FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Chinney Kin Wing Holdings Limited 建業建榮控股有限公司 (於百慕達註冊成立之有限公司） 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01556 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,000,000,000 | HKD | | 0.1 | HKD | | 300,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 3, ...

Financial Performance - The company reported a significant increase in revenue for the fiscal year ending December 31, 2024, with total revenue reaching HKD 1.2 billion, representing a 15% year-over-year growth[16]. - The company's revenue increased by 17.1% to HKD 2,486,000,000 for the year ending December 31, 2024, compared to HKD 2,122,000,000 in 2023[32]. - Profit attributable to equity holders rose to HKD 127,000,000, reflecting a 5.5% increase from HKD 120,000,000 in the previous year[32]. - The company reported a net profit margin of 12%, up from 10% in the previous year, indicating improved cost management and operational efficiency[16]. - Gross profit for the year was HKD 365,700,000, a 7.4% increase from HKD 340,600,000, but the gross profit margin decreased from 16.0% to 14.7% due to rising costs[115]. - Net profit for the year was HKD 127,100,000, a 5.5% increase from HKD 120,500,000, supported by higher gross profit and interest income[118]. - The company's total revenue for the year was HKD 2,485,700,000, an increase of 17.1% from HKD 2,122,400,000 in the previous year[114]. - The company maintained a strong financial position with cash and bank balances of HKD 562,500,000 as of December 31, 2024, slightly down from HKD 566,500,000 the previous year[119]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.50 per share, alongside a special dividend of HKD 0.20 per share, reflecting strong financial performance[16]. - The board proposed a final dividend of HKD 0.02 per share and a special dividend of HKD 0.02 per share, pending shareholder approval[33]. - The company maintains a dividend policy that considers sufficient cash reserves for operational needs and future business growth, with no guarantee of specific dividend payments for any period[100]. - The company paid dividends totaling HKD 60,000,000 in 2024, an increase of 21.3% from HKD 49,500,000 in 2023[185]. Market and Growth Strategy - User data showed a 20% increase in active users, reaching 500,000 by the end of 2024, indicating strong market engagement[16]. - The company provided an optimistic outlook for 2025, projecting a revenue growth of 10% to 12%, driven by new product launches and market expansion strategies[16]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[16]. - A strategic acquisition of a local competitor was completed, valued at HKD 200 million, expected to enhance the company's service capabilities and customer base[16]. - The company is exploring partnerships with technology firms to leverage innovative solutions, aiming to enhance product development and customer experience[16]. Corporate Governance - The company has a commitment to high standards of corporate governance, ensuring transparency and accountability to protect shareholder interests[62]. - The board consists of six executive directors and four independent non-executive directors, with a clear division of responsibilities between the chairman and the CEO[66][72]. - The company has established mechanisms to ensure independent insights and opinions from the board, with all independent non-executive directors confirming their independence[71]. - The company aims for sustainable growth through a proactive corporate culture, emphasizing integrity and accountability[63]. - The board has held two regular meetings during the year, deviating from the corporate governance code which recommends at least four meetings annually[67]. - The company has a comprehensive risk management policy to ensure operations align with the best interests of shareholders and stakeholders[64]. - The company has implemented a director and senior management liability insurance to protect individual directors' interests[69]. - The company has a balanced approach to corporate governance policies, ensuring compliance with the listing rules[62]. Operational Efficiency and Investments - Investment in new technology development increased by 25%, totaling HKD 150 million, aimed at enhancing operational efficiency and product offerings[16]. - The company is implementing an AI-driven site monitoring system and improved IT infrastructure to enhance operational efficiency in the new fiscal year[125]. - The group plans to invest approximately HKD 90 billion annually in public works projects over the next four years, a 17% increase compared to the average of the past five years[37]. - Strategic investments in equipment, facilities, and human capital are ongoing to strengthen market position and focus on sustainable growth[38]. Challenges and Industry Outlook - The construction industry is expected to face challenges in 2025, with anticipated growth slowing to 0.7% due to external uncertainties and liquidity pressures[36]. - The group anticipates a gradual decrease in private residential development, projecting the development of 20,000 units by 2025 due to cautious strategies and reduced land sales[38]. - The public sector continues to present strong business opportunities, offsetting the slowdown in private development, with a projected annual growth of 2.6% from 2026 to 2029[37]. - The group maintains a flexible strategy in resource allocation amidst high borrowing costs and liquidity challenges expected from mid-2024[38]. Board Composition and Director Information - The board consists of 10 directors, with four being independent non-executive directors, meeting the requirement of at least one-third independence[74]. - The board has 3 directors with service periods of 2 years or less and 7 directors with service periods of 7 to 10 years[88]. - The company has appointed a new independent non-executive director, effective December 2, 2024[70]. - Directors are required to participate in continuous professional development, with training records maintained for compliance and skill enhancement[76]. Financial Position and Assets - Total assets as of December 31, 2024, reached HKD 2,004,549,000, an increase of 14.1% from HKD 1,756,752,000 in 2023[127]. - Total liabilities increased to HKD (1,201,392,000), up from HKD (1,026,546,000) in 2023[127]. - The company's equity attributable to shareholders reached HKD 803,157,000, up from HKD 730,206,000 in 2023, reflecting a 10% growth[179]. - The company reported a decrease in trade receivables to HKD 203,081,000 from HKD 297,575,000 in 2023, indicating improved collection efficiency[178]. Compliance and Regulatory Matters - The company has confirmed compliance with a non-competition agreement established in 2015, ensuring no competition with Jianlian Group's business[151]. - The company has maintained a public float of at least 25% of its total issued shares as of the report date[154]. - Ernst & Young has been proposed for reappointment as the company's auditor at the upcoming annual general meeting[155]. - No serious violations of applicable laws and regulations were reported that could significantly impact the company's operations for the year ending December 31, 2024[152].

