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].

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].