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].

Financial Performance - The total revenue of SFK Construction Holdings Limited decreased by 30.94% to HK$3,772 million in 2020, down from HK$5,462 million in 2019[23] - The Group recorded a net loss attributable to equity shareholders of HK$19.03 million in 2020, compared to a net loss of HK$28.83 million in 2019[23] - The Group's revenue for the Year decreased by 30.94% to HK$3,772.12 million, down from HK$5,461.87 million in 2019[36] - The net loss attributable to equity shareholders of the Company was HK$19.03 million, an improvement from a net loss of HK$28.83 million in 2019[36] - The group recorded a gross loss of HK$39.92 million in 2020, compared to a gross profit of HK$75.15 million in 2019, resulting in a gross profit margin of -1.06%[99] - The revenue recognized during the financial year reflects a decrease compared to the previous year, indicating a need for strategic adjustments[69] - Total revenue for the year decreased by approximately HK$1,689.75 million, or 30.94%, from HK$5,461.87 million in 2019 to HK$3,772.12 million in 2020[89] - Revenue from general building business decreased by approximately HK$1,379.38 million, or 32.17%, from HK$4,288.19 million in 2019 to HK$2,908.81 million in 2020[90] - Revenue from civil engineering business decreased by approximately HK$340.00 million, or 34.39%, from HK$988.80 million in 2019 to HK$648.80 million in 2020[91] - The decrease in revenue was primarily due to the completion of certain contracts and the impact of COVID-19 on project progress[90][91] Project Awards and Ongoing Work - SFK was awarded 9 new projects with a total original contract sum of approximately HK$1,933 million in 2020, an increase from HK$1,255 million in 2019[24] - The outstanding value of ongoing projects as of December 31, 2020, was approximately HK$5.3 billion, down from HK$6.3 billion in 2019[24] - After the year, SFK was awarded a project for infrastructure works and two projects for maintenance works with a total original contract sum of approximately HK$3.1 billion[24] - As of December 31, 2020, the Group had a total of 12 projects for general building works and 15 projects for civil engineering works on hand, with a total original contract sum of approximately HK$12 billion[46] - The Group has been awarded new contracts post-reporting period, including a general building works contract valued at HK$1,497 million[80] Market Conditions and Challenges - The competition in the construction market remained intense, leading to a decrease in revenue and an increase in overall operating costs during the Year[36] - The outbreak of COVID-19 decelerated the progress of existing projects, resulting in increased project overhead and subcontracting costs[36] - The COVID-19 pandemic has significantly disrupted the Group's operations, leading to challenges in accessing capital and affecting customer payment capabilities, which may impact liquidity[116] - The Hong Kong Government remains the Group's largest customer, and any decrease or delay in government spending on construction could adversely affect the Group's business and financial position[122] - The Group operates on a non-recurring project basis, relying on successful tenders for contract awards, which may vary over time and impact financial performance if new contracts are not secured[126] Safety and Compliance - The accident rate for 2020 was 10.04 per 1,000 workers, down from 10.44 per 1,000 workers in 2019, significantly lower than the industry average of 29.00[167] - The Group maintained compliance with all applicable laws and regulations in Hong Kong and Macau during the Year[192] - The Group was fined a total of HK$26,000 for two summonses related to violations of the Factories and Industrial Undertaking Ordinance during the Year[191] - The Group's safety management system was enhanced to reduce risks related to safety issues[167] Dividends and Shareholder Returns - The Board recommends a final dividend of HK8.0 cents per share to reward shareholders for their support[26] - The Board proposed a final dividend of HK$0.08 per share as a return to shareholders[30] Financial Position and Liquidity - The Group's equity was HK$397.59 million, down from HK$448.17 million in 2019, while bank loans decreased to HK$200.42 million from HK$408.46 million[194] - The Group's cash and cash equivalents increased to HK$449.83 million as of December 31, 2020, compared to HK$263.51 million in 2019[194] - The current ratio as of December 31, 2020, was 1.17, slightly down from 1.19 in 2019[194] - The Group's net borrowings improved from HK$145 million as of December 31, 2019, to a net cash position of HK$249 million as of December 31, 2020[199] - The Group had approximately HK$2,540 million of unutilized banking facilities as of December 31, 2020, compared to HK$2,205 million in 2019[200] Operational Strategies - The Group maintains a commitment to safety, quality, and environmental standards, holding ISO certifications that enhance credibility and competitiveness[85] - The management has implemented a centralized resource sourcing and allocation system to optimize resource utilization and reduce costs[85] - The Group's strategy includes regular monitoring of liquidity requirements to ensure sufficient cash reserves[142] - The Group's procurement strategy relies on a pre-qualified list of suppliers, ensuring a stable supply of construction materials[175] Environmental Commitment - The Group's policy includes a commitment to sustainable construction and minimizing adverse environmental impacts[185] - The Group was awarded ISO14001 certification in 2006 and ISO50001 certification in 2015 for its environmental management systems[180] - There were no convictions for environmental law violations in both 2019 and 2020, indicating a low number of environmental-related noncompliance incidents[181] Employee and Workforce Management - The Group maintained a stable workforce of 1,698 employees as of December 31, 2020, with total remuneration approximately HK$610 million[176] - The Group has not experienced any significant disruptions from subcontractors, with many having worked with the Group for over ten years[175]

