Financial Performance - For the fiscal year ending December 31, 2023, the group recorded revenue of approximately HKD 152,950,000, representing an increase of 22.3% compared to HKD 125,087,000 in 2022[3] - The profit attributable to equity shareholders for the fiscal year was approximately HKD 680,000, compared to HKD 238,000 in 2022, marking a significant increase of 185.7%[3] - Basic and diluted earnings per share for the year were HKD 0.07, up from HKD 0.02 in the previous year, reflecting a growth of 250%[3] - The group's gross profit for the year was HKD 19,207,000, compared to HKD 18,706,000 in 2022, indicating a slight increase of 2.67%[5] - Other income for the year 2023 totaled HKD 10,026,000, compared to HKD 6,297,000 in 2022, marking an increase of approximately 59.5%[27] - The company's total comprehensive income attributable to equity shareholders was approximately HKD 680,000 for the year ended December 31, 2023, compared to approximately HKD 238,000 for the year ended December 31, 2022[53] Dividend Policy - The board of directors does not recommend the payment of a final dividend for the fiscal year ending December 31, 2023[3] - The company did not declare a final dividend for the year ending December 31, 2023, consistent with the previous year[34] - The company does not recommend the payment of a final dividend for the year ended December 31, 2023, compared to no dividend in the previous year[54] Assets and Liabilities - Total assets for the group as of December 31, 2023, were HKD 152,349,000, compared to HKD 151,403,000 in 2022, showing a growth of 0.62%[7] - The group's current assets amounted to HKD 170,597,000, an increase from HKD 161,952,000 in the previous year, representing a growth of 5.5%[7] - The total equity attributable to shareholders was HKD 151,828,000, compared to HKD 151,148,000 in 2022, reflecting a growth of 0.45%[7] - Trade receivables, net of provisions, amounted to HKD 21,724,000, while provisions for bad debts were HKD 37,391,000[38] - The expected recoverable amount of retained deposits was approximately HKD 14,185,000, down from HKD 23,164,000 in the previous year[38] - Total trade and other receivables were HKD 51,263,000, compared to HKD 68,161,000 in the previous year[38] - The total trade and other payables amounted to HKD 19,157,000, with HKD 11,771,000 expected to settle within one year[41] - Deferred tax liabilities increased to HKD 23,000 from HKD 14,000 year-on-year[33] Revenue Breakdown - Revenue from installation services amounted to HKD 70,568,000 in 2023, down from HKD 84,640,000 in 2022, indicating a decline of about 16.7%[23] - The group reported total revenue of HKD 152,950,000 for the year ending December 31, 2023, compared to HKD 125,087,000 for the previous year, representing a growth of approximately 22.3%[23] - The group’s revenue from services recognized over time was HKD 121,873,000 in 2023, compared to HKD 105,803,000 in 2022, reflecting an increase of approximately 15.2%[23] - Revenue from "On-demand Services" was HKD 121,873,000, which is an increase of 15% compared to the previous year[44] - Revenue from "Point-in-time Products" was HKD 31,077,000, reflecting a growth of 62% year-over-year[44] - Revenue from service type "Net Installation Services" was HKD 70,568,000, accounting for 46% of total revenue, while "Installation Services including HVAC Systems Procurement" generated HKD 82,382,000, representing 54%[46] Operational Highlights - The group primarily engages in providing heating, ventilation, and air conditioning system installation services in Hong Kong[8] - The company aims to strengthen its market position as a preferred HVAC engineering contractor for property developers in Hong Kong[43] - The company continues to enhance financial management and licensing qualifications to solidify its position in the property development value chain[43] - The company is focused on direct engagement with property developers and/or their designated main contractors to secure new business opportunities[43] - The company plans to expand service capabilities to capture business opportunities and provide comprehensive HVAC electrical engineering services[59] Financial Management - The company has adopted new accounting standards this year, which did not have a significant impact on the financial statements[12] - The revisions to the accounting standards clarify the definition of accounting estimates and their application[13] - The Group's financial position and performance remain unaffected by the new accounting standards adopted this year[20] - The company has registered as a Class A contractor under the Electrical and Mechanical Services Department, enhancing its service capabilities[42] - The company received government funding of HKD 3,008,000 under the Employment Support Scheme to retain employees during the pandemic[32] - The company confirmed receipt of government subsidies of HKD 27,000 for construction innovation and technology, compared to none in the previous year[32] Cost Management - Employee costs, including directors' remuneration, were HKD 31,157,000 in 2023, compared to HKD 31,180,000 in 2022, showing a marginal decrease[30] - Service costs increased by approximately HKD 27,362,000 or 25.7% to about HKD 133,743,000 for the year ended December 31, 2023, compared to approximately HKD 106,381,000 for the year ended December 31, 2022[47] - Administrative expenses increased from approximately HKD 24,691,000 to about HKD 28,465,000, primarily due to costs associated with maintenance and other installation services[50] - The group’s financial costs included lease liabilities interest of HKD 65,000 in 2023, slightly up