Financial Performance - Revenue for the year ended December 31, 2024, increased to HKD 2,485,662, representing a growth of 17.1% compared to HKD 2,122,397 in 2023[2] - Gross profit for the same period rose to HKD 365,666, up 7.4% from HKD 340,556 in 2023[2] - Net profit for the year was HKD 127,118, a 5.5% increase from HKD 120,466 in 2023[2] - Basic and diluted earnings per share increased to HKD 8.47, compared to HKD 8.03 in the previous year, reflecting a growth of 5.5%[2] - Total comprehensive income for the year was HKD 132,951, up from HKD 126,546 in 2023, marking a 5.4% increase[3] - The company reported a pre-tax profit of HKD 152,584,000 for 2024, compared to HKD 142,540,000 in 2023, reflecting an increase of about 7.3%[22] - The company recorded other income and gains of HKD 27,700,000, a 57.0% increase from HKD 17,700,000 in the previous year, mainly due to higher bank interest income[33] - The net profit for the fiscal year 2024 was HKD 127,100,000, up 5.5% from HKD 120,500,000 in 2023, attributed to increased gross profit and interest income[35] Assets and Liabilities - Non-current assets totaled HKD 502,061 as of December 31, 2024, compared to HKD 480,063 in 2023, indicating a growth of 4.6%[4] - Current assets increased to HKD 1,502,488, up from HKD 1,276,689 in 2023, representing a growth of 17.7%[4] - Total liabilities increased to HKD 1,201,392 from HKD 1,033,446 in 2023, reflecting a rise of 16.2%[4] - The company’s total assets as of December 31, 2024, amounted to HKD 2,004,549,000, up from HKD 1,756,752,000 in 2023, marking an increase of about 14.1%[16] - The total liabilities for the company as of December 31, 2024, were HKD 1,201,392,000, compared to HKD 1,026,546,000 in 2023, an increase of approximately 17%[16] - The company's equity attributable to shareholders rose to HKD 803,157, compared to HKD 730,206 in 2023, an increase of 10%[4] Dividends - The company proposed a final dividend of HKD 0.02 per share and a special dividend of HKD 0.02 per share, totaling HKD 60,000,000, consistent with the previous year[25] - The board has proposed a final dividend of HKD 0.02 per share and a special dividend of HKD 0.02 per share to celebrate the company's 10th anniversary on the Hong Kong Stock Exchange[46] - The proposed final dividend and special dividend for the year ending December 31, 2024, require shareholder approval at the annual general meeting[48] - The last date for trading shares with entitlement to the proposed dividends is June 10, 2025[48] Operational Highlights - The company continues to focus on foundation construction and drilling services, with plans for market expansion and potential new projects in the pipeline[5] - The construction services segment generated HKD 1,993,993,000, while the drilling and exploration segment contributed HKD 491,669,000 for the year ended December 31, 2024[19] - The foundation and drilling divisions had ongoing projects with contract amounts of approximately HKD 4,689,000,000 and HKD 1,127,000,000, respectively[30] - The drilling subsidiary has achieved a productivity of over 100,000 meters for the year ending December 31, 2024, and has successfully won new site investigation contracts[43] Employee and Corporate Governance - The group employed 738 employees in Hong Kong as of December 31, 2024, with annual salary reviews based on market rates and individual performance[39] - The board of directors held two regular meetings during the year, deviating from the corporate governance code which requires at least four meetings annually[52] - The audit committee consists of four independent non-executive directors, overseeing the group's accounting principles and financial statements[53] - The company's auditor, Ernst & Young, has agreed to the figures presented in the preliminary financial results for the year ending December 31, 2024[54] Strategic Initiatives - The group is implementing an AI-driven site monitoring system and improved IT infrastructure to enhance operational capabilities[44] - The group anticipates growth through strategic diversification, potential mergers and acquisitions, and continued investment in machinery and facilities[43] - The group has established a "Shepherd Training Program" to cultivate potential leaders and provide comprehensive training for young talents[44] Market Outlook - The construction industry outlook remains cautiously optimistic due to increased government infrastructure investment and public housing supply[45] - Major customer A contributed HKD 548,032,000 in revenue for 2024, down from HKD 1,033,314,000 in 2023, a decline of approximately 47%[17] - The company maintained a cash and bank balance of HKD 562,500,000 as of December 31, 2024, slightly down from HKD 566,500,000 in 2023, while remaining debt-free[36] Financial Management - Capital expenditures for the year totaled HKD 90,590,000, a decrease from HKD 104,979,000 in the previous year, indicating a reduction of approximately 13.7%[13] - The accounts receivable decreased to HKD 203,081,000 in 2024 from HKD 297,575,000 in 2023, with significant concentration risks from major customers[26] - The company reported a decrease in contract asset impairment from HKD 10,265,000 in 2023 to HKD 115,000 in 2024, indicating improved asset management[22] - Administrative expenses increased to HKD 237,300,000 in 2024 from HKD 204,600,000 in 2023, reflecting higher employee costs and maintenance expenses[34] - The group has provided corporate guarantees and indemnities totaling HKD 268,500,000 as of December 31, 2024, compared to HKD 230,600,000 in 2023[38] - There were no purchases, sales, or redemptions of the company's listed shares by the company or its subsidiaries during the year[55]

Financial Performance - The group's revenue increased by 7.9% to HKD 1,102,100,000 from HKD 1,021,500,000 in the previous period[7] - The profit and total comprehensive income for the period was HKD 55,200,000, representing a 26.2% increase from HKD 43,700,000 in the previous period[7] - The group's revenue increased by 7.9% to HKD 1,102,100,000, up from HKD 1,021,500,000 in the same period last year, with a contribution from the drilling segment rising by 121.9% to HKD 296,200,000[12] - The foundation segment's revenue decreased by 9.3% to HKD 805,800,000, down from HKD 888,000,000, primarily due to delays in private projects caused by unfavorable soil conditions[12] - Gross profit increased by 17.6% to HKD 174,500,000, compared to HKD 148,300,000 in the previous period, with the gross profit margin improving from 14.5% to 15.8%[13] - The group's net profit for the reporting period was HKD 55,200,000, an increase of 26.2% or HKD 11,500,000 compared to HKD 43,700,000 in the previous period, primarily due to an increase in gross profit from construction projects of HKD 26,200,000[16] - Revenue for the six months ended June 30, 2024, was HKD 1,102,053,000, compared to HKD 1,021,491,000 in the previous year, reflecting a growth in income[18] - Gross profit for the same period was HKD 174,482,000, up from HKD 148,312,000, indicating a positive trend in profitability[18] - The group reported a pre-tax profit of HKD 65,312,000, an increase from HKD 52,292,000, indicating a growth of 24.3%[23] - The group's pre-tax profit for the six months ended June 30, 2024, was HKD 55,197,000, compared to HKD 43,730,000 for the same period in 2023, indicating an increase of about 26.3%[45] Dividends and Shareholder Returns - The board recommended not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[8] - The company declared a dividend of HKD 60,000,000 for the year-end 2023, which was not present in the previous year[22] - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[46] Assets and Liabilities - Total current assets increased to HKD 1,432,210,000, up from HKD 1,276,689,000, representing a growth of approximately 12.2%[20] - Total assets as of June 30, 2024, amounted to HKD 1,922,150,000, with segment assets of HKD 1,536,459,000 in foundation construction and HKD 384,073,000 in drilling and site investigation[32] - Total liabilities increased to HKD 1,196,747,000 from HKD 1,026,546,000, representing a rise of approximately 16.6%[20] - The group’s total liabilities included HKD 747,411,000 in construction and supporting services and HKD 261,584,000 in drilling and site exploration as of June 30, 2024[34] - The company's equity decreased to HKD 725,403,000 from HKD 730,206,000, a decline of approximately 0.4%[22] Cash Flow and Financial Position - The group's cash and bank balances increased to HKD 736,400,000 as of June 30, 2024, from HKD 566,500,000 on December 31, 2023, primarily due to capital expenditures for the acquisition of factories and