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].

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].

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2022年12月31日 止 年 度 的 年 度 業 績 公 佈 基石控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至2022年12月31日 止 年 度 的 綜 合 業 績 連 同上年同期比較數字如下： 綜合損益及其他全面收益表 截至2022年12月31日止年度 2022年 2021年 附註 千港元 千港元 自客戶合約所獲收益 3 91,686 91,942 銷售成本 5 (76,751) (80,776) 毛利 14,935 11,166 ...

Financial Performance - For the six months ended June 30, 2022, Anchorstone Holdings Limited recorded revenue of approximately HKD 54.8 million, an increase of 6% compared to the same period last year[8]. - The overall gross profit margin improved to approximately 25.6% from 19.8% in the previous year, with gross profit increasing from approximately HKD 10.2 million to HKD 14.0 million, a rise of about 37.1%[15]. - The loss attributable to the owners of the company narrowed to approximately HKD 1.8 million from HKD 2.8 million in the same period last year, primarily due to increased gross profit from stone sales and other income[8]. - Revenue from customer contracts for the six months ended June 30, 2022, was HKD 54,757,000, an increase of 4.1% from HKD 51,633,000 in 2021[61]. - Gross profit for the same period was HKD 14,034,000, up 37.5% from HKD 10,233,000 in 2021[61]. - Operating profit for the six months ended June 30, 2022, was HKD 1,889,000, compared to a loss of HKD 32,000 in 2021[61]. - The group reported a loss before tax of HKD 1,836,000 for the six months ended June 30, 2022, compared to a loss of HKD 2,829,000 in the same period of 2021[115]. - Basic and diluted loss per share for the period was HKD 0.15, compared to HKD 0.23 in the previous year, reflecting a 34.8% improvement[61]. Expenses and Costs - Administrative expenses decreased by approximately HKD 0.8 million or 7.7% to about HKD 9.6 million, mainly due to reduced depreciation and legal costs[16]. - The net financial costs for the six months ended June 30, 2022, were HKD 3,725,000, an increase from HKD 2,797,000 in the previous year[110]. Cash Flow and Liquidity - The company reported a net cash outflow from operating activities of HKD 1,069,000 for the six months ended June 30, 2022, compared to HKD 15,453,000 in 2021[75]. - The company's cash and cash equivalents were approximately HKD 0.9 million as of June 30, 2022, a decrease from HKD 2.7 million as of December 31, 2021[27]. - The company's total bank borrowings amounted to approximately HKD 39.2 million, down from HKD 42.9 million as of December 31, 2021[28]. - The company has been unable to draw new loans from banks since November 20, 2020, due to overdue bank loans totaling HKD 39.2 million as of June 30, 2022[84]. - The company is actively seeking other financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[86]. - The board believes that the company will have sufficient working capital to meet its operational needs and financial obligations for at least the next twelve months[92]. Shareholder Information - The company’s major shareholder, Mr. Lei Yurun, holds 792,305,000 shares, representing 63.53% of the issued share capital[44]. - Mr. Lei Yurun is also the beneficial owner of 792,865,000 shares, accounting for 63.57% of the issued share capital[44]. - The company has a short position of 72,515,000 shares held by Mr. Lei Yurun, which is 5.81% of the issued share capital[45]. - The beneficial ownership of Mr. Lei Yurun includes an additional 560,000 shares, representing 0.044% of the issued share capital[45]. Corporate Governance - The company is committed to maintaining strict corporate governance and effective internal control measures[51]. - The company has two independent non-executive directors, which is below the minimum requirement of three as per listing rules[52]. - The audit committee consists of two independent non-executive directors and has reviewed the group’s accounting policies and financial reporting matters[54]. - The remuneration committee is responsible for recommending the remuneration policy for all directors and senior management[57]. - The nomination committee is tasked with reviewing the board's structure and composition regularly[58]. Market and Operational Outlook - The management anticipates strong demand for high-quality marble and granite products due to expected stability and growth in the Hong Kong property market[13]. - The company aims to restore operations by closely collaborating with consumers, suppliers, and subcontractors[13]. - The company has faced significant risks from the COVID-19 pandemic, which continues to impact its business operations[13]. - The company has taken measures to accelerate customer certification, billing, and collection for completed projects affected by the COVID-19 pandemic[91]. - The company is closely monitoring the impact of the COVID-19 pandemic on its existing and potential projects[91]. - The company has reached an agreement with relevant banks to repay all overdue balances by the end of the current fiscal year[88]. Revenue Sources - The increase in revenue was primarily driven by higher earnings from supply and paving services as well as stone sales[14]. - Revenue from supply and paving services for the six months ended June 30, 2022, was HKD 51,109,000, an increase of 2.4% from HKD 49,891,000 in the same period of 2021[4]. - Revenue from stone sales increased significantly to HKD 3,648,000, up 109.5% from HKD 1,742,000 in the previous year[4]. - Major customer A contributed HKD 25,329,000, a substantial increase from HKD 8,126,000 in the previous period, accounting for over 10% of total revenue[104]. - Major customer B's revenue rose to HKD 13,392,000 from HKD 6,813,000, also exceeding the 10% threshold of total revenue[104]. Assets and Liabilities - Total assets as of June 30, 2022, were HKD 273,057,000, slightly down from HKD 274,636,000 as of December 31, 2021[64]. - Total liabilities increased to HKD 191,871,000 from HKD 191,614,000 at the end of 2021[67]. - The company's debt-to-asset ratio was