from HKD 60,000 in 2022[30] - Financial costs were approximately HKD 65,000 for the year ended December 31, 2023, compared to HKD 60,000 for the previous year, reflecting interest expenses on lease liabilities[51] Corporate Governance - The company has adhered to corporate governance codes and standards throughout the fiscal year ending December 31, 2023[82] - The audit committee is responsible for ensuring the effectiveness of internal controls and risk management systems[87] - The annual report for the year ending December 31, 2023, will be available on the company's website and the stock exchange website[88] - The report will include all information required by the listing rules, as stated in Appendix 16[88] - The company will distribute the report to shareholders in accordance with listing rules[88] Shareholder Information - The company successfully raised approximately HKD 102.4 million from the issuance of 250,000,000 shares at HKD 0.52 per share[77] - As of the announcement date, the actual utilization of the net proceeds was HKD 102.018 million, with HKD 382,000 expected to be used by the end of 2024[77] - The company allocated HKD 87.654 million for the purchase of a heating, ventilation, and air conditioning system, fully utilized[77] - The company has adopted a share option scheme to incentivize and reward eligible participants, effective for ten years from the adoption date[78] - The annual general meeting is scheduled for June 6, 2024, with a suspension of share registration from June 3 to June 6, 2024[83]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 69,852,000, representing a 20.1% increase from HKD 58,202,000 in the same period of 2022[4] - Gross profit for the same period was HKD 9,388,000, up 27.8% from HKD 7,345,000 year-on-year[4] - The company reported a profit before tax of HKD 1,353,000, compared to a loss of HKD 2,222,000 in the previous year[4] - Basic earnings per share for the first half of 2023 was HKD 0.14, recovering from a loss of HKD 0.22 per share in the same period of 2022[4] - Other income for the six months ended June 30, 2023, totaled HKD 5,968,000, significantly up from HKD 2,041,000 in 2022, marking a 192.5% increase[23] - The total comprehensive income attributable to equity shareholders for the reporting period was approximately HKD 1,353,000, compared to a loss of HKD 2,222,000 in the same period last year[76] Cash Flow and Assets - Cash and cash equivalents increased to HKD 91,479,000 as of June 30, 2023, compared to HKD 64,581,000 at the beginning of the period[10] - The company reported a net cash inflow from operating activities of HKD 24,589,000, a significant recovery from an outflow of HKD 10,376,000 in the previous year[10] - Total assets less current liabilities stood at HKD 152,739,000, slightly up from HKD 151,403,000 at the end of 2022[6] - Trade and other receivables decreased to HKD 45,957,000 from HKD 68,161,000, indicating improved cash flow management[6] - Trade receivables, net of impairment losses, decreased to HKD 17,891,000 as of June 30, 2023, from HKD 37,391,000 as of December 31, 2022, reflecting a significant reduction of 52%[45] - Cash and cash equivalents increased to HKD 91,479,000 as of June 30, 2023, up from HKD 64,581,000 as of December 31, 2022, representing a growth of 42%[48] Liabilities and Expenses - The company’s total liabilities increased, with trade and other payables totaling HKD 11,982,000 as of June 30, 2023, compared to HKD 11,191,000 as of December 31, 2022[49] - Employee costs, including director remuneration, increased to HKD 15,246,000 from HKD 14,464,000, reflecting a rise of 5.4%[26] - Administrative expenses rose from approximately HKD 11,576,000 to approximately HKD 13,988,000, primarily due to increased subcontracting costs related to maintenance and other services[73] - The company incurred depreciation expenses of HKD 1,054,000 for the period ending June 30, 2023, compared to HKD 2,041,000 for the same period in 2022[37] Operational Insights - The company operates solely in Hong Kong, focusing on the HVAC business without any geographical expansion reported[21] - The company has not disclosed any new product developments or market expansion strategies in the current report[4] - There were no significant mergers or acquisitions reported during the period[4] - The company is actively exploring additional business opportunities to enhance returns, including providing maintenance and other services[59] - The company has registered as a subcontractor under various regulatory bodies, enhancing its operational capabilities in the HVAC engineering services sector[59] Shareholder and Governance - The company successfully raised approximately HKD 102.4 million from the issuance of 250,000,000 shares at HKD 0.52 per share[103] - The company’s major shareholders, Prime Pinnacle, holds 750,000,000 shares, representing 75% of the total equity[110] - The company has adopted a share option scheme to incentivize and reward eligible participants, allowing for the issuance of up to 10% of the total issued shares post-global offering[112] - The board is committed to maintaining high corporate governance standards to enhance operational efficiency and shareholder returns[117] - The audit committee is responsible for safeguarding the group's assets and reviewing the effectiveness of financial reporting and internal controls[121]

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） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 的 中 期 業 績 公 佈 摘要 • 截至二零二三年六月三十日止六個月，本集團錄得收入約69,852,000 港元（截至二零二二年六月三十日止六個月：約58,202,000港元）。 • 截至二零二三年六月三十日止六個月，本公司權益股東應佔盈利約 為1,353,000港元（截至二零二二年六月三十日止六個月：虧損約2,222,000 港元）。 ...

