Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,986,173, an increase of 33.7% compared to HKD 1,486,802 for the same period in 2023[2] - Gross profit for the period was HKD 41,138, slightly down from HKD 41,471 in the previous year, indicating a gross margin of approximately 2.1%[2] - Operating profit increased to HKD 19,018, up 43.5% from HKD 13,248 in the same period last year[2] - Net profit for the period was HKD 11,940, representing a 24.1% increase from HKD 9,613 in the prior year[3] - Basic earnings per share rose to HKD 2.94, compared to HKD 2.32 for the same period in 2023, reflecting a growth of 26.7%[2] - The total revenue for the period was HKD 1,986.17 million, an increase of approximately 33.59% compared to HKD 1,486.80 million in the same period last year[30] - Revenue from general building works rose by approximately 35.80% from HKD 1,180.99 million to HKD 1,603.76 million during the same period[37] - Revenue from civil engineering works increased by approximately 41.03% from HKD 213.94 million to HKD 301.73 million[37] - Other services contributed HKD 80.68 million, accounting for 4.06% of total revenue, down from 6.18% in the previous period[38] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 1,444,569, a decrease from HKD 1,867,979 at the end of 2023[4] - The total assets of the group reached HKD 1,513,386,000, with reportable segment assets of HKD 1,266,859,000[14] - The company reported cash and cash equivalents of HKD 198,436, down from HKD 348,960 at the end of 2023, suggesting a need for cash flow monitoring[4] - Current liabilities decreased to HKD 1,131,277 from HKD 1,551,097, indicating improved liquidity management[5] - The company’s non-current liabilities included bank loans of HKD 310,000, an increase from HKD 240,000 in the previous year[5] - The total liabilities of the group were HKD 1,146,265,000, including current tax liabilities of HKD 875,000 and deferred tax liabilities of HKD 2,066,000[14] - The company reported a total asset value of 1,941,936 thousand HKD as of December 31, 2023, with total liabilities amounting to 1,570,353 thousand HKD[15] Dividends and Shareholder Returns - The interim dividend declared was HKD 3.0 cents per share, amounting to HKD 12,000,000 for the six months ended June 30, 2024, consistent with the previous year[24] - The interim dividend for the fiscal year ending December 31, 2023, was declared at HKD 4.0 cents per share, totaling HKD 16,000,000[25] - The basic earnings per share for the six months ended June 30, 2023, was calculated based on a profit attributable to ordinary equity shareholders of 11,762 thousand HKD, compared to 9,295 thousand HKD for the same period in 2022[18] Operational Highlights - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming periods[1] - The group operates primarily in general building, civil engineering, and other services, with a focus on construction and maintenance projects[12] - The company continues to engage in construction and maintenance projects under the "SFK" brand in Hong Kong and Macau[29] - The company has a strong pipeline of projects, with ongoing large-scale construction and maintenance projects[30] - As of June 30, 2024, the company had a total of 11 general building projects and 18 civil engineering projects, with a total contract value of approximately HKD 18 billion[30] Financial Management and Governance - The group’s financial report is prepared in accordance with Hong Kong Financial Reporting Standards[9] - The group’s management has made judgments and estimates that may affect the reported amounts of assets, liabilities, income, and expenses[9] - The group’s financial performance and position may be significantly influenced by changes in accounting policies[11] - The audit committee has reviewed the accounting principles and practices adopted by the group, ensuring compliance with financial reporting standards[63] - The company has adopted corporate governance standards to ensure effective and transparent operations, maintaining high standards of corporate governance[58] Future Outlook - The local economy is expected to recover in 2024, with confidence in government measures to stimulate economic growth and ongoing commitments to land development and public housing[57] - The company plans to continue leveraging its competitive advantages to achieve long-term business objectives[57] Miscellaneous - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the current accounting period[11] - There have been no significant events requiring disclosure after June 30, 2024, indicating stable operations[62] - The company has not engaged in any buying, selling, or redeeming of its listed securities during the reporting period[61] - The company has implemented appropriate measures to fulfill internal audit functions despite not having an independent internal audit department[59] - The interim report will be available on the company's website and sent to shareholders, ensuring transparency in financial performance[66]

Financial Performance - The total revenue of the Group increased by 5.03% to HK$3,851.62 million for the year ended 31 December 2023, compared to HK$3,667.08 million in 2022[10]. - The net profit attributable to equity shareholders of the Company was HK$25.32 million, up from HK$18.73 million in 2022[10]. - Revenue for 2023 increased by approximately HK$184.54 million, or 5.03%, from HK$3,667.08 million in 2022 to HK$3,851.62 million in 2023[57]. - Revenue from general building business rose by approximately HK$242.78 million, or 8.74%, from HK$2,777.98 million in 2022 to HK$3,020.76 million in 2023[58]. - Revenue from civil engineering business decreased by approximately HK$24.94 million, or 4.08%, from HK$611.80 million in 2022 to HK$586.86 million in 2023[59]. - Gross profit increased to HK$97.90 million in 2023 from HK$77.41 million in 2022, with a gross profit margin of 2.54% compared to 2.11% in the previous year[66][67]. - Other revenue decreased significantly from HK$33.02 million in 2022 to HK$5.37 million in 2023, primarily due to the absence of government subsidies received in 2022[68][71]. - Finance costs rose to HK$8.28 million in 2023 from HK$3.18 million in 2022, attributed to increased bank interest rates and average loan balances[76][81]. - Administrative expenses remained relatively stable at HK$63.27 million in 2023 compared to HK$63.16 million in 2022[75][80]. - The share of results from a joint venture showed a reduced net loss of HK$1.02 million in 2023, down from a loss of HK$2.13 million in 2022[77][82]. - Income tax expense decreased to HK$5.87 million in 2023 from HK$24.26 million in 2022, mainly due to the reversal of deferred tax assets[78][83]. Project Awards and Ongoing Projects - The Group was awarded 17 new projects in Hong Kong with a total original contract sum of approximately HK$7,373 million, compared to HK$4,163 million in 2022[11]. - The outstanding value of ongoing projects as of 31 December 2023 was approximately HK$11.7 billion, an increase from HK$7.1 billion in 2022[11]. - As of December 31, 2023, the Group had 10 projects for general building works and 24 projects for civil engineering works on hand, with a total original contract sum of approximately HK$17 billion[32]. - Major projects included the construction of public rental housing with an original