股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 萬順集團(控股)有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01746 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.01 | HKD | | 50,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.01 | HKD | | 50,000,000 | 本月底法 ...

Core Viewpoint - The company reported a significant decline in revenue and a net loss for the first half of 2025, primarily due to a sluggish real estate market and slow growth in the construction industry in Hong Kong [1] Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 44.017 million, representing a year-on-year decrease of 36.56% [1] - The net loss for the period was HKD 1.446 million, which is a reduction of 21.41% compared to the previous year [1] - Basic loss per share was HKD 0.14 [1] Industry Context - The decline in performance is attributed to the downturn in the real estate sector and the slow growth in the construction industry in Hong Kong, which has affected developers' ability to build and reduced the number of new projects available for tender [1] - Several projects faced delays or suspensions in their commencement or construction progress during the reporting period [1]

Core Viewpoint - Wan Shun Group Holdings (01746) reported a significant decline in revenue and an increase in net loss for the six months ending June 30, 2025, primarily due to a sluggish real estate market and slow growth in the construction industry in Hong Kong [1] Financial Performance - The company achieved revenue of HKD 44.017 million, representing a year-on-year decrease of 36.56% [1] - The net loss for the period was HKD 1.446 million, which is a year-on-year decrease of 21.41% [1] - Basic loss per share was HKD 0.14 cents [1] Industry Context - The decline in revenue and increase in losses are attributed to the poor performance of the real estate sector in 2025 and the slow growth in the construction industry in Hong Kong [1] - The slowdown in the construction sector has affected developers' ability to build and has reduced the number of new projects available for tender [1] - Several projects faced delays or suspensions in their commencement and/or construction progress during the reporting period [1]

Group 1 - The company reported a revenue of HKD 44.017 million for the six months ending June 30, 2025, representing a year-on-year decrease of 36.6% [1] - Gross profit was HKD 9.37 million, showing a year-on-year increase of 48.7% [1] - The loss attributable to equity shareholders was HKD 1.446 million, an improvement from a loss of HKD 1.84 million in the same period last year [1] - Basic loss per share was HKD 0.14 [1]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 佈 的 內 容 概 不 負 責 ， 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明 ， 並 明 確 表 示 ， 概 不 就 因 本 公 佈 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任何責任 。 MAN SHUN GROUP (HOLDINGS) LIMITED 萬 順 集 團（ 控 股 ）有 限 公 司 （ 於開曼群島註 冊成立 的有限公司 ） （ 股份代號：1746 ） 董事會會議日期 萬 順 集 團（ 控 股 ）有 限 公 司（「本 公 司 」）董 事 會（「董 事 會 」）謹 此 宣 佈 ， 本 公 司 將 於 二 零 二五年八月二十七日（ 星 期 三）舉 行 董 事 會 會 議 ， 董 事 會 將 於 會 上 （ 其 中 包 括 ）批 准 刊 發 本 公 司 及 其 附 屬 公 司 截 至 二 零 二 五年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 中 期 業 績 ， 以 及 考 慮 ...

Financial Performance - For the year ended December 31, 2024, the Group recorded a revenue of approximately HK$131,256,000, a year-on-year decrease of 14.2% compared to HK$152,950,000 in the previous financial year[15]. - The loss attributable to the equity shareholders of the Company was approximately HK$6,861,000, compared to a profit of approximately HK$680,000 in 2023[15]. - The Group's revenue decreased by approximately HK$21,694,000 or 14.2% to approximately HK$131,256,000 for the year ended December 31, 2024, primarily due to a suspension of a project in Tuen Mun[31]. - The Group's gross profit decreased by approximately HK$5,825,000 or 30.3% to approximately HK$13,382,000 for the year ended December 31, 2024, with a gross profit margin decline from approximately 12.6% to 10.2%[37]. - The cost of services decreased by approximately HK$15,869,000 or 11.9% to approximately HK$117,874,000 for the year ended December 31, 2024, compared to approximately HK$133,743,000 for the previous year[36]. - The total staff costs for the year ended December 31, 2024, were approximately HK$26,098,000, down from approximately HK$32,157,000 in 2023[88]. Assets and Liabilities - Current assets decreased to HK$134,840,000 in 2024 from HK$170,597,000 in 2023, reflecting a decline of 21%[12]. - Non-current assets decreased to HK$1,661,000 in 2024 from HK$2,116,000 in 2023, a reduction of 21.5%[12]. - Current liabilities decreased to HK$15,381,000 in 2024 from HK$20,364,000 in 2023, a decrease of 24.5%[12]. - The net assets of the Group were HK$120,967,000 in 2024, down from HK$151,828,000 in 2023, representing a decline of 20.4%[12]. - The Group's net current assets were approximately HK$119,459,000 as of December 31, 2024, down from approximately HK$150,233,000 in 2023[63][69]. - The quick ratio improved to approximately 8.7 times as of December 31, 2024, compared to approximately 8.3 times in 2023[63][69]. - The Group's gearing ratio was approximately 0.7% as of December 31, 2024, down from 1.0% in 2023[66][72]. Market Conditions and Future Outlook - The Group's operations faced challenges due to sluggish property transactions and a weak property market, impacting revenue generation[16]. - The construction industry in Hong Kong is expected to gradually recover, which may benefit the Group's operations moving forward[17]. - The property value threshold for levying the Stamp Duty will be raised from HK$3 million to HK$4 million effective February 26, 2025, which may positively influence the market[17]. - The Group aims to maintain relationships with suppliers and customers while exploring potential development opportunities to enhance future profitability[18]. - Competition is expected to remain keen, with profit margins tightening due to rising labor and operating costs[58][62]. Dividends and Shareholder Information - A special dividend of HK2.40 cents per ordinary share was declared on July 25, 2024, while no final dividend was recommended for the year ended December 31, 2024[48][54]. - The Group does not have a fixed dividend policy, and future dividends will depend on various factors including operations, earnings, and cash flow position[154]. - The Board has approved a special dividend of HK2.40 cents per ordinary share for the year ended 31 December 2024, compared to no dividend in 2023[153]. - The Company will hold its Annual General Meeting on June 5, 2025[159]. Management and Governance - The Group's overall strategy planning, business development, and corporate management are primarily overseen by Mr. Tony Cheung and Mr. Gary Cheung[103]. - The Group's management team is responsible for significant contract approvals, investment decisions, and senior management appointments[106]. - The combined experience of the management team exceeds 100 years in the air-conditioning and engineering services sector, positioning the Group for future growth[106]. - The Board received annual confirmations of independence from all independent non-executive Directors and considers them to be independent[188]. Risks and Compliance - The Group faces risks such as reliance on major customers and fluctuations in revenue and profit margins due to various factors[150]. - There were no material breaches of laws and regulations that significantly impacted the Group's business and operations during the year[140]. - The Group currently does not have a foreign currency hedging policy due to insignificant foreign currency risk exposure[87]. - The Group's monetary assets and liabilities are primarily denominated in Hong Kong dollars, minimizing foreign exchange risk[86]. Customer and Supplier Concentration - For the year ended December 31, 2024, 35.3% of the Group's revenue was generated from the largest customer, while the five largest customers accounted for 99.5% of total revenue[186]. - The largest supplier represented approximately 22.4% of the total direct costs, with the five largest suppliers accounting for 46.1%[186].