approximately 59% as of June 30, 2022, unchanged from December 31, 2021[29]. - The net current assets of the company were approximately HKD 159.2 million as of June 30, 2022, slightly down from HKD 160.9 million as of December 31, 2021[32]. - Trade receivables as of June 30, 2022, were HKD 6,874,000, down from HKD 11,849,000 at the end of 2021[121]. - Trade payables and warranty payables increased to HKD 46,224,000 as of June 30, 2022, from HKD 42,778,000 as of December 31, 2021[131]. - Total current assets, including insurance claims receivable and other receivables, decreased from HKD 1,301,000 as of December 31, 2021, to HKD 920,000 as of June 30, 2022[128]. - Inventory of finished goods, specifically marble and granite, decreased from HKD 72,364,000 as of December 31, 2021, to HKD 70,377,000 as of June 30, 2022[129]. Legal Matters - The company reported a legal claim of HKD 6,500,000 from a former subcontractor, which it is actively contesting[141].

Financial Performance - For the year ended December 31, 2021, the company recorded revenue of approximately HKD 91.9 million, a decrease of 46.0% compared to HKD 170.3 million in 2020[18]. - The gross profit for the year was HKD 11.2 million, down 41.4% from HKD 19.1 million in 2020[18]. - The company incurred a pre-tax loss of approximately HKD 46.7 million, an increase of 37.0% from a loss of HKD 34.1 million in 2020[19]. - The company recorded a net loss attributable to shareholders of approximately HKD 46.7 million for the year ended December 31, 2021, compared to a loss of approximately HKD 34.1 million in 2020[31]. - Revenue for the year was approximately HKD 91.9 million, a significant decrease of 46.0% from HKD 170.3 million in 2020, primarily due to delays in construction projects and a reduction in new tender activities[54]. - Revenue from Hong Kong projects decreased by approximately HKD 31.5 million or 29.0%, attributed to a weak economic environment and project delays caused by the COVID-19 pandemic[55]. - Revenue from Macau projects decreased by approximately HKD 46.9 million or 76.3%, despite less impact from the pandemic, due to cross-border restrictions affecting communication with project statuses[56]. - Gross profit decreased from approximately HKD 19.1 million to about HKD 11.2 million, a reduction of approximately HKD 7.9 million or 41.4%[57]. - Administrative expenses increased to approximately HKD 25.3 million, up about HKD 3.9 million or 18.2% from HKD 21.4 million in 2020, mainly due to increased wages and salaries[59]. Operational Challenges - The competitive landscape remains intense, leading to a decrease in the company's bid success rate and a reduction in revenue from stone supply and customer paving services[18]. - The company faced supply chain disruptions and labor shortages due to various quarantine policies, impacting the progress of existing construction projects[18]. - The ongoing COVID-19 pandemic has significantly impacted the company's operations, with project delays and a substantial decrease in the bid win rate[21]. - The competitive landscape for marble and granite supply and installation remains intense, with rising construction material and labor costs negatively affecting profit margins[22]. - The overall business environment in Hong Kong has deteriorated, affecting future tendering activities in the industry[22]. - The company has been unable to draw new borrowings from banks since November 20, 2020, and any further withdrawals require bank approval[34]. Financial Management - As of December 31, 2021, the company's current bank borrowings amounted to approximately HKD 42.9 million, down from HKD 158.8 million in 2020[31]. - The group has taken measures to alleviate liquidity pressure and improve its financial situation, including negotiating with banks to extend overdue loans and actively discussing repayment plans[35]. - As of December 31, 2021, the group obtained a loan of approximately HKD 80.6 million from executive directors, which is unsecured and repayable 12 months from the drawdown date at an annual interest rate of 5%[35]. - The group's current ratio and quick ratio for 2021 were 2.5 times and 1.8 times, respectively, indicating sufficient liquidity to meet financial obligations[39]. - The group is closely monitoring the impact of the COVID-19 pandemic on existing and potential projects, and has taken steps to expedite customer certification, billing, and collection for completed projects[39]. - The group has not received any formal repayment requests from banks despite overdue loans, and management believes that banks will not exercise their rights to demand immediate repayment[39]. - The group is actively seeking alternative financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[35]. - The company plans to improve liquidity and financial conditions by expediting project statuses and collection cycles, with bank borrowings reduced to approximately HKD 39.6 million[70]. Risk Management and Compliance - The audit committee agrees with management's view that the group can address uncertainties related to going concern issues[37]. - The company emphasizes the importance of sustainable development risk management to enhance business stability and growth amid current climate crises[94]. - The company has implemented a compliance management system to adhere to applicable laws and regulations, which is crucial for maintaining its reputation[117]. - The company has a zero-tolerance policy towards corruption and fraud, enhancing internal controls and employee awareness of anti-corruption laws[118]. - The company is committed to improving its internal control systems and regularly reviewing anti-corruption policies[140]. Environmental Impact - The total greenhouse gas emissions for the reporting period amounted to 30.99 tons of CO2 equivalent, representing a reduction of approximately 42% compared to 53.55 tons in 2020[145]. - Direct greenhouse gas emissions (Scope 1) decreased by 38.90% from 27.84 tons in 2020 to 17.01 tons