Core Viewpoint - The company reported a decrease in revenue and profit for the first half of the fiscal year ending June 30, 2025, indicating potential challenges in its operational performance [1]. Financial Performance - The company achieved revenue of HKD 2.874 billion, representing a year-on-year decrease of 11.98% [1]. - The profit attributable to shareholders was HKD 80.8 million, which is a year-on-year decrease of 1.94% [1]. - Basic earnings per share were reported at HKD 0.06 [1]. Dividend Announcement - The company proposed an interim dividend of HKD 0.026 per share [1].

Core Viewpoint - Anle Engineering (01977) reported a decline in revenue and profit for the six months ending June 30, 2025, indicating challenges in its financial performance [1] Financial Performance - The company achieved revenue of HKD 2.874 billion, representing a year-on-year decrease of 11.98% [1] - Profit attributable to shareholders was HKD 80.8 million, down 1.94% compared to the previous year [1] - Basic earnings per share were HKD 0.06 [1] - The company proposed an interim dividend of HKD 0.026 per share [1]

EF001 | 其他信息 | | | --- | --- | | 其他信息 | 不適用 | | 發行人董事 | | | 於本公告日期，本公司執行董事為潘樂陶博士、麥建華博士、陳海明先生、鄭偉能先生及鄭偉強先生；本公司非執行董事為柯小菁 | | | 女士；及本公司獨立非執行董事為陳富強先生、林健鋒先生及盛慕嫻女士。 | | 第 2 頁 共 2 頁 v 1.1.1 第 1 頁 共 2 頁 v 1.1.1 EF001 免責聲明 | 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的內容概不負責，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 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的任何損失承擔任何責任。 | | | --- | --- | | 股票發行人現金股息公告 | | | 發行人名稱 | 安樂工程集團有限公司 | | 股份代號 | 01977 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 截至2025年6月30日止六個月中期股息 | | 公告日期 | 2025年8月29日 | | 公告狀態 | 新公告 | | 股息信息 | ...

Financial Highlights [Interim Results for the Six Months Ended June 30, 2025](index=1&type=section&id=Interim%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) The group announced unaudited interim results, reporting decreased revenue, improved gross margin, a slight profit decline attributable to owners, and an interim dividend Key Financial Data for H1 2025 | Metric | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,874.2 | 3,265.4 | -12.0% | | Gross profit | 484.3 | 477.7 | +1.4% | | Profit attributable to owners of the Company | 80.8 | 82.4 | -1.9% | | Basic EPS | 0.06 HKD | 0.06 HKD | 0% | | Interim Dividend (per share) | 2.60 HK cents | - | - | Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Group revenue decreased by 12.0%, gross profit slightly increased, and profit for the period decreased, while total comprehensive income significantly rose Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,874,220 | 3,265,383 | -12.0% | | Cost of sales and services | (2,389,963) | (2,787,685) | -14.3% | | Gross profit | 484,257 | 477,698 | +1.4% | | Other income | 8,683 | 12,260 | -29.2% | | Other gains and losses | (295) | (16,385) | +98.2% | | Administrative expenses | (365,280) | (360,896) | +1.2% | | Finance costs | (11,898) | (8,366) | +42.2% | | Profit before tax | 100,388 | 105,468 | -4.8% | | Profit for the period | 79,286 | 82,280 | -3.6% | | Total comprehensive income for the period | 95,398 | 62,581 | +52.4% | - Profit attributable to owners of the Company was **HK$80.811 million**, with loss attributable to non-controlling interests of **HK$1.525 million**[6](index=6&type=chunk) - Basic and diluted earnings per share remained flat at **6 HK cents**[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total equity increased, non-current liabilities significantly decreased, and net current assets slightly declined Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 1,493,738 | 1,500,584 | -0.5% | | Current assets | 3,764,355 | 3,699,448 | +1.8% | | Current liabilities | 2,714,581 | 2,632,556 | +3.1% | | Net current assets | 1,049,774 | 1,066,892 | -1.6% | | Total equity | 2,262,494 | 2,195,073 | +3.1% | | Non-current liabilities | 281,018 | 372,403 | -24.5% | - Bank balances and cash increased to **HK$1.1401 billion** (December 31, 2024: HK$1.0359 billion)[7](index=7&type=chunk) - Trade receivables increased to **HK$1.0227 billion** (December 31, 2024: HK$958.3 million), while contract assets decreased to **HK$1.3639 billion** (December 31, 2024: HK$1.4604 billion)[7](index=7&type=chunk) - Total bank borrowings (due within one year and after one year) decreased from **HK$574.2 million** as of December 31, 2024, to **HK$440.3 million** as of June 30, 2025[7](index=7&type=chunk)[8](index=8&type=chunk) Notes to the Condensed Consolidated Financial Statements [Basis of Preparation and Principal Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The interim financial statements are prepared under HKAS 34 and Listing Rules, applying consistent accounting policies with no significant impact from new HKFRS amendments - The condensed consolidated financial statements are prepared in accordance with **HKAS 34 Interim Financial Reporting** and the **Listing Rules**[9](index=9&type=chunk) - Accounting policies are consistent with those applied in the annual consolidated financial statements for the year ended **December 31, 2024**[10](index=10&type=chunk) - The application of amended HKFRS accounting standards, such as **HKAS 21 (Amendment) Lack of Exchangeability**, had no significant impact on the group's financial position or performance during this interim period[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) Group revenue decreased by 12.0% due to reduced contracting work, showing varied regional performance and a significant increase in remaining performance obligations Revenue Analysis by Product and Service | Revenue Category | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Contracting work | 2,208,154 | 2,585,340 | -14.6% | | Maintenance work | 616,872 | 614,741 | +0.3% | | Sales of goods | 49,194 | 65,302 | -24.7% | | **Total Revenue** | **2,874,220** | **3,265,383** | **-12.0%** | Revenue Analysis by Geographical Region | Region | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 2,644,186 | 2,795,938 | -5.4% | | Macau | 83,391 | 291,946 | -71.4% | | Mainland China | 68,220 | 110,284 | -38.1% | | United Kingdom | 74,496 | 63,657 | +17.0% | | United States | 356 | 37 | +862.2% | | Others | 3,571 | 3,521 | +1.4% | - As of June 30, 2025, the transaction price allocated to remaining performance obligations was **HK$13.085 billion**, an **18.4% increase** from HK$11.052 billion as of December 31, 2024, primarily from contracting and maintenance work[14](index=14&type=chunk) Total Revenue by Operating Segment | Segment | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Building Services Engineering | 1,564,933 | 2,111,348 | -25.9% | | Environmental Engineering | 717,048 | 620,588 | +15.5% | | ICBT | 303,225 | 294,570 | +2.9% | | Lifts and Escalators | 289,014 | 238,877 | +21.0% | | **Total** | **2,874,220** | **3,265,383** | **-12.0%** | Segment Profit by Operating Segment | Segment | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Building Services Engineering | 31,984 | 68,616 | -53.4% | | Environmental Engineering | 52,538 | 35,406 | +48.4% | | ICBT | 17,764 | 12,247 | +45.0% | | Lifts and Escalators | 19,797 | 17,587 | +12.6% | | **Total Segment Profit** | **122,083** | **133,856** | **-8.8%** | [Revenue by Category and Geographical

董事會召開日期 安樂工程集團有限公司（「本公司」）之董事會（「董事會」）宣佈，本公司將於 2025 年 8 月 29 日（星期五）舉行董事會會議，藉以（其中包括）考慮及批准刊發本公 司及其附屬公司截至 2025 年 6 月 30 日止六個月之中期業績，以及考慮派發中期股息 （如有）。 承董事會命 安樂工程集團有限公司 主席 麥建華博士 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的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不會對因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 香港， 2025年8月19日 於本公告日期，本公司執行董事為潘樂陶博士、麥建華博士、陳海明先生、鄭偉能先 生和鄭偉強先生；本公司非執行董事為柯小菁女士及本公司獨立非執行董事為陳富強 先生、林健鋒先生和盛慕嫻女士 。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 安樂工程集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01977 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 100,000,000,000 | HKD | | 0.01 | HKD | | 1,000,000,00 ...