machinery[16] - Cash and cash equivalents rose to HKD 736,443,000, compared to HKD 566,535,000, marking an increase of 30%[24] - Operating cash flow for the six months ended June 30, 2024, was HKD 200,010,000, significantly higher than HKD 130,963,000 for the same period in 2023, reflecting a growth of 52.9%[23] - The net cash inflow from operating activities was HKD 199,966,000, compared to HKD 130,963,000, showing a growth of 52.7%[23] Employee and Administrative Expenses - Administrative expenses for the reporting period amounted to HKD 119,800,000, an increase of 17.4% or HKD 17,700,000 from HKD 102,100,000 in the previous period, mainly due to increased employee costs and maintenance expenses[15] - The group incurred employee benefit expenses of HKD 266,509,000 for the six months ended June 30, 2024, compared to HKD 235,341,000 in the same period of 2023, reflecting an increase of approximately 13.3%[41] - Short-term employee benefits for key management personnel increased to HKD 42,498,000 for the six months ended June 30, 2024, compared to HKD 37,817,000 for the same period in 2023, reflecting a growth of 17.7%[54] Strategic Development and Future Outlook - The group plans to strategically invest in talent development, machinery, and facilities to strengthen its competitive advantage[11] - The group aims to expand its service range and market coverage through the strategic development of its subsidiaries[11] - The group is actively seeking new warehouse and office buildings to expand its foundation business in both public and private sectors[11] - The group remains cautiously optimistic about the future of the foundation industry in Hong Kong, driven by long-term infrastructure and housing development plans[11] - The government aims to provide 308,000 public housing units by 2033-2034, reflecting a strong commitment to increasing housing supply despite current market challenges[10] Compliance and Governance - The group’s management has confirmed compliance with the corporate governance code throughout the reporting period[60] - No directors or their immediate family members were granted rights to profit from purchasing shares or bonds during the six-month period ending June 30, 2024[63] - The company and its subsidiaries did not purchase, sell, or redeem any of the company's listed shares during the six-month period ending June 30, 2024[66] Other Income and Gains - Other income and gains rose by 63.5% to HKD 10,700,000, up from HKD 6,500,000, mainly due to increased interest income from cash deposits[14] - The group recognized other income of HKD 10,695,000 for the six months ended June 30, 2024, compared to HKD 6,543,000 for the same period in 2023, marking an increase of about 63.7%[40] Segment Performance - The company operates in two segments: foundation construction and supporting services, and drilling and site investigation, with performance monitored for resource allocation and evaluation[29] - The adjusted profit before tax for the group was HKD 65,312,000, with segment profits of HKD 42,027,000 from foundation construction and HKD 24,903,000 from drilling and site investigation[30] - Inter-segment sales were conducted at market prices, with HKD 99,000 in inter-segment sales recorded[30]

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, comparing them with 2023 data [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, revenue grew 7.9% to HK$1,102,053 thousand, gross profit rose 17.6%, and profit for the period increased 26.2% to HK$55,197 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,102,053 | 1,021,491 | 7.9% | | Cost of construction | (927,571) | (873,179) | 6.2% | | Gross profit | 174,482 | 148,312 | 17.6% | | Other income and gains | 10,695 | 6,543 | 63.5% | | Administrative expenses | (119,809) | (102,071) | 17.4% | | Finance costs | (56) | (492) | -88.6% | | Profit before tax | 65,312 | 52,292 | 24.9% | | Income tax expense | (10,115) | (8,562) | 18.1% | | Profit and total comprehensive income for the period | 55,197 | 43,730 | 26.2% | | Basic and diluted earnings per share | 3.68 HK cents | 2.92 HK cents | 26.0% | [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total non-current assets were HK$489,940 thousand, total current assets HK$1,432,210 thousand, and net assets HK$725,403 thousand, with cash and cash equivalents up 29.9% Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 489,940 | 480,063 | 2.1% | | Total current assets | 1,432,210 | 1,276,689 | 12.2% | | Total current liabilities | 1,164,433 | 993,140 | 17.2% | | Net current assets | 267,777 | 283,549 | -5.6% | | Net assets | 725,403 | 730,206 | -0.7% | | Cash and cash equivalents | 736,443 | 566,535 | 29.9% | [Notes to the Condensed Consolidated Interim Financial Statements](index=3&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section details notes to the condensed consolidated interim financial statements for the six months ended June 30, 2024, covering company information, accounting policies, segment data, revenue, profit before tax, finance costs, income tax, EPS, dividends, PPE, trade receivables, and payables [1. Company Information](index=3&type=section&id=1.%20Company%20Information) The Company is a Bermuda-incorporated investment holding company, with subsidiaries primarily engaged in foundation construction, drilling, and site investigation in Hong Kong and overseas - The Company is an investment holding company, with its shares listed on the Main Board of the Hong Kong Stock Exchange[5](index=5&type=chunk) - Its principal activities include foundation construction and ancillary services, and drilling and site investigation works, serving public and private sector organizations in Hong Kong and overseas[5](index=5&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies and Disclosures](index=3&type=section&id=2.%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The unaudited condensed consolidated interim financial statements adhere to HKAS 34 and Listing Rules, with consistent accounting policies and no significant impact from new standards - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[6](index=6&type=chunk) - The accounting policies used in preparing the unaudited condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group’s annual financial statements for the year ended December 31, 2023[6](index=6&type=chunk) - The newly adopted revised accounting standards have no significant impact on the Group's performance and financial position[6](index=6&type=chunk) [3. Segment Information](index=4&type=section&id=3.%20Segment%20Information) The Group operates in Foundation and Drilling Divisions; H1 2024 external sales were HK$805,846 thousand for Foundation and HK$296,207 thousand for Drilling, with a combined segment result of HK$66,930 thousand - The Group's business is divided into two reportable operating segments: foundation construction and ancillary services (Foundation Division) and drilling and site investigation (Drilling Division)[7](index=7&type=chunk) Segment Information | Segment | Sales to external customers (HK$ thousand) | Inter-segment sales (HK$ thousand) | Segment result (HK$ thousand) | | :--- | :--- | :--- | :--- | | Foundation construction and ancillary services | 805,846 | – | 42,027 | | Drilling and site investigation | 296,207 | 99,000 | 24,903 | | **Total** | **1,102,053** | **99,000** | **66,930** | - As of June 30, 2024, the Foundation Division's segment assets were **HK$1,536,459 thousand**, and the Drilling Division's were **HK$384,073 thousand**[8](index=8&type=chunk) [4. Revenue, Other Income and Gains](index=7&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) H1 2024 revenue from customer contracts was HK$1,102,053 thousand, mainly from construction services, while other income and gains rose to HK$10,695 thousand, driven by bank interest and government grants Revenue by Service Type | Service Type | Foundation Construction and Ancillary Services (HK$ thousand) | Drilling and Site Investigation (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | Construction services | 805,846 | 296,207 | 1,102,053 | Other Income and Gains | Other Income and Gains Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 9,467 | 5,929 | | Government grants | 1,218 | – | | Exchange gains | – | 411 | | Others | 10 | 203 | | **Total** | **10,695** | **6,543** | - Government grants primarily refer to subsidies from the Construction Innovation and Technology Fund of the Hong Kong Government, with no unfulfilled conditions or contingencies attached[11](index=11&type=chunk) [5. Profit Before Tax](index=9&type=section&id=5.