Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 162,597,000, an increase of 4.3% compared to HKD 155,276,000 in 2022[1] - Gross profit decreased to HKD 11,352,000, down 28.5% from HKD 15,855,000 in the same period last year[1] - Profit before tax for the period was HKD 3,012,000, a decline of 59.9% from HKD 7,501,000 in 2022[1] - Basic earnings per share decreased to HKD 0.20, down from HKD 0.49 in the previous year, representing a 59.2% decline[1] - Total comprehensive income for the six months ended June 30, 2023, was approximately HKD 3.0 million, down from approximately HKD 7.5 million for the same period in 2022, resulting in a net profit margin of about 1.9% compared to 4.8%[43] Cash Flow and Assets - Cash generated from operating activities was HKD 42,413,000, compared to a cash outflow of HKD 11,230,000 in the same period last year[6] - Total assets decreased to HKD 244,233,000 from HKD 279,763,000 at the end of 2022, reflecting a decline of 12.7%[3] - The net cash and cash equivalents at the end of the period were HKD 17,289,000, down from HKD 33,079,000 in the previous year[6] - The current ratio improved to approximately 2.2 times as of June 30, 2023, compared to approximately 1.9 times as of December 31, 2022[45] - The debt-to-equity ratio was zero as of June 30, 2023, down from 6.8% as of December 31, 2022[46] Liabilities and Equity - Current liabilities decreased to HKD 111,775,000 from HKD 148,686,000, a reduction of 25%[3] - The company reported a total equity of HKD 149,167,000 as of June 30, 2023, an increase from HKD 146,155,000 at the end of 2022[3] - The total liabilities, including trade payables, decreased to HKD 111,775,000 as of June 30, 2023, from HKD 137,526,000 at the end of 2022, a reduction of 18.7%[28][29] Employee Costs - The total employee costs increased to HKD 28,710,000 in 2023 from HKD 25,633,000 in 2022, marking an increase of 8.1%[18] - Employee costs for the six months ended June 30, 2023, were approximately HKD 28.7 million, compared to HKD 25.6 million for the same period in 2022, representing an increase of about 12.1%[57] - As of June 30, 2023, the group employed a total of 127 employees, down from 139 employees as of December 31, 2022[57] Segment Performance - The segment performance for building services engineering showed a profit of HKD 9,483,000, down 29.0% from HKD 13,333,000 in 2022[16][17] - Cost of sales rose from approximately HKD 139.4 million to approximately HKD 151.2 million, an increase of about 8.5%, primarily due to the commencement of several large projects awarded last year[40] - Gross profit decreased from approximately HKD 15.9 million to approximately HKD 11.4 million, a decline of about 28.4%, with a gross profit margin dropping from 10.2% to 7.0%[41] Corporate Governance and Management - The company has adhered to the corporate governance code, except for the separation of the roles of Chairman and CEO, which is currently held by the same individual[77] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the relevant period[84] - The company will review the necessity of appointing a suitable candidate for the CEO role if required in the future[77] Shareholder Information - The company repurchased a total of 280,000 shares in July 2023 at a total cost of approximately HKD 16,800, reducing the total issued shares to 1,529,720,000[74] - As of June 30, 2023, Mr. Wong held 653 million shares, representing 42.68% of the company, while Ms. So held 1,037.49 million shares, representing 67.81%[64] - The company did not declare any interim dividends for the relevant period[79] Future Plans and Developments - The company plans to undertake larger projects and expand its service scope by applying for additional licenses and hiring qualified staff[37] - The company has not disclosed any new product developments or market expansion strategies during this reporting period[1] - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the reporting period[55] Financial Management - The company maintained a prudent financial management strategy, ensuring a stable liquidity position throughout the reporting period[48] - The company utilized its financial resources effectively by repurchasing shares, as authorized by shareholders at the annual general meeting[74] - The company has not made any purchases, sales, or redemptions of its listed securities during the relevant period, except for the aforementioned share repurchase[74]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本 公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確 表示概不會就因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致之任何損失承擔任何責任。 Lap Kei Engineering (Holdings) Limited 立 基 工 程 （ 控 股 ） 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1690） 截 至2023年6月30日 止 六 個 月 之 中 期 業 績 公 告 立基工程（控股）有限公司（「本公司」，及其附屬公司，統稱「本集團」）董事 （「董 事」）會（「董 事 會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司 截 至2023年6月30日 止 六 個 月 的 未 經 審 核 簡 明 綜 合 業 績。載 有 本 公 司2023年 中 期 報 告 全 文 的 本公告符合香港聯合交易所有限公司證券上市規則內有關中期業績初步 公告附載資料的相關規定。本公司截至2023年6月30日止六個月的中期報 告 將 適 時 寄 發 予 本 公 司 股 東，並 上 載 至 聯 交 所 網 站 www.hkex ...

