaic Components and Equipment | 98,782 | 95,076 | | Providing Power Distribution Systems | 68,259 | 18,549 | | **Total** | **168,688** | **114,218** | - Revenue refers to the appropriate portion of contract revenue from construction contracts and the net invoiced value of goods sold and services rendered for each reporting period, after deducting provisions for returns and trade discounts[73](index=73&type=chunk) [7. Other Income and (Losses) Net](index=23&type=section&id=7.%20Other%20Income%20and%20(Losses)%20Net) Net other income and losses significantly decreased, primarily due to a narrower fair value loss on financial assets at fair value through profit or loss, alongside an increase in interest income from loan receivables Other Income and Losses Net Breakdown (For the six months ended December 31) | Indicator | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Exchange Differences | 388 | (813) | Swung from loss to income | | Bank Interest Income | 26 | 138 | 81.2% Decrease | | Interest on Loan Receivables | 1,679 | 1,201 | 39.8% Growth | | Net Fair Value Loss on Financial Assets at Fair Value Through Profit or Loss | (8,165) | (10,941) | 25.3% Loss narrowed | | Net Provision for Expected Credit Losses on Financial Assets Measured at Amortized Cost | (1,803) | (3,762) | 52.1% Loss narrowed | | **Total** | **(6,713)** | **(13,914)** | 51.8% Loss narrowed | [8. Finance Costs](index=24&type=section&id=8.%20Finance%20Costs) Finance costs primarily include interest on lease liabilities and bank charges, with a significant increase in the current period mainly due to the inception of interest on lease liabilities Finance Costs Breakdown (For the six months ended December 31) | Indicator | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Interest on Lease Liabilities | 82 | – | New | | Bank Charges | 12 | 10 | 20.0% Growth | | **Total** | **94** | **10** | 840.0% Growth | [9. (Profit) / Loss Before Tax](index=24&type=section&id=9.%20(Profit)%20%2F%20Loss%20Before%20Tax) The Group's profit before tax swung from a loss to a profit, influenced by factors such as cost of goods and services provided, employee benefits, depreciation expenses, and fair value loss on financial assets at fair value through profit or loss (Profit) / Loss Before Tax Breakdown (For the six months ended December 31) | Indicator | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Auditor's Remuneration | 842 | 851 | 1.1% Decrease | | Depreciation Expense (Plant and Equipment) | 181 | 491 | 63.1% Decrease | | Depreciation Expense (Right-of-use Assets) | 737 | – | New | | Cost of Goods and Services Provided | 146,295 | 103,602 | 41.2% Growth | | Employee Benefits | 5,332 | 5,427 | 1.8% Decrease | | Net Fair Value Loss on Financial Assets at Fair Value Through Profit or Loss | 8,165 | 10,941 | 25.3% Decrease | [10. Income Tax Expense](index=25&type=section&id=10.%20Income%20Tax%20Expense) The Group's income tax expense significantly increased, primarily from taxable profits in China and Singapore, particularly due to rising profits in the China solar power business and power distribution systems, with this note also explaining Hong Kong's two-tiered profits tax system and China's corporate income tax policies Income Tax Expense (For the six months ended December 31) | Indicator | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Current Period Expense (China and Singapore) | 4,751 | 425 | 1100% Growth | | **Total** | **4,751** | **425** | 1100% Growth | - The income tax expense was mainly due to increased profits from the solar power business and power distribution systems in China[15](index=15&type=chunk) - Hong Kong profits tax operates under a two-tiered system, with the first **HKD 2,000,000** of assessable profits taxed at **8.25%** and profits above this amount at **16.5%**; Chinese subsidiaries are subject to corporate income tax at **25%**[79](index=79&type=chunk) [11. Basic and Diluted Loss Per Share](index=26&type=section&id=11.%20Basic%20and%20Diluted%20Loss%20Per%20Share) The Group's basic and diluted loss per share significantly narrowed, with no potentially dilutive ordinary shares outstanding during the period Basic and Diluted Loss Per Share (For the six months ended December 31) | Indicator | 2020 (HKD Thousand/Thousand Shares/HK Cents) | 2019 (HKD Thousand/Thousand Shares/HK Cents) | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Equity Holders of the Company | (7,505) | (18,374) | 59.2% Loss narrowed | | Weighted Average Number of Ordinary Shares in Issue | 1,390,280 | 1,390,280 | Stable | | Basic and Diluted Loss Per Share | (0.54) | (1.32) | 59.1% Loss narrowed | - During the period, the Group had no potentially dilutive ordinary shares in issue[81](index=81&type=chunk) [12. Dividends](index=26&type=section&id=12.%20Dividends) No dividends were declared by the Group for the six months ended December 31, 2020 - No dividends were declared for the six months ended December 31, 2020[83](index=83&type=chunk) [13. Goodwill](index=27&type=section&id=13.