Revenue and Profit Performance - Revenue for the six months ended June 30, 2024, increased by 10.9% to approximately HK$83.9 million from HK$75.7 million in the same period of 2023[22]. - Profit for the period fell from approximately HK$9.1 million to approximately HK$4.5 million, reflecting a significant decrease in net profit[18][22]. - The Group's revenue for the period was approximately HK$83.9 million, representing an increase of HK$8.2 million or 10.9% compared to approximately HK$75.7 million in the corresponding period of 2023[27]. - The net profit for the period was approximately HK$4.5 million, down from approximately HK$9.1 million in the corresponding period of 2023[34]. - Revenue for the six months ended June 30, 2024, was HK$83,932,000, representing an increase of 10.9% compared to HK$75,678,000 for the same period in 2023[74]. - Profit for the period was HK$4,478,000, down 50.7% compared to HK$9,094,000 for the same period in 2023[102]. Gross Profit and Margins - Gross profit decreased from approximately HK$24.5 million to approximately HK$20.9 million, resulting in a gross profit margin decline from 32.4% to 24.9%[18][22]. - The decrease in gross profit and net profit was primarily due to reduced profit margins in the BMU systems installation and increased expenses related to the Green New Energy Business[22]. - The gross profit decreased to HK$20,872,000, down 15.4% from HK$24,539,000 year-on-year[74]. Business Segments and Operations - The Green New Energy Business generated approximately HK$6.4 million in revenue during the first half of 2024, indicating progress in electricity sales in Guangdong and Shandong Provinces[23]. - The Group's BMU Systems Business faced a decline in the number and profit margin of variation orders received during the period[22]. - The Group's revenue from external customers in Hong Kong was HK$76,196,000 for the six months ended June 30, 2024, up 18.1% from HK$64,529,000 in 2023[100]. - Revenue from the Green New Energy Business was HK$6,359,000 for the six months ended June 30, 2024, compared to HK$102,000 in 2023, indicating a significant increase[102]. Expenses and Financial Management - Administrative expenses increased by approximately 15.7% to approximately HK$12.7 million, compared to approximately HK$11.0 million for the corresponding period in 2023[31]. - The Group's financial performance reflects challenges in maintaining profit margins while expanding into new energy sectors[22]. - The Group's finance costs before income tax were HK$6,323,000 for the six months ended June 30, 2024, compared to HK$11,952,000 in 2023, a decrease of 47.3%[102]. - Total expenses for the six months ended June 30, 2024, amounted to HK$75,804,000, up from HK$62,151,000 in 2023, indicating a significant increase in operational costs[105]. Cash Flow and Liquidity - Cash generated from operations for the six months ended June 30, 2024, was HK$262,000, compared to a cash used in operations of HK$17,825,000 for the same period in 2023[89]. - The company’s cash flow from operating activities showed a significant turnaround, moving from a negative cash flow to a positive cash flow in 2024[89]. - Cash and cash equivalents at the end of the period increased to HK$48,500,000, up from HK$14,300,000 at the end of June 2023[89]. - The Group maintained a healthy liquidity position throughout the period, with surplus cash being invested appropriately[42]. Share Capital and Corporate Governance - As of June 30, 2024, the company had a total of 624,000,000 shares issued[55]. - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[49]. - The company has complied with all applicable code provisions as set out in the Corporate Governance Code[51]. - The company is committed to high standards of corporate governance to enhance corporate value and accountability[51]. Employee and Management Compensation - The Group had a total of 77 full-time employees as of June 30, 2024, an increase from 66 employees as of December 31, 2023[64]. - Wages, salaries, and allowances for key management increased to HK$4,529,000 for the six months ended June 30, 2024, compared to HK$3,643,000 in the same period of 2023, reflecting a growth of approximately 24%[147]. - The remuneration of employees, including Directors, is generally structured by reference to market terms and individual merits[64]. Borrowings and Financial Position - The Group's total borrowings increased to approximately HK$61.1 million as of June 30, 2024, compared to approximately HK$59.7 million as of December 31, 2023[40]. - The Group's gearing ratio rose to approximately 59.5% as of June 30, 2024, up from 58.7% as of December 31, 2023, primarily due to the increase in total borrowings[41]. - Current liabilities increased significantly to HK$96,771,000 from HK$41,991,000, primarily due to a rise in borrowings from HK$3,413,000 to HK$61,124,000[80]. Future Outlook and Strategic Initiatives - The management highlighted the importance of achieving milestones in the Green New Energy Business as a key area of focus moving forward[23]. - The Group remains cautiously optimistic about the long-term prospects of the Hong Kong construction industry despite current market challenges[26]. - The company plans to continue focusing on market expansion and new product development to drive future growth[85].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 83,932,000, representing an increase of 10.0% compared to HKD 75,678,000 for the same period in 2023[1][2] - Gross profit for the same period was HKD 20,872,000, down 15.4% from HKD 24,539,000, resulting in a gross margin of 24.9%, compared to 32.4% in 2023[1][2] - Profit for the period decreased to HKD 4,478,000, a decline of 50.7% from HKD 9,094,000 in the previous year[1][2] - Operating profit was HKD 7,870,000, down 41.0% from HKD 13,343,000 in the same period last year[2] - The company reported a basic and diluted earnings per share of HKD 0.74, down from HKD 1.58 in the previous year[2] - The company's profit attributable to owners decreased from approximately HKD 9,855,000 (for the six months ended June 30, 2023) to HKD 4,624,000 (for the six months ended June 30, 2024), representing a decline of 53%[18] - Basic earnings per share dropped from HKD 1.58 to HKD 0.74, a decrease of 53%[18] - Net profit fell from approximately HKD 9.1 million to approximately HKD 4.5 million, a decrease of 50.5%[26] Assets and Liabilities - The total assets as of June 30, 2024, were HKD 209,169,000, slightly up from HKD 205,916,000 as of December 31, 2023[4][5] - Current liabilities increased to HKD 96,771,000 from HKD 41,991,000 at the end of 2023, indicating a significant rise in short-term obligations[5] - The total liabilities decreased to HKD 99,586,000 as of June 30, 2024, from HKD 100,154,000 as of December 31, 2023[12] - As of June 30, 2024, the group's total borrowings were approximately HKD 61.1 million, an increase from HKD 59.7 million as of December 31, 2023[37] - The group's debt-to-equity ratio rose to approximately 59.5% as of June 30, 2024, compared to 58.7% on December 31, 2023, due to the slight increase in total borrowings[38] Revenue Sources - Revenue from the Hong Kong market increased to HKD 76,196,000, up 18.1% from HKD 64,529,000 in the previous year[9] - The company achieved approximately HKD 6.4 million in revenue from its green energy business in the first half of 2024[26] - The group’s revenue for the period was approximately HKD 83.9 million, representing an increase of HKD 8.2 million or 10.9% compared to HKD 75.7 million in the same period of 2023[29] Expenses - The company incurred total expenses of HKD 75,804,000 for the six months ended June 30, 2024, compared to HKD 62,151,000 in the previous year, marking an increase of 21.9%[14] - Administrative expenses increased by approximately 15.7% to about HKD 12.7 million, up from HKD 11.0 million in the same period of 2023, mainly due to increased employee benefits related to the development of green renewable energy business[33] - Depreciation expenses for the six months ended June 30, 2024, were HKD 861,000, compared to HKD 756,000 for the same period in 2023, representing an increase of 13.9%[11] Strategic Focus - The company continues to focus on the design and construction solutions for permanent mooring systems and the