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告之內容 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 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 Lap Kei Engineering (Holdings) Limited 立 基 工 程 （ 控 股 ） 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1690） 截至2022年12月31日止年度之 全年業績公告 年度業績 立 基 工 程（控 股）有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 公 佈 本公司及其附屬公司（統稱「本集團」或「我們」）截至2022年12月31日止年度 （「本 年 度」）的 經 審 核 綜 合 財 務 資 料 連 同 截 至2021年12月31日 止 相 應 年 度 的比較數字。下文所載財務資料已獲董事會批准。 摘要 截至12月31日止年度 2022年 2021年 千港元 千港元 變動% 收益 401,922 261,378 53.8% ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 155,276,000, representing an increase of 77.1% compared to HKD 87,621,000 in the same period of 2021[4] - Gross profit for the same period was HKD 15,855,000, up 180.5% from HKD 5,654,000 in 2021[4] - The company reported a profit before tax of HKD 7,501,000, compared to a loss of HKD 3,057,000 in the previous year[4] - Basic earnings per share for the period was HKD 0.49, a significant improvement from a loss of HKD 0.22 per share in 2021[4] - The group reported revenue of HKD 155,276,000 for the six months ended June 30, 2022, representing a significant increase of 77% compared to HKD 87,621,000 for the same period in 2021[24] - The revenue from building services engineering was HKD 146,078,000, up from HKD 78,891,000, indicating an increase of 85% year-over-year[24] - The group achieved a profit before tax of HKD 7,501,000 for the six months ended June 30, 2022, compared to a loss of HKD 3,057,000 in the same period of 2021[34] - Basic earnings per share for the six months ended June 30, 2022, were HKD 4.90, compared to a loss per share of HKD 2.20 for the same period in 2021[34] - The company turned a profit with a total comprehensive income of approximately HKD 7.5 million for the six months ended June 30, 2022, compared to a loss of approximately HKD 3.1 million for the same period in 2021[63] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 209,500,000, slightly up from HKD 205,418,000 as of December 31, 2021[6] - Total assets as of June 30, 2022, were approximately HKD 224.0 million, up from approximately HKD 218.2 million as of December 31, 2021[64] - Total liabilities were approximately HKD 81.9 million as of June 30, 2022, compared to approximately HKD 83.5 million as of December 31, 2021[64] - The company’s net assets increased to HKD 142,158,000 from HKD 134,657,000 at the end of 2021[6] Receivables and Cash Flow - Trade receivables and other receivables decreased to HKD 53,874,000 from HKD 68,165,000 at the end of 2021[6] - The net trade receivables as of June 30, 2022, amounted to HKD 37,365,000, compared to HKD 54,854,000 as of December 31, 2021[40] - Cash and cash equivalents decreased to HKD 33,079,000 from HKD 46,879,000 at the end of 2021[6] - The aging analysis of trade receivables shows that HKD 23,413,000 is within 30 days, indicating a healthy collection period[42] Expenses - Administrative expenses remained relatively stable at HKD 9,497,000 compared to HKD 9,395,000 in the previous year[4] - The total employee costs for the period were HKD 25,633,000, an increase from HKD 21,006,000 in the previous year[29] - Employee costs for the six months ended June 30, 2022, were approximately HKD 25.6 million, an increase from HKD 21.0 million for the same period in 2021[81] Capital Expenditures and Investments - The group incurred capital expenditures of approximately HKD 2,568,000 for property, plant, and equipment during the period, compared to HKD 2,278,000 for the same period in 2021[36] - The group did not have any significant investments or capital asset plans as of June 30, 2022[76] Corporate Governance and Compliance - The company has complied with the corporate governance code during the relevant period, except for the separation of roles between the Chairman and CEO[105] - The audit committee was established on September 10, 2015, to review and monitor the group's financial reporting procedures, internal controls, and risk management systems[114] - The unaudited condensed consolidated financial statements for the relevant period have been reviewed by the audit committee and comply with applicable accounting standards and listing rules[116] Market Conditions and Strategy - The company faced increased competition in the construction market due to the negative impact of the COVID-19 pandemic and delays in bidding processes[54] - Management's discussion highlighted the importance of maintaining market share by adjusting contract prices in response to competitive pressures[54] - The company plans to undertake larger projects and expand its service offerings by obtaining additional licenses and hiring qualified personnel[55] Shareholder Information - The total issued ordinary shares were 1,530,000,000, with a total issued capital of HKD 15.3 million as of June 30, 2022[74] - As of June 30, 2022, Mr. Huang holds 653,000,000 shares, representing 42.68% of the company's equity[92] - Ms. Su holds 992,280,000 shares, accounting for 64.86% of the company's equity[92] - The company has not declared any interim dividends for the relevant period[109] - No share options have been granted since the adoption of the share option scheme on September 10, 2015, and there are no unexercised options as of June 30, 2022[112] Financial Ratios - As of June 30, 2022, the current ratio was approximately 2.6 times, compared to 2.5 times on December 31, 2021[65] - The debt-to-equity ratio was zero as of June 30, 2022, consistent with zero on December 31, 2021[68] - The group obtained performance guarantees from banks amounting to approximately HKD 46.6 million as of June 30, 2022, up from HKD 25.1 million on December 31, 2021[65] - The group had unutilized bank financing of HKD 46.8 million as of June 30, 2022, compared to HKD 22.3 million on December 31, 2021[70]

Financial Performance - Total revenue increased by approximately 97.6% from about HKD 132.3 million for the year ended December 31, 2020, to about HKD 261.4 million for the year ended December 31, 2021[10]. - The company turned a profit with a total comprehensive income of approximately HKD 10.7 million for the year ended December 31, 2021, compared to a loss of about HKD 1.8 million for the previous year[10]. - Gross profit for the year was approximately HKD 27.2 million, resulting in a gross profit margin of about 10.4%, up from 6.2% in the previous year[21]. - The company reported a turnaround from a loss of approximately HKD 1.8 million in the previous year to a profit of approximately HKD 10.7 million for the current year, representing an improvement driven by a revenue increase of 97.6%[26]. - The net profit margin for the current year was approximately 4.1%, compared to a net loss margin of approximately 1.3% for the year ended December 31, 2020[26]. Project and Contract Information - The number of projects on hand as of December 31, 2021, was 27, with an unpaid total contract value of approximately HKD 705.8 million[15]. - The average contract value increased compared to the previous year, contributing to the overall revenue growth[16]. - The increase in sales costs was about 88.7%, rising from approximately HKD 124.1 million to about HKD 234.2 million, attributed to more projects and larger contract sizes[20]. Expenses and Costs - Administrative expenses increased by approximately 13.7% to about HKD 17.4 million, primarily due to increased employee salaries and discretionary bonuses[22]. - Other income decreased significantly by about 79.6% to approximately HKD 1.0 million, mainly due to the absence of a one-off subsidy received in the previous year[23]. - Employee costs for the year were approximately HKD 51.1 million, an increase from HKD 38.5 million in 2020, with a total of 123 employees as of December 31, 2021[46]. Assets and Liabilities - Total assets as of December 31, 2021, were approximately HKD 218.2 million, up from HKD 157.3 million in 2020, while total liabilities and equity were approximately HKD 83.5 million and HKD 134.7 million, respectively[27]. - The company maintained a current ratio of approximately 2.5 times as of December 31, 2021, down from 3.3 times in 2020[27]. - The company had no interest-bearing loans or borrowings as of December 31, 2021, consistent with the previous year[27]. Capital and Investments - The company issued 200 million shares at a price of HKD 0.061 per share, raising approximately HKD 12.2 million in total proceeds, with a net amount of approximately HKD 11.9 million after expenses[38]. - The company has invested approximately HKD 32.1 million in new construction projects as of December 31, 2021[74]. - Approximately HKD 4.4 million was spent on recruiting experienced staff in 2021[77]. Corporate Governance - The company emphasizes good corporate governance to enhance accountability and transparency, aligning with the corporate governance code[132]. - The management team includes professionals with over 20 years of experience in accounting, auditing, and compliance matters[127]. - The company has appointed independent non-executive directors with significant experience in the construction and investment sectors[121]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a strong independent element[138]. - The company has established a board diversity policy to enhance competitive advantage and good corporate governance, focusing on various diversity aspects such as gender, age, and professional background[154]. Risk Management - The group employs a three-tier risk management approach to identify, assess, mitigate, and respond to risks[200]. - Business units are responsible for identifying, assessing, and monitoring risks associated with their operations as the first line of defense[200]. - Management defines rules and provides technical support as the second line of defense, ensuring risks remain within acceptable limits[200]. - The audit committee acts as the final line of defense, ensuring the effectiveness of the first and second lines through continuous checks and monitoring[200]. Future Outlook - The company expects ongoing impacts from the COVID-19 pandemic but maintains a positive outlook for 2022, focusing on core business areas[11]. - The company plans to continue developing its core business in building services engineering and maintenance[14].