Group 1 - The stock price of Anle Engineering (01977.HK) closed at HKD 0.750 on April 28, reflecting a 2.74% increase from the previous trading day, although it reached a one-year low of HKD 0.720 during the day [1] - The net capital flow for Anle Engineering on that day showed an inflow of HKD 38,480 and an outflow of HKD 198,180, resulting in a net outflow of HKD 159,700 [1] Group 2 - Anle Engineering Group Limited, established in 1977, is a major provider of electrical and mechanical engineering and technical services, headquartered in Hong Kong, with operations in Macau, mainland China, the United States, and the United Kingdom [2] - The company offers a wide range of electronic engineering and technology services to both public and private sector clients, including construction services, environmental engineering, information and communication technology, and elevator and escalator services [2] - Anle Engineering has evolved from a trading business in electrical and mechanical products to a service provider, offering comprehensive design, engineering, supply, construction, operation, and maintenance services [2] - The company has undertaken significant projects such as the Hong Kong-Zhuhai-Macao Bridge engineering services and the world's largest chemical-enhanced primary wastewater treatment plant [2] - Anle Engineering's competitive advantage lies in its ability to collaborate across disciplines and departments, providing innovative solutions while adhering to high quality, safety, and environmental standards [2] - Sustainability is central to the company's operations, focusing on developing systems and services that provide clean water, save energy, and utilize cutting-edge technology in infrastructure systems [2]

Financial Performance - The company reported a revenue of HKD 6,450.1 million for the fiscal year 2024, an increase from HKD 6,132.9 million in 2023, representing a growth of approximately 5.2%[28]. - Gross profit for the fiscal year 2024 was HKD 1,002.3 million, up from HKD 833.3 million in 2023, resulting in a gross margin of 15.5%[4][28]. - The profit attributable to the company's owners decreased to HKD 135.3 million in 2024 from HKD 251.5 million in 2023, reflecting a decline of about 46.3%[28]. - The cash and bank balance as of December 31, 2024, was HKD 1.0359 billion, compared to HKD 906.4 million in fiscal year 2023, enabling the company to undertake more projects and seize new market opportunities[60]. - The group recorded a net loss of HKD 28.9 million for the fiscal year 2024, compared to a net income of HKD 128.4 million in fiscal year 2023, primarily due to impairment losses and lack of one-time gains recognized in the previous year[88]. - The group's adjusted profit attributable to the company's owners for fiscal year 2024 was approximately HKD 206 million, reflecting a 10.2% increase compared to the adjusted profit for fiscal year 2023[79]. Strategic Initiatives - The company is focusing on three strategic pillars: "New Technology," "New Markets," and "New Business Models" to strengthen its industry-leading position[50]. - The company is actively developing new technologies, including AI, IoT, and digital solutions for energy optimization, as part of its strategy to become a leader in emerging industries[61]. - The company is committed to investing in the Hong Kong market, leveraging its unique advantages to explore significant market opportunities[54]. - The company aims to drive diversified business development while optimizing core operations in response to market trends[54]. - The company is exploring potential investments and collaborations to enter new markets in East Asia, Southeast Asia, Central Asia, the Middle East, and other regions[109]. Technology and Innovation - The establishment of the "MiMEP Design and Construction Center" and "MiMEP R&D Center" in Zhuhai aims to enhance the company's leadership in MiMEP technology[14]. - The company has achieved over 50% application of MiMEP, DfMA, and BIM technologies in its building services engineering projects[21]. - The AlgoWater technology has saved 47% in chemical usage for water and wastewater treatment facilities, showcasing the company's commitment to innovation in environmental engineering[23]. - The application of MiMEP in a commercial development project reached 85%, marking the highest level for commercial buildings[74]. - The company is developing a direct liquid cooling technology solution for AI data centers to meet increasing data computation demands[75]. Operational Efficiency - The newly established headquarters enhances operational efficiency and collaboration among business units, supporting the development of innovative construction technologies[60]. - The company maintains a strong operational cash level and has successfully implemented multiple high-value projects, ensuring stable core operational performance[50]. - The company has trained over 1,100 engineering talents through its graduate trainee and technician apprentice programs over the past 40 years[53]. - The group has been involved in various significant projects, including the design, construction, testing, and commissioning of wastewater treatment plants[132]. - The environmental engineering division is responsible for project management and execution, including design, procurement, construction, installation, testing, and maintenance[158]. Corporate Governance - The company has adopted the Corporate Governance Code as a benchmark for its governance practices and has complied with all applicable code provisions during the reporting year[165][166]. - The company ensures that at least one-third of the board consists of independent non-executive directors, in compliance with listing rules[173]. - The company has implemented mechanisms to ensure the board receives independent views and opinions, including the appointment of independent non-executive directors to various committees[173]. - The company’s governance practices include annual assessments of the independence of all independent non-executive directors[173]. - The company has established a process for the appointment of new directors, which includes a thorough review by the nomination committee before recommendations are made to the board[179]. Human Resources and Development - The group employed 3,149 staff as of December 31, 2024, an increase from 3,010 in the previous year, highlighting a focus on talent development[103]. - A total of 569 internal training sessions were conducted in 2024, accumulating over 38,500 training hours, emphasizing the group's commitment to employee development[104]. - The company has received multiple awards at the "Excellence in Human Resource Management Awards 2023/24," including a silver award for the Trainee Management Program, showcasing its recognition in HR practices[106]. - The company is committed to maintaining a diverse workforce and providing a friendly working environment for female employees and minority groups[111]. - The company aims to improve gender diversity at the board level, with a target to appoint at least one female director by December 31, 2024, and has already appointed two new female directors in 2023[181]. Market Position and Growth - The company has seen robust revenue growth in its international business through its brand Anlev, promoting quality products and services globally[51]. - The company is expanding its elevator and escalator business in the UK and the US, with its US joint venture turning from loss to profit and expanding its market coverage beyond New York[108]. - The environmental engineering segment's order value increased to HKD 1.514 billion as of December 31, 2024, more than doubling from HKD 730 million as of December 31, 2023, with significant contracts won for climate adaptation and environmental infrastructure[65]. - The company is actively pursuing new business opportunities in mechanical lifting, automated transport, and storage systems[158]. - The company is focused on continuous improvement and innovation to enhance its core advantages and operational performance[108].

Financial Performance - The company's revenue for the fiscal year ending December 31, 2024, was HKD 6,450.1 million, representing an increase of 5.2% from HKD 6,132.9 million in 2023[3]. - Gross profit for the same period was HKD 1,002.3 million, up 20.3% from HKD 833.3 million in 2023[3]. - Profit attributable to owners of the company decreased to HKD 135.3 million, down 46.3% from HKD 251.5 million in 2023[3]. - Basic earnings per share for 2024 was HKD 0.10, compared to HKD 0.18 in 2023, reflecting a decline of 44.4%[3]. - Total comprehensive income for the year was HKD 110.2 million, down 54.9% from HKD 244.3 million in 2023[5]. - The company's total assets as of December 31, 2024, were HKD 3,699.4 million, slightly down from HKD 3,721.4 million in 2023[7]. - The company's equity attributable to owners increased to HKD 2,193.7 million from HKD 2,126.4 million in 2023, reflecting a growth of 3.2%[8]. - The group reported a total segment profit of HKD 221,830,000 for the year ended December 31, 2024[27]. - The net profit for the year ended December 31, 2024, was HKD 133,888,000, compared to the previous year's profit[27]. - The company reported a net profit of HKD 251,406,000 for the year, compared to HKD 262,619,000 in the previous year, reflecting a decrease of 4.2%[33]. Revenue Breakdown - Revenue from contracting works was HKD 5,080,980,000 in 2024, up from HKD 4,926,890,000 in 2023, representing a growth of 3.1%[22]. - Maintenance works revenue increased to HKD 1,230,123,000 in 2024 from HKD 1,069,811,000 in 2023, reflecting a growth of 15.0%[22]. - Revenue from Hong Kong increased to HKD 5,492,957,000, up 7.2% from HKD 5,123,788,000 in 2023[33]. - Revenue from mainland China decreased to HKD 214,936,000, down 43% from HKD 376,476,000 in 2023[33]. - Revenue from maintenance engineering for fiscal year 2024 was HKD 1.2301 billion, accounting for 19.0% of total revenue, reflecting a 1.5% increase from fiscal year 2023[83]. Dividends - The company declared a second interim dividend of HKD 0.02 per share, totaling approximately HKD 28 million, bringing the total dividend for the year to HKD 0.0438 per share[3]. - The company declared an interim dividend of HKD 0.02 per share for the year 2024, totaling approximately HKD 27,977,000, compared to HKD 0.01 per share totaling HKD 13,863,000 for the year 2023[40]. - The company plans to pay a second interim dividend of HKD 0.02 per share for the year ending December 31, 2024, expected to be distributed around April 29, 2025[112]. Assets and Liabilities - Current liabilities decreased to HKD 2,632.6 million from HKD 2,730.1 million in 2023, indicating improved liquidity[7]. - The total current assets for 2024 were HKD 3,699.4 million, slightly down from HKD 3,721.4 million in 2023[101]. - The total current liabilities decreased to HKD 2,632.6 million in 2024 from HKD 2,730.1 million in 2023[101]. - The total value of pledged assets increased to HKD 968,108,000 in 2024 from HKD 853,999,000 in 2023, with significant increases in investment properties[55]. - The total amount of mortgaged assets as of December 31, 2024, was HKD 968.1 million, compared to HKD 854.0 million as of December 31, 2023[98]. Financial Standards and Compliance - The company has applied the revised Hong Kong Financial Reporting Standards (HKFRS) for the first time this year, which became mandatory on January 1, 2024, without significant impact on the financial position and performance[10]. - The company has not early adopted any new or revised HKFRS that have been issued but are not yet effective, including HKFRS 9 and HKFRS 7 revisions[15]. - The application of the revised HKFRS 9 is expected to clarify the recognition and derecognition of financial assets and liabilities, with no significant impact anticipated on the group's financial condition[18]. - The revised standards aim to improve the clarity and consistency of financial reporting, ensuring better alignment with international standards[14]. - The company has adopted the principles and code provisions of the Corporate Governance Code as its corporate governance standard, ensuring compliance as of December 31, 2024[115]. Operational Developments - The company is actively developing new technologies, including AI, IoT, and energy optimization digital solutions, to position itself as a leader in emerging industries[63]. - The newly established headquarters features a design and R&D center aimed at advancing new construction technologies, including MiMEP and BIM, enhancing productivity and sustainability[62]. - The company is actively expanding its services globally, targeting projects in the Philippines and Dubai[68]. - The company has established a dedicated business unit to expand its environmental engineering and other services into new markets, including the Philippines, Dubai, and Europe[110]. - The company is expanding its elevator and escalator business in the UK and the US, with its US subsidiary turning a profit and expanding its market coverage beyond New York[109]. Employee and Training - The company employed 3,149 staff as of December 31, 2024, an increase from 3,010 staff in 2023[102]. - The company provided a total of 569 internal training sessions in 2024, totaling over 38,500 hours of training[103]. Market Position and Future Outlook - The company has achieved significant growth in order volume and bidding activities, indicating a solid foundation for future business development[108]. - The company plans to prudently seek suitable new business and investment opportunities, aiming to fully utilize the net proceeds from the global offering by December 31, 2025[93]. - The company expects that the application of the new standards will not have a significant impact on its financial statements in the foreseeable future[16].

