Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 38,368,000, a decrease of 6.8% from HKD 41,235,000 in the same period of 2023[9] - Gross loss for the period was HKD 13,699,000, compared to a gross loss of HKD 14,938,000 in the previous year, indicating an improvement[1] - The company reported a pre-tax loss of HKD 25,467,000, which is a 10.9% increase from a pre-tax loss of HKD 22,960,000 in the prior year[1] - Basic loss per share for the six months was HKD 0.0816, slightly improved from HKD 0.0869 in the same period last year[2] - The company reported a loss attributable to owners of HKD 25,467,000 for the six months ended June 30, 2024, compared to a loss of HKD 22,960,000 in the same period of 2023[24] - The net loss attributable to the company's owners was approximately 25.5 million HKD for the review period, compared to a net loss of approximately 23.0 million HKD for the six months ended June 30, 2023[47] Assets and Liabilities - Total current assets decreased to HKD 40,379,000 from HKD 64,120,000, reflecting a decline of 37.0%[3] - The net asset value dropped to HKD 27,701,000 from HKD 53,168,000, a decrease of 47.9%[3] - Trade receivables increased to HKD 7,303,000 from HKD 5,512,000, representing a growth of 32.5%[3] - Trade receivables increased to HKD 7,615,000 as of June 30, 2024, compared to HKD 5,824,000 as of December 31, 2023, representing a growth of 30.7%[29] - Contract assets amounted to HKD 23,388,000 as of June 30, 2024, up from HKD 23,111,000 as of December 31, 2023, indicating a slight increase of 1.2%[31] - The company recorded a total of HKD 12,352,000 in trade payables as of June 30, 2024, compared to HKD 7,164,000 as of December 31, 2023, reflecting an increase of 72.5%[34] - As of June 30, 2024, the group's bank balances and cash totaled approximately 435,000 HKD, compared to about 18.6 million HKD as of December 31, 2023[48] - The total borrowings of the group as of June 30, 2024, were approximately 5.8 million HKD, down from about 9.6 million HKD as of December 31, 2023[48] - The debt-to-equity ratio was approximately 21.0%, an increase from 18.1% as of December 31, 2023, primarily due to accumulated losses[52] Expenses and Costs - The company incurred a depreciation expense of HKD 933,000 for property, plant, and equipment during the six months ended June 30, 2024, compared to HKD 1,399,000 for the same period in 2023[20] - The total employee costs for the six months ended June 30, 2024, amounted to HKD 2,535,000, down from HKD 3,079,000 in the previous year[22] - Short-term benefits for key management personnel decreased to HKD 390,000 in the first half of 2024 from HKD 504,000 in the same period of 2023, a decline of 22.5%[37] - Total employee costs for the review period were approximately HKD 2.5 million, down from HKD 3.1 million for the six months ended June 30, 2023[53] - Administrative expenses decreased by approximately 14.4% to about 3.8 million HKD from approximately 4.4 million HKD for the six months ended June 30, 2023[45] - Financing costs increased by approximately 25.6% to about 255,000 HKD from approximately 203,000 HKD for the six months ended June 30, 2023[46] Corporate Governance and Compliance - The company did not declare or propose any dividends for the six months ended June 30, 2024, consistent with the previous year[23] - The audit committee has reviewed and approved the interim financial results, ensuring compliance with applicable accounting standards and regulations[59] - The company continues to comply with corporate governance codes, with the chairman also serving as the CEO, which the board believes is in the best interest of the group[55] Business Operations and Strategy - The company continues to focus on providing construction services and construction information technology services, with no new products or technologies reported in this period[4] - The group is actively seeking opportunities to expand its customer base and market share in the mud engineering sector[41] - The group is exploring business opportunities outside the Hong Kong market to enhance future development and solidify its revenue base[41] - The group has not engaged in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[52] - The group has no plans for significant investments or capital assets as of the announcement date[52] Financial Management - The company recorded a financing cost of HKD 255,000 for bank borrowings in the six months ended June 30, 2024, compared to HKD 203,000 in the same period of 2023[21] - The group has adopted a prudent financial management approach to ensure liquidity and meet funding needs[49] - The group has not utilized any financial instruments to hedge foreign exchange risks, as most transactions and assets are denominated in HKD[51] - The group has maintained a stable workforce of 14 employees as of June 30, 2024, consistent with the previous reporting period[53] - The company has established an online platform since 2021 to facilitate payment applications using its database, enhancing operational efficiency[38]

Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$86.7 million, a decrease of approximately HK$35.8 million or 29.2% compared to HK$122.5 million for the year ended December 31, 2022[13]. - The gross loss reported for the year was approximately HK$21.5 million, primarily due to competitive project pricing, delays in certification of works, and increased direct costs[13]. - The gross loss for the Year amounted to approximately HK$21.5 million, a decrease of approximately 24.9% compared to a gross loss of approximately HK$28.6 million in 2022[40]. - The gross loss margin for the Year was approximately 24.8%, compared to approximately 23.4% in 2022[40]. - Other gains for the Year amounted to a net gain of approximately HK$3.4 million, representing an increase of approximately 293.5% compared to a net loss of approximately HK$1.8 million in 2022[41]. - Administrative expenses increased by approximately 15.8% to approximately HK$9.1 million, up from approximately HK$7.9 million in 2022[42]. - The net loss attributable to owners of the Company for the year was approximately