Lap Kei Engineering (Holdings) Limited 立基工程 (控股) 有限公司 (於開曼群島註冊成立的有限公司) 股份代號：1690 中期報告 中期業績 立基工程(控股)有限公司(「本公司」,速同其附屬公司統稱「本集團」)董事會(「釐 事會 J)欣然公佈本集團截至2021年6月30日止六個月(「相關期間」) 的未經審核 簡明綜合業績,連同2020年相應比較數字如下： 未經審核簡明綜合損益及其他全面收益表 截至2021年6月30日止六個月 截至6月30日止六個月 | --- | --- | --- | --- | |------------------------|-------|------------|------------| | | | 2021 年 | 2020年 | | | | 千港元 | 千港元 | | | 附註 | (未經審核) | (未經審核) | | 收錄 | 3 | 87,621 | 65,925 | | 銷售成本 | | (81,967) | (59,196) | | 毛利 | | 5,654 | 6,729 | | 其他收入(虧損) | | 684 | (1 ...

Lap Kei Engineering (Holdings) Limited 立基工程 (控股) 有限公司 (於関曼群島註冊成立的有限公司) 股份代號 : 1690 年報 目 錄 公司資料2 主席報告3 管理層討論及分析4 董事及高級管理人員履歷 13 企業管治報告 17 環境、社會及管治報告 32 董事會報告 39 獨立核數師報告 48 綜合損益及其他全面收益表 54 綜合財務狀況表 55 綜合權益變動表 56 綜合現金流量表 57 綜合財務報表附註 58 財務概要 114 財務概要 114 PQ Box 2681 Grand Cayman KY1-1111 Cayman Islands | --- | --- | |----------------------------------------------------------|--------------------------------------------------------------------| | | | | 董事會 | 總辦事處及香港主要營業地點 | | 執行董事： 黃镜光先生 | 香港 九龍灣 | | 蘇女好女士 | 臨興街1 ...

Lap Kei Engineering (Holdings) Limited 立基工程(控股)有限公司 (於爾曼群島註冊成立的有限公司) 股份代號：1690 1000 88 中期報告 中期業績 立基工程(控股)有限公司(「本公司」)速同其附屬公司(統稱「本集團」)董事會(「董 事會 J)欣然公佈本集團截至2020年 6 月 30 日止六個月 (「相關期間」) 的未經審核 簡明綜合業績,連同2019年相應比較數字如下： 未經審核簡明綜合損益及其他全面收益表 截至2020年6月30日止六個月 | --- | --- | --- | --- | |------------------------|-------|-------------------------------|------------| | | | 截至6月30日止六個月 \n2020 年 | 2019年 | | | | 千港元 | 千港元 | | | 附註 | (未經審核) | (未經審核) | | 收益 | 3 | 65,925 | 89,872 | | 銷售成本 | | (59,196) | (98,504) | | 毛利(毛損) | | 6, ...

Lap Kei Engineering (Holdings) Limited 立基工程(控股)有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 1690 ATITS 000000 00 10000 HH 年報 公司資料2 主席報告3 管理層討論及分析4 董事及高級管理人員履歷 15 企業管治報告 19 環境、社會及管治報告 34 目 錄 | --- | |-------------------------------| | | | 董 事 會 報 告 | | 獨 立 核 數 師 報 告 | | 綜 合 損 益 及 其 他 全 面 收 | | 綜 合 財 務 狀 況 表 | | 綜 合 權 益 變 動 表 | | 綜 合 現 金 流 量 表 | | 綜 合 財 務 報 表 附 註 | | 財 務 概 要 | | | 41 50 益表 57 58 59 60 61 114 HH Hutchins Drive PQ Box 2681 Grand Cayman KY1-1111 Cayman Islands | --- | --- | |------------------------------------ ...