Financial Performance - For the fiscal year ending December 31, 2024, the group recorded revenue of approximately HKD 131,256,000, a decrease of 14.3% compared to HKD 152,950,000 in 2023[2] - The company reported a loss attributable to equity shareholders of approximately HKD 6,861,000 for the fiscal year, compared to a profit of HKD 680,000 in 2023[2] - Basic and diluted loss per share for the fiscal year was HKD 0.69, compared to earnings of HKD 0.07 per share in 2023[2] - The group's gross profit for the fiscal year was HKD 13,382,000, down from HKD 19,207,000 in 2023, reflecting a decline in service revenue[4] - The group reported a total revenue of HKD 131,256,000 for the year ending December 31, 2024, compared to HKD 152,950,000 for the year ending December 31, 2023, indicating a decrease of approximately 14.2%[14] - Revenue from services recognized over time amounted to HKD 89,332,000 for the year ending December 31, 2024, down from HKD 121,873,000 in the previous year, reflecting a decline of about 26.6%[15] - The net installation services revenue was HKD 16,796,000 for the year ending December 31, 2024, a significant decrease from HKD 70,568,000 in the previous year, representing a decline of about 76.2%[15] - Other income for the fiscal year 2024 is reported at HKD 8,061,000, a decrease from HKD 10,026,000 in 2023, with bank interest income at HKD 2,444,000 and maintenance services income at HKD 5,071,000[18] - The pre-tax profit for the fiscal year 2024 is reported at HKD 26,098,000, down from HKD 32,157,000 in 2023, with employee costs amounting to HKD 25,254,000[19] Dividends and Shareholder Returns - The board of directors does not recommend the payment of a final dividend for the fiscal year ending December 31, 2024[2] - A special dividend of HKD 0.024 per ordinary share is proposed for the fiscal year 2024, totaling HKD 24,000,000, while no final dividend is recommended for the fiscal year 2023[22] - A special dividend of HKD 0.024 per share was approved and declared for the year ended December 31, 2024, while no final dividend was recommended[40] Assets and Liabilities - Total assets decreased to HKD 134,840,000 in 2024 from HKD 170,597,000 in 2023, indicating a reduction in both current and non-current assets[5] - The group's net current assets were HKD 119,459,000, down from HKD 150,233,000 in the previous year, highlighting liquidity challenges[5] - The total equity attributable to shareholders decreased to HKD 120,967,000 in 2024 from HKD 151,828,000 in 2023, reflecting a decline in shareholder value[5] - Trade receivables as of December 31, 2024, amounted to HKD 27,226,000, an increase from HKD 21,724,000 in 2023[25] - The expected recoverable amount of retention money is approximately HKD 15,796,000 for 2024, up from HKD 14,185,000 in 2023[25] - Contract assets from installation contracts amounted to HKD 17,990,000 in 2024, down from HKD 28,739,000 in 2023[27] - Trade payables as of December 31, 2024, were HKD 4,261,000, a decrease from HKD 11,771,000 in 2023[28] - The group's current assets net value as of December 31, 2024, was approximately HKD 119,459,000, down from HKD 150,233,000 in 2023, with a quick ratio of about 8.7 times[46] - The asset-liability ratio as of December 31, 2024, was approximately 0.7%, down from 1.0% in 2023[49] Operational Overview - The company primarily engages in providing heating, ventilation, and air conditioning system installation services in Hong Kong[6] - The group operates solely in the HVAC business in Hong Kong, with no further independent financial data or analysis presented for separate operating segments[14] - The company aims to strengthen its market position as a leading HVAC engineering service provider in Hong Kong[30] - The group continues to enhance financial management and licensing qualifications to solidify its position in the property development value chain[30] - The company anticipates the suspended construction project will resume in 2026, impacting future revenue growth[32] - The group plans to enhance service capabilities to capture business opportunities in HVAC engineering services while pursuing prudent financial management strategies for sustainable growth[45] Financial Management and Compliance - The group has applied the revised Hong Kong Financial Reporting Standards for the current financial period, which did not have a significant impact on the consolidated financial statements[13] - The group’s financial statements are prepared using the historical cost basis, ensuring consistency in financial reporting[8] - The group’s auditor confirmed that the financial data for the year ending December 31, 2024, is consistent with the preliminary performance announcement[8] - The group has not disclosed any significant impacts from the application of the revised accounting policies on its financial position and performance for the current and prior years[9] - The group’s financial reporting adheres to the Hong Kong Financial Reporting Standards, ensuring compliance with local accounting regulations[10] - The company has adhered to the corporate governance code and has implemented the relevant principles to enhance shareholder value[65] Employee and Capital Management - As of December 31, 2024, the group had 64 employees, down from 71 in 2023, with total employee costs amounting to approximately HKD 26,098,000, a decrease from HKD 32,157,000 in 2023[58] - Capital expenditure for the year ended December 31, 2024, was approximately HKD 1,482,000, compared to HKD 1,874,000 in 2023, primarily for vehicles, computers, and office equipment[50] - The group has no significant capital commitments as of December 31, 2024, consistent with the previous year[51] - The company has not made any significant investments or acquisitions in subsidiaries or associates during the year ended December 31, 2024[55] Shareholder Engagement and Governance - The company has adopted a share option scheme to incentivize and reward eligible participants for their contributions to the group[62] - The share options granted under the scheme cannot be exercised after ten years from the date of grant[63] - The company has confirmed compliance with the non-competition agreement established with its controlling shareholders since July 11, 2018[59] - There are no interests held by directors or controlling shareholders that could potentially compete with the group's business[60] - The audit committee is responsible for ensuring the group's assets and reviewing the financial reporting procedures and internal controls[69] - The annual report for the year ending December 31, 2024, will include all information required by the listing rules and will be sent to shareholders in due course[70]