HK$51.6 million, a decrease of approximately HK$4.6 million or approximately 8.2% from approximately HK$56.2 million for the year ended December 31, 2022[49]. - The gearing ratio as of December 31, 2023, was approximately 18.1%, compared to approximately 9.3% as of December 31, 2022[66]. Market Conditions - Hong Kong's GDP grew by 3.2% year-on-year in 2023, driven by the recovery of inbound tourism and private consumption, but ongoing global demand weakness and tightened monetary conditions limited a full rebound[17]. - The economic outlook for Hong Kong in 2024 is expected to remain positive but at a slower pace, supported by resilient consumption and government stimulus[17]. - The recent relaxation of property cooling measures in Hong Kong has positively impacted the property market, although economic performance is heavily reliant on the Mainland economy[17]. - The Group's management acknowledges the ongoing external and domestic uncertainties that may prolong the resolution of current challenges[17]. Business Strategy - The Group is exploring business opportunities and expanding geographical coverage beyond the Hong Kong market to enhance future development and strengthen revenue bases[18]. - The Group anticipates that diversification of its business will provide better returns to shareholders[18]. - The Group plans to maintain its market share by closely monitoring market conditions and improving competitiveness through quality work[34]. - The Group anticipates continued government investment in infrastructure despite challenges in the construction market due to increased competition from Mainland China companies[33]. Human Resources - As of December 31, 2023, the Group employed a total of 14 employees, down from 16 employees as of December 31, 2022[79]. - Total staff costs for the year were approximately HK$5.6 million, compared to approximately HK$5.3 million for the year ended December 31, 2022, reflecting a year-on-year increase of about 5.66%[79]. - The Group has not experienced significant problems with employees due to labor disputes, nor difficulties in recruitment and retention of experienced staff during the year[81]. - The Group's human resource management aims to reward and recognize well-performing staff through competitive remuneration and performance appraisal systems[101]. Share Option Scheme - The Company has adopted a share option scheme to incentivize Directors and eligible employees, which is valid for ten years starting from July 22, 2019[114]. - The maximum number of shares available for issue under the Share Option Scheme is 26,000,000 shares, approximately 8.33% of the shares in issue as of December 31, 2023[122]. - The maximum entitlement of each participant under the Share Option Scheme is limited to 1% of the shares in issue at the date of grant, requiring shareholder approval for any excess[124]. - The subscription price for any share option granted under the Share Option Scheme must not be less than the highest of the closing price on the date of grant, the average closing price for the five trading days preceding the grant, or the nominal value of a share[131]. - As of the date of the annual report, the remaining life of the Share Option Scheme is approximately 5 years and 3 months, with no options granted or exercised during the year[132]. - The Company has no outstanding options as of December 31, 2023, as none were granted since the adoption of the Share Option Scheme[132]. Customer and Supplier Relationships - The Group's major customers include construction work companies engaged in public and/or private construction projects in Hong Kong, with long-term business relationships established[102]. - The Group has developed long-standing relationships with sub-contractors and suppliers, ensuring quality and sustainable goods and services[103]. - The largest customer accounted for approximately 80.8% of total revenue for the year ended December 31, 2023, compared to 49.0% in the previous year[192]. - The five largest customers collectively contributed 97.7% of total revenue for the year ended December 31, 2023, slightly down from 98.0% in 2022[192]. Corporate Governance - The Board has resolved not to recommend the declaration of a final dividend to shareholders for the year[82]. - As of December 31, 2023, there are no reserves available for distribution to shareholders, a decrease from HK$72.2 million in 2022[112]. - The Company has adopted a dividend policy to allow shareholders to participate in profits while retaining adequate reserves for future growth[142]. - In deciding whether to propose a dividend, the Board will consider the general financial condition of the Group[143]. - The Board will review the dividend policy periodically, but there is no assurance that dividends will be proposed or declared in any specific periods[149]. Related Party Transactions - All related party transactions of the Group are fully exempted from independent Shareholders' approval and disclosure requirements[195]. - There were no significant transactions, arrangements, or contracts related to the Group's business involving Directors or controlling shareholders during the year[157]. - The company has not disclosed any loans or significant transactions involving Directors or their connected entities during the year[152].