Financial Performance - Revenue for the six months ended June 30, 2022, was approximately HK$31.0 million, a decrease of approximately 58.4% compared to HK$74.5 million in the same period last year[7] - Net loss for the period was approximately HK$5.2 million, representing a decrease of approximately 73.6% from a net loss of HK$19.7 million in the corresponding period of 2021[7] - Basic and diluted loss per share was approximately HK$0.64 cents, compared to approximately HK$2.91 cents loss per share in 2021[7] - Gross profit for the period was approximately HK$8.1 million, compared to a gross loss of approximately HK$4.9 million in the same period last year[12] - Operating loss for the six months was approximately HK$4.7 million, a significant improvement from an operating loss of HK$19.3 million in 2021[12] - Total comprehensive expense for the period was approximately HK$5.2 million, down from HK$19.7 million in the previous year[12] - The Group reported other income and net gains of approximately HK$0.27 million, compared to HK$0.14 million in the previous year[12] - The company reported a loss of HK$5,169,000 for the six months ended June 30, 2022, compared to a loss of HK$19,692,000 for the same period in 2021, indicating a significant reduction in losses[17] - Net loss decreased by approximately HK$14.5 million to approximately HK$5.2 million in the Reporting Period, representing a decrease of approximately 73.6% compared to approximately HK$19.7 million in the six months ended 30 June 2021[76] Dividends and Shareholder Returns - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[7] - No dividend was recommended for the six months ended June 30, 2022, consistent with the previous year[49] - The Company did not recommend payment of interim dividends to shareholders for the Reporting Period[126] Assets and Liabilities - Total assets decreased from HK$74,455,000 as of December 31, 2021, to HK$62,592,000 as of June 30, 2022, representing a decline of approximately 16.1%[13] - Total equity fell from HK$17,295,000 to HK$12,126,000, a decrease of about 29.8%[13] - Current liabilities increased from HK$52,021,000 to HK$47,031,000, showing a reduction of approximately 9.6%[15] - Total liabilities decreased from HK$57,160,000 to HK$50,466,000, a decline of approximately 11.7%[16] - Non-current liabilities decreased from HK$5,139,000 to HK$3,435,000, a reduction of about 33.1%[15] - Trade and other payables decreased from HK$32,181,000 to HK$21,755,000, a decline of approximately 32.4%[15] - Trade receivables as of June 30, 2022, amounted to HK$15,611,000, down from HK$19,135,000 as of December 31, 2021, reflecting a decrease of 18.5%[54] - Total trade and other payables as of June 30, 2022, were HK$21,755,000, a decrease from HK$32,181,000 as of December 31, 2021, representing a 32.4% reduction[63] Cash Flow and Financial Position - Net cash used in operating activities was HK$1,544,000 for the six months ended June 30, 2022, compared to HK$8,030,000 for the same period in 2021, indicating an improvement in cash flow[20] - Cash and cash equivalents at the end of the period were HK$(7,338,000), down from HK$10,676,000 in 2021, reflecting a decrease of approximately 168.7%[21] - Cash flows from investing activities generated a net cash inflow of HK$122,000, compared to a net cash outflow of HK$4,430,000 in 2021, showing a positive shift[20] - The Group had cash and bank balance of approximately HK$2.4 million as at 30 June 2022, an increase from approximately HK$0.5 million as at 31 December 2021[80] Operational Efficiency - Administrative and other operating expenses were reduced to approximately HK$12.8 million from HK$14.8 million in 2021[12] - Total staff costs, including directors' remuneration, were HK$17,545,000, a significant decrease of 62.3% from HK$46,586,000 in the previous year[40] - Depreciation of owned assets was HK$3,630,000, down from HK$4,281,000, while depreciation of right-of-use assets increased to HK$3,793,000 from HK$2,532,000[40] - The Group's current ratio was approximately 1.0, with total assets of approximately HK$62.6 million, financed by total liabilities of approximately HK$50.5 million and shareholders' equity of approximately HK$12.1 million[80] Business Operations - The Group operates primarily in Hong Kong and Macau, focusing on concrete demolition services as a subcontractor[1] - The Group has been operating in the concrete demolition industry since 1985 in Hong Kong and since 2006 in Macau, focusing on subcontracting services[65] - The Group's services are required in various construction scenarios, including public and private sector projects, indicating a diverse client base[65] Compliance and Governance - The unaudited condensed consolidated financial statements for the six months ended June 30, 2022, have been prepared in accordance with Hong Kong Accounting