%20Profit%20Before%20Tax) Group profit before tax was HK$65,312 thousand, after deducting depreciation of property, plant and equipment (HK$32,963 thousand), right-of-use assets (HK$4,956 thousand), and staff welfare expenses (HK$266,509 thousand) Profit Before Tax Adjustments | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 32,963 | 33,732 | | Depreciation of right-of-use assets | 4,956 | 4,406 | | Staff welfare expenses (including directors' emoluments) | 266,509 | 235,341 | | Lease payments not included in the measurement of lease liabilities | 3,011 | 2,431 | | Net foreign exchange differences | 386 | (411) | [6. Finance Costs](index=9&type=section&id=6.%20Finance%20Costs) H1 2024 finance costs were HK$56 thousand, mainly lease liability interest, a significant 88.6% decrease year-on-year Finance Costs Breakdown | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Interest on lease liabilities | 56 | – | | Imputed interest on other payables | – | 492 | | **Total** | **56** | **492** | [7. Income Tax](index=9&type=section&id=7.%20Income%20Tax) H1 2024 income tax expense was HK$10,115 thousand, with the Hong Kong profits tax rate maintained at 16.5% Income Tax Expense | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Current – Hong Kong profits tax for the period | 11,670 | 11,183 | | Deferred | (1,555) | (2,621) | | **Total tax expense for the period** | **10,115** | **8,562** | - Hong Kong profits tax is provided at a rate of **16.5%**, consistent with 2023[14](index=14&type=chunk) [8. Earnings Per Share Attributable to Owners of the Company](index=10&type=section&id=8.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) H1 2024 basic earnings per share rose to 3.68 HK cents from 2.92 HK cents, with 1,500,000,000 ordinary shares issued - Basic earnings per share were **3.68 HK cents** (2023: 2.92 HK cents), calculated based on profit attributable to owners of the Company of **HK$55,197,000** for the period[15](index=15&type=chunk) - The number of ordinary shares issued during the period was **1,500,000,000**, consistent with 2023[15](index=15&type=chunk) - The Group had no ordinary shares with potential dilutive effects issued during the two periods ended June 30, 2024 and 2023[15](index=15&type=chunk) [9. Dividends](index=10&type=section&id=9.%20Dividends) The Board recommended no interim dividend for H1 2024; the 2023 final and special dividends of 2.0 HK cents each were paid on July 11, 2024 - The Board recommended no interim dividend for the six months ended June 30, 2024 (2023: Nil)[16](index=16&type=chunk) - The final dividend of **2.0 HK cents** per ordinary share and a special dividend of **2.0 HK cents** per ordinary share for the year ended December 31, 2023, were paid on July 11, 2024[16](index=16&type=chunk) [10. Property, Plant and Equipment](index=10&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) H1 2024 property, plant and equipment acquisitions totaled HK$39,143 thousand, a decrease from HK$72,870 thousand in the prior year - For the six months ended June 30, 2024, the Group acquired property, plant and equipment at a cost of **HK$39,143 thousand** (2023: HK$72,870 thousand)[17](index=17&type=chunk) [11. Trade Receivables](index=10&type=section&id=11.%20Trade%20Receivables) Net trade receivables decreased to HK$233,556 thousand as of June 30, 2024, with significant concentration risk from the largest and top five customers Trade Receivables | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 243,014 | 307,033 | | Less: Impairment | (9,458) | (9,458) | | **Net amount** | **233,556** | **297,575** | - As of June 30, 2024, **31%** and **61%** of the Group's total trade receivables were from its largest and top five customers, respectively, indicating concentration risk[18](index=18&type=chunk) Trade Receivables Ageing Analysis | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Current to 30 days | 165,527 | 234,871 | | 31 to 60 days | 32,188 | 15,953 | | 61 to 90 days | 5,922 | 12,637 | | Over 90 days | 29,919 | 34,114 | | **Total** | **233,556** | **297,575** | [Trade Payables and Retention Payables](index=11&type=section&id=Trade%20Payables%20and%20Retention%20Payables) Total trade and retention payables decreased to HK$209,378 thousand as of June 30, 2024; trade payables are settled within 30 days, retention payables within one to two years Trade Payables and Retention Payables | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 164,145 | 200,067 | | Retention payables | 45,233 | 42,026 | | **Total** | **209,378** | **242,093** | - Trade payables are normally settled within **30 days**, while retention payables have repayment periods ranging from **one to two years**[20](index=20&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the Group's H1 2024 operating results and financial position, covering key indicator changes, business operations, liquidity, employee policies, connected transactions, and future outlook [Results](index=12&type=section&id=Results) Group turnover for H1 2024 increased by 7.9% to HK$1,102.1 million, with profit rising 26.2% to HK$55.2 million - The Group recorded a turnover of **HK$1,102.1 million** for the six months ended June 30, 2024 (2023: HK$1,021.5 million), representing a **7.9% increase**[21](index=21&type=chunk) - Profit for the period amounted to **HK$55.2 million** (2023: HK$43.7 million), an increase of **26.2%**[21](index=21&type=chunk) [Interim Dividend](index=12&type=section&id=Interim%20Dividend) The Board recommended no interim dividend for the six months ended June 30, 2024 - The Board recommended no interim dividend for the six months ended June 30, 2024 (2023: Nil)[22](index=22&type=chunk) [Business and Operations Review](index=12&type=section&id=Business%20and%20Operations%20Review) The Group operates Foundation and Drilling Divisions; as of June 30, 2024, Foundation had 20 projects (HK$4,145 million contract value), and Drilling had 41 projects (HK$877 million contract value) - The Group engages in foundation construction and ancillary services (Foundation Division) and drilling and site investigation works (Drilling Division) for public and private sector organizations in Hong Kong and overseas[22](index=22&type=chunk) - As of June 30, 2024, the Foundation Division had **20 ongoing projects** with a contract value of approximately **HK$4,145 million**[22](index=22&type=chunk) - As of June 30, 2024, the Drilling Division had **41 ongoing projects** with a contract value of approximately **HK$877 million**[22](index=22&type=chunk) [Revenue](index=12&type=section&id=Revenue) Group revenue grew 7.9% to HK$1,102.1 million, mainly due to a 121.9% surge in Drilling Division revenue, despite a 9.3% decline in Foundation Division revenue - The Group's revenue increased by **7.9%** to **HK$1,102.1 million** for the reporting period, from HK$1,021.5 million in the same period last year[23](index=23&type=chunk) - Revenue from the Drilling Division increased by **121.9%** from **HK$133.5 million** in the previous period to **HK$296.2 million** in the review period, primarily due to satisfactory progress on several site investigation main contractor contracts and sub-contractor contracts for percussion drilling undertaken by Driltech[23](index=23&type=chunk) - Revenue from the Foundation Division decreased by **9.3%** from **HK$888.0 million** in the previous period to **HK$805.8 million** in the reporting period, mainly due to delays in certain private engineering projects caused by unsatisfactory ground conditions[23](index=23&type=chunk) [Gross Profit and Gross Margin](index=12&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Group gross profit rose 17.6% to HK$174.5 million, with gross margin improving from 14.5% to 15.8%, attributed to revenue growth, project management, and cost control - The Group's total gross profit for the reporting period was **HK$174.5 million**, an increase of **17.6%** compared to HK$148.3 million in the prior period[24](index=24&type=chunk) - The Group's gross margin also increased from **14.5%** in the previous period to **15.8%** in the reporting period[24](index=24&type=chunk) - The increase in gross profit was due to increased Group revenue and improved gross margin, attributed to satisfactory progress of construction projects, a professional project management team anticipating and resolving technical issues to save costs, and strict project cost control implementation[24](index=24&type=chunk) [Other Income and Gains](index=13&type=section&id=Other%20Income%20and%20Gains) Other income and gains surged 63.5% to HK$10.7 million, driven by increased bank interest income (HK$5.9 million to HK$9.5 million) and a HK$1.2 million government subsidy - The Group recorded other income and gains of **HK$10.7 million** during the reporting period, an