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 86,702,000, a decrease of 29.3% from HKD 122,517,000 in 2022[2] - Cost of services for the same period was HKD 108,191,000, down 28.5% from HKD 151,145,000 in 2022[2] - The gross loss for the year was HKD 21,489,000, compared to a gross loss of HKD 28,628,000 in 2022, representing a 25.2% improvement[2] - The company reported a loss before tax of HKD 51,618,000 for the year, slightly improved from a loss of HKD 56,310,000 in 2022[2] - Basic loss per share for the year was HKD 16.54, compared to HKD 19.49 in 2022, indicating a reduction in loss per share by 15.1%[2] - The company reported a loss of HKD 51,618,000 in 2023, an improvement from a loss of HKD 56,203,000 in 2022, indicating a reduction in losses of approximately 8%[46] - The net loss attributable to shareholders decreased by approximately 4.6 million HKD or about 8.2% to approximately 51.6 million HKD for the year, compared to a net loss of approximately 56.2 million HKD in the previous year[64] Assets and Liabilities - Total assets decreased to HKD 71,757,000 in 2023 from HKD 123,936,000 in 2022, a decline of 42.1%[3] - The net asset value decreased to HKD 53,168,000 in 2023 from HKD 104,786,000 in 2022, a decline of 49.3%[3] - The company's total liabilities classification will not be affected by the application of the amendments to accounting standards as of December 31, 2023[26] - The asset-liability ratio was approximately 18.1%, up from 9.3% on December 31, 2022[72] - The total borrowings of the group were approximately 9.6 million HKD as of December 31, 2023, compared to approximately 9.7 million HKD as of December 31, 2022[67] Cash Flow and Financial Position - Cash and cash equivalents increased to HKD 18,600,000 in 2023 from HKD 14,006,000 in 2022, an increase of 32.5%[3] - Interest income increased to HKD 112,000 in 2023 from HKD 35,000 in 2022, representing a growth of 220%[39] - The gain from the sale of properties, plants, and equipment was HKD 3,314,000 in 2023, compared to a loss of HKD 1,881,000 in 2022, indicating a significant turnaround[39] - The net trade receivables decreased to HKD 5,512,000 in 2023 from HKD 6,472,000 in 2022, a decline of approximately 15%[48] - The group had pledged financial assets valued at approximately HKD 2.7 million as of December 31, 2023, compared to HKD 2.6 million on December 31, 2022[69] Revenue Segmentation - The construction services segment generated revenue of HKD 86,336 thousand in 2023, down from HKD 121,720 thousand in 2022, reflecting a decline of 29.1%[31] - The construction information technology services segment recorded a revenue of HKD 366 thousand in 2023, down from HKD 797 thousand in 2022, representing a decline of 54.0%[31] - Revenue from Customer I accounted for HKD 70,089 thousand in 2023, up from HKD 60,047 thousand in 2022, reflecting an increase of 16.9%[37] - The group did not report any inter-segment sales, with all reported segment revenues derived from external customers[31] Employee and Administrative Expenses - The total employee benefits expenses rose to HKD 5,584,000 in 2023 from HKD 5,294,000 in 2022, an increase of about 5%[43] - The total employee cost for the year was approximately HKD 5.6 million, compared to HKD 5.3 million for the year ending December 31, 2022[79] - Administrative expenses increased by approximately 15.8% to about 9.1 million HKD from approximately 7.9 million HKD in the previous year, primarily due to increased administrative costs allocated to employees[62] - The group employed a total of 14 employees as of December 31, 2023, down from 16 employees as of December 31, 2022[79] Accounting Standards and Policies - The company has adopted new accounting standards, which may impact future financial reporting but did not have a significant effect on the current year's results[9] - The application of the revised Hong Kong Financial Reporting Standard No. 17 has been postponed to January 1, 2023, or later for the first reporting period[11] - The group has contracts that meet the definition of insurance contracts under Hong Kong Financial Reporting Standard No. 17, but these contracts are explicitly excluded from its scope, resulting in no significant impact on the consolidated financial statements for the year[12] - The group has adopted the revised definition of accounting estimates under Hong Kong Accounting Standard No. 8, which clarifies the distinction between changes in accounting estimates and changes in accounting policies[13] - The application of the revised Hong Kong Accounting Standard No. 1 and the practical guide has not had a significant impact on the group's financial position and performance, but it has affected the disclosure of accounting policies in the consolidated financial statements[16][17] - The accounting policy changes during the year did not have a significant impact on the consolidated financial statements[22] - The group does not anticipate that the newly issued and revised Hong Kong Financial Reporting Standards will have a significant impact on the consolidated financial statements in the foreseeable future[23] Corporate Governance and Future Outlook - The audit committee was established on July 22, 2019, consisting of three independent non-executive directors to review internal controls, risk management, and financial reporting[90] - The preliminary announcement of the consolidated financial statements for the fiscal year ending December 31, 2023, was agreed upon by the auditors, confirming consistency with the audited financial statements approved by the board on March 26, 2024[91] - The annual performance announcement will be published on the company's website and the Hong Kong Stock Exchange website[93] - The group is actively seeking opportunities to expand its customer base and market share in the civil engineering sector[57] - The group has established an online platform to assist clients in reviewing contractor payment requests, leveraging its expertise in providing information technology solutions for civil engineering payment requests[54] - The group did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[74] - The group did not hold any significant investments during the year[76] - The group maintained sufficient public float as required by the listing rules[89] - The group did not encounter any significant labor disputes or difficulties in hiring and retaining experienced staff during the year[80] - The board has resolved not to recommend a final dividend for the year[81]