Standard 34[25] - The financial statements should be read in conjunction with the Group's audited consolidated annual financial statements for the year ended December 31, 2021[25] - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the Reporting Period, confirming compliance with applicable accounting standards and adequate disclosures[128] Shareholding and Interests - Directors Mr. Cheung Shek On and Mr. Chan Yuk Sing each held 130,900,000 shares, representing 16.23% of the shareholding[96] - Director Mr. Kwok Shun Tim held 126,000,000 shares, representing 15.62% of the shareholding[96] - Sino Continent Holdings Limited holds 130,900,000 ordinary shares, representing 16.23% of the total issued share capital of the Company[105] - Supreme Voyage Limited also holds 130,900,000 ordinary shares, equivalent to 16.23% of the total issued share capital[109] - Applewood Developments Limited owns 126,000,000 ordinary shares, accounting for 15.62% of the total issued share capital[109] - As of June 30, 2022, there are no short positions held by Directors or chief executives in the Company's shares[101] - The Company did not purchase, sell, or redeem any of its listed securities during the reporting period[118] - There are no competing interests reported by the Directors or controlling shareholders during the reporting period[117] - The Company is not aware of any other persons/entities with interests or short positions in shares as of June 30, 2022[116] Employee and Remuneration Policies - The Group's remuneration policies include performance-based bonuses and other benefits, reflecting a commitment to employee development and internal promotion[88] - As of June 30, 2022, the Group had 99 full-time employees, a slight decrease from 100 employees as of December 31, 2021[87] - Staff costs for the reporting period were approximately HK$17.5 million, significantly lower than HK$46.6 million for the same period in 2021, indicating a reduction of about 62.5%[87]

Financial Performance - For the Financial Year 2021, the Group's revenue decreased by approximately HK$7.2 million to approximately HK$101.7 million, compared to approximately HK$108.9 million for the Financial Year 2020[10] - The Group recorded a net loss of approximately HK$41.0 million in the Financial Year 2021, an improvement from the net loss of HK$66.1 million in the Financial Year 2020[10] - The decrease in revenue was mainly due to the combined effect of a decrease in gross loss margin and administrative and other operating expenses[10] - The Group's revenue for the Financial Year 2021 was approximately HK$101.7 million, representing a decrease of approximately 6.6% from HK$108.9 million in the Financial Year 2020[21] - The gross loss decreased from approximately HK$31.4 million in the Financial Year 2020 to approximately HK$13.9 million in the Financial Year 2021, with a gross loss margin decreasing from approximately 28.8% to approximately 13.7%[22] - Administrative and other operating expenses decreased by approximately HK$4.2 million, representing a decrease of approximately 12.3%, to approximately HK$29.9 million in the Financial Year 2021[23] - Net loss decreased by approximately HK$25.1 million to approximately HK$41.0 million in the Financial Year 2021, a decrease of approximately 38.0% compared to HK$66.1 million in the Financial Year 2020[26] Assets and Liabilities - As of 31 December 2021, the Group's current ratio was approximately 1.0, down from approximately 1.3 as of 31 December 2020[34] - The Group had total assets of approximately HK$74.5 million, financed by total liabilities of approximately HK$57.2 million and shareholders' equity of approximately HK$17.3 million[34] - Cash and bank balances as of 31 December 2021 were approximately HK$0.5 million, a significant decrease from approximately HK$10.9 million as of 31 December 2020[34] - The gearing ratio as of 31 December 2021 was approximately 115.2%, up from 61.2% as of 31 December 2020[35] - The Group recorded a debt ratio of approximately 115.2% as of December 31, 2021, compared to 61.2% on December 31, 2020[42] Capital Expenditure - Capital expenditure during the Financial Year 2021 was approximately HK$10.5 million, compared to HK$8.5 million in the Financial Year 2020[36] - Capital expenditure for the fiscal year 2021 was approximately HK$10.5 million, an increase from HK$8.5 million in the fiscal year 2020[43] Workforce and Employee Costs - As of December 31, 2021, the Group had 100 full-time employees, a decrease from 224 full-time employees as of December 31, 2020[61] - Employee costs for the Financial Year 2021 were approximately HK$73.3 million, down from HK$79.4 million in the Financial Year 2020, representing a decrease of about 6.9%[61] Market Conditions and Business Operations - The economic outlook remains uncertain, with the Group cautious about risks related