contract sum of HK$3,740 million, which recognized revenue of HK$383 million during the financial year[33]. - The Group has been awarded new contracts for general building and civil engineering works post-year-end, including maintenance projects with a total contract sum of approximately HK$2,233.1 million[46]. - The company has ongoing projects with a total contract value of HK$2,624.0 million for public housing developments, recognizing revenue of HK$682.6 million in 2023[36]. Dividends and Shareholder Returns - A final dividend of HK4.0 cents per share is recommended to reward shareholders for their support[19]. - The proposed final dividend is set at HK$0.04 per share to reward shareholders for their support[21]. Operational Challenges and Market Conditions - The management acknowledges challenges such as geopolitical tensions and rising interest rates affecting the construction business[13]. - The Group's business remains primarily focused in the Hong Kong market during the year[61]. - The construction industry in Hong Kong is expected to grow due to strong housing needs and government infrastructure projects, but future growth depends on the property market's prosperity[101]. - The Group's primary customer remains the Hong Kong government, and any reduction or delay in government spending could adversely affect business performance[91]. Environmental, Social, and Governance (ESG) Initiatives - SFK Construction is committed to integrating ESG factors into daily operations, aiming to prevent environmental pollution and minimize waste production at construction sites[189]. - The company has established an ESG Working Group led by an Executive Director to manage ESG issues and set environmental and social goals for sustainability[190]. - Measurable targets have been set for key ESG aspects, including gas emissions, waste production, energy use efficiency, and water use efficiency, with regular monitoring of KPIs[191]. - The Group aims for zero compromise in occupational health and safety through diligent management and staff training[196]. - The Group supports various non-profit organizations through sponsorships and donations, especially during the COVID pandemic[197]. - The Group emphasizes the well-being of the community alongside the safety of its workers[199]. - The Group has participated in community relief activities during challenging times, demonstrating its commitment to social responsibility[197]. Financial Position and Liquidity - Cash and bank balances (excluding pledged deposits) increased to HK$348.96 million in 2023, compared to HK$262.56 million in 2022, showing an improvement in cash reserves[109]. - The Group maintained a healthy liquidity position with cash and cash equivalents of HK$348.96 million as of December 31, 2023, up from HK$262.56 million in 2022[135]. - The current ratio of the Group was 1.20 as of December 31, 2023, slightly down from 1.25 in 2022[135]. - The Group had bank loans of approximately HK$240.00 million as of December 31, 2023, with variable interest rates ranging from 6.62% to 6.77% per annum[136]. - The Group's gearing ratio increased to 64.59% as of December 31, 2023, compared to 13.45% in 2022[145]. - Net current assets were HK$316.88 million as of December 31, 2023, slightly up from HK$312.03 million in 2022[146]. Employee and Operational Metrics - As of December 31, 2023, the Group's total remuneration was approximately HK$499 million, with 1,352 employees, including 1,285 full-time and 67 part-time employees[115]. - The accident rate for the Group was 9.5 per 1,000 workers in 2023, higher than 5.22 per 1,000 workers in 2022, but still significantly lower than the industry average of 29.1 per 1,000 workers[109]. - The average accident rate per thousand workers was 9.5, significantly lower than the industry average of 29.1 in 2022[112]. Compliance and Regulatory Issues - The Group's business is subject to strict regulatory compliance, and failure to maintain necessary licenses could severely impact operations[90]. - The Group was fined a total of HK$172,000 for 18 summonses related to violations of the Factories and Industrial Undertaking Ordinance during the year[128].

[Financial Statements](index=2&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's 2023 revenue increased by 5.0% to **HKD 3.85 billion**, with gross profit rising to **HKD 97.9 million** and gross margin improving to 2.5%, while profit attributable to owners of the company decreased by 26.0% to **HKD 18.73 million** Key Profit or Loss Statement Data for FY2023 (HKD) | Metric | 2023 (Thousands) | 2022 (Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 3,851,621 | 3,667,077 | +5.0% | | Gross Profit | 97,903 | 77,409 | +26.5% | | Operating Profit | 40,911 | 49,323 | -17.0% | | Profit Before Tax | 31,611 | 44,012 | -28.2% | | Profit for the Year | 19,751 | 25,740 | -23.3% | | Profit Attributable to Owners of the Company | 18,729 | 25,324 | -26.0% | | Basic Earnings Per Share | 4.7 HK Cents | 6.3 HK Cents | -25.4% | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive income for 2023 decreased to **HKD 19.75 million** from **HKD 25.74 million** in 2022, with **HKD 18.73 million** attributable to owners of the company Total Comprehensive Income for the Year (HKD) | Item | 2023 (Thousands) | 2022 (Thousands) | | :--- | :--- | :--- | | Profit for the Year | 19,751 | 25,740 | | Total Comprehensive Income for the Year | 19,750 | 25,739 | | Attributable to Owners of the Company | 18,728 | 25,323 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of end-2023, the Group's total assets increased to **HKD 1.94 billion** and total liabilities to **HKD 1.57 billion**, with net assets remaining stable at **HKD 372 million**, while bank borrowings significantly rose from **HKD 50 million** to **HKD 240 million** and cash and cash equivalents increased to **HKD 349 million** Key Statement of Financial Position Data as of End-2023 (HKD) | Metric | 2023 (Thousands) | 2022 (Thousands) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current Assets | 73,957 | 77,740 | -4.9% | | Current Assets | 1,867,979 | 1,538,742 | +21.4% | | **Total Assets** | **1,941,936** | **1,616,482** | **+20.1%** | | **Liabilities and Equity** | | | | | Current Liabilities | 1,551,097 | 1,226,712 | +26.4% | | Non-current Liabilities | 19,256 | 17,926 | +7.4% | | **Total Liabilities** | **1,570,353** | **1,244,638** | **+26.2%** | | **Net Assets** | **371,583** | **371,844** | **-0.1%** | | **Key Items** | | | | | Cash and Cash Equivalents | 348,960 | 262,563 | +32.9% | | Bank Borrowings (Current) | 240,000 | 50,000 | +380.0% | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [Revenue and Segment Reporting](index=8&type=section&id=3%20Revenue%20and%20Segment%20Reporting) The Group's total revenue is primarily from general building and civil engineering, with general building revenue significantly growing in 2023, while civil engineering and other services declined, and both segments were profitable, with civil engineering turning profitable, and estimated future revenue from uncompleted contracts significantly increasing to **HKD 10.02 billion** by year-end Revenue by Service Type (HKD) | Service Type | 2023 (Thousands) | 2022 (Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | General Building | 3,020,760 | 2,777,982 | +8.7% | | Civil Engineering | 586,863 | 611,801 | -4.1% | | Housing Management Services | 29,446 | 55,635 | -47.1% | | Others | 214,552 | 221,659 | -3.2% | | **Total** | **3,851,621** | **3,667,077** | **+5.0%** | Results by Business Segment (HKD) | Business Segment | 2023 Reportable Segment Profit (Thousands) | 2022 Reportable Segment Profit (Thousands) | | :--- | :--- | :--- | | General Building | 51,750 | 72,176 | | Civil Engineering | 30,538 | (16,791) | | Others | 16,018 | 50,794 | - As of end-2023, the estimated total future revenue related to unsatisfied performance obligations significantly increased to **HKD 10.016 billion** from **HKD 5.571 billion** in 2022, indicating sufficient future business reserves[20](index=20&type=chunk) [Dividends](index=15&type=section&id=9%20Dividends) The Board proposed a final dividend of **HKD 4.0 cents** per share, bringing the total annual dividend to **HKD 7.0 cents** per share, a 16.7% increase from last year, with a total payout of **HKD 28 million** for the year FY2023 Dividend Details | Dividend Type | 2023 | 2022 | | :--- | :--- | :--- | | Interim Dividend | 3.0 HK Cents per share | 2.5 HK Cents per share | | Proposed Final Dividend | 4.0 HK Cents per share | 3.5 HK Cents per share | | **Total Annual Dividend** | **7.0 HK Cents per share** | **6.0 HK Cents per share** | [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=17&type=section&id=Business%20Review) In 2023, the Group demonstrated robust business performance with revenue growing 5.0% to **HKD 3.85 billion** and profit attributable to owners of the company increasing to **HKD 25.32 million**, securing **17 new projects** totaling **HKD 7.37 billion** in contract value, and holding **HKD 11.7 billion** in uncompleted project value by year-end, with general building and civil engineering remaining core, accounting for 93.67% of total revenue - In 2023, **17 new projects** were approved with an original contract value of approximately **HKD 7.373 billion**, primarily from the public sector[48](index=48&type=chunk) - As of end-2023, there were **34 ongoing projects** with an original contract value of approximately **HKD 17 billion** and an uncompleted value of approximately **HKD 11.7 billion**[50](index=50&type=chunk) - General building and civil engineering businesses collectively accounted for **93.67% of total revenue**, representing the Group's absolute core[57](index=57&type=chunk) - Subsequent to the year-end, the Group secured **three additional large maintenance contracts** totaling over **HKD 2.2 billion**, further solidifying future revenue[59](index=59&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) The Group's 2023 financial performance showed revenue and profit growth, with revenue increasing 5.0% driven by general building business, gross margin improving from 2.11% to 2.54% due to better cost control and the elimination of prior year's loss-making contract impact, while finance costs significantly rose, leading to a 35.2% increase in profit attributable to owners of the company to **HKD 25.32 million** - Revenue increased by **5.03%** to **HKD 3.852 billion**, primarily driven by an **8.74%** growth in general building business revenue[61](index=61&type=chunk)[62](index=62&type=chunk) - Gross margin increased from **2.11%** to **2.54%**, mainly due to the elimination of the impact from a loss-making civil engineering contract in the prior year and improved cost control during the year[66](index=66&type=chunk)[67](index=67&type=chunk) - Finance costs increased from **HKD 3.18 million** to **HKD 8.28 million**, primarily due to higher bank interest and increased average loan balances[71](index=71&type=chunk) - Profit attributable to owners of the company was **HKD 25.32 million**, a **35.2%** increase from **HKD 18.73 million** in 2022[74](index=74&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=24&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of end-2023, the Group's financial position showed a significant increase in bank borrowings to **HKD 240 million** to support business expansion, causing the gearing ratio to surge from 13.45% to 64.59%, yet the Group maintained a strong cash position with cash and equivalents rising to **HKD 349 million** and **HKD 1.18 billion** in unutilized banking facilities, indicating ample liquidity Capital Structure and Liquidity Ratios | Metric | End-2023 | End-2022 | | :--- | :--- | :--- | | Cash and Cash Equivalents | HKD 349 million | HKD 263 million | | Bank Borrowings | HKD 240 million | HKD 50 million | | Gearing Ratio | 64.59% | 13.45% | | Current Ratio | 1.20 | 1.25 | | Unutilized Banking Facilities | HKD 1.18 billion | HKD 1.517 billion | - The gearing ratio (interest-bearing borrowings/total equity) significantly increased, reflecting higher bank borrowings to support operations[82](index=82&type=chunk) [Future Prospects](index=28&type=section&id=Future%20Prospects) Management is confident in the Group's future development, anticipating more opportunities in the construction sector with the gradual recovery of the local economy and the Hong Kong government's continued investment in land development and public housing, enabling the Group to leverage its competitive advantages to achieve long-term business objectives - The Board maintains an optimistic outlook on the Group's future development, primarily based on Hong Kong's economic recovery and the government's ongoing commitment to land development and public housing[97](index=97&type=chunk) [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Practices](index=28&type=section&id=Corporate%20Governance%20Practices) The company adopted the Corporate Governance Code and complied with most provisions during the year, with two deviations noted: the Chairman and CEO (Managing Director) roles are held by the same individual, and no independent internal audit department exists, though external consultants perform related functions, which the Board deems effective with sufficient checks and balances - The company deviated from Corporate Governance Code Provision C.2.1, where the Chairman and Managing Director (equivalent to Chief Executive Officer) roles are held by Mr. Chan Ki Chun, which the Board believes facilitates efficient management[99](index=99&type=chunk) - The company deviated from Corporate Governance Code Provision D.2.5 by not establishing an independent internal audit department, but external internal control consultants have been appointed to regularly review the internal control system[100](index=100&type=chunk) [Dividends and Annual General Meeting](index=30&type=section&id=Dividends%20and%20Annual%20General%20Meeting) The Board proposed a final dividend of **HKD 4.0 cents** per share, payable around June 21, 2024, pending approval at the Annual General Meeting scheduled for May 23, 2024, with relevant share register closure dates announced - A proposed final dividend of **HKD 4.0 cents** per share is subject to approval at the Annual General Meeting on May 23, 2024[110](index=110&type=chunk) - To determine dividend entitlement, the share register will be closed from June 4 to June 5, 2024[113](index=113&type=chunk)

