Revenue and Profitability - Revenue for the six months ended June 30, 2022, was MOP 273,331,000, a decrease of 43.3% compared to MOP 481,065,000 in the same period of 2021[6]. - Gross profit for the same period was MOP 1,862,000, down from MOP 24,705,000, indicating a significant decline in profitability[6]. - The operating loss for the six months was MOP 10,421,000, compared to an operating profit of MOP 10,078,000 in the previous year[6]. - The loss attributable to the owners of the Company for the period was MOP 12,579,000, contrasting with a profit of MOP 7,240,000 in 2021[6]. - Basic and diluted loss per share was MOP (1.26), compared to earnings of MOP 0.72 per share in the prior year[6]. - Total comprehensive loss for the period attributable to the owners of the Company was MOP 12,595,000, compared to a total comprehensive income of MOP 7,240,000 in 2021[8]. - The Group's total revenue for the six months ended 30 June 2022 was MOP273.3 million, a decrease of approximately MOP207.7 million or 43.2% compared to MOP481.1 million in the same period of 2021[182]. - Gross profit decreased by approximately MOP22.8 million or 92.3% to approximately MOP1.9 million for the six months ended 30 June 2022, with a gross profit margin dropping to approximately 0.7% from 5.1%[185][187]. - The decline in gross profit was mainly due to intense market competition in the construction industry and rising construction costs influenced by COVID-19[186]. Expenses and Costs - Administrative expenses rose to MOP 13,272,000 from MOP 12,804,000, reflecting increased operational costs[6]. - Finance costs increased by approximately MOP1,319,000 or 182.7% to approximately MOP2,041,000, attributed to higher interest expenses on bank borrowings[188]. - The total direct costs and administrative expenses for the six months ended June 30, 2022, amounted to MOP 284,741,000, down from MOP 469,164,000 in 2021, indicating a reduction of about 39%[66]. Cash Flow and Assets - Cash and cash equivalents increased to MOP 18,927,000, a rise of 83% compared to MOP 10,330,000 as of December 31, 2021[11]. - Net cash used in operating activities for the six months ended June 30, 2022, was MOP 17,118, a decrease from MOP 25,134 in the same period of 2021, representing a 32% improvement[23]. - Cash and cash equivalents at the end of the period were MOP 18,927, down from MOP 62,572 at the end of June 2021, representing a 70% decrease[23]. - The Group's non-current assets as of June 30, 2022, totaled MOP 76,161,000, a slight decrease from MOP 77,656,000 as of December 31, 2021[54]. Liabilities and Borrowings - Total liabilities decreased to MOP 345,280,000 from MOP 370,520,000, marking a reduction of about 6.8%[12]. - Bank borrowings increased to MOP 169,501,000 from MOP 130,219,000, representing a rise of approximately 30%[12]. - The effective interest rate on the Group's bank borrowings was 3.10% per annum for the six months ended June 30, 2022, down from 3.21% per annum as of December 31, 2021[147]. - The Group's secured bank borrowings of MOP 72,224,000 are guaranteed by pledged bank deposits and property, plant, and equipment valued at MOP 41,900,000 and MOP 10,045,000 respectively[151]. Operational Performance - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[6]. - The Group's financial performance indicates a need for strategic adjustments to address the decline in revenue and profitability across segments[39]. - The decrease in revenue was attributed to the completion of large-scale foundation works and the absence of emergency repair service contracts during the period[182]. - The Group completed 4 building and ancillary services projects during the reporting period[178]. Segment Information - For the six months ended June 30, 2022, the Group's segment revenue from Building and Ancillary Services was MOP 272,343,000, while Emergency Repair Services generated MOP 988,000, leading to a consolidated revenue of MOP 273,331,000[39]. - Revenue from external customers in Macau for the six months ended June 30, 2022, was MOP 253,974,000, a decrease from MOP 459,497,000 in the same period of 2021[53]. - Revenue from Hong Kong for the same period was MOP 19,357,000, down from MOP 21,568,000 in 2021, contributing to the overall decline in consolidated revenue[53]. Compliance and Governance - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with local regulations[26]. - The company has maintained the same accounting policies and methods of computation as presented in the previous year's annual financial statements[26]. - The management has commenced negotiations with the bank for a waiver of the technical breach of the loan covenant, which has not yet been obtained as of the report date[154].