%20Goodwill) This note details the cost, accumulated impairment losses, and net carrying amount of goodwill, which stood at **HKD 10,481 thousand** as of December 31, 2020, with no impairment loss recognized after assessment Goodwill Net Carrying Amount (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | | :--- | :--- | :--- | | Net Carrying Amount | 10,481 | 9,659 | - Goodwill is allocated to the solar power cash-generating unit for impairment testing, and its recoverable amount is determined based on value-in-use calculations, using cash flow forecasts from financial budgets approved by senior management for a four-year period[86](index=86&type=chunk) - As the recoverable amount of the cash-generating unit attributable to owners of the Company, measured by value-in-use, was higher than its carrying amount as of December 31, 2020, no impairment loss was recognized on the net carrying amount of goodwill as of December 31, 2020[86](index=86&type=chunk) [14. Plant and Equipment](index=28&type=section&id=14.%20Plant%20and%20Equipment) This note presents the changes in the net carrying amount of plant and equipment, including additions, disposals, depreciation, and exchange adjustments Plant and Equipment Net Carrying Amount (As at December 31) | Indicator | 2020 (HKD Thousand) | 2019 (HKD Thousand) | | :--- | :--- | :--- | | Net Carrying Amount | 334 | 978 | - The net carrying amount of plant and equipment decreased from **HKD 668 thousand** as of July 1, 2020, to **HKD 334 thousand** as of December 31, 2020, primarily due to depreciation and disposals[87](index=87&type=chunk) [15. Right-of-use Assets](index=28&type=section&id=15.%20Right-of-use%20Assets) This note provides the cost, accumulated depreciation, and net carrying amount of right-of-use assets for leased self-occupied properties Right-of-use Assets Net Carrying Amount (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | | :--- | :--- | :--- | | Net Carrying Amount | 1,842 | 3,579 | - The net carrying amount of right-of-use assets decreased from **HKD 3,579 thousand** as of June 30, 2020, to **HKD 1,842 thousand** as of December 31, 2020, mainly due to a depreciation charge of **HKD 737 thousand** during the period[88](index=88&type=chunk) [16. Trade Receivables, Deposits, and Other Receivables](index=29&type=section&id=16.%20Trade%20Receivables%2C%20Deposits%2C%20and%20Other%20Receivables) This note details the composition and aging analysis of trade receivables, deposits, and other receivables, showing an increase in total trade receivables, with most due within 30 days Total Trade Receivables, Deposits, and Other Receivables (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Trade Receivables, Deposits, and Other Receivables | 247,973 | 231,134 | 7.3% Growth | Trade Receivables Aging Analysis (As at December 31) | Aging | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | | :--- | :--- | :--- | | Less than 30 days | 108,645 | 20,790 | | 31 to 60 days | 18,196 | 76,872 | | 61 to 90 days | 49,884 | 19,213 | | 91 to 180 days | 7,843 | 74,301 | | Over 180 days | 54,216 | 37,149 | | **Total** | **238,784** | **228,325** | - Trade receivables are non-interest bearing and generally have credit terms ranging from **120 to 180 days**[89](index=89&type=chunk) [17. Contract Assets](index=30&type=section&id=17.%20Contract%20Assets) Contract assets primarily relate to rights to consideration for work completed but not yet billed, with a decrease in contract assets during the period and no expected credit loss provision recognized Contract Assets (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Contract Assets | 6,171 | 10,956 | 43.7% Decrease | - Contract assets primarily relate to the rights of subsidiaries Strike Singapore and Reston New Energy to consideration for work completed but not yet billed as of the reporting date[92](index=92&type=chunk) - No provision for expected credit losses was recognized for the period ended December 31, 2020[92](index=92&type=chunk) [18. Inventories](index=31&type=section&id=18.%20Inventories) This note indicates that the Group's inventories primarily consist of raw materials, which are small in amount and slightly increased Inventories (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Raw Materials | 89 | 53 | 67.9% Growth | [19. Prepayments](index=31&type=section&id=19.%20Prepayments) This note presents the Group's prepayments, which have increased in amount Prepayments (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Prepayments | 46,478 | 31,793 | 46.2% Growth | [20. Financial Assets at Fair Value Through Profit or Loss](index=31&type=section&id=20.