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].

Financial Performance - Revenue for 2020 decreased by 9.1% to approximately HKD 435.8 million from HKD 479.5 million in 2019[19] - The company recorded a gross loss of approximately HKD 25.6 million, compared to a gross profit of HKD 97.2 million in the previous year, resulting in a gross margin of -5.9%[12] - Adjusted loss for the year was approximately HKD 47.8 million, down from an adjusted profit of HKD 59.2 million in 2019[19] - The company recorded revenue of approximately HKD 435.8 million for the year, a decrease of about 9.1% compared to HKD 479.5 million for the year ended December 31, 2019[29] - The company experienced a gross loss of approximately HKD 25.6 million, compared to a gross profit of HKD 97.2 million for the year ended December 31, 2019[29] - The company recorded a net loss of approximately HKD 47.8 million for the year, compared to a net profit of HKD 59.2 million for the year ended December 31, 2019[29] - The external wall engineering business recorded a gross loss of approximately HKD 54.8 million in 2020, compared to a gross profit of approximately HKD 38.4 million in 2019, due to unforeseen challenges from the COVID-19 pandemic[55] Project and Market Activity - The company secured 37 new design and build projects with a total contract value of approximately HKD 278.1 million during the year[21] - As of December 31, 2020, the company had 23 ongoing facade engineering projects valued at approximately HKD 1,256.1 million and 71 permanent hoisting projects valued at approximately HKD 360.7 million[21] - The company faced significant project delays due to the COVID-19 pandemic, impacting both the supply chain and project timelines, leading to increased costs[29] - The permanent hoist business's revenue significantly decreased due to major delays in new and ongoing projects caused by the pandemic[33] Cost Management and Financial Strategy - The company plans to implement stricter cost control measures to optimize cash flow management amid ongoing economic challenges[20] - The company aims to adopt a more competitive bidding pricing policy while strictly controlling production costs to achieve reasonable project gross margins[21] - The overall economic downturn in Hong Kong and intense market competition forced the company to adjust project pricing, resulting in a decrease in the number of change orders and gross margins[39] - The group’s administrative expenses decreased to approximately HKD 30.0 million for the year, down 34.0% from HKD 45.5 million for the year ended December 31, 2019, primarily due to the absence of listing expenses this year[47] Governance and Corporate Structure - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee[98] - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[96] - The company has received annual independence confirmation from all independent non-executive directors, affirming their independence[103] - The company will continue to review and improve its corporate governance practices to ensure compliance with the corporate governance code[97] - The board is responsible for overall leadership and monitoring the company's strategic decisions and performance[98] Environmental and Social Responsibility - The company has established a sustainable development strategy that includes environmental sustainability, respect for human rights, and maintaining relationships with local communities[164] - The company aims to reduce carbon emissions and carbon footprint through various carbon reduction measures in daily operations[190] - The total greenhouse gas emissions for the reporting year were approximately 149.51 tons, an increase of about 19.30% compared to 125.32 tons in 2019[186] - The company is committed to sustainable development and has not experienced any significant violations of environmental laws and regulations during the reporting year[182] Employee and Human Resource Management - The company has implemented comprehensive human resource management policies to ensure competitive employee benefits and fair compensation practices[200] - The company has 172 employees as of December 31, 2020, compared to 128 employees in 2019[188] - The company encourages employees to turn off all electrical appliances and use energy-efficient devices to further reduce greenhouse gas emissions[186]