[Interim Results](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2019, the Group transitioned from profit to loss, primarily due to a significant decrease in revenue and the incurrence of a gross loss, resulting in a loss of HKD 17,186 thousand for the period, compared to a profit of HKD 16,765 thousand in the prior year period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2019 (HKD thousands) | 2018 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 89,872 | 149,451 | | Cost of Sales | (98,504) | (120,948) | | Gross (Loss) Profit | (8,632) | 28,503 | | Other Income | 836 | 603 | | Administrative Expenses | (9,297) | (8,807) | | Finance Costs | (93) | (180) | | (Loss) Profit Before Tax | (17,186) | 20,119 | | Income Tax Expense | - | (3,354) | | Total (Loss) Profit and Comprehensive (Loss) Income for the Period | (17,186) | 16,765 | | Basic (Loss) Earnings Per Share (HK cents) | (1.33) | 1.31 | - Revenue for the period significantly decreased by **39.9% year-on-year**, from HKD 149,451 thousand to HKD 89,872 thousand[3](index=3&type=chunk) - The company shifted from a gross profit of **HKD 28,503 thousand** in the prior year period to a gross loss of **HKD 8,632 thousand** in the current period[3](index=3&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2019, the Group's total assets and total liabilities both decreased, with a corresponding reduction in net current assets and net assets, but the current ratio improved Condensed Consolidated Statement of Financial Position (As of June 30, 2019) | Indicator | June 30, 2019 (HKD thousands) | December 31, 2018 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 9,286 | 2,363 | | Current Assets | 181,927 | 221,324 | | Current Liabilities | 62,642 | 85,395 | | Net Current Assets | 119,285 | 135,929 | | Total Assets Less Current Liabilities | 128,571 | 138,292 | | Non-current Liabilities | 199 | 199 | | Net Assets | 128,372 | 138,093 | | Share Capital | 13,300 | 12,800 | | Reserves | 115,072 | 125,293 | | Total | 128,372 | 138,093 | - Non-current assets significantly increased, primarily due to the acquisition of investment properties[6](index=6&type=chunk)[48](index=48&type=chunk) - Net current assets decreased from **HKD 135,929 thousand** as of December 31, 2018, to **HKD 119,285 thousand** as of June 30, 2019[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2019, the Group's total equity changed due to the loss for the period and the issuance of new shares, with share capital increasing by HKD 500 thousand and share premium by HKD 7,250 thousand Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2019) | Indicator | Share Capital (HKD thousands) | Share Premium (HKD thousands) | Merger Reserve (HKD thousands) | Retained Earnings (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2019 (Audited) | 12,800 | 30,855 | 610 | 93,828 | 138,093 | | Issue of Shares | 500 | 7,250 | - | - | 7,750 | | Expenses Arising from Issue of New Shares | - | (285) | - | - | (285) | | Loss and Total Comprehensive Loss for the Period | - | - | - | (17,186) | (17,186) | | As at June 30, 2019 (Unaudited) | 13,300 | 37,820 | 610 | 76,642 | 128,372 | - The issuance of shares resulted in an increase in share capital of **HKD 500 thousand** and share premium of **HKD 7,250 thousand**, totaling **HKD 7,750 thousand**[14](index=14&type=chunk) - A loss of **HKD 17,186 thousand** was recorded for the period, leading to a decrease in retained earnings[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2019, the Group generated net cash from operating activities, with cash inflows also from investing and financing activities, leading to an increase in cash and cash equivalents at the end of the period Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2019 (HKD thousands) | 2018 (HKD thousands) | | :--- | :--- | :--- | | Net Cash From (Used In) Operating Activities | 9,975 | (979) | | Net Cash Used In Investing Activities | (979) | (1,093) | | Net Cash From Financing Activities | 442 | 10,000 | | Net Increase (Decrease) In Cash and Cash Equivalents | 9,438 | 7,928 | | Cash and Cash Equivalents at Beginning of Period | 28,269 | 32,443 | | Cash and Cash Equivalents at End of Period | 37,707 | 32,371 | - Net cash from operating activities significantly improved, changing from net cash used of **HKD 979 thousand** in the prior year period to net cash generated of **HKD 9,975 thousand** in 2019[19](index=19&type=chunk) - Cash and cash equivalents at the end of the period increased to **HKD 37,707 thousand**, up from **HKD 28,269 thousand** at the beginning of the period[19](index=19&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=7&type=section&id=1.%20General%20Information) The Company was incorporated in the Cayman Islands in 2015, primarily engaged in investment holding, with the Group's main business being the provision of engineering services for building services systems in Hong Kong, and its shares were transferred from GEM to the Main Board of the Stock Exchange on February 12, 2018 - The Company was incorporated in the Cayman Islands on **April 29, 2015**, and its principal business is investment holding[21](index=21&type=chunk) - The Group's principal business is to provide various engineering services for building services systems in Hong Kong[24](index=24&type=chunk) - The Company's shares were transferred from GEM to the Main Board of the Stock Exchange with effect from **February 12, 2018**[23](index=23&type=chunk) [2. Basis of Preparation](index=7&type=section&id=2.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the Listing Rules, presented under the historical cost convention and in Hong Kong dollars, with the adoption of HKFRS 16 "Leases" having no significant impact on financial position and performance - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Listing Rules[25](index=25&type=chunk) - The Group first adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 16 "Leases", but the adoption of HKFRS 16 did not have a significant impact on the Group's financial position and performance[28](index=28&type=chunk)[29](index=29&type=chunk) [3. Revenue and Segment Information](index=9&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from building services engineering and maintenance, repair, and other services, with building services engineering revenue significantly decreasing for the six months ended June 30, 2019, leading to a reduction in total revenue and a shift from segment profit to segment loss - The Group's operating segments include building services engineering (providing ventilation, air-conditioning, electrical, water supply, drainage, and fire services system engineering) and maintenance, repair, and other services[32](index=32&type=chunk) Analysis of Revenue and Results by Business Segment (For the six months ended June 30) | Segment | 2019 Revenue (HKD thousands) | 2018 Revenue (HKD thousands) | 2019 Segment Results (HKD thousands) | 2018 Segment Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Building Services Engineering | 80,891 | 143,167 | (9,703) | 27,819 | | Maintenance, Repair and Other Services | 8,981 | 6,284 | 1,071 | 684 | | **Total** | **89,872** | **149,451** | **(8,632)** | **28,503** | - Building services engineering revenue decreased by **43.5% year-on-year**, from HKD 143,167 thousand to HKD 80,891 thousand, causing this segment to shift from profit to loss[33](index=33&type=chunk)[36](index=36&type=chunk) - Revenue from maintenance, repair, and other services increased by **43% year-on-year**, from HKD 6,284 thousand to HKD 8,981 thousand, with improved segment results[33](index=33&type=chunk)[36](index=36&type=chunk) [4. (Loss) Profit Before Tax](index=10&type=section&id=4.