Financial Performance - For the year ended December 31, 2022, the Group recorded a revenue of approximately HK$125,087,000, representing a year-on-year increase of 2.8% compared to approximately HK$121,672,000 in the previous financial year[15]. - The profit attributable to the equity shareholders of the Company was approximately HK$238,000, a significant recovery from a loss of approximately HK$2,225,000 in 2021[15]. - The Group's revenue increased by approximately HK$3,415,000 or 2.8% to approximately HK$125,087,000 for the year ended 31 December 2022[36]. - Revenue from services transferred over time was HK$105,803,000, accounting for 85% of total revenue, while products transferred at a point in time contributed HK$19,284,000 or 15%[33]. - The cost of services rose by approximately HK$5,672,000 or 5.6% to approximately HK$106,381,000, primarily due to increased material costs and subcontracting fees[41]. - Gross profit decreased by approximately HK$2,257,000 or 10.8% to approximately HK$18,706,000, with the gross profit margin declining from 17.2% to 15.0%[42]. - Administrative expenses decreased from approximately HK$25,102,000 to approximately HK$24,691,000, mainly due to reduced legal and professional fees[44]. - The Group's financial position and results for the year ended December 31, 2022, are detailed in the consolidated financial statements on pages 99 to 101 of the annual report[172][177]. Assets and Liabilities - Current assets as of December 31, 2022, were HK$161,952,000, a decrease from HK$168,716,000 in 2021[12]. - Current liabilities decreased to HK$12,968,000 in 2022 from HK$20,021,000 in 2021, indicating improved financial stability[12]. - Total equity attributable to equity shareholders as of December 31, 2022, was HK$151,148,000, slightly up from HK$150,910,000 in 2021[12]. - Trade receivables increased by approximately HK$1,257,000 from approximately HK$36,134,000 as of December 31, 2021, to approximately HK$37,391,000 as of December 31, 2022, reflecting an increase in revenue[54][60]. - Retention receivables rose by approximately HK$5,060,000 from approximately HK$21,297,000 as of December 31, 2021, to approximately HK$26,357,000 as of December 31, 2022, in line with project progress[55][60]. - The Group's net current assets were approximately HK$148,984,000 as of December 31, 2022, compared to approximately HK$148,695,000 in 2021[71][76]. - The quick ratio improved to approximately 12.2 times as of December 31, 2022, up from approximately 8.3 times in 2021[71][76]. - The Group's gearing ratio decreased to approximately 0.9% as of December 31, 2022, from 1.3% in 2021, indicating a stronger equity position[74][79]. - Trade payables decreased by approximately HK$6,420,000 from approximately HK$10,202,000 as of December 31, 2021, to approximately HK$3,782,000 as of December 31, 2022, due to payments made to subcontractors[63][67]. Market Conditions and Challenges - The construction industry in Hong Kong faced challenges due to the COVID-19 pandemic, including labor shortages and increased raw material prices, which negatively impacted the Group's gross profits and revenue growth[16]. - The increase in costs for building materials and labor, along with reduced tendering for new projects, presents ongoing challenges for the Group[17]. - The overall economic environment is expected to stabilize, allowing construction works to proceed smoothly, while the Group will continue to explore potential development opportunities[70][75]. - The Group's reliance on major customers poses a risk, as revenue and profit margins are subject to fluctuations due to various factors[170]. Strategic Plans and Goals - The Group aims to monitor market conditions closely and explore potential development opportunities to enhance future profitability[18]. - The Group plans to maintain relationships with suppliers and customers to 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]. - The Group plans to expand service capabilities and enhance budget management to secure stable and sustainable development[64][68]. - The Group continues to focus on maintaining relationships with suppliers and existing clients while actively exploring potential development opportunities[20]. Corporate Governance and Management - The Group is committed to enhancing financial management, internal control, and corporate governance to ensure stable and sustainable development[22]. - The Group's directors are responsible for overseeing compliance, internal control, and corporate governance, without participating in day-to-day operations[140]. - The Group's management team includes individuals with extensive industry experience, enhancing strategic decision-making capabilities[141]. - The Company has been actively involved in corporate governance, adopting the Model Code for Securities Transactions by Directors[159]. Employee and Social Responsibility - The Company has been committed to delivering high-quality services to enhance competitiveness and foster a caring environment for employees[168]. - The Company has a strong emphasis on the personal development of its employees[168]. - The Group made donations totaling HK$55,000 for the year ended December 31, 2022, down from HK$73,000 in 2021[198]. Future Outlook - The Group does not recommend declaring a final dividend for the year ended December 31, 2022, consistent with the previous year where no dividend was declared[172][178]. - There were no significant investments, material acquisitions, or disposals of subsidiaries during the year ended December 31, 2022[92]. - The Group does not have a foreign currency hedging policy as foreign currency risk is considered insignificant[95]. - The Group's strategy to undertake more projects as a first-tier HVAC E&M subcontractor may lead to lower gross and net profit margins in the future[170].