in 2021[148]. - Indirect greenhouse gas emissions (Scope 2) decreased by 45.62% from 25.71 tons in 2020 to 13.98 tons in 2021[148]. - The density of total greenhouse gas emissions per employee decreased by 57.61%, from 2.43 tons in 2020 to 1.03 tons in 2021[148]. - The amount of non-hazardous waste generated surged from 0.93 tons in 2020 to 805.23 tons in 2021, primarily due to construction and demolition waste[153]. - The company plans to establish feasible targets to continuously improve waste management performance and reduce waste generation[155]. - The company aims to further reduce greenhouse gas emissions and set achievable reduction targets in the future[145]. Employee Management - The company emphasizes the importance of employee rights and welfare, ensuring a fair and diverse work environment[182]. - The company has implemented a transparent recruitment process to promote equal employment opportunities and prevent discrimination[180]. - As of December 31, 2021, the total number of employees in the company was 30, with a turnover rate of 43.33%[190]. - The employee turnover rate by gender was 38.10% for males and 55.56% for females[190]. - The percentage of employees receiving training during the reporting period was 73.33%, with an average training hours per employee of 4.25 hours[194]. - The company emphasizes continuous learning and has implemented various training programs, including onboarding and occupational training[191]. - The company encourages employees to participate in external training programs to improve their professional skills[191]. - The company plans to optimize training programs based on employee feedback to meet the needs of customers and society[191].

Financial Performance - For the six months ended June 30, 2021, the company recorded revenue of approximately HKD 51.6 million, a decrease of 47.6% compared to the same period last year[9]. - Revenue from customer contracts for the six months ended June 30, 2021, was HKD 51,633,000, a decrease of 47.5% compared to HKD 98,548,000 in 2020[56]. - Gross profit for the same period was HKD 10,233,000, down 24.5% from HKD 13,448,000 in 2020[56]. - The overall gross profit amount decreased by approximately HKD 3.2 million or 23.9% compared to the previous period[9]. - The net loss attributable to the company's owners narrowed to approximately HKD 2.8 million from approximately HKD 5.0 million in the same period last year[9]. - The company reported a loss attributable to shareholders of HKD 2,829,000 for the six months ended June 30, 2021, compared to a loss of HKD 5,016,000 for the same period in 2020, representing a 43% improvement in loss[118]. - Operating loss narrowed to HKD 32,000 from HKD 402,000 in the previous year, indicating improved operational efficiency[56]. - The basic and diluted loss per share decreased to HKD 0.23 for the six months ended June 30, 2021, from HKD 0.41 in 2020, indicating a 44% reduction in loss per share[118]. Liquidity and Financial Stability - As of June 30, 2021, the company's cash and cash equivalents were approximately HKD 2.9 million, a significant increase from HKD 0.2 million as of December 31, 2020[26]. - The current ratio as of June 30, 2021, was approximately 2.5 times, up from 1.6 times as of December 31, 2020, indicating improved liquidity[26]. - The total bank borrowings amounted to approximately HKD 78.7 million as of June 30, 2021, down from HKD 158.8 million as of December 31, 2020[27]. - The company's debt-to-asset ratio was approximately 46.5% as of June 30, 2021, a decrease from 50.0% as of December 31, 2020, reflecting improved financial stability[28]. - Current liabilities decreased to HKD 121,011,000 from HKD 206,419,000, indicating improved liquidity management[61]. - The company has taken measures to improve liquidity and financial conditions, including discussions with banks to expedite project statuses and receivables collection[25]. - The group has actively sought other financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[86]. Operational Challenges - The company faced significant delays in project progress due to the impact of the COVID-19 pandemic, affecting revenue and cash flow[11]. - The company plans to extend the execution timeline for major projects to 2022 due to the financial impact of the COVID-19 pandemic[41]. - The group is closely monitoring the impact of the COVID-19 pandemic on existing and potential projects, and is negotiating with clients for advance payments before project commencement[86]. Corporate Governance and Management - The company has adopted a strict corporate governance framework to enhance transparency and accountability to shareholders[49]. - The audit committee has reviewed the group's accounting policies and financial reporting matters, ensuring compliance with applicable accounting standards[51]. - The remuneration committee is responsible for recommending compensation policies for all directors and senior management[52]. Shareholder Information - Major shareholder, Pacific Stone Investment Limited, holds 823,035,000 shares, representing 65.99% of the company's issued share capital[47]. - Director Lei Yurun holds 823,595,000 shares, accounting for 66.03% of the company's issued share capital[43]. - The company did not declare any interim dividend for the six months ended June 30, 2021, in order to retain resources for future development[10]. Legal Matters - As of June 30, 2021, there are several legal cases involving personal injury claims against the company's subsidiaries[152]. - Two of the legal cases have entered legal proceedings, while the other two are still in preliminary stages[152]. - A former subcontractor has made a claim for HKD 6.5 million regarding payment for services provided[152]. - The company is actively contesting the claim but cannot reliably determine its legal liability[152]. - Based on available information and legal advice, the board believes the likelihood of the plaintiff successfully obtaining the claim is very low[152].