to the COVID-19 pandemic[17] - The Group's operations are primarily affected by the availability of construction and civil engineering projects in Hong Kong and Macau, influenced by economic conditions and government policies[47] - Labour shortages in the construction industry have led to increased daily wages for workers in the concrete demolition sector in Hong Kong and Macau[50] - The Group's financial performance may be adversely affected if it fails to recruit or retain sufficient workers due to local labour supply shortages[51] - The Group's business is subject to risks of cost overruns and project delays, which can negatively impact profit margins and operating results[47] Corporate Governance - The Company has adhered to the principles of the corporate governance code during the Financial Year 2021, with one exception regarding the roles of Chairman and CEO being held by the same individual[91] - The Company complied with the applicable code provisions of the Corporate Governance Code throughout the Financial Year 2021, except for the separation of roles of chairman and chief executive officer[151] - The Board consists of six Directors, including three executive Directors and three Independent Non-Executive Directors (INEDs)[157] - The Board is responsible for formulating the Group's overall strategies, setting management targets, and supervising management performance[152] - The Company has a commitment to sound corporate governance for long-term success[150] - The Board regularly receives management update reports to assess the Group's performance and prospects[159] Audit and Compliance - The Audit Committee reviewed the Group's consolidated financial statements for the Financial Year 2021 and confirmed compliance with applicable accounting standards and adequate disclosures[82] - The Audit Committee consists of three independent non-executive directors, with Mr. Chow Ching To serving as the chairman, possessing relevant accounting and financial management expertise[191] - The Audit Committee is responsible for overseeing the internal control system and corporate governance practices[191] - The Audit Committee held two meetings during the Financial Year 2021[190] Management and Directors - Mr. Cheung Shek On has over 30 years of experience in the concrete demolition industry and has been with the Group since its establishment in 1985[108] - Mr. Chan Yuk Sing, co-founder of the Group, also has over 30 years of experience in the concrete demolition industry[109] - Mr. Chen Yeung Tak has over 14 years of experience in auditing, accounting, and financial management, and serves as the company secretary[110] - Mr. Mak has over 30 years of experience in the construction industry, having joined the Group in July 1996 and promoted to chief technical officer in December 2012[128] - Mr. Mak is responsible for the overall operation of the concrete demolition business, including tendering, work processing, quality control, and work safety supervision[128] Future Outlook - The Group aims to improve performance and enhance competitiveness in the market amidst ongoing challenges[17] - The daily number of confirmed COVID-19 cases shows a downward trend, and the Group believes the situation will improve with increased vaccination rates[17]

Financial Performance - For the Financial Year 2020, the Group's revenue increased by approximately HK$8.0 million to approximately HK$108.9 million, compared to approximately HK$100.9 million for the Financial Year 2019[13]. - The Group recorded a net loss of approximately HK$66.1 million in the Financial Year 2020, compared to a net loss of HK$24.7 million in the Financial Year 2019[13]. - The increase in net loss was primarily due to project delays caused by the COVID-19 pandemic and increased costs from hiring additional labor[13]. - The Group's revenue for the Financial Year 2020 was approximately HK$108.9 million, representing a stable growth of approximately 7.9% from approximately HK$100.9 million for the Financial Year 2019[25]. - The Group recorded a gross loss of approximately HK$31.4 million in the Financial Year 2020, compared to a gross profit of HK$17.9 million for the Financial Year 2019, resulting in a gross loss margin of 28.8%[26]. - Administrative and other operating expenses increased by approximately HK$3.2 million (10.4%) to HK$34.1 million for the Financial Year 2020, compared to HK$30.9 million for the Financial Year 2019[31]. - Net loss increased by approximately HK$41.4 million to approximately HK$66.1 million in the Financial Year 2020, representing an increase of approximately 167.6% compared to approximately HK$24.7 million for the Financial Year 2019[31]. - The Group recognized approximately HK$5.6 million net impairment losses on financial assets and contract assets for the Financial Year 2020, compared to approximately HK$6.4 million