丰城控股(02295)发布截至2025年6月30日止6个月业绩，该集团期内取得收益1.31亿港元，同比增加 54.91%;公司权益持有人应占溢利369.6万港元，同比增加121.18%;每股基本盈利0.92港仙。 ...

[Disclaimer](index=1&type=section&id=Disclaimer) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the accuracy or completeness of this announcement - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for the accuracy or completeness of this announcement [1](index=1&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported significant revenue and profit growth for the six months ended June 30, 2025, with a notable increase in earnings per share Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 131,400 | 84,800 | 46,600 | 54.9% | | Gross Profit | 7,900 | 5,900 | 2,000 | 34.3% | | Profit and Total Comprehensive Income | 3,700 | 1,700 | 2,000 | 121.2% | | Basic and Diluted Earnings Per Share | 0.92 HK cents | 0.42 HK cents | 0.50 HK cents | 119.0% | - Revenue significantly increased primarily due to a rise in both larger public projects (with revenue of **HK$10.0 million** or more) and smaller projects (with revenue between **HK$1.0 million** and **HK$5.0 million**) [2](index=2&type=chunk) - Gross profit margin decreased from approximately **6.9%** to approximately **6.0%**, mainly due to a slight increase in service costs from increased subcontracting costs for two major public projects completed at period-end [3](index=3&type=chunk) - The Board does not recommend an interim dividend for the six months ended June 30, 2025 [4](index=4&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company saw significant growth in revenue and gross profit, leading to a substantial increase in profit and total comprehensive income, with a corresponding rise in earnings per share Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 131,357 | 84,794 | | Cost of Services | (123,499) | (78,942) | | **Gross Profit** | **7,858** | **5,852** | | Other Income, Gains and Losses | 859 | 811 | | Administrative Expenses | (4,825) | (4,539) | | Finance Costs | (30) | (32) | | **Profit Before Income Tax** | **3,862** | **2,092** | | Income Tax Expense | (166) | (421) | | **Profit and Total Comprehensive Income for the Period Attributable to Owners of the Company** | **3,696** | **1,671** | | Basic and Diluted Earnings Per Share | 0.92 HK cents | 0.42 HK cents | [Unaudited Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, non-current assets significantly increased due to a rise in bonds receivable, while net current assets and total assets less current liabilities also grew, indicating a robust net asset position Unaudited Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 6,209 | 8,256 | | Bonds Receivable | 40,000 | – | | **Total Non-current Assets** | **46,209** | **8,256** | | **Current Assets** | | | | Trade and Other Receivables | 5,234 | 25,341 | | Contract Assets | 22,626 | 13,860 | | Current Tax Recoverable | 1,001 | 1,095 | | Cash and Bank Balances | 70,411 | 63,365 | | **Total Current Assets** | **99,272** | **103,661** | | **Current Liabilities** | | | | Trade and Other Payables | 17,071 | 24,753 | | Contract Liabilities | 1,038 | 3,136 | | Lease Liabilities | 638 | 843 | | **Total Current Liabilities** | **18,747** | **28,732** | | **Net Current Assets** | **80,525** | **74,929** | | **Total Assets Less Current Liabilities** | **126,734** | **83,185** | | **Non-current Liabilities** | | | | Lease Liabilities | 53 | 272 | | Long Service Payment Obligations | 293 | 293 | | Deferred Tax Liabilities | 867 | 795 | | Bonds | 40,000 | – | | **Total Non-current Liabilities** | **41,213** | **1,360** | | **Net Assets** | **85,521** | **81,825** | | **Equity** | | | | Share Capital | 4,000 | 4,000 | | Reserves | 81,521 | 77,825 | | **Equity Attributable to Owners of the Company** | **85,521** | **81,825** | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity increased due to the profit and total comprehensive income for the period, while share capital remained unchanged Unaudited Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | | Share Capital (HK$ thousand) | Share Premium (HK$ thousand) | Capital Reserve (HK$ thousand) | Retained Earnings (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2024 (Audited) | 4,000 | 50,084 | 1 | 88,995 | 143,080 | | Dividends Paid | – | – | – | (70,000) | (70,000) | | Profit and Total Comprehensive Income for the Period | – | – | – | 1,671 | 1,671 | | **As at June 30, 2024 (Unaudited)** | **4,000** | **50,084** | **1** | **20,666** | **74,751** | | As at January 1, 2025 (Audited) | 4,000 | 50,084 | 1 | 27,740 | 81,825 | | Profit and Total Comprehensive Income for the Period | – | – | – | 3,696 | 3,696 | | **As at June 30, 2025 (Unaudited)** | **4,000** | **50,084** | **1** | **31,436** | **85,521** | [Unaudited Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities decreased, cash flow from investing activities shifted from outflow to inflow, and net cash used in financing activities significantly reduced, resulting in a substantial increase in cash and cash equivalents at period-end Unaudited Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Source of Cash Flow | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 6,840 | 10,041 | | Net Cash From/(Used In) Investing Activities | 662 | (2,747) | | Net Cash Used In Financing Activities | (456) | (70,333) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 7,046 | (63,039) | | Cash and Cash Equivalents at Beginning of Period | 63,365 | 114,555 | | Cash and Cash Equivalents at End of Period | 70,411 | 51,516 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering general information, basis of preparation, revenue, and other financial details [1. General Information](index=6&type=section&id=1.%20General%20Information) Fung Shing Holdings Limited, incorporated in the Cayman Islands and listed on the HKEX Main Board, primarily engages in slope works in Hong Kong, jointly controlled by Mr. Tse Shing Kee and Mr. Ho Ka Ki - The company was incorporated in the Cayman Islands on January 30, 2019, listed on GEM on December 13, 2019, and transferred to the Main Board on December 31, 2021 [10](index=10&type=chunk) - The Group primarily engages in slope works in Hong Kong [11](index=11&type=chunk) - The company's direct and ultimate holding company is Peak Investment Limited, with Mr. Tse Shing Kee and Mr. Ho Ka Ki as ultimate controlling shareholders [11](index=11&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The interim financial report is prepared in accordance with HKAS 34 and Listing Rules, using the historical cost convention, with new HKFRSs effective January 1, 2025, having no significant impact - This interim financial report is prepared in accordance with applicable disclosure provisions of the Listing Rules, including compliance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA [12](index=12&type=chunk) - The interim financial report is prepared based on accounting policies adopted in the Group's annual financial statements for the year ended December 31, 2024, with the adoption of new and revised HKFRSs effective January 1, 2025 [15](index=15&type=chunk) - The adoption of these new and revised HKFRSs has no significant impact on the results and financial position of the current and prior periods presented [15](index=15&type=chunk) [3. Revenue](index=8&type=section&id=3.