Revenue and Financial Performance - The overall revenue for the six months ended June 30, 2023, amounted to HK$1,486.80 million, representing a decrease of approximately 8.34% compared to HK$1,622.04 million for the same period last year[11]. - Total revenue for the six months ended June 30, 2023, decreased by approximately HK$135.24 million, or 8.34%, to HK$1,486.80 million from HK$1,622.04 million for the same period in 2022[26]. - Revenue from general building business decreased by approximately HK$107.70 million, or 8.36%, to HK$1,180.99 million for the six months ended June 30, 2023[27]. - Revenue from civil engineering business decreased by approximately HK$12.23 million, or 5.41%, to HK$213.94 million for the six months ended June 30, 2023[28]. - Revenue from other services amounted to approximately HK$91.87 million, representing 6.18% of total revenue, a decrease from 6.61% in the same period of 2022[32]. - Revenue recognized during the six months ended June 30, 2023, amounted to approximately HK$1,000.0 million[17]. - Profit attributable to equity shareholders was HK$9.30 million for the six months ended June 30, 2023, down from HK$13.15 million for the same period in 2022[47]. - Basic earnings per share for the period were 2.32 cents, compared to 3.29 cents in 2022, reflecting a decline of 29.52%[130]. - Total comprehensive income for the period was HKD 9,610,000, down from HKD 13,742,000 in the same period last year, a decrease of 30.00%[132]. Project and Contract Information - As of June 30, 2023, the total original contract sum of ongoing projects was approximately HK$23 billion, an increase from HK$16 billion as of December 31, 2022[16]. - The outstanding value of projects on hand as of June 30, 2023, was approximately HK$13.5 billion, up from HK$7.1 billion as of December 31, 2022[16]. - The Group had a total of 15 projects for general building works and 25 projects for civil engineering works on hand as of June 30, 2023[16]. - The major projects undertaken during the period were outlined in the report, indicating ongoing engagement in significant construction activities[11]. - The contract sum for the construction of Public Rental Housing Development was HK$3,740.0 million, with recognized revenue of HK$237.5 million[19]. - The contract for the construction of Subsidised Sale Flats Development had a sum of HK$1,911.0 million, with recognized revenue of HK$176.5 million[19]. - The projected revenue from the management and maintenance of roads in Kowloon East is HK$482.6 million, with recognized revenue of HK$58.1 million expected by March 2024[20]. - The contract for Electrical and Mechanical Works for Sewage Treatment Facilities has a total sum of HK$557.6 million, with recognized revenue of HK$36.9 million expected by May 2024[20]. - The anticipated revenue from the Infrastructure Works for Non-public Housing Facilities is HK$1,497.0 million, with recognized revenue of HK$197.8 million expected by December 2024[20]. - The maintenance project for properties managed by the Architectural Services Department has a contract sum of HK$830.4 million, with recognized revenue of HK$47.7 million expected by March 2025[20]. - The maintenance and overhaul of Electrical and Mechanical Installations managed by the Drainage Services Department is projected to have a contract sum of HK$267.0 million, with recognized revenue of HK$20.2 million expected by July 2025[20]. - The company is engaged in the design and construction of proposed Transitional Housing for the Evangelical Lutheran Church, with a contract sum of HK$484.0 million and recognized revenue of HK$69.6 million expected by January 2024[19]. - The company is involved in the Three Runway System Project for Hong Kong International Airport, with a contract sum of HK$440.7 million and recognized revenue of HK$15.9 million expected by September 2024[20]. Profitability and Expenses - Overall gross profit increased by HK$18.81 million, or approximately 83.00%, to HK$41.47 million for the six months ended June 30, 2023[34]. - Overall gross profit margin increased from 1.40% for the six months ended June 30, 2022, to 2.79% for the same period in 2023[35]. - Other revenue for the six months ended June 30, 2023, amounted to HK$1.63 million, a significant decrease from HK$18.76 million in the same period of 2022[36]. - Other net gain for the six months ended June 30, 2023, amounted to HK$0.52 million, compared to HK$1.06 million for the same period in 2022[37]. - Administrative expenses increased to HK$30.37 million for the six months ended June 30, 2023, compared to HK$27.51 million for the same period in 2022, primarily due to higher staff costs[44]. - The company reported administrative expenses of HKD 30,370,000, an increase of 10.43% from HKD 27,510,000 in 2022[130]. - The finance costs for the period were HKD 1,704,000, slightly reduced from HKD 1,764,000 in the previous year[130]. Financial Position and Ratios - As of June 30, 2023, total bank loans amounted to HK$150.00 million, up from approximately HK$50.00 million as of December 31, 2022, mainly used for financing working capital[58]. - The current ratio improved to 1.32 as of June 30, 2023, compared to 1.25 as of December 31, 2022[49]. - The gearing ratio increased to 40.82% as of June 30, 2023, from 13.45% as of December 31, 2022, indicating a higher level of debt relative to equity[60]. - Total assets as of June 30, 2023, amounted to HK$1,661,642,000, a decrease from HK$1,806,514,000 as of December 31, 2022[134]. - Current liabilities decreased to HK$972,537,000 from HK$1,226,712,000, reflecting a reduction of approximately 20.8%[134]. - Cash and cash equivalents decreased to HK$191,671,000 from HK$262,563,000, representing a decline of about 27%[140]. - Total equity attributable to equity shareholders decreased to HK$367,112,000 from HK$371,819,000, a decline of approximately 1.9%[136]. - The company’s total equity as of June 30, 2023, was HKD 367,454,000, down from HKD 371,844,000 as of December 31, 2022[136]. Dividends and Shareholder Information - The Directors declared an interim dividend of HK3.0 cents per share for the period, amounting to approximately HK$12 million, an increase from HK$10 million in the previous year[94]. - The interim dividend declared is HKD 0.03 per share, an increase from HKD 0.025 per share in the previous period, totaling approximately HKD 12 million compared to HKD 10 million previously[98]. - The interim dividend will be paid to shareholders listed on the register as of September 15, 2023, with expected payment around September 28, 2023[98]. - There are no arrangements for shareholders to waive or agree to waive any dividends[99]. - The company will suspend the transfer of shares from September 14 to September 15, 2023, to determine entitlement to the proposed interim dividend[100]. Corporate Governance and Compliance - The Company has complied with all applicable corporate governance code provisions, except for deviations regarding the roles of chairman and CEO[86]. - The Group has appointed an external internal control adviser to review its internal control system periodically[87]. - The audit committee reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2023[123]. - No significant events requiring disclosure occurred after June 30, 2023, up to the date of the report[124]. Market and Economic Conditions - The impact of COVID-19 is gradually easing, and the local economy is expected to pick up in the second half of 2023, with confidence in future development due to government measures[81].