development of green energy solutions[6] - The company plans to continue focusing on the development and sales of green energy systems, indicating a strategic emphasis on sustainable energy solutions moving forward[11] - The company plans to expand its electricity sales business into other provinces with mature electricity spot markets, such as Shanxi[27] - The group established a new subsidiary focused on the development and application of artificial intelligence technology in the renewable energy sector to diversify its business and seek more investment opportunities[28] Acquisitions and Investments - The group completed the acquisition of a New Zealand company specializing in rooftop solar equipment installation in July 2024, enhancing its capabilities in the renewable energy sector[28] - The company completed the acquisition of a 51.22% stake in Future Energy Auckland Ltd. for NZD 2,100,000, enhancing its presence in the sustainable energy sector[47] Employee and Performance Metrics - The group has 77 full-time employees as of June 30, 2024, representing a 16.7% increase from 66 employees as of December 31, 2023[45] - The group’s performance guarantees amounted to HKD 22,741,000, an increase of 48.3% from HKD 15,326,000 as of December 31, 2023[43] - The group has provided performance guarantee insurance contracts worth HKD 8,484,000 for its green energy business, significantly up from HKD 2,203,000 in the previous period[43] Dividends - The board did not recommend any interim dividend for the period ending June 30, 2023, consistent with the previous period[49]

ESG Governance and Management - The company has established a robust environmental, social, and governance (ESG) governance framework to ensure sustainable development[1]. - The board of directors is fully responsible for overseeing the company's ESG matters and has prioritized management strategies and objectives related to ESG[1]. - An ESG committee and working group have been formed to assist in the supervision and management of ESG initiatives[4]. - The company actively manages ESG issues and promotes sustainable development in daily operations[7]. - Regular reviews of ESG progress and performance are conducted to ensure effective risk management and internal control systems[1]. - The importance assessment process has been conducted to identify significant ESG issues relevant to the organization and its stakeholders[13]. - The company aims to continuously monitor, review, and improve its ESG matters to align with stakeholder efforts[8]. - The company identified 5 high-importance environmental, social, and governance (ESG) issues during the reporting year[22]. - Stakeholder engagement included an online survey assessing the relevance of 17 key ESG issues to the company's operations[17]. - The importance assessment results guide the development of the ESG reporting framework and provide valuable insights for strategic decision-making[17]. - The company is committed to continuous improvement in its ESG management practices through collaboration with stakeholders[24]. Compliance and Risk Management - The company emphasizes compliance management as crucial for smooth daily operations and adheres to the latest ESG-related policies and regulations[26]. - The company is focused on compliance with regulations and preventing any improper practices in its operations[8]. - The company emphasizes compliance with significant laws and regulations affecting its operations, including environmental and social aspects[53]. - The company ensures full compliance with relevant laws and regulations in its operations[53]. - The company has established strict internal control procedures to maintain effective risk management and compliance, encouraging employees to report any potential non-compliance issues[67]. - Regular audits, on-site assessments, and performance evaluations are conducted to maintain effective compliance measures[59]. - The company has implemented a regulatory compliance and licensing management system to ensure adherence to all relevant laws and regulatory standards[57]. - The company has a zero-tolerance policy towards corruption, including bribery and kickbacks[98]. Financial Performance - Revenue for the year ended December 31, 2023, was HKD 192,402 thousand, an increase of 26.4% from HKD 152,215 thousand in 2022[130]. - Gross profit for 2023 was HKD 52,788 thousand, up 40.3% from HKD 37,590 thousand in 2022[130]. - Operating profit increased to HKD 27,137 thousand, representing a 37.0% rise from HKD 19,770 thousand in the previous year[130]. - Profit before tax was HKD 24,366 thousand, a 39.9% increase compared to HKD 17,412 thousand in 2022[130]. - Net profit from continuing operations for 2023 was HKD 18,631 thousand, compared to HKD 12,770 thousand in 2022, marking a 46.5% increase[130]. - Basic and diluted earnings per share from continuing operations were HKD 3.21, up from HKD 2.08 in 2022[130]. - Total comprehensive income for the year was HKD 18,643 thousand, a significant recovery from a loss of HKD 79,785 thousand in 2022[133]. - The company reported a loss from discontinued operations of HKD 92,553 thousand in 2022, which was not present in 2023[130]. - Other income decreased to HKD 3 thousand from HKD 970 thousand in the previous year, indicating a decline of 99.7%[130]. - Administrative expenses rose to HKD 24,267 thousand, an increase of 37.0% from HKD 17,702 thousand in 2022[130]. Employee Welfare and Management - The company has established a framework for managing employee welfare and occupational health and safety[50]. - The company emphasizes a "people-oriented" principle to create a supportive workplace, aiming to retain talent for long-term success[155]. - The company has implemented strict measures to ensure employees are free from forced labor and has not reported any serious violations of child labor or forced labor regulations during the reporting year[171]. - The standard workweek is five and a half days, with overtime compensated according to local laws and regulations[172]. - The company promotes employee social life and well-being through team-building activities and designated relaxation areas[173]. - Future plans include continuing to view talent as a vital asset and supporting the well-being and happiness of existing employees[174]. - The company has a total of 66 employees, with 71% being male and 29% female[156]. - Among the employees, 62% are full-time, while 18% are in middle management and 15% in senior management[164]. - Employee turnover rate is 42.42%, with 28 total employees leaving[177]. - Turnover rate for males is 40.43% and for females is 47.37%[177]. - In China, the turnover rate is 111.11%, indicating a significant loss of employees[177]. - 20 employees participated in training programs, with 38.30% being male and 10.53% female[179]. - Average training hours per employee is 1 hour across all categories[179]. - The company has zero work-related fatalities and reported 4 work injuries during the year[179]. Environmental Initiatives - The company aims to integrate environmental protection measures into its operations and business strategies[182]. - The company launched the "SUNEWTRAL" brand in major markets, focusing on clean energy solutions[184]. - The company is committed to reducing its carbon footprint and managing environmental risks effectively[183]. - The company has eliminated emissions related to vehicle fuel usage since it no longer owns any vehicles following the liquidation of a subsidiary in 2022[57]. - The main source of greenhouse gas emissions comes from electricity consumption in office operations, with additional indirect emissions from waste disposal and business travel[186]. - The company promotes energy efficiency by reminding employees to turn off lights, air conditioning, and electronic devices after work[187]. - Initiatives for a paperless environment include uploading documents digitally and reusing printed paper to reduce physical copies[189]. - The company encourages the use of reusable containers for lunch and provides facilities for cleaning them, aiming to reduce waste[198]. - The company has no significant hazardous waste generation due to the nature of its business and will continue to monitor and manage any hazardous waste responsibly[191]. - The