%20%28Loss%29%20Profit%20Before%20Tax) For the six months ended June 30, 2019, the Group shifted from profit to loss before tax, primarily influenced by factors such as staff costs, auditor's remuneration, and depreciation Components of (Loss) Profit Before Tax (For the six months ended June 30) | Item | 2019 (HKD thousands) | 2018 (HKD thousands) | | :--- | :--- | :--- | | Directors' Remuneration | 1,794 | 1,743 | | Total Staff Costs | 19,489 | 20,168 | | Auditor's Remuneration | 400 | 549 | | Depreciation of Property, Plant and Equipment | 263 | 305 | | Bank Interest Income | (31) | (21) | - Total staff costs slightly decreased, but directors' remuneration slightly increased[37](index=37&type=chunk) [5. Income Tax Expense](index=11&type=section&id=5.%20Income%20Tax%20Expense) Due to the loss incurred, the Group's income tax expense for the six months ended June 30, 2019, was zero, compared to HKD 3,354 thousand in the prior year period Income Tax Expense (For the six months ended June 30) | Item | 2019 (HKD thousands) | 2018 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong Profits Tax | - | 3,354 | - Income tax expense for the current period was zero, primarily due to no assessable profit[42](index=42&type=chunk)[113](index=113&type=chunk) [6. Dividends](index=11&type=section&id=6.%20Dividends) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2019, whereas a final dividend of HKD 9,984 thousand was distributed in the prior year period - The Board of Directors resolved not to declare an interim dividend for the six months ended **June 30, 2019**[43](index=43&type=chunk)[163](index=163&type=chunk) - For the six months ended June 30, 2018, the Company declared a final dividend of **HKD 9,984,000** (HKD 0.78 cents per share) for the year ended December 31, 2017[43](index=43&type=chunk) [7. (Loss) Earnings Per Share](index=11&type=section&id=7.%20%28Loss%29%20Earnings%20Per%20Share) For the six months ended June 30, 2019, the Group's basic loss per share was 1.33 HK cents, compared to basic earnings per share of 1.31 HK cents in the prior year period, primarily due to the loss incurred during the period (Loss) Earnings Per Share (For the six months ended June 30) | Indicator | 2019 (HKD thousands) | 2018 (HKD thousands) | | :--- | :--- | :--- | | (Loss) Profit | (17,186) | 16,765 | | Weighted Average Number of Ordinary Shares (thousands) | 1,291,173 | 1,280,000 | | Basic (Loss) Earnings Per Share (HK cents) | (1.33) | 1.31 | - Due to the loss incurred during the period, basic earnings per share shifted from **1.31 HK cents** last year to a basic loss per share of **1.33 HK cents** this period[44](index=44&type=chunk) - Diluted earnings per share are not presented as there are no potential ordinary shares in issue[44](index=44&type=chunk) [8. Movements in Investment Properties](index=12&type=section&id=8.%20Movements%20in%20Investment%20Properties) During the interim period, the Group acquired an investment property for a cash consideration of approximately HKD 6,223 thousand, valued by the directors using the income approach, with no fair value changes from the acquisition date to the end of the period - During the interim period, the Group acquired an investment property for a cash consideration of approximately **HKD 6,223 thousand**[48](index=48&type=chunk) - The investment property was valued by the directors using the income approach, considering expected rental yields, rental income, and expenses[48](index=48&type=chunk) - There were no fair value changes from the date of acquisition to the end of the interim period[48](index=48&type=chunk) [9. Trade and Other Receivables](index=12&type=section&id=9.%20Trade%20and%20Other%20Receivables) As of June 30, 2019, the Group's net trade receivables and total other receivables both decreased, with a significant increase in the proportion of trade receivables aged 0 to 30 days Trade and Other Receivables (As of June 30, 2019) | Item | June 30, 2019 (HKD thousands) | December 31, 2018 (HKD thousands) | | :--- | :--- | :--- | | Net Trade Receivables | 36,928 | 41,240 | | Other Receivables, Deposits and Prepayments | 5,522 | 4,943 | | **Total** | **42,450** | **46,183** | Ageing Analysis of Trade Receivables (As of June 30, 2019) | Ageing | June 30, 2019 (HKD thousands) | December 31, 2018 (HKD thousands) | | :--- | :--- | :--- | | 0 to 30 days | 26,112 | 10,310 | | 31 to 60 days | 78 | 24,545 | | 61 to 90 days | 3,683 | 1,300 | | Over 90 days | 7,055 | 5,085 | | **Total** | **36,928** | **41,240** | - Net trade receivables decreased from **HKD 41,240 thousand** to **HKD 36,928 thousand**, with the proportion of 0 to 30 days ageing increasing from approximately **25% to approximately 70%**[50](index=50&type=chunk) [10. Trade and Other Payables](index=13&type=section&id=10.%20Trade%20and%20Other%20Payables) As of June 30, 2019, the Group's total trade and other payables significantly decreased, primarily due to a reduction in trade payables Trade and Other Payables (As of June 30, 2019) | Item | June 30, 2019 (HKD thousands) | December 31, 2018 (HKD thousands) | | :--- | :--- | :--- | | Trade Payables | 35,904 | 49,514 | | Accruals | 21,658 | 23,565 | | **Total** | **57,562** | **73,079** | Ageing Analysis of Trade Payables (As of June 30, 2019) | Ageing | June 30, 2019 (HKD thousands) | December 31, 2018 (HKD thousands) | | :--- | :--- | :--- | | 0 to 30 days | 18,857 | 17,149 | | 31 to 60 days | 6,540 | 17,459 | | 61 to 90 days | 2,179 | 3,790 | | Over 90 days | 8,328 | 11,116 | | **Total** | **35,904** | **49,514** | - Total trade payables decreased from **HKD 49,514 thousand** to **HKD 35,904 thousand**, with a significant reduction in trade payables aged 31 to 60 days[54](index=54&type=chunk) [11. Bank Borrowings](index=13&type=section&id=11.%20Bank%20Borrowings) As of June 30, 2019, the Group's total bank borrowings significantly decreased to HKD 3,221 thousand, primarily due to the repayment of advances on discounted bills receivable with recourse and corporate tax loans Bank Borrowings (As of June 30, 2019) | Item | June 30, 2019 (HKD thousands) | December 31, 2018 (HKD thousands) | | :--- | :--- | :--- | | Borrowings Repayable Within One Year — Secured and Floating | 3,221 | 10,151 | | Advances on Discounted Bills Receivable with Recourse | - | 3,000 | | Corporate Tax Loan | 3,221 | 7,151 | | **Total** | **3,221** | **10,151** | - Total bank borrowings significantly decreased from **HKD 10,151 thousand** to **HKD 3,221 thousand**[55](index=55&type=chunk) - The corporate tax loan is secured by pledged bank deposits and bears interest at **2% below Hong Kong Prime Rate**[56](index=56&type=chunk) [12. Share Capital](index=14&type=section&id=12.%20Share%20Capital) As of June 30, 2019, the Company's issued share capital increased to HKD 13,300 thousand, primarily due to the placing of 50,000,000 new shares on May 20, 2019 Movements in Share Capital (As of June 30, 2019) | Item | Number of Ordinary Shares | Total (HKD thousands) | | :--- | :--- | :--- | | As at December 31, 2018 | 1,280,000,000 | 12,800 | | Issue of Shares | 50,000,000 | 500 | | As at June 30, 2019 | 1,330,000,000 | 13,300 | - On **May 20, 2019**, the Company issued **50,000,000** ordinary shares of HKD 0.01 each through a placing, with proceeds of **HKD 500 thousand** credited to share capital and **HKD 7,250 thousand** to the share premium account[90](index=90&type=chunk) [13. Operating Lease Arrangements](index=15&type=section&id=13.