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。 SFK Construction Holdings Limited 新 福 港 建 設 集 團 有 限 公 司 （於百慕達註冊成立的有限公司） （股份代號：1447） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 綜 合 業 績 公 告 新福港建設集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈 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六個 月（「期 內」）的 未 經 審 核 中 期 綜 合 業 績，連 同 二 零 二 二 年 同 期 的 比 較 數 字 如下： ...

Financial Performance - The total revenue of SFK Construction Holdings Limited increased by 1.17% to HK$3,667.08 million for the year ended 31 December 2022, compared to HK$3,624.51 million in 2021[11]. - The net profit attributable to equity shareholders for the year was HK$18.73 million, up from HK$17.43 million in 2021[11]. - Revenue for 2022 increased by approximately HK$42.57 million, or 1.17%, from HK$3,624.51 million in 2021 to HK$3,667.08 million in 2022[57]. - Revenue from general building business decreased by approximately HK$9.30 million, or 0.33%, from HK$2,787.28 million in 2021 to HK$2,777.98 million in 2022[58]. - Revenue from civil engineering business increased by approximately HK$2.83 million, or 0.46%, from HK$608.97 million in 2021 to HK$611.80 million in 2022[59]. - Gross profit decreased from HK$85.71 million in 2021 to HK$77.41 million in 2022, with a gross profit margin of 2.11% compared to 2.36% in the previous year[65][66]. - Other revenue significantly increased to HK$33.02 million in 2022 from HK$3.64 million in 2021, mainly due to government subsidies of approximately HK$32.22 million[67][69]. - Administrative expenses decreased from HK$65.44 million in 2021 to HK$63.16 million in 2022, primarily due to lower rental charges[73]. - Finance costs rose to HK$3.18 million in 2022 from HK$2.41 million in 2021, attributed to increased bank interest rates[74]. - Profit attributable to equity shareholders increased to HK$18.73 million in 2022 from HK$17.43 million in 2021[77][83]. Project Awards and Ongoing Projects - The Group was awarded 19 new projects in Hong Kong with a total original contract sum of approximately HK$4,163 million, compared to HK$3,345 million in 2021[12]. - The outstanding value of ongoing projects as of 31 December 2022 was approximately HK$7.1 billion, an increase from HK$6.3 billion in 2021[12]. - A new civil engineering project was awarded after the year with a total original contract sum of approximately HK$197 million, maintaining a healthy level of outstanding projects[12]. - As of December 31, 2022, the total original contract sum of ongoing projects was approximately HK$16 billion, with an outstanding value of about HK$7.1 billion[32]. - Major projects included the construction of Public Rental Housing with an original contract sum of HK$3,740 million, generating revenue of HK$649.4 million during the financial year[33]. - The construction of Subsidised Sale Flats had an original contract sum of HK$1,911 million, with revenue recognized of HK$683.3 million[33]. - The company is involved in multiple ongoing construction and maintenance projects, including public housing developments at Kai Tak Sites 2B5 and 2B6[171]. - Significant projects include the construction of non-public housing facilities at Diamond Hill CDA, which encompasses transport infrastructure works and a water feature park[174]. Market and Business Strategy - The Group aims to diversify resources into different businesses and geographical areas to capture new business opportunities[14]. - The reopening of worldwide borders is expected to benefit the Group's business as the economy recovers from the COVID-19 pandemic[13]. - The business remains primarily focused on the Hong Kong market during the year[61]. - The Group's operations are primarily based in Hong Kong, with future growth dependent on the property market's prosperity and availability of major construction projects[100]. - The Group's strategy includes regular monitoring of liquidity requirements to ensure compliance with lending covenants and maintain sufficient cash reserves[108]. Safety and Environmental Management - The Group has established quality assurance measures and committed to high safety standards, enhancing public image and customer confidence through ISO certifications[49]. - The accident rate for the Group was 5.22 per 1,000 workers, significantly lower than the construction industry average of 29.5 per 1,000 workers in 2021, reflecting effective safety management[108]. - The Group has established an environmental management system in accordance with ISO14001:2015 standards, first certified in 2006[123]. - The company aims to minimize environmental pollution and waste at construction sites, demonstrating its commitment to sustainable practices[184]. - The company is enhancing the deodourisation system at Stonecutters Island Sewage Treatment Works, reflecting its focus on environmental management[180]. Corporate Governance and ESG - The ESG Working Group has been established to manage environmental, social, and governance issues, indicating a structured approach to sustainability[185]. - The Board has set measurable targets for key ESG aspects, including emission reduction and energy efficiency, to monitor performance effectively[186]. - The Board has adopted a "Top-down" management approach for ESG governance, overseeing the implementation and effectiveness of ESG-related risk management[198]. - The company recognizes its corporate social responsibility and is committed to addressing material risks related to ESG impacts from its operations[182]. - The company supports various non-profit organizations through sponsorships, donations, and volunteering, especially during challenging times[193]. Financial Position and Liquidity - The Group's cash and bank balances (excluding pledged deposits) increased to HK$262.56 million from HK$236.84 million in 2021, indicating improved liquidity[108]. - The current ratio of the Group as of December 31, 2022, was 1.25, an increase from 1.20 in 2021[133]. - The gearing ratio decreased to 13.45% in 2022 from 21.86% in 2021, reflecting a reduction in debt relative to equity[143]. - Net current assets rose to HK$312.03 million in 2022, up from HK$282.92 million in 2021[144]. - The Group maintained a healthy liquidity position with cash and cash equivalents of HK$262.56 million as of December 31, 2022, compared to HK$236.84 million in 2021[138].