company is committed to reducing waste and fostering an environmentally friendly atmosphere through various measures[200]. Supply Chain Management - The company maintains partnerships with 41 suppliers and subcontractors, with over 70% located in Hong Kong[123]. - The company has implemented a comprehensive supply chain management system covering the entire process from supplier selection to performance evaluation[113]. - The company prioritizes environmentally responsible procurement, favoring suppliers with green certifications when acquiring fixed assets[119]. - The company has established a clear procedure for supplier selection, ensuring thorough assessments of reliability and reputation before any initial cooperation[114]. - The company is developing a vertically integrated supply chain management system to enhance competitiveness and meet diverse customer needs[114]. - The company adheres to high ethical standards in all business transactions, strictly prohibiting any form of bribery or illegal benefit exchange[112]. - The company regularly updates its approved subcontractor and supplier list, ensuring compliance with strict standards[118]. - The company actively encourages suppliers and subcontractors to uphold corporate social responsibility across various operational areas[119]. - The company aims to ensure that its supply chain control policies support sustainable growth and deliver exceptional value to stakeholders[112]. Corporate Governance and Ethics - The company has established a clear policy against receiving gifts or benefits beyond normal business hospitality[75]. - The board of directors achieved 100% participation in anti-corruption training during the reporting year, enhancing employee awareness of anti-corruption policies[75]. - There were no significant violations or legal cases related to corruption involving the company or its employees during the reporting year[74]. - The company emphasizes compliance with sales laws and regulations, ensuring responsible and technologically advanced services throughout the warranty period[71]. - The company has strict confidentiality arrangements with third-party agencies to protect customer and company-related information[70]. - The company is committed to providing appropriate training for employees to enhance the quality of work and services[63]. - The company has established policies and procedures to protect its intellectual property and ensure the originality of trademarks[65]. - The internal quality manual outlines commitments to deliver safe and reliable products and services that meet international quality standards and legal requirements[63]. - The company has not reported any significant violations of product liability laws during the reporting year, indicating strong compliance and operational integrity[63]. - The quality management system is subject to annual management reviews to ensure its ongoing applicability and effectiveness, aligning with the company's strategic direction[61].

Financial Performance - The company reported revenue of HKD 192,402,000 for the year ended December 31, 2023, an increase of 26.4% from HKD 152,215,000 in 2022[9]. - Gross profit for the year was HKD 52,788,000, representing a gross margin of 27.4%, up from 24.7% in the previous year[9]. - Operating profit increased to HKD 27,137,000, compared to HKD 19,770,000 in 2022, reflecting a growth of 37.5%[9]. - Profit from continuing operations was HKD 18,631,000, a significant recovery from a loss of HKD 79,783,000 in the prior year[9]. - Basic and diluted earnings per share from continuing operations were HKD 3.21, compared to HKD 2.08 in 2022[9]. - The company achieved a total comprehensive income of HKD 18,643,000 for the year, recovering from a loss of HKD 79,785,000 in the previous year[28]. - The group reported a profit attributable to owners of continuing operations of HKD 20,046,000 for the year ended December 31, 2023, compared to HKD 13,009,000 in 2022, representing a 54.5% increase[110]. - The basic earnings per share from continuing operations increased to HKD 3.21 in 2023 from HKD 2.08 in 2022, reflecting a growth of 54.3%[110]. - The net profit for the year ended December 31, 2023, was HKD 18,631 thousand, a recovery from a loss of HKD 79,783 thousand in 2022[81]. Assets and Liabilities - Non-current assets increased to HKD 2,824,000, compared to HKD 2,686,000 in 2022, indicating growth in asset base[31]. - Total liabilities rose to HKD 100,154,000 from HKD 75,582,000 in the previous year, reflecting increased borrowing[33]. - Total assets increased to HKD 205,916 million in 2023 from HKD 160,749 million in 2022, representing a growth of approximately 28%[46]. - The total equity attributable to owners of the company rose to HKD 104,742 million in 2023 from HKD 84,677 million in 2022, an increase of approximately 24%[66]. - Trade receivables and warranty receivables totaled HKD 49,267,000 as of December 31, 2023, up from HKD 28,847,000 in 2022, indicating a 71.0% increase[112]. - The company’s contract assets related to permanent floating crane construction contracts amounted to HKD 83,394,000 as of December 31, 2023, after accounting for a loss provision of HKD 963,000[95]. - The total contract liabilities related to the company’s contracts were HKD 3,731,000 as of December 31, 2023, which includes liabilities from green energy contracts[95]. - The group’s debt-to-equity ratio as of December 31, 2023, was approximately 58.7%, compared to 56.3% as of December 31, 2022[151]. Revenue Sources - Revenue from major customers contributing over 10% to total revenue reached HKD 105,483 million in 2023, up from HKD 82,373 million in 2022, indicating a growth of about 28%[55]. - Revenue from continuing operations in Hong Kong decreased to HKD 141,121 million in 2023 from HKD 145,165 million in 2022, a decline of approximately 3%[79]. - The company's construction revenue for the year ended December 31, 2023, was HKD 192,185 thousand, an increase of 27.5% from HKD 150,805 thousand in 2022[80]. - The group recorded a significant decrease in other income from approximately HKD 1.0 million to HKD 3,000, primarily due to the absence of government subsidies received in the previous year[142]. Expenses and Financial Management - The financial cost for the year was HKD 2,771,000, an increase from HKD 2,358,000 in 2022, indicating higher financing expenses[9]. - The group's income tax expense for continuing operations was HKD 5,735 million in 2023, compared to HKD 4,642 million in 2022, reflecting an increase of about 23%[60]. - The company reported a significant increase in administrative expenses, which rose to HKD 24,267 thousand in 2023 from HKD 17,702 thousand in 2022[83]. - The group’s net financial costs increased from approximately HKD 2.4 million for the year ended December 31, 2022, to approximately HKD 2.8 million for the current year, primarily due to increased borrowings[167]. - The group has adopted a prudent financial management strategy to maintain a healthy liquidity position throughout the year[151]. Business Strategy and Future Plans - The company plans to expand its green energy business, focusing on the development and sales of renewable energy generation and storage systems[14]. - The group plans to develop a power spot trading system and diversify its renewable energy business, indicating potential future financing needs to support operational expenditures[140]. - The company plans to closely monitor market conditions and adjust its business strategies to ensure sustainable development in the permanent floating crane business[122]. - The group plans to continue focusing on expanding its green energy business, which reported revenue of HKD 217 thousand in 2023[81]. Corporate Governance and Reporting - The group has confirmed assets and liabilities related to customer contracts, with total contract assets of HKD 83,394,000 and total contract liabilities of HKD 3,731,000 as of December 31, 2023[95]. - The audit committee, consisting of three independent non-executive directors, has reviewed the audited year-end performance and reached a consensus with the company's auditors[188]. - The annual report for the year will be sent to shareholders and published on the stock exchange and the company's website at an appropriate time[190].