for the Financial Year 2019[31]. - Impairment losses of non-financial assets amounted to approximately HK$1.2 million for the Financial Year 2020, down from approximately HK$6.0 million for the Financial Year 2019[31]. Market and Strategic Outlook - The Group adopted a more competitive project pricing strategy in response to market competition and the adverse effects of the COVID-19 pandemic[13]. - The management remains cautiously optimistic about the market outlook for 2021, anticipating a decline in uncertainties due to vaccination campaigns[14]. - The Directors believe that the availability of COVID-19 vaccines will aid economic recovery and the Group aims to undertake more sizeable projects[24]. - The Group aims to improve performance and build value for customers moving forward[14]. - The COVID-19 pandemic presented unprecedented challenges for all businesses in 2020[14]. Workforce and Labor Costs - The Group's employee costs for the Financial Year 2020 were approximately HK$79.4 million, an increase from HK$49.0 million in the previous year, reflecting a significant rise in labor expenses[59]. - As of December 31, 2020, the Group had 224 full-time employees, up from 160 full-time employees a year earlier, indicating a growth in workforce[59]. - The construction industry in Hong Kong and Macau is facing a labor shortage, which has led to increased daily wages for workers in the concrete demolition sector[52]. - The Group's financial performance may be adversely affected if it fails to recruit or retain sufficient workers due to the local labor supply shortage[53]. - The Group's ability to manage staff costs effectively is critical, as any labor shortages could materially impact business operations and financial performance[49]. Corporate Governance - The Company has complied with the Corporate Governance Code during the Financial Year 2020, except for the deviation regarding the roles of chairman and chief executive being held by the same individual[72]. - The Board consists of six Directors, including three executive Directors and three Independent Non-Executive Directors (INEDs) to ensure a strong independent element[112]. - The Company emphasizes sound corporate governance as crucial for long-term success and shareholder interests[104]. - The Board has reviewed and is satisfied with the effectiveness of the corporate governance policy of the Group[115]. - The Company has adopted a Code of Conduct for securities transactions, with all directors confirming compliance during the financial year 2020[131]. Risk Management and Internal Control - The Board is responsible for establishing and maintaining effective risk management and internal control systems to safeguard shareholders' interests[163]. - The Group conducted an annual review of its internal control system, with no significant areas of concern identified[174]. - The risk management framework ensures risks associated with different business units are effectively controlled in line with the Group's risk appetite[172]. - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss[175]. - The Group does not have an internal audit department but relies on the Board and Audit Committee for risk management and internal control[173]. Shareholder Rights and Engagement - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting (EGM) within two months of deposit[188]. - The requisition for an EGM must clearly state the purpose, be signed by eligible shareholders, and include a reasonable deposit to cover expenses[193]. - If the Board fails to convene an EGM within 21 days of a valid requisition, the eligible shareholders may do so themselves[195]. - The company reported a significant increase in shareholder engagement, with a clear process for submitting written inquiries to the board[197]. - Shareholders have the right to propose resolutions at special general meetings, following specific procedures outlined in the company's bylaws[198].

Financial Performance - Revenue for the six months ended June 30, 2020, was approximately HK$53.6 million, representing an increase of approximately 6.3% compared to HK$50.4 million in the same period last year [10]. - Net loss for the same period amounted to approximately HK$18.8 million, an increase of approximately 337.2% from a net loss of HK$4.3 million in 2019 [10]. - Basic and diluted loss per share was approximately HK2.80 cents, compared to approximately HK0.64 cents in 2019 [10]. - The operating loss for the period was HK$18,376,000, compared to an operating loss of HK$3,322,000 in the same period of 2019, indicating a significant decline in performance [16]. - The company reported a total comprehensive loss of HK$18,812,000 for the period, compared to a total comprehensive loss of HK$4,314,000 in 2019 [16]. - The net loss increased by approximately HK$14.5 million to approximately HK$18.8 million, representing