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。 SFK Construction Holdings Limited 新 福 港 建 設 集 團 有 限 公 司 （於百慕達註冊成立的有限公司） （股份代號：1447） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 度 業 績 公 告 及 建 議 修 訂 細 則 新福港建設集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此提呈 本公司及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止 年 度（「年 內」或「二 零 二 二 年」）的 綜 合 年 度 業 績，連 同 截 至 二 零 二 一 年 十二月三十一日止年度（「二零二一年」）的比較數字如下： ...

Revenue and Financial Performance - The overall revenue for the period amounted to HK$1,622.04 million, representing an increase of approximately 11.07% compared to HK$1,460.43 million for the corresponding period last year[17]. - Revenue for the six months ended 30 June 2022 increased by approximately HK$161.61 million, or 11.07%, from HK$1,460.43 million to HK$1,622.04 million[51]. - Revenue from general building business amounted to HK$1,288.69 million, while civil engineering business generated HK$226.17 million, representing approximately 79.45% and 13.94% of total revenue, respectively[45]. - Revenue from other services, including property management and maintenance, accounted for approximately 6.61% of total revenue, up from 5.90% in the previous year[46]. - Revenue from general building business increased by approximately HK$97.79 million, or approximately 8.21%, from HK$1,190.90 million for the six months ended 30 June 2021 to HK$1,288.69 million for the six months ended 30 June 2022[53]. - Revenue from civil engineering business increased by approximately HK$42.70 million, or approximately 23.27%, from HK$183.47 million for the six months ended 30 June 2021 to HK$226.17 million for the six months ended 30 June 2022[54]. - Revenue from other services amounted to HK$107.18 million for the six months ended 30 June 2022, representing 6.61% of the total revenue of the Group, compared to HK$86.06 million and 5.90% for the same period in 2021[55]. - Revenue for the six months ended June 30, 2022, was HKD 1,622,035, an increase of 11.06% compared to HKD 1,460,430 in 2021[146]. Project and Contract Information - As of June 30, 2022, the company had a total of 12 general building works projects and 18 civil engineering works projects on hand, with a total original contract sum of approximately HK$15 billion[20]. - The outstanding value of projects on hand as of June 30, 2022, was approximately HK$8.0 billion, up from HK$6.3 billion as of December 31, 2021[20]. - The company has ongoing projects with a total contract sum of HK$3,740.0 million for public rental housing development, expected to complete in October 2022[31]. - A new project for the construction of non-public housing facilities has a contract sum of HK$1,497.0 million, with completion expected in December 2024[31]. - The company is managing and maintaining roads in Kowloon East, with a contract sum of HK$482.6 million, expected to complete in March 2024[31]. - The construction of public rental housing and subsidized sale flats has a combined contract sum of HK$5,651.0 million, with significant revenue contributions expected in the upcoming periods[31]. - The ongoing projects include electrical and mechanical works for sewage treatment facilities, with a contract sum of HK$557.6 million, expected to complete in May 2024[31]. Profitability and Gross Profit - Overall gross profit decreased by HK$28.46 million, or approximately 55.67%, from HK$51.12 million for the six months ended 30 June 2021 to HK$22.66 million for the six months ended 30 June 2022[63]. - Overall gross profit margin decreased from 3.50% for the six months ended 30 June 2021 to 1.40% for the six months ended 30 June 2022[64]. - Profit attributable to the equity shareholders of the Company for the six months ended 30 June 2022 was HK$13.15 million, compared to HK$9.29 million for the same period in 2021[68]. - Profit for the period increased to HKD 13,743, representing a 39.45% increase from HKD 9,823 in 2021[150]. - Total comprehensive income for the period was HKD 13,742, slightly down from HKD 9,825 in 2021[150]. - Total comprehensive income for the six months ended 30 June 2022 was HKD 13,152,000, compared to HKD 9,825,000 for the same period in 2021, representing a growth of 34%[164]. - Profit for the period increased to HKD 13,152,000 in 2022 from HKD 9,291,000 in 2021, marking a year-on-year increase of 42%[164]. Financial Position and Ratios - As at 30 June 2022, the capital structure consisted of equity of HK$376.84 million and bank loans of HK$90.00 million[69]. - As at 30 June 2022, the current ratio of the Group was 1.27, compared to 1.20 as of 31 December 2021[70]. - The Group's cash and cash equivalents were HK$261.90 million as of June 30, 2022, compared to HK$236.84 million as of December 31, 2021[75]. - The current ratio of the Group improved to 1.27 as of June 30, 2022, up from 1.20 as of December 31, 2021[75]. - The Group's gearing ratio was 23.88% as of June 30, 2022, compared to 21.86% as of December 31, 2021[85]. - The Group had approximately HK$1,914 million of unutilized banking facilities as of June 30, 2022, slightly down from HK$1,917 million as of December 31, 2021[83]. - The Group's total equity at 30 June 2022 was HKD 376,243,000, compared to HKD 375,410,000 at 30 June 2021[164]. Corporate Governance and Compliance - The Company has not established a standalone internal audit department but has implemented adequate measures for internal audit functions[101]. - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers and confirmed compliance by all Directors during the Period[110]. - The Company will continue to review its corporate governance practices to enhance standards and meet shareholder expectations[103]. - The Company maintains compliance with corporate governance standards as outlined in the SFO[136]. - The Board believes that the current management structure is effective for the Group's operations[103]. Future Outlook and Challenges - The company anticipates continued growth in revenue driven by its general building and civil engineering sectors, supported by a robust project pipeline[51]. - The Company anticipates continued pressure on profit margins due to the ongoing impact of COVID-19 on the local and global economy[97]. - The Board remains confident in the Group's future development despite ongoing pressures on profit margins due to COVID-19[96]. - The Company expects the Hong Kong government to implement more relief measures to alleviate financial burdens caused by COVID-19[97]. Employee and Remuneration Information - The total remuneration for the six months ended June 30, 2022, was approximately HK$245 million for 1,531 employees[93]. Shareholder Information - As of June 30, 2022, Mr. Chan Ki Chun beneficially owned 97,599 shares of Sun Fook Kong Group Limited, representing