Financial Performance - For the six months ended June 30, 2023, the company's revenue decreased by 2.7% to approximately HKD 75.7 million compared to HKD 77.8 million in the same period of 2022[21]. - Gross profit increased significantly from approximately HKD 15.2 million to approximately HKD 24.5 million, resulting in a gross margin improvement from 19.6% to 32.4%[24]. - The company reported a profit from continuing operations of approximately HKD 9.1 million, a substantial increase from a loss of approximately HKD 61.9 million in the same period of 2022[10]. - Revenue for the six months ended June 30, 2023, was HKD 75,678,000, a decrease of 2.9% from HKD 77,800,000 in the same period of 2022[77]. - Operating profit for the period was HKD 13,343,000, up 103.5% from HKD 6,562,000 in the prior year[77]. - Profit attributable to owners of the company was HKD 9,855,000, a turnaround from a loss of HKD 61,781,000 in the same period last year[77]. - Basic and diluted earnings per share from continuing operations was HKD 1.58, compared to HKD 0.46 in the previous year[77]. - The company reported a net loss of HKD 61,864,000 for the previous year, indicating a significant recovery in the current reporting period[79]. - The company reported a profit of 9,855 thousand HKD for the six months ended June 30, 2023, compared to a loss in the previous period, marking a turnaround in financial performance[118]. Cash and Liquidity - The company’s cash and cash equivalents were approximately HKD 29.1 million as of June 30, 2023, down from HKD 48.9 million as of December 31, 2022[11]. - The company’s cash and cash equivalents decreased to HKD 14,300,000 from HKD 31,203,000 as of December 31, 2022[81]. - The net cash used in operating activities for the six months ended June 30, 2023, was (19,099) thousand HKD, a significant improvement compared to (32,291) thousand HKD for the same period in 2022, indicating a reduction of about 41%[119]. - The company’s financing activities generated a net cash inflow of 1,047 thousand HKD for the six months ended June 30, 2023, compared to a much higher inflow of 28,319 thousand HKD in the same period of 2022[119]. - Cash and cash equivalents decreased by 17,085 thousand HKD during the six months ended June 30, 2023, compared to a decrease of 4,011 thousand HKD in the same period of 2022[119]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 172,519,000, an increase from HKD 160,749,000 as of December 31, 2022[81]. - As of June 30, 2023, the total liabilities amounted to HKD 76,334,000, compared to HKD 75,582,000 as of December 31, 2022, reflecting a slight increase[105]. - The total equity and liabilities combined reached HKD 172,519,000 as of June 30, 2023, up from HKD 160,749,000 at the end of 2022, indicating growth in the company's financial position[105]. - The company reported a non-current liability of HKD 2,202,000 as of June 30, 2023, a significant decrease from HKD 37,039,000 at the end of 2022, primarily due to the repayment of loans[105]. - The total liabilities decreased from 59,556 thousand HKD as of June 30, 2022, to 67,464 thousand HKD as of June 30, 2023, indicating a reduction in financial obligations[118]. - Total liabilities as of June 30, 2023, were HKD 76,334,000, slightly up from HKD 75,582,000 as of December 31, 2022, indicating a marginal increase of 1%[155]. Operational Developments - The company aims to actively seek more distribution partners to promote its quality energy storage products under the brand "SUNEWTRAL" in response to rising energy prices and the global push for renewable energy[22]. - The company has made significant investments in new technologies and product development, focusing on green energy solutions, although specific financial figures were not disclosed in the conference call[122]. - The company plans to expand its market presence and explore potential acquisitions to enhance its operational capabilities and revenue streams[122]. - The company continues to monitor market conditions and adjust its business strategies accordingly to ensure sustainable development in the permanent hoisting business[6]. Shareholder and Corporate Governance - The group maintains a high level of corporate governance to protect shareholder interests and enhance corporate value[39]. - The group confirmed compliance with the corporate governance code as per the listing rules[59]. - The company plans to seek shareholder approval to update the limit on share options to 10% of the total issued shares[71]. - The group has adopted a share option scheme and a share award scheme to reward eligible employees contributing to the business and development[66]. - The total number of shares related to the pre-IPO share option plan is 23,400,000 shares, representing about 3.75% of the issued shares as of the report date[67]. Expenses and Financial Risks - The group's administrative expenses increased by approximately 22.7% to about HKD 11.0 million, compared to HKD 9.0 million in the same period of 2022, primarily due to increased depreciation, legal and professional fees, and travel expenses related to the development of green energy business[48]. - The company has faced various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the annual financial statements[114]. - The company incurred depreciation expenses of HKD 756,000 for the six months ended June 30, 2023, compared to HKD 1,121,000 for the same period in 2022[115].

