Company Overview - Sundart Holdings Limited is a leading integrated interior decoration contractor in Hong Kong, Macau, China, and Singapore, specializing in projects for hotels, commercial buildings, and residential properties[5]. - The company has expanded its interior decoration business to Macau, China, and Singapore since 2005, 2017, and 2021 respectively[5]. Financial Performance - The group's revenue for the year was HKD 4,678.6 million, a decrease of 17.8% from HKD 5,689.9 million in the previous year[19]. - The net profit for the year was HKD 287.5 million, down 22.5% from HKD 371.3 million in the previous year, with basic and diluted earnings per share at HKD 0.1332 compared to HKD 0.1720 previously[19]. - The group completed 24 individual contracts for interior decoration projects, each valued at no less than HKD 50 million, along with 3 renovation and construction projects[19]. - In 2022, the group's revenue from interior decoration business decreased by HKD 968 million or 17.4% to HKD 4,605.4 million, compared to HKD 5,573.4 million in the previous year[27]. - The gross profit from the interior decoration business fell by HKD 155.4 million or 19.0% to HKD 664.6 million, with a slight decrease in gross profit margin from 14.7% to 14.4%[28]. - The group anticipates that the easing of travel restrictions in China will accelerate economic recovery and stabilize the real estate market[21]. Strategic Initiatives - The annual report indicates a focus on enhancing operational efficiency and expanding market presence through strategic initiatives[7]. - Sundart Holdings aims to leverage new technologies and product innovations to improve service offerings and customer satisfaction[7]. - The company plans to explore potential mergers and acquisitions to strengthen its market position and diversify its service portfolio[7]. - The group plans to strengthen relationships with existing clients and actively explore cooperation opportunities with new quality clients and overseas markets[22]. - The group will adjust its business layout in response to national policies and market developments in China[21]. Corporate Governance - The company has established a robust internal control committee to ensure financial integrity and compliance[61]. - The management team includes independent directors with extensive experience in finance, law, and taxation, enhancing governance[63][64]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[75]. - The company has adopted a standard code for securities trading by directors, ensuring compliance throughout the year[74]. - The company has established a risk management framework that includes a risk management team and regular assessments of risks impacting business objectives[113]. Employee and Training Initiatives - The total employee cost for the year increased by HKD 25.1 million or 5.1% to HKD 513.5 million, attributed to a 2.7% rise in average employee numbers[51]. - Employee training programs are in place, including onboarding and on-the-job training, to enhance professional skills[190]. - The average number of employees in 2022 was 1,090 in Beijing and Shanghai, an increase from 1,010 in 2021, while the average in Hong Kong and Macau decreased to 322 from 340[183]. - The company has implemented a stock option plan since December 1, 2015, to reward employees and enhance loyalty[181]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers significant issues identified through materiality assessments, including management policies and compliance status[132]. - The company achieved all its ESG goals during the year, as reviewed and approved by management[137]. - The company emphasizes responsible supply chain management and community investment as part of its social responsibility initiatives[146]. - The board has established a risk management framework that incorporates environmental, social, and governance (ESG) factors, including energy consumption and pollution[136]. Stakeholder Communication - The company emphasizes shareholder communication through various channels, including interim and annual reports, and encourages feedback from shareholders[116]. - The company maintains effective communication with stakeholders through various channels, including meetings, surveys, and public forums[140]. - The company emphasizes the importance of stakeholder communication in identifying significant ESG issues affecting long-term sustainability[133].

Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 4,678.6 million, a decrease of 17.8% compared to HKD 5,689.9 million in 2021[2] - Gross profit for the same period was HKD 663.7 million, down 17.9% from HKD 808.8 million in the previous year, maintaining a gross margin of 14.2%[2] - Profit attributable to owners of the company decreased by 22.6% to HKD 287.5 million from HKD 371.3 million in 2021[2] - Basic and diluted earnings per share were HKD 13.32, a decline of 22.6% compared to HKD 17.20 in the prior year[2] - The company reported a pre-tax profit of HKD 336.4 million, down from HKD 432.8 million in the previous year[3] - Other comprehensive income for the year included a loss of HKD 116.2 million, compared to a gain of HKD 31.9 million in 2021[17] - The group recorded a gross loss of HKD 1.0 million with a gross loss margin of 15.9%, compared to a gross profit of HKD 3.5 million and a gross profit margin of 15.6% in the previous year[103] - The group's total revenue decreased by HKD 1,011.3 million or 17.8% to HKD 4,678.6 million, down from HKD 5,689.9 million in the previous year[113] - The gross profit decreased by HKD 145.1 million or 17.9% to HKD 663.7 million, maintaining a stable gross profit margin of 14.2%[113] - The group's net profit for the year decreased by HKD 83.8 million or 22.6% to HKD 287.5 million, compared to HKD 371.3 million in the previous year[114] Revenue Breakdown - Revenue from interior decoration engineering in Hong Kong was HKD 1,734,484, while revenue from construction engineering was HKD 94,084, totaling HKD 1,834,531[29] - Revenue from interior decoration engineering contracts was HKD 4,605,440 in 2022, down from HKD 5,573,435 in 2021, indicating a decrease of about 17.4%[43] - Revenue from renovation and construction engineering contracts was HKD 66,863 in 2022, compared to HKD 94,084 in 2021, showing a decline of approximately 29.0%[43] - Revenue from the manufacturing, procurement, and distribution of interior decoration materials was HKD 22,429, contributing to the total revenue[29] - The group's revenue from the manufacturing, procurement, and distribution of interior decoration materials decreased by HKD 16.1 million or 71.9% to HKD 6.3 million, compared to HKD 22.4 million in the previous year[102] Assets and Liabilities - Total assets as of December 31, 2022, amounted to HKD 6,128.4 million, slightly down from HKD 6,322.2 million in 2021[5] - Current liabilities were HKD 3,433.5 million, compared to HKD 3,801.7 million in the previous year, indicating a reduction in short-term obligations[5] - The net current asset value increased to HKD 2,694.8 million from HKD 2,520.6 million in 2021[5] - The company’s non-current liabilities increased to HKD 3,259,266 in 2022 from HKD 3,231,290 in 2021, reflecting a rise of approximately 0.9%[19] - The company’s equity attributable to owners increased to HKD 3,247,628 in 2022, compared to HKD 3,227,338 in 2021, marking a growth of about 0.6%[19] - The company’s total liabilities related to notes payable were HKD 650.79 million in 2022, down from HKD 839.86 million in 2021, indicating a decrease of about 22.5%[88] Dividends and Shareholder Returns - The board recommended a final dividend of HKD 0.06 per share[2] - The company plans to distribute a final dividend of HKD 0.06 per share for the year, totaling HKD 129,493,000, down from HKD 151,075,000 in the previous year[72] - The group proposed a final dividend of HKD 0.06 per share, representing approximately 45% of the distributable profits for the year[115] Market Outlook and Strategy - The company has plans for market expansion in Macau and China, focusing on interior decoration