Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately HKD 58.5 million, a decrease of 24.2% compared to HKD 77.2 million in 2023[11]. - Gross profit for the same period was approximately HKD 15.4 million, down 35.6% from HKD 23.9 million in 2023[11]. - The company recorded a pre-tax loss of approximately HKD 85.5 million, an increase of 122% from a loss of HKD 38.5 million in 2023[12]. - The group recorded a loss of approximately HKD 86.4 million for the year ended December 31, 2024, compared to a loss of HKD 40.4 million in 2023[19]. - The company recorded a net loss attributable to shareholders of approximately HKD 86.4 million for the year ended December 31, 2024, compared to a loss of HKD 40.4 million in 2023[22]. - Revenue from Hong Kong projects decreased by approximately HKD 16.1 million or 39% due to several large projects nearing completion and new large projects not yet commenced[40]. - Revenue from mainland China decreased from HKD 35.9 million in 2023 to HKD 33.1 million in 2024[42]. - Basic loss per share increased to approximately HKD 0.039 from HKD 0.0197 in 2023, reflecting the rise in annual losses[48]. Financial Position - The net debt increased to approximately HKD 54.1 million, compared to net assets of HKD 35.2 million in 2023[12]. - As of December 31, 2024, the total amount of bank loans, including principal and accrued interest, was approximately HKD 33.5 million, slightly up from HKD 33.2 million in 2023[19]. - The company has a net debt of HKD 54.1 million and current liabilities of HKD 40.6 million, indicating significant financial pressure[25]. - The current ratio as of December 31, 2024, is approximately 0.72, down from 1.47 as of December 31, 2023[51]. - The debt-to-equity ratio for 2024 is -479.6%, a significant decline from 62.7% in 2023[54]. - The net current liabilities as of December 31, 2024, are approximately HKD 40.6 million, a shift from net current assets of HKD 60.9 million in 2023[55]. - As of December 31, 2024, the company's capital structure includes a deficit of approximately HKD 54.1 million, compared to equity of HKD 35.2 million as of December 31, 2023[50]. Operational Challenges - The geopolitical tensions and international trade frictions continue to impact the construction industry and the company's business development[11]. - The construction materials and labor costs have risen, negatively impacting the group's profit margins[15]. - The overall economic recovery in Hong Kong is slow, with uncertainty in the property market affecting future bidding activities[15]. - The group is facing a human resources shortage due to increasing competition in the labor market[18]. - The potential time lag between receiving customer progress payments and paying subcontractors and suppliers may adversely affect cash flow[21]. - The group’s business risks are closely related to the property market and construction industry, with geopolitical tensions and rising interest rates adding uncertainty[19]. Funding and Liquidity - The company is actively seeking various funding sources to reduce overdue bank borrowings and financial pressure[8]. - The company is actively seeking new financing sources to improve liquidity and has been in discussions with banks to avoid immediate repayment of loans[30][36]. - The company is actively negotiating with banks to extend repayment dates for overdue borrowings and has received financial support from its major shareholder[26]. - The company has implemented measures to expedite project certification, customer billing, and collections to enhance future financial liquidity[26]. - Management believes that future liquidity and performance may improve, and they have reviewed cash flow forecasts covering at least twelve months from December 31, 2024[26]. Governance and Compliance - The company has established a robust governance framework for ESG matters, with the board taking ultimate responsibility for strategy, goals, policies, performance, and reporting[72]. - The board is responsible for ensuring the effectiveness of the risk management and internal control systems, with annual reviews covering all relevant factors[75]. - The company has adopted a nomination policy for the selection of directors, considering factors such as reputation, experience, and diversity[173]. - The board consists of 2 executive directors and 4 independent non-executive directors, with independent directors making up 66.7% of the board[145][147]. - The company has implemented a board diversity policy, aiming for gender balance, with 2 out of 6 board members being female[149]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified 19 key environmental, social, and governance (ESG) issues relevant to stakeholders, covering areas such as "environment," "employment and labor practices," "operational practices," and "community"[82]. - Six critical issues have been prioritized, including "prevention of child and forced labor," "occupational health and safety," "anti-corruption," "product and service responsibility," "protection of intellectual property," and "protection of customer privacy"[82]. - The company has maintained consistency in reporting methods, allowing for meaningful comparisons of ESG performance over time[69]. - The company has established a quality control management system to monitor procurement and production processes, ensuring all products meet high-quality standards[87]. - The company has implemented measures to protect customer data and privacy, including installing firewalls and antivirus software in its IT systems[92]. Employee and Training - The company has 11 employees, with a turnover rate of 35%[100]. - 54% of employees participated in training programs during the reporting period, with an average training duration of approximately 10 hours per employee[106]. - The company emphasizes the importance of talent as a key driver for sustainable growth and has established employment and compensation policies to ensure a fair and inclusive work environment[97]. - The