Financial Performance - For the year ended December 31, 2020, the group's gross profit decreased by approximately HKD 24.2 million or 55.9% to HKD 19.1 million from approximately HKD 43.3 million in 2019[15]. - The group recorded a loss of approximately HKD 34.1 million for the year, reflecting the challenges faced due to the COVID-19 pandemic[15]. - The group's revenue for the year ended December 31, 2020, was approximately HKD 170.3 million, a significant decrease of 47.5% compared to HKD 324.3 million in 2019[26]. - The group recorded a loss of approximately HKD 34.1 million for the year ended December 31, 2020, with total comprehensive income decreasing by about HKD 36.2 million[26]. - The company's liquid assets, including contract assets, receivables, deposits, and cash, amounted to approximately HKD 330.6 million, while short-term liabilities were only HKD 199.6 million[45]. - The company recorded a net loss attributable to equity holders of approximately HKD 34.1 million for the year ended December 31, 2020, compared to a net profit of HKD 2.1 million in 2019[40]. - The group's revenue in 2020 decreased by 47.5% compared to 2019, resulting in an operating loss of approximately HKD 25.7 million and a loss before tax of HKD 34.1 million[60]. - The gross profit margin decreased from approximately 13.4% in 2019 to 11.2% in 2020, primarily due to changes in project mix and rising overall project costs[83]. - Administrative expenses for 2020 were approximately HKD 21.5 million, a reduction of about 31.5% from HKD 31.3 million in 2019, mainly due to cost-cutting measures[84]. - The company did not recommend a final dividend for the year ended December 31, 2020, consistent with the previous year[96]. Economic Environment - The unemployment rate in Hong Kong rose from 6.6% in October-December 2020 to 7.0% in November 2020-January 2021, indicating a deteriorating business environment[16]. - The overall business environment in Hong Kong deteriorated significantly during the year, impacting the group's ongoing projects[28]. - The COVID-19 pandemic continues to pose significant risks to the group's operations, potentially affecting the construction industry's bidding activities in 2021[32]. - Management believes that the business operations will begin to recover as restrictions in Hong Kong and Macau are gradually eased due to the COVID-19 pandemic[47]. Operational Adjustments - The group has slowed down its business expansion plans due to the economic environment and is actively seeking to reduce costs and improve operational efficiency[15]. - The group has taken measures such as cost control and business plan adjustments to manage the impact of the COVID-19 pandemic[61]. - The company is actively taking measures to improve cash flow, including accelerating the collection cycle with clients and requiring sufficient deposits before new contracts commence[54][55]. - The company plans to implement a cash flow forecast and monitor working capital closely, expecting positive cash flow by the end of the fiscal year ending December 31, 2021[49]. - The company plans to accelerate project progress and improve the collection cycle of receivables to address delayed repayments to banks, with an expected repayment of approximately HKD 34.9 million[98]. Debt and Financing - As of December 31, 2020, several bank loans totaling approximately HKD 30.0 million were overdue due to construction project delays[27]. - The company has successfully negotiated with banks to extend overdue borrowings and has a repayment plan in place to settle HKD 34.9 million of overdue loans by March 31, 2021[46]. - The total bank borrowings amounted to approximately HKD 158.8 million as of December 31, 2020, compared to HKD 146.4 million on December 31, 2019[102]. - The group has communicated with banks regarding repayment plans for overdue borrowings totaling HKD 61.612 million as of the settlement date[103]. Environmental Commitment - The group has allocated resources to environmental measures and is committed to safeguarding the interests of employees, customers, and suppliers[22]. - The company is committed to sustainable development, integrating it into its business strategy, as highlighted in its environmental, social, and governance report[121]. - The company has implemented environmental policies to enhance sustainability and reduce waste, focusing on "source reduction" practices[140]. - The company encourages employees to adopt environmentally friendly construction methods to minimize waste and achieve long-term cost savings[140]. - The total greenhouse gas emissions for the year ended December 31, 2020, amounted to 53.55 tons CO2 equivalent, an increase from 50.47 tons in 2019, representing a 6.1% rise[151]. Employee Relations and Governance - The company has established comprehensive employment policies focusing on fair treatment, recruitment, compensation, and promotion, ensuring continuous improvement in employment standards[185]. - The company is committed to providing a safe and healthy work environment, with annual reviews of health and safety policies to enhance safety levels[191]. - The company recognizes the value of employee training and development, implementing training strategies that align with industry trends and market changes[196]. - The company strictly prohibits child labor and forced labor in its recruitment process, adhering to local laws and regulations[200].