%20Revenue) The Group's revenue primarily derives from providing slope works, with a 54.9% year-on-year increase for the six months ended June 30, 2025, mainly driven by public projects - Revenue represents income from providing slope works to external customers, recognized over time by the Group [18](index=18&type=chunk) Revenue Composition (For the six months ended June 30) | Project Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Public Projects | 125,428 | 79,271 | | Private Projects | 5,929 | 5,523 | | **Total** | **131,357** | **84,794** | [4. Other Income, Gains and Losses](index=8&type=section&id=4.%20Other%20Income,%20Gains%20and%20Losses) For the six months ended June 30, 2025, other income, gains, and losses slightly increased, primarily due to higher gains from the disposal of property, plant, and equipment offsetting reduced bank interest income Other Income, Gains and Losses (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank Interest Income | 665 | 814 | | Gains/(Losses) on Disposal of Property, Plant and Equipment | 192 | (3) | | Miscellaneous Income | 2 | – | | **Total** | **859** | **811** | [5. Finance Costs](index=8&type=section&id=5.%20Finance%20Costs) The Group's finance costs, primarily from lease liabilities, slightly decreased for the six months ended June 30, 2025 Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 30 | 32 | [6. Profit Before Income Tax](index=9&type=section&id=6.%20Profit%20Before%20Income%20Tax) Profit before income tax is primarily influenced by staff costs, including directors' emoluments, salaries, wages, other benefits, and contributions to defined contribution retirement plans, as well as depreciation Staff Costs (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Directors' Emoluments | 2,209 | 1,765 | | Salaries, Wages and Other Benefits | 25,173 | 19,270 | | Contributions to Defined Contribution Retirement Plans | 1,060 | 810 | | **Total** | **28,442** | **21,845** | Depreciation (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cost of Services - Owned Assets | 1,838 | 1,561 | | Cost of Services - Right-of-use Assets | 399 | 249 | | Administrative Expenses - Owned Assets | 7 | 10 | | Administrative Expenses - Right-of-use Assets | – | 130 | | **Total** | **2,244** | **1,950** | [7. Income Tax Expense](index=9&type=section&id=7.%20Income%20Tax%20Expense) The Group's income tax expense, mainly Hong Kong profits tax provision calculated under the two-tiered profits tax regime, decreased for the six months ended June 30, 2025, primarily due to reduced deferred tax expense Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax | 94 | – | | Deferred Tax | 72 | 421 | | **Total** | **166** | **421** | - Under the two-tiered profits tax regime, qualifying corporations pay tax at **8.25%** on the first **HK$2 million** of profits and **16.5%** on profits exceeding **HK$2 million** [24](index=24&type=chunk) [8. Earnings Per Share](index=10&type=section&id=8.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were 0.92 HK cents, a significant increase from the prior year, with no potential dilutive ordinary shares Earnings Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for Basic Earnings Per Share (Profit for the Period) (HK$ thousand) | 3,696 | 1,671 | | Weighted Average Number of Ordinary Shares for Basic Earnings Per Share (thousand shares) | 400,000 | 400,000 | | **Basic and Diluted Earnings Per Share** | **0.92 HK cents** | **0.42 HK cents** | - There were no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, thus diluted earnings per share equal basic earnings per share [25](index=25&type=chunk) [9. Dividends](index=10&type=section&id=9.%20Dividends) The Board does not recommend an interim dividend for the period ended June 30, 2025, but a special dividend of 17.5 HK cents per share was paid in 2024 - The Board does not recommend an interim dividend for the period ended June 30, 2025 (six months ended June 30, 2024: nil HK cents) [26](index=26&type=chunk) - On January 19, 2024, the Board recommended a special dividend of **17.5 HK cents** per ordinary share, totaling **HK$70,000,000**, which was paid on February 16, 2024 [26](index=26&type=chunk) [10. Property, Plant and Equipment](index=10&type=section&id=10.%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's capital expenditure on the acquisition of property, plant, and equipment significantly decreased - For the six months ended June 30, 2025, the Group acquired items of property, plant and equipment of approximately **HK$0.2 million** (six months ended June 30, 2024: HK$3.4 million) [27](index=27&type=chunk) [11. Bonds Receivable and Bonds](index=10&type=section&id=11.%20Bonds%20Receivable%20and%20Bonds) The Group issued bonds totaling HK$40,000,000 with a one-year term and 8% coupon rate, with net proceeds intended to support strategic entry into China's industrial park management sector, leading to the establishment of a Chinese subsidiary in Ganzhou, Jiangxi - Bonds receivable refer to bonds with a principal amount of **HK$40,000,000**, a one-year term, and an **8%** coupon rate, subscribed by two independent private investors and issued by Jinling Capital Holdings Limited, a subsidiary of the Group [28](index=28&type=chunk) - The net proceeds from the bonds are intended to support the Group's strategic entry into the industrial park management sector in the People's Republic of China, initially focusing on Ganzhou, Jiangxi Province [28](index=28&type=chunk) - On June 9, 2025, the Group established a new subsidiary, Jiangxi Jinsheng Holdings Development Co., Ltd., in Ganzhou, Jiangxi Province, China, wholly owned by Hong Kong Jinling Capital [28](index=28&type=chunk) [12. Trade and Other Receivables](index=11&type=section&id=12.