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]

Financial Performance - For the year ended December 31, 2019, the Group recorded a revenue of approximately HK$114,489,000, representing a year-on-year decrease of 30.0% compared to HK$163,629,000 in 2018[11]. - The profit attributable to equity shareholders for 2019 was approximately HK$1,007,000, a decrease of 92.0% compared to HK$12,581,000 in the previous year[11]. - The Group's profit before taxation for 2019 was HK$2,310,000, down from HK$18,302,000 in 2018[8]. - The Group's gross profit margin for the year was 21%, down from 32% in the previous year[30]. - The Group's gross profit decreased by approximately HK$29,469,000 or 55.5%, from approximately HK$53,100,000 for the year ended 31 December 2018 to approximately HK$23,631,000 for the year ended 31 December 2019, with a gross profit margin decline from approximately 32.5% to approximately 20.6%[47]. - Profit and total comprehensive income attributable to equity shareholders of the Company was approximately HK$1,007,000 for the year ended 31 December 2019, down from approximately HK$12,581,000 in 2018, mainly due to decreased revenue[54]. Assets and Liabilities - Current assets as of December 31, 2019, were HK$183,870,000, an increase from HK$176,066,000 in 2018[9]. - Non-current assets increased to HK$2,663,000 in 2019 from HK$1,012,000 in 2018[9]. - Total equity attributable to equity shareholders was HK$161,599,000 in 2019, slightly up from HK$160,606,000 in 2018[9]. - The Group's net assets as of December 31, 2019, were HK$161,599,000, compared to HK$160,606,000 in 2018[9]. - The Group had net current assets of approximately HK$160,269,000 as at 31 December 2019, slightly up from approximately HK$159,853,000 in 2018, with a quick ratio of approximately 7.8 times[75]. - As of December 31, 2019, the Group's gearing ratio was approximately 2.1%, up from 0.9% in 2018[78]. - Trade receivables increased by approximately HK$12,484,000 from approximately HK$20,757,000 as at 31 December 2018 to approximately HK$33,241,000 as at 31 December 2019, largely due to a payment certificate of approximately HK$18,000,000 issued near the end of 2019[56]. - Trade payables increased by approximately HK$3,563,000 from approximately HK$4,178,000 as at 31 December 2018 to approximately HK$7,741,000 as at 31 December 2019, mainly due to the purchase of HVAC systems[59]. - Retention receivables increased by approximately HK$4,717,000 from approximately HK$14,692,000 as at 31 December 2018 to approximately HK$19,409,000 as at 31 December 2019, in line with project progress[57]. Revenue and Market Challenges - The decline in revenue was primarily due to delays in a large project and slow construction progress, as well as a slowdown in the Hong Kong property market, leading to fewer new projects available for tender[13]. - The overall profitability decline was attributed to the protracted delays and slow progress in construction of significant projects[13]. - The Group's cost of services decreased by approximately HK$19,671,000 or 17.8% to approximately HK$90,858,000 for the year ended December 31, 2019, compared to approximately HK$110,529,000 in 2018[45]. - The Group aims to explore new strategies for market expansion and product development in the upcoming year[10]. - The Group aims to strengthen relationships with suppliers and existing customers while actively exploring potential development opportunities to enhance future profitability[14]. Corporate Governance and Management - The Group will continue to improve financial management, internal control, and corporate governance to ensure stable and sustainable development[15]. - The management team is committed to monitoring business operations and making significant operational decisions to ensure sustainable growth[120]. - The company emphasizes compliance and internal control through its independent non-executive directors[133]. - The management team has a diverse background in finance, law, and corporate governance, enhancing the company's strategic direction[133]. - The Company has maintained a stable management structure with experienced directors and senior management overseeing its operations[143][145]. Future Plans and Strategic Direction - The Group aims to enhance competitiveness by delivering high-quality services and maintaining good relationships with stakeholders, with no significant disputes reported during the year[164]. - Future plans include the continued expansion of market presence and potential mergers and acquisitions to drive growth[120]. - The Group is focused on becoming the preferred choice of first-tier HVAC E&M engineering subcontractor for property developers in Hong Kong[34]. - The Company is committed to expanding its market presence in the HVAC sector within Hong Kong, leveraging its expertise and experience[152]. Shareholder Information and Dividends - The Board does not recommend declaring a final dividend for the year ended 31 December 2019, consistent with the previous year where no dividend was declared[169]. - The Company does not have a fixed dividend policy, and future dividends will depend on various factors including operations, earnings, and cash flow position[170]. - As of December 31, 2019, the total reserves attributable to equity shareholders of the Company amounted to HK$85,793,000, a decrease from HK$92,745,000 in 2018[179]. - The Company has adopted a Share Option Scheme to incentivize eligible participants, with a maximum of 10% of the total shares in issue (1,000,000,000 shares) available for options[181]. Compliance and Risk Management - There was no material breach of applicable laws and regulations by the Group during the year ended 31 December 2019, which significantly impacted its business and operations[156]. - The Group's focus on risk control aims to address uncertainties that may affect financial conditions or growth prospects[165]. - The Company has a strong focus on compliance, internal control, and corporate governance, overseen by independent non-executive directors[140].