a significant interest[125]. - The substantial shareholders include SFK Group with 300,000,000 shares, representing approximately 71.39% ownership, and other entities such as Good Target and Ocean Asset[130]. - Mr. Lo Kai Shui holds a beneficial interest in 300,000,000 shares through controlled corporations, indicating a strong position in the company[130]. - As of June 30, 2022, no other directors or executives had registered interests or short positions in the shares of the company or its associated corporations[126]. Cash Flow and Investments - Net cash generated from operating activities was HKD 41,441,000 for the six months ended June 30, 2022, compared to a net cash used of HKD 21,265,000 in 2021[167]. - The company reported a net cash used in investing activities of HKD 2,133,000 for the six months ended June 30, 2022, compared to a net cash generated of HKD 128,000 in 2021[167]. - The capital element of lease rentals paid was HKD 7,753,000 in 2022, a decrease from HKD 13,406,000 in 2021[167]. Miscellaneous - The company is engaged in construction and maintenance projects in Hong Kong and Macau, as well as property management services[176]. - The interim financial report was approved for issue by the Board of Directors on 26 August 2022[180]. - The company has not disclosed any new strategies or market expansions during the reporting period[124]. - The report does not indicate any new product developments or technological advancements[124]. - The company has not purchased, sold, or redeemed any of its listed securities during the Period[118].

Financial Performance - The total revenue of the Group decreased by 3.91% to HK$3,624.51 million in 2021, compared to HK$3,772.12 million in 2020[14]. - The Group recorded a net profit attributable to equity shareholders of HK$17.43 million in 2021, recovering from a net loss of HK$19.03 million in 2020[14]. - Revenue from general building and civil engineering works amounted to HK$2,787.28 million and HK$608.97 million, representing approximately 76.90% and 16.80% of total revenue for the year[55]. - Other revenue for 2021 amounted to HK$3.64 million, a decrease from HK$95.85 million in 2020, primarily due to a one-off government subsidy in the previous year[82]. - The Group's revenue from civil engineering works was HK$608.97 million, a slight decrease from HK$648.80 million in the previous year[55]. - Revenue from other services increased to HK$228.26 million in 2021, representing 6.30% of total revenue, up from 5.69% in 2020[75]. - Gross profit for the year was HK$85.71 million, compared to a gross loss of HK$39.92 million in 2020, marking a significant recovery[80]. - Gross profit margin improved to 2.36% in 2021 from -1.06% in 2020, attributed to better cost control and improved market conditions[81]. - The decrease in revenue was mainly due to the completion of certain contracts, impacting both general building and civil engineering segments[72][74]. Project Awards and Portfolio - The Group was awarded 7 new projects with a total original contract sum of approximately HK$3,345 million in 2021, up from HK$1,933 million in 2020[15]. - The outstanding value of ongoing projects as of December 31, 2021, was approximately HK$6.3 billion, an increase from HK$5.3 billion in 2020[15]. - The Group's project portfolio includes 10 projects for general building works and 17 projects for civil engineering works[15]. - Major projects included the construction of public rental housing and subsidized sale flats, with original contract sums of HK$3,740 million and HK$1,911 million, respectively[38]. - The Group has been awarded contracts for general building works after the year, with a notable project for public housing developments valued at HK$2,624 million[58]. - Ongoing construction projects include public rental housing developments and subsidized sale flats in various locations, including Diamond Hill and Ma On Shan[187][190]. - The Group is involved in significant infrastructure projects, such as the Three Runway System Project and maintenance contracts for piers[193][195]. Shareholder and Dividend Information - The Board recommends a final dividend of HK$0.03 per share to reward shareholders for their support[17]. - The leadership acknowledges the continuous support from shareholders, customers, and business partners[17]. Management and Operational Insights - The management expresses confidence in overcoming challenges and thriving due to the dedication of its professional team and employees[16]. - The management discussed the impact of project mix on performance, highlighting the importance of ongoing and future projects for revenue generation[27]. - The management discussion highlights the importance of adapting to ongoing economic challenges while maintaining operational efficiency[178]. - The Group's strategy includes regular monitoring of liquidity requirements to maintain sufficient cash reserves and funding lines from financial institutions[117]. Economic and Market Conditions - The Group anticipates benefiting from the economic recovery following the global COVID-19 vaccination efforts[16]. - The COVID-19 pandemic has posed significant challenges, affecting business operations and financial performance, with ongoing uncertainties regarding its impact[90]. - The COVID-19 pandemic is expected to continue impacting profit margins for contractors in Hong Kong, including the Group, in 2022[178]. - The construction industry in Hong Kong is expected to grow due to strong housing needs and government infrastructure projects, but future growth depends on the property market's prosperity[107]. Cost Control and Financial Management - Effective cost control measures have been implemented to optimize resource allocation and capture business opportunities[65]. - The company’s long-standing relationships with subcontractors contributed to effective resource allocation and cost control[69]. - Administrative expenses decreased to HK$65.44 million in 2021 from HK$78.17 million in 2020, mainly due to reduced staff costs[87]. - Finance costs significantly decreased to HK$2.41 million in 2021 from HK$12.05 million in 2020, attributed to improved liquidity and reduced bank borrowings[87]. - The repayment of bank loans has led to a decrease in bank interest expenses, aligning with the Group's strategy of effective cost control[151][152]. Employee and Safety Information - The Group has 1,571 employees as of December 31, 2021, with total remuneration approximately HK$476 million for the year[125]. - The accident rate for the Group was 7.49 per 1,000 workers in 2021, down from 10.04 per 1,000 workers in 2020, significantly lower than the industry average of 26.1 per 1,000 workers[118]. - The Group has not experienced any