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].

Revenue Performance - The overall revenue for the six months ended June 30, 2019, amounted to HK$2,759.68 million, representing a decrease of approximately 2.38% compared to HK$2,827.07 million for the corresponding period in 2018[14]. - The decrease in revenue was primarily due to a mix of projects from general building works and civil engineering works undertaken during the period[14]. - Revenue recognized during the six months ending June 30, 2019, was approximately HK$1,947.0 million, with a profit margin of 121.9 million[34]. - Revenue from general building works amounted to HK$2,192.02 million, representing approximately 79.43% of total revenue for the period[56]. - Revenue from civil engineering works was HK$475.38 million, accounting for about 17.23% of total revenue[56]. - Other services, including property management and engineering services, contributed approximately 3.34% of total revenue, up from 1.76% in the previous year[58]. - Overall revenue decreased by approximately HK$67.39 million, or 2.38%, from HK$2,827.07 million for the six months ended 30 June 2018 to HK$2,759.68 million for the six months ended 30 June 2019[66]. - Revenue from civil engineering business decreased by approximately HK$246.62 million, or 34.16%, from HK$722.00 million to HK$475.38 million[66]. - Revenue from general building business increased by approximately HK$136.86 million, or 6.66%, from HK$2,055.16 million to HK$2,192.02 million[66]. Project and Contract Details - As of June 30, 2019, the company had a total of 19 projects for general building works and 10 projects for civil engineering works, with a total original contract sum of approximately HK$17 billion, down from HK$20 billion as of December 31, 2018[21]. - The outstanding value of ongoing projects as of June 30, 2019, was approximately HK$8 billion, compared to HK$10 billion as of December 31, 2018[21]. - The company is involved in the construction of 5 domestic blocks with a total of 4,846 flats, with a contract sum of HK$3,047.0 million and recognized revenue of HK$524.3 million as of October 2019[34]. - The company is undertaking infrastructure works for the Kai Tak Development, with a contract sum of HK$1,947.0 million and recognized revenue of HK$121.9 million as of September 2019[34]. - A contract for the construction of subsidized sale flats has a total value of HK$513.0 million, with recognized revenue of HK$105.6 million as of February 2020[34]. - The maintenance of hydraulic and pumping systems for the Airport Authority has a contract value of HK$221.8 million, with recognized revenue of HK$23.6 million as of March 2020[34]. - The company is involved in a project for the construction of the Global Graduate Tower at HKUST, with a contract sum of HK$316.4 million and recognized revenue of HK$63.8 million as of February 2020[34]. - The proposed subsidized housing development project has a contract sum of HK$464.0 million, with recognized revenue of HK$141.1 million as of June 2019[34]. - The company has a contract with the Hospital Authority for minor works, valued at HK$734.2 million, with recognized revenue of HK$86.0 million as of June 2019[34]. - The company is engaged in maintenance projects for properties managed by the Architectural Services Department, with a contract value of HK$1,471.8 million and recognized revenue of HK$203.7 million as of March 2021[43]. Financial Performance - Overall gross profit decreased by HK$51.98 million, or approximately 42.91%, from HK$121.14 million to HK$69.16 million[70]. - Overall gross profit margin decreased from 4.28% to 2.51%[71]. - Profit attributable to equity shareholders decreased by approximately HK$49.54 million, or 79.01%, from HK$62.70 million to HK$13.16 million[78]. - Other revenue decreased to HK$0.43 million from HK$2.32 million[73]. - Administrative expenses increased to HK$44.90 million from HK$43.63 million, mainly due to higher rental costs for the new head office[73]. - The profit for the period was HK$13,134, representing a decline of 78.9% compared to HK$62,423 in the previous year[147]. - The total comprehensive income for the period was HK$13,095, down from HK$62,400 in the same period last year[147]. - The company reported earnings per share of 3.29 cents, a significant decrease from 15.68 cents in 2018[142]. - The Group declared dividends of HKD 16,000 for the period, compared to HKD 74,000 in the previous year, reflecting a reduction of approximately 78.4%[165]. Operational Challenges - The public outcry over the "Lead-in-Water" incident and quality issues in the Shatin-Central-Link project has led to increased scrutiny and cautious inspection by government staff, affecting project progress and increasing construction costs[94]. - Ongoing global political turbulence and trade disputes may deter investments in infrastructure and private development in Hong Kong, leading to a decrease in public works available for tender and increased price competition[94]. - The Group's profit margins are expected to remain under pressure due to delays in public works fund approvals and severe competition[94]. - The original completion date for certain contracts has been postponed, indicating ongoing project management challenges[54]. Governance and Compliance - The Company has adopted the Corporate Governance Code and believes it has complied with all provisions except for deviations regarding the roles of chairman and CEO[101]. - The Company does not have a standalone internal audit department but has appointed an external adviser to review its internal control system[103]. - The Board believes the current management structure is effective and will continue to review corporate governance practices to enhance standards and meet shareholder expectations[104]. Cash Flow and Financing - As of June 30, 2019, the Group's total bank borrowings were HK$369.01 million, stable compared to HK$371.73 million as of December 31, 2018, primarily used for working capital of ongoing projects[80]. - The Group had approximately HK$1,871 million of unutilized banking facilities as of June 30, 2019, down from HK$2,056 million as of December 31, 2018[80]. - The gearing ratio as of June 30, 2019, was 75.17%, slightly down from 75.28% as of December 31, 2018[80]. - Capital expenditures for the six months ended June 30, 2019, amounted to approximately HK$11.83 million, a decrease from HK$19.47 million in the same period of 2018[85]. - The net cash generated from operating activities for the six months ended June 30, 2019, was $12,533,000, a significant improvement compared to a net cash used of $(49,275,000) in the same period of 2018[169]. - The net cash generated from investing activities was $5,453,000, compared to a net cash used of $(28,861,000) in the prior year[169]. - The net cash used in financing activities amounted to $(73,614,000), a decline from net cash generated of $56,327,000 in the previous year[169]. Accounting Policies - The Group has applied HKFRS 16 starting January 1, 2019, which may affect future financial reporting[148]. - The Group's accounting policies remain consistent with those adopted in the 2018 annual financial statements, except for the changes due to HKFRS 16[180]. - The transition to HKFRS 16 has not resulted in restating comparative information[186]. - Under HKFRS 16, all leases are capitalized, eliminating the distinction between operating and finance leases previously required by HKAS 17[194]. - The lease liability is recognized at the present value of lease payments, discounted using the implicit interest rate or relevant incremental borrowing rate[194]. - The right-of-use asset is initially measured at cost, including the lease liability amount and any initial direct costs incurred[195].