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables significantly decreased, primarily due to a substantial decline in trade receivables, while other receivables and prepaid insurance remained relatively stable Trade and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables | 315 | 19,872 | | Other Receivables | 2,334 | 2,207 | | Prepaid Insurance | 2,585 | 3,262 | | **Total** | **5,234** | **25,341** | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | – | 17,164 | | 31 to 90 days | – | 1,130 | | Over 90 days | 315 | 1,578 | | **Total** | **315** | **19,872** | - As of June 30, 2025, and December 31, 2024, the Group assessed the loss allowance and expected credit loss rate under HKFRS 9 as immaterial [33](index=33&type=chunk) [13. Contract Assets and Contract Liabilities](index=12&type=section&id=13.%20Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2025, contract assets significantly increased due to growth in unbilled revenue, while contract liabilities substantially decreased Contract Assets (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Unbilled Revenue | 18,941 | 7,708 | | Retention Receivables | 3,685 | 6,152 | | **Total** | **22,626** | **13,860** | Contract Liabilities (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contract Liabilities Arising from Payments Received in Advance of Construction Contracts | 1,038 | 3,136 | - Changes in contract assets are primarily due to variations in unbilled revenue from completed and verified contract works during the year, and changes in retention receivables due to a decrease in ongoing and completed contracts under the defect liability period [38](index=38&type=chunk) [14. Trade and Other Payables](index=13&type=section&id=14.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly decreased, primarily due to a decline in both trade payables and accrued expenses and other payables Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 16,228 | 23,021 | | Accrued Expenses and Other Payables | 843 | 1,732 | | **Total** | **17,071** | **24,753** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 16,004 | 22,398 | | 31 to 365 days | – | 399 | | Over 365 days | 224 | 224 | | **Total** | **16,228** | **23,021** | [15. Share Capital](index=13&type=section&id=15.%20Share%20Capital) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged Share Capital Information (As of June 30, 2025) | Item | Number of Shares | HK$ thousand | | :--- | :--- | :--- | | Authorized Share Capital | 1,000,000,000 | 10,000 | | Issued and Fully Paid Share Capital | 400,000,000 | 4,000 | [16. Related Party Transactions](index=14&type=section&id=16.%20Related%20Party%20Transactions) For the six months ended June 30, 2025, the remuneration of the Group's key management personnel increased Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Salaries, Fees and Allowances | 3,433 | 3,132 | | Retirement Benefit Scheme Contributions | 36 | 36 | | **Total** | **3,469** | **3,168** | [17. Contingent Liabilities](index=14&type=section&id=17.%20Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024 [46](index=46&type=chunk) [18. Approval of Interim Financial Statements](index=14&type=section&id=18.%20Approval%20of%20Interim%20Financial%20Statements) The interim financial report was approved and authorized for issue by the Board on August 27, 2025 - The interim financial report was approved and authorized for issue by the Board on August 27, 2025 [47](index=47&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive discussion and analysis of the Group's business review, financial performance, liquidity, and other key operational aspects [Business Review and Outlook](index=15&type=section&id=Business%20Review%20and%20Outlook) As a Hong Kong slope works contractor with expertise in landslide prevention and repair, the Group secured significant contracts, but the Board remains cautious on the outlook due to global economic uncertainties, adopting a more conservative approach to new project tenders - The Group is a slope works contractor in Hong Kong, undertaking slope works generally involving landslide prevention and repair to improve or maintain the stability of slopes and/or retaining walls [48](index=48&type=chunk) - For the six months ended June 30, 2025, the Group was awarded **18 contracts** with a total contract sum of approximately **HK$830.6 million**, including **17 ongoing contracts** totaling approximately **HK$827.3 million** [49](index=49&type=chunk) - The Hong Kong government is expected to spend **HK$1.32 billion** on landslide prevention and mitigation in 2025/26, up from **HK$1.27 billion** in 2024/25 [50](index=50&type=chunk) - Given global economic uncertainties, the Board aims to focus on existing projects and adopt a more conservative approach to new project tenders until market conditions become clearer [51](index=51&type=chunk) [Review of Financial Performance](index=17&type=section&id=Review%20of%20Financial%20Performance) The Group achieved significant revenue and profit growth during the reporting period, though gross profit margin declined, reflecting business expansion and cost structure adjustments [Revenue](index=17&type=section&id=Revenue) The Group's revenue increased by 54.9% year-on-year, primarily driven by an increase in public and small-to-medium scale projects - The Group's revenue increased by approximately **HK$46.6 million** or **54.9%** from approximately **HK$84.8 million** for the six months ended June 30, 2024, to approximately **HK$131.4 million** for the six months ended June 30, 2025 [52](index=52&type=chunk) - The significant increase in revenue was primarily due to an increase in both relatively larger public projects (with revenue recognized of **HK$10.0 million** or more) and relatively smaller projects (with revenue recognized between **HK$1.0 million** and **HK$5.0 million**) for the six months ended June 30, 2025 [52](index=52&type=chunk) Number of Projects with Revenue Recognized | Revenue Scale | 2025 | 2024 | | :--- | :--- | :--- | | HK$10.0 million or above | 5 | 4 | | HK$5.0 million to below HK$10.0 million | 1 | 3 | | HK$1.0 million to below HK$5.0 million | 7 | 4 | | Below HK$1.0 million | 4 | 7 | | **Total** | **17** | **18** | [Cost of Services](index=17&type=section&id=Cost%20of%20Services) Service costs increased by 56.4% to approximately HK$123.5 million, commensurate with the rise in revenue - Cost of services increased by approximately **HK$44.6 million** or **56.4%** from approximately **HK$78.9 million** for the six months ended June 30, 2024, to approximately **HK$123.5 million** for the six months ended June 30, 2025 [55](index=55&type=chunk) - The increase in related cost of services was primarily due to the aforementioned increase in the Group's revenue [55](index=55&type=chunk) [Gross Profit and Gross Profit Margin](index=18&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit grew