Financial Performance - The Group reported a challenging second half of 2021 due to intense market competition, leading to downward pressure on tender prices and gross profit margins[12]. - The Group's profitability was significantly impacted by the combination of market competition, rising costs, and unresolved variation works[12]. - The Group recorded a loss for the year of approximately MOP22.6 million for the year ended 31 December 2021[14]. - The Group's total revenue increased by approximately MOP264.6 million or 38.1% for the year ended 31 December 2021 compared to the previous year, primarily driven by a 39.6% increase in building and ancillary services revenue[35]. - Gross profit decreased by approximately MOP32.8 million or 78.1%, resulting in a gross profit margin decline to approximately 1.0% for the year ended 31 December 2021[36]. - The decrease in gross profit was attributed to intense market competition, rising construction costs due to COVID-19, and ongoing negotiations regarding variation works[37]. - The Group reported a loss of approximately MOP20.8 million for the year ended 31 December 2021, compared to a profit of approximately MOP12.9 million for the previous year[43]. - Total comprehensive loss was approximately MOP22.0 million for the year ended 31 December 2021, compared to total comprehensive income of approximately MOP6.0 million for the year ended 31 December 2020[50]. - Basic loss per share for the year ended 31 December 2021 was approximately MOP2.08 cents, compared to basic earnings per share of MOP1.29 cents in 2020[50]. Market Conditions - Construction costs increased persistently due to the impact of COVID-19 on the global supply chain, negatively affecting profitability[12]. - The economic recovery in Macau and Hong Kong has been gradual, with the Group capturing opportunities in the construction sector[12]. - The Group holds an optimistic view of the overall construction market in Macau due to the expansion of public sector projects[16]. - The Group expects inflation and supply shortages in construction materials and labor to create further operational difficulties[22]. - The recent outbreak of Omicron is anticipated to negatively impact the economy and business operations in both Hong Kong and Macau[20]. - The construction industry's growth in Macau and Hong Kong is contingent on the availability of major projects, influenced by government spending, economic conditions, and the gaming industry's performance[57][59]. - The Group's financial performance may be adversely affected if there is a decline in construction activities or if the economy of Macau worsens due to various external factors[61][62]. Project and Service Overview - The Group was awarded several building and ancillary services projects in Macau and Hong Kong, indicating a gradual economic recovery in these regions[12]. - The Group completed 40 building and ancillary services projects during the year ended 31 December 2021, with an aggregate contract sum of MOP1,065.1 million awarded[32]. - As of 31 December 2021, the Group's backlog consisted of 20 building and ancillary services projects with an aggregate outstanding contract sum of MOP455.6 million[32]. - The Group has accumulated experience in providing a wide spectrum of construction services since its establishment in 2006, focusing on hotel and casino resorts, property developers, and public utilities[8]. - The services offered include foundation works, hard landscaping, road works, and emergency repair services related to electricity and water supply[9]. - The Group's integrated construction contractor model allows it to provide both building and ancillary services as well as emergency repair services[8]. Cost Management and Operational Challenges - The Group aims to improve cost control measures to mitigate the impact of expected increases in construction costs[23]. - Rising construction costs due to increased raw material, labor, and subcontractor fees have prompted the Group to improve cost control measures to mitigate negative impacts on profitability[106]. - Administrative expenses increased by approximately MOP5,895,000 or 27.4% to approximately MOP27,419,000, primarily due to higher staff costs[41]. - Finance costs rose by approximately MOP1,254,000 or 98.0% to approximately MOP2,534,000, mainly due to increased bank loan interest[41]. Governance and Management - The Group has a strong leadership team with diverse backgrounds in construction, management consulting, and legal services[122]. - The Group's governance includes independent non-executive directors to ensure oversight and independent judgment[126]. - The company emphasizes high standards of corporate governance to safeguard shareholder interests and enhance corporate value[147]. - The Board consists of five Directors, including three independent non-executive Directors, ensuring sufficient independent voice within the Board[154]. - The independent directors bring valuable insights and governance to the Group, enhancing decision-making processes[131]. - The company has adopted a nomination policy for Directors, considering criteria such as character, qualifications, and board diversity[164]. Employee and Workforce Management - The total number of full-time employees increased to 416 as of December 31, 2021, compared to 354 in 2020[101]. - The Group's gross staff costs from operations were approximately MOP103.6 million for the year ended December 31, 2021, slightly down from MOP105.1 million in 2020[101]. - The Group has not faced significant labor disputes or difficulties in recruiting and retaining skilled personnel, ensuring smooth operations[72]. - The Group provides various training programs for employees, including those related to occupational health and safety[72]. Financial Position and Risk Management - As of December 31, 2021, bank borrowings amounted to approximately MOP130.2 million, a significant increase from MOP28.3 million in 2020[83]. - The current ratio decreased from 1.9 times as of December 31, 2020, to 1.4 times as of December 31, 2021, primarily due to an increase in current portions of bank borrowings[83]. - The gearing ratio increased from 12.1% as of December 31, 2020, to 61.2% as of December 31, 2021, mainly due to an increase in bank borrowings of MOP101.9 million during the year[83]. - The Group's maximum exposure to credit risk is primarily from trade receivables, contract assets, and other financial assets recognized in the financial position[95]. - The Group's credit risk concentration is significant, with 43.4% of total trade receivables due from the largest debtor and 86.4% from the five largest debtors within the building and ancillary services segment[96]. - The Group does not currently have a foreign currency hedging policy but monitors foreign exchange exposure and will consider hedging if necessary[90].