%20Operating%20Lease%20Arrangements) As of June 30, 2019, the Group's future minimum lease payments under non-cancellable operating leases for warehouse and office properties amounted to HKD 669 thousand, a decrease from December 31, 2018, and the Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases Future Minimum Lease Payments Under Operating Leases (As of June 30, 2019) | Period | June 30, 2019 (HKD thousands) | December 31, 2018 (HKD thousands) | | :--- | :--- | :--- | | Within One Year | 643 | 158 | | Second to Fifth Year | 26 | 1,071 | | **Total** | **669** | **1,229** | - Total future minimum lease payments decreased from **HKD 1,229 thousand** to **HKD 669 thousand**, primarily due to a significant reduction in commitments for the second to fifth years[92](index=92&type=chunk) - The Group elected not to recognize right-of-use assets and lease liabilities for leases with a lease term ending within **12 months** of the date of initial application and applied the short-term lease recognition exemption to leases of warehouse and office properties[93](index=93&type=chunk) [14. Related Party Transactions](index=16&type=section&id=14.%20Related%20Party%20Transactions) For the six months ended June 30, 2019, the Group engaged in transactions with related parties, including rental payments, with sub-contracting fees for building services engineering contracts with Kin Chun Decoration Engineering Company decreasing to zero Related Party Transactions (For the six months ended June 30) | Related Party | Nature of Transaction | 2019 (HKD thousands) | 2018 (HKD thousands) | | :--- | :--- | :--- | :--- | | Kin Chun Decoration Engineering Company | Sub-contracting fees for building services engineering contracts | - | 110 | | LKW Company Limited | Rent paid/payable | 244 | 244 | | Mr. Wong and Ms. So | Rent paid/payable | 246 | 246 | - Sub-contracting fees for building services engineering contracts with Kin Chun Decoration Engineering Company decreased from **HKD 110 thousand** in 2018 to **zero** in 2019[98](index=98&type=chunk) - Total remuneration for key management personnel was **HKD 1,794 thousand**, slightly higher than **HKD 1,743 thousand** in the prior year period[100](index=100&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=17&type=section&id=Business%20Review%20and%20Outlook) The Group primarily provides building services engineering services in Hong Kong, including the supply, installation, and maintenance of mechanical ventilation, air-conditioning, electrical, water supply, drainage, and fire services systems, facing negative impacts on revenue and gross margins due to intense market competition, delayed tender processes, reduced contract prices, and rising construction costs, with future strategies focusing on securing larger projects, expanding service scope, and strengthening the engineering department - The Group's principal business is to provide various engineering services for building services systems in Hong Kong, including the supply, installation, and maintenance of mechanical ventilation and air-conditioning systems, electrical systems, water supply and drainage systems, and fire services systems[103](index=103&type=chunk) - Intense competition in the construction market, prolonged delays in public and private sector tendering processes, leading to a decrease in the number of open tenders, lower contract prices, and rising construction costs, negatively impacted revenue and gross margins[103](index=103&type=chunk) - The Group will implement key business strategies: (i) undertaking more larger-scale projects; (ii) expanding its service scope; and (iii) strengthening its engineering department[106](index=106&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The financial performance significantly deteriorated during the period, with revenue sharply declining by nearly 40%, leading to a shift from gross profit to gross loss, and ultimately recording a total comprehensive loss, while administrative expenses slightly increased and income tax expense decreased to zero due to the loss [Revenue](index=18&type=section&id=Revenue) For the six months ended June 30, 2019, revenue decreased by approximately 39.9% year-on-year, primarily due to cost overruns from extended project completion times, fewer projects, and lower average contract values - Revenue decreased by approximately **39.9%** from approximately **HKD 149.5 million** in the prior year period to approximately **HKD 89.9 million** in the current period[107](index=107&type=chunk) - The decrease in revenue was mainly due to unexpected extensions in project completion times leading to cost overruns, a reduction in the number of projects, and lower average contract values compared to the previous year[107](index=107&type=chunk) [Cost of Sales](index=18&type=section&id=Cost%20of%20Sales) Cost of sales decreased by approximately 18.6% year-on-year to approximately HKD 98.5 million, primarily due to a reduction in building services engineering projects - Cost of sales decreased by approximately **18.6%** to approximately **HKD 98.5 million**, mainly due to fewer building services engineering projects undertaken by the Group during the relevant period[108](index=108&type=chunk) [Gross Profit / (Gross Loss)](index=19&type=section&id=Gross%20Profit%20%2F%20%28Gross%20Loss%29) The Group recorded a gross loss of approximately HKD 8.6 million, compared to a gross profit of approximately HKD 28.5 million in the prior year period, with an overall gross loss margin of approximately 9.6%, primarily because the decrease in revenue outpaced the decrease in cost of sales - The Group recorded a gross loss of approximately **HKD 8.6 million**, compared to a gross profit of approximately **HKD 28.5 million** in the prior year period[111](index=111&type=chunk) - The overall gross loss margin was approximately **9.6%**, compared to a gross profit margin of approximately **19.1%** in the prior year period, mainly because the decrease in revenue was greater than the decrease in sub-contracting fees and direct labour costs[111](index=111&type=chunk) [Administrative Expenses](index=19&type=section&id=Administrative%20Expenses) Administrative expenses increased by approximately 5.6% year-on-year to approximately HKD 9.3 million, primarily due to higher administrative staff salaries and other administrative expenses - Administrative expenses increased by approximately **5.6%** from approximately **HKD 8.8 million** to approximately **HKD 9.3 million**[112](index=112&type=chunk) - This increase was due to higher administrative staff salaries and other administrative expenses during the relevant period[112](index=112&type=chunk) [Income Tax Expense](index=19&type=section&id=Income%20Tax%20Expense) Income tax expense decreased by approximately 100% from approximately HKD 3.4 million in the prior year period to zero in the current period, primarily due to the absence of assessable profit - Income tax expense decreased by approximately **100%** from approximately **HKD 3.4 million** to **zero**[113](index=113&type=chunk) - This decrease was due to the absence of assessable profit for the six months ended June 30, 2019[113](index=113&type=chunk) [Total (Loss) Profit and Comprehensive (Loss) Income](index=19&type=section&id=Total%20%28Loss%29%20Profit%20and%20Comprehensive%20%28Loss%29%20Income) The Group recorded a total loss and comprehensive loss of approximately HKD 17.2 million, compared to a total profit and comprehensive profit of approximately HKD 16.8 million in the prior year period, primarily due to the combined impact of a