by 34.3% to HK$7.9 million, but gross profit margin decreased from 6.9% to 6.0%, mainly because the growth in service costs outpaced revenue growth, particularly due to increased subcontracting costs from completing major public projects - Gross profit increased by approximately **HK$2.0 million** or **34.3%** from approximately **HK$5.9 million** for the six months ended June 30, 2024, to approximately **HK$7.9 million** for the six months ended June 30, 2025 [56](index=56&type=chunk) - Gross profit margin decreased from approximately **6.9%** for the six months ended June 30, 2024, to approximately **6.0%** for the six months ended June 30, 2025 [56](index=56&type=chunk) - The decrease in gross profit margin was mainly due to a disproportionate increase in our cost of services compared to the increase in revenue, resulting from increased subcontracting costs incurred for the completion of two major public projects at the end of the period [56](index=56&type=chunk) [Other Income, Gains and Losses](index=18&type=section&id=Other%20Income,%20Gains%20and%20Losses) Other income, gains, and losses slightly increased, primarily due to higher gains from the disposal of property, plant, and equipment offsetting reduced bank interest income - Other income, gains and losses increased by approximately **HK$48,000** from approximately **HK$811,000** for the six months ended June 30, 2024, to approximately **HK$859,000** for the six months ended June 30, 2025 [57](index=57&type=chunk) - This increase was mainly due to an increase in gains from disposal of property, plant and equipment of approximately **HK$195,000**, offset by a decrease in bank interest income of approximately **HK$149,000** [57](index=57&type=chunk) [Administrative Expenses](index=18&type=section&id=Administrative%20Expenses) Administrative expenses increased by 6.3% to HK$4.8 million due to higher staff costs - Administrative expenses increased by approximately **HK$0.3 million** or **6.3%** from approximately **HK$4.5 million** for the six months ended June 30, 2024, to approximately **HK$4.8 million** for the six months ended June 30, 2025 [58](index=58&type=chunk) - The increase in administrative expenses was due to higher staff costs [58](index=58&type=chunk) [Finance Costs](index=18&type=section&id=Finance%20Costs) Finance costs slightly decreased, primarily due to the settlement of lease liabilities - The Group's finance costs were approximately **HK$30,000** and **HK$32,000** for the six months ended June 30, 2025 and 2024, respectively, arising from lease liabilities [59](index=59&type=chunk) - The decrease in finance costs was due to the settlement of lease liabilities from prior years [59](index=59&type=chunk) [Income Tax Expense](index=18&type=section&id=Income%20Tax%20Expense) Income tax expense decreased by approximately HK$0.3 million to HK$0.2 million, driven by a reduction in deferred tax expense - Income tax expense decreased by approximately **HK$0.3 million** from approximately **HK$0.4 million** for the six months ended June 30, 2024, to approximately **HK$0.2 million** for the six months ended June 30, 2025 [60](index=60&type=chunk) - This decrease resulted from a reduction in deferred tax expense [60](index=60&type=chunk) [Profit and Total Comprehensive Income for the Period](index=19&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) Profit and total comprehensive income for the period significantly increased by 121.2% to HK$3.7 million, primarily attributable to the rise in revenue and gross profit - Profit and total comprehensive income increased by approximately **HK$2.0 million** or **121.2%** from approximately **HK$1.7 million** for the six months ended June 30, 2024, to approximately **HK$3.7 million** for the six months ended June 30, 2025 [61](index=61&type=chunk) - This increase was mainly attributable to the increase in revenue and gross profit for the six months ended June 30, 2025 [61](index=61&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=19&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The Group's net current assets and cash and bank balances both increased, leading to a significant improvement in the current ratio, but the gearing ratio substantially rose due to bond issuance - As of June 30, 2025, the Group recorded net current assets of approximately **HK$80.5 million** (December 31, 2024: approximately HK$74.9 million) [62](index=62&type=chunk) - As of June 30, 2025, the Group's cash and bank balances were approximately **HK$70.4 million** (December 31, 2024: approximately HK$63.4 million) [62](index=62&type=chunk) - As of June 30, 2025, the current ratio was approximately **5.3 times** (December 31, 2024: approximately 3.6 times) [63](index=63&type=chunk) - As of June 30, 2025, the gearing ratio was approximately **47.6%** (December 31, 2024: approximately 1.4%), primarily due to the bond issuance on June 25, 2025 [64](index=64&type=chunk) [Treasury Policy](index=20&type=section&id=Treasury%20Policy) The Group adopts a prudent financial management approach for its treasury policy, maintaining a robust liquidity position and mitigating credit risk through continuous customer credit assessments - The Group has adopted a prudent financial management approach for its treasury policy, thus maintaining a robust liquidity position for the six months ended June 30, 2025 [66](index=66&type=chunk) - The Group is committed to reducing credit risk through continuous credit and financial assessments of its customers [66](index=66&type=chunk) [Capital Expenditure](index=20&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure on property, plant, and equipment was HK$0.2 million, primarily funded by internal resources - For the six months ended June 30, 2025, the Group invested approximately **HK$0.2 million** in the acquisition of property, plant and equipment [67](index=67&type=chunk) - Capital expenditure was primarily funded by internal resources [67](index=67&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in Hong Kong and faced no foreign exchange risk for the six months ended June 30, 2025, thus no foreign exchange hedging was undertaken - The Group primarily operates in Hong Kong and did not face any foreign exchange risk for the six months ended June 30, 2025 [68](index=68&type=chunk) - The Directors consider the Group's foreign exchange risk to be insignificant, and no foreign exchange hedging was undertaken for the six months ended June 30, 2025 [68](index=68&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) The Group had no contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had no contingent liabilities as of