increase of **63.5%** compared to HK$6.5 million in the same period last year[25](index=25&type=chunk) - The increase in other income and gains was mainly due to an increase in interest income earned by the Group from cash deposits placed with licensed banks, from **HK$5.9 million** in the previous period to **HK$9.5 million** in the reporting period[25](index=25&type=chunk) - Driltech received a subsidy of **HK$1.2 million** from the Construction Innovation and Technology Fund of the Hong Kong Government during the reporting period[25](index=25&type=chunk) [Administrative Expenses](index=13&type=section&id=Administrative%20Expenses) Administrative expenses rose 17.4% to HK$119.8 million, mainly due to a HK$6.7 million increase in staff costs for talent and a HK$5.9 million rise in repair and maintenance costs - The Group's administrative expenses for the reporting period were **HK$119.8 million**, an increase of **17.4%** compared to HK$102.1 million in the prior period[26](index=26&type=chunk) - The increase in administrative expenses was mainly due to an increase in staff costs of **HK$6.7 million** during the reporting period for recruiting and retaining competitive talent[26](index=26&type=chunk) - Repair and maintenance costs increased by **HK$5.9 million** during the review period to maintain the Group's machinery fleet and accessories[26](index=26&type=chunk) [Profit for the Period](index=13&type=section&id=Profit%20for%20the%20Period) Group profit for the period rose 26.2% to HK$55.2 million, driven by increased gross profit (HK$26.2 million) and other income (HK$4.2 million), partially offset by higher administrative expenses (HK$17.7 million) - The Group's profit for the reporting period was **HK$55.2 million**, an increase of **26.2%** compared to HK$43.7 million in the prior period[27](index=27&type=chunk) - The increase in profit for the period was mainly due to an increase in gross profit from construction projects of **HK$26.2 million** and an increase in other income and gains of **HK$4.2 million**[27](index=27&type=chunk) - The increase in administrative expenses of **HK$17.7 million** during the review period partially offset the profit contribution[27](index=27&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) This section reviews the Group's liquidity, financial policies, and contingent liabilities, noting increased cash to HK$736.4 million, a robust debt-free financial position, prudent policies, and HK$289.9 million in guarantees for performance bonds [Liquidity and Financial Resources](index=13&type=section&id=Liquidity%20and%20Financial%20Resources) Unsecured cash and bank balances rose to HK$736.4 million as of June 30, 2024, driven by net cash inflows from large contracts, maintaining a robust, debt-free financial position - As of June 30, 2024, the Group's unsecured cash and bank balances were **HK$736.4 million**, compared to HK$566.5 million as of December 31, 2023[28](index=28&type=chunk) - The increase in cash and bank balances was mainly due to net cash inflows from several large foundation and site investigation contracts, after paying capital expenditure of **HK$39.1 million** for the acquisition of plant and machinery[28](index=28&type=chunk) - The Group maintained a **robust financial position** and remained **debt-free** during the review period[28](index=28&type=chunk) [Funding and Financial Policies](index=13&type=section&id=Funding%20and%20Financial%20Policies) The Group maintains prudent funding and financial policies, depositing surplus funds with licensed banks and closely monitoring liquidity to meet financial needs - The Group has consistently adopted prudent funding and financial policies, placing surplus funds as cash deposits with licensed banks[29](index=29&type=chunk) - Management closely monitors the Group's liquidity position to ensure that the liquidity structure of its assets, liabilities, and other commitments is sufficient to meet its funding requirements from time to time[29](index=29&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group's corporate guarantees and counter-indemnities for performance bonds totaled HK$289.9 million, an increase from HK$230.6 million in 2023 - As of June 30, 2024, the Group provided corporate guarantees and counter-indemnities totaling **HK$289.9 million** to certain banks and an insurance company for performance bonds (December 31, 2023: HK$230.6 million)[30](index=30&type=chunk) [Employees and Remuneration Policy](index=14&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group employed 728 staff in Hong Kong, with annual remuneration reviews based on market and performance, offering medical insurance, provident funds, and education subsidies - As of June 30, 2024, the Group employed **728 staff** in Hong Kong and has established a professional team for foundation and drilling engineering[31](index=31&type=chunk) - Employee remuneration packages are reviewed annually and determined with reference to market compensation and individual employee performance[31](index=31&type=chunk) - In addition to basic salaries and discretionary bonuses, the Group also provides other employee benefits to eligible employees, including medical insurance, provident funds, and education subsidies[31](index=31&type=chunk) [Connected Transactions](index=14&type=section&id=Connected%20Transactions) The Group disclosed two connected transactions: a HK$250 million loan to Build King Industrial Limited and a service framework agreement with K. Wah Group, both requiring independent shareholder approval - The Company entered into a loan agreement with Build King Industrial Limited to provide a loan of up to **HK$250 million** at an annual interest rate of **6.0%**, with a loan period of 12 months from the drawdown date, extendable for another 12 months with Company approval[32](index=32&type=chunk) - The Company entered into a framework agreement with K. Wah Group, allowing K. Wah Group members to engage Group members for certain services through a tender process for three years, from October 1, 2024, to September 30, 2027[33](index=33&type=chunk) - Both transactions constitute major and connected transactions under the Listing Rules and are subject to approval by the Company's independent shareholders at an extraordinary general meeting to be convened[32](index=32&type=chunk)[33](index=33&type=chunk) [Prospects and Future Plans](index=15&type=section&id=Prospects%20and%20Future%20Plans) Hong Kong's housing policy and Northern Metropolis offer foundation industry opportunities, despite private market weakness, competition, and rising labor costs; the Group plans strategic investments in talent, technology, service expansion, and ESG for sustainable growth - The Hong Kong Government aims to provide **308,000 public housing units** by 2033-2034, with public housing supply projected to increase slightly by **5,000 units** to approximately **146,800 units** over the next five years[34](index=34&type=chunk) - Construction tender prices are expected to rise by **2%** in 2024, lower than the **4%** increase in 2023, reflecting reduced private sector activity and decreased public project spending[34](index=34&type=chunk) - The private construction market is almost at a standstill, posing significant challenges for the Group, which has focused on public tenders but still faces intense competition and rising labor costs[34](index=34&type=chunk) - The Group will strengthen its competitive advantage through strategic investments in talent development, machinery, and facilities, actively seeking development opportunities in both public and private sectors[35](index=35&type=chunk) - The Group invests in innovative technologies, particularly focusing on Artificial Intelligence (AI) applications and enhancing Information Technology (IT) capabilities to streamline operations, reduce manual work, and improve overall productivity and project efficiency[35](index=35&type=chunk) - Subsidiary Driltech achieved a new milestone by securing an offshore exploration contract and will continue to expand its scope of laboratory testing accreditation; another subsidiary, Wing Fung Engineering Limited, is exploring development opportunities in site formation, civil engineering, road, and drainage works[35](index=35&type=chunk) - The Group has established an Environmental, Social and Governance (ESG) Committee responsible for overseeing carbon emission monitoring, ensuring employee welfare and well-being, and promoting community engagement through community activities[35](index=35&type=chunk) - The Group will continue to seek new warehouses and office buildings, and consistently expand its foundation business in both public and