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） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 度 業 績 公 佈 財務摘要 • 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度，本 集 團 錄 得 收 入 約 125,087,000港元（二零二一年：約121,672,000港元）。 • 截至二零二二年十二月三十一日止年度，本公司權益股東應佔年內 盈利約238,000港元（二零二一年：虧損約2,225,000港元） • 截至二零二二年十二月三十一日止年度，每股基本及攤薄盈利0.02 港仙（二零二一年：每股虧損0.22港仙）。 • 董 事 會 不 建 議 派 付 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 末 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 58,202,000, an increase of 4.0% from HKD 55,480,000 in the same period of 2021[8] - Gross profit decreased to HKD 7,345,000, down 21.9% from HKD 9,410,000 year-on-year[8] - The company reported a loss before tax of HKD 2,222,000 compared to a loss of HKD 1,448,000 in the previous year, representing a 53.4% increase in losses[8] - Basic and diluted loss per share was HKD 0.22, compared to HKD 0.15 in the same period last year[8] - Total revenue for the six months ended June 30, 2022, was HKD 58,202,000, a slight increase from HKD 55,480,000 in the same period of 2021, representing a growth of approximately 3.1%[24] - Revenue from installation services amounted to HKD 36,982,000, up from HKD 29,486,000 in 2021, indicating a significant increase of about 25.6%[26] - The company incurred a loss attributable to equity shareholders of approximately HKD 2,222,000, compared to a loss of approximately HKD 1,515,000 in the same period last year[80] - The gross profit margin for the reporting period was 13%, down from 17% in the previous year, primarily due to increased procurement material costs[72][73] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 149,171,000, a decrease from HKD 151,474,000 as of December 31, 2021[10] - Current liabilities decreased to HKD 157,705,000 from HKD 168,716,000 at the end of 2021, indicating improved liquidity[10] - Cash and cash equivalents at the end of the period were HKD 39,495,000, down from HKD 82,905,000 at the end of the previous year[14] - Trade receivables, net of loss allowances, decreased to HKD 23,975,000 as of June 30, 2022, from HKD 36,134,000 as of December 31, 2021[50] - Trade payables decreased to HKD 9,193,000 as of June 30, 2022, from HKD 18,578,000 as of December 31, 2021[57] - The current ratio as of June 30, 2022, was approximately 14.0 times, up from 8.4 times as of December 31, 2021[88] - The debt-to-equity ratio as of June 30, 2022, was approximately 1.3%, unchanged from December 31, 2021[92] Cash Flow - The company experienced a net cash outflow from operating activities of HKD 10,376,000, compared to an outflow of HKD 3,894,000 in the prior year[14] - Cash and cash equivalents, after deducting time deposits with maturities over three months, amounted to HKD 39,495,000 as of June 30, 2022, down from HKD 50,826,000 as of December 31, 2021[54] Operational Insights - The company faced significant operational pressures due to labor and material shortages, impacting project progress and costs[67] - The company plans to expand service capabilities to capture business opportunities in HVAC engineering services and is seeking investment or acquisition opportunities in similar businesses in China[85] - The company registered as a contractor under various classifications, enhancing its position in the property development value chain[66] - The company plans to strengthen financial management and licensing qualifications to secure new business opportunities directly from property developers[67] Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[37] - Major shareholders, including Prime Pinnacle, hold 750 million shares, representing 75% of the company[112] - The company’s directors, Zhang Yuantong and Zhang Yuanqiu, each hold 750 million shares, also representing 75% ownership[109] - The company has established a strategy to attract and retain talent through the stock option plan[115] - The report indicates no other significant changes in shareholding outside of the disclosed major shareholders as of June 30, 2022[113] Corporate Governance - The board is committed to maintaining high corporate governance standards to enhance operational efficiency, corporate value, and shareholder returns[120] - The audit committee is responsible for safeguarding the group's assets and independently reviewing the effectiveness of financial reporting and internal controls[123] Investment and Capital Management - The company raised approximately HKD 102.4 million from the share issuance at HKD 0.52 per share, with net proceeds of HKD 102.018 million after expenses[107] - The company allocated HKD 87.654 million for HVAC system procurement, fully utilized as of the report date[107] - HKD 4.608 million was invested in guaranteed bonds, with HKD 4.226 million utilized and HKD 382,000 expected to be used by the end of 2022[107] - General operating funds accounted for HKD 10.138 million, fully utilized[107] - The company has no significant capital commitments as of June 30, 2022[94] - The company has no significant contingent liabilities as of June 30, 2022[95] Employee Information - The company employed 66 employees as of June 30, 2022, with total employee costs of approximately HKD 14,464,000, down from HKD 15,673,000 in the previous year[103] Stock Option Plan - The company has a stock option plan approved by shareholders, allowing for the issuance of up to 10% of the total issued shares post-global offering, equating to 1 billion shares[115] - The stock option plan restricts the number of shares granted to 1% of the issued shares within any 12-month period[116] - The company has adopted a stock option plan effective for 10 years, with specific conditions for exercise and pricing based on market closing prices[118] - During the reporting period, the company did not purchase, sell, or redeem any of its listed securities[119]