Financial Highlights [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2023, revenue slightly decreased, but gross profit and margin significantly improved, leading to a net profit of HK$9.1 million, reversing a prior-year loss due to discontinued operations 2023 Interim Financial Highlights (For the Six Months Ended June 30) | Metric | 2023 (Unaudited) (HKD Thousands) | 2022 (Unaudited, Restated) (HKD Thousands) | | :--- | :--- | :--- | | Revenue | 75,678 | 77,800 | | Gross Profit | 24,539 | 15,226 | | Gross Margin | 32.4% | 19.6% | | Profit from Continuing Operations | 9,094 | 2,787 | | Profit/(Loss) for the Period | 9,094 | (61,864) | - Basic earnings per share from continuing operations significantly increased to **1.58 HK cents** from **0.46 HK cents** in the prior year, while the prior year's basic loss per share was **9.90 HK cents** due to substantial losses from discontinued operations[9](index=9&type=chunk)[77](index=77&type=chunk) Condensed Interim Consolidated Financial Statements [Condensed Interim Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group reported revenue of HK$75.68 million, gross profit of HK$24.54 million, and a significant increase in operating profit to HK$13.34 million, achieving a net profit of HK$9.09 million, reversing a prior-year loss from discontinued operations Condensed Interim Consolidated Statement of Profit or Loss | Item | 2023 H1 (HKD Thousands) | 2022 H1 (HKD Thousands, Restated) | | :--- | :--- | :--- | | Revenue | 75,678 | 77,800 | | Gross Profit | 24,539 | 15,226 | | Operating Profit | 13,343 | 6,562 | | Profit Before Income Tax | 11,952 | 5,528 | | Profit from Continuing Operations | 9,094 | 2,787 | | Loss from Discontinued Operations | – | (64,651) | | **Profit/(Loss) for the Period** | **9,094** | **(61,864)** | [Condensed Interim Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, total assets increased to HK$172.5 million, total equity rose to HK$96.2 million due to current period profit, and total liabilities remained stable at approximately HK$76.3 million Statement of Financial Position Summary | Item | June 30, 2023 (HKD Thousands) | December 31, 2022 (HKD Thousands) | | :--- | :--- | :--- | | Total Assets | 172,519 | 160,749 | | Total Liabilities | 76,334 | 75,582 | | Total Equity | 96,185 | 85,167 | Notes to the Condensed Interim Consolidated Financial Information [General Information and Basis of Preparation](index=6&type=section&id=1%20General%20Information%20and%20Basis%20of%20Preparation) This financial information is prepared under HKAS 34, with the Group primarily engaged in permanent gondola and green new energy businesses, and the curtain wall engineering business terminated in 2022 - The Group's core businesses include the **Permanent Gondola Business**, providing design and build solutions for permanent gondolas, and the **Green New Energy Business**, related to new energy power generation and storage systems[19](index=19&type=chunk)[43](index=43&type=chunk)[23](index=23&type=chunk) - The **Curtain Wall Engineering Business** (Yick Mei Engineering) was terminated for the year ended December 31, 2022, and its financial data is classified as **discontinued operations** in the statements[21](index=21&type=chunk)[68](index=68&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3%20Revenue%20and%20Segment%20Information) For the period, continuing operations revenue was HK$75.68 million, primarily from the permanent gondola business, with Hong Kong being the main geographical revenue source at HK$64.53 million Revenue by Business Segment (Continuing Operations) | Business Segment | 2023 H1 (HKD Thousands) | 2022 H1 (HKD Thousands) | | :--- | :--- | :--- | | Permanent Gondola Business | 75,576 | 77,464 | | Green New Energy Business | 102 | 336 | | **Total** | **75,678** | **77,800** | Revenue by Geographical Location of Customers (Continuing Operations) | Region | 2023 H1 (HKD Thousands) | 2022 H1 (HKD Thousands) | | :--- | :--- | :--- | | Hong Kong | 64,529 | 76,060 | | Macau | 11,047 | 1,404 | | Malaysia | – | 336 | | Others | 102 | – | | **Total** | **75,678** | **77,800** | [Dividends](index=11&type=section&id=6%20Dividends) The Board does not recommend any interim dividend for the six months ended June 30, 2023, consistent with the prior year's policy - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[6](index=6&type=chunk)[76](index=76&type=chunk)[130](index=130&type=chunk) [Earnings/(Loss) Per Share](index=11&type=section&id=7%20Earnings%2F%28Loss%29%20Per%20Share) Basic earnings per share from continuing operations significantly increased to **1.58 HK cents**, with total basic EPS also **1.58 HK cents** due to no discontinued operations loss, compared to a **9.90 HK cents** loss last year, and no potential dilutive shares Basic Earnings/(Loss) Per Share | Item | 2023 H1 (HK Cents) | 2022 H1 (HK Cents) | | :--- | :--- | :--- | | Basic earnings per share from continuing operations | 1.58 | 0.46 | | Loss per share from discontinued operations | – | (10.36) | | **Basic Earnings/(Loss) Per Share** | **1.58** | **(9.90)** | - As of June 30, 2023, the company had no potential dilutive shares, thus diluted earnings per share were the same as basic earnings per share[78](index=78&type=chunk) Management Discussion and Analysis [Business Review](index=15&type=section&id=Business%20Review) The Group's core businesses are permanent gondola engineering and new energy systems; despite a slight revenue decrease, gross and net profits significantly grew due to increased change order profitability and the termination of the loss-making curtain wall engineering business in 2022 - Due to persistent losses and uncertain prospects, the sole shareholder of Yick Mei Engineering decided to terminate the business via creditors' voluntary winding-up, ceasing to be a subsidiary of the Company from December 9, 2022[61](index=61&type=chunk)[85](index=85&type=chunk) - Despite a slight revenue decrease, net profit from continuing operations increased from **HK$2.8 million** to **HK$9.1 million**, primarily due to improved profitability of engineering change orders and the absence of prior-year share-based payment expenses[110](index=110&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) This section analyzes the Group's financial performance, noting a slight revenue decrease, a significant gross margin increase, higher administrative expenses due to new energy business, increased finance costs, and a net profit of HK$9.1 million, reversing a prior-year loss [Revenue](index=16&type=section&id=Revenue) Revenue for the period was approximately **HK$75.7 million**, a slight 2.7% decrease year-on-year, primarily due to fewer permanent gondola installations and intense pricing competition amid a sluggish Hong Kong economy - Revenue slightly decreased by **2.7%** to **HK$75.7 million** from **HK$77.8 million** in the prior period[1](index=1&type=chunk)[110](index=110&type=chunk) [Gross Profit and Gross Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit significantly increased from **HK$15.2 million** to **HK$24.5 million**, with gross margin rising from **19.6%** to **32.4%**, primarily driven by higher volume and profitability of change orders in the permanent gondola business - Gross profit significantly increased from approximately **HK$15.2 million** to **HK$24.5 million**, and gross margin improved from **19.6%** to **32.4%**[113](index=113&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses increased by **22.7%** year-on-year to **HK$11 million**, primarily due to higher depreciation, legal and professional fees, and travel expenses from developing the green new energy business - Administrative expenses increased by **22.7%** to approximately **HK$11 million** from approximately **HK$9 million** in the prior period[114](index=114&type=chunk) [Net Profit/(Loss) for the Period](index=18&type=section&id=Net%20Profit%2F%28Loss%29%20for%20the%20Period) The Group recorded a net profit of approximately **HK$9.1 million** for the period, reversing a net loss of approximately **HK$61.9 million** in the prior period, which primarily included a **HK$64.7 million** loss from discontinued operations, now absent - The Group recorded a net profit of approximately **HK$9.1 million** for the period, compared to a net loss of approximately **HK$61.9 million** in the 2022 prior period, primarily due to discontinued operations[94](index=94&type=chunk) [Outlook](index=16&type=section&id=Outlook) Given the uncertain outlook for Hong Kong's property and construction sectors, the Group will adjust its permanent