company conducts annual performance evaluations to provide promotion opportunities for outstanding employees, ensuring alignment with market trends and stakeholder needs[104]. Environmental Impact - The total greenhouse gas emissions amounted to 15.99 tons of CO2 equivalent, a decrease of approximately 35.68% compared to the previous year, with a density of 1.45 tons of CO2 equivalent per employee[114]. - Total energy consumption decreased from 83,837.76 kWh in 2023 to 52,844.08 kWh in 2024, representing a reduction of approximately 37.1%[126]. - Total waste generated decreased from 795.41 tons in 2023 to 456.40 tons in 2024, a reduction of about 42.7%[126]. - The company aims to support the Hong Kong government's goal of achieving carbon neutrality by 2050, incorporating climate-related risks and opportunities into business decisions[122]. - The company has committed to improving waste and wastewater management technologies to further reduce environmental impact[110].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 77,199,000, an increase from HKD 58,514,000 in 2023, representing a growth of approximately 32%[3] - The cost of sales for the same period was HKD 53,250,000, compared to HKD 43,130,000 in 2023, indicating an increase of about 23%[3] - Gross profit for the fiscal year 2024 was HKD 23,949,000, up from HKD 15,384,000 in 2023, reflecting a growth of approximately 55%[3] - The company reported an operating loss of HKD 33,317,000 for 2024, compared to a loss of HKD 80,514,000 in 2023, showing an improvement of about 59%[4] - The net loss for the fiscal year 2024 was HKD 86,372,000, compared to HKD 40,449,000 in 2023, indicating a significant increase in losses[4] - Basic and diluted loss per share for 2024 was HKD 3.90, compared to HKD 1.97 in 2023, reflecting a deterioration in per-share performance[4] Assets and Liabilities - Total assets decreased from HKD 190,274 million in 2023 to HKD 104,589 million in 2024, representing a decline of approximately 45%[5] - Current assets decreased from HKD 189,399 million in 2023 to HKD 104,577 million in 2024, a reduction of about 45%[5] - Total liabilities increased from HKD 155,029 million in 2023 to HKD 158,692 million in 2024, indicating a rise of approximately 2%[6] - Total equity decreased from HKD 35,245 million in 2023 to HKD (54,103) million in 2024, reflecting a significant decline[5] - The company reported a cumulative loss of HKD (213,003) million in 2024, compared to HKD (126,631) million in 2023, an increase in losses of approximately 68%[5] - The company’s cash and cash equivalents decreased from HKD 507 million in 2023 to HKD 308 million in 2024, a decline of about 39%[5] Operational Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[3] - The company is focusing on reducing operational costs to improve future profitability, as indicated by the decrease in administrative expenses from HKD 20,759,000 in 2023 to HKD 16,869,000 in 2024[4] - The company is exploring potential mergers and acquisitions to enhance its market position and product offerings[3] - The company has taken measures to accelerate customer certification, billing, and collection for completed projects[15] - The company continues to implement cost control measures to enhance operational efficiency and improve future cash flow[19] Financing and Debt - The total bank borrowings amount to approximately HKD 33,456,000, with all borrowings being overdue and in default as of December 31, 2024[13] - The total accrued interest payable is approximately HKD 20,322,000, including default interest of about HKD 898,000[13] - The group is unable to draw new loans from its bank financing, and any further withdrawals require bank approval[14] - A bank has requested immediate repayment of approximately HKD 3,425,000 in outstanding principal and accrued interest, threatening legal action if not settled within three business days[14] - The company is negotiating with banks to extend overdue loans and is confident in reaching agreements, particularly regarding a loan due on January 13, 2025[15] Revenue Breakdown - Customer contract revenue for the year ending December 31, 2024, is projected at HKD 58,514,000, a decrease of 24% from HKD 77,199,000 in 2023[24] - Revenue from Hong Kong decreased to HKD 25,220,000 in 2024, down 39% from HKD 41,260,000 in 2023[27] - Revenue from China increased to HKD 33,191,000 in 2024, compared to HKD 35,858,000 in 2023, indicating a slight decline of 7%[27] - Revenue from the supply and paving services segment for the year ending December 31, 2024, is projected at HKD 33,213,000, an increase of 36% from HKD 24,499,000 in 2023[24] Legal and Compliance - The independent auditor's report states that no opinion is expressed on the consolidated financial statements due to insufficient appropriate audit evidence[60] - The group has no other litigation cases as of the announcement date, indicating a stable legal standing[101] - The audit committee reviewed the group's annual performance for the year ended December 31, 2024, ensuring compliance with management and accounting policies[106] Corporate Governance - The group is committed to maintaining strict corporate governance and transparency for all shareholders[102] - The remuneration committee is responsible for proposing salary policies for all directors and senior management, ensuring alignment with market standards[107] - The nomination committee regularly reviews the structure and composition of the board, making recommendations for any changes[108] Future Outlook - The board believes that with certain plans and measures, the group will have sufficient working capital to meet its financial obligations within the next twelve months[63] - Management believes that future cash flow and performance may improve, and they have taken actions to enhance cash collection from completed projects[112] - The group is actively seeking other financing channels, including debt or equity financing, to improve its capital structure and reduce financial costs[113]