Financial Performance - For the year ended December 31, 2021, the Group recorded a revenue of approximately HK$121,672,000, a year-on-year decrease of 4.6% compared to approximately HK$127,588,000 in the previous financial year[11]. - The loss attributable to the equity shareholders of the Company was approximately HK$2,225,000, an improvement from a loss of approximately HK$8,464,000 in 2020[11]. - Revenue from installation services was HK$59,959,000, accounting for 49% of total revenue, with a gross profit margin of 27%[30]. - Revenue from HVAC system procurements was HK$61,713,000, representing 51% of total revenue, with a gross profit margin of 8%[30]. - Total comprehensive income attributable to equity shareholders of the Company was approximately HK$2,225,000 for the year ended 31 December 2021, a decrease from HK$8,464,000 in 2020, primarily due to higher profit margin projects recognized in 2021[47]. Operational Challenges - Construction progress was adversely affected due to the need to demolish and rebuild buildings under construction, leading to delays and additional costs incurred[12]. - The Group faced challenges from macroeconomic uncertainties, including construction delays and a reduction in tendering for new development projects, impacting operations[13]. - The cancellation of the 13% export tax rebate for building materials by the Chinese government increased the costs of purchasing raw materials, including steel[13]. - The emergence of the Omicron variant and subsequent lockdowns affected logistics and raw material shortages, further delaying construction progress[14]. - The ongoing war between Ukraine and Russia has contributed to increased raw material prices, impacting future revenue and gross profit[14]. Financial Position - The total current assets as of December 31, 2021, were HK$168,716,000, compared to HK$164,539,000 in 2020[9]. - The net assets of the Group at the end of 2021 were HK$150,910,000, a decrease from HK$153,135,000 in 2020[9]. - Trade receivables increased by approximately HK$7,906,000 from approximately HK$28,228,000 as at 31 December 2020 to approximately HK$36,134,000 as at 31 December 2021[48]. - Retention receivables decreased by approximately HK$3,143,000 from approximately HK$24,440,000 as at 31 December 2020 to approximately HK$21,297,000 as at 31 December 2021[48]. - The Group had net current assets of approximately HK$148,695,000 as at 31 December 2021, compared to approximately HK$150,762,000 in 2020[55]. Management and Strategy - The Group plans to strengthen financial management and licensing qualifications to enhance its market position as a prime HVAC E&M engineering services provider[27]. - The Group will continue to explore potential development opportunities and control costs to maximize returns for shareholders[20]. - The Group aims to improve management standards and enhance capabilities in executing plans and controlling budgets for sustainable development[18]. - The Group plans to strengthen its human resources and focus on training to build a team of outstanding members[52]. - The Group aims to enhance its budget management and execution capabilities to improve overall management levels[52]. Governance and Compliance - The Group's directors are responsible for reviewing and approving significant contracts and investments[97]. - The Group's governance structure includes independent non-executive directors to enhance corporate governance and compliance oversight[108]. - The Company has maintained a permitted indemnity provision for the benefit of the Directors throughout the financial year ended December 31, 2021[181]. - The Company received annual confirmations of independence from all independent non-executive Directors[167]. - There were no significant contracts with controlling shareholders or their subsidiaries during the year[178]. Risks and Uncertainties - The Group's revenue is primarily derived from non-recurrent HVAC E&M engineering projects, and failure to secure tender contracts could adversely affect operations and financial results[132]. - Errors in estimating project execution timeframes or costs may lead to substantial losses or negatively impact revenue and profitability[132]. - The Group relies on major customers, which poses a risk to financial stability[132]. - There is a risk of not being able to bill and receive the full amount due from customers for contract work, which could negatively impact liquidity if disputes arise[132]. - The strategy to undertake more projects as a first-tier HVAC E&M subcontractor and diversify the customer base may lead to lower gross and net profit margins in the future[132].