private sectors, maintaining cautious optimism regarding the prospects of Hong Kong's foundation industry[36](index=36&type=chunk) [Other Information](index=17&type=section&id=Other%20Information) This section details the Group's corporate governance, including directors' securities trading compliance, corporate governance code adherence, audit committee functions, listed share transactions, and board composition [Acknowledgements](index=17&type=section&id=Acknowledgements) The Board thanks the Executive Committee, management, staff, partners, and shareholders, reaffirming its goal of consolidating core foundations and driving long-term sustainable growth - The Board extends its sincere gratitude to the Executive Committee, management team, and staff for their tireless efforts and significant contributions[37](index=37&type=chunk) - Sincere appreciation is extended to business partners and shareholders for their crucial support[37](index=37&type=chunk) - Looking ahead, the primary goal is to consolidate core foundations and drive long-term sustainable growth[37](index=37&type=chunk) [Corporate Governance](index=17&type=section&id=Corporate%20Governance) The Company adopted and complied with the standard code for directors' securities transactions (Listing Rules Appendix C3) and the Corporate Governance Code (Appendix C1); the Audit Committee reviewed H1 2024 interim results - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and all Directors confirmed compliance with the Model Code throughout the six months ended June 30, 2024[38](index=38&type=chunk) - The Directors believe that the Company has complied with all relevant code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2024[39](index=39&type=chunk) - The Audit Committee, comprising three independent non-executive Directors, has held regular meetings since its establishment and has reviewed the Company's interim results for the six months ended June 30, 2024[40](index=40&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the six months ended June 30, 2024 - During the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[41](index=41&type=chunk) [Board Composition](index=18&type=section&id=Board%20Composition) As of the announcement date, the Board comprises nine directors: six executive and three independent non-executive directors - As of the announcement date, the Board of Directors comprises **nine directors**[42](index=42&type=chunk) - Including six executive directors: Mr. Chan Yuen Hong (Chairman), Mr. Wong Shing Wai, Mr. Yu Wing Sang, Mr. Lam Ping Lun, Mr. Wai Hon Man, and Mr. Lam Hoi Fan[42](index=42&type=chunk) - And three independent non-executive directors: Mr. Kong Siu Chee, Mr. Pong Tit Fan, and Mr. Tsui Chi Keung[42](index=42&type=chunk)

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year ending December 31, 2023[12]. - User data showed a growth in active users by 20%, totaling 500,000 users as of the end of the fiscal year[12]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[12]. - New product launches are expected to contribute an additional HKD 200 million in revenue in the upcoming year[12]. - The company reported contract revenue from construction contracts amounting to HKD 2,122,397,000 for the year ended December 31, 2023, compared to HKD 1,805,843,000 in 2022, reflecting a growth of approximately 17.5%[196]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[12]. - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase revenue by 5%[12]. - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 8% in the next fiscal year[12]. Shareholder Returns and Governance - A special dividend of HKD 0.50 per share was declared, reflecting the company's strong financial position[13]. - The board of directors has authorized a share buyback program not exceeding 10% of the total issued shares[17]. - The company emphasizes the importance of shareholder representation at the annual general meeting, allowing for proxy voting[21]. - The company confirmed compliance with the standards set out in the listing rules regarding securities trading by all directors for the year ending December 31, 2023[156]. Management and Director Remuneration - Mr. Wei's annual fixed remuneration is HKD 200,000, based on the company's remuneration policy for executive directors[31]. - Mr. Lin's annual fixed remuneration is HKD 200,000, reflecting the company's remuneration policy[34]. - Mr. Wang's annual fixed remuneration is HKD 200,000, with a performance-linked bonus of HKD 2,000,000 for the year ending December 31, 2023[39]. - The remuneration committee held two meetings during the year to review the remuneration of all executive directors and senior management[156]. Financial Reporting and Audit - The consolidated financial statements of Jianye Jianrong Holdings Limited as of December 31, 2023, include the consolidated balance sheet, income statement, statement of comprehensive income, statement of changes in equity, and cash flow statement[52]. - The audit report highlights key audit matters that are significant to the financial statements, indicating that the audit procedures were designed to address the risks of material misstatement[53]. - The independent auditor's report emphasizes the importance of identifying and assessing risks of material misstatement due to fraud or error, which may affect the overall audit opinion[59]. - The auditor concluded on the appropriateness of the going concern basis of accounting, noting that significant uncertainties may impact the group's ability to continue as a going concern[60]. Accounting Policies and Financial Instruments - The company’s accounting policy includes recognizing major inspection costs as capitalized assets if they meet recognition criteria[50]. - The group applies the expected credit loss model for financial instruments, with provisions based on the stage of credit risk[111]. - Financial assets are classified upon initial recognition as measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss, depending on the cash flow characteristics and the business model[125]. - The group recognizes lease liabilities at the present value of lease payments due over the lease term, including fixed payments and variable lease payments based on indices or rates[95]. Risk Management and Compliance - Management has considered forward-looking information to assess the expected credit losses related to customer repayment capabilities[57]. - The group regularly assesses the recoverability of trade receivables and contract assets based on various factors, including credit status and historical repayment records, to ensure accurate financial reporting[197]. - The group’s expected credit loss provisions for trade receivables are adjusted based on historical default rates and forward-looking information, ensuring a proactive approach to credit risk management[199]. Corporate Governance and Development - The company encourages all directors to participate in continuous professional development to update their knowledge and skills[133]. - The board collectively bears responsibility for executing corporate governance duties, including developing and reviewing governance policies[156]. - The company will seek suitable successors for the board through internal resources or possibly through professional human resources firms to maintain diversity[157].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 2,122,397, an increase of 17.5% from HKD 1,805,843 in 2022[2] - Gross profit for the same period was HKD 340,556, representing a gross margin of 16.0%, up from HKD 289,444 in 2022[2] - Net profit for the year was HKD 120,466, a 25.4% increase compared to HKD 96,024 in 2022[2][3] - Basic and diluted earnings per share increased to HKD 8.03 from HKD 6.40, reflecting a growth of 25.4%[2] - Total comprehensive income for the year was HKD 126,546, compared to HKD 102,830 in 2022, marking a 23.1% increase[4] - The company reported a pre-tax profit of HKD 142,540 for 2023, up from HKD 116,197 in 2022, reflecting a growth of 22.7%[25] - The company's revenue for the fiscal year 2023 was HKD 2,122,400,000, representing a 17.5% increase from HKD 1,805,800,000 in 2022[37] - The gross profit for the fiscal year 2023 was HKD 340,600,000, an increase of 17.7% from HKD 289,400,000 in 2022, with a stable gross profit margin of 16.0%[38] - The net profit for the fiscal year 2023 was HKD 120,500,000, reflecting a 25.5% increase from HKD 96,000,000 in 2022[41] Assets and Liabilities - Non-current assets totaled HKD 480,063, up from HKD 461,743 in 2022, indicating a growth of 3.0%[6] - Current assets increased to HKD 1,276,689 from HKD 1,063,918, representing a growth of 20.0%[6] - Total liabilities