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's board, committees, and essential corporate details [Board of Directors and Committee Members](index=3&type=section&id=Board%20of%20Directors%20and%20Committee%20Members) The company's board comprises executive and independent non-executive directors, with established Audit, Remuneration, and Nomination Committees - Executive Directors include **Mr. Cheung Yuen Tung (Chairman)** and **Mr. Cheung Yuen Chau**[3](index=3&type=chunk) - Independent Non-Executive Director **Mr. Lau Yu Ching resigned on June 14, 2024**, and **Ms. Ngai Yuk Chun was appointed on the same day**[3](index=3&type=chunk) - Changes in the Audit, Remuneration, and Nomination Committees reflect the replacement of independent non-executive directors[3](index=3&type=chunk) [Company Particulars](index=3&type=section&id=Company%20Particulars) Key company information includes the company secretary, principal bankers, auditor, registered office, and stock details - The Company Secretary is **Ms. Pin Wan Man**[4](index=4&type=chunk) - Principal bankers are **Bank of China (Hong Kong) Limited** and **Nanyang Commercial Bank, Limited**[4](index=4&type=chunk) - The auditor is **Deloitte Touche Tohmatsu**[3](index=3&type=chunk) - The company's stock code is **1746**, and its website is **http://www.manshungroup.com.hk**[3](index=3&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the company's financial performance, highlighting revenue, expenses, and net profit or loss for the period [Profit or Loss Overview](index=3&type=section&id=Profit%20or%20Loss%20Overview) For the six months ended June 30, 2024, the Group turned from profit to a net loss of HK$1,840 thousand, compared to a profit of HK$1,353 thousand in the prior period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 69,388 | 69,852 | | Cost of services | (63,086) | (60,464) | | Gross profit | 6,302 | 9,388 | | Other income | 3,782 | 5,968 | | Administrative expenses | (11,938) | (13,988) | | Finance costs | (46) | (15) | | (Loss)/Profit before tax | (1,900) | 1,353 | | Income tax credit | 60 | - | | Total comprehensive (expense)/income for the period | (1,840) | 1,353 | | Basic (loss)/earnings per share (HK cents) | (0.18) | 0.14 | - Revenue slightly decreased by **0.7% year-on-year to HK$69,388 thousand**[4](index=4&type=chunk) - Gross profit decreased by **32.9% year-on-year to HK$6,302 thousand**[4](index=4&type=chunk) - Administrative expenses decreased by **14.7% year-on-year to HK$11,938 thousand**[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section outlines the company's financial position, detailing assets, liabilities, and equity at the reporting date [Assets and Liabilities Overview](index=5&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2024, the Group's total assets less current liabilities were HK$150,262 thousand, with net assets of HK$149,988 thousand, a slight decrease from December 31, 2023 Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Non-current assets | 2,286 | 2,116 | | Current assets | 158,605 | 170,597 | | Current liabilities | 10,629 | 20,364 | | Net current assets | 147,976 | 150,233 | | Total assets less current liabilities | 150,262 | 152,349 | | Non-current liabilities | 274 | 521 | | Net assets | 149,988 | 151,828 | | Total equity | 149,988 | 151,828 | - Net current assets were **HK$147,976 thousand**, a slight decrease from **HK$150,233 thousand** at the end of 2023[6](index=6&type=chunk) - Bank and cash at hand decreased to **HK$82,315 thousand** from **HK$88,370 thousand** at the end of 2023[6](index=6&type=chunk) - Trade and other payables significantly decreased by **47.9% to HK$9,453 thousand**[6](index=6&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details the changes in the company's equity components over the reporting period [Equity Changes Overview](index=5&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2024, the Group's total equity decreased to HK$149,988 thousand due to the loss for the period, while share capital and share premium remained unchanged Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Item | Share Capital (HK$ thousand) | Merger Reserve (HK$ thousand) | Share Premium (HK$ thousand) | Retained Earnings (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2024 | 10,000 | 2,010 | 107,850 | 31,968 | 151,828 | | Loss and total comprehensive expense for the period | - | - | - | (1,840) | (1,840) | | As at June 30, 2024 | 10,000 | 2,010 | 107,850 | 30,128 | 149,988 | | As at January 1, 2023 | 10,000 | 2,010 | 107,850 | 31,288 | 151,148 | | Profit and total comprehensive income for the period | - | - | - | 1,353 | 1,353 | | As at June 30, 2023 | 10,000 | 2,010 | 107,850 | 32,641 | 152,501 | - In the first half of 2024, retained earnings decreased due to a **loss of HK$1,840 thousand** for the period[8](index=8&type=chunk) - Share capital and share premium remained **unchanged** during the reporting period[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities for the reporting period [Cash Flow Overview](index=7&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2024, the Group reported net cash used in operating activities of HK$6,293 thousand, net cash from investing activities of HK$975 thousand, and net cash used in financing activities of HK$737 thousand, resulting in a net decrease in cash and cash equivalents of HK$6,055 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Activity Type | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Net cash (used in)/from operating activities | (6,293) | (1,353) | | Net cash from investing activities | 975 | 1,380 | | Net cash used in financing activities | (737) | (737) | | Net (decrease)/increase in cash and cash equivalents | (6,055) | (710) | | Cash and cash equivalents at beginning of period | 88,370 | 89,080 | | Cash and cash equivalents at end of period | 82,315 | 88,370 | - Cash outflow from operating activities was primarily influenced by **loss before tax and changes in working capital**[10](index=10&type=chunk) - Cash inflow from investing activities mainly resulted from **interest received and proceeds from disposal of property, plant and equipment**[10](index=10&type=chunk) - Cash and cash equivalents at the end of the period amounted to **HK$82,315 thousand**, a decrease from the beginning of the period[10](index=10&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes and explanations supporting the condensed consolidated interim financial statements [1. General Information](index=8&type=section&id=1.%20General%20Information) The Company, incorporated in the Cayman Islands, is listed on the Main Board of the Stock Exchange of Hong Kong, with the Group primarily engaged in HVAC system installation services in Hong Kong - The Company was **listed on the Main Board of the Stock Exchange of Hong Kong on July 11, 2018**[11](index=11&type=chunk) - The Group's principal business is providing **heating, ventilation and air-conditioning system installation services in Hong Kong**[11](index=11&type=chunk) [2. Basis of Preparation](index=8&type=section&id=2.