an increase of approximately 337.2% compared to HK$4.3 million in the six months ended 30 June 2019 [78]. - The Group recorded a gross loss of approximately HK$1.0 million in the Reporting Period compared to a gross profit of HK$11.7 million for the six months ended 30 June 2019, resulting in a gross loss margin of 1.9% compared to a gross profit margin of 23.2% [75]. Dividend and Shareholder Value - The Board of Directors did not recommend the payment of an interim dividend for the six months ended June 30, 2020, consistent with the previous year [10]. - The Group did not recommend the payment of dividends for the six months ended 30 June 2020, consistent with no dividends declared in 2019 [53]. - The Group remains committed to enhancing shareholder value despite the current financial challenges [15]. Assets and Liabilities - Total assets decreased to HK$121,156,000 as of June 30, 2020, down from HK$137,338,000 at the end of 2019, reflecting a reduction of approximately 11.8% [17]. - Total equity as of June 30, 2020, was HK$84,295,000, a decrease of 18.3% from HK$103,107,000 at the end of 2019 [17]. - Current assets totaled HK$98,568,000 as of June 30, 2020, down from HK$114,276,000 at the end of 2019, representing a decline of approximately 13.7% [17]. - Cash and bank balances decreased to HK$9,838,000 from HK$17,895,000, a decline of 45% [17]. - Non-current liabilities increased to HK$6,209,000 as of June 30, 2020, compared to HK$4,865,000 at the end of 2019, indicating a rise of approximately 27.5% [20]. - As of 30 June 2020, the Group's current ratio was approximately 3.2, down from approximately 3.9 as of 31 December 2019 [78]. - Total assets were approximately HK$121.2 million, financed by total liabilities of approximately HK$36.9 million and shareholders' equity of approximately HK$84.3 million [78]. - The gearing ratio as of 30 June 2020 was approximately 19.2%, an increase from 14.6% as of 31 December 2019 [78]. Cash Flow - Net cash used in operating activities was HK$2,109,000 for the six months ended June 30, 2020, compared to net cash generated of HK$4,142,000 in 2019 [26]. - Net cash used in investing activities was HK$1,769,000, a significant decrease from HK$7,444,000 in the previous year [26]. - Net cash used in financing activities was HK$4,179,000, compared to net cash generated of HK$6,139,000 in the same period of 2019 [26]. - Cash and cash equivalents at the end of the period were HK$9,838,000, down from HK$29,301,000 at the end of June 2019 [26]. Operational Challenges and Strategies - The Group's financial results indicate a significant increase in losses, highlighting potential challenges in operational efficiency [10]. - The Group continues to focus on strategic initiatives to improve financial performance and operational resilience [15]. - Management is exploring opportunities for market expansion and potential new product development to drive future growth [15]. - The financial highlights suggest a need for a reassessment of cost management strategies to mitigate losses [15]. - The Group aims to undertake more sizeable projects and strengthen cost control measures to generate more revenue and reduce costs in response to the challenges posed by the COVID-19 pandemic [70]. - The decrease in the number of sizeable projects and delays in certain projects due to the COVID-19 pandemic were significant factors contributing to the gross loss [75]. Corporate Governance - The Company has complied with the Corporate Governance Code during the Reporting Period, except for the deviation regarding the separation of roles of chairman and chief executive [117]. - The Audit Committee consists of three independent non-executive Directors, responsible for reviewing financial reporting and internal control systems [127]. - Major decisions are made after consultation with the Board and appropriate committees, ensuring a balance of power and authority within the Company [117]. - The Company has adopted the required standard of dealings for securities transactions by Directors, with all confirming compliance during the Reporting Period [119]. Shareholding Structure - As of June 30, 2020, Mr. Cheung Shek On and Mr. Chan Yuk Sing each hold 189,000,000 ordinary shares, representing 28.125% of the company's total issued share capital [101][105]. - Sino Continent Holdings Limited and Supreme Voyage Limited are the beneficial owners of 189,000,000 shares each, both accounting for 28.125% of the total issued share capital [112]. - Applewood Developments Limited holds 126,000,000 shares, which is 18.75% of the total issued share capital [112]. - The total number of shares held by substantial shareholders reflects significant ownership concentration within the company [112]. - The company maintains a register of interests as required by the SFO, ensuring transparency in shareholding [110].