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 55,480,000, a decrease of 33% compared to HKD 82,765,000 for the same period in 2020[8] - Gross profit for the same period was HKD 9,410,000, down 31% from HKD 13,601,000 in 2020[8] - The company reported a loss before tax of HKD 1,448,000, compared to a profit of HKD 2,191,000 in the prior year[8] - Total comprehensive loss for the period was HKD 1,515,000, compared to a profit of HKD 1,812,000 in the same period last year[8] - Basic and diluted loss per share was HKD (0.15), compared to earnings of HKD 0.18 per share in 2020[8] - Revenue from services transferred over time was HKD 47,595,000, down 12% from HKD 53,903,000 year-on-year[26] - Revenue from installation services, including HVAC system procurement, was HKD 29,486,000, a decrease of 14% from HKD 34,213,000 in the previous year[27] - Other income totaled HKD 785,000, a significant decline of 65% compared to HKD 2,262,000 in the same period last year[28] - The company reported a loss attributable to equity shareholders of HKD 1,515,000 for the six months ended June 30, 2021, compared to a profit of HKD 1,812,000 in the same period of 2020[39] - Basic loss per share for the period was HKD 0.001515, compared to earnings per share of HKD 0.001812 in the previous year[39] Cash and Assets - Cash and cash equivalents at the end of the period were HKD 82,905,000, compared to HKD 37,638,000 at the beginning of the period[17] - The company’s total assets less current liabilities amounted to HKD 152,396,000 as of June 30, 2021[12] - Non-current assets were valued at HKD 3,064,000, while current assets totaled HKD 160,414,000[12] - The company’s total equity as of June 30, 2021, was HKD 151,620,000, down from HKD 161,599,000 at the beginning of the year[13] - Trade receivables, net of impairment, amounted to HKD 39,833,000 as of June 30, 2021, down from HKD 53,297,000 as of December 31, 2020, representing a decrease of about 25.2%[53] - Cash and cash equivalents were HKD 82,905,000 as of June 30, 2021, compared to HKD 37,638,000 on December 31, 2020, indicating a significant increase of approximately 120.2%[57] - The total liabilities as of June 30, 2021, were HKD 8,944,000, compared to HKD 11,057,000 as of December 31, 2020, indicating a reduction of approximately 19.1%[60] Operational Efficiency and Strategy - The company plans to focus on improving operational efficiency and exploring new market opportunities in the upcoming periods[8] - The company aims to strengthen its market position as a preferred HVAC engineering subcontractor by enhancing financial management and licensing qualifications[71] - The company is exploring new business opportunities directly with property developers and/or their designated main contractors[71] - The group plans to expand service capabilities to seize opportunities and provide comprehensive HVAC engineering services, while adopting prudent financial management strategies for long-term stable growth and shareholder returns[90] - The group is seeking opportunities to invest in or acquire companies in China that operate similar businesses and obtain relevant licenses to secure more projects and enhance business prospects[90] Employee and Administrative Costs - Employee costs increased to HKD 15,673,000, up 8% from HKD 14,535,000 in the previous year[33] - Administrative expenses decreased from approximately HKD 13,626,000 to about HKD 11,598,000, primarily due to a reduction in management personnel costs[81] - The total employee cost for the reporting period was approximately HKD 15,673,000, compared to approximately HKD 14,535,000 in the same period last year[113] Shareholder and Equity Structure - As of June 30, 2021, the company’s major shareholders, Prime Pinnacle Limited, held 750,000,000 shares, representing a 75% equity interest[124] - The company has established a significant equity interest structure, with major shareholders also including spouses of the directors, further consolidating control[129] - The company’s equity structure indicates a strong control by its major shareholders, which may impact future strategic decisions and market positioning[124] Governance and Compliance - The company has adopted a comprehensive governance and disclosure measures to enhance operational efficiency, corporate value, and shareholder returns[135] - The audit committee is responsible for assisting the board in safeguarding the group's assets and reviewing the effectiveness of financial reporting procedures and internal controls[139] - The company has confirmed compliance with the standards set forth in the code of conduct for securities transactions by directors throughout the reporting period[136] Capital and Investment - The group has no significant capital commitments as of June 30, 2021[101] - The group has no significant contingent liabilities as of June 30, 2021, except as disclosed in the interim financial statements[102] - The net proceeds from the share issuance on July 11, 2018, amounted to approximately HKD 102,400,000 after deducting underwriting fees and other related expenses[120] Stock Options - The company has adopted a share option scheme aimed at incentivizing and rewarding qualified participants, with a maximum of 10% of the total issued shares available for options[132] - The share option plan allows for the issuance of up to 1,000,000,000 shares, excluding any lapsed options, to attract and retain talent[132] - The company’s share option plan requires independent non-executive director approval for options granted to directors and major shareholders[132] - The stock option plan is effective for a period of 10 years from its adoption date, with specific conditions regarding the exercise price of the options[133] Market Challenges - The company faced significant uncertainty regarding the HVAC system procurement for two large buildings near the Tai Wai MTR station, leading to project delays[121] - The company is currently unable to reliably estimate when the HVAC system procurement can be resumed due to project uncertainties[121]