June 30, 2025, and December 31, 2024 [69](index=69&type=chunk) [Pledge of Assets](index=20&type=section&id=Pledge%20of%20Assets) The Group had no assets pledged as of June 30, 2025, and December 31, 2024 - The Group had no assets pledged as of June 30, 2025, and December 31, 2024 [70](index=70&type=chunk) [Material Investments, Material Acquisitions or Disposals](index=20&type=section&id=Material%20Investments,%20Material%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group held no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Group held no material investments, material acquisitions or disposals of subsidiaries, associates, and joint ventures [71](index=71&type=chunk) [Use of Proceeds from Bonds](index=21&type=section&id=Use%20of%20Proceeds%20from%20Bonds) The Group intended to use the net proceeds from the bonds to support its strategic entry into China's industrial park management sector, initially focusing on Ganzhou, Jiangxi Province, allocating funds to its Chinese subsidiary for preliminary preparations and trial operations - The net proceeds from the proposed bond issuance were intended to support the Group's strategic entry into the industrial park management sector in the People's Republic of China, initially focusing on Ganzhou, Jiangxi Province [72](index=72&type=chunk) - These funds would be allocated to a subsidiary of the Group for preliminary preparations and trial operations within its licensed business scope [72](index=72&type=chunk) [Future Plans for Material Investments or Capital Assets](index=21&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Apart from the use of bond proceeds, the Group has no other plans for material investments or capital assets - Save for what is disclosed in the section "Use of Proceeds from Bonds" above, the Group has no other plans for material investments or capital assets [73](index=73&type=chunk) [Environmental Policies and Performance](index=21&type=section&id=Environmental%20Policies%20and%20Performance) The Group is committed to environmental protection, implementing measures to minimize its environmental impact and ensuring compliance with all applicable Hong Kong environmental laws and regulations, with no reported violations during the period - The Group has implemented various environmental protection measures, such as reducing air pollutant emissions and noise assessments, to minimize the impact of its operations on the environment and natural resources [74](index=74&type=chunk) - As of the date of this announcement, the Group has not been subject to any prosecutions, fines, or penalties for breaching any applicable environmental laws or regulations [74](index=74&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=22&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, Mr. Tse Shing Kee and Mr. Ho Ka Ki, as controlling shareholders, each jointly held 75% of the company's shares through Peak Investment Limited Directors' Long Positions in Shares and Underlying Shares of the Company and its Associated Corporations (As of June 30, 2025) | Director Name | Associated Company | Nature of Interest/Capacity | Number of Ordinary Shares Held | Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Mr. Tse | The Company | Interest in controlled corporation/Jointly held interest with another person | 300,000,000 shares (L) | 75% | | Mr. Tse | Peak Investment Limited | Beneficial owner | 2 shares (L) | 50% | | Mr. Ho | The Company | Interest in controlled corporation/Jointly held interest with another person | 300,000,000 shares (L) | 75% | | Mr. Ho | Peak Investment Limited | Beneficial owner | 2 shares (L) | 50% | - These **300,000,000 shares** are held by Peak Investment Limited, which is directly held by Mr. Tse and Mr. Ho in equal shares, thus Mr. Tse and Mr. Ho are deemed to be interested in the **300,000,000 shares** jointly held through Peak Investment Limited under the SFO [79](index=79&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=23&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, Peak Investment Limited held 75% of the company's shares, and the spouses of Mr. Tse Shing Kee and Mr. Ho Ka Ki were also deemed to hold the same proportion of shares due to spousal interests Interests of Substantial Shareholders and Other Persons in the Issued Share Capital of the Company (As of June 30, 2025) | Shareholder Name/Name | Nature of Interest/Capacity | Number of Ordinary Shares Held | Percentage of Interest | | :--- | :--- | :--- | :--- | | Peak Investment Limited | Beneficial owner | 300,000,000 shares (L) | 75% | | Ms. Cao Hongmei | Spouse's interest | 300,000,000 shares (L) | 75% | | Ms. Li Jianqin | Spouse's interest | 300,000,000 shares (L) | 75% | - Ms. Cao Hongmei is the spouse of Mr. Tse, and Ms. Li Jianqin is the spouse of Mr. Ho; under Part XV of the SFO, they are deemed to be interested in the shares of the Company held by their respective spouses [84](index=84&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold or redeemed any shares [83](index=83&type=chunk) [Share Option Scheme](index=25&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme as an incentive to reward eligible participants for their contributions, with limits on total shares issuable and individual allocations, and a maximum exercise period of 10 years, but no options have been granted since adoption - The Share Option Scheme is a share incentive scheme designed to enable the Company to grant options to eligible participants as a reward or return for their contributions to the Group [86](index=86&type=chunk) - The total number of shares available for issue under the Share Option Scheme shall not exceed **10%** of the shares in issue at the time of initial listing on the Stock Exchange (i.e., **40,000,000 shares**) [89](index=89&type=chunk) - The total number of issued shares that may be issued to each grantee upon exercise of options granted under the Share Option Scheme and any other share option schemes of the Group in any 12-month period shall not exceed **1%** of the Company's then issued share capital [90](index=90&type=chunk) - No options have been granted under the Share Option Scheme since its adoption, therefore, as of the date of this announcement, there are no outstanding options under the Share Option Scheme [94](index=94&type=chunk) [Directors' Securities Transactions](index=27&type=section&id=Directors'%20Securities%20Transactions) The company adopted the Model Code as its code of conduct for directors' securities transactions and confirmed that all directors and relevant employees complied with the requirements for the six months ended June 30, 2025 - The Company has