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) This note details the Group's financial assets at fair value through profit or loss, primarily equity securities listed in Hong Kong, whose market value significantly declined during the period, resulting in fair value losses Financial Assets at Fair Value Through Profit or Loss (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Equity Securities Listed in Hong Kong | 4,924 | 13,089 | 62.4% Decrease | Fair Value Changes of Trading Instruments (For the year ended December 31) | Company Name | 2020 (HKD Thousand) | 2019 (HKD Thousand) | | :--- | :--- | :--- | | Cornerstone Technologies Holdings Limited | (6,333) | 2,609 | | Zhihao Development Holdings Limited | (1,937) | (13,412) | | Star Asia Holdings Limited | 105 | (163) | | **Total** | **(8,165)** | **(10,941)** | - One of the listed equity securities (China Baoli Technologies Holdings Limited) has been suspended from trading on the Stock Exchange since June 28, 2019, and its fair value was **zero HKD** as of December 31, 2020, and June 30, 2020[97](index=97&type=chunk) [21. Loan Receivables](index=31&type=section&id=21.%20Loan%20Receivables) This note lists the Group's unsecured fixed-rate loan receivables provided to independent third parties, showing an increase in total principal but also a significant increase in expected credit loss provisions Loan Receivables (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Fixed-rate Loan Receivables | 32,000 | 29,500 | 8.5% Growth | | Less: Provision for Expected Credit Losses | (2,280) | (27) | 8344.4% Growth | | **Net Amount** | **29,720** | **29,473** | 0.8% Growth | - As of December 31, 2020, the Group granted six loans to five independent third-party individuals, with principal amounts of **HKD 5,000,000**, **HKD 5,000,000**, **HKD 6,000,000**, **HKD 9,000,000**, **HKD 4,500,000**, and **HKD 2,500,000**, respectively, and annual interest rates of **9.125%**, **12%**, **9.75%**, **10.25%**, **11%**, and **11%**, respectively; all loans are unsecured with terms ranging from eight to ten months[98](index=98&type=chunk) [22. Trade and Other Payables](index=33&type=section&id=22.%20Trade%20and%20Other%20Payables) This note details the composition and aging analysis of trade and other payables, showing a significant decrease in total trade payables, while other payables remained relatively stable Total Trade and Other Payables (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Trade Payables (Third Parties) | 1,136 | 25,880 | 95.6% Decrease | | Accrued Project Costs | 4,637 | 5,824 | 20.4% Decrease | | Other Payables | 16,022 | 16,927 | 5.4% Decrease | | **Total** | **21,795** | **48,631** | 55.1% Decrease | - Accrued liabilities primarily refer to accrued professional fees and employee benefits; these trade and other payables are non-interest bearing, with trade payables generally settled within **30 to 90 days**, and other payables having an average term of **30 days**[100](index=100&type=chunk) Trade Payables Aging Analysis (As at December 31) | Aging | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | | :--- | :--- | :--- | | Less than 90 days | 1,136 | 21,315 | | 91 to 180 days | – | 4,565 | | **Total** | **1,136** | **25,880** | [23. Share Capital and Share Premium](index=34&type=section&id=23.%20Share%20Capital%20and%20Share%20Premium) This note outlines the Company's share capital and share premium, which remained unchanged in terms of issued ordinary shares and capital amount as of December 31, 2020 Share Capital and Share Premium (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | | :--- | :--- | :--- | | Issued Share Capital | 13,903 | 13,903 | | Share Premium Account | 563,328 | 563,328 | | **Total** | **577,231** | **577,231** | - There are 1,390,280,000 ordinary shares issued and fully paid, with a par value of **HKD 0.01** per share[102](index=102&type=chunk) [24. Fair Value Measurement of Financial Instruments](index=34&type=section&id=24.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) This note explains the Group's fair value measurement methods for financial assets and liabilities, classified into fair value hierarchy levels (Level 1 to Level 3) - Fair value measurements are categorized into three levels: Level 1 (based on quoted prices in active markets for identical assets or liabilities), Level 2 (based on directly or indirectly observable inputs for the asset or liability), and Level 3 (based on valuation techniques including inputs for the asset or liability not based on observable market data)[104](index=104&type=chunk) Fair Value Measurement of Financial Assets (As at December 31) | Indicator | Financial Assets at Fair Value Through Profit or Loss (HKD Thousand) | Financial Assets Measured at Amortized Cost (HKD Thousand) | Total (HKD Thousand) | | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss | 4,924 | – | 4,924 | | Loan Receivables | – | 29,720 | 29,720 | | Trade Receivables, Deposits, and Other Receivables | – | 242,973 | 242,973 | | Cash and Cash Equivalents | – | 73,993 | 73,993 | | **Total** | **4,924** | **346,686** | **351,610** | Fair Value Measurement of Financial Liabilities (As at December 31) | Indicator | Financial Liabilities Measured at Amortized Cost (HKD Thousand) | | :--- | :--- | | Trade and Other Payables (excluding consumption tax payable and accrued liabilities) | 7,760 | | Lease Liabilities | 1,762 | | **Total** | **9,522** | [25. Related Party Transactions](index=36&type=section&id=25.