engineering services[33] - The company is exploring new strategies for product development and technological advancements in the interior decoration sector[33] - The company anticipates future growth through market expansion and potential new strategies, although specific details were not disclosed in the call[36] - The company plans to adapt resources in line with national policies and market trends while expanding collaborations with renowned domestic and international real estate developers[137] - The company will actively seek opportunities in large-scale and high-end interior decoration projects in response to strong housing demand in Hong Kong[134] - The company intends to enhance management and operational efficiency to secure more quality clients and new contracts, aiming for higher profit growth[138] Employee and Operational Costs - Employee costs increased to HKD 513,518,000 in 2022 from HKD 488,443,000 in 2021, an increase of 5.1%[70] - The total employee cost for the year increased by HKD 25.1 million or 5.1% to HKD 513.5 million, attributed to a 2.7% rise in average employee numbers[133] Economic Environment - The local GDP of Hong Kong contracted by 3.5% year-on-year in 2022, influenced by ongoing global economic challenges[90] - The total nominal value of construction projects conducted by major contractors in Hong Kong in 2022 was HKD 247.1 billion, representing a year-on-year growth of 5.7%[91] - The total nominal value of construction projects on private land in Hong Kong was HKD 66.7 billion, with a year-on-year increase of 7.2%[91] - The total number of visitors to Macau in 2022 decreased by 26% to 5.7 million, impacting the hotel and gaming sectors[92] - The gross gaming revenue in Macau for 2022 was MOP 42.2 billion, down 51.4% year-on-year[92] Compliance and Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with accounting principles and policies[151] - The financial statements have been reviewed and confirmed to be consistent with the audited consolidated financial statements[152] - The annual performance report will be published on the Hong Kong Stock Exchange and the company's website at an appropriate time[153] - The group has not implemented any foreign currency or interest rate hedging policies as of December 31, 2022, and will monitor exchange and interest rate fluctuations closely[129]

Financial Performance - For the six months ended June 30, 2022, the company's revenue from interior decoration business decreased by HKD 403.2 million or 16.7% to HKD 2,006.3 million, compared to HKD 2,409.5 million for the same period in 2021[25]. - The group's revenue decreased by HKD 418.7 million or 17.0% to HKD 2,039.6 million compared to the previous period[30]. - Gross profit fell by HKD 38.3 million or 12.3% to HKD 272.4 million, with a slight increase in gross margin to 13.4% from 12.6%[30]. - The interior decoration business generated a gross profit of HKD 271.9 million, down HKD 52.3 million or 16.1% year-on-year, while the gross margin slightly increased to 13.6%[26]. - The net profit for the period decreased by HKD 59.5 million or 38.2% to HKD 96.1 million compared to the previous period[32]. - Basic and diluted earnings per share were HKD 0.0445, down HKD 0.0276 or 38.3% year-on-year[33]. - Revenue for the six months ended June 30, 2022, was HKD 2,039,646,000, a decrease of 17.0% compared to HKD 2,458,320,000 for the same period in 2021[84]. - Gross profit for the same period was HKD 272,369,000, down 12.3% from HKD 310,655,000 in 2021[84]. - The net profit attributable to the company's owners for the six months ended June 30, 2022, was HKD 96,052,000, a decrease of 38.3% from HKD 155,604,000 in 2021[84]. Economic Environment - The Hong Kong economy contracted by 4.0% year-on-year in the first quarter of 2022, reversing the growth trend of the previous four quarters[20]. - Macau's GDP fell by 8.9% year-on-year in the first quarter of 2022, reflecting weak overall demand due to the ongoing impact of the COVID-19 pandemic[21]. - The average occupancy rate of hotel rooms in Macau decreased by 4.1% year-on-year to 40.8% in the first quarter of 2022[21]. - The construction value of major contractors in Hong Kong decreased by 1.1% year-on-year to HKD 55.9 billion in the first quarter of 2022[20]. - The Chinese government has implemented 33 measures to stabilize the economy, which is expected to lead to a recovery in the second half of 2022[53]. Project and Contract Information - The total contract value of ongoing and signed but not yet started projects as of June 30, 2022, amounted to HKD 9,728.8 million, with remaining work value of HKD 6,037.8 million[25]. - The company completed a total of six interior decoration projects during the period, with a total contract value of HKD 599.0 million, of which HKD 67.3 million was recognized as revenue[25]. - The company holds 65 projects on hand as of June 30, 2022, including 25 in Hong Kong, 2 in Macau, 37 in China, and 1 in Singapore, each with a contract value of no less than HKD 50.0 million[25]. - External revenue from interior decoration projects in Macau reached HKD 461,003,000, while revenue from projects in China was HKD 980,254,000[125]. - The total segment revenue for the six months ended June 30, 2022, was HKD 2,143,262,000 after inter-segment eliminations[125]. Financial Position and Assets - As of June 30, 2022, the group's net current assets were HKD 2,450.3 million, a decrease of HKD 70.3 million from HKD 2,520.6 million on December 31, 2021[39]. - The group's total debt to equity ratio was 1.4% as of June 30, 2022, down from 2.6% on December 31, 2021, primarily due to a reduction in bank borrowings[41]. - The group's bank borrowings decreased to HKD 44.4 million as of June 30, 2022, from HKD 84.5 million on December 31, 2021[39]. - The company's total assets as of June 30, 2022, were HKD 5,445,490,000, compared to HKD 6,322,246,000 as of December 31, 2021, indicating a decrease of 13.8%[87]. - The company's equity attributable to owners was HKD 3,110,927,000 as of June 30, 2022, down from HKD 3,227,338,000 at the end of 2021, a decline of 3.6%[87]. Cash Flow and Dividends - The company paid dividends totaling HKD 151,075,000 during the period, down from HKD 172,657,000 in the previous year, indicating a strategic adjustment in cash distribution[93]. - The company's cash and cash equivalents decreased by HKD 499,024,000 during the six months ended June 30, 2022, compared to a decrease of HKD 631,778,000 in the same period of 2021, showing a reduction in cash outflow[93]. - Net cash used in operating activities was HKD (352,619,000), an improvement from HKD (417,932,000) in the prior year, reflecting better operational efficiency[93]. - The company does not recommend the payment of an interim dividend for the period[56]. Employee and Operational Costs - The total employee costs increased by HKD 29.7 million or 14.9% to HKD 229.7 million for the period, attributed to a 13.8% rise in average employee numbers[49]. - The total employee costs, including directors' remuneration, increased to HKD 229,686,000 for the six months ended June 30, 2022, compared to HKD 200,037,000 in the same period of 2021, reflecting a rise of approximately 14.8%[157]. Risk Management and Compliance - The group will continue to enhance its collection measures and adopt a prudent credit policy to mitigate credit risk, despite facing delays in project settlements from property developers[46]. - The group has no significant contingent liabilities as of June 30, 2022, indicating a stable risk profile[43]. - The internal control committee reviewed the group's compliance with sanctions laws and found that all guidelines and procedures were effectively followed during the period[75]. Shareholder Information - As of June 30, 2022, the company has issued 2,158,210,000 shares[65]. - Liu Choi Wong holds a 59.38% stake in the company through controlled entities[58]. - The largest shareholder, Reach Glory, also holds a 59.38% stake in the company[64]. - The company has not granted any share options or exercised any during the reporting period[71].