Financial Performance - The Group's revenue decreased by approximately HK$2.6 million or approximately 6.0%, from approximately HK$43.9 million for the six months ended June 30, 2022, to approximately HK$41.2 million for the Review Period [31]. - The gross loss for the Review Period amounted to approximately HK$14.9 million, representing a decrease of approximately 39.8% compared to approximately HK$24.8 million for the six months ended June 30, 2022 [32]. - The gross loss margin for the Review Period was approximately 36.2%, down from approximately 56.6% for the six months ended June 30, 2022, indicating improved cost control [32]. - The net loss attributed to owners of the Company was approximately HK$23.0 million for the Review Period, an improvement from a net loss of approximately HK$34.7 million for the six months ended June 30, 2022 [41]. - Loss before tax for the period was approximately HK$23.0 million, compared to a loss of approximately HK$34.8 million for the same period in 2022, indicating a reduction in losses [71]. - The company reported a loss before tax of HK$22,960,000 for the six months ended June 30, 2023, an improvement from a loss of HK$34,796,000 in the same period of 2022, reflecting a reduction of approximately 34% [79]. - Operating cash flow before movement in working capital was negative at HK$17,786,000, compared to negative HK$28,246,000 in the prior year, showing an improvement of about 37% [79]. - Cash and cash equivalents at the end of the period decreased to HK$7,797,000 from HK$14,006,000, a decline of approximately 44% [81]. Market Conditions - The construction market in Hong Kong is facing challenges due to high competition, which is expected to pressure the Group's profit margins for new projects [25]. - The overall business environment has gradually improved, yet the Group's tendering results remain unsatisfactory due to intense market competition [25]. - The easing of COVID-19-related restrictions has not yet translated into significant economic benefits for the construction industry [23]. - The Directors anticipate that the construction industry will continue to face a difficult and challenging business environment [24]. Operational Developments - The Group established an online platform to assist subscribers in managing payment requests for wet trade services, enhancing operational efficiency during the Review Period [22]. - The Group's expertise in providing wet trade solutions has been leveraged to create a database for payment applications, aiming to improve service delivery [12]. - The Group's ongoing projects include a wide range of specialties, such as brick work, plastering, and tiling, reflecting its diverse capabilities in the wet trades sector [13]. - The Group plans to explore business opportunities and expand geographical coverage beyond the Hong Kong market to enhance future development and strengthen revenue bases [30]. - The Group aims to maintain market share in the wet trades works industry by improving competitiveness and seeking opportunities to expand its customer base [29]. Financial Position - As of June 30, 2023, the Group's total bank balances and cash amounted to approximately HK$7.8 million, a decrease from approximately HK$14.0 million as of December 31, 2022 [50]. - The total borrowings of the Group remained stable at approximately HK$9.7 million as of June 30, 2023, consistent with the figure from December 31, 2022 [50]. - The gearing ratio increased to approximately 11.8% as of June 30, 2023, up from approximately 9.3% as of December 31, 2022, primarily due to an increase in accumulated losses [54]. - As of June 30, 2023, the company's net assets decreased to HK$81,826,000 from HK$104,786,000 as of December 31, 2022, representing a decline of approximately 22% [74]. - The total equity attributable to owners of the company fell to HK$81,826,000, down from HK$104,786,000, indicating a decrease of about 22% [76]. - The company’s reserves decreased significantly from HK$73,586,000 to HK$50,626,000, a reduction of approximately 31% [76]. Revenue and Income - For the six months ended June 30, 2023, total revenue was HK$41,235,000, a decrease of 6.0% from HK$43,881,000 in the same period of 2022 [102]. - Construction Services revenue decreased to HK$40,869,000, down 6.0% from HK$43,564,000 year-on-year [109]. - Public sector projects contributed HK$33,493,000 to Construction Services, an increase of 24.5% from HK$26,868,000 in 2022 [102]. - Other income increased significantly by approximately 12,628.1% to approximately HK$4.1 million, primarily due to increased government subsidies and gains from the disposal of property, plant, and equipment [38]. - Interest income for the period was HK$72,000, with unallocated other income amounting to HK$3,917,000 [109]. Staff and Management - Total staff costs for the Review Period amounted to approximately HK$3.1 million, an increase from approximately HK$2.9 million in the previous year [64]. - The remuneration for key management personnel increased to HK$1,503,000 in the six months ended June 30, 2023, compared to HK$1,386,000 in the same period of 2022, reflecting a rise of approximately 8.4% [179]. - The group’s short-term benefits for key management personnel increased to HK$1,462,000 in the first half of 2023, up from HK$1,345,000 in the same period of 2022, marking an increase of approximately 8.7% [179]. Shareholder Information - Mr. Adam Cheung holds a long position of 1,950,000,000 shares, representing 62.5% of the company's shareholding [190][198]. - Wonderful Renown, a direct shareholder of the company, is beneficially owned 84% by Mr. Adam Cheung and 16% by Ms. LC Cheung, collectively controlling 62.5% of the entire issued share capital [199]. - The company reported no significant changes in the interests of substantial shareholders as of June 30, 2023 [196]. Future Outlook - The company provided a future outlook with a revenue guidance of HKD 2.5 billion for the full year, representing a 20% increase compared to 2022 [200]. - Overall, the company remains optimistic about achieving double-digit growth in the next fiscal year [200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HANDS FORM HOLDINGS LIMITED 恆新豐控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號: 1920) 截至二零二三年六月三十日止六個月之 中期業績公告 恆新豐控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然呈列本公司及其 附屬公司（統稱為「本集團」）截至二零二三年六月三十日止六個月（「回顧期間」） 之未經審核簡明綜合中期財務報表如下： 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 收益 3A 41,235 43,881 服務成本 (56,173) (68,713) 毛損 (14,938) (24,832) 其他收入 4 4,073 32 ...