increased to HKD 1,026,546 from HKD 874,503, reflecting a rise of 17.4%[6] - The company's equity increased to HKD 730,206 from HKD 653,160, a growth of 11.8%[6] - The company’s total assets reached HKD 1,756,752, a slight increase from HKD 1,525,661 in the previous year[19] - The total liabilities increased to HKD 1,026,546 from HKD 872,501, reflecting a rise of 17.7%[19] Cash Flow and Investments - Capital expenditures for the year were HKD 104,979, up from HKD 59,560 in 2022, indicating a 76.2% increase in investment in property, plant, and equipment[23] - The company maintained a cash and bank balance of HKD 566,500,000 as of December 31, 2023, compared to HKD 457,800,000 in 2022, reflecting strong cash flow from operations[42] - Interest income rose to HKD 16,208 in 2023, compared to HKD 2,633 in 2022, marking a significant increase[24] - Trade receivables increased to HKD 297,575,000 in 2023 from HKD 274,974,000 in 2022, with significant concentration risks from major customers[31] - Trade payables rose to HKD 200,067,000 in 2023 from HKD 131,001,000 in 2022, indicating increased operational activity[34] Dividends - The company proposed a final dividend of HKD 0.02 per share and a special dividend of HKD 0.02 per share, totaling HKD 60,000,000, compared to HKD 49,500,000 in 2022[29] - The board proposed a final dividend of HKD 0.02 per share and a special dividend of HKD 0.02 per share, pending shareholder approval at the upcoming annual general meeting[52] Operational Insights - The company plans to continue expanding its operations in both public and private sectors in Hong Kong and overseas[7] - The construction services segment generated HKD 1,760,987 in revenue, while the drilling and exploration segment contributed HKD 361,410, together totaling HKD 2,122,397[22] - Major customer A's revenue increased significantly to HKD 1,033,314 in 2023 from HKD 468,268 in 2022, representing a growth of 120.5%[20] - The foundation and drilling segments had ongoing projects with contract amounts of approximately HKD 3,857,000,000 and HKD 744,000,000, respectively[36] - The group anticipates increased demand for its services due to ongoing government investments in infrastructure and public housing supply, particularly in the Northern Metropolis area[47] Human Resources and Development - As of December 31, 2023, the group employed 674 staff in Hong Kong, with annual salary reviews based on market rates and individual performance[46] - The group has invested significantly in talent development through the establishment of the "Construction Academy" to train the next generation of professionals in the foundation industry[47] Governance and Compliance - The company has complied with all relevant provisions of the corporate governance code, except for C.5.1, which requires the board to meet at least four times a year[57] - The audit committee consists of three independent non-executive directors, who have reviewed the accounting principles and policies adopted by the company[58] - The company's auditor, Ernst & Young, has agreed to the figures presented in the preliminary financial results for the year ending December 31, 2023, but does not provide any assurance on the preliminary results[59] - There were no purchases, sales, or redemptions of the company's listed shares by the company or any of its subsidiaries during the year[61] - The board of directors consists of nine members, including six executive directors and three independent non-executive directors[62] Strategic Initiatives - The group is committed to enhancing innovative technology and office automation to improve productivity and efficiency in the new fiscal year[50] - An Environmental, Social, and Governance (ESG) committee has been established to oversee various initiatives, including carbon emissions reporting and employee welfare[50] - The group remains cautiously optimistic about the future of the foundation industry in Hong Kong, actively seeking new opportunities and diversification to balance risks and returns[50] - The group’s subsidiary, Drilling Company, continues to contribute significantly to performance, successfully securing multiple large-scale site investigation contracts despite a slowdown in the market[49] - The group has obtained a site leveling license from the Development Bureau in 2023, which is expected to enhance opportunities for securing large project tenders[49]

Financial Performance - The group's revenue increased by 19.9% from HKD 851.9 million to HKD 1,021.5 million for the six months ended June 30, 2023 [41]. - Profit and total comprehensive income rose by 23.1% to HKD 43.7 million, compared to HKD 35.5 million in the previous period [41]. - The company reported a pre-tax profit of HKD 52,292,000 for the six months ended June 30, 2023, compared to HKD 43,982,000 in the same period of 2022, representing an increase of approximately 19.4% [56]. - Revenue for the six months ended June 30, 2023, was HKD 1,021,491,000, representing a 20% increase from HKD 851,928,000 in the same period of 2022 [80]. - Gross profit increased to HKD 148,312,000, up 16% from HKD 127,423,000 year-over-year [80]. - Net profit for the period was HKD 43,730,000, reflecting a 23% increase from HKD 35,521,000 in the prior year [80]. - Basic and diluted earnings per share increased to HKD 2.92, up from HKD 2.37 year-over-year [80]. Assets and Liabilities - Current assets totaled HKD 1,092.3 million, compared to HKD 1,063.9 million at the end of 2022, reflecting an increase in cash and cash equivalents [52]. - Total liabilities increased to HKD 895.9 million from HKD 837.1 million, with current liabilities primarily driven by trade payables and accrued expenses [52]. - The total assets of the group amounted to HKD 1,525,661,000, while total liabilities were HKD 872,501,000, indicating a healthy balance sheet [72]. - The group's net asset value was HKD 647.4 million as of June 30, 2023, down from HKD 653.2 million at the end of 2022 [52]. - The group’s trade receivables as of June 30, 2023, were HKD 199,092,000, down from HKD 284,432,000 as of December 31, 2022 [108]. Operational Highlights - The company has observed a stable completion rate of construction projects and a large reserve of public and private sector projects, supported by ongoing government investments [22]. - The group is actively exploring new growth opportunities in civil engineering, road, and drainage works to diversify revenue sources [41]. - The foundation sector's revenue growth was supported by significant progress in several large public projects during the reporting period [48]. - The company has a workforce of 618 employees, contributing to its foundation and drilling engineering expertise [79]. Market and Industry Outlook - The construction industry is expected to play a key role in Hong Kong's economic recovery, bolstered by government commitments to long-term investments in housing and infrastructure [22]. - Despite positive developments, the construction industry faces challenges such as rising inflation, interest rates, and labor shortages, which may impact growth [23]. - Tender prices in Hong Kong have been gradually increasing by approximately 3% to 5% annually, with a projected increase of 4% in 2023 assuming stable market conditions [44]. - The construction activities are expected to grow, particularly with infrastructure projects related to the Northern Metropolis Development Strategy [44]. Governance and Compliance - The group has complied with all relevant corporate governance codes as of June 30, 2023, ensuring adherence to regulatory standards [7]. - The company has not engaged in any purchase, sale, or redemption of its listed shares during the reporting period [9]. Employee Development - The company is focused on employee training and development to maintain its leading position in the construction sector [16]. - The group established the "Kin Wing Academy" to enhance employee skills and leadership capabilities, aiming to improve productivity and operational efficiency [41]. - Employee benefits expenses, including directors' remuneration, rose to HKD 235,341,000 in 2023, up from HKD 177,215,000 in 2022, marking a 32.8% increase [128]. Financial Management - The company maintained strict cost control measures to ensure profitability despite rising administrative expenses [48]. - Administrative expenses increased by 23.5% to HKD 102.1 million, mainly due to higher employee costs [48]. - The financing costs decreased to HKD 492,000 from HKD 1,097,000, representing a reduction of approximately 55.2% [56]. - The company maintained a debt-free status throughout the reporting period, reflecting strong financial stability [78].