Financial Performance - For the year ended December 31, 2020, the Group recorded a revenue of approximately HK$127,588,000, representing a year-on-year increase of 11.4% compared to HK$114,489,000 in the previous year[14]. - The loss attributable to equity shareholders of the Company was approximately HK$8,464,000, a significant decline from a profit of approximately HK$1,007,000 in 2019[14]. - The Group's profit before taxation was a loss of HK$8,599,000 compared to a profit of HK$2,310,000 in 2019[9]. - The Group's gross profit decreased by approximately HK$13,365,000 or 56.6%, from approximately HK$23,631,000 in 2019 to approximately HK$10,266,000 in 2020[41]. - The gross profit margin fell from approximately 20.6% in 2019 to approximately 8.0% in 2020, primarily due to increased subcontracting services and material costs[41]. - The cost of services increased by approximately HK$26,464,000 or 29.1%, reaching approximately HK$117,322,000 in 2020, compared to approximately HK$90,858,000 in 2019[41]. - The income tax credit for the year ended December 31, 2020, was approximately HK$135,000, compared to income tax expenses of approximately HK$1,303,000 in 2019[45]. - The Group's total equity attributable to equity shareholders decreased to HK$153,135,000 in 2020 from HK$161,599,000 in 2019[11]. - As of December 31, 2020, the aggregate amount of reserves attributable to equity shareholders of the Company was HK$83,002,000, a decrease from HK$85,793,000 in 2019[157]. Operational Challenges - The Group faced material negative impacts from the novel coronavirus and macroeconomic uncertainty, leading to construction delays and increased costs[15]. - The Group's major projects faced delays and increased costs due to the impact of COVID-19 and other macroeconomic factors[18]. - The Group faces risks related to inaccurate estimation of project execution timeframes and costs, which may lead to substantial losses or negatively impact revenue and profitability[141]. - The strategy to undertake more projects as a first-tier HVAC E&M subcontractor and diversify the customer base may result in lower gross and net profit margins in the future[141]. Asset Management - Current assets decreased to HK$164,539,000 in 2020 from HK$183,870,000 in 2019, while current liabilities reduced to HK$13,777,000 from HK$23,601,000[11]. - Non-current assets increased to HK$3,842,000 in 2020 from HK$2,663,000 in 2019, indicating growth in long-term investments[11]. - As of December 31, 2020, the Group had net current assets of approximately HK$150,762,000, a decrease from approximately HK$160,269,000 in 2019[62]. - The Group's quick ratio improved to approximately 11.9 times as of December 31, 2020, compared to approximately 7.8 times in 2019[62]. - The Group's gearing ratio was approximately 2.0% as of December 31, 2020, slightly down from 2.1% in 2019[65]. Strategic Initiatives - The Group aims to explore potential development opportunities in the China market to enhance future profitability and scale[16]. - The Group plans to strengthen financial management, licensing qualifications, and internal controls to ensure stable and sustainable development[19]. - The Group plans to strengthen human resources and focus on talent training to improve management standards[17]. - The Group is committed to becoming the preferred choice of first-tier HVAC E&M engineering subcontractor for property developers in Hong Kong[28]. - The Group plans to expand service capabilities and seek acquisition opportunities in China to enhance business prospects[57]. Human Resources - The Group recorded total staff costs of approximately HK$31,770,000 for the year ended December 31, 2020, compared to HK$25,703,000 in 2019, with an increase in employees from 70 to 82[88]. - As of December 31, 2020, the Group had 82 employees, with total employee costs amounting to approximately HK$31,770,000, an increase from HK$25,703,000 in 2019[90]. - The Group continues to focus on training talent and improving management standards to enhance operational efficiency[19]. Corporate Governance - The Group has maintained compliance with applicable laws and regulations, with no material breaches reported during the year ended December 31, 2020[130]. - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers to ensure compliance[129]. - The Company has confirmed that there are no interests or conflicts of interest from directors or controlling shareholders in any competing businesses[91]. - The Company has adhered to the non-competition agreement established with its controlling shareholders since July 11, 2018[90]. - The Directors' remuneration is reviewed at least once per year, with details provided in Note 8 of the consolidated financial statements[187]. Market Position - The Group's revenue is primarily derived from