gondola business strategy while actively developing its green new energy business, promoting its 'SUNEWTRAL' brand, and potentially seeking additional funding - The outlook for Hong Kong's property and construction sectors remains uncertain, and the Group will continue to closely monitor market conditions for the sustainable development of its permanent gondola business[111](index=111&type=chunk) - The Group aims to capitalize on renewable energy opportunities by actively developing its green new energy business, promoting its proprietary brand 'SUNEWTRAL', and potentially raising additional capital for this endeavor[87](index=87&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=18&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains prudent financial management; as of June 30, 2023, total borrowings were approximately **HK$46.3 million**, with the gearing ratio decreasing to **51.1%** due to increased equity, and operating funds supported by extended loan agreements with major shareholders - The gearing ratio decreased from **56.3%** at the end of 2022 to approximately **51.1%** as of June 30, 2023[140](index=140&type=chunk) - As of June 30, 2023, the Group's total borrowings were approximately **HK$46.3 million**, all denominated in Hong Kong Dollars[120](index=120&type=chunk) - The Group entered into loan agreements with its major shareholder Treasure Ship and Director Mr. Kwan Kam Tim, extending the repayment date to June 30, 2024[96](index=96&type=chunk)[119](index=119&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) The Group faces a customer claim of approximately **HK$2.86 million**, which directors believe has reasonable defense, and provided performance guarantees totaling approximately **HK$14.03 million** for 24 construction contracts - The Group faces an amended claim from a customer for approximately **HK$2.86 million**, which the directors believe has a reasonable basis for defense[5](index=5&type=chunk) - As of June 30, 2023, the Group had outstanding performance guarantees valued at **HK$14.03 million**[126](index=126&type=chunk)[101](index=101&type=chunk)

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 152.215 million, a decrease of 6.4% from HKD 163.079 million in 2021[22] - Gross profit for the year was HKD 37.590 million, down from HKD 40.065 million, reflecting a gross margin of approximately 24.7%[22] - Operating profit decreased to HKD 19.770 million from HKD 24.610 million, representing a decline of 19.5% year-over-year[22] - The net loss for the year was HKD 79.783 million, an improvement from a net loss of HKD 187.463 million in 2021[24] - Basic and diluted loss per share for the year was HKD 12.75, compared to HKD 33.58 in the previous year, showing a decrease in loss per share[22] - The company reported a total comprehensive loss of HKD (79,785,000) for the year, which includes a net loss of HKD (79,544,000)[29] - Loss from discontinued operations was HKD 92.553 million, compared to a loss of HKD 206.570 million in the previous year, indicating a significant reduction in losses[22] Administrative and Financial Costs - Administrative expenses rose to HKD 17.702 million from HKD 15.212 million, reflecting a 16.4% increase year-over-year[22] - Financial costs increased significantly to HKD 2.402 million from HKD 0.464 million, highlighting rising financing expenses[22] - The group's total borrowings were approximately HKD 45.6 million as of December 31, 2022, compared to HKD 49.3 million in 2021, with an interest rate of 5.50%[121] - The group's tax expenses decreased slightly from HKD 5.1 million in the previous year to HKD 4.6 million, primarily due to a reduction in pre-tax profits from continuing operations[117] Business Strategy and Operations - The company aims to enhance its market presence and explore new product development strategies in the upcoming fiscal year[22] - The company has terminated its facade engineering business as of December 31, 2022, and is focusing on new energy generation and storage systems[57] - The group anticipates the need for additional fundraising to support capital expenditures in its renewable energy business, which includes promoting quality energy storage products under its own brand "SUNEWTRAL" and exploring suitable areas for solar distributed power stations[110] - The group has terminated its facade engineering business due to continuous losses and an unclear outlook for the construction industry in Hong Kong, reallocating resources to existing businesses such as permanent suspended working and renewable energy[108] Governance and Board Structure - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independent director appointments[161] - The board has established three committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific matters and ensure effective governance[159] - The company has appointed independent non-executive directors with extensive experience in various sectors, enhancing governance and oversight[79][81][84] - The board retains the right to decide on all major matters, including policies, strategies, budgets, and significant transactions[199] Risk Management and Compliance - Key risks include reliance on successful bidding for construction projects and the expertise of management personnel[98] - The company is evaluating the potential impacts of new accounting standards and amendments on its financial reporting[61] - The group assesses expected credit losses for debt instruments measured at amortized cost based on forward-looking criteria[77] Employee and Director Development - The group maintains a gender diversity rate of 29.31% among its employees as of December 31, 2022, and continues to promote gender diversity in its workforce[166] - Directors are encouraged to pursue continuous professional development to enhance their knowledge and skills[193] - All newly appointed directors receive necessary onboarding training to understand the company's operations and their responsibilities under relevant regulations[192] Financial Position and Equity - As of December 31, 2022, the total equity stood at HKD 85,167,000, with accumulated losses amounting to HKD (77,319,000)[29] - The accumulated losses increased from HKD (19,748,000) at the beginning of the year to HKD (77,319,000) by year-end[29] - The group's asset-to-equity ratio was approximately 56.3% as of December 31, 2022, compared to 34.9% in 2021, indicating a significant increase in leverage[144] Revenue Breakdown - Revenue from the permanent scaffolding business was HKD 150.8 million for the year ended December 31, 2022, compared to HKD 163.1 million in 2021, reflecting a decrease of approximately 7.5%[137] - The green energy business generated revenue of HKD 1.4 million in its first year of operation, achieving a gross profit margin of approximately 14.0%[137]

Financial Performance - The company's revenue for the six months ended June 30, 2022, was approximately HKD 107.8 million, a significant decrease of 55.8% compared to HKD 244.1 million in the same period of 2021[14]. - The gross loss for the period was HKD 42.7 million, compared to a gross loss of HKD 48.9 million in the prior year[14]. - The net loss for the period was approximately HKD 61.9 million, an improvement from a net loss of HKD 73.1 million in the same period of 2021[14]. - The facade engineering business generated revenue of HKD 30.0 million, down from HKD 182.8 million in the previous year, while the permanent scaffold business increased revenue to HKD 77.5 million from HKD 61.3 million[23]. - The decline in revenue was primarily attributed to delays in construction plans due to the resurgence of COVID-19 in early 2022, impacting the facade engineering segment[21]. - The group's gross loss from the facade engineering business was approximately HKD 58.0 million, compared to a gross loss of approximately HKD 67.8 million in the same period of 2021, indicating an improvement[26]. - The permanent lifting boat business recorded a gross profit of approximately HKD 15.1 million, down from approximately HKD 18.8 million in the same period of 2021[26]. - The green energy business achieved a gross profit margin of approximately 29.5% during the period[27]. - The total comprehensive loss for the six months ended June 30, 2022, was HKD 61,872,000, compared to a loss of HKD 73,073,000 for the same period in 2021, representing a decrease of approximately 15.1%[90]. - The loss before tax for the period was HKD 59,123 thousand, compared to a loss of HKD 63,433 thousand in the previous year, indicating an improvement of about 