Financial Performance - The revenue from wet trades works and related ancillary works amounted to approximately HK$122.5 million, representing an increase of approximately HK$5.1 million or 4.3% compared to HK$117.5 million in 2021[18]. - The gross loss reported for the year was approximately HK$28.6 million, primarily due to competitive project pricing, delays in certification of works, and increased direct costs[18]. - The Group's revenue increased by approximately HK$5.1 million or approximately 4.3%, from approximately HK$117.5 million for the year ended 31 December 2021 to approximately HK$122.5 million for the Year[45]. - The gross loss for the Year was approximately HK$28.6 million, a decrease of approximately 54.9% compared to HK$63.5 million for the year ended 31 December 2021, with a gross loss margin improving to approximately 23.4% from 54.0%[50]. - Other income and losses resulted in a net loss of approximately HK$1.7 million, a decrease of approximately 1,014.2% compared to a net loss of approximately HK$190,000 for the previous year, mainly due to a one-off loss on disposals of property, plant, and equipment[47]. - The net loss attributable to owners of the Company decreased by approximately HK$27.0 million or 32.4% to approximately HK$56.2 million for the Year, driven by improved gross loss margin[55]. Operational Challenges - The Group incurred additional costs for safe management measures on site due to COVID-19, impacting operational efficiencies and project completion[23]. - The outlook for the industry remains difficult, with economic uncertainties potentially affecting short-term performance[23]. - The construction industry in Hong Kong remains challenged due to COVID-19-related restrictions, impacting cash flows and project timelines[39]. - The Group's profit margin for new projects is under pressure due to high competition in the Hong Kong construction industry[39]. - The Group's gross profit margin is affected by competitive project pricing, which impacts overall financial performance[39]. Strategic Initiatives - The Group has been exploring business opportunities beyond the Hong Kong market to enhance future development and strengthen revenue bases[24]. - The Group aims to diversify its business to provide better returns to shareholders[24]. - The Group aims to diversify its business and expand beyond the Hong Kong market to enhance future development and shareholder returns[26]. - The Group established an online platform to assist customers in reviewing contractor payment requests, leveraging its expertise in passive wet trade payment request information technology solutions[41]. - The Group will continue to monitor market conditions closely and respond to changes to maintain its market share in the wet trades works industry[40]. Financial Position - As of 31 December 2022, the original contract sum of ongoing projects amounted to approximately HK$280.2 million, and HK$289.3 million as of the report date[32]. - The Group is currently bidding for six projects with an estimated total contract sum of approximately HK$319.2 million[32]. - As of 31 December 2022, the Group had total bank balances of approximately HK$14.0 million, an increase from approximately HK$9.6 million as of 31 December 2021[57]. - The total borrowings of the Group decreased to approximately HK$9.7 million from approximately HK$16.3 million, with all borrowings denominated in Hong Kong dollars[57]. - The gearing ratio as of December 31, 2022, was approximately 9.3%, a decrease from 11.2% as of December 31, 2021[71]. Shareholder Information - The Board resolved not to recommend the declaration of a final dividend for the year[88]. - The Company has adopted a dividend policy to allow shareholders to participate in profits while retaining adequate reserves for future growth[151]. - The Board will consider the general financial condition, capital and debt levels, and future cash requirements when proposing dividends[155]. - As of December 31, 2022, Mr. Adam Cheung holds a long position of 1,950,000,000 shares, representing 62.5% of the company's shareholding[179]. - Wonderful Renown Limited, which is 84% owned by Mr. Adam Cheung, is the direct shareholder of the 1,950,000,000 shares[181]. Corporate Governance - All independent non-executive Directors confirmed their independence under the Listing Rules[148]. - The Company has arranged for insurance coverage for Directors' and officers' liabilities arising from corporate activities[174]. - Each executive Director has a service contract with a term of three years, while independent non-executive Directors have a one-year appointment[149]. - No early termination of Directors' appointments occurred during the year, and no termination benefits were provided[160]. - The independent non-executive Directors reviewed compliance with non-competition undertakings and confirmed no breaches[168].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HANDS FORM HOLDINGS LIMITED 恆新豐控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1920） 截至二零二二年十二月三十一日止年度之 年度業績公告 恆新豐控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其 附屬公司（統稱為「本集團」）截至二零二二年十二月三十一日止年度（「本年度」）之 綜合財務報表如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 3 122,517 117,456 服務成本 (151,145) (180,916) ...