adopted the Model Code as its code of conduct for directors' securities transactions [95](index=95&type=chunk) - Following specific inquiries with all Directors, all Directors confirmed that they had complied with the required standards for securities transactions set out in the Model Code for the six months ended June 30, 2025 [95](index=95&type=chunk) [Competing Business](index=27&type=section&id=Competing%20Business) The Directors confirmed that, from the listing date up to the date of this announcement, no controlling shareholder or Director and their respective close associates held any interest in any business directly or indirectly competing with the Group's business - The Directors confirmed that, from the listing date up to the date of this announcement, no controlling shareholder or Director and their respective close associates held any interest in any business (other than the Group's business) that directly or indirectly competes or may compete with the Group's business [96](index=96&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee count increased to 180, with a corresponding rise in total staff costs, and its remuneration policy aligns with market practices based on individual performance and experience - As of June 30, 2025, the Group had **180 employees** (December 31, 2024: 150 employees), excluding Directors [97](index=97&type=chunk) - For the six months ended June 30, 2025, total staff costs (excluding Directors' emoluments) were approximately **HK$26.2 million** (June 30, 2024: HK$20.1 million) [99](index=99&type=chunk) - The Group's remuneration policy is consistent with prevailing market practices, and employee remuneration is determined based on individual performance and experience [99](index=99&type=chunk) [Corporate Governance Practices](index=28&type=section&id=Corporate%20Governance%20Practices) The Group is committed to achieving high standards of corporate governance, having adopted the principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, and believes it has complied with all applicable code provisions as of this announcement date - The Group has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules as the basis for its corporate governance practices [100](index=100&type=chunk) - The Board believes that the Group has complied with all applicable code provisions set out in the Corporate Governance Code as of the date of this announcement [100](index=100&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The company has established an Audit Committee comprising four members, with Chairman Mr. Cao Bingchang possessing over 21 years of professional accounting experience, and the committee has reviewed the interim financial statements, deeming them compliant with accounting standards and requirements - The Audit Committee comprises four members: Mr. Cao Bingchang, Ms. Zhao Shaoling, Mr. Kuang Zhicheng, and Mr. Ling Zhaozeng [101](index=101&type=chunk) - Mr. Cao Bingchang, the Chairman of the Audit Committee, is a practicing accountant with over **21 years** of professional accounting experience [101](index=101&type=chunk) - This announcement and the unaudited condensed consolidated interim financial statements have not been audited by the Company's external auditor but have been reviewed by the Company's Audit Committee, which considers them to be in compliance with applicable accounting standards and requirements and to have made appropriate disclosures [101](index=101&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the period ended June 30, 2025, but a special dividend of 17.5 HK cents per share was paid in 2024 - The Board does not recommend an interim dividend for the period ended June 30, 2025 (six months ended June 30, 2024: nil HK cents) [102](index=102&type=chunk) - At the Board meeting held on January 19, 2024, the Board recommended a special dividend of **17.5 HK cents** per ordinary share, totaling **HK$70,000,000**, which was paid on February 16, 2024 [103](index=103&type=chunk) [Events After Reporting Period](index=29&type=section&id=Events%20After%20Reporting%20Period) After the reporting period, the Group decided not to proceed with its plan to expand into China's management services industry and fully redeemed previously issued bonds on July 25, 2025, to streamline its capital structure and retain financial flexibility - The Group has decided not to proceed with the proposed expansion into China's management services industry at this stage [105](index=105&type=chunk) - Following amicable discussions with the subscribers, the Group reached an agreement to fully redeem and settle the bonds in cash on July 25, 2025, without any accrued interest [105](index=105&type=chunk) - The Group believes that completing this transaction is an appropriate and timely step to streamline its capital structure and retain financial flexibility for future strategic developments [105](index=105&type=chunk) [By Order of the Board](index=29&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Tse Shing Kee, Chairman of Fung Shing Holdings Limited, on behalf of the Board, listing the Board members as of the announcement date - This announcement is issued by Mr. Tse Shing Kee, Chairman of Fung Shing Holdings Limited, by order of the Board [106](index=106&type=chunk) - As of the date of this announcement, the Board comprises executive Directors Mr. Tse Shing Kee (Chairman of the Board) and Mr. Ho Ka Ki (Chief Executive Officer), and independent non-executive Directors Ms. Zhao Shaoling, Mr. Kuang Zhicheng, Mr. Ling Zhaozeng, and Mr. Cao Bingchang [107](index=107&type=chunk)

Group 1 - The company, Fengcheng Holdings (02295.HK), will hold a board meeting on August 27, 2025 [1] - The meeting will review and approve the group's interim results for the six months ending June 30, 2025, and discuss the proposal for an interim dividend, if any [1]

承董事會命 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 就 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 之 任 何 損 失 承 擔 任 何 責 任。 Maxicity Holdings Limited 豐城控股有限公司 （於開曼群島註冊成立的成員有限公司） （股份代號：2295） 董事會會議召開日期 豐 城 控 股 有 限 公 司（「本公司」，連 同 其 附 屬 公 司，統 稱「本集團」）董 事（「董 事」） 會（「董事會」）謹 此 宣 佈，將 於 二 零 二 五 年 八 月 二 十 七 日（星 期 三）舉 行 董 事 會 會 議，以（其 中 包 括）考 慮 及 批 准 本 集 團 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 中 期 業 績 及 其 刊 發，以 及 建 議 派 付 中 期 股 息（如 有）。 豐城控股有限公司 主 席 謝城基 香 港，二 零 二 五 年 八 月 十 ...

致：香港交易及結算所有限公司 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 | | | 本月底法定/註冊股本總額： HKD 10,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 公司名稱: 豐城控股有限公司 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) | 02295 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | ...