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 對 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Kin Pang Holdings Limited 建鵬控股有限公司 （股份代號：1722） （於開曼群島註冊成立的有限責任公司） 截至二零二一年十二月三十一日止年度的 未經審核全年業績公告 未經審核全年業績 建 鵬 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」）截 至 二 零 二 一 年 十 二 月 三 十 一 日 止 年 度 的 未 經 審 核 綜 合 財 務 資 料，連 同 截 至 二 零 二 零 年 十 二 月 三 十 一 日 止 年 度 的 相 應 比 較 數 字。於 本 公 告 日 期，誠 如 本 公 告「審 閱 未 經 審 核 全 年 業 績」一 段 所 述 原 因，本 集 團 截 至 二 零 二 一 年 十 二 月 三 十 一 ...

Financial Performance - Revenue for the six months ended June 30, 2021, was MOP 559,770,000, a significant increase of 137.5% compared to MOP 235,453,000 in the same period of 2020[9] - Gross profit for the same period was MOP 24,705,000, representing a gross margin of approximately 4.4%[9] - Profit before tax increased to MOP 9,356,000, up 105.5% from MOP 4,569,000 in the prior year[9] - Profit attributable to owners of the Company for the period was MOP 7,240,000, compared to MOP 3,226,000 in 2020, marking a year-over-year increase of 124.4%[9] - Basic earnings per share for the period was 0.72 MOP cents, up from 0.32 MOP cents in the previous year[9] - The Group's profit and total comprehensive income attributable to owners of the Company increased by approximately MOP4.0 million or 125.0% from approximately MOP3.2 million for the six months ended 30 June 2020 to approximately MOP7.2 million for the six months ended 30 June 2021[152] Assets and Liabilities - Total assets as of June 30, 2021, were MOP 509,149,000, an increase from MOP 423,021,000 at the end of 2020[11] - Current liabilities increased to MOP 300,435,000 from MOP 218,294,000 at the end of 2020[11] - The net current assets stood at MOP 208,714,000, slightly up from MOP 204,727,000 in the previous period[11] - The company reported an increase in contract assets to MOP 276,123,000, compared to MOP 190,692,000 at the end of 2020[11] - The net assets of the company rose to MOP 242,144,000, up from MOP 234,904,000, indicating a 3.3% increase[6] - The total equity at June 30, 2021, was MOP 242,144,000, compared to MOP 234,904,000 at the end of 2020, reflecting a growth of 3.3%[6] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2021, was MOP (25,134,000), a decline from MOP 15,745,000 in the same period of 2020[20] - The net cash used in investing activities was MOP (13,425,000), compared to MOP (27,262,000) in the prior year, showing a reduction of 50.8%[20] - The net cash from financing activities significantly increased to MOP 71,024,000, compared to MOP (10,883,000) in the previous year[20] - The cash and cash equivalents at the end of the period were MOP 62,572,000, up from MOP 29,433,000, marking a substantial increase of 112.2%[20] Revenue Breakdown - Revenue from building and ancillary services was MOP 554,942,000, compared to MOP 229,609,000 in 2020, indicating an increase of about 141.5%[26] - The geographical breakdown shows that revenue from Macau was MOP 538,202,000, while revenue from Hong Kong was MOP 21,568,000, with the latter being a new revenue stream[26] - Segment revenue from Building and ancillary services was MOP 554,942,000, while Emergency repair services contributed MOP 4,828,000[39] Expenses - Administrative expenses rose to MOP 12,804,000 from MOP 10,157,000 in the previous year, reflecting increased operational costs[9] - Employee benefits expenses rose to MOP 50,482,000 in 2021 from MOP 40,074,000 in 2020, reflecting an increase of 25.5%[66] - Finance costs increased by approximately MOP171,000 or 31.0% from approximately MOP551,000 for the six months ended June 30, 2020 to approximately MOP722,000 for the six months ended June 30, 2021, mainly due to increased interest expenses of bank borrowings[149] Shareholder Information - As of June 30, 2021, Mr. Kong Kin I holds a beneficial interest in 684,950,000 shares, representing 68.50% of the total shares[176] - Ms. Choi Fong Lan, as the spouse of Mr. Kong Kin I, is deemed to have an interest in the same number of shares, 684,950,000, equating to 68.50%[176] - Fortunate Year Investments Limited, controlled by Mr. Kong Kin I (60%) and Ms. Choi Fong Lan (40%), holds 670,000,000 shares, which is 67.00% of the company[187] Corporate Governance - The Board did not recommend the payment of any interim dividend for the six months ended 30 June 2021[192] - The Company has complied with all applicable code provisions set out in the Corporate Governance Code except for code provision A.2.1[195] - The audit committee, consisting of three independent non-executive Directors, reviewed the unaudited condensed consolidated financial statements for the six months ended 30 June 2021[195] Market Outlook - The Group maintains a conservative outlook on its business and financial performance due to increased competition in Macau's construction market[169] - The Group plans to strengthen its position as an integrated construction contractor in Macau and expand its business in Hong Kong[171] - The Group is seeking additional business opportunities related to construction, including property development in the Greater Bay Area and Asia-Pacific Region[171]