7%[121]. Operational Costs and Expenses - The company incurred additional subcontracting and material costs due to quality issues with new suppliers, leading to significant losses on certain projects[16]. - The company recorded share-based payment expenses of approximately HKD 10.0 million during the period due to the cancellation of pre-IPO share options[16]. - Administrative expenses rose by approximately 9.2% to about HKD 16.0 million, compared to approximately HKD 14.7 million in the same period of 2021[32]. - The company's total expenses for the period were HKD 166,556 thousand, compared to HKD 307,743 thousand in the same period of 2021, indicating a decrease of about 46%[125]. - The company incurred construction costs of HKD 142,584 thousand for the six months ended June 30, 2022, down from HKD 283,585 thousand in the previous year, representing a reduction of approximately 50%[125]. Debt and Financial Position - As of June 30, 2022, the total borrowings amounted to approximately HKD 84.5 million, up from approximately HKD 49.3 million as of December 31, 2021[40]. - The group's debt-to-equity ratio increased to approximately 85.9% as of June 30, 2022, compared to 34.9% as of December 31, 2021[40]. - The group had unutilized credit facilities of HKD 20.1 million as of June 30, 2022, down from approximately HKD 28.2 million as of December 31, 2021[40]. - The company reported a significant increase in borrowings from HKD 49,300,000,000 in December 2021 to HKD 84,541,000,000 in June 2022, an increase of approximately 71.5%[95]. - The total liabilities decreased slightly from HKD 206,958,000,000 as of December 31, 2021, to HKD 205,189,000,000 as of June 30, 2022, a reduction of approximately 0.9%[95]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with all applicable provisions, except for the separation of the roles of Chairman and CEO until May 27, 2022[54]. - The audit committee consists of three independent non-executive directors, ensuring oversight of the company's financial reporting[57]. - The company is committed to reviewing and enhancing its corporate governance practices to ensure compliance with the governance code[55]. - The company has confirmed that all directors have complied with the standard code regarding securities trading during the reporting period[56]. Employee and Management Information - As of June 30, 2022, the company had 101 full-time employees, a decrease from 128 employees as of December 31, 2021[68]. - The group reported a total management compensation of HKD 15,157,000 for the six months ended June 30, 2022, compared to HKD 7,900,000 for the same period in 2021[187]. - The group’s total management compensation includes share-based payments of HKD 9,985,000 for the six months ended June 30, 2022, compared to HKD 2,157,000 for the same period in 2021[187]. Cash Flow and Liquidity - Operating cash flow for the six months ended June 30, 2022, was a net outflow of HKD 32,291,000, compared to a net outflow of HKD 19,730,000 for the same period in 2021[103]. - Cash flow from financing activities resulted in a net inflow of HKD 28,319,000 for the first half of 2022, up from HKD 21,074,000 in the prior year[103]. - Total cash and cash equivalents decreased by HKD 4,011,000, ending at HKD 17,729,000 as of June 30, 2022, compared to HKD 43,300,000 at the end of June 30, 2021[103]. Business Segments and Future Plans - The company plans to continue developing its green energy business, with solar power and energy storage products registered under its own brand in key regions[20]. - The company anticipates the need for additional fundraising to support operational expenditures for business growth in the green energy sector[20]. - The company is engaged in the development, design, production, and sales of green energy generation and storage systems, indicating a focus on renewable energy solutions[106]. - The company’s operational segments include facade engineering, permanent scaffolding, and green energy, reflecting a diversified business model[115].

Financial Performance - The company's revenue decreased by approximately HKD 59.2 million or 13.6% from HKD 435.8 million in 2020 to HKD 376.6 million in 2021[9]. - The gross loss increased significantly to HKD 140.1 million in 2021, compared to a gross loss of HKD 25.6 million in 2020, resulting in a gross loss margin of 37.2%[12]. - The company reported a loss before tax of HKD 175.7 million for 2021, compared to a loss of HKD 48.5 million in 2020[9]. - The net loss for the year was HKD 187.5 million, up from a net loss of HKD 47.8 million in the previous year[9]. - The company recorded a revenue of approximately HKD 376.6 million for the year, a decrease of about 13.6% compared to HKD 435.8 million for the year ended December 31, 2020[18]. - The facade engineering business generated revenue of HKD 213.5 million, down from HKD 336.2 million, while the permanent suspended platform business saw a revenue increase of 63.7% to HKD 163.1 million[21]. - The company reported a gross loss of approximately HKD 180.2 million in the facade engineering business, compared to a gross loss of HKD 54.8 million in the previous year[22]. - The gross profit margin for the permanent suspended platform business decreased to approximately 24.6% from 29.3% due to competitive pricing pressures[22]. - Other income decreased significantly from approximately HKD 6.8 million to HKD 0.7 million, primarily due to the absence of government subsidies received in the previous year[25]. - The company incurred administrative expenses of approximately HKD 32.0 million, a slight increase of about HKD 2.0 million from HKD 30.0 million in the previous year, mainly due to increased employee benefits[27]. - The net loss for the year was attributed to various factors, including supply chain disruptions and increased material costs due to the ongoing impact of COVID-19[19]. - The company faced significant challenges in project execution and material delivery, leading to additional outsourcing costs and project delays[19]. - The overall market environment remains challenging, with ongoing impacts from the pandemic affecting construction timelines and material costs[18]. - Financial costs increased from HKD 0.2 million in the previous year to HKD 1.9 million, primarily due to an increase in borrowings[28]. - The company's total borrowings rose significantly to approximately HKD 49.3 million as of December 31, 2021, from HKD 5.3 million in the previous year[33]. - The debt-to-equity ratio increased dramatically to approximately 34.9% as of December 31, 2021, compared to 2.0% in the previous year[34]. - The company’s tax expenses amounted to approximately HKD 11.8 million for the year, compared to a tax credit of HKD 0.7 million in the previous year[29]. - The company’s cash and cash equivalents decreased to HKD 96.1 million as of December 31, 2021, from HKD 107.3 million in the previous year[31]. Business Strategy and Development - The company plans to adopt a more conservative bidding strategy in its operations to address the intense competition in the facade engineering business[13]. - The company aims to actively develop green energy businesses, including green building materials and renewable energy systems, through its joint venture Zhejiang Xinneng Zhonghe Technology Co., Ltd.