non-recurrent HVAC E&M engineering projects, and failure to secure tender contracts could adversely affect operations and financial results[141]. - For the year ended December 31, 2020, the largest customer accounted for 47.7% of the Group's revenue, while the five largest customers contributed 96.6%[172]. - The largest supplier represented approximately 22.3% of the total direct costs of the Group, and the five largest suppliers accounted for about 45.8%[172]. Miscellaneous - The Group made donations totaling HK$179,000 for the year ended December 31, 2020, compared to HK$88,000 in 2019[166]. - The Company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2020[153]. - The Group did not have any equity-linked agreements other than those disclosed in the Share Option Scheme section[169]. - There were no significant transactions or contracts involving the controlling Shareholder or its subsidiaries with the Company during the year[184]. - No events have occurred after December 31, 2020, that would have a material effect on the Group[145].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 82,765,000, an increase of 19.8% compared to HKD 69,164,000 for the same period in 2019[5] - Gross profit for the same period was HKD 13,601,000, representing a gross margin of 16.4%, up from HKD 10,681,000 in 2019[5] - Profit before tax was HKD 2,191,000, a decrease of 9.7% from HKD 2,426,000 in the previous year[5] - Net profit for the period was HKD 1,812,000, compared to HKD 1,908,000 in 2019, reflecting a decline of 5.0%[5] - Basic and diluted earnings per share for the period were HKD 0.18, down from HKD 0.19 in the same period last year[5] - The company reported a gross profit margin of 16% for the first half of 2020, consistent with the previous year's margin[63] - Gross profit rose by approximately HKD 2,920,000 or 27.3% to about HKD 13,601,000, although the gross margin decreased due to increased subcontracting and material costs[67] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 178,816,000, a slight decrease from HKD 183,870,000 as of December 31, 2019[7] - Current liabilities decreased to HKD 16,756,000 from HKD 23,601,000 at the end of 2019, indicating improved liquidity[7] - Shareholders' equity increased to HKD 163,411,000 from HKD 161,599,000, reflecting a growth of 1.1%[7] - The company recorded trade payables of HKD 9,613,000 as of June 30, 2020, an increase from HKD 7,741,000 as of December 31, 2019[13] - The company’s total liabilities decreased, reflecting a strategic focus on managing financial obligations effectively[47] Cash Flow and Financial Management - The company reported a cash balance of HKD 94,002,000, down from HKD 99,208,000 at the end of 2019[7] - The company experienced a net cash decrease of HKD 3,859,000, compared to an increase of HKD 11,241,000 in the previous year[11] - Operating cash flow before changes in working capital was HKD 2,476,000, compared to HKD 2,087,000 in the previous year, reflecting an increase of 18.6%[11] - Interest income from bank deposits decreased to HKD 628,000 from HKD 848,000, a decline of 26%[22] - The financial costs decreased to HKD 46,000 from HKD 96,000, a reduction of 52.1%[24] Employee and Administrative Costs - Employee costs, including directors' remuneration, increased to HKD 14,535,000 from HKD 11,326,000, reflecting a rise of 28.9%[25] - Administrative expenses increased from approximately HKD 9,321,000 to about HKD 13,626,000, primarily due to higher employee costs[70] - As of June 30, 2020, the group employed 81 employees, an increase from 70 employees as of December 31, 2019, with total employee costs amounting to approximately HKD 14,535,000, up from HKD 11,326,000 in the same period last year[95] Market and Strategic Developments - The group continues to explore new strategies for market expansion and product development to enhance future growth prospects[4] - The company secured three new projects during the reporting period, with a total contract value of approximately HKD 98.8 million[79] - The company continues to strengthen financial management and licensing qualifications to enhance its market position as a quality HVAC engineering service provider[59] Compliance and Governance - The company has maintained compliance with bank financing conditions, ensuring no violations as of June 30, 2020[52] - The company has established a non-competition agreement with its major shareholders, ensuring compliance since the listing date[96] - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange, enhancing internal control systems and risk management[113] - The audit committee has independently reviewed the group's unaudited interim financial performance during the reporting period[116] Dividends and Share Options - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[29] - The company has adopted a share option scheme to incentivize qualified participants, allowing for the issuance of options up to 10% of the total issued shares post-global offering, which amounts to 1,000,000,000 shares[108] - No share options have been granted under the scheme since its adoption and up to the date of the interim report[111] Impact of COVID-19 - The impact of the COVID-19 pandemic on the company's operations and financial condition remains uncertain, with ongoing monitoring and preventive measures in place[57]