[Company Profile](index=1&type=section&id=%E5%85%B3%E4%BA%8E%E5%AE%89%E4%B9%90%E5%B7%A5%E7%A8%8B%E9%9B%86%E5%9B%A2%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8) ATAL Engineering Group, established in 1977, is a leading MEP engineering and technology services provider with diverse operations across Hong Kong, Macau, mainland China, the US, and the UK - The company, established in 1977, is a leading MEP engineering and technology services provider[1](index=1&type=chunk) - Business covers Building Services, Environmental, ICBT, and Lifts & Escalators segments[1](index=1&type=chunk) - Operations span Hong Kong, Macau, mainland China, the US, and the UK[1](index=1&type=chunk) [Financial Highlights](index=3&type=section&id=%E8%B4%A2%E5%8A%A1%E6%A6%82%E8%A6%81) Group revenue increased by 14.9% to HKD 3.2654 billion, but profit attributable to owners significantly decreased to HKD 82.4 million due to one-off gains in the prior period Financial Highlights for the Six Months Ended June 30 | Metric | 2024 (HKD Million) | 2023 (HKD Million) | | :------------------- | :----------------- | :----------------- | | Revenue | 3,265.4 | 2,841.1 | | Gross Profit | 477.7 | 453.8 | | Profit Attributable to Owners | 82.4 | 237.5 | | Basic Earnings Per Share | HKD 0.06 | HKD 0.17 | - Board resolved to pay an interim dividend of **HKD 2.38 cents per share**, totaling approximately **HKD 33 million** for the six months ended June 30, 2024[3](index=3&type=chunk) [Chairman's Statement](index=5&type=section&id=%E4%B8%BB%E5%B8%AD%E6%8A%A5%E5%91%8A) The Chairman's Statement highlights the Group's leadership in MEP engineering, innovation in AI-driven digital twin technology, green business, and new market expansion - Group achieved significant market share in Building Services and Environmental Engineering, with advantages in data centers and infrastructure[4](index=4&type=chunk) - Continuous R&D investment focuses on AI-driven digital twin technology for energy efficiency, building operations, ESG performance, water treatment automation, and critical facility O&M[5](index=5&type=chunk) - New headquarters, ATAL Engineering Tower, commenced operations in July 2024, enhancing service capabilities and employee productivity[7](index=7&type=chunk) - Will continue to identify projects supporting new market development and expand overseas business[5](index=5&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section details the Group's H1 2024 business performance, financial position, segment progress, strategic priorities, and future outlook, showing robust revenue growth despite profit fluctuations from one-off factors [Interim Business Review](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) H1 2024 revenue grew 14.9% to HKD 3.2654 billion, driven by data center and infrastructure projects, with adjusted profit attributable to owners at HKD 67.2 million and total contracts on hand of HKD 11.7043 billion Key Financial Indicators for H1 2024 | Metric | Amount (HKD) | | :------------------- | :---------- | | Revenue | 3.2654 billion | | Profit Attributable to Owners | 82.4 million | | Gross Profit Margin | 14.6% | | Total Contract Value on Hand | 11.7043 billion | - Revenue increased by **14.9% year-on-year**, driven by data center, medical, building, and infrastructure projects, and contributions from a UK lifts company acquisition[7](index=7&type=chunk) - Adjusted profit attributable to owners was **HKD 67.2 million**, comparable to HKD 74.7 million in the prior period, mainly due to project phasing differences[7](index=7&type=chunk) - Group focuses R&D investment and business development on innovative construction technologies (MiMEP, DfMA, BIM), smart solutions (AI-driven digital twin, energy management, renewable energy, ESG management, robotics), and new environmental technologies[9](index=9&type=chunk) [Segment Performance](index=8&type=section&id=%E4%B8%9A%E5%8A%A1%E6%9D%BF%E5%9D%97%E8%A1%A8%E7%8E%B0) All business segments showed significant progress in H1 2024, with strong revenue growth in Building Services, new projects in Environmental, key roles for ICBT in smart city transformation, and overseas expansion benefiting Lifts and Escalators [Building Services Engineering](index=8&type=section&id=%E5%B1%8B%E5%AE%87%E8%A3%9D%E5%82%99%E5%B7%A5%E7%A8%8B) Building Services Engineering revenue grew 20.8% to HKD 2.111 billion, with a contract value on hand of HKD 5.585 billion, driven by new projects and continued investment in MiMEP and BIM technologies Building Services Engineering Performance | Metric | H1 2024 (HKD Million) | H1 2023 (HKD Million) | Change Rate | | :--------------- | :------------------ | :------------------ | :---------- | | Revenue | 2,111 | 1,748 | +20.8% | | Contract Value on Hand | 5,585 | 6,150 | -9.19% | | New Contracts Awarded | 1,881 | 2,461 | -23.5% | | Recurring M&E Revenue | 205 | 184 | +11.3% | - Recently secured new MEP engineering service projects, including a Grade A office building in Causeway Bay utilizing MiMEP and a large-scale project in Macau[12](index=12&type=chunk) - Continued investment in BIM and MiMEP technologies, with a new MiMEP facility in mainland China to enhance productivity, safety, and quality[12](index=12&type=chunk) [Environmental Engineering](index=9&type=section&id=%E7%8E%AF%E5%A2%83%E5%B7%A5%E7%A8%8B) Environmental Engineering revenue remained stable at HKD 621 million, with HKD 4.514 billion in contracts on hand, securing new projects in flood prevention and wastewater treatment while expanding into overseas markets Environmental Engineering Performance | Metric | H1 2024 (HKD Million) | H1 2023 (HKD Million) | | :----------------- | :------------------ | :------------------ | | Revenue | 621 | 623 | | Contract Value on Hand | 4,514 | 4,599 | - Awarded significant engineering contracts for Yuen Long flood barriers and a new leachate wastewater treatment plant at Tuen Mun Nim Wan Landfill[13](index=13&type=chunk) - Implementing climate solutions, clean water, waste, and wastewater treatment technologies, including AI-driven digital twin technology to extend facility lifecycles[13](index=13&type=chunk) - Participating in engineering tender activities in overseas regions such as the Philippines and Dubai[13](index=13&type=chunk) [Information, Communications and Building Technology (ICBT)](index=10&type=section&id=%E8%B3%87%E8%A8%8A%E3%80%81%E9%80%9A%E8%A訊%E5%8F%8A%E5%B1%8B%E5%AE%87%E7%A7%91%E6%8A%80(ICBT)) ICBT revenue was HKD 295 million, with HKD 938 million in contracts on hand, playing a key role in smart city transformation by providing AI-driven green and smart building solutions ICBT Segment Performance | Metric | H1 2024 (HKD Million) | H1 2023 (HKD Million) | | :----------------- | :------------------ | :------------------ | | Revenue | 295 | 311 | | Contract Value on Hand | 938 | 941 | - Provides AI-driven digital twin technology, energy management, renewable energy, robotics solutions, and smart lampposts for green and smart building solutions[14](index=14&type=chunk) - Secured contracts for an AI video analytics CCTV system for a shopping mall in Southern Hong Kong Island and ELV equipment and building management systems for a residential project in Tseung Kwan O[14](index=14&type=chunk) [Lifts and Escalators](index=10&type=section&id=%E5%8D%87%E9%99%8D%E6%A9%9F%E5%8F%8A%E8%87%AA%E5%8B%95%E6%A2%AF) Lifts and Escalators revenue surged 49.4% to HKD 239 million, driven by overseas projects and acquisitions, with US associate business turning profitable despite brand impairment losses Lifts and Escalators Segment Performance | Metric | H1 2024 (HKD Million) | H1 2023 (HKD Million) | Change Rate | | :----------------- | :------------------ | :------------------ | :---------- | | Revenue | 239 | 160 | +49.4% | | Contracts on Hand | 667 | 586 | +13.8% | - US associate business turned profitable due to higher gross margins and a one-off net insurance claim income, partially offset by post-tax brand impairment losses[16](index=16&type=chunk)[28](index=28&type=chunk) - Anlev brand received "Star of Safety" for 46 consecutive quarters and five "Stars of Quality" from the Hong Kong Electrical and Mechanical Services Department[16](index=16&type=chunk) [Innovation, Resource Management and Other Operating Projects](index=11&type=section&id=%E5%89%B5%E6%96%B0%E3%80%81%E8%B3%87%E6%BA%90%E7%AE%A1%E7%90%86%E5%8F%8A%E5%85%B6%E4%BB%96%E7%B6%93%E7%87%9F%E9%A0%85%E7%9B%AE) The Group fosters an innovation culture, developing AI and robotics solutions, and successfully applying BIM, DfMA, and MiMEP in over 50% of Building Services projects - Established Smart Data Automation (SDA) business development unit to service O&M for critical facilities like water treatment plants, sewage treatment plants, and data centers[17](index=17&type=chunk) - Over **50% of Building Services Engineering projects** successfully applied BIM, DfMA, and MiMEP technologies, enhancing efficiency, quality, and safety[17](index=17&type=chunk) - Developed wastewater treatment system "AMSFS III" won the "Hong Kong Green Innovation Award," demonstrating commitment to green innovation[17](index=17&type=chunk) [Impact