Company Overview - Sundart Holdings Limited is a leading integrated interior decoration contractor in Hong Kong, Macau, and China, specializing in residential, commercial, and hotel projects[2]. - The company expanded its interior decoration business to Macau in 2005 and to China in 2017, enhancing its market presence[2]. - In 2010, Sundart acquired a registered general contractor, enhancing its capabilities in construction and interior decoration services[2]. - The company manufactures interior decoration wood products in Dongguan, with most products used in its projects[2]. Financial Performance - Sundart's financial performance and user data for 2021 are detailed in the annual report, highlighting significant project completions and revenue growth[10]. - The group's revenue for the year was HKD 5,689.9 million, a decrease of 4.0% from HKD 5,929.1 million in the previous year[29]. - The net profit for the year was HKD 371.3 million, down from HKD 406.5 million in the previous year, representing a decline of 8.7%[29]. - Basic and diluted earnings per share were HKD 0.1720, compared to HKD 0.1883 in the previous year, reflecting a decrease of 8.4%[29]. - The group completed 38 individual contracts for interior decoration projects, each valued at no less than HKD 50 million, along with 2 renovation and construction projects[29]. - The group's revenue from renovation and construction business decreased by HKD 174.2 million or 64.9% to HKD 94.1 million, compared to HKD 268.3 million in the previous year[47]. - The gross loss from renovation and construction business increased by HKD 12.7 million or 604.8% to HKD 14.8 million, with a gross loss margin rising from 0.8% to 15.7%[47]. - The group's total revenue decreased by HKD 239.2 million or 4.0% to HKD 5,689.9 million, down from HKD 5,929.1 million in the previous year[52]. - The gross profit decreased by HKD 105.8 million or 11.6% to HKD 808.8 million, with the gross profit margin declining to 14.2% from 15.4%[52]. Market Outlook - The company aims to continue expanding its market presence and capabilities through strategic acquisitions and new project developments[2]. - Future outlook includes a focus on new product development and technology advancements in the interior decoration sector[2]. - The ongoing COVID-19 pandemic remains the largest uncertainty for the business operations in Hong Kong[30]. - The group aims to leverage its strong brand reputation and project management expertise to navigate current economic challenges[29]. - The development strategy for the Northern Metropolis is expected to enhance connectivity between Hong Kong and the Greater Bay Area, providing opportunities for the construction and interior decoration industry[30]. - The group will continue to monitor and manage risks to minimize any adverse impacts on business operations[30]. - The group aims to strengthen relationships with existing clients and actively expand new cooperation opportunities to drive future growth[34]. - The company anticipates continued economic growth in Hong Kong in 2022, contingent on the control of the local pandemic situation and external economic conditions[77]. - The Chinese government emphasizes a stable economic tone for 2022, with a projected GDP growth of 5.1% according to the World Bank[79]. Corporate Governance - The company continues to integrate effective corporate governance elements into its management structure and internal procedures[101]. - The company aims to uphold rigorous ethical and integrity standards across all business aspects, ensuring compliance with applicable laws and regulations[101]. - The company has established policies and procedures that align with the principles and code provisions of corporate governance[102]. - During the year, the company complied with the code provisions, except for certain deviations due to travel restrictions related to the COVID-19 pandemic[103]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2021[104]. - The board held a total of 17 meetings during the year, with four being regular meetings[110]. - The company has adopted a standard code of conduct for securities trading, which all directors confirmed compliance with throughout the year[104]. - The company has three independent non-executive directors, meeting the requirements of the listing rules[114]. - The chairman and the CEO roles are separated, with Mr. Liu serving as chairman and Mr. Ng as CEO, in compliance with governance codes[114]. Risk Management and Compliance - The company has implemented a risk management system to identify, assess, and respond to risks affecting business objectives[155]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems[156]. - The company is committed to ensuring that all disclosures are clear and fair, presenting both positive and negative facts equally[160]. - The company has established a reporting procedure for internal personnel and business partners to report suspicious activities, ensuring confidentiality of the whistleblower's identity and information[200]. - Employees are prohibited from bribing any individuals or companies to obtain or retain business or gain confidential information[200]. Environmental, Social, and Governance (ESG) - The company is committed to corporate social responsibility while focusing on business development[179]. - The environmental, social, and governance report covers significant issues identified through materiality assessments conducted by the management[180]. - The company established a risk management framework to monitor risks related to environmental, social, and governance (ESG) factors, including energy consumption and environmental pollution[188]. - The board is responsible for setting the governance strategy and continuously reviewing the company's ESG performance[188]. - A total of 22 significant ESG issues were identified, with compliance and pollution emissions being among the top concerns[196]. - The company emphasizes the importance of employee welfare, equal opportunities, and occupational health and safety in its ESG strategy[196]. - The board approved the ESG report after management review, ensuring accountability and transparency in ESG matters[186].