Group 1 - The article discusses various financial metrics such as earnings per share, net asset value per share, operating cash flow per share, and retained earnings per share [1] - It highlights key performance indicators including return on equity, gross margin, and net profit [1] - The article emphasizes the importance of revenue growth and year-over-year comparisons for net profit and non-recurring net profit [1] Group 2 - The article provides insights into liquidity ratios such as asset-liability ratio, current ratio, quick ratio, and cash ratio [1] - It categorizes financial performance by product, industry, and region [1]

Financial Performance - For the six months ended June 30, 2024, the company recorded revenue of approximately HKD 17.6 million, a decrease of 34.8% compared to the same period last year[5]. - The loss attributable to the company's owners for the period increased to approximately HKD 8.5 million, up from HKD 3.6 million in the previous period[14]. - The overall gross profit margin decreased from approximately 28.5% to 17.0%, with gross profit dropping by about 61.3% to approximately HKD 3.0 million[10]. - The company reported a gross profit of HKD 2,988,000 for the six months ended June 30, 2024, compared to HKD 7,717,000 for the same period in 2023, indicating a decline[44]. - The company incurred an operating loss of HKD 5,765,000 for the six months ended June 30, 2024, compared to an operating loss of HKD 1,020,000 for the same period in 2023[44]. - The company reported a net loss attributable to shareholders of HKD 8,522,000 for the six months ended June 30, 2024, compared to a net loss of HKD 3,590,000 for the same period in 2023[44]. - Basic and diluted loss per share was HKD 0.40 for the six months ended June 30, 2024, compared to HKD 0.24 in the previous year[84]. Revenue Breakdown - Revenue from supply and paving services was HKD 13,218 thousand, up 15.7% from HKD 11,416 thousand year-on-year[66]. - Revenue from stone sales dropped significantly to HKD 4,416 thousand, down 71.8% from HKD 15,637 thousand in the previous year[66]. - The group reported total revenue of HKD 17,634 thousand for the six months ended June 30, 2024, a decrease of 34.8% from HKD 27,053 thousand in the same period of 2023[66]. Expenses and Costs - Administrative expenses for the period remained stable at approximately HKD 8.8 million compared to the previous period[11]. - The group recognized construction costs of HKD 11,241 thousand in cost of sales, an increase of 14.9% from HKD 9,772 thousand in 2023[75]. - Financial costs decreased slightly from HKD 2.6 million to HKD 2.5 million due to the settlement of certain outstanding bank loans[12]. - Financial costs netted at HKD (2,477) thousand, slightly improved from HKD (2,570) thousand in the previous year[76]. Capital Structure and Liquidity - The company's capital structure as of June 30, 2024, included equity of approximately HKD 26.6 million and bank borrowings of approximately HKD 33.5 million[15]. - The group's current ratio as of June 30, 2024, was approximately 1.33, down from 1.47 as of December 31, 2023[18]. - The group's debt-to-equity ratio increased to approximately 67.2% as of June 30, 2024, compared to 62.9% as of December 31, 2023[20]. - The total liabilities increased to HKD 164,490,000 as of June 30, 2024, compared to HKD 155,029,000 at the end of 2023[54]. - Current liabilities rose to HKD 143,642,000 as of June 30, 2024, from HKD 128,545,000 in 2023[54]. - The group has been actively negotiating repayment plans with banks to address overdue bank loans and improve liquidity[17]. - The company is actively seeking additional financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[59]. Shareholder Information - Major shareholder Mr. Lei Yu-run holds 1,343,045,294 shares, representing 62.58% of the company's issued share capital[32]. - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to no dividend declared for the same period in 2023[103]. Assets and Receivables - The total equity of the company decreased to HKD 26,573,000 as of June 30, 2024, down from HKD 35,245,000 as of December 31, 2023[47]. - The company reported a total of HKD 39,120,000 in receivables, up from HKD 31,234,000, indicating a 25.3% increase[90]. - As of June 30, 2024, trade receivables increased to HKD 11,567,000 from HKD 6,514,000, representing a growth of 77.5%[90]. - The company’s total assets amounted to HKD 128,015 thousand as of June 30, 2024, reflecting a significant increase from HKD 117,534 thousand at the beginning of the year[108]. Operational Insights - The company faces challenges in obtaining new bank financing due to overdue bank loans since 2020, relying on internal resources and financial support from directors[7]. - The construction market outlook in Hong Kong remains uncertain, but private and public sector project volumes are expected to continue growing[7]. - New business segments in mainland China are anticipated to contribute to the company's future growth despite local economic uncertainties[7]. - The group has not experienced any significant labor disputes or shortages affecting operations as of June 30, 2024[27]. - The group has not engaged in any major acquisitions or disposals of subsidiaries during the six months ending June 30, 2024[26]. Cash Flow and Financing Activities - For the six months ended June 30, 2024, the company reported a net cash flow from operating activities of HKD 7,271 thousand, compared to a net cash outflow of HKD 616 thousand in the same period of 2023[109]. - The company’s cash flow from financing activities showed a net outflow of HKD 7,478 thousand, contrasting with a net inflow of HKD 839 thousand in the previous year[109]. - Interest paid decreased to HKD 646 thousand from HKD 894 thousand year-over-year, indicating improved financing costs[109]. - The company’s cash and bank balance stood at HKD 517 thousand, while bank overdrafts totaled HKD (9,657) thousand at the end of the reporting period[109].