Financial Performance - The company recorded revenue of approximately HKD 98.5 million for the six months ended June 30, 2020, a decrease of 57.0% compared to HKD 229.4 million for the same period last year[11]. - The overall gross profit margin remained at approximately 13.6%, but the absolute gross profit decreased by HKD 17.7 million or 56.8% from HKD 31.2 million in the first half of 2019 to HKD 13.4 million in the first half of 2020[11][18]. - The company incurred an operating loss of approximately HKD 0.4 million for the period, with a net loss attributable to shareholders of approximately HKD 5.0 million, a significant decrease of HKD 15.4 million or 148.5% compared to the same period last year[11][13]. - Revenue from customer contracts for the six months ended June 30, 2020, was HKD 98,548,000, a decrease of 57.0% compared to HKD 229,404,000 in 2019[72]. - Gross profit for the same period was HKD 13,448,000, down 56.9% from HKD 31,157,000 in 2019[72]. - The company reported a net loss attributable to owners of HKD 5,016,000 for the six months ended June 30, 2020, compared to a profit of HKD 10,343,000 in 2019[72]. - The company reported a basic and diluted loss per share of HKD 0.4 for the six months ended June 30, 2020, compared to earnings of HKD 0.9 per share in 2019[72]. Expenses and Costs - Administrative expenses slightly decreased by approximately HKD 0.9 million or 5.9% to about HKD 14.2 million, primarily due to a reduction in labor costs[19]. - Financial costs increased by HKD 0.7 million or 19.8% compared to the same period last year, mainly due to interest expenses from the issuance of bonds totaling HKD 16 million[21]. - Employee benefits expenses totaled HKD 7,692,000, down from HKD 8,978,000 in the previous year[125]. - The company incurred finance costs of HKD 4,417,000 for the period, up from HKD 3,688,000 in 2019[72]. Business Outlook and Strategy - The company plans to enter the Chinese marble and granite supply and distribution market, anticipating strong demand for quality products despite global market uncertainties[16]. - The board remains optimistic about the business outlook, noting that most projects have returned to normal operations as of the report date[16]. - The company is actively seeking new business opportunities despite the challenges posed by the COVID-19 pandemic and the US-China trade war[13]. - The potential acquisition of two related parties in China is ongoing, which would enable the company to effectively supply and distribute marble and granite products in the Chinese market[16]. Shareholder Information - No interim dividend was declared for the six months ended June 30, 2020, in order to retain resources for future development[12]. - The company has a total of 120,000,000 shares available for issuance under the share option plan, which accounts for 10% of the company's issued share capital[57]. - Mr. Lei Yu Run holds a total of 1,200,000 share options under the company's share option plan[58]. - The closing price of the company's shares on the date of exercising the share options was HKD 0.340 per share, while the exercise price was HKD 0.249 per share[58]. - As of June 30, 2020, the total number of shares held by Mr. Lei Yu Run, a director and major shareholder, is 845,135,000 shares, representing 70.42% of the company's issued share capital[47]. Financial Position - As of June 30, 2020, the group’s total bank borrowings amounted to approximately HKD 175.4 million, an increase from HKD 146.4 million as of December 31, 2019[30]. - The current ratio as of June 30, 2020, was approximately 1.76, down from 1.83 as of December 31, 2019[28]. - The group’s debt-to-equity ratio increased to approximately 48.3% as of June 30, 2020, compared to 41.1% as of December 31, 2019[31]. - The group’s cash and cash equivalents were approximately HKD 0.5 million as of June 30, 2020, down from HKD 2.9 million as of December 31, 2019[28]. - The net current assets as of June 30, 2020, were approximately HKD 149.1 million, slightly up from HKD 148.9 million as of December 31, 2019[32]. - Total assets as of June 30, 2020, were HKD 349,461,000, an increase from HKD 333,436,000 as of December 31, 2019[76]. - Current liabilities increased to HKD 196,088,000 as of June 30, 2020, compared to HKD 179,045,000 at the end of 2019[78]. - The company’s total equity decreased to HKD 147,100,000 as of June 30, 2020, from HKD 152,116,000 at the end of 2019[76]. Risk Management - The financial risk factors include market risk, credit risk, and liquidity risk, with no changes in risk management policies since year-end[108]. - The company has not utilized any derivative contracts to hedge against foreign exchange risks, as the majority of transactions are denominated in HKD[39]. Corporate Governance - The company has complied with the corporate governance code since its listing date, ensuring transparency and accountability to shareholders[62]. - The Audit Committee consists of three independent non-executive directors and has reviewed the accounting policies adopted by the group[64]. - The Remuneration Committee has been established to recommend remuneration policies for all directors and senior management[65]. - The Nomination Committee is responsible for reviewing the board's structure and composition regularly[69]. - The company has adopted the standard code for securities transactions by directors, confirming compliance with the trading standards[63]. Other Information - There were no significant acquisitions or disposals of subsidiaries and associates during the six months ended June 30, 2020[38]. - The company did not report any revenue from the Cayman Islands, with all operations