Financial Performance - The group's overall revenue increased by 0.3% to HKD 2,458.3 million, while gross profit decreased by 8.7% to HKD 310.7 million, resulting in a gross profit margin decline to 12.6%[46]. - The company reported a profit of HKD 155,604,000 for the six months ended June 30, 2021, compared to HKD 111,310,000 for the same period in 2020, representing an increase of approximately 39.7%[154]. - Basic earnings per share rose to HKD 7.21, an increase of 39.7% compared to the previous period[49]. - The total comprehensive income for the period attributable to owners was HKD 165,574,000, compared to HKD 98,059,000 in 2020, marking an increase of about 68.7%[105]. - The company reported a pre-tax profit of HKD 189,740,000, up from HKD 147,686,000 in the previous year, which is an increase of approximately 28.5%[105]. Revenue Breakdown - For the six months ended June 30, 2021, the group generated approximately 98.0% of its revenue from interior decoration engineering services[38]. - Revenue from interior decoration engineering contracts was HKD 2,409,531,000, up from HKD 2,327,706,000 in the previous year, indicating an increase of about 3.5%[121]. - Revenue from renovation and construction engineering contracts decreased significantly to HKD 35,962,000 from HKD 121,193,000, reflecting a decline of approximately 70.3%[121]. - The manufacturing, procurement, and distribution of interior decoration materials generated revenue of HKD 12,827,000, compared to HKD 3,098,000 in the prior year, marking an increase of about 314.5%[121]. - The Hong Kong market contributed HKD 920,211,000 to the total revenue, while the Macau and China markets contributed HKD 298,019,000 and HKD 1,240,088,000, respectively[122]. Market Conditions - The Hong Kong GDP grew by 8.0% year-on-year in Q1 2021, ending six consecutive quarters of contraction[35]. - The Macau tourism sector saw a 46.0% decline in visitor numbers in Q1 2021, impacting the local economy[36]. - The group anticipates a recovery in the tourism and hotel sectors due to the easing of COVID-19 restrictions and increased vaccination rates in Hong Kong[66]. - The Macau government has launched several initiatives to promote the recovery of the retail and tourism sectors, including a vaccination program and consumption incentive plans[69]. - The Chinese government aims to establish a strong domestic market with a robust consumer base, targeting at least 70% vaccination coverage by the end of 2021 to aid economic recovery[69]. Operational Strategy - The group is leveraging its strong brand reputation to adapt its operational strategies in response to macroeconomic changes[38]. - The group has secured several large-scale interior decoration projects, which are expected to contribute to stable growth in the coming years[38]. - The company plans to closely monitor market trends to capitalize on opportunities in residential properties, hotels, and shopping centers for interior decoration projects[66]. - The company aims to enhance its product offerings and market presence through strategic investments in new technologies and acquisitions[138]. - The company plans to expand its operations in the Chinese market, where segment assets increased to HKD 2,508,896 thousand from HKD 2,050,112 thousand[141]. Financial Position - As of June 30, 2021, the group had 65 ongoing projects with a total contract value of HKD 7,868.8 million[40]. - As of June 30, 2021, the group's current assets were HKD 5,281.9 million, while current liabilities were HKD 2,999.8 million, resulting in a current ratio of 1.8, up from 1.7 on December 31, 2020[58]. - The total debt-to-equity ratio as of June 30, 2021, was 4.2%, a decrease from 5.5% on December 31, 2020, primarily due to a reduction in bank borrowings[58]. - The company’s bank borrowings decreased from HKD 164,747 million to HKD 124,642 million as of June 30, 2021[108]. - The company reported a decrease in total liabilities to HKD 2,800,559 thousand from HKD 3,031,673 thousand, indicating improved financial health[141]. Shareholder Information - As of June 30, 2021, Mr. Liu holds a significant interest of 59.38% in the company through controlled entities, amounting to 1,281,516,117 shares[74]. - Major shareholders include Reach Glory with a 59.38% stake and Caiyun International Investment Co., Ltd. with a 16.36% stake[78]. - No interim dividend has been recommended by the board for the period[72]. - The company did not declare an interim dividend for the six months ended June 30, 2021, compared to a dividend of HKD 172,657,000 declared for the same period in 2020[153]. Asset Management - The total amount of trade and other receivables was HKD 2,461,867,000 as of June 30, 2021, compared to HKD 2,138,286,000 at the end of 2020, showing an increase in receivables[167]. - The aging analysis of trade receivables shows that amounts overdue by more than 90 days increased to HKD 163,584,000 from HKD 81,195,000 year-over-year[171]. - The company recognized impairment losses of HKD 3,363 thousand for trade receivables and contract assets, a significant decrease from HKD 45,580 thousand in the previous year[146]. - The company provided a credit period of 30 days to related companies, with trade receivables aging over 90 days as of June 30, 2021[175]. - The company anticipates converting contract assets into trade receivables upon issuing progress certificates/invoices during the normal operating cycle[177].

Company Overview - Sundart Holdings Limited is a leading integrated interior decoration contractor in Hong Kong, Macau, and China, specializing in residential and hotel projects[2]. - The company expanded its interior decoration business to Macau in 2005 and to China in 2017, enhancing its market presence[2]. - In October 2010, Sundart acquired a registered general contractor, enhancing its capabilities in construction and interior decoration services[2]. - The company manufactures interior decoration wood products in Dongguan, primarily used in its projects, indicating vertical integration[2]. - Sundart has undertaken multiple large-scale interior decoration projects across Hong Kong, Macau, and China, showcasing its operational scale[2]. Financial Performance - The group's revenue for the year was HKD 5,929.1 million, a decrease from HKD 6,096.2 million in the previous year[23]. - The net profit for the year was HKD 406.5 million, compared to HKD 413.0 million in the previous year[23]. - Basic earnings per share were HKD 0.1883, down from HKD 0.1914 in the previous year[23]. - The board recommended a final dividend of HKD 0.08 per share, representing approximately 42.5% of the profit available for distribution[23]. - The group completed 28 interior decoration projects, each with a contract value of no less than HKD 50 million, along with seven renovation and construction projects[23]. Market Outlook - Future outlook includes continued expansion in the interior decoration sector, leveraging its established market position[2]. - Despite economic challenges, the group maintained a strong market share and secured multiple projects due to its solid business foundation and effective development strategies[23]. - The local demand for housing remains strong due to land supply shortages and low interest rates, supporting the interior decoration service demand in the coming years[24]. - Macau's tourism and gaming industries are gradually recovering, with the government implementing effective measures to address the pandemic's impact[24]. Project and Operational Highlights - The group completed a total of 28 interior decoration projects, including 10 in Hong Kong, 6 in Macau, and 12 in China, with individual contract amounts not less than HKD 50 million[36]. - As of December 31, 2020, the group had 59 projects on hand, with a total contract value of HKD 6,953.2 million and remaining work value of HKD 3,633.3 million[36]. - The group plans to strengthen relationships with existing clients and actively expand cooperation with new clients to enhance market share[35]. - The group aims to improve cost control measures to enhance business strategies and competitive advantages, targeting higher profit levels[35]. Governance and Compliance - The company maintains a strong governance structure with a dedicated board and audit committee to oversee its operations and financial reporting[3]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2020[88]. - The company has adopted a standard code for securities trading by directors, confirming compliance throughout the year[87]. - The company has established a risk management framework that includes a risk management team and regular assessments of risks affecting business objectives[135]. Sustainability and Corporate Social Responsibility - The group is committed to corporate social responsibility while focusing on business development, as detailed in the environmental, social, and governance report[157]. - The company emphasizes sustainable supply chain management to meet increasing customer demands for social responsibility[195]. - The company encourages the use of environmentally friendly materials, such as FSC-certified wood and low-VOC paints, to minimize environmental impact[195]. - The company has prioritized employee health during the COVID-19 pandemic, providing financial support to infected employees and implementing necessary hygiene measures[198]. Employee and Operational Metrics - Total employee costs increased by HKD 28.1 million or 6.2% to HKD 482.0 million for the year, attributed to an 8.8% rise in average full-time employees[62]. - The group employed 1,704 full-time employees as of December 31, 2020, compared to 1,632 on December 31, 2019[62]. - The company reported zero work-related fatalities in the past two years, maintaining a strong commitment to employee health and safety[199]. - A total of 15 work-related injuries resulted in 493 lost workdays in Hong Kong and Macau offices, while 20 injuries in Dongguan and Shenzhen led to 1,227 lost workdays[199].