%20Basis%20of%20Preparation) The interim financial report is prepared in accordance with the Listing Rules and HKAS 34, adopting the same accounting policies as the annual consolidated financial statements, and has been reviewed but not audited by the Audit Committee - The interim financial report complies with **Hong Kong Accounting Standard 34** issued by the Hong Kong Institute of Certified Public Accountants[13](index=13&type=chunk) - The basis of preparation is consistent with the accounting policies adopted in the **annual consolidated financial statements for the year ended December 31, 2023**, except for expected changes in accounting policies[13](index=13&type=chunk) - The interim financial report is **unaudited but has been reviewed by the Company's Audit Committee**[15](index=15&type=chunk) [3. Changes in Accounting Policies](index=9&type=section&id=3.%20Changes%20in%20Accounting%20Policies) Certain amendments to Hong Kong Financial Reporting Standards, issued by the HKICPA, became effective during the period but had no significant impact on the Group's financial position or performance - Effective amendments include those to **HKFRS 16, HKAS 1, and HKAS 7**[16](index=16&type=chunk) - None of the amendments had a **significant impact on the Group's financial position and performance** for the current and prior periods[16](index=16&type=chunk) [4. Revenue and Segment Information](index=9&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Group's revenue is primarily derived from its HVAC business in Hong Kong, operating as a single segment, with installation services including HVAC system procurement showing a significant increase in proportion - The Group operates solely in Hong Kong and has only a **single operating segment: the HVAC business**[17](index=17&type=chunk) Revenue Breakdown (For the six months ended June 30) | Time of Revenue Recognition | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Products transferred at a point in time | 24,527 | 8,705 | | Services transferred over time | 44,861 | 61,147 | | **Total** | **69,388** | **69,852** | | Service Type | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Net installation services | 9,928 | 40,614 | | Installation services with procurement of HVAC systems | 59,460 | 29,238 | | **Total** | **69,388** | **69,852** | - Revenue from **installation services with procurement of HVAC systems** significantly increased from **42% in 2023 to 86% in 2024**[17](index=17&type=chunk) [5. Other Income](index=11&type=section&id=5.%20Other%20Income) Total other income for the reporting period was HK$3,782 thousand, a decrease from HK$5,968 thousand in the prior period, mainly due to reduced repair and other service income and sales of materials Other Income (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 1,558 | 1,181 | | Repair and other service income | 1,599 | 3,742 | | Sales of materials | 431 | 701 | | Gain on disposal of property, plant and equipment | 174 | 10 | | Gain on early termination of lease | 3 | 2 | | Sundry income | 17 | 332 | | **Total** | **3,782** | **5,968** | - **Repair and other service income** decreased from **HK$3,742 thousand to HK$1,599 thousand**, being the primary reason for the reduction in other income[20](index=20&type=chunk) [6. (Loss)/Profit before Tax](index=11&type=section&id=6.%20(Loss)%2FProfit%20before%20Tax) The loss before tax was primarily influenced by finance costs, staff costs, and depreciation, with finance costs increasing while staff costs and depreciation expenses decreased during the reporting period Finance Costs (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Interest on lease liabilities | 46 | 15 | Staff Costs (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 12,107 | 14,724 | | Contributions to defined contribution retirement plans | 427 | 522 | | **Total** | **12,534** | **15,246** | Other Items (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment owned | 203 | 350 | | Depreciation of right-of-use assets included in administrative expenses | 426 | 547 | | Depreciation of right-of-use assets included in cost of services | 273 | 157 | | **Total depreciation** | **902** | **1,054** | | Gain on disposal of property, plant and equipment | (174) | (10) | | Gain on early termination of lease | (3) | (2) | [7. Income Tax Credit](index=13&type=section&id=7.%20Income%20Tax%20Credit) The Group recorded an income tax credit of HK$60 thousand for the reporting period, primarily because no provision for Hong Kong Profits Tax was made due to tax losses or sufficient unutilised tax losses Income Tax Credit (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Current tax — Hong Kong Profits Tax | 60 | - | | Over-provision in prior years | - | - | - No provision for Hong Kong Profits Tax was made as the Company and its Hong Kong subsidiaries incurred **tax losses or had sufficient unutilised tax losses** to offset assessable profits[27](index=27&type=chunk) [8. Dividends](index=13&type=section&id=8.%20Dividends) The Board did not recommend an interim dividend for the reporting period; however, a special dividend of HK2.4 cents per ordinary share was declared on July 25, 2024 - The Board did not recommend the payment of any **interim dividend for the six months ended June 30, 2024**[28](index=28&type=chunk) - The Board declared a **special dividend of HK2.4 cents per ordinary share on July 25, 2024**[28](index=28&type=chunk) [9. (Loss)/Earnings Per Share](index=13&type=section&id=9.%20(Loss)%2FEarnings%20Per%20Share) For the six months ended June 30, 2024, basic loss per share was HK0.18 cents, compared to basic earnings per share of HK0.14 cents in the prior period, with diluted loss/earnings per share being the same due to no potential dilutive ordinary shares (Loss)/Earnings Per Share (For the six months ended June 30) | Indicator | 2024 (HK cents) | 2023 (HK cents) | | :--- | :--- | :--- | | Basic (loss)/earnings per share | (0.18) | 0.14 | | Diluted (loss)/earnings per share | (0.18) | 0.14 | - Basic loss per share was calculated based on the **loss attributable to ordinary equity holders of the Company of HK$1,840,000** and **1,000,000,000 ordinary shares** in issue during the period[29](index=29&type=chunk) - Diluted (loss)/earnings per share was the same as basic (loss)/earnings per share due to the **absence of potential dilutive ordinary shares** in issue[30](index=30&type=chunk) [10. Property, Plant and Equipment](index=14&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2024, the net book value of property, plant and equipment was HK$2,286 thousand, and right-of-use assets were HK$1,286 thousand, with additions to right-of-use assets amounting to HK$659 thousand during the period Property, Plant and Equipment Net Book Value Reconciliation | Item | December 31, 2023 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Leasehold land and buildings | 1,305 | 1,137 | | Furniture and fixtures | 2 | 2 | | Computer and office equipment | 225 | 179 | | Motor vehicles | 584 | 968 | | **Total** | **2,116** | **2,286** | Right-of-Use Assets Net Book Value Analysis | Item | December 31, 2023 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Other self-occupied leasehold properties | 1,305 | 1,137 | | Computer and office equipment | 187 | 149 | | **Total** | **1,492** | **1,286** | - Additions to right-of-use assets during the period amounted to **HK$659 thousand**, primarily for **capitalised lease payments under office premises leases**[33](index=33&type=chunk) [11. Inventories](index=16&type=section&id=11.