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of HKD 41,092,000, a decrease of 52.2% compared to HKD 85,913,000 in the same period of 2018[6] - Gross profit for the same period was HKD 10,681,000, down 64.3% from HKD 29,869,000 year-on-year[6] - The company recorded a profit before tax of HKD 2,426,000, a decline of 82.1% from HKD 13,546,000 in the previous year[6] - Net profit for the period was HKD 1,908,000, a decrease of 81.0% compared to HKD 10,025,000 in 2018[6] - Basic earnings per share fell to HKD 0.19, down 81.0% from HKD 1.00 in the same period last year[6] - The group’s net profit after tax decreased by over 80% due to the slowdown in the Hong Kong real estate market and general economic uncertainties[66] - Gross profit fell by approximately HKD 19,188,000 or 64.2% to about HKD 10,681,000, with the gross profit margin declining from approximately 35% to 26%[72] Assets and Liabilities - Total assets as of June 30, 2019, were HKD 172,323,000, a slight decrease from HKD 176,066,000 at the end of 2018[8] - Current liabilities decreased to HKD 10,699,000 from HKD 16,213,000 at the end of 2018, indicating improved liquidity[8] - The company’s net asset value increased to HKD 162,490,000 from HKD 160,606,000 at the end of 2018[8] - As of June 30, 2019, trade receivables amounted to HKD 26,943,000, a decrease of 25% from HKD 35,960,000 as of December 31, 2018[12] - Trade payables as of June 30, 2019, were HKD 5,452,000, an increase of 30.5% from HKD 4,178,000 as of December 31, 2018[51] - The financing lease obligations as of June 30, 2019, were HKD 138,000, a decrease from HKD 298,000 as of December 31, 2018[53] Cash Flow - The company’s cash and cash equivalents increased to HKD 117,756,000 from HKD 107,391,000 at the end of 2018[8] - The net cash used in financing activities decreased significantly to HKD (654) thousand from HKD (10,226) thousand in the previous year, indicating improved cash flow management[12] - The net increase in cash and cash equivalents for the six months ended June 30, 2019, was HKD 11,241 thousand, compared to HKD 18,102 thousand in the same period of 2018, reflecting a decrease of approximately 37.5%[12] - The cash and cash equivalents at the beginning of the period were HKD 106,515 thousand, which increased to HKD 117,756 thousand by the end of the period, showing a positive cash position[12] Operational Focus - The company plans to focus on operational efficiency and cost management to improve profitability in the upcoming periods[6] - The group will continue to enhance its service capabilities and pursue long-term stable business growth despite recent adverse business conditions[80] Accounting Standards - The company has adopted the new Hong Kong Financial Reporting Standard 16 (HKFRS 16) for leases, which has resulted in the recognition of additional right-of-use assets and lease liabilities[19] - The transition to HKFRS 16 has led to the measurement of lease liabilities at the present value of remaining lease payments, which may impact future financial statements[24] - The company has not applied any new standards or interpretations that have not yet come into effect for the current accounting period, ensuring compliance with existing regulations[18] - The group expects to reflect any changes in accounting policies in the annual financial statements for the year ending December 31, 2019, indicating ongoing adjustments to financial reporting practices[18] Employee and Administrative Costs - Employee costs for the six months ended June 30, 2019, amounted to HKD 11,326,000, slightly down from HKD 11,556,000 in 2018[40] - Administrative expenses increased to approximately HKD 9,321,000 from HKD 8,981,000, mainly due to higher professional consultancy fees[73] - The group employed 68 employees as of June 30, 2019, down from 79 employees on December 31, 2018[92] Share Capital and Dividends - The company did not recommend the payment of an interim dividend for the reporting period[42] - The board does not recommend the payment of an interim dividend for the reporting period, compared to HKD 18,000,000 in the same period last year[76] - The company's authorized share capital increased to HKD 50,000,000 as of June 30, 2019, from HKD 380,000 at the time of incorporation[60] Governance and Compliance - The financial report is prepared in accordance with the applicable disclosure provisions of the Stock Exchange of Hong Kong, ensuring transparency and adherence to regulatory standards[15] - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange regulations[108] - The audit committee has reviewed the unaudited interim financial results for the reporting period[111]

Financial Performance - Revenue for the year ended December 31, 2018, was HK$163,629,000, an increase from HK$125,846,000 in 2017, representing a growth of 30%[7] - Profit for the year was HK$12,581,000, down from HK$23,404,000 in 2017, indicating a decrease of 46%[7] - Current assets as of December 31, 2018, totaled HK$176,066,000, significantly higher than HK$86,530,000 in 2017, reflecting an increase of 103%[7] - Net assets reached HK$160,606,000 in 2018, compared to HK$48,177,000 in 2017, showing a substantial growth of 234%[7] - Current liabilities decreased to HK$16,213,000 in 2018 from HK$39,409,000 in 2017, a reduction of 59%[7] - Non-current liabilities were HK$259,000 in 2018, down from HK$536,000 in 2017, indicating a decrease of 52%[7] - The company reported a profit before taxation of HK$18,302,000 for 2018, compared to HK$28,734,000 in 2017, a decline of 36%[7] - Total equity attributable to equity