of COVID-19 Pandemic](index=11&type=section&id=%E6%96%B0%E5%86%A0%E7%96%AB%E6%83%85%E5%BD%B1%E9%9F%BF) The Group capitalizes on economic recovery and border reopening between Hong Kong and mainland China, leveraging talent from the Greater Bay Area to support business expansion - Global economic recovery and full border reopening between Hong Kong and mainland China present development opportunities for the Group[18](index=18&type=chunk)[19](index=19&type=chunk) - Leveraging Greater Bay Area talent to address Hong Kong's human resource market challenges and support core business expansion[19](index=19&type=chunk) [Financial Review](index=12&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) H1 2024 revenue grew 14.9% to HKD 3.2654 billion, but profit attributable to owners decreased significantly to HKD 82.4 million due to one-off gains in the prior period, while administrative expenses increased and cash levels remained strong H1 2024 Financial Performance | Metric | H1 2024 (HKD Million) | H1 2023 (HKD Million) | Change Rate | | :------------------- | :------------------ | :------------------ | :---------- | | Revenue | 3,265.4 | 2,841.1 | +14.9% | | Gross Profit | 477.7 | 453.8 | +5.3% | | Gross Profit Margin | 14.6% | 16.0% | -1.4% | | Profit Attributable to Owners | 82.4 | 237.5 | -65.3% | | Adjusted Profit Attributable to Owners | 67.2 | 74.7 | -10.0% | | Administrative Expenses | 360.9 | 318.3 | +13.4% | | Cash and Bank Balances | 1,147.3 | 906.4 (End of 2023) | +26.6% | - Profit attributable to owners was impacted by a one-off net insurance claim income of **HKD 15.2 million** from a US associate and one-off dilution gain of **HKD 124.1 million** and gain on disposal of an associate's interest of **HKD 38.7 million** in the prior period[20](index=20&type=chunk)[26](index=26&type=chunk)[28](index=28&type=chunk) - Share of results of associates increased by **HKD 7.8 million**, mainly due to the US associate turning profitable, partially offset by brand impairment losses[28](index=28&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) The Group maintains a robust liquidity position with HKD 1.1473 billion in cash and bank balances, and total bank borrowings of HKD 519.5 million, supported by ample committed bank facilities Liquidity Position | Metric | June 30, 2024 (HKD Million) | Dec 31, 2023 (HKD Million) | Change Rate | | :----------------- | :------------------------ | :----------------------- | :---------- | | Cash and Bank Balances | 1,147.3 | 906.4 | +26.6% | | Total Bank Borrowings | 519.5 | 320.0 | +62.3% | | Committed Bank Facilities | 2,704.7 | 2,673.4 | +1.2% | | Utilized Bank Facilities | 1,251.4 | 949.8 | +31.7% | - Bank borrowings are primarily denominated in HKD and RMB, bear floating interest rates, and are mostly due within five years[29](index=29&type=chunk) [Exchange Rate Risk](index=14&type=section&id=%E6%B1%87%E5%85%91%E9%A3%8E%E9%99%A9) The Group's exchange rate risk is not significant, as it primarily operates in Hong Kong, Macau, mainland China, and the UK, with currency risk closely monitored and hedged - Group's primary business regions are Hong Kong, Macau, mainland China, and the UK, resulting in non-significant exchange rate risk[30](index=30&type=chunk) - Currency risk is closely monitored through exchange rate fluctuation reviews, and foreign currency transactions are hedged with forward exchange contracts[30](index=30&type=chunk) [Use of Proceeds from Share Listing](index=14&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%B9%E7%94%A8%E9%80%94) Of the HKD 335.7 million net proceeds from the 2019 global offering, HKD 59.8 million remains unutilized for acquisitions or investments, with full utilization expected by December 31, 2025 Use of Proceeds from Share Listing and Balance | Category of Use | Original Net Proceeds Allocated (HKD Million) | Unutilized Net Proceeds as of Dec 31, 2023 (HKD Million) | Unutilized Net Proceeds as of June 30, 2024 (HKD Million) | | :----------------------- | :---------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Support Building Services Engineering | 67.1 | – | – | | Enhance Environmental Engineering | 100.7 | – | – | | Enhance ICBT Business | 67.1 | – | – | | Expand Lifts and Escalators Business | 67.1 | – | – | | Acquisitions or Investments | – | 59.8 | 59.8 | | General Working Capital | 33.7 | – | – | | **Total** | **335.7** | **59.8** | **59.8** | - Unutilized net proceeds are delayed due to macroeconomic and geopolitical uncertainties, leading management to prudently seek business acquisition and investment opportunities[31](index=31&type=chunk) - Full utilization of net proceeds is expected by December 31, 2025, with no change in the proposed use[31](index=31&type=chunk) [Future Plans for Material Investments or Capital Assets](index=15&type=section&id=%E6%9C%89%E5%85%B3%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E6%88%96%E8%B5%84%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E6%9D%A5%E8%AE%A1%E5%88%92) As of the report date, the Group has no specific future plans for material investments or capital assets but will continue to actively seek suitable business and investment opportunities - No specific future plans for material investments or capital assets as of the report date[33](index=33&type=chunk) - Group will continue to seek suitable new business and investment opportunities[33](index=33&type=chunk) [Material Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures](index=16&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) No material acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the reporting period - No material acquisition or disposal activities during the reporting period[34](index=34&type=chunk) [Gearing Ratio and Debt](index=16&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E6%AF%94%E7%8E%87%E5%8F%8A%E5%80%B5%E5%8B%99) The Group's gearing ratio increased to 23.9% as of June 30, 2024, from 15.1% at year-end 2023, primarily due to the drawdown of revitalization and short-term green loans Gearing Ratio | Metric | June 30, 2024 | Dec 31, 2023 | | :----------- | :------------ | :----------- | | Gearing Ratio | 23.9% | 15.1% | - Gearing ratio increased mainly due to the drawdown of revitalization loans and short-term green loans[35](index=35&type=chunk) [Pledge of the Group's Assets](index=16&type=section&id=%E6%9C%AC%E9%9B%86%E5%9B%A2%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2024, the Group pledged assets totaling HKD 938.9 million as security for bank financing, mortgage loans, and revitalization loans for ATAL Engineering Tower Total Pledged Assets | Metric | June 30, 2024 (HKD Million) | Dec 31, 2023 (HKD Million) | | :--------------- | :------------------------ | :----------------------- | | Total Pledged Assets | 938.9 | 854.0 | - Pledged assets primarily secure general short-term bank financing, mortgage loans, and revitalization loans for ATAL Engineering Tower[36](index=36&type=chunk) [Capital Commitments](index=16&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2024, the Group's contracted but unprovided capital commitments totaled HKD 26.9 million, mainly for the revitalization of ATAL Engineering Tower and expansion of Nanjing production facilities Capital Commitments | Purpose | June 30, 2024 (HKD Million) | | :------------------------------------ | :------------------------ | | Revitalization of ATAL Engineering Tower and related plant and equipment | 24.6 | | Expansion of Nanjing Production Facilities | 2.3 | | **Total** | **26.9** | [Contingent Liabilities](index=16&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%80%B5) As of June 30, 2024, the Group had outstanding performance guarantees of approximately HKD 596.6 million and has made adequate provisions for potential losses from ongoing litigation Contingent Liabilities | Metric | June 30, 2024 (HKD Million) | Dec 31, 2023 (HKD Million) | | :--------------------- | :------------------------ | :----------------------- | | Outstanding Performance Guarantees | 596.6 | 586.6 | - Group has made adequate provisions for potential losses from pending litigation[38](index=38&type=chunk) [Events After Reporting Period](index=16&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) No material events occurred after the reporting period up to the date of this report - No material events occurred after the reporting period[39](index=39&type=chunk) [Human Resources](index=17&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B5%84%E6%BA%90) As of June 30, 2024, the Group employed 2,725 staff, providing extensive training and fostering talent development, while also enhancing workplace safety through smart systems Human Resources Overview | Metric | June 30, 2024 | June 30, 2023 | | :----------------- | :------------ | :------------ | | Number of Employees | 2,725 | 2,701 | | Internal Training Courses | 252 | - | | Total Training Hours | 21,000+ hours | - | - Cultivated over **1,100 young engineers and technicians** and successfully applied to establish new professional training categories in control, automation, instrumentation, and electronics[40](index=40&type=chunk) - Developed "Smart Site Safety System Working Group" applying AI and IoT technologies to enhance site safety and efficiency, including smart safety harness systems and welding robots[40](index=40&type=chunk) - Received multiple accolades at the "HR Excellence Awards 2023/24," including "Management Trainee Programme Award – Silver," "Learning & Development Award – Bronze," and "Talent Acquisition Award – Bronze"[41](index=41&type=chunk) [Outlook](index=18&type=section&id=%E5%B1%95%E6%9C%9B) The Group is optimistic about its business prospects, driven by a substantial contract backlog, leadership in growth sectors, and strategic investments in advanced technologies and market expansion - Hong Kong's overall construction volume is projected to reach approximately **HKD 300 billion annually by 2031-2032**, with government capital expenditure of about **HKD 90.2 billion in 2024-2025**, presenting significant opportunities[42](index=42&type=chunk) - Investments in advanced technologies like BIM, MiC, MiMEP, robotics solutions, AI, IoT, and big data analytics will enhance productivity, efficiency, safety, and project quality[42](index=42&type=chunk) - Will continue to explore suitable and synergistic business opportunities, including expanding into East Asia, Southeast Asia, the Middle East, and other regions when appropriate[43](index=43&type=chunk) - Strong liquidity, low gearing, and robust recurring cash flow ensure financial flexibility for new projects and long-term strategic planning[43](index=43&type=chunk) [Review Report on Condensed Consolidated Financial Statements](index=19&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E5%AE%A1%E9%98%85%E6%8A%A5%E5%91%8A) Deloitte Touche Tohmatsu reviewed the Group's condensed consolidated financial statements for H1 2024, concluding no material non-compliance with HKAS 34 - External auditor Deloitte Touche Tohmatsu reviewed the condensed consolidated financial statements[44](index=44&type=chunk) - Auditor concluded no matters suggesting the condensed consolidated financial statements were not prepared in all material respects in accordance with HKAS 34[45](index=45&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the Group's H1 2024 financial performance, with profit for the period significantly decreasing to HKD 82.28 million from HKD 237.5 million in the prior year Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :------------------- | :--------------------- | :--------------------- | | Revenue | 3,265,383 | 2,841,055 | | Cost of Sales and Services | (2,787,685) | (2,387,255) | | Gross Profit | 477,698 | 453,800 | | Other Income | 12,260 | 11,929 | | Other Gains and Losses | (16,385) | 144,546 | | Administrative Expenses | (360,896) | (318,304) | | Share of Results of Associates | 53 | (7,797) | | Finance Costs | (8,366) | (5,318) | | Profit Before Tax | 105,468 | 267,462 | | Income Tax Expense | (23,188) | (29,942) | | Profit for the Period | 82,280 | 237,520 | - Profit for the period significantly decreased, mainly due to other gains and losses turning from a net gain of **HKD 144.5 million** in the prior period to a net loss of **HKD 16.4 million** in the current period[45](index=45&type=chunk)[67](index=67&type=chunk) [Condensed Consolidated Statement of Financial Position](index=19&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) This statement outlines the Group's financial position as of June 30, 2024, with total assets less current liabilities at HKD 2.5655 billion and total equity at HKD 2.1804 billion, reflecting increases in property, plant, and equipment Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :----------------------- | :--------------------- | :---------------------- | | Non-current Assets | 1,462,913 | 1,417,963 | | Current Assets | 3,882,484 | 3,721,387 | | Current Liabilities | 2,779,927 | 2,730,119 | | Net Current Assets | 1,102,557 | 991,268 | | Total Assets Less Current Liabilities | 2,565,470 | 2,409,231 | | Total Equity | 2,180,400 | 2,129,162 | | Non-current Liabilities | 385,070 | 280,069 | - Property, plant and equipment increased from **HKD 851.1 million to HKD 925.5 million**, mainly related to the revitalization of ATAL Engineering Tower[46](index=46&type=chunk)[85](index=85&type=chunk) - Bank borrowings (non-current liabilities) increased from **HKD 248.8 million to HKD 347.9 million**, reflecting the drawdown of revitalization loans[47](index=47&type=chunk)[21](index=21&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=21&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) This statement details changes in equity components for H1 2024, with total comprehensive income for the period at HKD 62.581 million and profit attributable to owners at HKD 82.409 million Summary of Condensed Consolidated Statement of Changes in Equity | Metric | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :----------------------- | :--------------------- | :--------------------- | | Profit for the Period | 82,280 | 237,520 | | Other Comprehensive Expense for the Period (net of tax) | (19,699) | (22,857) | | Total Comprehensive Income for the Period | 62,581 | 214,663 | | Profit Attributable to Owners of the Company for the Period | 82,409 | 237,520 | | Total Comprehensive Income Attributable to Owners of the Company | 62,734 | 214,663 | - Total comprehensive income for the period was **HKD 62.581 million**, a significant decrease from **HKD 214.7 million** in the prior period[48](index=48&type=chunk) - Other comprehensive expenses primarily included a property revaluation loss of **HKD 2.217 million** and exchange differences on translation of overseas operations of **HKD 17.749 million**[45](index=45&type=chunk)[48](index=48&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=22&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement presents the Group's H1 2024 cash flows, with net cash from operating activities significantly improving to HKD 206.1 million, while investment activities resulted in a net outflow of HKD 112.2 million Summary of Condensed Consolidated Statement of Cash Flows | Metric | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :----------------------- | :--------------------- | :--------------------- | | Net Cash From/(Used In) Operating Activities | 206,130 | (76,308) | | Net Cash (Used In)/From Investing Activities | (112,200) | 38,398 | | Net Cash From/(Used In) Financing Activities | 155,900 | (97,044) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 249,830 | (134,954) | | Cash and Cash Equivalents at End of Period | 1,147,345 | 835,139 | - Operating cash flow improved from a net outflow to a net inflow, reflecting enhanced operational efficiency[50](index=50&type=chunk) - Net cash outflow from investing activities increased, primarily due to additions to property, plant and equipment of **HKD 105.1 million**, largely related to ATAL Engineering Tower revitalization[50](index=50&type=chunk)[85](index=85&type=chunk) - Net cash inflow from financing activities was **HKD 155.9 million**, mainly from new bank borrowings of **HKD 238.7 million**[51](index=51&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=24&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section provides detailed notes to the condensed consolidated financial statements, offering in-depth information on accounting policies, revenue, expenses, balance sheet items, equity, financial instruments, and related party transactions [Basis of Preparation](index=26&type=section&id=%E7%BC%96%E8%A3%BD%E5%9F%BA%E5%87%86) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, measured on a historical cost basis with certain exceptions - Financial statements are prepared in accordance with HKAS 34 and the Listing Rules[55](index=55&type=chunk) - Historical cost basis is applied, with certain properties and financial instruments measured at revalued amounts or fair value[55](index=55&type=chunk) [Principal Accounting Policies](index=26&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) Accounting policies and calculation methods for this interim period are consistent with the annual consolidated financial statements for the year ended December 31, 2023 - Accounting policies applied in this interim period are consistent with the 2023 annual consolidated financial statements[55](index=55&type=chunk) - Initial application of revised HKFRSs had no material impact on the financial position and performance for the current and prior periods[55](index=55&type=chunk) [Revenue and Segment Information](index=27&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%9D%BF%E5%9D%97%E8%B5%84%E6%96%99) Group revenue primarily derives from contract works, maintenance, and goods sales, totaling HKD 3.2654 billion in H1 2024, with Hong Kong as the main source and Building Services Engineering as the largest segment Revenue Sources and Geographical Distribution | Revenue Category | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--------------- | :--------------------- | :--------------------- | | Contract Works | 2,585,340 | 2,219,660 | | Maintenance Works | 614,741 | 565,122 | | Sales of Goods | 65,302 | 56,273 | | **Total