strikes, work stoppages, or labor disputes affecting operations during the year, indicating a stable workforce[125]. Compliance and Environmental Management - The construction industry is highly regulated, requiring the Group to maintain various registrations, licenses, and certifications to operate[91]. - The Group has maintained a low number of environmental-related non-compliance incidents, with no convictions in 2020 and 2021[134][138]. - The Group has established an environmental management system in accordance with ISO14001:2015 standards and was awarded certification in 2006[133][137]. Financial Position and Liquidity - As of December 31, 2021, the Group's capital structure consisted of equity of HK$375.59 million, down from HK$397.59 million in 2020, and bank loans of HK$82.12 million, reduced from HK$200.42 million in 2020[144][147]. - The Group maintained a healthy liquidity position with cash and cash equivalents of HK$236.84 million as of December 31, 2021, compared to HK$449.83 million in 2020[145][148]. - The current ratio of the Group was 1.20 as of December 31, 2021, slightly up from 1.17 in 2020[145][148]. - The Group's gearing ratio improved significantly to 21.86% as of December 31, 2021, compared to 50.41% in 2020[155]. - Net current assets as of December 31, 2021, were HK$282.92 million, slightly down from HK$284.42 million in 2020[156]. Risks and Challenges - Reliance on contracts from the Hong Kong Government as the largest customer poses risks if there are delays or decreases in government spending[96]. - The Group's financial performance may be adversely affected if it fails to secure new tenders or if project estimates prove inaccurate[98]. - The Board considers that the Group was not exposed to significant foreign exchange risk due to its operations being primarily denominated in Hong Kong dollars[162].

Revenue Performance - The overall revenue for the period amounted to HK$1,460.43 million, representing a decrease of approximately 8.26% compared to HK$1,591.85 million for the corresponding period last year[13]. - Overall revenue decreased by approximately HK$131.42 million, or approximately 8.26%, from HK$1,591.85 million for the six months ended 30 June 2020 to HK$1,460.43 million for the six months ended 30 June 2021[88]. - Revenue from general building business decreased by approximately HK$43.47 million, or approximately 3.52%, from HK$1,234.37 million to HK$1,190.90 million[89]. - Revenue from civil engineering business decreased by approximately HK$82.64 million, or approximately 31.05%, from HK$266.11 million to HK$183.47 million[90]. - Revenue from other services amounted to HK$86.06 million, representing 5.90% of total revenue, compared to HK$91.37 million and 5.74% in the previous period[91]. Project and Contract Overview - As of June 30, 2021, the total original contract sum of ongoing projects was approximately HK$13 billion, an increase from HK$12 billion as of December 31, 2020[18]. - The outstanding value of projects on hand as of June 30, 2021, was approximately HK$7.9 billion, up from HK$5.3 billion as of December 31, 2020[18]. - The Group had a total of 14 projects for general building works and 10 projects for civil engineering works on hand as of June 30, 2021[18]. - The original contract sum for the construction of public rental housing was HK$3,740.0 million, with revenue recognized of HK$369.8 million[28]. - The company is engaged in electrical and mechanical works for sewage treatment facilities, with a contract sum of HK$557.6 million and revenue recognized of HK$63.0 million, expected to complete by May 2024[28]. Financial Performance - Overall gross profit increased by HK$44.80 million, or approximately 708.78%, from HK$6.32 million to HK$51.12 million[94]. - Overall gross profit margin increased from 0.40% to 3.50% for the six months ended 30 June 2021[94]. - Profit attributable to equity shareholders for the six months ended 30 June 2021 was HK$9.29 million, compared to a loss of HK$30.48 million for the same period in 2020[97]. - Basic earnings per share for the period was 2.32 cents, compared to a loss of 7.62 cents per share in 2020[173]. - Total comprehensive income for the period was HKD 9,825,000, compared to a loss of HKD 30,369,000 in the same period last year[178]. Liquidity and Capital Structure - Cash and cash equivalents as of June 30, 2021, were HK$247.62 million, a decrease from HK$449.83 million as of December 31, 2020[104]. - The current ratio improved to 1.23 as of June 30, 2021, compared to 1.17 as of December 31, 2020[99]. - The Group's bank loans decreased to HK$65.28 million from HK$200.42 million as of December 31, 2020[110]. - The Group's gearing ratio improved to 17.39% as of June 30, 2021, down from 50.41% as of December 31, 2020[111]. - Current liabilities decreased to HKD 1,439,874,000 from HKD 1,994,852,000 at the end of 2020, reflecting improved liquidity management[182]. Corporate Governance and Management - The Group's management structure includes the chairman also serving as the managing director, which the Board believes is in the best interest of effective management and business development[131]. - The Board is committed to maintaining high standards of corporate governance to enhance shareholder value and attract investment[129][134]. - The Company has not established a standalone internal audit department but has appointed an external adviser to review its internal control system[132][135]. - The Group's employee compensation policy includes salaries, medical benefits, and bonuses, with training provided to enhance employee loyalty and retention[123]. Future Outlook and Market Conditions - The management is optimistic about future project awards and ongoing market demand in Hong Kong and Macau[11]. - The Group expects continued pressure on profit margins for contractors in Hong Kong due to the ongoing impact of COVID-19, despite signs of economic recovery as vaccination rates increase[125][126]. - The Group anticipates that the global economic recovery remains uncertain, influenced by the ongoing pandemic and its variants[125][126]. - The Board remains confident in the Group's future development, leveraging existing competitive strengths to achieve long-term business objectives[125][126]. Dividend and Shareholder Information - The interim dividend declared is HK$2.0 cents per share, amounting to approximately HK$8 million, a decrease from HK$4.0 cents per share and HK$16 million in the same period last year[141][143]. - The interim dividend payment is expected to be made on or about September 30, 2021[141]. - The company approved dividends of $32,000,000 in respect of the previous year, which is consistent with its dividend policy despite the prior period loss[196].