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].

Anchorstone Holdings Limited 基石控股有限公司 Anchorstone Holdings Limited 基石控股有限公司 Anchorstone Holdings Limited 基石控股有限公司 (Incorporated in the Cayman Islands with limited liability) Stock Code: 1592 2018 2018 ANNUAL REPORT 2018 年報 ANNUAL REPORT 年 報 （於開曼群島註冊成立的有限公司） 股份代號：1592 關於我們 基石控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）為香港實力雄厚的領先分包商，專為建築項目供應 及鋪砌雲石及花崗石。我們的主要附屬公司包括太平洋石材（香港）有限公司（「太平洋石材（香港）」）及及太平洋石 材有限公司（「太平洋石材」）。 本集團歷史可追溯至1991年12月雷雨潤先生（「雷先生」，本公司執行董事、主席兼行政總裁）與一名獨立第三方以 各自財物資源創立太平洋石材（香港）。自1995年起，本集團一直以「太平洋石材」品牌從事雲石及花崗石貿易業務 及供應及鋪砌雲 ...