Revenue** | **3,265,383** | **2,841,055** | | **Geographical Distribution** | | | | Hong Kong | 2,795,938 | 2,459,875 | | Macau | 291,946 | 221,971 | | Mainland China | 110,284 | 152,024 | | United Kingdom | 63,657 | 5,303 | | United States | 37 | 18 | | Others | 3,521 | 1,864 | Revenue by Business Segment | Business Segment | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :----------------------- | :--------------------- | :--------------------- | | Building Services Engineering | 2,111,348 | 1,747,968 | | Environmental Engineering | 620,588 | 622,524 | | ICBT | 294,570 | 310,918 | | Lifts and Escalators | 238,877 | 159,645 | - Total transaction price allocated to remaining performance obligations amounted to **HKD 11.7043 billion** as of June 30, 2024[60](index=60&type=chunk) [Other Income and Gains/(Losses)](index=32&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E4%BA%8F%E6%8D%9F) In H1 2024, the Group recorded a net loss of HKD 16.4 million from other income and gains/(losses), a significant shift from a net gain of HKD 144.5 million in the prior period due to one-off gains in 2023 Composition of Other Income and Gains/(Losses) | Item | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--------------------------------- | :--------------------- | :--------------------- | | Gain on disposal of interest in an associate | – | 38,725 | | Impairment loss on interest in an associate | (12,645) | (19,000) | | Deemed gain on dilution of interest in an associate | – | 124,125 | | Net exchange losses | (3,457) | (2,177) | | Fair value change loss on investment properties | (220) | – | | **Total** | **(16,385)** | **144,546** | - No one-off gains from private placement by an associate and disposal of interest in the prior period were recognized in the current period[26](index=26&type=chunk)[67](index=67&type=chunk) [Finance Costs](index=32&type=section&id=%E8%B4%A2%E5%8A%A1%E6%88%90%E6%9C%AC) Finance costs increased by 57.3% to HKD 8.366 million in H1 2024, primarily driven by higher interest expenses on bank borrowings Composition of Finance Costs | Item | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--------------- | :--------------------- | :--------------------- | | Interest expense on bank borrowings | 5,998 | 2,251 | | Interest on lease liabilities | 1,063 | 1,712 | | Ancillary costs for bank financing | 1,305 | 1,355 | | **Total** | **8,366** | **5,318** | - Interest expense on bank borrowings increased from **HKD 2.251 million to HKD 5.998 million**, being the primary driver of finance cost growth[69](index=69&type=chunk) [Income Tax Expense](index=33&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased to HKD 23.188 million in H1 2024, with Hong Kong profits tax calculated under a two-tiered system and varying rates for Macau and mainland China Composition of Income Tax Expense | Item | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--------------- | :--------------------- | :--------------------- | | Current tax | 23,601 | 32,023 | | Underprovision in prior years | (100) | 46 | | Deferred tax | (313) | (2,127) | | **Total** | **23,188** | **29,942** | - Hong Kong profits tax applies a two-tiered system, with the first **HKD 2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[70](index=70&type=chunk) - Mainland China subsidiaries are subject to a **25% corporate income tax rate**, with high-tech enterprises enjoying a **15% preferential tax rate until 2024**[71](index=71&type=chunk) [Profit for the Period](index=34&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period is derived after deducting various expenses, with staff costs totaling HKD 738.3 million in H1 2024, representing a 12.4% increase year-on-year Deductions from Profit for the Period | Item | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :----------------------- | :--------------------- | :--------------------- | | Staff costs | 738,321 | 656,723 | | Cost of inventories recognized as expense | 140,083 | 129,517 | | Amortization of intangible assets | 301 | – | | Depreciation of property, plant and equipment | 10,760 | 12,042 | | Depreciation of right-of-use assets | 22,776 | 19,611 | | Write-down of inventories, net | 3,378 | 3,774 | | Fair value change loss on derivative financial instruments | 2,547 | (1,155) | | Auditor's remuneration | 3,043 | 2,755 | - Staff costs (including directors' emoluments) increased by **12.4%** from **HKD 656.7 million to HKD 738.3 million**[76](index=76&type=chunk) [Dividends](index=35&type=section&id=%E8%82%A1%E6%81%AF) The Board declared an interim dividend of HKD 2.38 cents per share, totaling approximately HKD 32.993 million, payable around September 27, 2024 - Board declared an interim dividend of **HKD 2.38 cents per share**, totaling approximately **HKD 32.993 million**[80](index=80&type=chunk) - Interim dividend will be paid on or about September 27, 2024, with shares trading ex-dividend from September 11, 2024[80](index=80&type=chunk)[121](index=121&type=chunk) [Earnings Per Share](index=35&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share for H1 2024 were both HKD 6 cents, lower than HKD 17 cents in the prior period, with weighted average ordinary shares adjusted for the share award scheme Earnings Per Share | Metric | H1 2024 (HK Cents) | H1 2023 (HK Cents) | | :----------- | :----------------- | :----------------- | | Basic EPS | 6 | 17 | | Diluted EPS | 6 | 17 | Weighted Average Number of Ordinary Shares | Metric | H1 2024 | H1 2023 | | :----------------------- | :------------ | :------------ | | Weighted average number of ordinary shares for basic EPS | 1,386,528,000 | 1,395,438,000 | | Weighted average number of ordinary shares for diluted EPS | 1,399,148,220 | 1,395,438,000 | - For diluted EPS calculation, the effect of certain company award shares was assumed, with no other dilutive potential ordinary shares[81](index=81&type=chunk) [Investment Properties](index=36&type=section&id=%E6%8A%95%E8%B5%84%E7%89%A9%E4%B8%9A) As of June 30, 2024, investment properties had a fair value of HKD 4.26 million, a decrease from HKD 4.48 million due to fair value change losses, and are pledged as security for bank financing Fair Value of Investment Properties | Metric | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :--------------- | :--------------------- | :---------------------- | | Fair Value | 4,260 | 4,480 | | Fair Value Change | (220) | (240) | - Fair value of investment properties was assessed by independent professional valuer JLL Limited using the direct comparison method[82](index=82&type=chunk) - Investment properties are pledged as security for general bank financing of certain subsidiaries of the Company[83](index=83&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=37&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E4%BB%A5%E5%8F%8A%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) In H1 2024, the Group invested HKD 87.997 million in property, plant, and equipment, primarily for the revitalization of ATAL Engineering Tower, and recognized HKD 13.826 million in new right-of-use assets - Additions to property, plant and equipment amounted to **HKD 87.997 million**, with **HKD 78.849 million** related to the revitalization of ATAL Engineering Tower[85](index=85&type=chunk) - Bank interest expenses of **HKD 1.431 million** for ATAL Engineering Tower were capitalized as construction in progress[85](index=85&type=chunk) - New lease agreements resulted in the recognition of right-of-use assets of approximately **HKD 13.826 million**[85](index=85&type=chunk) [Interests in Associates / Amounts Due from an Associate](index=37&type=section&id=%E6%96%BC%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%AC%8A%E7%9B%8A%E2%81%84%E6%87%89%E6%94%B6%E4%B8%80%E9%96%93%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%AC%BE%E9%A0%85) As of June 30, 2024, interests in associates totaled HKD 457.9 million, with impairment losses recognized for TEI due to unfavorable US market conditions, and HKD 118.4 million due from OBJV Interests in Associates | Metric | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :------------------- | :--------------------- | :---------------------- | | Cost of Investment | 332,657 | 332,657 | | Impairment Losses Recognized | (137,245) | (124,600) | | Share of Post-Acquisition Profit and Other Comprehensive Income | 262,473 | 275,999 | | **Interests in Associates** | **457,885** | **484,056** | - Impairment assessment of TEI's interest resulted in a goodwill impairment loss of **HKD 12.645 million** and a post-tax brand impairment loss of **HKD 18.921 million**, primarily due to lower-than-expected financial performance from unfavorable US market conditions[88](index=88&type=chunk) - Amount due from OBJV was **HKD 118.4 million**, which is interest-free, non-trade in nature, unsecured, and repayable on demand[88](index=88&type=chunk) [Contract Assets](index=39&type=section&id=%E5%90%88%E7%BA%A6%E8%B3%87%E7%94%A2) As of June 30, 2024, net contract assets were HKD 1.2944 billion, a decrease from HKD 1.3467 billion, including HKD 511.7 million in retention receivables, with expected credit loss