%20Inventories) As of June 30, 2024, the Group's inventories primarily consisted of raw materials, totaling HK$2,066 thousand, a slight decrease from HK$2,225 thousand as of December 31, 2023 Inventories (As of June 30) | Item | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Raw materials | 2,066 | 2,225 | [12. Trade and Other Receivables](index=17&type=section&id=12.%20Trade%20and%20Other%20Receivables) As of June 30, 2024, total trade and other receivables were HK$50,690 thousand, a slight decrease from HK$51,263 thousand as of December 31, 2023, with trade receivables decreasing and retention receivables increasing Trade and Other Receivables (As of June 30) | Item | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 18,763 | 21,724 | | Deposits, prepayments and other receivables | 2,358 | 2,814 | | Retention receivables (net of loss allowance) | 29,569 | 26,725 | | **Total** | **50,690** | **51,263** | Trade Receivables Ageing Analysis (As of June 30) | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 17,315 | 20,859 | | 1 to 3 months | - | 138 | | Over 3 months | 1,448 | 727 | | **Total** | **18,763** | **21,724** | - Retention receivables expected to be recovered after one year increased from **HK$14,185 thousand at the end of 2023 to HK$22,568 thousand** as of June 30, 2024[39](index=39&type=chunk) [13. Cash and Cash Equivalents](index=18&type=section&id=13.%20Cash%20and%20Cash%20Equivalents) As of June 30, 2024, the Group's bank and cash at hand amounted to HK$82,315 thousand, a decrease from HK$88,370 thousand as of December 31, 2023 Cash and Cash Equivalents (As of June 30) | Item | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Bank and cash at hand | 82,315 | 88,370 | [14. Trade and Other Payables](index=18&type=section&id=14.%20Trade%20and%20Other%20Payables) As of June 30, 2024, total trade and other payables were HK$9,453 thousand, a significant decrease from HK$19,157 thousand as of December 31, 2023, mainly due to reductions in trade payables and accrued subcontracting costs Trade and Other Payables (As of June 30) | Item | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 6,131 | 11,771 | | Accrued subcontracting costs | 880 | 2,665 | | Other payables and accrued charges | 2,121 | 4,391 | | Provision for long service payments | 321 | 330 | | **Total** | **9,453** | **19,157** | Trade Payables Ageing Analysis (As of June 30) | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 2,698 | 5,905 | | 1 to 2 months | 2,772 | 5,496 | | 2 to 3 months | - | 100 | | Over 3 months | 661 | 270 | | **Total** | **6,131** | **11,771** | [15. Share Capital](index=19&type=section&id=15.%20Share%20Capital) As of June 30, 2024, the Company's authorised ordinary shares were 5,000,000,000 with a par value of HK$0.01 each, and issued and fully paid ordinary shares were 1,000,000,000, totaling HK$10,000 thousand, unchanged from the end of 2023 Share Capital Structure (As of June 30) | Item | Number of Shares | Amount (HK$ thousand) | | :--- | :--- | :--- | | Authorised ordinary shares | 5,000,000,000 | 50,000 | | Issued and fully paid ordinary shares | 1,000,000,000 | 10,000 | - Holders of ordinary shares are entitled to receive **dividends as declared from time to time** and have **one vote per share** at general meetings of the Company[46](index=46&type=chunk) [16. Related Party Transactions](index=20&type=section&id=16.%20Related%20Party%20Transactions) For the six months ended June 30, 2024, the Group's lease payments to a related company amounted to HK$570 thousand, a slight decrease from HK$597 thousand in the prior period Related Party Transactions (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Lease payments paid to a related company | 570 | 597 | [17. Retirement Benefit Scheme](index=20&type=section&id=17.%20Retirement%20Benefit%20Scheme) The Group operates a Mandatory Provident Fund Scheme (MPF Scheme) for its Hong Kong employees, a defined contribution retirement plan where both employer and employee contribute 5% of the employee's relevant income - The Group operates a **Mandatory Provident Fund Scheme (MPF Scheme)** for its employees in Hong Kong[50](index=50&type=chunk) - Both employer and employee are required to contribute **5% of the employee's relevant income** to the scheme, subject to a monthly relevant income cap of **HK$30,000**[50](index=50&type=chunk) [18. Capital Commitments](index=20&type=section&id=18.%20Capital%20Commitments) As of June 30, 2024, and December 31, 2023, the Group had no significant capital commitments - The Group had **no significant capital commitments** at the end of the reporting period[51](index=51&type=chunk) [19. Subsequent Events](index=20&type=section&id=19.%20Subsequent%20Events) On July 25, 2024, the Company declared a special dividend of HK2.40 cents per ordinary share, payable on or about August 30, 2024 - The Company declared a **special dividend of HK2.40 cents per ordinary share on July 25, 2024**[52](index=52&type=chunk) - The special dividend will be paid on or about **August 30, 2024**, to shareholders whose names appear on the register of members on **August 12, 2024**[52](index=52&type=chunk) [20. Contingent Liabilities](index=21&type=section&id=20.%20Contingent%20Liabilities) As of June 30, 2024, the Group had a contingent liability related to a legal claim of HK$871,664 from a subcontractor against a subsidiary, for which management believes there is a reasonable chance of successful defense and has made no provision Contingent Liabilities (As of June 30) | Item | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Legal proceedings | 872 | 872 | - A subcontractor sued **Man Tung Air-Conditioning Engineering Limited**, a subsidiary of the Company, for **HK$871,664**[53](index=53&type=chunk) - Management believes there is a **reasonable chance of successfully defending the claim and pursuing a counterclaim**, thus no provision has been made at this stage[53](index=53&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's business performance, financial condition, and future outlook [Business Review](index=22&type=section&id=Business%20Review) The Group, a long-established HVAC E&M engineering services provider in Hong Kong, recorded a net loss in the first half of 2024 due to a weak property market, slowed project progress, and rising raw material prices - The Group is a **long-established HVAC E&M engineering services provider in Hong Kong**, with operations dating back to **1996**[54](index=54&type=chunk) - In the first half of 2024, the **weak Hong Kong property market** and **slowed building construction** affected new project tenders[54](index=54&type=chunk) - **Raw material prices significantly increased in the second quarter of the year**, leading to a **net loss of approximately HK$1,840 thousand** for the Group[54](index=54&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) The Group's revenue slightly