Financial Performance - The Group's revenue increased by approximately 142% from approximately MOP292.6 million in 2019 to approximately MOP708.2 million in 2020[12]. - The profit for the year was approximately MOP12.9 million, representing a decrease of approximately 9.2% compared to the previous financial year[12]. - The Group's gross profit increased by approximately MOP3.0 million or 7.7% to approximately MOP42.0 million for the year ended 31 December 2020, while the gross profit margin decreased to approximately 5.9% from 13.3% in the previous year[30]. - Total comprehensive income decreased by approximately MOP9.2 million or 60.7% to approximately MOP6.0 million, mainly due to the combined effect of various financial items[36]. - Basic earnings per share for the year ended 31 December 2020 was approximately MOP1.29 cents, representing a decrease of approximately MOP0.13 cents or 9.2% compared to the previous year[37]. Revenue Sources and Projects - Revenue from building and ancillary services rose by approximately MOP418.4 million or 151.7%, primarily driven by large-scale foundation works[29]. - The Group completed 34 building and ancillary services projects during the year and was awarded 35 new projects with a total contract sum of MOP 165.4 million[24]. - As of December 31, 2020, the Group's backlog included 20 projects with an outstanding contract sum of MOP 415.7 million[25]. - The Group's emergency repair services contributed MOP 13.9 million, accounting for 2% of total revenue, a decrease from the previous year's MOP 16.8 million[29]. Market Conditions and Outlook - The impact of COVID-19 on Macau's construction market was relatively mild, with delays being less than expected[15]. - The Group expects the economic recovery in Macau and Hong Kong to stimulate a more active construction market, presenting opportunities for revenue expansion[19]. - The construction market in Macau showed resilience during the COVID-19 pandemic, with project delays being lower than anticipated[17]. - The Group anticipates increased demand for construction services, including new projects and the resumption of delayed projects, despite potential rises in construction costs[19]. Corporate Governance - The company is committed to achieving high standards of corporate governance to safeguard shareholder interests and enhance corporate value[109]. - The Board believes that good corporate governance is essential for formulating business strategies and enhancing transparency and accountability[109]. - The company has adopted the code provisions set out in the Corporate Governance Code contained in Appendix 14 to the Listing Rules[110]. - All independent non-executive directors have confirmed their independence in accordance with the guidelines set out in the Listing Rules[128]. Risk Management and Compliance - The Group has implemented risk management measures to ensure compliance with subcontracting terms and relevant laws, focusing on occupational health and safety[51]. - The Group maintains a policy for the immediate announcement of inside information as per the Securities and Futures Ordinance and Listing Rules[181]. - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control systems, concluding that they are in place and effective[180]. Employee and Labor Practices - The Group's total employee costs from operations, including director's emoluments, was approximately MOP 105.1 million for the year ended 31 December 2020, compared to MOP 52.4 million in 2019[73]. - As of 31 December 2020, the Group had 354 full-time employees, an increase from 147 in 2019[73]. - The Group has not faced significant labor disputes or difficulties in recruiting and retaining skilled personnel, indicating a stable workforce[52]. Environmental and Social Responsibility - The Group has established an environmental management system compliant with ISO 14001:2015 to promote environmental awareness and prevent pollution[60]. - The Group emphasizes continuous improvement in corporate social responsibility to meet the evolving needs of society[188]. - The Group undertakes annual materiality assessments, identifying 23 key issues across environmental protection, employment practices, operational practices, and community investment[196]. Financial Position and Capital Management - As of December 31, 2020, the Group had bank balances and cash of approximately MOP30.1 million, unchanged from 2019, and no bank overdrafts[58]. - The Group's bank borrowings amounted to approximately MOP28.3 million as of December 31, 2020, an increase from MOP15.8 million in 2019[65]. - The gearing ratio increased from 6.9% as of December 31, 2019, to 12.1% as of December 31, 2020, mainly due to an increase in bank borrowings of MOP12.5 million during the year[65]. Strategic Initiatives - The Group plans to enhance market shares in Macau and Hong Kong post-COVID-19 recovery, aiming for medium to long-term value creation for shareholders[80]. - The Group will continue to develop building and ancillary services in Hong Kong to expand its revenue base and achieve long-term growth[81].