Financial Performance - For the six months ended June 30, 2020, the company reported total revenue of HKD 504.6 million from interior decoration projects, with a total contract value of HKD 3,050.8 million for completed projects[10]. - The group's revenue from interior decoration business increased by HKD 455.9 million or 24.4% to HKD 2,327.7 million compared to the previous period[17]. - Gross profit from the interior decoration business rose by HKD 78.1 million or 30.2% to HKD 337.0 million, with a slight increase in gross margin from 13.8% to 14.5%[17]. - Revenue from renovation and construction business decreased by HKD 438.6 million or 78.3% to HKD 121.2 million, primarily due to fewer large projects undertaken during the period[18]. - Gross profit from renovation and construction business fell by HKD 17.3 million or 86.1% to HKD 2.8 million, with a decline in gross margin from 3.6% to 2.3%[18]. - The group's total revenue increased by HKD 15.8 million or 0.6% to HKD 2,452.0 million, while gross profit rose by HKD 58.4 million or 20.7% to HKD 340.3 million[22]. - Net profit for the period decreased by HKD 15.9 million or 12.5% to HKD 111.3 million compared to the previous period[24]. - Basic earnings per share decreased by HKD 0.74 or 12.5% to HKD 5.16[25]. - The company reported a profit attributable to owners of HKD 111,310, down 12.5% from HKD 127,240 in the previous year[73]. - Basic earnings per share attributable to the company's owners for the six months ended June 30, 2020, were HKD 111,310,000, a decrease of 12.5% from HKD 127,240,000 in 2019[139]. Project and Market Overview - As of June 30, 2020, the company had 63 ongoing projects with a total contract value of HKD 8,605.3 million and remaining work value of HKD 4,660.9 million[16]. - The company completed 10 interior decoration projects during the period, including 4 in Hong Kong, 1 in Macau, and 5 in China, each with a contract amount of no less than HKD 50 million[16]. - The company anticipates stable demand for interior decoration services due to the Hong Kong government's continued increase in housing supply[10]. - The company is focused on expanding its market presence in Hong Kong, Macau, and China, leveraging its strong brand image and project management capabilities[13]. - The group aims to capitalize on opportunities in high-end indoor decoration projects in shopping centers and hotels as the Chinese economy gradually recovers from the impact of COVID-19[43]. - The group will continue to focus on the latest market and policy trends in China, leveraging the Greater Bay Area initiative and the Belt and Road Initiative for growth[43]. - The group recognizes the stable demand for interior decoration projects due to ongoing housing shortages and high residential property demand in Hong Kong[41]. Economic Impact and Challenges - The Hong Kong economy experienced a significant contraction, with a GDP decline of 9.1% year-on-year in Q1 2020, impacting the construction sector[10]. - Macau's GDP fell by 58.2% year-on-year in the first half of 2020, with a drastic 83.9% drop in tourist numbers due to strict entry restrictions[11]. - The construction value of major contractors in Hong Kong decreased by 6.5% year-on-year in Q1 2020, indicating a challenging market environment[10]. - The construction industry in China saw a GDP decline of 1.9% year-on-year in the first half of 2020, but business activities are gradually recovering[12]. - The group managed to maintain a stable financial position and business development despite the ongoing US-China trade disputes and the COVID-19 pandemic[13]. - The group temporarily halted manufacturing activities and construction sites due to government-imposed quarantine measures during the COVID-19 pandemic[89]. - The demand for residential and commercial buildings began to recover in June 2020, although the management will closely monitor the financial impact of COVID-19[89]. - The group received financial support measures from the Hong Kong and Macau governments to mitigate the negative impacts of the pandemic[89]. Financial Position and Cash Flow - As of June 30, 2020, the group's operating cash was HKD 1,913.4 million, a decrease of HKD 66.0 million from HKD 1,979.4 million on December 31, 2019[31]. - The group's total debt to equity ratio was 9.5% as of June 30, 2020, down from 14.7% on December 31, 2019, primarily due to a reduction in bank borrowings[32]. - The current assets and current liabilities were HKD 4,466.8 million and HKD 2,553.4 million respectively as of June 30, 2020, compared to HKD 5,172.1 million and HKD 3,192.7 million on December 31, 2019[32]. - The group had bank borrowings of HKD 249.5 million as of June 30, 2020, down from HKD 373.3 million on December 31, 2019[31]. - The group’s cash and bank balances totaled HKD 609.8 million as of June 30, 2020, a decrease of HKD 468.3 million from HKD 1,078.1 million on December 31, 2019[31]. - The group maintained a current ratio of 1.7 times as of June 30, 2020, compared to 1.6 times on December 31, 2019[32]. - The total employee cost increased by HKD 5.0 million or 2.4% to HKD 213.9 million for the period, despite a 9.0% increase in the average number of full-time employees[40]. - The company reported a net cash used in operating activities for 2020 was HKD (172,315) thousand, an improvement from HKD (449,409) thousand in 2019[85]. - The total cash and cash equivalents at the end of 2020 were HKD 609,810 thousand, up from HKD 372,751 thousand at the end of 2019[85]. Shareholder and Governance Information - As of June 30, 2020, the major shareholder Reach Glory holds 1,178,426,653 shares, representing 54.60% of the company's equity[50]. - The company does not recommend the payment of an interim dividend for the period[45]. - The group did not engage in any significant acquisitions or disposals during the period[26]. - The company has adopted a share option scheme since December 1, 2015, with no options granted, exercised, canceled, or lapsed during the period[57]. - The company has complied with the corporate governance code, with the exception of certain independent directors being absent from the annual general meeting due to travel restrictions related to COVID-19[64]. - The audit committee reviewed the financial statements and found no issues that would indicate non-compliance with Hong Kong Accounting Standards[70]. Asset and Liability Management - The total value of trade receivables and other receivables as of June 30, 2020, was HKD 1,913,628,000, down from HKD 2,168,051,000 as of December 31, 2019, representing a decrease of 11.7%[147]. - The company’s total liabilities decreased from HKD 2,168,051,000 as of December 31, 2019, to HKD 1,913,628,000 as of June 30, 2020, reflecting a reduction of 11.7%[147]. - The company reported contract liabilities of HKD 1,299,659,000 as of June 30, 2020, compared to HKD 1,757,360,000 as of December 31, 2019, showing a decrease of approximately 26.1%[163]. - The aging analysis of accounts payable shows that HKD 928,170,000 is due within 30 days as of June 30, 2020, compared to HKD 1,302,557,000 as of December 31, 2019, indicating a decrease of approximately 28.7%[163]. - The expected credit loss recognized during the period was HKD 435,000, a significant decrease from HKD 6,818,000 for the same period in 2019, indicating improved asset quality[156]. - The company has classified its contract assets as current assets, anticipating realization within its normal operating cycle[156]. Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[74]. - The group will manage its business and finances cautiously in light of ongoing global economic instability and potential new waves of COVID-19[43]. - The company plans to lease commercial properties in China for office use, with a book value of HKD 40,094,000 being transferred to investment properties at fair value[189]. - The company’s management will closely monitor the financial impact of the COVID-19 pandemic on its overall business operations[189].