Business Environment and Challenges - The Group reported a challenging business environment due to the ongoing COVID-19 pandemic, impacting cash flows and operational efficiencies[13] - Additional costs incurred for safety management measures on-site, including regular COVID-19 testing and safe distancing protocols[13] - The construction market in Hong Kong is experiencing adjustments under weakened market sentiment, leading to lower contract values awarded to the Group[13] - The Group's gross profit margin is under pressure from competitive pricing in tenders and quotations, affecting overall financial performance[13] - The Board acknowledges the intense market competition, which may result in fewer successful tenders[13] - The Group will continue to focus on long-term goals and sustainable development despite short-term challenges[13] Financial Performance - The interim financial statements cover the six months ended June 30, 2022[10] - The Group's revenue decreased by approximately HK$18.5 million or approximately 29.6% from approximately HK$62.3 million for the six months ended June 30, 2021, to approximately HK$43.9 million for the Review Period[26] - The Group reported a gross loss of approximately HK$24.8 million for the Review Period, an increase of approximately 319.7% compared to a gross loss of approximately HK$5.9 million for the six months ended 30 June 2021[36] - The gross loss margin for the Review Period was approximately 56.6%, compared to approximately 9.5% for the six months ended 30 June 2021[36] - The net loss attributed to owners of the Company was approximately HK$34.7 million for the Review Period, compared to a net loss of approximately HK$10.0 million for the six months ended June 30, 2021[36] - The loss before tax for the six months ended June 30, 2022, was approximately HK$34.8 million, compared to a loss of HK$10.0 million for the same period in 2021[48] - The loss and total comprehensive expense for the period was approximately HK$34.7 million, compared to HK$10.0 million in the prior year[48] Operational Efficiency and Strategy - A more prudent approach in project selection will be implemented, focusing on tenders from well-established contractors to ensure steady projects and sound receivables[13] - The Group aims to improve operating efficiency and take a cautious approach in tendering profitable projects to mitigate adverse impacts[13] - The Group aims to enhance its competitiveness by providing quality works and proactively seeking opportunities to expand its customer base and market share[19] - The Group continues to improve its operating efficiency and profitability while expanding its fleet of machinery and equipment to enhance technical capabilities for future project bids[28] - The Group is considering exploring other business opportunities and expanding its geographical coverage beyond the Hong Kong market to strengthen revenue bases[30] Revenue Breakdown - For the six months ended June 30, 2022, the Group's revenue from construction services was HK$43,564,000, a decrease from HK$62,340,000 in the same period of 2021, representing a decline of approximately 30.0%[76] - Revenue from construction IT services was HK$317,000 for the six months ended June 30, 2022, compared to HK$62,340,000 in the same period of 2021, indicating a significant decrease[76] - The Group's revenue from private sector construction services dropped to HK$16,696,000 from HK$54,705,000, reflecting a decline of approximately 69.5%[76] - Revenue from public sector construction services was HK$26,868,000 for the six months ended June 30, 2022, down from HK$43,881,000, a decrease of about 38.8%[76] Cash Flow and Financial Position - As of June 30, 2022, the Group had total bank balances and cash of approximately HK$27.2 million, up from approximately HK$9.6 million as of 31 December 2021[39] - Total borrowings as of 30 June 2022 were approximately HK$10.0 million, down from approximately HK$16.3 million as of 31 December 2021[39] - The Group's gearing ratio as of June 30, 2022, was approximately 7.9%, a decrease from 11.2% as of December 31, 2021, primarily due to repayment of borrowings[45] - The company raised approximately HK$15.3 million from the placing of new shares, with plans to allocate approximately HK$10.7 million (70%) for future business opportunities and approximately HK$4.6 million (30%) for working capital[39] - The net increase in cash and cash equivalents for the period was HK$17,643,000, significantly higher than HK$2,637,000 in the previous year[60] Corporate Governance and Compliance - The Company has adopted the Corporate Governance Code, with a noted deviation regarding the roles of chairman and chief executive officer being held by the same individual[184] - The Audit Committee was established on July 22, 2019, and consists of three members, overseeing financial reporting and internal control procedures[190] - The Company will continue to comply with the Corporate Governance Code to protect shareholders' interests, except for the noted deviation[184] - The interim financial results for the Review Period are unaudited but have been reviewed and approved by the Audit Committee, ensuring compliance with applicable accounting standards and Listing Rules[197] Share Capital and Management - The company raised new bank borrowings of HK$2,000,000 during the period[60] - The share capital increased by HK$5,200,000 due to the issuance of 520,000,000 ordinary shares at a placing price of HK$0.03 per share[144] - The remuneration for key management personnel decreased from HK$1,542,000 in 2021 to HK$1,386,000 in 2022, reflecting a reduction of approximately 10.1%[153] - The company aims to attract and retain top personnel through the Share Option Scheme[181] - The Group's directors expect no significant impact from the new and amended HKFRSs on future financial statements[74]