Financial Performance - Revenue for the six months ended June 30, 2020, was MOP 235,453,000, a significant increase from MOP 59,386,000 in the same period of 2019, representing a growth of 296%[7] - Gross profit for the same period was MOP 17,344,000, compared to MOP 11,724,000 in 2019, indicating a year-over-year increase of 48%[7] - Profit before tax reached MOP 4,569,000, up from MOP 3,326,000 in 2019, reflecting a growth of 37%[7] - Total comprehensive income attributable to owners of the Company for the period was MOP 3,226,000, compared to MOP 2,590,000 in 2019, marking an increase of 25%[7] - Basic earnings per share for the period was 0.32 MOP cents, up from 0.26 MOP cents in the previous year, representing a growth of 23%[7] - The company reported a profit of MOP 3,226,000 for the period, compared to MOP 2,590,000 in the same period last year, indicating a year-over-year increase of 24.6%[14] - The profit before tax for the group was MOP 4,569,000, reflecting the overall profitability of the operations during the reporting period[33] - Profit attributable to owners of the Company increased by approximately MOP0.6 million or 23.1%, from MOP2.6 million for the six months ended June 30, 2019, to MOP3.2 million for the same period in 2020[135][140] Assets and Liabilities - Non-current assets increased to MOP 62,115,000 as of June 30, 2020, compared to MOP 53,766,000 at the end of 2019, showing a growth of 15%[10] - Trade receivables decreased to MOP 52,993,000 from MOP 84,251,000 at the end of 2019, a decline of 37%[10] - Current liabilities decreased to MOP 114,238,000 from MOP 119,910,000 at the end of 2019, indicating a reduction of 5%[10] - Net assets rose to MOP 232,148,000, up from MOP 228,922,000, reflecting a growth of 1.0%[11] - Total equity reached MOP 232,148,000, compared to MOP 228,922,000 at the end of 2019, indicating a 1.0% increase[11] - Cash and cash equivalents at the end of the period were MOP 29,433,000, down from MOP 49,223,000, reflecting a decrease of 40.2%[15] - The Group's trade receivables as of June 30, 2020, were MOP 52,993,000, down from MOP 84,251,000 at the end of 2019, indicating a decrease of 37.1%[66] - The Group's contract assets as of June 30, 2020, amounted to MOP 140,363,000, a decrease from MOP 157,317,000 as of December 31, 2019, reflecting a decline of about 10.8%[74] Cash Flow - Net cash generated from operating activities was MOP 15,745,000, a significant recovery from a cash outflow of MOP 10,973,000 in the previous year[15] - Net cash used in investing activities totaled MOP 27,262,000, compared to MOP 3,841,000 in the prior year, showing a substantial increase in investment outflows[15] - Net cash generated from financing activities amounted to MOP 10,883,000, recovering from a cash outflow of MOP 1,780,000 in the previous year[15] - The Group's total bank borrowings are secured by property, plant, and equipment valued at MOP 10,779,000 as of June 30, 2020[94] Revenue Breakdown - Building and ancillary services accounted for MOP 229,609,000 of the total revenue, while emergency repair services contributed MOP 5,844,000[21] - Revenue from Customer A for the six months ended June 30, 2020, was MOP 207,131,000, a significant increase from MOP 23,048,000 in 2019[51] - The geographical revenue breakdown shows that all revenue was generated from Macau, with no revenue reported from Hong Kong during this period[46] Expenses and Costs - The Group's employee benefits expenses for the six months ended June 30, 2020, were MOP 40,074,000, with no comparative figure provided for 2019[59] - Administrative expenses rose by approximately MOP2.1 million or 25.9%, from MOP8.1 million for the six months ended June 30, 2019, to MOP10.2 million for the same period in 2020, primarily due to increased salaries and depreciation of right-of-use assets[126][130] - Finance costs surged by approximately MOP433,000 or 366.9%, from MOP118,000 for the six months ended June 30, 2019, to MOP551,000 for the same period in 2020, mainly due to higher bank loan interest and lease liabilities[127][131] Market and Strategic Outlook - The company is focusing on expanding its market presence and enhancing its product offerings through new technology developments and strategic initiatives[6] - The Group anticipates increased competition in Macau's construction market, leading to potentially lower project profitability compared to previous years[161] - The Group plans to strengthen its position as an integrated construction contractor in Macau while exploring new business opportunities, particularly in Hong Kong[162] Corporate Governance - The Company is committed to achieving a high standard of corporate governance to safeguard shareholders' interests and enhance corporate value[195] - The Company has complied with all applicable code provisions set out in the Corporate Governance Code except for a deviation from provision code A.2.1[196] COVID-19 Impact - The Group recognized government grants of MOP 311,000 related to COVID-19 subsidies during the interim period[54] - The impact of COVID-19 on Macau's construction market was relatively mild, with limited effects on project progress due to effective government measures[160] - The Group will continue to monitor the COVID-19 situation closely due to its potential impact on operations[163]