Business Overview - Sundart Holdings Limited is a leading integrated interior decoration contractor in Hong Kong, Macau, and China, specializing in residential and hotel projects[2]. - The company expanded its interior decoration business to Macau in 2005 and to China in 2017, enhancing its market presence[2]. - In October 2010, Sundart acquired a registered general building contractor, enhancing its capabilities in construction and interior decoration[2]. - The company manufactures interior decorative wood products, such as fire-resistant wooden doors and furniture, primarily for its projects[2]. - Sundart's projects are managed to ensure compliance with contract requirements and customer expectations while avoiding budget overruns[2]. - The company has undertaken multiple large-scale interior decoration projects across Hong Kong, Macau, and China[2]. - Sundart aims to expand its market share in the construction and interior decoration sectors through strategic acquisitions and partnerships[2]. - The company emphasizes the importance of project management expertise to deliver timely and quality results[2]. - Sundart's operational strategy includes leveraging its manufacturing capabilities to support its project needs[2]. - The company is committed to maintaining high standards of service and quality in its interior decoration projects[2]. Financial Performance - The company's revenue for the year was HKD 6,096.2 million, an increase of 13.1% compared to the previous year's revenue of HKD 5,390.8 million[22]. - The net profit for the year was HKD 413.0 million, up from HKD 381.2 million in the previous year, reflecting a growth of 8.4%[22]. - Basic earnings per share increased to HKD 0.1914 from HKD 0.1766, representing a rise of 7.9% year-on-year[22]. - The company completed 21 interior decoration projects, each with a contract value of no less than HKD 50.0 million, along with 15 renovation and construction projects[23]. - The company did not recommend a final dividend for the year, while the interim dividend was set at HKD 0.025 per share, equivalent to approximately 13.1% of the distributable profit for the year[22]. - The group’s revenue increased by HKD 705.4 million or 13.1% to HKD 6,096.2 million, compared to HKD 5,390.8 million in the previous year[43]. - Gross profit rose by HKD 98.1 million or 13.1% to HKD 849.7 million, maintaining a stable gross margin of 13.9%[43]. - The indoor decoration business generated a gross profit of HKD 837.8 million, an increase of HKD 141.4 million or 20.3% year-on-year[37]. - Revenue from the renovation and construction business decreased by HKD 338.0 million or 29.9% to HKD 790.8 million, down from HKD 1,128.8 million in the previous year[37]. - The gross profit from the renovation and construction business fell by HKD 31.6 million or 84.5% to HKD 5.8 million, with a gross margin dropping to 0.7%[38]. Market Conditions - The economic and social development in Macau is expected to be further promoted by various supportive policies announced by the Chinese government[24]. - The total nominal value of construction projects undertaken by major contractors in Hong Kong in 2019 was HKD 234.2 billion, a year-on-year decrease of 7.1%[31]. - In 2019, the number of residential property sales in Hong Kong reached 21,108, exceeding 20,000 for the first time since 2004[31]. - Macau's gaming revenue decreased by 3.4% year-on-year to MOP 292.5 billion in 2019[32]. - The GDP of Macau contracted by 4.7% year-on-year in 2019, primarily due to a decrease in service exports[32]. - China's GDP grew by 6.1% year-on-year in 2019, the lowest annual growth since 1990, amounting to RMB 99,086.5 billion[33]. - The total investment in real estate development in China increased by 9.9% year-on-year to RMB 13,219.4 billion in 2019[33]. Strategic Initiatives - The group aims to expand its business scope and maintain strong relationships with partners to enhance customer loyalty and solidify its leading position in the competitive interior decoration industry in Hong Kong, Macau, and China[34]. - The group will closely monitor national policies and actively seek more projects to ensure future business prospects remain cautiously optimistic[34]. - The company aims to leverage its solid business foundation and brand advantages to turn the current economic crisis into opportunities[22]. - The company plans to explore opportunities for collaboration with property developers to jointly develop high-end residential properties, hotels, and large-scale interior decoration projects in China[59]. - The company aims to leverage opportunities arising from the Belt and Road Initiative and the Greater Bay Area development to expand its operations in Hong Kong, Macau, and China[60]. Corporate Governance - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2019[84]. - The board held a total of 24 meetings during the year, with each executive director attending all regular meetings[87]. - The company has adopted a standard code for securities trading, confirming that all directors complied with the trading standards throughout the year[83]. - The company is committed to high levels of corporate governance and has established policies and procedures in line with applicable principles and codes[81]. - The board has authorized the executive directors and management to handle daily operations, while major strategic decisions require board approval[86]. - The company ensures that all matters are conducted in accordance with applicable laws and regulations, aligning with shareholder interests[80]. Risk Management and Compliance - The company has established a risk management framework that includes a risk management organization structure and regular assessments of risks affecting business objectives[126]. - The company has committed to selecting candidates based on their potential value and contribution to the board, with diversity being a key consideration in the selection process[118]. - The company adheres to strict anti-bribery, fraud, and money laundering regulations, ensuring no significant violations were found during the year[169]. - The company has established a comprehensive management system certified by ISO 9001, ISO 14001, and OHSAS 18001, enhancing customer confidence in its services and products[173]. Environmental, Social, and Governance (ESG) - The company is committed to corporate social responsibility while focusing on business development[146]. - The company established a risk management framework to monitor risks related to environmental, social, and governance (ESG) factors, including energy consumption and environmental pollution[157]. - The company achieved its environmental, social, and governance objectives for the year, with customer satisfaction ratings being favorable and successful waste reduction projects implemented[157]. - The company identified compliance, pollution and greenhouse gas emissions, and waste management as significant ESG issues impacting its operations[166]. - The company has implemented comprehensive policies to manage waste, noise, emissions, and greenhouse gases, with no significant violations of environmental regulations reported[198]. Employee Relations and Development - The company offers competitive compensation and benefits to attract top talent, including annual leave, marriage leave, and training leave[189]. - The company provides various training programs to support employee development, including onboarding, on-the-job, and external training[193]. - The company promotes equal opportunity employment practices and has not encountered any significant violations related to equal opportunity and anti-discrimination laws during the year[195]. - The company has a stock option plan effective from December 1, 2015, aimed at rewarding employees and enhancing loyalty[190].