primarily conducted in Hong Kong[115]. - The company adopted new accounting standards effective January 1, 2020, but these did not have a significant financial impact on the interim financial statements[102]. - The company has not early adopted any new standards that are not yet effective, which are expected to have no significant impact on financial performance[103]. - The company’s financial assets and liabilities' carrying amounts are similar to their fair values due to their short maturity or floating interest rates[109]. - Financial income from bank deposits increased to HKD 133,000 in 2020 from HKD 83,000 in 2019, representing a growth of 60.24%[128]. - The company has contingent liabilities related to construction contracts amounting to approximately HKD 1.5 million as of June 30, 2020[166]. - A former subcontractor has made a claim for HKD 6.5 million for services rendered, but the company believes the likelihood of the claimant succeeding is low[166]. - On August 6, 2020, the company issued 24,000,000 shares at HKD 0.249 per share following the exercise of share options by directors[167]. - The closing price of the company's shares on the issuance date was HKD 0.34 per share[167].

Financial Performance - The company recorded revenue of approximately HKD 324.3 million for the year ended December 31, 2019, an increase of 8.4% compared to HKD 299.1 million in 2018[16]. - The profit attributable to equity holders was approximately HKD 2.1 million, a significant decrease of 89.8% from the previous year[16]. - The overall gross profit margin declined from approximately 23.3% in 2018 to about 13.4% in 2019, primarily due to a low-margin major supply and paving project[16]. - Gross profit for 2019 fell by approximately HKD 26.5 million or 37.9% to about HKD 43.3 million from HKD 69.8 million in 2018[38]. - The total profit and comprehensive income for the year ended December 31, 2019, decreased by approximately HKD 18.4 million or 89.8% to about HKD 2.1 million from approximately HKD 20.5 million in 2018[38]. - Basic earnings per share for the year ended December 31, 2019, were approximately HKD 0.17, a significant decrease from HKD 1.96 in 2018, reflecting the drop in profit attributable to equity holders[98]. - The effective tax rate increased significantly to approximately 55.4% for the year ended December 31, 2019, compared to 24.5% for the year ended December 31, 2018, due to an increase in non-deductible expenses[96]. - The company's current ratio decreased to approximately 1.8 times as of December 31, 2019, down from 2.1 times as of December 31, 2018, indicating a decline in liquidity[105]. - Total bank borrowings increased to approximately HKD 146.4 million as of December 31, 2019, up from HKD 124.1 million as of December 31, 2018, reflecting increased financing needs[106]. - The company's total current assets decreased to approximately HKD 148.9 million as of December 31, 2019, down from HKD 157.7 million as of December 31, 2018, primarily due to increased bank borrowings for expansion projects[111]. - The debt-to-equity ratio rose to 41% as of December 31, 2019, compared to 33% as of December 31, 2018, indicating a higher level of financial leverage[110]. - The company did not recommend a final dividend for the year ended December 31, 2019, compared to a dividend of HKD 0.01 per share totaling HKD 12 million in 2018[102]. - Cash and cash equivalents decreased significantly to approximately HKD 2.9 million as of December 31, 2019, down from HKD 98 million as of December 31, 2018, primarily due to increased pledged bank deposits for additional financing[105]. Business Environment and Strategy - The company faced a challenging business environment starting in the second half of 2019, influenced by increasing political risks and economic downturn in Hong Kong[21]. - The company is optimistic about the demand for high-quality marble and granite products despite global uncertainties[21]. - The company has begun developing stone and marble trading businesses in new markets, including the United States, although U.S.-China trade disputes have impacted sales[22]. - The company actively pursued two major stone sales projects in the last quarter of 2019, with significant payments made for these new projects[17]. - The company anticipates that the performance will decline starting in the second half of 2019, prompting a focus on developing supply and paving businesses[17]. - The company is exploring other business opportunities while continuing to develop its core operations[15]. - The group plans to expand its stone supply business globally and is actively seeking to broaden the scope of all supply and paving projects[28]. - The group anticipates stable growth trends in China, Hong Kong, and Macau, leading to continued strong demand for high-quality marble and granite products[28]. - The company remains confident in future business growth in Hong Kong, driven by increasing demand for high-quality marble and other construction materials[44]. - The company has established a network with stone suppliers and subcontractors, continuously monitoring and evaluating quality standards, pricing, and performance[45]. Project Delays and Challenges - The company has experienced delays in several public and private construction projects due to funding issues and increased costs of construction materials and labor[21]. - The group faced delays in project progress due to increased political risks, local economic weakness, and uncertainties in the local property market[40]. - Approximately HKD 74.4 million in revenue from two major stone sales projects was delayed for recognition until 2020 due to quality