Financial Performance - The Group's revenue increased by approximately 12.3% from approximately MOP260.6 million in 2018 to approximately MOP292.6 million in 2019[12] - The Group recorded a profit after tax of approximately MOP14.2 million for 2019, representing a decrease of approximately 15.5% compared to the previous financial year[12] - The Group's total revenue for the year ended December 31, 2019, increased by approximately MOP32.0 million or 12.3% compared to the previous year[37] - Revenue from building and ancillary services rose by approximately MOP29.1 million or 11.8%, primarily from foundation associated works[37] - The Group's profit for the year decreased by approximately MOP2.6 million or 15.5% from approximately MOP16.8 million for the year ended 31 December 2018 to approximately MOP14.2 million for the year ended 31 December 2019[45] - The Group's total comprehensive income for the year ended 31 December 2019 decreased by approximately MOP1.1 million or 6.7% from approximately MOP16.3 million for the year ended 31 December 2018 to approximately MOP15.2 million for the year ended 31 December 2019[47] - The Group's basic earnings per share for the year ended 31 December 2019 was approximately MOP1.42 cents, representing a decrease of approximately MOP0.26 cents or 15.5% compared to the year ended 31 December 2018[48] Project and Market Development - In the second half of 2019, the Group's revenue was approximately MOP233.2 million, showing improvement compared to the first half[13] - The Group completed 31 projects and was awarded 33 projects during the year ended December 31, 2019[12] - The Group plans to expand its building and ancillary services into the Hong Kong market to enhance its revenue base and achieve long-term growth[21] - The development of Hong Kong and Macau areas is expected to lead to high demand for construction services, creating significant business opportunities for the Group[23] - The continuous development of the gaming and tourism industry in Macau is expected to expand the demand for building and ancillary services[14] - The Group believes it can undertake more potential new projects in Macau due to the expanding market[14] - The Group anticipates a slowdown in market development in Hong Kong and extended project timelines in Macau due to COVID-19[24] - The Group expects fewer projects to be awarded in 2020, which may negatively impact financial performance[24] Financial Condition and Liquidity - As of December 31, 2019, the Group had bank balances and cash of approximately MOP 30.1 million, a decrease from MOP 65.8 million in 2018, with no bank overdrafts reported[85] - Bank borrowings amounted to approximately MOP 15.8 million as of December 31, 2019, up from MOP 2.5 million in 2018, indicating a significant increase in leverage[86] - The current ratio decreased from 4.7 times as of December 31, 2018, to 2.6 times as of December 31, 2019, primarily due to an increase in trade and other payables[86] - The gearing ratio increased from 1.2% as of December 31, 2018, to 6.9% as of December 31, 2019, mainly due to an increase in bank borrowings of MOP 13.3 million during the year[86] - The Group's liquidity management focuses on maintaining adequate cash levels to mitigate unexpected cash flow fluctuations[85] Corporate Governance - The company is committed to achieving high standards of corporate governance to safeguard shareholder interests and enhance corporate value[161] - For the year ended December 31, 2019, the company complied with all applicable code provisions in the Corporate Governance Code, except for a deviation from provision A.2.1[162] - The company has a board consisting of five directors, including Mr. Kong Kin I as both Chairman and Chief Executive Officer, and three independent non-executive directors[170] - The board has met the requirements of the Listing Rules by having at least three independent non-executive directors, representing at least one-third of the board[178] - Each independent non-executive director has signed an appointment letter for a period of three years, subject to retirement by rotation and re-election[178] - The company emphasizes the importance of good corporate governance to protect shareholder interests and enhance corporate value[164] Risk Management - The Group has implemented risk management measures to ensure compliance with subcontracting terms and occupational health and safety regulations[73] - The Group's financial condition may be adversely affected by inaccurate estimations of time and costs for projects, which can lead to delays and cost overruns[63] - The Group is exposed to cash flow interest rate risk mainly from variable-rate bank borrowings, which are affected by fluctuations in prevailing market interest rates[97] - The Group's maximum credit risk exposure is primarily from trade receivables, with 58.4% from the largest customer and 97.2% from the five largest customers in the building and ancillary services segment as of December 31, 2019[101] Human Resources - The Group had 147 full-time employees as of December 31, 2019, an increase from 79 in 2018[105] - The Group's total staff costs for operations, including directors' emoluments, were approximately MOP52.4 million for the year ended December 31, 2019, compared to MOP41.2 million in 2018[105] - The Group has not faced significant labor disputes or recruitment challenges, maintaining a stable workforce in the construction industry[74] Environmental and Social Responsibility - The Group has set up an environmental management system and is certified under ISO 14001:2015, demonstrating its commitment to environmental management[79] Future Outlook - The Group anticipates continued expansion in the building and ancillary services market in Macau, driven by the redevelopment of the gaming and tourism industry and new construction works for disaster prevention and mitigation[120] - The Group aims to strengthen its position as an integrated construction contractor in Macau by undertaking more potential new projects[120] - The Group plans to expand its revenue base by developing the Hong Kong market, which is expected to contribute to long-term growth[121] - The development in Hong Kong and Macau is projected to create significant business opportunities in construction and ancillary services, enhancing market shares for the Group[123]