Economic Performance - For the six months ended June 30, 2019, Hong Kong's GDP showed a slight year-on-year increase of 0.6%[16] - In Macau, the gaming revenue for the first half of 2019 slightly decreased by 0.5% to MOP 149.5 billion[17] - China's GDP for the first half of 2019 grew by 6.3% year-on-year, reaching CNY 45,093.3 billion[18] - The construction industry in China saw a year-on-year increase of 7.2% in output value, totaling CNY 10,161.6 billion[18] Company Financial Performance - The group's overall revenue decreased by HKD 267.4 million or 9.9% to HKD 2,436.2 million[28] - The group recorded a net profit of HKD 127.2 million, a decrease of HKD 79.7 million or 38.5% year-on-year[30] - Basic earnings per share decreased by HKD 3.69 or 38.5% to HKD 5.90[31] - The gross profit for the group decreased by HKD 55.9 million or 16.5% to HKD 281.9 million, with a slight decline in gross margin to 11.6%[28] - Total revenue for the six months ended June 30, 2019, was HKD 2,436,151, a decrease of 9.9% from HKD 2,703,586 in 2018[86] - Gross profit for the same period was HKD 281,939, down 16.5% from HKD 337,802 in 2018[86] - The company reported a profit attributable to owners of HKD 127,240, a decline of 38.4% compared to HKD 206,905 in the previous year[86] Revenue Breakdown - Revenue from interior decoration contracts was HKD 1,871,842, down 9.3% from HKD 2,063,293 in the previous year[131] - Revenue from renovation and construction contracts was HKD 559,819, a decrease of 11.1% from HKD 629,639 in the previous year[131] - Revenue from manufacturing, procurement, and distribution of interior decoration materials was HKD 4,490, down 57.9% from HKD 10,654 in the previous year[131] - The external revenue from the Hong Kong segment was HKD 637,755, while the Macau segment generated HKD 469,938, and the China segment generated HKD 764,149[140] Operational Insights - The company maintained a stable financial position despite global political and economic uncertainties, securing several large-scale interior decoration projects during the period[19] - The company expects stable demand in the interior decoration market due to ongoing population growth and housing needs in Hong Kong[16] - New projects acquired are anticipated to support the company's stable development and profitability in the coming years[19] - The company is focused on expanding its operations in Hong Kong, Macau, and China, leveraging its professional brand image and long-term client relationships[19] Cost and Expenses - The total employee cost for the period was HKD 208.9 million, an increase from HKD 198.0 million in the previous period, attributed to a rise in the number of full-time employees and salary increments[49] - The company reported a decrease in sales expenses to HKD 3,224 from HKD 7,714 in the previous year[86] - The company paid dividends totaling HKD (107,911,000), significantly higher than HKD (43,164,000) in the previous year[94] Debt and Cash Flow - The group's total debt to equity ratio was 19.2% as of June 30, 2019, up from 12.8% on December 31, 2018, primarily due to an increase in bank borrowings[42] - The group had bank borrowings of HKD 444.7 million as of June 30, 2019, compared to HKD 294.5 million on December 31, 2018[38] - The net cash used in operating activities for the six months ended June 30, 2019, was HKD (449,409,000), compared to HKD (163,454,000) for the same period in 2018, indicating a significant increase in cash outflow[94] - The total cash and cash equivalents decreased by HKD (517,641,000) for the six months ended June 30, 2019, compared to a decrease of HKD (362,327,000) in 2018[94] Corporate Governance - The company is committed to maintaining high standards of corporate governance, adhering to the corporate governance code, with some deviations noted regarding attendance at the annual general meeting[77] - The audit committee reviewed the financial statements and accounting policies, confirming no significant issues were found during the review[79] - The company has not engaged in any activities that would violate sanctions imposed by the US, EU, or Australian governments against Russia[74] Future Outlook - The group expects the Hong Kong retail market to trend downward in the second half of 2019 due to ongoing trade tensions and currency depreciation affecting consumer spending[50] - The group anticipates benefiting from opportunities in the Macau construction and interior decoration industry due to the expected increase in tourist arrivals, projected to exceed 40 million in 2019[50] - The company plans to continue expanding its market presence and investing in new technologies[89] Lease and Financial Reporting - The company adopted the new Hong Kong Financial Reporting Standard 16 for leases, resulting in significant changes in accounting policies[121] - The company recognized additional lease liabilities and right-of-use assets based on the transition provisions of HKFRS 16, effective January 1, 2019[122] - The company confirmed the right-of-use assets related to operating leases at HKD 25,163 thousand, categorized as HKD 23,831 thousand for land and buildings and HKD 1,332 thousand for office equipment[127]

Company Overview - Sundart Holdings Limited is a leading integrated interior decoration contractor in Hong Kong, Macau, and China, specializing in residential and hotel projects[2]. - The company expanded its interior decoration business to Macau and China in 2005 and 2017, respectively[2]. - In October 2010, Sundart acquired a general contractor to enhance its capabilities in construction and interior decoration[2]. - Sundart has undertaken multiple large-scale interior decoration projects across Hong Kong, Macau, and China[2]. - Sundart's operational headquarters is located in Hong Kong, with a significant presence in Kowloon[6]. - The company is listed on the Hong Kong Stock Exchange under the stock code 1568[6]. Financial Performance - The company's revenue for the year was HKD 5,390.8 million, an increase from HKD 4,982.9 million in the previous year, representing a growth of approximately 8.2%[25]. - The net profit for the year was HKD 381.2 million, down from HKD 421.1 million in the previous year, indicating a decrease of about 9.5%[25]. - Basic earnings per share were HKD 0.1766, compared to HKD 0.1951 in the previous year, reflecting a decline of approximately 7.3%[25]. - The board recommended a final dividend of HKD 0.05 per share, with total dividends for the year amounting to approximately 39.6% of the distributable profits, consistent with the prospectus dividend policy[25]. - The group's revenue from interior decoration business slightly decreased by HKD 1.6 million to HKD 4,204.7 