Financial Performance - The Group's revenue decreased by approximately HK$46.5 million to approximately HK$100.9 million for the Financial Year 2019, compared to approximately HK$147.4 million for the Financial Year 2018[12]. - The Group recorded a net loss of approximately HK$24.7 million in the Financial Year 2019, compared to a net profit of HK$20.2 million in the Financial Year 2018[12]. - The Group's revenue for the Financial Year 2019 was approximately HK$100.9 million, representing a decrease of approximately 31.5% from approximately HK$147.4 million for the Financial Year 2018[24]. - The Group's gross profit decreased from approximately HK$51.7 million for the Financial Year 2018 to approximately HK$17.9 million for the Financial Year 2019, with a gross profit margin decline from approximately 35.1% to approximately 17.7%[25]. - Excluding non-recurring impairment losses, the Group's net loss for the Financial Year 2019 would be approximately HK$18.7 million[12]. - The decrease in revenue was attributed to the substantial completion of sizable projects in late 2018 and increased competition in the construction market[12]. - The decrease in revenue and gross profit was mainly due to the substantial completion of sizable projects in late 2018 and increased competition in the construction market[24][25]. Impairment and Losses - The Group recognized impairment losses of non-financial assets amounting to approximately HK$6.0 million due to the reported loss for the Financial Year 2019[12]. - The Group recognized approximately HK$6.4 million net impairment losses on financial assets and contract assets for the Financial Year 2019, compared to approximately HK$0.2 million for the Financial Year 2018[30]. - Impairment losses of non-financial assets amounting to approximately HK$6.0 million were recognized in profit or loss for the Financial Year 2019[30]. Market Outlook - The Group's management is optimistic about the prospects of the construction market and aims to expand operational scale to maximize returns to shareholders[14]. - The anticipated annual capital works expenditure by the Hong Kong Government is expected to reach HK$100 billion on average in the next few years, which may benefit the construction industry[23]. - The Directors remain cautiously optimistic about the construction industry in Hong Kong and Macau, expecting growth in private and public sector construction projects in the coming years[23]. - The construction industry in Hong Kong and Macau is facing a labor shortage, which is pushing up daily wages in the concrete demolition industry[45]. Operational Costs and Expenses - Administrative and other operating expenses increased by approximately HK$2.5 million (8.8%) to approximately HK$30.9 million for the Financial Year 2019, compared to HK$28.4 million for the Financial Year 2018[30]. - The prolonged need for maintaining the required site workforce and equipment due to project delays contributed to increased costs in 2019[25]. - Employee costs, including Directors' emoluments, were approximately HK$49.0 million for the Financial Year 2019, compared to HK$39.8 million for the Financial Year 2018, reflecting a significant increase[56]. Financial Position - As at 31 December 2019, the Group's current ratio was approximately 3.9, down from approximately 7.4 as at 31 December 2018[30]. - The Group had total assets of approximately HK$137.3 million, financed by total liabilities of approximately HK$34.2 million and shareholders' equity of approximately HK$103.1 million[30]. - As at 31 December 2019, the Group had cash and bank balances of approximately HK$17.9 million, down from approximately HK$26.5 million as at 31 December 2018[30]. - The gearing ratio as at 31 December 2019 was approximately 14.6%, compared to nil as at 31 December 2018[30]. - Capital expenditure during the Financial Year 2019 was approximately HK$16.7 million, compared to HK$6.8 million for the Financial Year 2018[30]. Employee and Management - The Group had over 160 full-time employees as of December 31, 2019, an increase from 109 full-time employees as of December 31, 2018[56]. - The Group has been operating in the concrete demolition industry in Hong Kong since 1985 and in Macau since 2006, establishing a strong market presence[21]. - The Group's services are primarily required in public and private sector construction projects, indicating a diverse customer base[22]. - The group has a strong management team with extensive industry experience, enhancing its strategic planning and operational efficiency[98][99][101][113][115]. Corporate Governance - The Company complied with the corporate governance code during the Financial Year 2019, except for deviations regarding the roles of chairman and chief executive officer[80]. - The Company has established an audit committee to oversee financial reporting and internal control systems[76]. - The Company has made annual declarations from covenantors regarding compliance with the non-competition deed[85]. - The Board consists of six Directors, including two executive Directors, one non-executive Director, and three independent non-executive Directors, ensuring a strong independent element[152]. - The Board is responsible for formulating the Group's overall strategies, setting management targets, and supervising management performance[147]. - The company has a balanced composition of Directors with appropriate skills and experience for its business operations[155]. - The Board held three meetings and one annual general meeting during the Financial Year 2019, with all Directors attending all meetings[174]. Audit and Compliance - The audit committee reviewed the consolidated financial statements for the Financial Year 2019 and found them compliant with applicable accounting standards[77]. - The Audit Committee confirmed that the financial report complies with all applicable standards and regulations[188]. - The Audit Committee consists of three independent non-executive directors, with Mr. Chow Chun To serving as the chairman[191]. - The Audit Committee has properly discharged its duties and responsibilities during the Financial Year 2019[189]. Dividends and Shareholder Relations - The Company did not recommend payment of final dividends to shareholders for the Financial Year 2019[91]. - The board does not recommend the payment of a final dividend for the fiscal year 2019[96].