Financial Performance - The revenue from wet trades works and related ancillary services amounted to approximately HK$117.5 million, a decrease of approximately HK$187.5 million or 61.5% compared to HK$305.0 million in 2020[14]. - The Group reported a gross loss of approximately HK$63.5 million for the year, down from a gross profit of approximately HK$3.8 million in 2020, primarily due to increased construction costs and subcontracting costs[14]. - The Group's revenue decreased by approximately HK$187.5 million or approximately 61.5%, from approximately HK$305.0 million for the year ended 31 December 2020 to approximately HK$117.5 million for the Year[33]. - Other income decreased to approximately HK$190,000, down approximately 98.6% from approximately HK$13.5 million for the year ended 31 December 2020, primarily due to the absence of government subsidies received last year[38]. - The net loss attributable to owners of the Company for the Year was HK$83.2 million, a decrease of approximately HK$90.6 million or approximately 1,228.9% from a profit of approximately HK$7.4 million for the year ended 31 December 2020[40]. - The gross loss margin for the Year was approximately 54.0%, compared to a gross profit margin of approximately 1.2% for the year ended 31 December 2020[38]. - Administrative expenses for the Year were approximately HK$9.5 million, representing a slight decrease of approximately 0.6% from approximately HK$9.6 million for the year ended 31 December 2020[38]. - Finance costs increased to approximately HK$418,000, an increase of approximately 9.4% compared to approximately HK$382,000 for the year ended 31 December 2020, mainly due to higher interest on bank borrowings[38]. Market Conditions - The ongoing COVID-19 pandemic has significantly impacted the Hong Kong economy and construction industry, affecting cash flows and operational efficiencies[19]. - The construction market in Hong Kong is experiencing adjustments under weakened market sentiment due to the pandemic[19]. - The ongoing COVID-19 pandemic has added substantial uncertainties and challenges to the Hong Kong economy, contributing to a downward trend in the construction market[31]. - Demand for residential and commercial buildings is expected to sustain growth in the construction industry[161]. - The construction industry in Hong Kong is experiencing a growing demand for residential and commercial buildings, which is expected to attract more competitors[163]. Business Strategy - The Group has been exploring business opportunities beyond the Hong Kong market to enhance future development and strengthen revenue bases[20]. - The Group is actively seeking opportunities to expand its customer base and market share in the wet trades works industry[32]. - The Group plans to increase involvement in private sector projects to diversify its revenue sources[160]. - The Group is implementing measures to mitigate operational risks, including reallocating resources and recruiting additional manpower[157]. - The Group is committed to sustainability and is actively seeking to minimize its environmental impact through energy-saving and eco-friendly measures[177]. Operational Challenges - Additional costs incurred for safe management measures on site due to COVID-19 include safe distancing measures and regular swab tests[19]. - The Group aims to improve operating efficiency and adopt a prudent approach in tendering projects to mitigate adverse impacts[19]. - The company is facing operational risks due to unexpected circumstances such as adverse weather and geological issues, which may lead to increased costs and project delays[162]. - The company is actively hiring additional personnel and reallocating resources to accelerate project timelines in response to operational challenges[162]. - The company has implemented regular accounts aging analysis to mitigate financial liquidity pressures caused by longer collection times from clients[162]. Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value and safeguard interests of stakeholders[200]. - The company prioritizes transparency and accountability in its corporate governance practices[200]. - The board is committed to implementing appropriate corporate governance practices to protect shareholder interests[200]. - The company has a dedicated remuneration committee to oversee compensation policies and practices[195]. - The independent directors are involved in the audit and nomination committees to enhance governance oversight[195]. Human Resources - The Group employed a total of 15 employees as of December 31, 2021, compared to 21 employees as of December 31, 2020[57]. - Total staff costs for the year were approximately HK$6.6 million, down from approximately HK$12.3 million in the previous year[57]. - The Group's human resource management aims to reward well-performing staff with competitive remuneration and effective performance appraisal systems[75]. Shareholder Information - The Board has resolved not to recommend the declaration of a final dividend to shareholders for the year[63]. - The Company has adopted a Dividend Policy to allow shareholders to participate in profits while retaining adequate reserves for future growth[92]. - The Board considers various factors, including the general financial condition of the Group and future cash requirements, when deciding on dividend payments[92]. Directors and Management - The Directors' emoluments and details of the five highest paid individuals are disclosed in note 10 to the consolidated financial statements[99]. - The Directors who held office during the year included three executive directors and several independent non-executive directors[87]. - The Company has arranged appropriate insurance coverage for Directors' and officers' liabilities arising from corporate activities[113]. - The financial controller oversees the group's finance and accounts function, ensuring effective internal controls[198]. Major Customers and Suppliers - The largest customer accounted for 51.7% of total revenue in 2021, up from 40.3% in 2020[138]. - The five largest customers collectively represented 98.6% of total revenue in 2021, compared to 95.4% in 2020[138]. - Major customers, subcontractors, and suppliers' contributions to revenue and cost of services for the year are detailed but not quantified in the provided content[137].

