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]