Financial Performance - Revenue for the six months ended June 30, 2019, was MOP 59,386,000, a decrease of 61.2% compared to MOP 153,309,000 in the same period of 2018[11]. - Gross profit for the same period was MOP 11,724,000, down 43.9% from MOP 20,910,000 in 2018[11]. - Profit before taxation was MOP 3,326,000, a decline of 76.0% from MOP 13,893,000 in the previous year[11]. - Profit and total comprehensive income for the period was MOP 2,590,000, down 78.3% from MOP 11,947,000 in 2018[11]. - Basic earnings per share for the period was 0.26 MOP cents, down from 1.19 MOP cents in 2018[11]. - The company reported a profit of MOP 2,590,000 for the six months ended June 30, 2019, compared to an accumulated profit of MOP 110,167,000 at the end of the previous period[22]. - The total comprehensive income for the period was MOP 2,590,000, contributing to the increase in total equity to MOP 216,175,000 as of June 30, 2019[22]. - The Group's total revenue for the six months ended June 30, 2018, was MOP 153,309,000, indicating a year-over-year comparison[109]. Cash Flow and Liquidity - Cash used in operating activities for the first half of 2019 was MOP (10,973,000), a significant increase from MOP (1,970,000) in the same period of 2018, indicating a decline in operational cash flow[24]. - The total cash and cash equivalents at the end of the period were MOP 49,223,000, down from MOP 77,630,000 at the end of the previous year, reflecting a decrease of approximately 36.6%[24]. - The net change in cash and cash equivalents was a decrease of MOP 16,594,000, highlighting liquidity challenges[90]. Trade Receivables and Impairment - Trade receivables increased significantly to MOP 53,295,000 from MOP 11,351,000, reflecting a 369.5% increase[15]. - The company reported an impairment loss allowance of MOP 710,000 for trade receivables and contract assets[11]. - The total trade receivables, after impairment loss allowance, stood at MOP 53,295,000 as of June 30, 2019, compared to MOP 11,351,000 at the end of 2018[156]. - The impairment loss allowance for trade receivables increased to MOP 89,000 as of June 30, 2019, up from MOP 82,000 at the end of 2018[169]. - Impairment loss allowance for trade receivables and contract assets was MOP 3,359,000, with MOP 1,861,000 attributed to building and ancillary services[114]. Assets and Liabilities - Non-current assets rose to MOP 30,334,000, up from MOP 24,677,000, representing a 22.4% increase[15]. - Current liabilities decreased to MOP 32,578,000 from MOP 40,489,000, a reduction of 19.5%[15]. - As of June 30, 2019, the net assets of Kin Pang Holdings Limited amounted to MOP 216,175,000, an increase from MOP 213,709,000 as of December 31, 2018, representing a growth of approximately 1.1%[17]. - The Group's reserves decreased from MOP 205,969,000 to MOP 205,875,000 due to the effects of adopting HKFRS 16[89]. Administrative and Finance Costs - Administrative expenses increased to MOP 8,081,000 from MOP 7,757,000, reflecting a rise of 4.2%[11]. - The finance costs increased to MOP 118,000, up from MOP 53,000, indicating higher borrowing costs[85]. - The Group's total staff costs, including salaries and other benefits, amounted to MOP 17,943,000, down from MOP 20,822,000 in 2018, representing a decrease of 13.7%[129]. Segment Information - For the six months ended June 30, 2019, total segment revenue was MOP 59,386,000, with building and ancillary services contributing MOP 51,210,000 and emergency repair services contributing MOP 8,176,000[106]. - The segment results for building and ancillary services were MOP 19,599,000, while emergency repair services reported MOP 1,311,000[109]. - Major customers accounted for significant revenue, with Customer A contributing MOP 23,048,000, representing a decrease from MOP 45,715,000 in the previous year[124]. Accounting Standards and Policies - The interim financial report has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting (HKAS 34) and applicable disclosure requirements[2]. - The Group has applied new and amendments to HKFRSs for the first time, including HKFRS 16 Leases and HK(IFRIC)-Int 23 Uncertainty over Income Tax Treatments, effective from 1 January 2019[3]. - The application of new HKFRSs has had no material impact on the Group's financial performance and positions for the current and prior periods[3]. - The Group has adopted HKFRS 16, which impacts lease accounting policies, particularly in measuring lease liabilities and right-of-use assets[55]. Contract Assets - As of June 30, 2019, the contract assets amounted to MOP 87,196,000, an increase from MOP 86,226,000 as of December 31, 2018, reflecting a growth of approximately 1.12%[177]. - The impairment loss allowance for contract assets increased to MOP 1,208,000 as of June 30, 2019, compared to MOP 504,000 as of December 31, 2018, representing a significant rise of 139.68%[193]. - The total exposure to credit risk for contract assets as of June 30, 2019, was MOP 87,196,000, with Group 1 accounting for MOP 61,425,000, which is 70.5% of the total[185].