decreased, while gross profit and margin significantly declined due to rising material costs; administrative expenses were controlled, a loss was recorded, but a special dividend was declared, with trade receivables decreasing and payables significantly reducing Revenue, Gross Profit and Gross Profit Margin (For the six months ended June 30) | Service Type | 2024 Revenue (HK$ thousand) | 2024 Gross Profit (HK$ thousand) | 2024 Gross Profit Margin (%) | 2023 Revenue (HK$ thousand) | 2023 Gross Profit (HK$ thousand) | 2023 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net installation services | 9,928 | 207 | 2% | 40,614 | 6,450 | 16% | | Installation services with procurement of HVAC systems | 59,460 | 6,095 | 10% | 29,238 | 2,938 | 10% | | **Total** | **69,388** | **6,302** | **9%** | **69,852** | **9,388** | **13%** | - Total revenue slightly decreased by approximately **0.7% to HK$69,388 thousand**[56](index=56&type=chunk) - Gross profit decreased by **32.9% to HK$6,302 thousand**, with gross profit margin falling from **13.4% to 9.1%**, primarily due to **rising prices of materials and consumables**[59](index=59&type=chunk) Breakdown of Cost of Services (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2024 Proportion (%) | 2023 (HK$ thousand) | 2023 Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Subcontracting fees | 19,033 | 30% | 24,643 | 41% | | Materials and consumables | 34,531 | 55% | 22,489 | 37% | | Direct labour | 6,330 | 10% | 8,383 | 14% | | Storage fees | 1,674 | 3% | - | 0% | | Others | 1,518 | 2% | 4,949 | 8% | | **Total** | **63,086** | **100%** | **60,464** | **100%** | - Administrative expenses decreased to **HK$11,938 thousand**, mainly due to a **reduction in subcontracting expenses related to repair and other service businesses**[60](index=60&type=chunk) - Trade receivables decreased by **13.6% to HK$18,763 thousand**, while retention receivables increased by **HK$2,844 thousand to HK$29,569 thousand**[62](index=62&type=chunk) - Trade payables decreased by **47.9% to HK$6,131 thousand**, primarily due to **significant procurement of HVAC systems at the end of the last financial year**[64](index=64&type=chunk) [Future Prospects](index=26&type=section&id=Future%20Prospects) The Group plans to expand service capabilities and adopt prudent financial management for steady growth, despite facing intense competition, rising costs, and economic uncertainty, having secured two new projects and intending to enhance budget management and team optimization - The Group will further **expand its service capabilities**, seize business opportunities, and adopt a **prudent financial management strategy**[65](index=65&type=chunk) - **Intense competition, rising labour costs, increasing raw material prices, and global economic uncertainty** are expected to lead to tighter profit margins[65](index=65&type=chunk) - During the reporting period, the Group was **awarded two new projects** with a total contract sum of approximately **HK$33,000 thousand**[65](index=65&type=chunk) - The Group will **strengthen budget management**, enhance execution and control capabilities, and continuously **evaluate its team to optimize competitiveness**[65](index=65&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's working capital is primarily funded by internal resources, with a quick ratio of approximately 14.7 times, indicating strong liquidity, and a gearing ratio of approximately 0.9%, maintaining a net cash position - The Group's working capital is **funded by internal resources**[66](index=66&type=chunk) - The quick ratio was approximately **14.7 times** (December 31, 2023: approximately 8.3 times), indicating **significant improvement in liquidity**[66](index=66&type=chunk) - The gearing ratio was approximately **0.9%** (December 31, 2023: approximately 1.0%)[69](index=69&type=chunk) - The Group recorded a **net cash position** as of June 30, 2024, making the debt-to-equity ratio not applicable[69](index=69&type=chunk) [Capital Expenditure and Commitments](index=28&type=section&id=Capital%20Expenditure%20and%20Commitments) For the six months ended June 30, 2024, the Group invested approximately HK$1,239 thousand in property, plant and equipment, and had no significant capital commitments at the end of the reporting period - The Group invested approximately **HK$1,239 thousand in property, plant and equipment**, primarily for **self-occupied leasehold properties and a motor vehicle**[72](index=72&type=chunk) - As of June 30, 2024, the Group had **no significant capital commitments**[73](index=73&type=chunk) [Foreign Exchange Risk Management](index=29&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group's monetary assets, liabilities, and transactions are primarily denominated in Hong Kong Dollars, thus it is not exposed to significant foreign currency risk and currently has no foreign currency hedging policy - The Group's monetary assets, liabilities, and transactions are primarily **denominated in Hong Kong Dollars**[79](index=79&type=chunk) - The Group is **not exposed to significant foreign currency risk** and currently has **no foreign currency hedging policy**[79](index=79&type=chunk) [Employees Information](index=29&type=section&id=Employees%20Information) As of June 30, 2024, the Group employed 61 employees, with total staff costs amounting to approximately HK$12,534 thousand, and remuneration packages determined by market terms - As of June 30, 2024, the Group **employed 61 employees** (December 31, 2023: 71 employees)[80](index=80&type=chunk) - Total staff costs (including directors' emoluments) for the reporting period amounted to approximately **HK$12,534 thousand**[80](index=80&type=chunk) [Use of Proceeds](index=30&type=section&id=Use%20of%20Proceeds) The net proceeds from the Company's share offer were approximately HK$102,400 thousand, primarily used for procuring HVAC systems and general working capital, with most proceeds utilised as planned and a small unutilised amount for guaranteed bonds remaining - Net proceeds from the Share Offer were approximately **HK$102,400 thousand**[84](index=84&type=chunk) Actual Use of Net Proceeds (As of Reporting Date) | Purpose | Net Proceeds (HK$ thousand) | Utilised (HK$ thousand) | Unutilised (HK$ thousand) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | | Procurement of HVAC systems | 87,654 | 87,654 | - | - | | Purchase of guaranteed bonds | 4,608 | 4,226 | 382 | End of 2024 | | General working capital | 10,138 | 10,138 | - | - | | **Total** | **102,400** | **102,018** | **382** | | [Other Information](index=31&type=section&id=Other%20Information) This section covers additional disclosures, including interests of directors and major shareholders, the share option scheme, and corporate governance practices [Disclosure of Interests](index=31&type=section&id=Disclosure%20of%20Interests) Directors, chief executives, and substantial shareholders hold interests in the Company's shares and underlying shares, with Mr. Cheung Yuen Tung and Mr. Cheung Yuen Chau holding 75% through Prime Pinnacle