Financial Performance - The Group achieved a historical high revenue of approximately HK$6,197 million for the year ended 31 December 2018, representing an increase of 34.3% from HK$4,612 million in 2017[11] - The consolidated net profit for the year was approximately HK$129 million, a decrease of 9.8% compared to HK$143 million in 2017[11] - The Group's revenue increased by 34.37% from HK$4,611.97 million to HK$6,197.16 million for the year[30] - Profit attributable to equity shareholders for 2018 amounted to HK$129.69 million, compared to HK$141.87 million in 2017[30] - Revenue increased by approximately HK$1,585.19 million, or approximately 34.37%, from HK$4,611.97 million in 2017 to HK$6,197.16 million in 2018[95] - Gross profit increased by approximately HK$26.02 million, or about 10.53%, from HK$247.16 million in 2017 to HK$273.18 million in 2018, although the gross profit margin decreased to 4.41% from 5.36% due to rising construction costs[104][106] - Profit attributable to equity shareholders decreased by approximately HK$12.18 million, or about 8.59%, from HK$141.87 million in 2017 to HK$129.69 million in 2018[110][113] Contracts and Projects - The Group was awarded eleven new contracts with a total contract value of approximately HK$5,852 million, reflecting an increase of 43.8% from HK$4,070 million in 2017[12] - The outstanding value of contracts on hand as of 31 December 2018 was approximately HK$10 billion, indicating a strong pipeline for future revenue[12] - Significant new civil engineering contracts awarded during the year included values of HK$482 million and HK$409 million[12] - The Group expects the high outstanding value of contracts to provide steady growth in business revenue and earnings for the coming years[12] - In 2018, the company was awarded 11 projects as a main contractor in Hong Kong, with a total original contract sum of approximately HK$5,852 million[37] - As of December 31, 2018, the company had a total of 21 general building projects and 8 civil engineering projects on hand, with a total original contract sum of approximately HK$20 billion[41] Revenue Breakdown - Revenue from general building business rose by approximately HK$1,531.42 million, or approximately 46.75%, from HK$3,275.66 million in 2017 to HK$4,807.08 million in 2018[96] - Revenue from civil engineering business increased slightly by approximately HK$8.23 million, or approximately 0.67%, from HK$1,228.05 million in 2017 to HK$1,236.28 million in 2018[97] - Revenue from other services amounted to HK$153.81 million in 2018, representing 2.48% of the total revenue of the Group[98] - General building and civil engineering business accounted for approximately 77.57% and 19.95% of the total revenue, respectively, for the Year[76] - The increase in general building revenue was primarily due to new contracts for public rental housing and subsidised sale flats for the Hong Kong Housing Authority[96] Operational Challenges - The construction industry in Hong Kong faces challenges due to increased scrutiny and quality control measures, but the Group remains optimistic about maintaining steady growth[17] - The company is optimistic about maintaining stable growth in the construction business despite challenges from public protests and increased scrutiny on construction quality[36] - The company’s construction activities may face increased costs and extended completion times due to overly cautious measures taken by government inspectors[36] - The Group's business may be adversely affected by cost overruns and construction risks[124] Financial Position - As of December 31, 2018, the Group's equity was HK$493.78 million, an increase from HK$474.80 million in 2017[168] - The Group's bank loans and overdrafts amounted to HK$371.73 million as of December 31, 2018, compared to HK$307.74 million in 2017[168] - The Group maintained a cash position of HK$216.90 million as of December 31, 2018, down from HK$256.76 million in 2017[169] - The current ratio of the Group was 1.25 as of December 31, 2018, slightly decreased from 1.29 in 2017[169] - The gearing ratio as of December 31, 2018, was 75.28%, up from 64.82% in 2017[179] Management and Compliance - The Group maintains ISO9001, ISO14001, ISO50001, and OHSAS18001 certifications, enhancing public image and competitiveness[85] - The Group's commitment to safety, quality, and environmental standards is supported by established quality assurance measures[84] - The Group has established an environmental management system in accordance with ISO14001:2004 standards and was awarded certification in 2006[159] - The Group had only one environmental-related non-compliance incident in 2018, compared to none in 2017[160] Future Outlook - The Board is confident in the Group's future development, citing the Hong Kong Government's commitment to infrastructure investment and housing policy aimed at increasing land supply[199] - The Group aims to diversify resources into different businesses and geographical areas to capture new opportunities[20] - The Task Force on Land Supply's recommendations are expected to benefit civil engineering and general building contractors in Hong Kong[19]