[13]. - The company has signed its first supply contract for solar systems with a customer in Malaysia and is in the process of registering its own brand trademarks for solar and energy storage products in China, the US, and the EU[13]. - The company anticipates the need for additional fundraising to support operational expenditures for business growth[13]. - The company maintains a cautiously optimistic outlook for the construction industry in Hong Kong and seeks opportunities to enhance recurring revenue[14]. - The company acknowledges the support from shareholders, customers, suppliers, and employees during challenging times, aiming to restore sustainable profitability and long-term growth[15]. Corporate Governance - The company has adhered to the corporate governance code, with no deviations reported for the year[68]. - The company emphasizes the importance of independent directors in providing oversight and independent opinions to the board[56]. - The board consists of seven members, including four executive directors and three independent non-executive directors as of December 31, 2021[75]. - The company is committed to maintaining a diverse and experienced board to enhance governance and strategic decision-making[56]. - The board has delegated daily management and operational responsibilities to senior management while retaining overall leadership and strategic oversight[72]. - The company has established a risk management policy to address potential risks related to its business operations, including strategic, operational, and compliance risks[107]. - The board of directors believes that the company's risk management and internal control systems are adequate and effective, with annual reviews planned[108]. - The company has adopted a standard code for securities trading by directors, confirming compliance by all directors during the year[106]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific matters[72]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the company's performance and initiatives in environmental, social, and governance (ESG) aspects for the reporting period from January 1, 2021, to December 31, 2021[122]. - The company is committed to integrating sustainable business practices into its operations while adhering to the highest ethical standards[126]. - A comprehensive stakeholder survey was conducted in 2021 to identify significant ESG issues relevant to the company's operations[120]. - The company emphasizes the importance of stakeholder engagement to enhance its sustainable development performance[131]. - The board of directors oversees the management of ESG matters and is responsible for the company's ESG strategies and policies[125]. - The company is focused on continuous monitoring and improvement of its ESG performance, strategies, and goals[128]. - The company has established a comprehensive quality management system certified to ISO 9001:2015, ensuring compliance with quality standards and continuous improvement[151]. - The company has implemented a regulatory compliance and licensing management system to ensure business operations adhere to relevant laws and regulations[149]. - The company conducts regular compliance checks through audits, site inspections, and performance evaluations to maintain up-to-date compliance measures[149]. Employee and Workplace Management - The company has a total of 128 employees, all of whom are full-time staff from Hong Kong[169]. - Employee composition includes 77% male and 23% female, with 29% under 30 years old, 70% between 30 to 50 years old, and 1% over 51 years old[170][172]. - The company prioritizes employee development and training as part of its high-importance issues[142]. - The company provides appropriate training for employees to enhance the quality of work and services[157]. - The company has implemented a key performance indicator assessment scheme to enhance performance and operational efficiency[177]. - The company aims to maintain a high standard of occupational safety and health, adhering to applicable laws and regulations[183]. - Safety measures include regular inspections of equipment and safety assessments conducted weekly by senior safety supervisors[185]. - The total number of work-related deaths over the past three years remains at zero, with a work injury count of 3 in 2021, down from 7 in 2020[190]. - The total days lost due to work injuries decreased significantly to 231 days in 2021 from 1551 days in 2020 and 2121 days in 2019[190].

Financial Performance - The company reported revenue of approximately HKD 244.1 million for the six months ended June 30, 2021, representing an increase of about 78.5% compared to HKD 136.8 million in the same period of 2020[8]. - The gross loss for the period was HKD 48.9 million, compared to a gross loss of HKD 13.7 million in the prior year[8]. - The loss before tax was HKD 63.4 million, up from a loss of HKD 27.0 million in the previous year[8]. - The net loss for the period was HKD 73.1 million, compared to a net loss of HKD 24.8 million in the same period of 2020[8]. - The group recorded a net loss of approximately HKD 73.1 million for the period, compared to a net loss of HKD 24.8 million in the same period of 2020[29]. - The company reported a loss before tax of HKD 63,433,000 for the six months ended June 30, 2021, compared to a loss of HKD 27,006,000 for the same period in 2020[113]. - The net cash used in operating activities for the six months ended June 30, 2021, was HKD (19,730,000), compared to HKD (70,465,000) for the same period in 2020, indicating an improvement of approximately 72%[99]. - The company incurred a total comprehensive loss of HKD (73,073,000) for the period, reflecting significant challenges in its operations[96]. Revenue Breakdown - The facade engineering business generated revenue of HKD 182.8 million, up from HKD 95.9 million, while the permanent scaffold business increased to HKD 61.3 million from HKD 40.9 million[19]. - Revenue from major customers contributing over 10% to total revenue for the six months ended June 30, 2021, was HKD 106,764,000, compared to HKD 54,631,000 for the same period in 2020, representing an increase of 95.5%[110]. - The total revenue for the exterior wall engineering business for the six months ended June 30, 2021, was HKD 182,831,000, up from HKD 95,875,000 in 2020, reflecting an increase of 90.6%[113]. - The total revenue for the permanent lifting vessel business for the six months ended June 30, 2021, was HKD 61,282,000, compared to HKD 40,918,000 in 2020, marking an increase of 49.5%[113]. Operational Challenges - The company faced significant challenges due to the COVID-19 pandemic, affecting construction schedules and material delivery, leading to increased project costs[11]. - The company incurred additional costs due to delays in material delivery from suppliers, resulting in significant losses on several projects[12]. - The overall operational environment remains challenging, with ongoing impacts from the pandemic affecting the construction industry[11]. - The company anticipates additional costs exceeding HKD 10 million due to delays and material inflation related to the external wall construction project in Tai Wai[177]. - The company has ongoing negotiations regarding compensation related to construction defects, with financial impacts yet to be quantified[177]. Financial Position - As of June 30, 2021, the group's cash and cash equivalents amounted to approximately HKD 113.7 million, an increase from HKD 107.3 million as of December 31, 2020[32]. - The total bank and other borrowings increased to approximately HKD 33.3 million from HKD 5.3 million as of December 31, 2020[32]. - The group's debt-to-equity ratio rose significantly to about 15.7% as of June 30, 2021, compared to 2.0% as of December 31, 2020[34]. - The company’s total equity attributable to owners decreased to HKD 246,938,000 from HKD 317,854,000, a decline of 22.2%[88]. - The total assets as of June 30, 2021, were HKD 435,805,000, down from HKD 483,874,000 as of December 31, 2020, representing a decrease of 9.9%[88]. - Current liabilities increased to HKD 188,867,000 as of June 30, 2021, compared to HKD 166,020,000 at the end of 2020, reflecting a rise of 13.7%[91]. - The company’s retained earnings decreased to HKD 94,642,000 as of June 30, 2021, down from HKD 167,715,000 at the beginning of the year, representing a decline of approximately 43.7%[96]. Share Options and Corporate Governance - The company has adopted corporate governance practices in compliance with the Stock Exchange's guidelines[48]. - The board of directors confirmed compliance with the securities trading standards throughout the reporting period[49]. - The company adopted a pre-IPO share option plan on March 21, 2019, which will expire on March 21, 2029, with a total of 23,400,000 shares granted, accounting for approximately 3.75% of the issued shares as of the report date[68]. - The exercise price for each share option granted under the pre-IPO share option plan is HKD 0.115 per share[143]. - The company will seek shareholder approval to update the 10% limit on share options at the upcoming general meeting[74]. - The total expenses incurred from share-based payments for the six months ended June 30, 2021, were HKD 2,157,000, compared to HKD 2,158,000 for the same period in 2020[148]. Employee and Management Information - The group employed 160 full-time employees as of June 30, 2021, down from 172 employees as of December 31, 2020[61]. - The total remuneration for key management personnel increased to HKD 7,900,000 for the six months ended June 30, 2021, compared to HKD 5,835,000 for the same period in 2020, reflecting a rise in compensation expenses[176]. - The monthly salary of executive director Ms. Liang was revised from HKD 90,000 to HKD 100,000 in May 2021[79].