provisions made Contract Assets | Metric | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :----------------- | :--------------------- | :---------------------- | | Contract Assets | 1,316,657 | 1,368,359 | | Less: Provision for Credit Losses | (22,221) | (21,646) | | **Net** | **1,294,436** | **1,346,713** | - Contract assets include approximately **HKD 511.7 million** in retention receivables, typically settled after the warranty period expires[91](index=91&type=chunk) - Provisions for expected credit losses have been made in accordance with HKFRS 9[91](index=91&type=chunk) [Trade Receivables](index=39&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2024, net trade receivables were HKD 1.1753 billion, stable compared to year-end 2023, including HKD 161.9 million in unbilled revenue, with credit periods of 14 to 90 days Trade Receivables | Metric | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :------------------- | :--------------------- | :---------------------- | | Trade Receivables | 1,074,481 | 1,068,590 | | Less: Provision for Credit Losses | (62,405) | (65,504) | | Unbilled Revenue | 161,930 | 173,732 | | Bills Receivable | 1,264 | 1,400 | | **Total** | **1,175,270** | **1,178,218** | Ageing Analysis of Trade Receivables (Net of Credit Loss Provision) | Ageing | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :------------- | :--------------------- | :---------------------- | | 0 to 30 days | 610,367 | 533,985 | | 31 to 90 days | 236,227 | 355,195 | | 91 to 360 days | 163,909 | 113,249 | | Over 1 year | 1,573 | 657 | | **Total** | **1,012,076** | **1,003,086** | - Provisions for expected credit losses have been made in accordance with HKFRS 9, with impairment provisions of **HKD 17.273 million** recognized and **HKD 12.16 million** reversed in the current period[95](index=95&type=chunk) [Trade Payables and Retention Payables](index=41&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E4%BB%98%E4%BF%9D%E8%AF%81%E9%87%91) As of June 30, 2024, total trade payables and retention payables decreased to HKD 644.2 million from HKD 775.6 million at year-end 2023, with trade payables having credit periods of 0 to 90 days Trade Payables and Retention Payables | Item | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :--------------- | :--------------------- | :---------------------- | | Trade Payables | 415,923 | 537,801 | | Trade Payables (Unbilled) | 41,124 | 52,099 | | Retention Payables | 187,190 | 185,741 | | **Total** | **644,237** | **775,641** | Ageing Analysis of Trade Payables | Ageing | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :------------- | :--------------------- | :---------------------- | | 0 to 30 days | 206,480 | 273,155 | | 31 to 90 days | 142,290 | 202,301 | | 91 to 360 days | 41,137 | 39,037 | | Over 1 year | 26,016 | 23,308 | | **Total** | **415,923** | **537,801** | [Other Payables and Accruals](index=41&type=section&id=%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E8%AE%A1%E5%BC%80%E6%94%AF) As of June 30, 2024, other payables and accruals increased to HKD 1.826 billion, primarily comprising accrued contract costs of HKD 1.4693 billion and accrued staff costs of HKD 143 million, with litigation provision maintained Other Payables and Accruals | Item | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :--------------- | :--------------------- | :---------------------- | | Accrued Contract Costs | 1,469,251 | 1,379,053 | | Accrued Staff Costs | 143,029 | 129,708 | | Provision for Litigation Liabilities | 150,000 | 150,000 | | Liabilities for Additional Interest in an Associate | 3,204 | – | | Others | 60,514 | 84,813 | | **Total** | **1,825,998** | **1,743,574** | - Provision for litigation liabilities remained at **HKD 150 million**, related to a cooperation agreement with the Hong Kong Competition Commission in November 2022[98](index=98&type=chunk) [Bank Borrowings](index=42&type=section&id=%E9%93%B6%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2024, total bank borrowings significantly increased to HKD 519.5 million, with HKD 171.6 million due within one year and HKD 347.9 million due after one year, secured by various assets Composition of Bank Borrowings | Item | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :--------------- | :--------------------- | :---------------------- | | Secured floating-rate bank loans | 266,638 | 274,271 | | Secured fixed-rate bank loans | 100,000 | – | | Unsecured floating-rate bank loans | 152,761 | 45,535 | | Unsecured fixed-rate bank loans | 105 | 240 | | **Total** | **519,504** | **320,046** | | Due within one year | (171,638) | (71,280) | | Due after one year | 347,866 | 248,766 | - Bank borrowings bear effective interest rates ranging from **2.50% to 6.58%**[101](index=101&type=chunk) - Secured bank borrowings are pledged against ATAL Engineering Tower, Nanjing properties, rental income, and assets of certain wholly-owned subsidiaries and trade receivables[101](index=101&type=chunk) [Share Capital](index=43&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2024, the Company's authorized share capital was 100 billion ordinary shares of HKD 0.01 each, with 1.4 billion issued and fully paid shares, totaling HKD 14 million Share Capital Overview | Metric | Number of Shares | Par Value | Share Capital (HKD Thousand) | | :------------- | :-------------------- | :-------- | :--------------------------- | | Authorized Share Capital | 100,000,000,000 | HKD 0.01 | 1,000,000 | | Issued and Fully Paid Share Capital | 1,400,000,000 | HKD 0.01 | 14,000 | - In April 2024, the Company repurchased **430,000 of its own ordinary shares** for a total consideration of **HKD 451,000**[102](index=102&type=chunk) - As of June 30, 2024, the trustee held **13.72 million of the Company's own ordinary shares**[104](index=104&type=chunk) [Share-based Payments](index=43&type=section&id=%E4%BB%A5%E8%82%A1%E4%BB%BD%E4%B8%BA%E5%9F%BA%E7%A1%80%E7%9A%84%E4%BB%98%E6%AC%BE) The Group's share award scheme aims to reward participants, with 12.56 million unvested award shares whose vesting date has been postponed to December 23, 2024, and no options granted under the share option scheme Unvested Award Shares under Share Award Scheme | Grantee/Category | Unvested Awards as of Jan 1, 2024 | Forfeited/Lapsed during the Period | Unvested Awards as of June 30, 2024 | | :--------------- | :-------------------------------- | :--------------------------------- | :---------------------------------- | | Directors | 5,920,000 | – | 5,920,000 | | Employees | 7,240,000 | (600,000) | 6,640,000 | | **Total** | **13,160,000** | **(600,000)** | **12,560,000** | - **12.56 million award shares** remain unvested, with their vesting date postponed from June 30, 2024, to December 23, 2024[107](index=107&type=chunk)[137](index=137&type=chunk) - No share options have been granted under the share option scheme since its effective date of July 12, 2019, with no outstanding options at period-end[109](index=109&type=chunk)[137](index=137&type=chunk) [Pledge of Assets](index=45&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of the reporting period end, the Group had pledged assets totaling HKD 943.558 million as security for bank borrowings and general bank financing, including properties, investment properties, and bank deposits Pledged Assets | Item | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :--------------- | :--------------------- | :---------------------- | | Properties | 872,414 | 791,345 | | Investment Properties | 4,260 | 4,480 | | Bank Deposits | 26,260 | 22,698 | | Others | 40,624 | 35,476 | | **Total** | **943,558** | **853,999** | - Other pledged assets include certain trade receivables and fixed and floating charges over all assets of certain wholly-owned subsidiaries[110](index=110&type=chunk) [Fair Value Measurement of Financial Instruments](index=46&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E8%AE%A1%E9%87%8F) The Group's derivative financial instruments are measured at fair value on a recurring basis, classified as Level 2, with fair values estimated using discounted cash flow models Fair Value of Derivative Financial Instruments | Metric | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :----------------------- | :--------------------- | :---------------------- | | Derivative Financial (Liabilities)/Assets | (1,079) | 1,468 | - Fair value measurement of derivative financial instruments uses discounted cash flow valuation techniques and is classified as Level 2[111](index=111&type=chunk) - Carrying amounts of other financial assets and liabilities recorded at amortized cost approximate their fair values[113](index=113&type=chunk) [Performance Guarantees](index=46&type=section&id=%E5%B1%A5%E7%BA%A6%E4%BF%9D%E8%AF%81) As of June 30, 2024, the Group had outstanding performance guarantees of approximately HKD 596.6 million, issued by banks to customers as security for contract obligations Outstanding Performance Guarantees | Metric | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :----------------------- | :--------------------- | :-------------------- | | Outstanding Performance Guarantees | 596,639 | 586,620 | - Performance guarantees are issued by banks to customers as security for the Group's due performance of contractual obligations[114](index=114&type=chunk) [Related Party Transactions](index=47&type=section&id=%E5%85%B3%E8%BF%9E%E6%96%B9%E4%BA%A4%E6%98%93) The Group engaged in various related party transactions, including sales with associates OBJV and TEI, and lease liability repayments and expense recharges with Perfect Motive Summary of Related Party Transactions | Related Company Name | Relationship | Nature of Transaction | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :------------------- | :----------- | :-------------------- | :--------------------- | :--------------------- | | OBJV | Associate | Sales | 3,409 | 1,604 | | Perfect Motive | Related Party | Repayment of Lease Liabilities | 7,956 | 7,956 | | Perfect Motive | Related Party | Recharge of Direct Expenses | 273 | 280 | | TEI | Associate | Sales | 37 | 40 | - Lease liabilities related to Perfect Motive amounted to **HKD 5.222 million** as of June 30, 2024[117](index=117&type=chunk) - Emoluments of key management personnel (directors) are disclosed in Note 7 (Profit for the Period)[118](index=118&type=chunk) [Capital Commitments](index=47&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of the reporting period end, the Group's contracted but unprovided capital commitments totaled HKD 26.896 million, primarily for the revitalization of ATAL Engineering Tower and expansion of Nanjing production facilities Composition of Capital Commitments | Purpose | June 30, 2024 (HKD Thousand) | Dec 31, 2023 (HKD Thousand) | | :------------------------------------ | :--------------------- | :---------------------- | | Expansion of Existing Production Facilities | 2,334 | 4,470 | | Revitalization of ATAL Engineering Tower | 17,807 | 92,044 | | Plant and Equipment for ATAL Engineering Tower | 6,755 | – | | **Total** | **26,896** | **96,514** | [Interim Dividend](index=48&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board declared an interim dividend of HKD 2.38 cents per share, totaling approximately HKD 32.993 million, with shares trading ex-dividend from September 11, 2024 - Board declared an interim dividend of **HKD 2.38 cents per share**, totaling approximately **HKD 32.993 million**[120](index=120&type=chunk) - Share register will be closed from September 13 to September 16, 2024, to determine dividend entitlement, with shares trading ex-dividend from September 11, 2024[121](index=121&type=chunk) [Other Information](index=49&type=section&id=%E5%85%B6%E4%BB%96%E8%B5%84%E6%96%99) This section covers the Group's international sanctions compliance, interim results review, corporate governance, directors' securities transactions, director updates, and share interests [International Sanctions](index=49&type=section&id=%E5%9B%BD%E9%99%85%E5%88%B6%E8%A3%81) The Group conducted no transactions with sanctioned individuals or entities during the reporting period and maintains measures to ensure compliance and monitor sanction risks - No transactions with individuals or entities subject to international sanctions during the reporting period[123](index=123&type=chunk) - Risk Management Committee (Sanctions Risk) meets at least twice annually to monitor sanction risks and establish written procedures[123](index=123&type=chunk) [Review of Interim Results](index=49&type=section&id=%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9) The Company's Audit Committee reviewed the unaudited condensed consolidated interim financial statements for H1 2024 with management and external auditor Deloitte Touche Tohmatsu - Audit Committee reviewed the interim financial statements and discussed financial matters with management and external auditor[124](index=124&type=chunk) - External auditor Deloitte Touche Tohmatsu reviewed the financial statements in accordance with Hong Kong Standard on Review Engagements 2410[124](index=124&type=chunk) [Compliance with Corporate Governance Code](index=50&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The Company is committed to high corporate governance standards and complied with all code provisions of the Corporate Governance Code during the reporting period - Company adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[125](index=125&type=chunk) - Company complied with all code provisions of the Corporate Governance Code during the reporting period[125](index=125&type=chunk) [Directors' Securities Transactions](index=50&type=section&id=%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) All directors confirmed compliance with the Securities Dealing Code, except for Dr. Poon Lok To, who inadvertently sold 2,332,000 shares without prior dealing confirmation - Company's Securities Dealing Code is no less exacting than the Model Code[126](index=126&type=chunk) - Dr. Poon Lok To, Founder and Executive Director, inadvertently sold **2,332,000 shares** without prior dealing confirmation, constituting a breach of the Securities Dealing Code[126](index=126&type=chunk) - Dr. Poon has provided a written undertaking to comply with all requirements in the future[126](index=126&type=chunk) [Update on Directors' Information](index=50&type=section&id=%E8%91%A3%E4%BA%8B%E8%B5%84%E6%96%99%E6%9B%B4%E6%96%B0) Mr. Lam Kin Fung was appointed as an independent non-executive director of Goldin Financial Holdings Limited, and the monthly salaries of Mr. Chan Hoi Ming, Mr. Cheng Wai Lun, and Mr. Cheng Wai Keung increased from April 1, 2024 - Mr. Lam Kin Fung was appointed as an independent non-executive director of Goldin Financial Holdings Limited[127](index=127&type=chunk) Directors' Remuneration Adjustment | Director Name | New Monthly Remuneration (HKD) | Effective Date | | :----------------- | :----------------------------- | :---------------- | | Mr. Chan Hoi Ming | 215,250 | April 1, 2024 | | Mr. Cheng Wai Lun | 174,900 | April 1, 2024 | | Mr. Cheng Wai Keung | 195,000 | April 1, 2024 | [Directors' Interests in Securities](index=51&type=section&id=%E8%91%A3%E4%BA%8B%E4%BA%8E%E8%AF%81%E5%88%B8%E7%9A%84%E6%9D%83%E7%9B%8A) As of June 30, 2024, Dr. Poon Lok To held approximately 65.77% of the Company's shares through a discretionary trust and beneficial ownership, with other directors also holding shares and related interests Directors' Interests in the Company's Shares | Director Name | Capacity/Nature of Interest | Number of Shares Held | Number of Related Shares Held | Approximate Percentage of Shareholding | | :----------------- | :------------------------ | :-------------------- | :---------------------------- | :------------------------------------- | | Dr. Poon | Founder of Discretionary Trust | 888,650,000 | – | 63.48% | | Dr. Poon | Beneficial Owner | 32,198,000 | – | 2.29% | | Mr. Chan Hoi Ming | Beneficial Owner | 4,200,000 | 5,600,000 | 0.30% / 0.40% | | Mr. Cheng Wai Lun | Beneficial Owner | 244,500 | 320,000 | 0.02% / 0.02% | - Dr. Poon holds **63.48%** of the Company's shares through Arling Investment Limited and **2.29%** as a beneficial owner[130](index=130&type=chunk) - Related shares held by Mr. Chan Hoi Ming and Mr. Cheng Wai Lun are unvested award shares granted under the Share Award Scheme[130](index=130&type=chunk) [Substantial Shareholders / Other Persons' Interests in Securities](index=53&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E2%81%84%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E4%BA%8E%E8%AF%81%E5%88%B8%E7%9A%84%E6%9D%83%E7%9B%8A) As of June 30, 2024, substantial shareholders include HSBC International Trustee Limited, Ardik Investment Limited, and Arling Investment Limited, each holding approximately 63.48% of the Company's shares, with Ms. Teresa Cheng and Mr. David Michael Webb also holding significant interests Substantial Shareholders' Interests in Shares | Name/Company | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :------------------------- | :------------------------ | :-------------------- | :------------------------------------- | | HSBC International Trustee Limited | Founder of Discretionary Trust | 888,650,000 | 63.48% | | Ardik Investment Limited | Interest of Controlled Corporation | 888,650,000 | 63.48% | | Arling Investment Limited | Beneficial Owner | 888,650,000 | 63.48% | | Ms. Teresa Cheng | Spouse's Interest | 920,848,000 | 65.77% | Other Persons' Interests in Shares | Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :----------------------- | :------------------------ | :-------------------- | :------------------------------------- | | Mr. Webb David Michael | Interest of Controlled Corporation | 112,084,000 | 8.00% | - Ms. Teresa Cheng is deemed to be interested in the Company's shares under the SFO due to her spouse, Dr. Poon's, interests[135](index=135&type=chunk) [Share Option Scheme and Share Award Scheme](index=54&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83%E5%8F%8A%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) The share option scheme has not granted any options since its inception, while the share award scheme saw 600,000 awards lapse and the vesting date for 12.56 million awards postponed to December