Financial Performance - Revenue from customer contracts for the six months ended June 30, 2024, was HKD 17,634,000, a decrease of 39.5% compared to HKD 27,053,000 in the same period of 2023[1] - Gross profit for the same period was HKD 2,988,000, down 61.2% from HKD 7,717,000 in 2023[1] - Operating loss increased to HKD 5,765,000 from HKD 1,020,000 year-over-year[1] - Loss before tax for the six months ended June 30, 2024, was HKD 8,242,000, compared to HKD 3,590,000 in 2023, representing a 129.5% increase[2] - For the six months ended June 30, 2024, the group recorded a net loss of approximately HKD 8,522,000, compared to a net loss of approximately HKD 3,590,000 for the same period in 2023[7] - The loss attributable to the company's owners for the period increased to approximately HKD 8.5 million, up from HKD 3.6 million in the previous period[41] - Basic and diluted loss per share for the period was HKD 0.40, compared to HKD 0.24 in 2023, indicating a 66.7% increase in loss per share[2] - Basic loss per share for the six months ended June 30, 2024, was calculated based on the loss attributable to shareholders divided by the weighted average number of ordinary shares issued[22] Revenue Breakdown - Revenue for the six months ended June 30, 2024, was HKD 17,634,000, a decrease of 34.8% from HKD 27,053,000 in the same period of 2023[13] - Revenue from supply and paving services was HKD 13,218,000, up 15.7% from HKD 11,416,000 in 2023[13] - Revenue from stone sales was HKD 4,416,000, down 71.8% from HKD 15,637,000 in 2023[13] - Revenue from Hong Kong was HKD 12,970,000, a decrease of 52.0% from HKD 27,053,000 in 2023[14] - Revenue from China was HKD 4,664,000, with no revenue reported in the same period of 2023[14] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 191,063,000, a slight increase from HKD 190,274,000 at the end of 2023[3] - Total liabilities increased to HKD 164,490,000 from HKD 155,029,000, reflecting a rise of 6.3%[4] - The company reported a total equity of HKD 26,573,000, down from HKD 35,245,000 in the previous year[3] - Trade receivables increased to HKD 22,024,000 from HKD 14,138,000, marking a 55.8% increase[3] - The company’s cash and cash equivalents stood at HKD 517,000, slightly up from HKD 507,000 at the end of 2023[3] - As of June 30, 2024, the group's bank borrowings amounted to approximately HKD 33,522,000, slightly up from approximately HKD 33,152,000 in 2023[7] - The group has approximately HKD 517,000 in bank balances and cash as of June 30, 2024, compared to approximately HKD 507,000 in 2023[7] - The group’s debt-to-asset ratio was approximately 67.2% as of June 30, 2024, up from 62.9% as of December 31, 2023[46] - The net current assets of the group were approximately HKD 47.2 million as of June 30, 2024, down from approximately HKD 60.9 million as of December 31, 2023[47] Financial Management and Strategy - The group is actively negotiating with banks to extend overdue borrowings and has not received any formal repayment requests as of the publication date[9] - Major shareholders are willing to provide financial support if necessary, with loans amounting to HKD 20,848,000 due by June 30, 2026, at an interest rate between 2% to 5%[9] - The group is seeking additional financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[9] - The board believes that the group will have sufficient operating funds to meet its financial obligations for at least the next twelve months[10] - The group is taking measures to alleviate cash flow pressure, including accelerating customer certification and payment collection[9] - The group has faced challenges in obtaining new bank financing due to overdue bank loans since 2020, relying on internal resources and financial support from directors[35] - The group has taken measures to improve its liquidity and financial situation, including accelerating project status and collection periods for receivables[43] Corporate Governance - The company is committed to maintaining strict corporate governance and effective internal control measures[57] - The board of directors consists of experienced and talented individuals, ensuring a strong independent element[57] - All directors confirmed compliance with the trading standards as of June 30, 2024[58] Other Financial Information - The company reported a net finance cost of HKD 2,478,000 for the six months ended June 30, 2024, compared to HKD 2,570,000 in 2023[18] - The company incurred immediate tax expenses of HKD 280,000 for the six months ended June 30, 2024, with no tax expenses reported in 2023[20] - The effective annual interest rate on bank borrowings was 10.5% as of June 30, 2024, compared to 10.3% as of December 31, 2023[30] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, compared to zero for the same period in 2023[32] - The group did not declare any interim dividend for the six months ended June 30, 2024, to retain resources for future development[34] - The company had issued and paid-up share capital of HKD 21,462 thousand as of June 30, 2024, with a total of 2,146,201,635 shares issued[31] - The company’s trade payables and deposits amounted to HKD 43,137 thousand as of June 30, 2024, compared to HKD 43,542 thousand as of December 31, 2023[28] - The company’s other receivables increased to HKD 2,795 thousand as of June 30, 2024, from HKD 971 thousand as of December 31, 2023[26] - The group issued a performance guarantee of HKD 3.7 million through a bank for construction contracts as of June 30, 2024[50] - There were no significant capital commitments for the group as of June 30, 2024[49] - The group had 14 full-time employees as of June 30, 2024, with no adverse impact from labor disputes reported[51] - The audit committee reviewed the group's accounting policies and financial reporting matters as of June 30, 2024[52] - The group did not engage in any share buybacks, sales, or redemptions of its listed securities during the six months ended June 30, 2024[55] - There were no significant contracts involving directors with substantial interests related to the group's business as of the reporting date[56] - The interim results announcement will be published on the Hong Kong Stock Exchange and the company's website[59] - The company plans to send the interim report for the six months ending June 30, 2024, to shareholders in due course[59]