Financial Performance - The company's revenue for the six months ended June 30, 2020, was approximately HKD 136.8 million, a decrease of about 40.4% compared to HKD 229.6 million in the same period of 2019[9]. - The gross loss recorded was approximately HKD 13.7 million, compared to a gross profit of approximately HKD 54.2 million in 2019[14]. - The company reported a loss before tax of approximately HKD 27.0 million, compared to a profit of HKD 32.3 million in the same period of 2019[9]. - Adjusted loss for the period was approximately HKD 24.8 million, down from a profit of approximately HKD 36.0 million in 2019, excluding one-time listing expenses of HKD 10.8 million[15]. - The group recorded revenue of approximately HKD 136.8 million for the period, a significant decrease of about 40.4% compared to HKD 229.6 million in the same period of 2019[23]. - The group reported a net loss of approximately HKD 24.8 million for the period, compared to an adjusted profit of approximately HKD 36.0 million in the same period of 2019[33]. - The company reported a loss of HKD 24,815,000 during the period, impacting retained earnings[121]. - The total comprehensive loss for the period amounted to HKD 32,497,000, reflecting the financial challenges faced[121]. Operational Challenges - The decline in performance was primarily due to unexpected increases in project costs and delays caused by the COVID-19 pandemic, affecting supplier deliveries and material quality[15]. - The permanent hoisting business experienced a significant revenue decrease due to the overall economic downturn in Hong Kong and intense market competition[17]. - The number of change order projects and gross margins decreased due to competitive pricing pressures in the market[17]. - The construction progress of several ongoing projects was unexpectedly delayed, leading to cost overruns and additional construction costs[15]. - The company faced increased legal and compliance costs post-listing, impacting overall profitability[17]. Financial Position - The group maintained a solid financial position with cash and cash equivalents of approximately HKD 148.4 million as of June 30, 2020, down from HKD 206.6 million as of December 31, 2019[37]. - The group did not recommend any dividend payment for the period, consistent with the previous period[20]. - As of June 30, 2020, the group's unutilized bank financing amounted to HKD 27.7 million, an increase from HKD 13.3 million as of December 31, 2019[38]. - The group's debt-to-equity ratio as of June 30, 2020, was approximately 2.1%, slightly down from 2.2% as of December 31, 2019[38]. - The company has maintained a prudent financial management strategy to ensure a robust liquidity position throughout the period[39]. Shareholder Information - The company has a total of 520,000,000 shares issued as of June 30, 2020[71]. - Major shareholders RR (BVI) Limited and SV (BVI) Limited each hold 195,000,000 shares, representing 37.5% ownership each[70][72]. - The total number of options granted under the pre-IPO share option plan is 23,400,000 shares, accounting for approximately 4.5% of the issued shares[86]. - The company aims to attract and retain experienced personnel through its share option plan[89]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2020, was a net outflow of HKD 70,465,000 compared to an inflow of HKD 11,691,000 in 2019, indicating a significant decline in operational performance[125]. - Cash inflow from investing activities was HKD 19,194,000 for the first half of 2020, a recovery from an outflow of HKD 807,000 in the same period of 2019, primarily due to the sale of financial assets[125]. - Cash inflow from financing activities increased to HKD 35,812,000 in 2020, up from HKD 24,782,000 in 2019, reflecting improved borrowing activities[125]. - The company reported a net decrease in cash and cash equivalents of HKD 59,621,000 for the first half of 2020, compared to a decrease of HKD 38,289,000 in 2019[125]. Assets and Liabilities - Total assets decreased from HKD 495,579,000 to HKD 415,387,000, a decline of approximately 16.2%[110]. - Total liabilities decreased from HKD 121,321,000 to HKD 76,668,000, a decline of about 36.8%[113]. - The company's equity attributable to owners decreased from HKD 374,258,000 to HKD 338,719,000, a drop of approximately 9.5%[110]. - Trade receivables and warranty receivables fell from HKD 40,996,000 to HKD 27,086,000, a reduction of approximately 33.9%[110]. Future Plans - The company aims to navigate these challenges by enhancing project management and operational efficiency in the upcoming periods[12]. - The group plans to adopt a more competitive bidding pricing policy and strictly control production costs to achieve reasonable project gross margins in the future[23]. - The group plans to utilize HKD 5.0 million for recruiting additional staff by the first half of 2021[47]. - The company has no significant plans for major investments or capital assets as of June 30, 2020[53].