shareholders of the company was HK$160,606,000 in 2018, up from HK$48,177,000 in 2017, marking an increase of 234%[7] Revenue and Growth Strategies - The Group's revenue increased by approximately HK$37,783,000 or 30.0% to approximately HK$163,629,000 for the year ended 31 December 2018[22] - The increase in revenue was primarily due to several large-scale projects, with a substantial portion of contract revenue recorded during the year following project execution progress[23] - The Group focuses on providing HVAC E&M engineering services primarily for new residential property developments in Hong Kong[12] - The Group aims to expand its market presence and enhance product offerings in the upcoming fiscal year[9] - New product development and technological advancements are key strategies for future growth and market expansion[9] Cost and Expenses - The Group's cost of services increased by approximately HK$36,409,000 or 49.1% to approximately HK$110,529,000 for the year ended 31 December 2018, compared to approximately HK$74,120,000 for the year ended 31 December 2017[25] - Gross profit increased by approximately HK$1,374,000 or 2.7% to approximately HK$53,100,000 for the year ended 31 December 2018, while the gross profit margin decreased from approximately 41.1% to 32.5%[26] - Total subcontracting fees increased by approximately HK$26,431,000 or 90.3% from approximately HK$29,276,000 for the year ended 31 December 2017 to HK$55,707,000 for the year ended 31 December 2018[26] - Administrative expenses increased from approximately HK$19,624,000 for the year ended 31 December 2017 to approximately HK$20,982,000 for the year ended 31 December 2018[33] - Listing expenses increased by approximately HK$11,900,000 or 307.3% from approximately HK$3,872,000 for the year ended 31 December 2017 to approximately HK$15,772,000 for the year ended 31 December 2018[34] Assets and Liabilities - Trade receivables decreased by approximately HK$6,602,000 from approximately HK$27,359,000 as at 31 December 2017 to approximately HK$20,757,000 as at 31 December 2018[44] - Retention receivables increased by approximately HK$2,628,000 from approximately HK$12,064,000 as at 31 December 2017 to approximately HK$14,692,000 as at 31 December 2018[45] - Trade payables decreased by approximately HK$1,839,000 from approximately HK$6,017,000 as at 31 December 2017 to approximately HK$4,178,000 as at 31 December 2018[47] - Other payables and accruals increased by approximately HK$403,000 from approximately HK$4,512,000 as at 31 December 2017 to approximately HK$4,915,000 as at 31 December 2018[48] - As of December 31, 2018, the Group's net current assets were approximately HK$159,853,000, a significant increase from HK$47,121,000 in 2017[56] Management and Governance - The Group has established a strong management team with diverse expertise in finance, law, and corporate governance, enhancing operational efficiency[90][91][98] - The management team is committed to maintaining high standards of corporate governance and internal controls to safeguard shareholder interests[91][98] - The Group's leadership structure includes experienced professionals with backgrounds in finance, law, and engineering, contributing to its strategic direction[90][91][98] - The ongoing focus on compliance and governance is expected to strengthen the Group's market position and investor confidence[91][98] - The Company emphasizes the importance of corporate governance and compliance in its operations[103] Environmental, Social, and Governance (ESG) - The Group's Environmental, Social and Governance (ESG) Report covers the period from January 1, 2018, to December 31, 2018[183] - The Group has complied with the ESG Reporting Guide and will continue to optimize the disclosure of key performance indicators (KPIs)[183] - The Group actively undertook social responsibilities and promoted regional economic development and employment[186] - The Group has implemented an environmental management system to comply with environmental protection laws, including the Air Pollution Control Ordinance and Noise Control Ordinance[192] - The Group generated no significant hazardous and non-hazardous waste due to its business nature during the Reporting Period[195] Future Outlook and Plans - The Group intends to expand its professional talent pool by hiring chartered engineers and other specialists over the next two to three years, depending on business growth[55] - The Group's future outlook includes expanding service capabilities in HVAC E&M engineering services while pursuing stable returns for shareholders[53] - The Group plans to maintain stable business growth by strengthening relationships with suppliers and existing customers while exploring new development opportunities[18] - The Group aims to enhance competitiveness by delivering high-quality services and maintaining good relationships with stakeholders[125] Shareholder and Capital Management - The net proceeds from the Share Offer amounted to approximately HK$102.4 million, intended for specific purposes as outlined in the Prospectus[115] - The Company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2018[132] - The Company did not make any donations during the year ended December 31, 2018, compared to HK$57,000 in 2017[132] - The Board does not have a fixed dividend policy, and future dividends will depend on various factors including operations and earnings[131] - The Company has no significant foreign currency risk as its monetary assets, liabilities, and transactions are primarily denominated in Hong Kong dollars[67]