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately HKD 77.2 million, a decrease of 40.8% compared to HKD 130.4 million for the year ended December 31, 2022[11]. - Gross profit for the same period was approximately HKD 23.9 million, down 23.9% from HKD 31.4 million in 2022[11]. - The company recorded a pre-tax loss of approximately HKD 38.5 million, which is a decrease of 27.5% compared to a loss of HKD 30.2 million in 2022[12]. - The company recorded a loss of approximately HKD 40.4 million for the year ended December 31, 2023, compared to a loss of HKD 32.3 million in 2022[22]. - Revenue from Hong Kong projects decreased by approximately HKD 50.0 million or 54.8% due to several large projects entering completion stages[57]. - Revenue from Macau decreased by approximately HKD 0.3 million or 76.1%, attributed to fewer bidding activities amid economic weakness[58]. - The company recorded a net loss attributable to shareholders of approximately HKD 40.4 million for the year ended December 31, 2023, compared to a loss of approximately HKD 32.3 million in 2022[27]. Assets and Liabilities - Net assets as of December 31, 2023, were approximately HKD 35.2 million, down from HKD 58.2 million in 2022[12]. - Contract assets as of December 31, 2023, were approximately HKD 110.5 million, a decrease of 24.0% compared to the previous year[12]. - Trade receivables and retention money amounted to approximately HKD 14.1 million, a decrease of 38.1% from the previous year[12]. - As of December 31, 2023, total bank borrowings amounted to approximately HKD 33.2 million, a decrease from HKD 36.6 million in 2022[15]. - The company's current ratio as of December 31, 2023, was approximately 1.47, down from 1.88 in 2022[74]. - The company's net current assets were approximately HKD 60.9 million, a decrease from HKD 113.2 million in 2022, primarily due to a reduction in contract assets[77]. Market and Business Strategy - The company has actively participated in various tender activities in response to the recovery of the construction market in Hong Kong[7]. - The company has entered the Chinese construction market by the end of 2023, aligning with the government's initiatives to stimulate economic activity[8]. - The company aims to expand its market presence in mainland China for marble and granite products, which is expected to significantly increase future revenue and profitability[25]. - The company is focused on maintaining a competitive pricing strategy while ensuring sufficient profit margins in its bids[23]. - The company has taken measures to diversify and expand its business coverage through significant acquisitions and related transactions completed on November 24, 2023[24]. Financial Management and Liquidity - The company is seeking various funding sources to reduce overdue bank borrowings and financial pressure[8]. - The company has taken measures to alleviate liquidity pressure and improve its financial situation, including discussions with banks to extend repayment dates[37]. - The company estimates its liquid assets to be approximately HKD 190.2 million against current liabilities of HKD 128.6 million as of December 31, 2023[33]. - The company has received unsecured loans from its executive directors totaling HKD 26.48 million as of December 31, 2023, with potential additional financing of approximately HKD 10 million[37]. - The company is actively seeking other financing sources, including debt or equity financing, to improve its capital structure and reduce overall financial expenses[37]. Governance and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual[171]. - The board of directors consists of 3 executive directors, 1 non-executive director, and 4 independent non-executive directors, ensuring a balanced skill set and diverse perspectives[180]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with the relevant regulations[173]. - The company is committed to continuously reviewing and improving its governance practices in response to developments[174]. - The independent non-executive directors have met without the presence of other executive directors at least once in the year[197]. Environmental, Social, and Governance (ESG) Initiatives - The group has established a robust governance framework for environmental, social, and governance (ESG) matters, with the board taking ultimate responsibility[95]. - The group has implemented internal data systems and review procedures to ensure the accuracy and reliability of the data presented in the ESG report[93]. - The company has identified 19 key environmental, social, and governance (ESG) issues, with six being prioritized as most important, including "prevention of child and forced labor" and "occupational health and safety"[107]. - The company has implemented a comprehensive supply chain management approach to enhance sustainability and requires suppliers to adhere to a code of conduct[120]. - The company is committed to educating employees and stakeholders on the importance of environmental awareness and sustainable practices[139]. Employee Management and Development - The group has a total of 17 employees, with a turnover rate of 417.65%, primarily due to workforce restructuring in response to operational conditions[126]. - 17.65% of employees participated in training during the reporting period, with an average training duration of 15.29 hours per employee[133]. - The group conducts annual performance evaluations to provide promotion opportunities for outstanding employees, ensuring competitive compensation adjustments[123]. - The group emphasizes the importance of equal employment opportunities, prohibiting any form of discrimination based on various factors including age, gender, and nationality[125]. - The company is committed to supporting the Hong Kong SAR government's goal of achieving carbon neutrality by 2050[152].