Financial Performance - The company reported revenue of HKD 479.5 million for the year ended December 31, 2019, representing a 2.9% increase from HKD 466.1 million in 2018[8]. - Gross profit increased to HKD 97.2 million, with a gross margin of 20.3%, up from 19.5% in the previous year[8]. - Adjusted profit before tax was HKD 59.2 million, slightly down from HKD 59.4 million in 2018, indicating a decrease of approximately 0.5%[12]. - The net profit after tax decreased to HKD 41.1 million from HKD 98.9 million in 2018, primarily due to increased listing and administrative expenses[12]. - The group recorded a revenue of approximately HKD 479.5 million, an increase of 2.9% compared to HKD 466.1 million for the year ended December 31, 2018[25]. - The net profit for the year was approximately HKD 41.1 million, a decrease of about 58.5% from HKD 98.9 million for the year ended December 31, 2018[40]. - The group's net profit for 2019 was HKD 41.1 million, a decrease of 58.5% from HKD 98.9 million in 2018[41]. - Adjusted net profit for 2019 was HKD 59.2 million, slightly down from HKD 59.4 million in 2018[41]. Cash and Financial Position - The company maintained a healthy financial position with cash and bank balances of approximately HKD 133.3 million as of December 31, 2019[13]. - Cash and cash equivalents increased from HKD 70.1 million at the end of 2018 to HKD 133.3 million at the end of 2019[44]. - The group's total bank borrowings decreased from approximately HKD 8.9 million in 2018 to HKD 6.4 million in 2019, with an interest rate of 6.00% to 6.13%[44]. - The group's unused bank financing was approximately HKD 13.3 million as of December 31, 2019, down from HKD 65.8 million in 2018[45]. - The debt-to-equity ratio improved from 5.6% in 2018 to 2.2% in 2019[45]. Market and Business Strategy - The company plans to leverage its resources to seize opportunities for long-term development despite economic uncertainties[15]. - The company aims to expand its market presence beyond Hong Kong to mitigate risks associated with reliance on a single regional market[18]. - The listing on the Hong Kong Stock Exchange on November 8, 2019, is seen as a significant milestone for the company, providing additional capital for project acquisition and business expansion[11]. - The group expects significant revenue contributions from ongoing projects in the coming years[24]. Project and Operational Performance - The group completed a total of 30 design and construction projects during the year, with a total contract value of approximately HKD 736.7 million, representing an increase of about 50.4% from HKD 489.9 million as of December 31, 2018[23]. - The gross profit increased from approximately HKD 91.1 million to HKD 97.2 million, reflecting a growth of 6.7%[29]. - The gross profit margin improved from 19.5% to 20.3%, primarily due to an increase in the gross profit margin of permanent suspended working platforms[29]. - The group has 21 ongoing projects related to facade engineering with a total contract value of approximately HKD 1,146.0 million, and 72 projects related to permanent suspended working platforms valued at approximately HKD 409.2 million[24]. Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[85]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules[89]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence as per listing rules[91]. - The board emphasizes the importance of diversity in enhancing performance, considering factors such as gender, age, cultural background, and professional qualifications[92]. - The company aims to hold at least four board meetings annually, with the first meeting of 2020 held on March 26 to approve the annual results for the year ending December 31, 2019[102]. Risk Management and Compliance - The company has established a risk management policy to address potential risks related to its business operations, including strategic, operational, and compliance risks[131]. - An independent internal control consultant was hired to conduct a comprehensive assessment of the company's internal control system, including financial, operational, compliance, and risk management aspects[131]. - The board of directors believes that the company's risk management and internal control systems are adequate and effective, with annual reviews planned[133]. - The company has implemented strict internal control procedures to identify potential non-compliance events and encourages employees to report any issues[133]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report outlines the company's performance in these areas for the fiscal year ending December 31, 2019[144]. - The ESG report was prepared in accordance with the Hong Kong Stock Exchange's listing rules and highlights the impact of the company's operations in Hong Kong[145]. - The total greenhouse gas emissions for the reporting year amounted to 125.32 tons, with an intensity of approximately 0.98 tons per employee[162]. - The company aims to reduce carbon emissions and carbon footprint through various energy-saving measures, including encouraging employees to use natural light[171]. - The company has implemented environmental policies to reduce air pollutant emissions, with all vehicles undergoing frequent inspections and maintenance[156]. Employee Management and Welfare - The company has a total of 128 employees in Hong Kong as of December 31, 2019, with a gender ratio of approximately 4:1 (male to female) and 75% of employees being frontline workers[180]. - The average monthly turnover rate for employees is maintained at a favorable level of 1.77%, with male and female turnover rates at 2.20% and 1.05% respectively[186]. - The company emphasizes a competitive employee benefits package, ensuring fair and competitive compensation practices aligned with market standards[176]. - The company is committed to maintaining a safe and healthy work environment, with regular safety training and monitoring on construction sites[189]. - 100% of employees received training on safety issues during the reporting year[190].