significant decrease in revenue, gross loss, and increased administrative expenses - The Group recorded a total loss and comprehensive loss of approximately **HKD 17.2 million**, compared to a total profit and comprehensive profit of approximately **HKD 16.8 million** in the prior year period[114](index=114&type=chunk) - This change was mainly due to the combined impact of a significant decrease in revenue, the gross loss incurred, and increased administrative expenses[114](index=114&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2019, the Group's total assets and total liabilities both decreased, total interest-bearing loans and borrowings significantly reduced, and the current ratio improved, with the Group adopting a prudent financial management strategy to closely monitor its liquidity position - As of **June 30, 2019**, the Group's total assets were approximately **HKD 191.2 million** (December 31, 2018: approximately HKD 223.7 million)[117](index=117&type=chunk) - Total interest-bearing loans and borrowings were approximately **HKD 3.2 million** (December 31, 2018: HKD 10.1 million), and the current ratio was approximately **2.9 times** (December 31, 2018: approximately 2.6 times)[117](index=117&type=chunk) - The Group adopts a prudent financial management strategy, continuously conducts credit evaluations of customers, and closely monitors its liquidity position[121](index=121&type=chunk) [Gearing Ratio](index=20&type=section&id=Gearing%20Ratio) As of June 30, 2019, the Group's gearing ratio was approximately 2.5%, a significant decrease from 7.4% as of December 31, 2018, primarily due to net proceeds from share placing and repayment of advances on bills receivable - The gearing ratio was approximately **2.5%** (December 31, 2018: **7.4%**)[119](index=119&type=chunk) - The decrease in the ratio was due to the receipt of net proceeds from the share placing and the repayment of advances on bills receivable[119](index=119&type=chunk) [Treasury Policy](index=20&type=section&id=Treasury%20Policy) The Group adopts a prudent financial management strategy, maintaining a robust liquidity position, and ensures its funding needs are met through credit evaluation and liquidity monitoring - The Group adopts a prudent financial management strategy in executing its treasury policy, maintaining a robust liquidity position[121](index=121&type=chunk) - Credit risk is mitigated through credit evaluation and financial assessment of customers[121](index=121&type=chunk) - The Board closely monitors the Group's liquidity position to ensure its funding needs are met[121](index=121&type=chunk) [Pledges of Assets](index=21&type=section&id=Pledges%20of%20Assets) As of June 30, 2019, the Group pledged bank deposits of approximately HKD 7.3 million and an investment property to banks as collateral for bank financing - The Group pledged bank deposits of approximately **HKD 7.3 million** to banks as collateral for bank financing (December 31, 2018: HKD 13.5 million)[124](index=124&type=chunk) - The Group pledged an investment property located at Unit B9, 6/F, Block B, Tonic Industrial Centre, 19 Lam Hing Street, Kowloon Bay, Hong Kong, to banks as collateral for all amounts under bank financing[124](index=124&type=chunk) [Foreign Exchange Risk](index=21&type=section&id=Foreign%20Exchange%20Risk) All of the Group's business and borrowings are transacted in Hong Kong dollars, thus it did not face significant foreign exchange rate fluctuation risk for the six months ended June 30, 2019, and has not formulated any hedging policy - All of the Group's revenue-generating business and borrowings are transacted in Hong Kong dollars[126](index=126&type=chunk) - For the six months ended June 30, 2019, there was no significant foreign exchange rate fluctuation risk[126](index=126&type=chunk) - The Group has not formulated any hedging policy against foreign currency risk, and management will consider hedging significant currency risks when necessary[126](index=126&type=chunk) [Share Capital Structure](index=21&type=section&id=Share%20Capital%20Structure) The Company's shares were transferred to the Main Board of the Stock Exchange on February 12, 2018, and as of June 30, 2019, the issued share capital was HKD 13,300 thousand, with 1,330,000,000 ordinary shares in issue, primarily due to the placing of 50,000,000 new shares on May 20, 2019 - The Company's shares were transferred to the Main Board of the Stock Exchange on **February 12, 2018**[127](index=127&type=chunk) - As of **June 30, 2019**, the Company's issued share capital was **HKD 13,300 thousand** (December 31, 2018: HKD 12,800 thousand)[127](index=127&type=chunk) - The number of ordinary shares in issue was **1,330,000,000**, primarily due to the placing of **50,000,000** new shares on **May 20, 2019**[127](index=127&type=chunk) [Commitments](index=22&type=section&id=Commitments) As of June 30, 2019, the Group had no significant capital commitments for property, plant, and equipment or investment properties - As of **June 30, 2019**, the Group had no significant capital commitments for property, plant, and equipment or investment properties[130](index=130&type=chunk) [Future Plans for Material Investments and Capital Assets](index=22&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2019, the Group had no other future plans for material investments or capital assets - The Group had no other future plans for material investments or capital assets as of **June 30, 2019**[131](index=131&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=22&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2019, the Group did not have any material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2019, the Group did not have any material acquisitions or disposals of subsidiaries, associates, or joint ventures[132](index=132&type=chunk) [Contingent Liabilities](index=22&type=section&id=Contingent%20Liabilities) As of June 30, 2019, the Group had no significant contingent liabilities - As of **June 30, 2019**, the Group had no significant contingent liabilities (December 31, 2018: nil)[133](index=133&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2019, the Group employed 94 employees, with staff costs of approximately HKD 19.5 million, offering competitive benefits including retirement and medical benefits, training courses, and bonuses and share options based on performance - As of **June 30, 2019**, the Group employed a total of **94 employees** (December 31, 2018: 91 employees)[136](index=136&type=chunk) - Staff costs (including directors' remuneration) for the six months ended June 30, 2019, were approximately **HKD 19.5 million** (prior year period: approximately HKD 20.2 million)[136](index=136&type=chunk) - The Group provides competitive benefits, including retirement benefits, medical benefits, and sponsored training courses, and awards bonuses and share options based on the Group's performance and individual performance[136](index=136&type=chunk) [Material Investments Held](index=23&type=section&id=Material%20Investments%20Held) The Group completed the acquisition of an investment property in Kowloon Bay, Hong Kong, in May 2019 for approximately HKD 6.2 million, which is currently leased to an independent third party, and holds no other material investments - The Group completed the acquisition of an investment property located at Unit B9, 6/F, Block B, Tonic Industrial Centre, 19 Lam Hing Street, Kowloon Bay, Hong Kong, in **May 2019** for a consideration of approximately **HKD 6.2 million**[137](index=137&type=chunk) - The investment property