Financial Performance - For the six months ended June 30, 2019, revenue amounted to approximately HK$50.4 million, representing a decrease of approximately 42.6% from HK$87.8 million in the corresponding period of 2018[10]. - The net loss for the period was approximately HK$4.3 million, a decline of approximately 141.7% compared to a net profit of approximately HK$10.3 million in the same period last year[10]. - Basic and diluted loss per share was approximately HK$0.64 cents, compared to earnings per share of approximately HK$1.53 cents in 2018[10]. - Gross profit for the period was reported at HK$11.7 million, down from HK$27.1 million in the prior year[14]. - The total comprehensive loss for the period was HK$4.3 million, reflecting the overall financial performance decline[11]. - The Group's financial position indicates a significant downturn in profitability and revenue generation capabilities compared to the previous year[13]. - Revenue from concrete demolition services for the six months ended June 30, 2019, was HK$50,435,000, compared to HK$87,793,000 for the same period in 2018, indicating a decline[68]. - The company reported a loss of HK$4,314,000 for the six months ended June 30, 2019, compared to a profit of HK$10,289,000 for the same period in 2018[28]. - The Group's gross profit decreased from approximately HK$27.1 million for the six months ended 30 June 2018 to approximately HK$11.7 million for the Reporting Period, with a gross profit margin decline from approximately 30.9% to approximately 23.2%[103]. - Administrative expenses for the Reporting Period remained the same at approximately HK$14.9 million, while net profit decreased by approximately HK$14.6 million to a net loss of approximately HK$4.3 million, representing a decrease of approximately 141.7%[103]. Dividends and Shareholder Returns - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2019, consistent with the previous year[10]. - The company does not recommend the payment of dividends for the six months ended June 30, 2019, consistent with no dividends declared in 2018[83]. - The Company did not recommend payment of interim dividends to shareholders for the Reporting Period[139]. Assets and Liabilities - Total assets as of June 30, 2019, amounted to HK$150,528,000, an increase from HK$147,688,000 as of December 31, 2018[18]. - Total equity decreased to HK$123,450,000 as of June 30, 2019, from HK$127,764,000 as of December 31, 2018, reflecting a decline of approximately 3%[18]. - Net current assets were reported at HK$111,175,000, down from HK$114,404,000, indicating a decrease of about 2%[18]. - Non-current liabilities increased to HK$8,993,000 as of June 30, 2019, compared to HK$2,054,000 as of December 31, 2018, showing a significant rise[17]. - Current liabilities totaled HK$18,085,000, slightly up from HK$17,870,000, representing an increase of approximately 1%[18]. - The total liabilities rose to HK$27,078,000 as of June 30, 2019, compared to HK$19,924,000 as of December 31, 2018, marking an increase of approximately 36%[18]. - Trade receivables as of June 30, 2019, amounted to HK$52,167,000, down from HK$61,396,000 at December 31, 2018, reflecting a decrease of approximately 15%[87]. - The allowance for credit losses on trade receivables increased to HK$885,000 as of June 30, 2019, from HK$659,000 at December 31, 2018[87]. Operational Insights - The management is focused on strategies to improve operational efficiency and explore new market opportunities to recover from the current financial challenges[13]. - The company is primarily engaged in providing concrete demolition services in Hong Kong and Macau, mainly as a subcontractor[36]. - The Group aims to strengthen its position as a concrete demolition service provider, leveraging its experienced management team and market reputation[99]. - The Group's services are primarily required in public and private sector construction projects, including redevelopment and infrastructure works[98]. Accounting Policies and Financial Reporting - The unaudited condensed consolidated financial statements for the six months ended 30 June 2019 have been prepared in accordance with HKAS 34 and applicable disclosure requirements[37]. - The Group's significant accounting policies remain consistent with those described in the Annual Financial Statements, with the adoption of new and revised HKFRSs having no material impact[39]. - The Group applied HKFRS 16 for the first time, which superseded HKAS 17, affecting the accounting for leases[42]. - The Group recognizes right-of-use assets at the commencement date of the lease, measured at cost less accumulated depreciation and impairment losses[44]. - The Group's accounting policy changes are in accordance with HKFRS 16, impacting the financial statements significantly[52]. - The Group's comparative information has not been restated due to the application of HKFRS 16[53]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements and confirmed compliance with applicable accounting standards and adequate disclosures[140]. Employee and Operational Costs - The Group's employee costs, including Directors' emoluments, were approximately HK$24.3 million for the Reporting Period, compared to HK$19.4 million for the same period in 2018, representing an increase of about 25%[114]. - The Group had over 106 full-time employees as of June 30, 2019, a slight decrease from 109 employees at the end of 2018[114]. Capital Structure and Shareholding - As of June 30, 2019, the issued share capital of the Group was HK$6,720,000, with 672,000,000 ordinary shares at HK$0.01 each[111]. - Directors Mr. Cheung Shek On and Mr. Chan Yuk Sing each held 189,000,000 shares, representing 28.125% of the total shareholding[123]. - As of June 30, 2019, Sino Continent and Supreme Voyage each hold 189,000,000 ordinary shares, representing 28.125% of the company's issued share capital[129]. - Applewood Developments Limited holds 126,000,000 ordinary shares, accounting for 18.75% of the company's issued share capital[129]. - The capital structure of the Group remained unchanged during the Reporting Period, consisting solely of ordinary shares[111]. Future Outlook - Future capital works expenditure in Hong Kong is expected to rise to over HK$100 billion in the coming years, driven by infrastructure investments[99].