%20Related%20Party%20Transactions) This note discloses the Group's related party transactions during the reporting period, including subcontractor fees, operating expenses, rental expenses, secretarial fees, and raw material sales, and lists key management personnel compensation Related Party Transactions Overview (For the six months ended December 31) | Transaction Type | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Subcontractor Fees Received (Joint Venture) | – | 2,431 | 100% Decrease | | Operating Expenses Recharged (Related Company) | 35 | 38 | 7.9% Decrease | | Rental Expenses Received (Related Company) | 355 | 645 | 45.0% Decrease | | Sale of Raw Materials to Joint Venture | – | 8 | 100% Decrease | | Sale of Plant and Equipment to Joint Venture | – | 6 | 100% Decrease | Key Management Personnel Compensation (For the six months ended December 31) | Compensation Item | 2020 (HKD Thousand) | 2019 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Directors' Fees | 1,134 | 1,145 | 1.0% Decrease | | Salaries and Bonuses | 2,457 | 1,232 | 99.4% Growth | | Pension Scheme Contributions | 53 | 37 | 43.2% Growth | | **Total** | **3,644** | **2,414** | 50.9% Growth | - The Group conducted related party transactions during the reporting period on terms and conditions agreed upon by the parties[109](index=109&type=chunk) [26. Contingent Liabilities](index=38&type=section&id=26.%20Contingent%20Liabilities) This note discloses the Group's contingent liabilities, primarily Singapore government guarantees for foreign workers, which are small in amount and not provided for, as directors believe no relevant regulations were breached Contingent Liabilities (As at December 31) | Indicator | 2020 (HKD Thousand) | June 30, 2020 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Singapore Government Guarantees for Foreign Workers | 29 | 28 | 3.6% Growth | - The Singapore government requires companies to submit a **SGD 5,000** guarantee to the Commissioner for Work Passes for each foreign worker employed; the Group has arranged for an insurance company to provide insurance guarantees, and the directors believe that none of the Group's foreign workers breached relevant regulations during the reporting period[114](index=114&type=chunk) [27. Approval of Unaudited Condensed Consolidated Interim Financial Information](index=38&type=section&id=27.%20Approval%20of%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) The unaudited condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on February 23, 2020 - The unaudited condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on February 23, 2020[115](index=115&type=chunk) [Corporate Governance and Other Information](index=39&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section describes the Company's corporate governance practices, including compliance with the Listing Rules' Corporate Governance Code, directors' and chief executives' interests in securities, share option scheme, and interim dividend policy [Corporate Governance Practices](index=39&type=section&id=Corporate%20Governance%20Practices) The Company is committed to maintaining high standards of corporate governance and complies with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules, except for code provision A.2.1 (separation of roles of chairman and chief executive) - The Company has complied with all applicable code provisions of the Corporate Governance Code for the six months ended December 31, 2020, except for a deviation from code provision A.2.1 (the roles of chairman and chief executive should be separate)[117](index=117&type=chunk)[118](index=118&type=chunk) - Mr. Lau Yim Shing, the Chairman of the Board, is responsible for the overall operation of the Board and the Group's overall strategy, while Mr. Sum Yau Chuen, the former Managing Director, remains a director of Strike Singapore and continues to be responsible for the overall management, strategic planning, and business development of the Group's operations in Singapore; the Board believes this structure does not affect the balance of power and authority between the Group's directors and management[118](index=118&type=chunk) [Standard Securities Dealing Code for Directors](index=40&type=section&id=Standard%20Securities%20Dealing%20Code%20for%20Directors) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules as its code of conduct for directors' securities transactions and confirms full compliance by all directors during the review period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules as its code of conduct for directors' securities transactions and confirms that all directors have fully complied with the relevant standards stipulated in the Model Code for the six months ended December 31, 2020[120](index=120&type=chunk) [Directors' and Chief Executives' Interests and Short Positions in Shares and Underlying Shares of the Company or Any Associated