million, compared to HKD 4,206.3 million in the previous year[40]. - The gross profit from the interior decoration business increased by HKD 72.1 million or 11.5% to HKD 696.4 million, up from HKD 624.3 million in the previous year[40]. - The gross profit margin for the interior decoration business rose from 14.8% in the previous year to 16.6% in the current year, attributed to increased use of the group's own produced interior decoration materials[40]. - The group recorded a net loss of HKD 9.8 million from other income, mainly due to a fair value loss of HKD 36.5 million on listed equity securities[49]. - Net profit decreased by HKD 39.9 million or 9.5% to HKD 381.2 million, attributed to increased administrative expenses and impairment losses[49]. Project and Operational Highlights - The company completed 19 individual interior decoration contracts, each valued at no less than HKD 50 million, along with 11 renovation and construction projects during the year[25]. - The group completed a total of 19 interior decoration projects during the year, with a total contract value of HKD 3,249.0 million, of which HKD 1,000.6 million was recognized as revenue[39]. - As of December 31, 2018, the group had 52 projects on hand, with a total contract value of approximately HKD 7,745.1 million and remaining work value of approximately HKD 3,553.0 million[39]. - Revenue from renovation and construction business increased by HKD 364.8 million or 47.7% to HKD 1,128.8 million, driven by nearing completion of projects in Chai Wan and Lantau Island[43]. - Revenue from manufacturing, procurement, and distribution of interior decoration materials surged by HKD 44.7 million or 354.8% to HKD 57.3 million, primarily due to increased sales in Macau and the UK[45]. Market and Economic Context - The gaming industry in Macau recorded double-digit growth during the year, supported by improved cross-border facilities and increased tourist numbers[26]. - The completion and opening of the Hong Kong-Zhuhai-Macau Bridge provided unprecedented transportation convenience, contributing to the growth of the gaming, retail, and tourism sectors[26]. - The total investment in real estate development in China reached RMB 1,202.64 billion, with a year-on-year growth of 9.5%[36]. - The residential property investment in China amounted to RMB 851.92 billion, reflecting a year-on-year increase of 13.4%[36]. - The GDP of Hong Kong grew by 2.9% year-on-year in Q3 2018, down from 3.6% in the same period of 2017[34]. - The number of first-hand residential sales in Hong Kong decreased by 16.2% year-on-year to 15,633 units in 2018, compared to 18,645 units in 2017[34]. - The Macau gaming industry generated revenue of MOP 303.9 billion in 2018, marking a year-on-year increase of 14.0%[35]. Corporate Governance - The board of directors includes members with diverse backgrounds, enhancing the company's governance and strategic oversight[86]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[97]. - The company has adopted a standard code for securities trading, confirming compliance by all directors throughout the year[96]. - The company emphasizes high standards of corporate governance and has established policies and procedures in line with applicable codes[94]. - The chairman and CEO roles are separated, with Mr. Liu as chairman and Mr. Ng as CEO, complying with governance codes[106]. - The company has arranged appropriate insurance for directors and senior officers against legal liabilities arising from corporate activities[107]. - The board is committed to continuous professional development for all directors to enhance their knowledge and skills[108]. - The company aims to ensure all affairs are conducted in accordance with applicable laws and regulations, safeguarding shareholder interests[95]. Risk Management and Internal Controls - The company has established an Audit Committee on December 1, 2015, responsible for reviewing financial statements and risk management systems[131]. - The board has established a risk management framework that includes a risk management team and regular assessments of risks impacting business objectives, conducted at least annually[158]. - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[161]. - The board has a clear governance structure to oversee risk management and ensure alignment with corporate strategy and compliance[159]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to corporate social responsibility while focusing on business development, preparing an Environmental, Social, and Governance (ESG) report in accordance with the guidelines set out in the listing rules[178]. - The ESG report covers significant environmental and social issues related to the company's main business activities in Hong Kong and Macau, specifically in interior decoration and construction projects[179]. - The company has established a governance structure for ESG, with the board of directors as the highest decision-making body, continuously reviewing ESG performance and strategies[181]. - The company engaged independent professional consultants to ensure the appropriateness and effectiveness of internal controls and risk assessments related to ESG[181]. - The company emphasizes compliance with legal regulations and has implemented measures to manage pollution, resource recycling, and energy usage[185]. - The company has a structured approach to stakeholder communication, including meetings, surveys, and public forums to enhance trust and collaboration[184]. Employee and Safety Management - The total employee cost for the year was HKD 379.0 million, an increase from HKD 345.2 million in the previous year, attributed to a rise in the average number of full-time employees and salary increases[65]. - The average number of full-time employees increased by 78 or 5.8% to 1,430 in the year, compared to 1,352 in the previous year[65]. - The company emphasizes the importance of employee health and safety, adhering to relevant regulations such as the Occupational Safety and Health Ordinance in Hong Kong[199]. - A dedicated safety management committee has been established to oversee the implementation of health and safety policies, ensuring compliance with industry trends and regulations[200]. - The company conducts biannual comprehensive audits of its safety management by accredited external auditors, continuously improving existing safety management practices[200]. - Regular fire drills and emergency response training are conducted to enhance employees' emergency knowledge and ensure a safe working environment[200]. - No significant violations of health and safety laws and standards were reported during the year, indicating a strong compliance record[200].