Financial Performance - For the year ended December 31, 2023, the company reported revenue from customer contracts of HKD 77,199,000, a decrease of 40.7% compared to HKD 130,394,000 in 2022[3]. - The cost of sales for the same period was HKD 53,250,000, down from HKD 99,040,000 in the previous year, resulting in a gross profit of HKD 23,949,000, a decline of 23.5% from HKD 31,354,000[3]. - The company incurred an operating loss of HKD 33,317,000, compared to a loss of HKD 22,649,000 in 2022, indicating a worsening operational performance[3]. - The total comprehensive loss for the year was HKD 40,449,000, compared to a loss of HKD 32,338,000 in the previous year, reflecting a 25.2% increase in losses[4]. - Basic and diluted loss per share for the year was HKD 1.97, compared to HKD 1.74 in 2022, indicating a decline in shareholder value[4]. - The company reported other income of HKD 5,000, which was significantly lower than HKD 1,786,000 in the previous year, showing a decrease of 72%[3]. - The expected credit loss model resulted in a significant increase in impairment losses, with trade receivables impairment rising to HKD 6,781,000 from HKD 3,095,000[3]. - The group recorded a net loss of approximately HKD 40,449,000 for the year ending December 31, 2023, compared to a net loss of approximately HKD 32,338,000 in 2022[18]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 190,274 million, a decrease of 22.2% from HKD 244,680 million in 2022[6]. - Current assets decreased to HKD 189,399 million in 2023, down 21.9% from HKD 242,396 million in 2022[6]. - Total liabilities as of December 31, 2023, were HKD 155,029 million, a decrease of 17.0% from HKD 186,491 million in 2022[7]. - The company reported a cumulative loss of HKD 126,631 million as of December 31, 2023, compared to HKD 86,182 million in 2022[7]. - Cash and cash equivalents decreased to HKD 507 million in 2023 from HKD 1,319 million in 2022, reflecting a decline of 61.6%[6]. - Trade receivables decreased to HKD 14,138 million in 2023, down 38.5% from HKD 22,777 million in 2022[6]. - Total equity decreased to HKD 35,245 million in 2023, down 39.4% from HKD 58,189 million in 2022[7]. - The company reported total current liabilities of HKD 128,545 million in 2023, slightly down from HKD 129,161 million in 2022[7]. - The company’s non-current liabilities decreased to HKD 26,484 million in 2023 from HKD 57,330 million in 2022, a reduction of 53.8%[7]. Acquisition and Investments - The company acquired Pacific Mining Limited for an initial price of HKD 100 million, with a guaranteed profit of no less than HKD 18 million for the fiscal year ending December 31, 2023[10]. - The acquisition of Pacific Mining Limited was completed on November 24, 2023, with an initial payment of HKD 100 million, consisting of HKD 50 million in shares issued at the completion date and another HKD 50 million in shares issued within 14 business days after the audited report for the year ending December 31, 2023[11][12][14]. - The transaction costs related to the acquisition are approximately HKD 3 million, which will be recorded under "administrative expenses" in the profit and loss statement for the year ending December 31, 2023[12]. - The financial statements for the year ending December 31, 2022, have been restated to include the assets and liabilities of Pacific Mining Limited, reflecting its operations as if the acquisition had been completed on January 1, 2022[14]. Revenue Breakdown - Revenue from customer contracts for the year ending December 31, 2023, was HKD 77,199,000, a decrease of 40.7% from HKD 130,394,000 in 2022[28]. - Revenue from Hong Kong for the year ended December 31, 2023, was HKD 41,260,000, down 54.8% from HKD 91,347,000 in 2022[32]. - Revenue from China for the year ended December 31, 2023, was HKD 35,858,000, a decrease of 7.4% from HKD 38,708,000 in 2022[32]. - Major customer D contributed HKD 26,072,000 in 2023, compared to HKD 23,134,000 in 2022, reflecting an increase of 12.6%[33]. - Revenue from Hong Kong stone products supply and paving accounted for less than 10% of total revenue for the year ended December 31, 2023[34]. Operational Challenges - The group faces significant uncertainty regarding its ability to continue as a going concern due to the current financial situation[20]. - The construction industry is gradually recovering as COVID-19 restrictions are lifted, but faces challenges from high inflation, high interest rates, and labor shortages[72]. - Revenue for the year ended December 31, 2023, decreased primarily due to several large projects reaching completion, while new large projects have not yet commenced[72]. Corporate Governance and Future Outlook - The company adheres to strict corporate governance principles, ensuring transparency and accountability to shareholders[104]. - Management has developed cash flow forecasts based on plans and measures to improve liquidity and financial condition, which are critical for the going concern assumption[68]. - The annual report for 2023 will be sent to shareholders and published on the stock exchange and the company's website[116]. - The Annual General Meeting is scheduled for June 28, 2024, with a notice to be published in due course[117].