Limited, and their spouses deemed to have the same interests Directors' Long Positions in Shares (As of June 30, 2024) | Director Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Cheung Yuen Tung | Interest in controlled corporation | 750,000,000 | 75% | | Mr. Cheung Yuen Chau | Interest in controlled corporation | 750,000,000 | 75% | - **Prime Pinnacle Limited** is beneficially owned **51% by Mr. Cheung Yuen Tung and 49% by Mr. Cheung Yuen Chau**, who have entered into a **concert party agreement**[85](index=85&type=chunk) Substantial Shareholders' Interests in the Company's Shares (As of June 30, 2024) | Shareholder Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Prime Pinnacle | Beneficial owner | 750,000,000 | 75% | | Ms. Chan Ho Fung | Interest of spouse | 750,000,000 | 75% | | Ms. Cheng Wun King | Interest of spouse | 750,000,000 | 75% | [Share Option Scheme](index=33&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme to incentivise and retain eligible employees, outlining the maximum number of shares, eligible participants, approval requirements, and exercise price determination, with no options granted as of the interim report date - The Share Option Scheme was **approved by shareholders on June 8, 2018**, aiming to provide incentives or rewards[91](index=91&type=chunk) - The maximum number of shares that may be granted under the scheme shall not exceed **10% of the total issued shares immediately following the completion of the Global Offering (i.e., 1,000,000,000 shares)**[91](index=91&type=chunk) - The subscription price for shares involved in a specific option shall not be less than the highest of three values: **closing price on the grant date, average closing price for the preceding five trading days, and par value of the share**[92](index=92&type=chunk) - Since the effective date of the Share Option Scheme and up to the date of this interim report, **no share options have been granted** under the scheme[92](index=92&type=chunk) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) The Company is committed to maintaining high standards of corporate governance, complying with all code provisions of the Corporate Governance Code in Appendix 14 of the Listing Rules during the reporting period, and directors confirmed adherence to the Model Code for Securities Transactions - The Company has consistently complied with **all code provisions of the Corporate Governance Code** set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[94](index=94&type=chunk) - The Company has adopted the **Model Code for Securities Transactions by Directors** set out in Appendix 10 to the Listing Rules as its own code of conduct regarding directors' securities transactions, and all directors have confirmed compliance[95](index=95&type=chunk) - The Audit Committee has **discussed with management and reviewed the Group's unaudited interim financial results** for the reporting period[96](index=96&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the company recorded revenue of approximately HKD 69,388,000, a slight decrease from HKD 69,852,000 for the same period in 2023[1] - The company's loss attributable to equity shareholders for the six months ended June 30, 2024, was approximately HKD 1,840,000, compared to a profit of HKD 1,353,000 for the same period in 2023[2] - Gross profit for the six months ended June 30, 2024, was HKD 6,302,000, down from HKD 9,388,000 in the same period of 2023, indicating a decline in profitability[2] - Revenue for the six months ended June 30, 2024, was HKD 69,388,000, a slight decrease of 0.7% compared to HKD 69,852,000 for the same period in 2023[8] - The basic loss per share for the six months ended June 30, 2024, was HKD 1.84, compared to earnings of HKD 1.35 per share in the same period of 2023[15] - Revenue from installation services related to HVAC systems was HKD 59,460,000, significantly up from HKD 29,238,000 in the previous year, representing an increase of 102.5%[9] - Revenue from net installation services was HKD 9,928,000, down from HKD 40,614,000, indicating a decrease of 75.6%[9] - Bank interest income increased to HKD 1,558,000 from HKD 1,181,000, reflecting a growth of 32%[10] - Maintenance and other service income decreased to HKD 1,599,000 from HKD 3,742,000, a decline of 57.4%[10] - Total other income for the six months ended June 30, 2024, was HKD 3,782,000, down from HKD 5,968,000, a decrease of 36.5%[10] Expenses and Costs - Administrative expenses decreased to HKD 11,938,000 for the six months ended June 30, 2024, from HKD 13,988,000 in the same period of 2023, reflecting cost control measures[2] - Employee costs, including director remuneration, increased to HKD 15,246,000 for the six months ended June 30, 2024, from HKD 12,534,000 in the same period of 2023, representing a 21.7% increase[1] - Service costs increased by approximately HKD 2,622,000 or 4.3% to about HKD 63,086,000, primarily due to rising material and supply costs[35] - Other income decreased by approximately HKD 2,186,000 to about HKD 3,782,000, mainly due to reduced income from maintenance work and material sales[37] Assets and Liabilities - The company's total assets as of June 30, 2024, were HKD 158,605,000, down from HKD 170,597,000 as of December 31, 2023[3] - Current liabilities decreased to HKD 10,629,000 as of June 30, 2024, from HKD 20,364,000 as of December 31, 2023, indicating improved liquidity[3] - The net asset value of the company as of June 30, 2024, was HKD 149,988,000, compared to HKD 151,828,000 as of December 31, 2023[3] - The total value of right-of-use assets as of June 30, 2024, was HKD 11,817,000, an increase from HKD 10,213,000 as of December 31, 2023[17] - The group’s total liabilities as of June 30, 2024, were HKD 9,453,000, down from HKD 19,157,000 as of December 31, 2023, indicating a reduction of about 50.7%[26] - Trade receivables decreased by 13.6% from approximately 21,724,000 HKD on December 31, 2023, to approximately 18,763,000 HKD as of June 30, 2024[41] - Trade payables decreased significantly by 47.9% from approximately 11,771,000 HKD on December 31, 2023, to approximately 6,131,000 HKD as of June 30, 2024[43] Corporate Governance and Compliance - The financial report is prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[6] - The interim financial report for the six months ended June 30, 2024, has not been audited but has been reviewed by the company's audit committee[8] - The board has maintained good corporate governance standards, enhancing operational efficiency and shareholder returns, and has complied with all corporate governance code provisions during the reporting period[63] - The audit committee has reviewed the group's unaudited interim financial results and discussed financial matters with management during the reporting period[65] Dividends and Share Capital - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the same period in 2023[14] - The company declared a special dividend of HKD 0.024 per ordinary share on July 25, 2024, to be paid on or around August 30, 2024[30] - The