Corporation](index=40&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company%20or%20Any%20Associated%20Corporation) This note discloses the long positions in the Company's shares held by executive directors Mr. Lau Yim Shing and Mr. Yiu Yun Hung and their spouses as of December 31, 2020 Directors' Long Positions in Shares and Underlying Shares of the Company (As at December 31, 2020) | Director | Capacity/Nature | Number of Shares Held | Percentage of Company's Interest | | :--- | :--- | :--- | :--- | | Mr. Lau Yim Shing | Beneficial Owner | 7,600,000 | 0.55% | | | Spouse's Interest | 5,000,000 | 0.36% | | Mr. Yiu Yun Hung | Beneficial Owner | 12,050,000 | 0.87% | | | Spouse's Interest | 18,630,000 | 1.34% | - Ms. Cheung Kuen Ying, spouse of Mr. Lau Yim Shing, legally and beneficially owns **5,000,000** shares of the Company, and Ms. Chong Yin Chu, spouse of Mr. Yiu Yun Hung, legally and beneficially owns **18,630,000** shares of the Company[122](index=122&type=chunk) [Share Option Scheme](index=41&type=section&id=Share%20Option%20Scheme) The Company adopted a new share option scheme in 2017 to provide incentives and rewards to eligible participants, but no share options have been granted since its adoption - The Company adopted a new share option scheme after a resolution was passed at the Company's annual general meeting held on October 20, 2017, aiming to provide incentives and rewards to eligible participants[123](index=123&type=chunk) - No share options have been granted since the adoption of the scheme[124](index=124&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=41&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Save for the share option scheme, no arrangements were entered into by the Company or any of its holding companies, subsidiaries, or fellow subsidiaries during the review period that would enable directors and chief executives to acquire benefits by acquiring shares or debentures of the Company or any other body corporate - Save for what is disclosed under "Share Option Scheme" above, during the six months ended December 31, 2020, neither the Company nor any of its holding companies, subsidiaries, or fellow subsidiaries entered into any arrangements that would enable directors and chief executives of the Company to acquire benefits by acquiring shares or debentures of the Company or any other body corporate[125](index=125&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company](index=41&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company) As of December 31, 2020, the Company had not been notified by any person or entity of any interests or short positions in the Company's shares or underlying shares required to be recorded in the register kept under Section 336 of the Securities and Futures Ordinance - As of December 31, 2020, the Company had not been notified by any person or entity of any interests or short positions in the Company's shares or underlying shares that were required to be recorded in the register kept under Section 336 of the Securities and Futures Ordinance[126](index=126&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=41&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended December 31, 2020 - During the six months ended December 31, 2020, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[127](index=127&type=chunk) [Interim Dividend](index=41&type=section&id=Interim%20Dividend) The Board of Directors did not declare any interim dividend for the six months ended December 31, 2020 - The Board of Directors did not declare any interim dividend for the six months ended December 31, 2020[128](index=128&type=chunk) [Audit Committee](index=41&type=section&id=Audit%20Committee) The Audit Committee reviewed the Group's adopted accounting principles and practices and discussed financial reporting matters, including the review of the Company's unaudited condensed consolidated financial statements for the six months ended December 31, 2020 - The Audit Committee has reviewed the Group's adopted accounting principles and practices with senior management and discussed financial reporting matters, including the review of the Company's unaudited condensed consolidated financial statements for the six months ended December 31, 2020[129](index=129&type=chunk) - The Audit Committee comprises four non-executive directors, three of whom are independent non-executive directors: Mr. Leung Po Hon, Mr. Li Jin, Dr. Lo Hiu Tung, and Mr. Tam Tak Wah; Mr. Leung Po Hon serves as the Chairman of the Audit Committee[129](index=129&type=chunk)

* ( 於開曼群島註冊成立的有限公司) 股份代號: 1421 年報 2019 / 2020 * 僅供識別 目錄 2 公司資料 3 主席報告 4 管理層討論及分析 22 董事會報告 29 董事及高級管理層履歷 32 企業管治報告 45 環境、社會及管治報告 54 獨立核數師報告 60 綜合損益及其他全面收入表 61 綜合財務狀況表 63 綜合權益變動表 65 綜合現金流量表 67 綜合財務報表附註 150 五年財務概要 工蓋有限公司 年報 2019/2020 公司資料 董事會 執行董事 劉炎城先生（ 主席 姚潤雄先生 非執行董事 譚德華先生 獨立非執行董事 梁寶漢先生 李勁先生 羅晓東博士 審核委員會 劉炎城先生（ 主席 ） 梁寶漢先生 李勁先生 羅晓東博士 薪酬委員會 梁寶漢先生（ 主席 李勁先生 羅晓東博士 譚德華先生 核數師 國衛會計師事務所有限公司 香港 中環畢打街11號 置地廣場 告羅士打大廈31樓 主要往來銀行 香港上海滙豐銀行有限公司 Standard Chartered Bank (Singapore) Limited 註冊辦事處 Cricket Square, Hutchins Drive P ...