is currently leased to an independent third party at market rent[137](index=137&type=chunk) - Save as disclosed above, the Group does not hold any other material investments[137](index=137&type=chunk) [Placing under General Mandate](index=24&type=section&id=Placing%20under%20General%20Mandate) The Company completed the placing of 50,000,000 new shares on May 20, 2019, at a placing price of HKD 0.155 per share, generating net proceeds of approximately HKD 7.47 million, with 90% earmarked for upfront costs and performance bonds for new projects and 10% for general working capital - The Company completed the placing of **50,000,000** new shares on **May 20, 2019**, at a placing price of **HKD 0.155** per share[141](index=141&type=chunk) - The placing price represented a discount of approximately **11.93%** to the closing price on the date of the placing agreement (May 6, 2019) and approximately **19.44%** to the average closing price for the preceding five trading days[141](index=141&type=chunk) - The net proceeds from the placing were approximately **HKD 7.47 million**, of which approximately **90%** will be used for upfront costs and performance bonds for new projects, and the remaining approximately **10%** for general working capital[141](index=141&type=chunk) [Disclosure of Interests](index=25&type=section&id=Disclosure%20of%20Interests) As of June 30, 2019, directors and chief executives, as well as substantial shareholders, held interests in the Company's shares and ordinary shares of associated corporations, with Mr. Wong and his spouse Ms. So being key shareholders [A. Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures](index=25&type=section&id=A.%20Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20or%20Debentures) As of June 30, 2019, Mr. Wong held interests in the Company's shares directly and through controlled corporations, his spouse Ms. So was deemed to have an interest, and Mr. Tang Shun Man held a small number of shares Directors' Long Positions in Shares (As of June 30, 2019) | Director's Name | Capacity/Nature of Interest | Number of Shares Interested | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wong | Interest in controlled corporation | 653,000,000 | 49.10% | | Mr. Wong | Beneficial owner | 51,800,000 | 3.89% | | Ms. So | Spouse's interest | 704,800,000 | 52.99% | | Mr. Tang Shun Man | Beneficial owner | 160,000 | 0.01% | Directors' Long Positions in Ordinary Shares of Associated Corporations (As of June 30, 2019) | Director's Name | Name of Associated Corporation | Capacity/Nature of Interest | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wong | Golden Luck | Beneficial owner | 99% | | Ms. So | Golden Luck | Beneficial owner | 1% | [B. Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares or Debentures](index=26&type=section&id=B.%20Substantial%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20or%20Debentures) As of June 30, 2019, other than the directors, Golden Luck was a substantial shareholder of the Company, holding 49.1% of the shares Substantial Shareholders' Long Positions in Shares (As of June 30, 2019) | Shareholder's Name | Capacity/Nature of Interest | Number of Shares Interested | Long/Short Position | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Golden Luck | Beneficial owner | 653,000,000 | Long Position | 49.1% | [Competing Interests](index=27&type=section&id=Competing%20Interests) During the relevant period, none of the directors, controlling shareholders, or their close associates held any business or interest that competed or might compete with the Group's business - During the relevant period, none of the directors or controlling shareholders of the Company or their respective close associates held any business or interest that competed or might compete with the Group's business[156](index=156&type=chunk) [Directors' Material Interests in Contracts](index=27&type=section&id=Directors%27%20Material%20Interests%20in%20Contracts) Save as disclosed in the prospectus or this report, no director had any material interest in any contract of significance to the Group's business to which the Company or any of its subsidiaries was a party during the relevant period - During the relevant period, no director had any material interest in any contract of significance to the Group's business to which the Company or any of its subsidiaries was a party[157](index=157&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the relevant period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the relevant period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[158](index=158&type=chunk) [Corporate Governance Code](index=27&type=section&id=Corporate%20Governance%20Code) The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules throughout the relevant period - The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules throughout the relevant period[159](index=159&type=chunk) [Code for Securities Transactions by Directors](index=28&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) The Group has adopted a code of conduct for securities transactions by directors that is no less stringent than the Model Code set out in the Listing Rules, and all directors have confirmed their compliance with this code during the relevant period - The Group has adopted a code of conduct for securities transactions by directors, the terms of which are no less stringent than the Model Code set out in Appendix 10 to the Listing Rules[162](index=162&type=chunk) - All directors have confirmed their compliance with the required standards set out in the code of conduct during the relevant period[162](index=162&type=chunk) [Dividends](index=28&type=section&id=Dividends) The Board of Directors resolved not to declare any interim dividend for the relevant period - The Board of Directors resolved not to declare any interim dividend for the relevant period[163](index=163&type=chunk) [Share Option Scheme](index=28&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme in 2015, but no share options have been granted since its adoption, and no share options were outstanding as of June 30, 2019 - The Company conditionally adopted a share option scheme on **September 10, 2015**[164](index=164&type=chunk) - No share options have been granted since the adoption of the scheme, and no share options were outstanding as of **June 30, 2019**[164](index=164&type=chunk) [Events After Reporting Period](index=29&type=section&id=Events%20After%20Reporting%20Period) No significant events have occurred from the end of the relevant period up to the date of this report - No significant events have occurred from the end of the relevant period up to the date of this report[168](index=168&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and monitoring financial reporting, internal control, and risk management systems, and has reviewed the unaudited condensed consolidated financial statements for the current period - The Audit Committee was established on **September 10, 2015**, and comprises three independent non-executive directors, with Mr. Tam Chun Chung as chairman[169](index=169&type=chunk) - The primary responsibilities of the Audit Committee are to review and monitor the Group's financial reporting process, internal control and risk management systems, nominate and monitor external auditors, and oversee the Company's continuing connected transactions[169](index=169&type=chunk) - The unaudited condensed consolidated financial statements of the Group for the relevant period have been reviewed by the Company's Audit Committee[169](index=169&type=chunk)