Financial Performance - The company recorded revenue of approximately HKD 27.1 million for the six months ended June 30, 2023, a decrease of 50.6% compared to the same period last year[5]. - Revenue from customer contracts for the six months ended June 30, 2023, was HKD 27,053,000, a decrease of 50.7% compared to HKD 54,757,000 in the same period of 2022[55]. - Revenue from supply and paving services was HKD 11,416,000, down 77.7% from HKD 51,109,000 in the previous year[75]. - Revenue from stone sales increased significantly to HKD 15,637,000, compared to HKD 3,648,000 in the prior period, marking a growth of 328.5%[75]. - The loss attributable to the company's owners increased from approximately HKD 1.8 million for the six months ended June 30, 2022, to approximately HKD 3.6 million for the same period in 2023[21]. - Operating loss for the six months ended June 30, 2023, was HKD 1,020,000, compared to an operating profit of HKD 1,889,000 in the previous year[55]. - The company reported a loss before tax of HKD 3,590,000 for the six months ended June 30, 2023, compared to a loss of HKD 1,836,000 in the same period of 2022[86]. - Basic and diluted loss per share for the six months ended June 30, 2023, was HKD 0.24, compared to HKD 0.15 for the same period in 2022[55]. Cost and Expenses - The overall gross profit margin improved from approximately 25.6% to 28.5%, despite a decrease in gross profit from approximately HKD 14.0 million to approximately HKD 7.7 million, a decline of about 45.1%[12]. - Administrative expenses decreased by approximately HKD 0.9 million or 9.3% to approximately HKD 8.7 million for the current period[13]. - Financial costs decreased from approximately HKD 3.7 million to approximately HKD 2.6 million, primarily due to the repayment of certain outstanding bank loans[15]. - Financial costs for the six months ended June 30, 2023, amounted to HKD 2,570,000, a decrease of 30.9% from HKD 3,725,000 in 2022[83]. Assets and Liabilities - Total assets as of June 30, 2023, were HKD 225,597,000, a decrease from HKD 231,818,000 as of December 31, 2022[57]. - Total liabilities as of June 30, 2023, were HKD 163,572,000, down from HKD 178,203,000 at the end of 2022[59]. - Total equity increased to HKD 62,025,000 as of June 30, 2023, from HKD 53,615,000 at the end of 2022[57]. - The net current assets were approximately HKD 110.1 million as of June 30, 2023, slightly up from HKD 108.7 million on December 31, 2022[29]. - The total bank borrowings amounted to approximately HKD 33.6 million as of June 30, 2023, a decrease from HKD 36.6 million on December 31, 2022[25]. - Total bank borrowings decreased to HKD 33,619,000 as of June 30, 2023, from HKD 36,555,000 as of December 31, 2022, a reduction of 7.9%[97]. Cash Flow and Financing - As of June 30, 2023, the group's cash and cash equivalents were approximately HKD 0.5 million, down from HKD 1.4 million on December 31, 2022[24]. - Operating cash flow for the six months ended June 30, 2023, was a net outflow of HKD 616,000, compared to a net inflow of HKD 3,517,000 in the same period of 2022[63]. - The net cash inflow from financing activities was HKD 839,000, a significant improvement from a net outflow of HKD 4,355,000 in the previous year[63]. - The company raised HKD 9,000,000 from issuing new shares and HKD 2,500,000 from convertible bonds during the financing activities[63]. - Overdue bank loans were significantly reduced to approximately HKD 33,619,000 as of June 30, 2023, down from HKD 91,703,000 previously reported[67]. - The company is actively seeking additional financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[69]. Corporate Governance and Compliance - The company has not declared any interim dividend for the six months ended June 30, 2023, consistent with the previous year[7]. - The company is currently seeking suitable candidates to fill vacancies for independent non-executive directors and audit committee members to comply with listing rules[48]. - The company has not met the requirement of having at least three independent non-executive directors on the board as per listing rules[48]. - The company is committed to maintaining strict corporate governance and effective internal control measures[45]. - The company has adopted the standard code for securities trading by directors and confirmed compliance with the trading standards as of June 30, 2023[47]. Market Conditions and Challenges - The company faced challenges due to rising interest rates, a declining property market in Hong Kong, and increased material and logistics costs[5]. - The global economic growth is projected to decline from 3.5% in 2022 to 3% in 2023 and 2024, impacting the company's operations[8]. - The effective annual interest rate on bank borrowings increased to 10.79% as of June 30, 2023, compared to a range of 3.38% to 7.35% as of December 31, 2022[99]. Shareholder Information - Mr. Lei Yurun holds 784,210,000 shares through a controlled corporation, representing 50.33% of the issued share capital[40]. - Mr. Lei Yurun is the beneficial owner of 784,770,000 shares, accounting for 50.37% of the issued share capital[42]. - Mr. Cai Xuerui, a major shareholder, owns 122,786,341 shares, which is 6.28% of the issued share capital[42]. - Mr. Lei Yurun has a short position of 72,515,000 shares, equivalent to 4.65% of the issued share capital[42]. - As of June 30, 2023, the company had issued a total of 1,483,354,483 shares, an increase from 1,331,469,661 shares as of December 31, 2022, reflecting a growth of 11.4%[101].

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的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公佈全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 Anchorstone Holdings Limited 基 石 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1592） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 佈 中期業績（未經審核） 基石控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（統稱「本集團」）截至2023年6月30日止六個月的未經審核簡 明綜合中期業績連同2022年同期未經審核比較數字如下： 簡明綜合中期損益及其他全面收益表 截至2023年6月30日止六個月 截至6月30日止六個月 2023年 2022年 附註 千港元 千港元 （未經審核） （未經審核） ...