Group 1 - The company has established a wholly-owned subsidiary in China, which is permitted to engage in various business activities including industrial park management and property management services [1][2] - The establishment of the subsidiary is part of the company's strategy to diversify its business portfolio and broaden revenue sources, particularly in the Chinese market, which presents attractive prospects due to long-term structural trends and supportive government policies [1] - The company is actively seeking opportunities to participate in the industrial park management sector, focusing on the market in Ganzhou, Jiangxi Province [1][2] Group 2 - Although the subsidiary has not commenced operations, the management is considering potential projects, including management services for properties related to gold and luxury goods trading [2] - The board is in discussions with independent private investors regarding a bond subscription, with a proposed issuance of bonds by Jinning Capital with a one-year term and an 8% coupon rate, totaling up to HKD 40 million [2]

Group 1 - The core point of the article is that Fengcheng Holdings has established a wholly-owned subsidiary in Jiangxi Province, China, to diversify its business and expand revenue sources, particularly in the industrial park management sector [1] - The newly formed subsidiary will focus on various management services, including enterprise headquarters management, industrial park management, commercial complex management, and property management [1] - The company aims to leverage the structural trends and supportive government policies in the Chinese market to capitalize on attractive opportunities [1] Group 2 - The board of directors announced discussions with independent private investors regarding a bond subscription, with a proposed issuance of bonds totaling up to HKD 40 million at an interest rate of 8% [2] - The net proceeds from the bond issuance are intended to support the company's strategic entry into the industrial park management industry in China, specifically targeting Jiangxi Province [2] - The funds will be allocated to the newly established subsidiary for preliminary preparations and trial operations within its licensed business scope [2]

Group 1 - As of June 3, a total of 105 stocks reached their 52-week highs, with Huayin International Holdings (00989), Dingyifeng Holdings (00612), and Youquhui Holdings (02177) leading the high rate at 57.26%, 37.93%, and 23.02% respectively [1] - The closing prices and highest prices for the top three stocks are as follows: Huayin International Holdings at 1.370 and 1.950, Dingyifeng Holdings at 0.770 and 0.800, and Youquhui Holdings at 3.550 and 3.580 [1] - Other notable stocks that reached their 52-week highs include China Antibody-B (03681) with a high rate of 21.62% and Fengcheng Holdings (02295) at 19.52% [1] Group 2 - The report also lists stocks that reached their 52-week lows, with Des Holdings (08437) showing the largest decline at -38.79%, followed by Dimi Life Holdings (01667) at -20.50% [3] - The closing prices and lowest prices for the top three stocks that reached their lows are: Des Holdings at 0.177 and 0.071, Dimi Life Holdings at 0.140 and 0.128, and Lujizhi Technology (01745) at 0.197 and 0.194 [3] - Other stocks with significant declines include GBA Group (00261) at -11.48% and Baide International (02668) at -10.88% [3]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately HKD 205.8 million, an increase of about HKD 37.6 million or 22.3% compared to HKD 168.2 million for the fiscal year ending December 31, 2023[10] - The profit attributable to equity holders for the year was HKD 8.7 million, a decrease of approximately HKD 5.2 million or 37.3% from HKD 13.9 million in the previous year[10] - The group's revenue increased from approximately HKD 168.2 million for the year ended December 31, 2023, to approximately HKD 205.8 million for the year ended December 31, 2024, representing a growth of about 22.3% or approximately HKD 37.6 million[18] - Gross profit decreased from approximately HKD 20.7 million to approximately HKD 17.7 million, a decline of about 14.4%, with the gross profit margin dropping from approximately 12.3% to 8.6%[21] - Other income and net other (losses)/gains decreased by approximately HKD 2.9 million or 67.5%, from approximately HKD 4.3 million to approximately HKD 1.4 million, mainly due to a reduction in bank interest income[22] - The total comprehensive income for the year ended December 31, 2024, was approximately HKD 8.7 million, a decrease of about HKD 5.2 million or 37.3% compared to HKD 13.9 million for the year ended December 31, 2023[27] Cash and Assets - As of December 31, 2024, the company's cash and bank balances were approximately HKD 63.4 million, a decrease of about HKD 51.1 million or 44.7% from HKD 114.6 million as of December 31, 2023[10] - Cash and bank balances decreased by approximately HKD 51.2 million or 44.7%, from approximately HKD 114.6 million to approximately HKD 63.4 million, primarily due to dividend payments of approximately HKD 70.0 million during the year[30] - The debt-to-equity ratio increased from approximately 0.5% to approximately 1.4% due to a decrease in equity attributable to the company's shareholders[35] - The current ratio decreased from approximately 7.0 times to approximately 3.6 times, with net current assets dropping from approximately HKD 137.2 million to approximately HKD 74.9 million[36] Contracts and Operations - The company secured 20 contracts during the fiscal year, with a total contract value of approximately HKD 806.1 million, of which 3 contracts valued at HKD 47.1 million were completed[16] - There are currently 17 ongoing contracts with a total value of approximately HKD 759.0 million as of December 31, 2024[16] - The company is focused on expanding its operations in slope engineering, which includes various services such as installing protective nets and drainage systems[17] - Four new clients contributed to five engineering project contracts with an estimated total value of HKD 287.7 million, addressing the risk of limited customer numbers[38] Market and Economic Conditions - The company remains cautious about future business prospects due to uncertainties in labor and material costs influenced by macroeconomic conditions[12] - The company has experienced challenges due to geopolitical tensions and economic uncertainties, impacting its overall performance outlook[12] - The Hong Kong government plans to increase spending on landslide prevention from HKD 1 billion to HKD 1.3 billion in 2025, which is expected to benefit the company's operations[12] - The government plans to increase spending on landslide prevention from HKD 1 billion to HKD 1.3 billion in 2025, indicating potential growth opportunities for the group[54] Corporate Governance - The company is committed to high standards of corporate governance, having adopted the principles and code provisions of the Corporate Governance Code since its GEM listing on December 13, 2019[75] - The company maintains a focus on compliance and governance through its independent directors and committees[62] - The board consists of six members, with four being independent non-executive directors, exceeding one-third of the board as per listing rules[78] - The company has established three board committees: the audit committee, the remuneration committee, and the nomination committee, each with defined written terms of reference[91] - The board is responsible for approving financial statements and annual budgets, as well as monitoring business performance[82] Risk Management - The company has established a risk management and internal control system to ensure the accuracy and reliability of presented data[134] - The board is responsible for maintaining effective risk management and internal control systems to protect the company's assets and shareholder interests[130] - The independent auditor is responsible for auditing and confirming the financial statements of the group, reporting any control deficiencies to management[135] Environmental, Social, and Governance (ESG) - The ESG report outlines the company's commitment to sustainable development