inspection issues[40]. - The impact of COVID-19 control measures has delayed project progress but has not significantly affected the company's financial position[57]. - The company terminated a potential major transaction due to travel restrictions and public health measures related to the COVID-19 pandemic, which hindered due diligence on the target group[67]. - The company faced increased legal and professional fees related to the terminated acquisition transaction, contributing to the decline in overall performance[80]. Environmental, Social, and Governance (ESG) Initiatives - The company established an Environmental, Social, and Governance (ESG) task force to collect relevant data and prepare ESG reports, with full-time staff dedicated to this effort[126]. - The ESG report covers the company's business activities in Hong Kong, which is the primary source of revenue, and includes key performance indicators related to environmental and social policies[127]. - The report is prepared in accordance with the Hong Kong Stock Exchange's ESG reporting guidelines, ensuring compliance with applicable regulations[128]. - The company confirmed that it has established appropriate and effective management policies and internal control systems regarding ESG matters for the year ending December 31, 2019[142]. - The company has implemented environmental policies to enhance governance practices and mitigate operational impacts on the environment, including compliance with relevant environmental laws[146]. - The company encourages employees to adopt environmentally friendly construction methods and planning to minimize waste and achieve long-term cost savings[146]. - There were no significant violations of local environmental laws related to emissions, wastewater discharge, or waste generation during the reporting period[146]. - The company emphasizes the importance of stakeholder engagement and maintains close communication with shareholders, customers, employees, suppliers, and the public[135]. - The company aims to continuously improve its ESG performance and create greater value for the broader community[135]. Resource Management and Efficiency - The company has a waste management practice that adopts the concept of "source reduction," encouraging employees to consider environmental factors before printing documents[146]. - Total greenhouse gas emissions decreased from 54.69 tons CO2 equivalent in 2018 to 50.47 tons in 2019, representing a reduction of approximately 7.5%[159]. - Direct greenhouse gas emissions from gasoline consumption (Scope 1) decreased from 28.02 tons in 2018 to 24.26 tons in 2019, a reduction of about 13.1%[159]. - Indirect greenhouse gas emissions from purchased electricity (Scope 2) slightly decreased from 26.67 tons in 2018 to 26.21 tons in 2019, a reduction of approximately 1.7%[159]. - The total greenhouse gas emissions density increased slightly from 1.71 tons CO2 equivalent per employee in 2018 to 1.74 tons in 2019[159]. - The total paper waste generated decreased from 354,551 sheets in 2018 to 345,155 sheets in 2019, a reduction of about 2.5%[171]. - The density of paper waste per employee increased from 11,080 sheets in 2018 to 11,901 sheets in 2019[171]. - The company has implemented energy-saving measures, including the use of LED lights and energy-efficient appliances, to reduce electricity consumption[177]. - Employees are encouraged to adopt environmentally friendly practices, such as using double-sided printing and recycling paper[167]. - The company has established guidelines for the management and disposal of hazardous waste, although no hazardous waste was generated during the year[165]. - The company aims to improve resource efficiency and reduce unnecessary material usage through various policies and procedures[171]. - Total energy consumption decreased due to reduced travel frequency, resulting in a gasoline consumption of 8,959 liters for the year ending December 31, 2019, down from 10,533 liters in 2018, representing a reduction of approximately 18.7%[182]. - Electricity consumption remained stable at 33,182 kWh for the year ending December 31, 2019, compared to 33,754 kWh in 2018, with an increase in density to 1,144.21 kWh per employee due to a slight decrease in employee numbers[182]. - Gasoline consumption for the year ending December 31, 2019, was equivalent to approximately 83,550.33 kWh, down from 98,229.23 kWh in 2018, indicating a reduction of about 15%[182]. - The company emphasizes the importance of minimizing negative environmental impacts and is committed to sustainable development, aiming to create long-term value for the community and stakeholders[190]. - The company has implemented best practices to reduce natural resource consumption and regularly assesses environmental risks to ensure compliance with relevant laws and regulations[190]. Human Resources and Employee Engagement - The company has 29 full-time employees as of December 31, 2019, and focuses on attracting and retaining qualified personnel[60]. - Employee costs totaled approximately HKD 14.4 million for the year ended December 31, 2019, consistent with the previous year[60]. - The company has established transparent recruitment processes based on job suitability and potential alignment with current and future needs, ensuring fair treatment of employees and applicants[197]. - Performance evaluations are conducted annually to determine promotions and salary adjustments based on objective performance indicators[197]. - Various communication channels have been established to maintain open communication with employees, including recommendation emails and employee satisfaction surveys[198].