Financial Performance - The Group experienced a turnover decrease of approximately 20.8% for the Financial Year 2018 compared to the Financial Year 2017, primarily due to the completion of several large-scale jobs[10] - Profits attributable to owners of the Company decreased by approximately HK$4.8 million from approximately HK$25.0 million in Financial Year 2017 to approximately HK$20.2 million in Financial Year 2018[10] - Non-recurring expenses of approximately HK$1.9 million were incurred due to the Transfer of Listing during Financial Year 2018[10] - Excluding non-recurring expenses, profits attributable to owners of the Company would be approximately HK$22.1 million for Financial Year 2018[10] - The Group's revenue for the Financial Year 2018 was approximately HK$147.4 million, representing a decrease of approximately 20.8% from HK$186.2 million in Financial Year 2017[17] - The gross profit decreased from approximately HK$55.5 million in Financial Year 2017 to approximately HK$51.7 million in Financial Year 2018, while the gross profit margin increased from approximately 29.8% to approximately 35.1%[22] - Net profit decreased by HK$4.8 million to approximately HK$20.2 million in Financial Year 2018, a decrease of approximately 19.2% compared to HK$25.0 million in Financial Year 2017[22] - Capital expenditure during Financial Year 2018 was approximately HK$6.8 million, down from HK$9.6 million in Financial Year 2017[22] Listing and Strategic Focus - The Company transferred its listing from GEM to the Main Board of the Stock Exchange on June 12, 2018, which is expected to enhance competitive strengths and future growth[10] - The Group's strategic focus includes enhancing financing flexibility and business development post-listing transfer[10] - The management team is optimistic about the prospects of the construction market and aims to expand operational scale[10] - The Group aims to strengthen its position as an established concrete demolition service provider due to anticipated growth in private and public sector construction projects[16] Labor and Operational Challenges - The construction industry in Hong Kong and Macau is facing a labor shortage, which has been driving up daily wages for workers in the concrete demolition sector[27] - The Group's financial performance may be adversely affected if it fails to recruit or retain sufficient workers due to local labor supply shortages[28] - The Group has not experienced significant labor disputes or difficulties in recruiting skilled personnel during the Financial Year 2018[31] - The Group's operations are significantly influenced by the availability of construction and civil engineering projects in Hong Kong and Macau, which are affected by economic conditions and government policies[25] Corporate Governance - The Company has complied with the Corporate Governance Code during the Financial Year 2018, with a noted deviation regarding the roles of chairman and chief executive being held by the same individual[47] - The Board believes there are adequate safeguards in place to ensure the balance of power and authority within the Company[47] - The Company has established various board committees to delegate responsibilities[97] - The Board is responsible for formulating the Group's overall strategies and supervising management performance[97] - The Company is committed to upholding good corporate governance standards for the best interest of shareholders[95] Risk Management - The Board is responsible for establishing and maintaining effective risk management and internal control systems to safeguard shareholders' interests and company assets[156] - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[169] - Each division is responsible for identifying and assessing principal risks quarterly and establishing mitigation plans[164] - An external consultant, CT Partners Consultants Limited, conducted a review of the internal control system during the financial year 2018, with no significant areas of concern identified[168] Management and Directors - The management team includes professionals with extensive industry experience, which is crucial for navigating market challenges[76][84][88] - The company has independent non-executive directors with diverse backgrounds in finance, law enforcement, and construction management, enhancing its governance structure[77][78][84] - The financial controller, Mr. Chen, is responsible for financial reporting and planning, indicating a structured approach to financial management[87] - The Board consists of six Directors, including two executive Directors, one non-executive Director, and three Independent Non-Executive Directors (INEDs) as of the report date[102] Shareholder Communication - The Company has established multiple communication channels with shareholders, including annual general meetings, annual reports, and quarterly reports available on its website[196] - The Board aims to balance shareholder interests with prudent capital management through a sustainable dividend policy, considering actual and expected financial performance[199]