Financial Performance - The Group's revenue increased by approximately 6.2% from approximately MOP 245.4 million in 2017 to approximately MOP 260.6 million in 2018[13]. - The profit after tax for the year ended 31 December 2018 was approximately MOP 16.8 million, representing a decrease of approximately 24.3% compared to the previous financial year[13]. - The Group's revenue for the year ended December 31, 2018, increased by approximately MOP 15.2 million or 6.2%, primarily due to a rise in building and ancillary services revenue of approximately MOP 13.2 million or 5.7%[28]. - The Group's gross profit margin decreased to approximately 14.1% for the year ended December 31, 2018, down from approximately 15.7% in 2017, reflecting a gross profit decline of approximately MOP 1.5 million or 3.9%[29]. - The Group's profit for the year increased by approximately MOP10.7 million or 175.4% from approximately MOP6.1 million for the year ended 31 December 2017 to approximately MOP16.8 million for the year ended 31 December 2018[44]. - The Group's total comprehensive income for the year increased by approximately MOP10.2 million or 167.2% from approximately MOP6.1 million for the year ended 31 December 2017 to approximately MOP16.3 million for the year ended 31 December 2018[52]. - Basic earnings per share for the year ended 31 December 2018 was approximately MOP1.68 cents, representing an increase of approximately MOP0.90 cents or 115.4% compared to MOP0.78 cents in 2017[47]. Project Management and Operations - The Group completed 46 projects and was awarded 36 new projects during the year ended 31 December 2018[13]. - A total of 33 building and ancillary services projects were awarded during the year, with an aggregate contract sum of MOP 383.7 million, while 43 projects were completed[26]. - As of December 31, 2018, the Group's backlog included 17 building and ancillary services projects with an aggregate outstanding contract sum of MOP 271.7 million[26]. - The Group aims to strengthen its position as an integrated construction contractor in Macau and undertake larger scale projects due to expected growth in the construction market[20]. - The Group's services include building and ancillary services as well as emergency repair services, primarily in Macau[10]. - The Group has accumulated experience in providing a wide spectrum of construction services since its establishment in 2006[10]. Market and Industry Outlook - The demand for building and ancillary services is expected to grow, supported by the redevelopment of the gaming and tourism industry in Macau[21]. - The future growth and profitability of the construction industry in Macau depend on the availability of major construction projects, influenced by government spending, property developer investments, and economic conditions[60]. - The Group expects the demand in the construction industry in Macau to continue growing due to the redevelopment of the gaming and tourism industry[112]. Financial Management and Expenses - Administrative expenses rose by approximately MOP 5.0 million or 39.7% from MOP 12.6 million in 2017 to MOP 17.6 million in 2018, mainly due to costs associated with maintaining listing status and increased staff costs[36]. - The Group's finance costs decreased by approximately MOP41,000 or 27.2% from approximately MOP151,000 for the year ended 31 December 2017 to approximately MOP110,000 for the year ended 31 December 2018[42]. - The Group's income tax expense decreased by approximately MOP0.9 million or 23.7% from approximately MOP3.8 million for the year ended 31 December 2017 to approximately MOP2.9 million for the year ended 31 December 2018[43]. - The Group's gross staff costs from operations for the year ended 31 December 2018 were approximately MOP41.2 million, a decrease from MOP41.8 million in 2017[104]. Risk Management and Compliance - The Group has established competitive strengths including a stable relationship with major customers and stringent quality control[12]. - The Group has adopted risk management measures to ensure subcontractors comply with occupational health and safety regulations, conducting regular reviews and inspections[69]. - The Group has established a network of suppliers and subcontractors to ensure timely delivery and compliance with quality standards, mitigating risks associated with project execution[67]. - The Group's credit risk is primarily attributable to trade receivables, contract assets, and other receivables as of December 31, 2018[91]. - The Group's operations are significantly affected by the gaming industry in Macau, which has experienced a slowdown due to anti-corruption measures by the PRC Government[62]. Governance and Management Structure - The company has a strong governance structure with independent directors overseeing operations and providing strategic insights[126]. - The company emphasizes the importance of independent oversight in its management practices[126]. - The company aims to leverage the expertise of its directors to enhance operational efficiency and market positioning[130]. - The company is committed to achieving high standards of corporate governance to safeguard shareholder interests and enhance corporate value[148]. - The board has met the requirements of the Listing Rules, maintaining at least three independent non-executive directors, representing over 60% of the board[164]. - The company has adopted a Nomination Policy to evaluate and select candidates for directorships based on criteria such as character, qualifications, and independence[166]. Human Resources - The Group's employee count decreased to 79 full-time employees as of 31 December 2018, down from 87 in 2017[104]. - The Group has allocated approximately HK$10.8 million for further strengthening manpower, with HK$6.3 million already utilised[110]. - The management team is focused on strategic planning and execution to drive the company's growth and market expansion[148]. Cash Flow and Financial Position - As of December 31, 2018, the Group had bank balances and cash of approximately MOP 65.8 million, a decrease from MOP 120.6 million in 2017, with no bank overdrafts reported[79]. - The current ratio increased from 3.3 times as of December 31, 2017, to 4.7 times as of December 31, 2018, primarily due to a significant decrease in current liabilities[14]. - The gearing ratio decreased from 1.8% as of December 31, 2017, to 1.2% as of December 31, 2018, attributed to a decrease in bank borrowings and an increase in total equity[14]. - The Group had an aggregate of pledged bank deposits of approximately MOP 32.3 million as of December 31, 2018, compared to MOP 0.2 million in 2017, used to secure banking facilities[79].