Financial Performance - For the six months ended June 30, 2021, the Group recorded a net loss of approximately HK$10.0 million, compared to a net profit of approximately HK$11.0 million for the same period in 2020, indicating a significant decrease in profitability [19]. - The Group reported a net loss of approximately HK$10.0 million for the Review Period, compared to a net profit of approximately HK$11.0 million for the six months ended 30 June 2020, primarily due to increased overall construction costs and delays caused by the COVID-19 pandemic [22]. - Revenue decreased by approximately HK$145.1 million or approximately 70.0%, from approximately HK$207.4 million for the six months ended 30 June 2020 to approximately HK$62.3 million for the Review Period, mainly due to substantial completion of projects [26][28]. - The gross loss for the Review Period amounted to approximately HK$5.9 million, representing a decrease of approximately 133.0% compared to a gross profit of approximately HK$17.9 million for the six months ended 30 June 2020 [27][29]. - Total comprehensive loss for the period was HK$9,998, compared to a profit of HK$11,006 in the same period of 2020 [73]. Cost and Expenses - The significant increase in overall construction costs was identified as a primary reason for the decrease in net profit [19]. - The Group's gross profit margin is under pressure due to competitive project pricing, which affects overall financial performance [20]. - Other income decreased by 78.2% to approximately HK$52,000, down HK$186,000 from approximately HK$238,000 for the six months ended 30 June 2020, primarily due to reduced government subsidies and rental income [32][36]. - Administrative expenses decreased by approximately 3.8% to approximately HK$4.3 million, down from approximately HK$4.5 million for the six months ended 30 June 2020, mainly due to reduced professional and administrative staff costs [33][37]. - Finance costs increased by approximately 34.2% to approximately HK$216,000, compared to approximately HK$161,000 for the six months ended 30 June 2020, driven by increased interest on bank borrowings [34][38]. Business Strategy and Market Position - The Group plans to explore other business opportunities and expand its geographical coverage beyond the Hong Kong market to enhance future development and revenue bases [21]. - The Group aims to maintain its market share in the wet trades works industry by closely monitoring market conditions and responding accordingly [20]. - The Directors are confident in the Group's reputation and experienced management team to compete effectively in the market [20]. - The Group will continue to seek opportunities to expand its customer base and undertake more wet trades projects to enhance shareholder value [20]. - The Group aims to maintain its market share in the civil engineering sector by closely monitoring market conditions and responding to changes, while continuing to seek opportunities to expand its customer base and project portfolio [22]. Liquidity and Financial Position - The Group's liquidity position is closely monitored to ensure it meets funding requirements at all times [44]. - As of June 30, 2021, the Group's gearing ratio was approximately 11.6%, an increase from 7.8% as of December 31, 2020, primarily due to increased borrowings for working capital [47]. - The Group had approximately HK$6.2 million of net book value of leasehold land and buildings pledged for banking facilities as of June 30, 2021 [45]. - The Group's assets and liabilities are primarily denominated in Hong Kong dollars, minimizing foreign exchange risk [46]. - The Group's financial performance is being closely monitored in light of ongoing assessments of new accounting standards [118]. Employee and Operational Changes - The number of employees decreased to 18 as of June 30, 2021, down from 21 as of December 31, 2020 [56]. - Total staff costs for the Review Period amounted to approximately HK$4.8 million, a decrease from approximately HK$8.0 million for the six months ended June 30, 2020 [56]. - The Group's accrued expenses decreased to HK$1,011,000 as of June 30, 2021, from HK$1,892,000 as of December 31, 2020, reflecting a decline of approximately 46.61% [187]. - The Group's other payables were recorded at HK$1,240,000 as of June 30, 2021, down from HK$2,523,000 as of December 31, 2020 [187]. Revenue Recognition and Accounting Standards - The Group's revenue recognition practices are aligned with the performance obligations outlined in customer contracts, ensuring compliance with accounting standards [126]. - The Group is currently assessing the impact of new and amended Hong Kong Financial Reporting Standards (HKFRSs) but expects no material impact on its financial position [118]. - The adoption of new HKFRSs is unlikely to significantly affect the Group's results of operations and financial position according to the directors [121]. - The financial statements have been prepared in accordance with Hong Kong Accounting Standard 34, with no material impact from the adoption of new or amended HKFRSs [106]. Investments and Capital Management - The net proceeds from the listing were approximately HK$90.0 million, with approximately HK$70.8 million utilized for upfront costs for projects, a revision from the previously disclosed HK$39.9 million [63][64]. - The company made investments in financial assets at fair value through profit or loss amounting to HK$3,003,000 during the reporting period [94]. - The Group did not engage in any derivatives agreement or financial instruments to hedge foreign exchange exposure during the Review Period [46]. - The Group did not add any machinery and equipment during the six months ended June 30, 2021, while it had additions of HK$2,652,000 in the same period of 2020 [164].