Revenue Performance - The overall revenue for the period amounted to HK$1,591.85 million, representing a decrease of approximately 42.32% compared to HK$2,759.68 million for the corresponding period last year[16]. - Overall revenue decreased by approximately HK$1,167.83 million, or approximately 42.32%, from HK$2,759.68 million for the six months ended June 30, 2019, to HK$1,591.85 million for the six months ended June 30, 2020[70]. - Revenue from general building business decreased by approximately HK$957.65 million, or approximately 43.69%, from HK$2,192.02 million to HK$1,234.37 million during the same period[71]. - Revenue from civil engineering business decreased by approximately HK$209.27 million, or approximately 44.02%, from HK$475.38 million to HK$266.11 million[72]. - Revenue from other services amounted to HK$91.37 million, representing 5.74% of total revenue, an increase from 3.34% in the previous year[73]. - Revenue attributable to general building and civil engineering works amounted to HK$1,234.37 million and HK$266.11 million, representing approximately 77.54% and 16.72% of total revenue, respectively[61]. - The outbreak of COVID-19 decelerated the progress of existing projects, impacting revenue contributions[71]. Project and Contract Status - As of June 30, 2020, the company had a total of 12 projects for general building works and 17 projects for civil engineering works on hand, with a total original contract sum of approximately HK$14 billion[20]. - The outstanding value of projects on hand as of June 30, 2020, was approximately HK$6.9 billion, an increase from HK$6.3 billion as of December 31, 2019[20]. - The company is involved in the Three Runway System Project for Hong Kong International Airport, with a contract value of HK$440.7 million, participating in 40% of the contract[39]. - The company is engaged in ongoing projects with original contract completion dates postponed, indicating continued revenue generation potential[39]. - The company has ongoing maintenance and management contracts for public roads in Kowloon East, with a projected revenue of approximately HK$482.6 million[39]. - The company completed the construction of Public Rental Housing Development and Subsidised Sale Flats Development, generating revenue of approximately HK$3,740.0 million and HK$1,911.0 million respectively[31]. Financial Performance - Overall gross profit decreased by HK$62.84 million or approximately 90.86% to HK$6.32 million for the six months ended June 30, 2020, down from HK$69.16 million for the same period in 2019[80]. - Gross profit margin fell from 2.51% for the six months ended June 30, 2019 to 0.40% for the six months ended June 30, 2020[81]. - Loss attributable to equity shareholders was HK$30.48 million for the six months ended June 30, 2020, compared to a profit of HK$13.16 million for the same period in 2019[86]. - Loss from operations was $(26,943) compared to a profit of $24,893 in the previous year[175]. - Loss before taxation was $(36,802), a sharp decline from a profit of $15,931 in 2019[175]. - Total comprehensive income for the period was $(30,369), down from $13,095 in the previous year[180]. Cash Flow and Liquidity - Cash and cash equivalents were HK$245.11 million as of June 30, 2020, compared to HK$263.51 million as of December 31, 2019[93]. - The current ratio improved to 1.22 as of June 30, 2020, compared to 1.19 as of December 31, 2019[88]. - The Group had approximately HK$2,232 million in undrawn bank financing as of June 30, 2020, compared to HK$2,205 million as of December 31, 2019[105]. - The company experienced a net cash decrease of HKD 18,224,000 in cash and cash equivalents, compared to a decrease of HKD 55,628,000 in the same period last year, indicating better cash management[199]. - The company reported a net cash generated from operating activities of HKD 109,045,000, significantly up from HKD 12,533,000 in the prior year, showcasing improved operational efficiency[199]. Corporate Governance and Management - The Company has adopted the Model Code for Securities Transactions, and all Directors confirmed compliance during the period[139]. - The Company aims to enhance corporate governance standards to meet regulatory requirements and shareholder expectations[131]. - The Board believes the current management structure is effective and will continue to review corporate governance practices[130]. - The Company has implemented appropriate measures for internal audit functions despite not having an independent internal audit department[129]. Shareholder Information - The Company declared an interim dividend of HK4.0 cents per share, amounting to approximately HK$16 million, compared to nil for the same period in 2019[140]. - The register of members will be closed from September 17 to September 18, 2020, for determining entitlements to the proposed interim dividend[141]. - The company is owned approximately 71.39% by Good Target, 18.94% by Ocean Asset, and 3.54% by Growth Asset[167].