Financial Performance - The company recorded revenue of approximately HKD 91.7 million for the year ended December 31, 2022, a slight decrease of 0.2% compared to HKD 91.9 million in 2021[15]. - Gross profit increased to HKD 14.9 million in 2022, representing a 33.0% increase from HKD 11.2 million in 2021[15]. - The group recorded a net loss of approximately HKD 44.4 million for the year ended December 31, 2022, a reduction of about HKD 2.3 million or 4.9% compared to a loss of HKD 46.7 million in 2021[16]. - Revenue from Hong Kong projects increased by approximately HKD 14 million or 18.1% in 2022 due to improved construction progress[53]. - Revenue from Macau decreased by approximately HKD 14.3 million or 97.7% in 2022, attributed to cross-border restrictions and reduced bidding activities[54]. - The group's contract assets as of December 31, 2022, were approximately HKD 142.4 million, a slight decrease of 16.0% from the previous year due to a slowdown in the overall construction industry in Hong Kong[16]. - Trade receivables and warranty receivables amounted to approximately HKD 18.3 million, a decrease of 26.5% from the previous year due to an increase in the confirmation or certification of construction projects[16]. - The company's current ratio as of December 31, 2022, was approximately 1.9 times, down from 2.5 times in 2021[69]. - The debt-to-equity ratio increased to 65% as of December 31, 2022, compared to 59% in 2021[71]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2022[65]. Borrowings and Financial Strategy - The company reduced overdue bank borrowings to approximately HKD 36.6 million as of December 31, 2022, aiming to lower financial pressure and risk[10]. - The group's bank borrowings as of December 31, 2022, totaled approximately HKD 36.6 million, down from HKD 42.9 million in 2021, with all borrowings overdue[19]. - The company is actively seeking other financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[36]. - The company has repaid HKD 0.7 million of overdue borrowings since January 1, 2023[31]. - The company is in discussions with banks to extend overdue borrowings and waive rights arising from default events[32]. - The company issued HKD 20.0 million of redeemable convertible bonds on August 22, 2022, to raise additional funds[36]. Operational Challenges and Market Conditions - The global economic environment remains uncertain due to geopolitical tensions and rising construction costs, impacting the local property market[15]. - The ongoing impact of the COVID-19 pandemic has created uncertainty and volatility in the local property market and construction industry, affecting the group's performance significantly[27]. - The competitive landscape in the marble and granite supply market remains intense, with rising construction material and labor costs negatively impacting profitability[22]. - The company plans to enter the Chinese construction market in 2023, capitalizing on opportunities from the recovery of the real estate sector in mainland China[10]. - The overall delay of existing construction projects has improved since the end of 2021, as the pandemic situation showed signs of recovery[15]. - The company is actively participating in various tender activities in response to the market recovery[9]. Administrative and Operational Efficiency - The group's administrative expenses for the fiscal year were approximately HKD 22.6 million, a decrease of about HKD 2.7 million or 10.7% from HKD 25.3 million in 2021[16]. - Financial costs decreased from HKD 10.3 million to HKD 7.6 million for the year ended December 31, 2022, primarily due to the settlement of outstanding loans[58]. - The company has taken measures to accelerate customer certification, billing, and collection for completed projects[32]. - The company aims to maintain strong relationships with customers, subcontractors, and suppliers to enhance service quality and operational efficiency[25]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a sustainable development policy outlining its commitments to the environment, employees, value chain, and community[93]. - The company has engaged independent consultants to conduct a comprehensive materiality assessment, identifying 19 relevant environmental, social, and governance issues[103]. - The company plans to develop a more targeted environmental, social, and governance risk management framework to identify, assess, and manage significant risks related to its business and climate change[94]. - The company emphasizes a zero-tolerance policy towards corruption, providing 42 hours of anti-corruption training for board members and 18 hours for employees during the reporting period[108]. - The company has established a quality control management system to monitor procurement and manufacturing processes, ensuring products meet quality requirements and customer expectations[109]. - The company is committed to maintaining high levels of product and service quality management while safeguarding data privacy and intellectual property[109]. - The company has a strong focus on community investment and climate change initiatives, reflecting its commitment to corporate social responsibility[107]. Employee Management and Development - As of December 31, 2022, the company had 88 employees, with a turnover rate of 9.09%[122]. - 9.09% of employees received training during the reporting period, with an average training duration of 7.55 hours per employee[129]. - The company encourages employee participation in external training programs and certification courses to enhance competitiveness and expand its talent pool[129]. - The company has a transparent and fair recruitment process based on objective criteria such as work experience, education, skills, and abilities[121]. - The company conducts annual performance evaluations based on key performance indicators, with outstanding employees receiving promotion opportunities[129]. - The company prohibits any form of child labor and forced labor in its employment practices[121]. - The company has established a communication and complaint mechanism for employees to voice concerns regarding their rights and interests[124]. Corporate Governance - The board consists of 3 executive directors, 1 non-executive director, and 3 independent non-executive directors, with independent directors making up approximately 42.9% of the board[174]. - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are currently held by the same individual[168]. - The company aims to enhance gender diversity on the board, currently having one female director out of seven total members[182]. - The board has self-assessed its performance and believes all directors have dedicated sufficient time and attention to the company's affairs[173]. - The company is committed to continuous improvement of governance practices in line with the latest developments[170]. - The audit committee is composed of three independent non-executive directors, ensuring compliance with accounting standards and regulations[196]. - The company encourages shareholder participation in annual and special meetings, with the annual meeting held on June 28, 2022[195].