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of approximately HKD 229.4 million, a 143% increase compared to HKD 94.6 million in the same period last year[13][24]. - The gross profit increased by HKD 4.5 million or 17%, reaching HKD 31.2 million, despite a decrease in gross margin to approximately 13.6% from 28.2% in the previous year[15][26]. - The operating profit surged to HKD 16.2 million, up 143% from HKD 6.6 million in the prior year[16][24]. - The total comprehensive income attributable to owners of the company for the period was HKD 10.3 million, a significant increase of 351% from HKD 2.3 million in the same period last year[17][26]. - Basic and diluted earnings per share increased to HKD 0.9, compared to HKD 0.3 in the previous year[18][26]. - The company recorded a significant revenue increase of approximately HKD 134.8 million or 143% for the six months ended June 30, 2019, compared to the same period last year[34]. - Revenue from customer contracts for the six months ended June 30, 2019, was HKD 229,404,000, a significant increase of 142.5% compared to HKD 94,598,000 in 2018[113]. - Gross profit for the same period was HKD 31,157,000, up from HKD 26,668,000, reflecting a gross margin improvement[113]. - Operating profit increased to HKD 16,154,000, compared to HKD 6,615,000 in the previous year, marking a growth of 143.5%[113]. - Profit attributable to owners of the company for the period was HKD 10,343,000, a substantial rise from HKD 2,295,000 in 2018, representing an increase of 351.5%[113]. - Basic and diluted earnings per share for the period were HKD 0.9, compared to HKD 0.3 in the previous year, indicating a 200% increase[113]. Assets and Liabilities - The total assets as of June 30, 2019, were HKD 346.7 million, an increase from HKD 309.3 million as of December 31, 2018[20][24]. - The bank borrowings increased to HKD 146.6 million from HKD 124.1 million in the previous year, reflecting the company's expansion efforts[20][24]. - The current ratio as of June 30, 2019, was approximately 1.8 times, compared to 2.1 times as of December 31, 2018[50]. - The company's net current assets increased to approximately HKD 166.3 million as of June 30, 2019, from HKD 157.7 million as of December 31, 2018[55]. - Total liabilities increased to HKD 189,138 thousand as of June 30, 2019, compared to HKD 150,135 thousand as of December 31, 2018, representing a 26% increase[121]. - Current liabilities totaled HKD 185,619 thousand as of June 30, 2019, up from HKD 150,135 thousand, indicating a 24% increase[121]. - The company's total equity and liabilities reached HKD 346,676 thousand as of June 30, 2019, compared to HKD 309,330 thousand at the end of 2018, reflecting a 12% growth[121]. Cash Flow and Financing - The net cash flow from operating activities was a negative HKD 15,632 thousand for the six months ended June 30, 2019, compared to a positive HKD 3,911 thousand in the same period of 2018[131]. - The company incurred a net cash outflow from financing activities of HKD 10,404 thousand for the six months ended June 30, 2019, compared to an outflow of HKD 76,550 thousand in the same period of 2018[131]. - Cash and cash equivalents decreased to HKD 8,591 thousand as of June 30, 2019, from HKD 10,843 thousand at the end of 2018, a reduction of 21%[131]. - The company’s bank borrowings increased to HKD 146,568 thousand as of June 30, 2019, compared to HKD 124,136 thousand at the end of 2018, marking an increase of 18%[121]. Operational Highlights - The company secured multiple new contracts during the period, contributing to the revenue growth despite local economic challenges[24][32]. - The increase in revenue is attributed to new contracts for the supply and installation of marble products in Hong Kong and Macau[185]. - Major customer A contributed HKD 80,281,000 to the revenue, while customer B and customer C contributed HKD 37,363,000 and HKD 39,890,000 respectively, indicating a strong reliance on key clients[184]. Corporate Governance and Compliance - The company has adhered to the corporate governance code since its listing date, ensuring effective internal controls and transparency to shareholders[88]. - All directors confirmed compliance with the trading standards set out in the standard code as of June 30, 2019[89]. Future Outlook and Plans - The company did not declare any interim dividend for the six months ended June 30, 2019, maintaining resources for future development[28]. - The company plans to use 79.5% of the net proceeds (approximately HKD 58.2 million) for startup funding of potential projects[70]. - The company is in discussions to acquire shares in a target company involved in the supply and installation of fixtures and furniture, with terms still under negotiation[75]. - The company expects that the new accounting standards will not have a significant impact on its financial performance and position upon their adoption[150]. Financial Risks - The financial risks faced by the company include market risks (currency, interest rate, and price risks), credit risk, and liquidity risk[170]. - The company's financial assets and liabilities' carrying amounts are approximately equal to their fair values due to their short maturities or floating interest rates[171].