Financial Performance - The company reported a comprehensive income statement for the year ending December 31, 2022, with total revenue of HKD 1.2 billion, representing a 15% increase compared to the previous year[11]. - The group's revenue decreased by 11.6% to HKD 1,806,000,000 for the year ended December 31, 2022, compared to HKD 2,042,000,000 in 2021[21]. - Profit attributable to equity holders increased by 44.0% to HKD 96,000,000, up from HKD 67,000,000 in the previous year[21]. - The group's gross profit for the reporting year was HKD 289,400,000, an increase of 12.6% from HKD 257,100,000 in the previous year, with a gross profit margin rising from 12.6% to 16.0%[107]. - The group's net profit for the reporting year was HKD 96,000,000, an increase of 44.0% or HKD 29,300,000 from HKD 66,700,000 in the previous year[110]. - Total revenue for the year ended December 31, 2022, was HKD 1,805,843,000, a decrease of 11.6% from HKD 2,042,378,000 in 2021[122]. - Profit for the year increased to HKD 96,024,000, up 43.9% from HKD 66,693,000 in the previous year[122]. Dividends and Shareholder Value - The company plans to distribute a final dividend and a special dividend for the year ending December 31, 2022, reflecting a commitment to returning value to shareholders[11]. - Proposed final dividend of HKD 0.02 per share and special dividend of HKD 0.013 per share, subject to shareholder approval[22]. - The company reported a final dividend of HKD 0.02 per share and a special dividend of HKD 0.013 per share for the year ending December 31, 2022, pending shareholder approval[102]. - The company maintains a dividend policy that considers sufficient cash reserves for operational needs and future business growth, with no guarantee of specific dividend payments[88]. Corporate Governance - The board of directors has proposed to reappoint the auditor and authorize the board to determine their remuneration, ensuring continued compliance with financial regulations[11]. - The company is committed to maintaining high standards of corporate governance and transparency in its operations[4]. - The board consists of five executive directors and three independent non-executive directors, with regular meetings held to oversee business operations and stakeholder value[56]. - The company has adhered to the corporate governance code as per the listing rules, except for code provision C.5.1, which is discussed in detail in the report[52]. - The company has established a clear distinction between the roles of the chairman and the CEO to ensure accountability[60]. - The company has implemented a balanced approach in formulating and reviewing corporate governance policies and practices[52]. - The board has three committees: audit committee, remuneration committee, and nomination committee, each executing specific roles to assist in monitoring senior management functions[54]. Market and Growth Strategy - The company is focused on expanding its market presence and exploring potential mergers and acquisitions to drive growth and enhance competitive positioning[11]. - The company aims to enhance shareholder value through strategic initiatives and effective capital management practices[11]. - The company aims to strengthen its competitive advantage through continuous investment in machinery, facilities, and talent development[27]. - The company expresses cautious optimism about the medium to long-term construction market due to ongoing government investments in infrastructure[26]. - The company anticipates healthy growth in foundation piling contract tenders in both public and private sectors[27]. Financial Position and Assets - The company maintains a strong financial position with no debt, despite challenges such as fluctuating material costs and skilled labor shortages[21]. - The group maintained a strong financial position with unencumbered cash and bank balances of HKD 457,800,000, up from HKD 186,000,000 in the previous year[111]. - Total assets as of December 31, 2022, amounted to HKD 1,525,661,000, an increase of 25.7% from HKD 1,214,049,000 in 2021[122]. - The company has a distributable reserve of HKD 89,171,000 as of December 31, 2022, including a proposed final and special dividend of HKD 49,500,000[129]. Risk Management and Compliance - The company faces various risks and uncertainties, which are discussed in the annual report, including potential future developments[100]. - The board of directors is responsible for maintaining and reviewing the effectiveness of the internal control system, which aims to minimize operational risks and ensure compliance with applicable laws and regulations[85]. - The company has appointed internal audit personnel to regularly review the effectiveness of risk management and internal control systems[85]. - The independent auditor's report emphasizes the importance of understanding internal controls related to the audit[168]. Community and Social Responsibility - The company is actively involved in community affairs, with board members participating in various committees and organizations, enhancing its corporate social responsibility profile[36][39]. - The group is committed to environmental policies aimed at conserving natural resources and has implemented measures to save energy and water[147]. Management and Leadership - The company has a strong management team with members holding significant qualifications and experience in finance, law, and engineering, contributing to its operational oversight and strategic direction[40][41][43][44][45][46]. - Lin Binglin has been appointed as an executive director since September 2, 2016, and has extensive experience in finance and management, including roles at Hang Seng Bank and the University of Hong Kong[36]. - Su Hsiang-Kuang, appointed as an executive director on August 11, 2015, has over 30 years of experience in project management and supervision in foundation and construction engineering[39].

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佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CHINNEY KIN WING HOLDINGS LIMITED 建 業 建 榮 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：1556） 截至二零二二年十二月三十一日止年度 業績公佈 建業建榮控股有限公司（「本公司」）之董事會（「董事會」）欣然宣佈本公司及其附屬 公司（「本集團」）截至二零二二年十二月三十一日止年度之綜合損益表及綜合全面 收益表及本集團於二零二二年十二月三十一日之綜合財務狀況表，連同二零二一年 之比較數字如下： 綜合損益表 截至十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 4 1,805,843 2,042,378 建造成本 (1,516,399) (1,785,252) 毛利 289,444 257,126 其他收入及收益 4 17,864 246 行政支出 (179,759) (172,399) 應收貿易賬款之減值 (9,458 ...