company’s issued share capital as of June 30, 2024, was HKD 50,000,000, with 5,000,000,000 ordinary shares issued[28] Market and Operational Environment - The company operates solely in Hong Kong, with no additional segments reported[8] - The company operates in a challenging economic environment, with a slowdown in the Hong Kong real estate market affecting project timelines and available tenders[32] - Material and supply prices significantly increased during the second quarter of the year, impacting overall costs[32] - The company has been primarily engaged in providing heating, ventilation, and air conditioning installation services in Hong Kong[4] - The company is registered as a contractor under various classifications, providing HVAC engineering services primarily for new residential projects in Hong Kong[32] Future Outlook - The company anticipates reflecting changes in accounting policies in the consolidated financial statements for the year ending December 31, 2024[7] - The group continues to enhance budget management and project execution capabilities to ensure stable and sustainable development[44]

Financial Performance - For the year ended 31 December 2023, the Group recorded a revenue of approximately HK$152,950,000, representing a year-on-year increase of 22.3% compared to approximately HK$125,087,000 in the previous financial year[16]. - The profit attributable to the equity shareholders of the Company was approximately HK$680,000, an increase from approximately HK$238,000 in 2022[16]. - The Group's total comprehensive income attributable to equity shareholders for the year ended December 31, 2023, was approximately HK$680,000, an increase from approximately HK$238,000 in 2022[52][58]. - Revenue from services transferred over time was HK$121,873,000 (80% of total revenue) in 2023, while products transferred at a point in time accounted for HK$31,077,000 (20%)[33]. - The cost of services rose by approximately HK$27,362,000 or 25.7% to approximately HK$133,743,000 in 2023, up from HK$106,381,000 in 2022[41]. - Gross profit increased by approximately HK$501,000 or 2.7% to approximately HK$19,207,000 in 2023, but the gross profit margin decreased from approximately 15.0% in 2022 to approximately 12.6% in 2023[42]. - Administrative expenses increased from approximately HK$24,691,000 in 2022 to approximately HK$28,465,000 in 2023, primarily due to higher costs related to repair and installation services[44]. Assets and Liabilities - As at 31 December 2023, the Group's current assets were HK$170,597,000, while non-current assets were HK$2,116,000[13]. - The Group's current liabilities stood at HK$20,364,000, and non-current liabilities were HK$521,000[13]. - The net assets of the Group were HK$151,828,000, consistent with HK$151,148,000 in 2022[13]. - Trade receivables decreased by approximately HK$15,667,000 from approximately HK$37,391,000 as of December 31, 2022, to approximately HK$21,724,000 as of December 31, 2023[54][60]. - Trade payables increased by approximately HK$7,989,000 from approximately HK$3,782,000 as of December 31, 2022, to approximately HK$11,771,000 as of December 31, 2023, due to large purchases of HVAC systems[63][67]. - The Group's net current assets were approximately HK$150,233,000 as of December 31, 2023, compared to approximately HK$148,984,000 in 2022[70][75]. - The quick ratio of the Group was approximately 8.3 times as of December 31, 2023, down from approximately 12.2 times in 2022[70][75]. - The Group's gearing ratio was approximately 1.0% as of December 31, 2023, compared to 0.9% in 2022[73]. - As of December 31, 2023, the Group's debt-to-equity ratio was approximately 1.0%, compared to 0.9% in 2022[78]. Risk Management and Challenges - The Group faces challenges due to labor shortages and inflation in building material costs, impacting construction speed and costs[18]. - The Company plans to mitigate risks by closely monitoring the economic situation and maintaining relationships with suppliers and customers[18]. - The overall economic landscape in Hong Kong remains volatile, affecting the property market and housing construction[18]. - The Group aims to manage risks and reduce direct costs while maintaining relationships with suppliers and customers to enhance future profitability[20]. - The Group has focused on risk control to address uncertainties that may affect financial conditions or growth prospects[168]. Future Prospects and Strategies - The Company aims to explore potential development opportunities to enhance future profitability and maximize returns for shareholders[18]. - The Group aims to strengthen its market position as a prime HVAC E&M engineering services provider and pursue new business opportunities directly with property developers[30]. - Future prospects indicate that the Group will expand service capabilities to capture business opportunities in HVAC E&M engineering services[64][68]. - The property market is expected to become more active after the cancellation of certain stamp duties, although risks remain due to high interest rates and a slower-than-expected recovery from the pandemic[65][68]. - The Group's future business development strategies are outlined in the annual report, indicating a focus on growth and expansion[155]. Corporate Governance and Management - The company is focused on strategic planning, business development, and corporate management led by Mr. Tony Cheung, who has over 20 years of experience in the air-conditioning E&M engineering services industry[113][114]. - The management team is responsible for formulating corporate strategies and making significant operational decisions, ensuring effective business monitoring[114][120]. - The company is committed to compliance, internal control, and corporate governance, overseen by independent non-executive director Mr. Pang Kam Fai[125][129]. - The overall strategic direction and major operational decisions are collaboratively made by the Cheung brothers, enhancing the company's leadership structure[114][120]. Shareholder Information - The Group does not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with 2022[53][59]. - The Board does not recommend declaring a final dividend for the year ended 31 December 2023, consistent with the previous year[171]. - The Company does not have a fixed dividend policy, and future dividend payments will depend on various factors including operations, earnings, and cash flow position[172]. - The annual general meeting is scheduled for 6 June 2024, with a notice issued to shareholders[173]. Donations and Community Engagement - The Group reported a donation of HK$70,000 for the year ended 31 December 2023, an increase from HK$55,000 in 2022[197]. Compliance and Legal Matters - There were no material breaches of applicable laws and regulations that significantly impacted the Group's business and operations during the year[158]. - There were no contingent liabilities provided for in the consolidated financial statements as of December 31, 2023, except for legal proceedings amounting to HK$872,000[86].