and responsible environmental, social, and governance management for the fiscal year ending December 31, 2024[157] - The board of directors is responsible for establishing ESG goals, developing sustainable strategies, and reviewing performance[158] - The company identifies 15 key ESG issues through a comprehensive materiality assessment to focus on areas with significant impact on long-term sustainability and value creation[166] - The company has achieved ISO 14001:2015 certification for its environmental management system, demonstrating compliance with internationally recognized standards[169] Employee and Management - As of December 31, 2024, the group had 150 employees, an increase from 119 employees in 2023, with total employee costs approximately HKD 57.1 million, unchanged from 2023[41] - The company’s management team regularly reviews employee compensation policies to ensure competitiveness and compliance[82] - The company emphasizes gender diversity at all levels and is taking measures to promote it through recruitment and career development opportunities for women[118] Shareholder Communication - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[153] - The company has established a shareholder communication policy to provide balanced and comprehensible information to shareholders and investors[153] - Shareholders have the right to convene special general meetings if they hold at least 10% of the voting rights[149]

Revenue and Profitability - The group's revenue increased from approximately HKD 168.2 million for the year ended December 31, 2023, to approximately HKD 205.8 million for the year ended December 31, 2024, representing a growth of about HKD 37.6 million or 22.3%[3] - The total profit and comprehensive income for the year was approximately HKD 8.7 million, a decrease of about HKD 5.2 million or 37.3% compared to HKD 13.9 million for the year ended December 31, 2023[3] - The group's gross profit for the year was HKD 17.7 million, down from HKD 20.7 million in the previous year[4] - Public project revenue contributed HKD 193,598,000, up from HKD 146,409,000, reflecting a growth of 32.2% year-over-year[23] - Private project revenue decreased to HKD 12,182,000 from HKD 21,793,000, representing a decline of 44.0%[23] - Basic earnings per share for the year ended December 31, 2024, were HKD 8,745, down from HKD 13,942 in 2023[38] Dividends - The board of directors did not recommend the declaration and payment of a final dividend for the year ended December 31, 2024, compared to no dividend declared for the year ended December 31, 2023[3] - A special dividend of HKD 0.175 per ordinary share was distributed on February 16, 2024, totaling HKD 70.0 million[3] - The company declared a special dividend of HKD 70,000,000 for the year ending December 31, 2024, compared to no special dividend in 2023[34] - The company has not provided a final dividend recommendation for the year ending December 31, 2024, indicating a potential shift in capital allocation strategy[35] Financial Position - The group's total assets decreased from HKD 160.2 million in 2023 to HKD 103.7 million in 2024, reflecting a significant reduction in cash and bank balances[6] - The net asset value of the group decreased from HKD 143.1 million in 2023 to HKD 81.8 million in 2024[6] - Current liabilities increased from HKD 23.0 million in 2023 to HKD 28.7 million in 2024, indicating a rise in trade and other payables[6] - The current ratio decreased from approximately 7.0 times as of December 31, 2023, to approximately 3.6 times as of December 31, 2024, with net current assets of approximately HKD 74.9 million, down from approximately HKD 137.2 million[88] - The asset-liability ratio increased from approximately 0.5% as of December 31, 2023, to approximately 1.4% as of December 31, 2024, due to a decrease in equity attributable to shareholders[86] Financial Reporting Standards - The adoption of revised Hong Kong Financial Reporting Standards effective from January 1, 2024, is not expected to have a significant impact on the group's financial performance[14] - The group is currently evaluating the impact of the new standards on its consolidated financial statements and performance indicators[18] - The group anticipates that other newly issued and revised Hong Kong Financial Reporting Standards will not have a significant impact on its consolidated financial statements[21] - The group’s financial reporting will include new classifications and disclosures as per the revised standards, enhancing clarity in financial performance reporting[19] - The group’s management has defined performance indicators that will be disclosed in the financial statements, improving transparency[19] Costs and Expenses - Service costs rose by approximately HKD 40.5 million or 27.5%, from about HKD 147.5 million to approximately HKD 188.1 million for the same periods[72] - Gross profit decreased by approximately HKD 3.0 million or 14.4%, from about HKD 20.7 million to approximately HKD 17.7 million, with gross margin dropping from 12.3% to 8.6%[73] - Subcontracting costs increased by approximately 63.0% compared to the previous year, impacting overall profit margins[74] - Employee benefit expenses for 2024 are HKD 60,872,000, slightly increasing from HKD 60,181,000 in 2023, reflecting a 1.15% growth[32] - Financial costs increased by approximately HKD 19,000 or 22.9%, from about HKD 83,000 to approximately HKD 102,000 due to higher interest expenses on long-term service obligations[77] Cash Flow and Investments - As of December 31, 2024, the group's cash and bank balances were approximately HKD 63.4 million, a decrease of about HKD 51.2 million or 44.7% from approximately HKD 114.6 million as of December 31, 2023, primarily due to dividend payments of approximately HKD 70.0 million during the year[83] - The group invested approximately HKD 5.8 million in the acquisition of property, plant, and equipment for the year ended December 31, 2024[91] - The group had no significant capital commitments or contingent liabilities as of December 31, 2024[81] Long Service Payment Obligations - The present value of the unallocated long service payment liability as of December 31, 2024, is estimated at HKD 293,000, with a current service cost of HKD 266,000 and interest cost of HKD 27,000[57] - The long service payment liability has a weighted average term of 18 years, indicating a long-term financial commitment[59] - The discount rate used for calculating the long service payment liability increased from 3.8% in 2023 to 4.1% in 2024, while the salary growth rate rose from 2.0% to 3.1%[57] - The maximum benefit payment under the long service payment scheme remains capped at HKD 390,000 per employee[54] - The Hong Kong government has announced the repeal of the offsetting mechanism for long service payments, effective May 1, 2025, which will impact the company's long service payment obligations[52] Operational Highlights - The group continues to focus on slope engineering in Hong Kong, with no new product or technology developments reported in the current financial year[9] - The group is involved in various slope engineering projects, including soil nail drilling and installation, construction of retaining walls, and installation of drainage systems[65] - The group secured 20 contracts with a total contract value of approximately HKD 806.1 million, of which 3 contracts worth about HKD 47.1 million have been completed as of December 31, 2024[66] Compliance and Governance - The company has confirmed that as of December 31, 2024, there are no direct or indirect competitive businesses or interests held by directors, major shareholders, or their associates[98] - The company has adopted a strict code of ethics and securities trading standards, ensuring compliance with the listing rules as of December 31, 2024[100] - The audit committee, consisting of four members, has reviewed the annual performance for the fiscal year ending December 31, 2024, and confirmed compliance with applicable accounting standards[106] - The company's preliminary performance figures for the fiscal year ending December 31, 2024, have been verified to be consistent with the audited consolidated financial statements[107]