Financial Performance - For the year ended December 31, 2019, the total revenue of the Group decreased by 11.86% to HK$5,462 million, down from HK$6,197 million in 2018[20]. - The Group recorded a net loss attributable to equity shareholders of HK$28.83 million, compared to a net profit of HK$129.69 million in 2018[20]. - Revenue decreased by approximately HK$735.29 million, or 11.86%, from HK$6,197.16 million in 2018 to HK$5,461.87 million in 2019[130]. - Overall gross profit decreased by approximately HK$198.03 million, or 72.49%, from HK$273.18 million in 2018 to HK$75.15 million in 2019[140]. - Gross profit margin for 2019 was 1.38%, down from 4.41% in 2018, primarily due to increased construction costs and losses from maintenance contracts[141]. Contract Awards and Projects - The outstanding value of contracts on hand as of December 31, 2019, was approximately HK$6.3 billion, down from HK$10 billion in 2018[21]. - The Group was awarded 14 new contracts with a total original contract sum of approximately HK$1,255 million, significantly lower than HK$5,852 million in 2018[21]. - The largest project awarded was the main contract for the Park for West Kowloon Cultural District Authority, with an original contract sum of approximately HK$1,140.2 million[50]. - The company is involved in the construction of 5 domestic blocks with 4,846 flats, with a total contract sum of HK$3,047.0 million[94]. - The Group has been awarded a contract for the construction of subsidised sale flats valued at approximately HK$1,911 million after the reporting period[110]. Operational Challenges - Social unrest and mass protests negatively impacted the management of construction sites, resulting in higher overall operating costs[20]. - Unexpected delays in project inspections and payment certifications caused deterioration in cash flow and increased financing costs[39]. - The impact of COVID-19 on the supply chain and construction materials remains a concern for the Group[27]. - The original contract completion date for several projects has been postponed, with ongoing contracts as of December 31, 2019[99]. Strategic Outlook - The Group remains optimistic about the prospects of the construction business in Hong Kong due to supportive government policies[22]. - The Chief Executive's 2019 Policy Address emphasized land development for public housing, which is expected to create considerable opportunities for the construction industry in Hong Kong[22]. - Future growth prospects depend on the continued prosperity of the property market and availability of major construction projects[165]. - The Group's strategy includes regular monitoring of liquidity requirements to ensure sufficient cash reserves[171]. Revenue Breakdown - The company's revenue from general building works amounted to HK$4,288.19 million, representing approximately 78.51% of total revenue for the year[103]. - Revenue from civil engineering works was HK$988.80 million, accounting for about 18.10% of total revenue[103]. - Revenue from other services amounted to HK$184.88 million in 2019, representing 3.39% of total revenue, an increase from 2.48% in 2018[133]. Cost Management - The decline in overall gross profit margin was attributed to the replacement of non-performing subcontractors, leading to increased subcontracting costs[20]. - Effective cost control measures have been implemented, including centralized resource sourcing to reduce costs and optimize resource allocation[123]. - The replacement of underperforming subcontractors resulted in increased overall subcontracting costs[39]. Employee and Safety Management - The Group employed 2,015 employees as of December 31, 2019, with total remuneration approximately HK$710 million[184]. - Accident rate improved to 10.44 per 1,000 workers in 2019 from 12.39 per 1,000 workers in 2018, significantly lower than the industry average of 31.70[171]. - The Group emphasizes the importance of maintaining harmonious relationships with employees to enhance loyalty and retention[186]. Environmental Responsibility - The Group has established an environmental management system in accordance with ISO14001:2004 and was awarded certification in 2006[193]. - The Group focuses on pollution prevention, waste minimization, and resource conservation as critical management considerations[192]. - The Group maintained a low number of environmental-related non-compliance incidents, with no convictions in 2019 and only one in 2018[194].