Financial Performance - The group's revenue for the year ended December 31, 2022, was approximately HKD 192.3 million, a decrease of about 34.5% from HKD 293.9 million in the previous year[28]. - Gross profit for the year was approximately HKD 20.9 million, down from HKD 53.7 million, reflecting a significant decline in profitability[28]. - The net profit and total comprehensive income for the year amounted to HKD 14.5 million, compared to HKD 27.8 million in the previous year, indicating a decrease of approximately 47.9%[28]. - The total revenue for the year ended December 31, 2022, was HKD 192,258,000, a decrease of 34.5% from HKD 293,907,000 in 2021[58]. - The total profit and comprehensive income for the year was approximately HKD 14.5 million, a decrease of about HKD 13.3 million or 47.8% compared to HKD 27.8 million for the year ended December 31, 2021[48]. - Adjusted profit and comprehensive income (excluding listing and related expenses and financial support from the anti-epidemic fund) for the year was approximately HKD 11.1 million, down about HKD 27.2 million or 71.0% from approximately HKD 38.3 million for the year ended December 31, 2021[48]. - The company's basic earnings per share for 2022 was HKD 14,475,000, down 47.9% from HKD 27,801,000 in 2021[89]. - Income tax expense significantly decreased from approximately HKD 7.5 million for the year ended December 31, 2021, to approximately HKD 1.8 million for the year ended December 31, 2022, a decline of about HKD 5.7 million or 76.0%[135]. Assets and Liabilities - The group's current assets net value as of December 31, 2022, was approximately HKD 161.2 million, an increase of about HKD 9.9 million from HKD 151.3 million in the previous year[7]. - The company's equity attributable to equity holders increased to HKD 169.138 million from HKD 154.663 million[30]. - The group's total liabilities as of December 31, 2022, were significantly impacted by the changes in accounting policies, with specific adjustments noted in the financial statements[56]. - As of December 31, 2022, the group's asset-liability ratio increased from approximately 0.1% on December 31, 2021, to about 1.0%, primarily due to an increase in lease liabilities[168]. - The group's current ratio decreased from approximately 5.7 times to 5.5 times over the same period[7]. Cash Flow and Investments - Cash and bank balances increased to HKD 147.367 million from HKD 119.417 million[30]. - The group invested approximately HKD 6.1 million in the acquisition of properties, plants, and equipment during the fiscal year ending December 31, 2022, with capital expenditures mainly funded by internal resources[172]. - The total lease cash outflow for the year ended December 31, 2022, was approximately HKD 11.64 million, compared to HKD 10.01 million in 2021[119]. - The group did not hold any significant investments during the year ended December 31, 2022[11]. - There were no major investments or capital assets planned as of December 31, 2022[12]. Dividends - The board proposed a final dividend of HKD 0.075 per share for the year ended December 31, 2022, compared to no dividend in the previous year[9]. - The board proposed a final dividend of HKD 0.075 per ordinary share for the year ended December 31, 2022, compared to no dividend for the year ended December 31, 2021[48]. - The company plans to pay the final dividend, subject to approval at the upcoming annual general meeting, expected to be distributed on or before June 5, 2023[171]. Operational Challenges - The group has been impacted by supply chain disruptions and labor shortages due to COVID-19, affecting operational efficiency and increasing financial burdens[107]. - The group faced severe labor shortages due to COVID-19, impacting project progress and causing significant delays[126]. - The construction industry is experiencing a continuous shortage of skilled labor, affecting the ability to recruit sufficient personnel for new projects[157]. - The group anticipates challenges in material supply and project delays due to ongoing pandemic-related issues, which may affect future performance[107]. - The group has adopted measures to address labor shortages, including hiring additional temporary workers[126]. Government Support and Grants - Government grants received increased to HKD 3.386 million from HKD 1.573 million year-on-year[44]. - The group recognized various government subsidies under the anti-epidemic fund totaling approximately HKD 3,324,000, HKD 54,000, and HKD 8,000 for different programs, compared to HKD 1,276,000, HKD 297,000, and HKD 0 in 2021[62]. - The Hong Kong government plans to allocate HKD 1 billion for landslide prevention and mitigation in the fiscal budget for 2023, which is expected to stimulate demand for slope engineering[124]. Project Engagement - The number of projects contributing to revenue was 42 in 2022, compared to 39 in 2021, indicating a growth in project engagement[110]. - The group completed 12 contracts in 2022, contributing to revenue from 11 previously recognized completed projects[123]. - As of December 31, 2022, the group was awarded 31 contracts with a total contract value of approximately HKD 911.6 million, of which 12 contracts were completed with a total value of approximately HKD 255.2 million[123]. Corporate Governance - The company emphasizes the importance of corporate governance to protect shareholder interests and enhance corporate value[174]. - The corporate governance code has been adhered to since the company's listing on GEM on December 13, 2019[175].

Financial Performance - Revenue decreased significantly from approximately HKD 154.8 million for the six months ended June 30, 2021, to approximately HKD 83.2 million for the six months ended June 30, 2022, representing a decline of about HKD 71.6 million or 46.3%[9] - Gross profit fell from approximately HKD 28.8 million to approximately HKD 9.2 million, a decrease of about HKD 19.6 million or 68.1%, with the gross profit margin dropping from 18.6% to 11.0%[9] - Total comprehensive income attributable to equity holders decreased from approximately HKD 15.8 million to approximately HKD 6.1 million, a decline of about HKD 9.7 million or 61.5%[9] - Adjusted profit attributable to equity holders was approximately HKD 3.9 million, down about HKD 16.2 million or 80.8% compared to the same period in the previous year[9] - Basic and diluted earnings per share were approximately HKD 0.0152, compared to HKD 0.039 for the six months ended June 30, 2021[9] - Total profit and comprehensive income for the six months ended June 30, 2022, decreased significantly to approximately HKD 6.1 million, down by HKD 9.7 million or 61.5% compared to HKD 15.8 million for the same period in 2021[97] - Adjusted profit and comprehensive income attributable to equity holders for the six months ended June 30, 2022, was approximately HKD 3.9 million, a decrease of about HKD 16.2 million or 80.8% from HKD 20.1 million for the same period in 2021[97] Dividends and Earnings - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[9] - The board of directors did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[153] Labor and Operational Challenges - Labor shortages due to COVID-19 infections and isolation requirements led to project delays and additional financial burdens for the company[9] - The company implemented measures to mitigate labor shortages by hiring additional temporary workers during the pandemic[9] - The significant decrease in revenue and gross profit was primarily attributed to a reduction in the number of large-scale projects and their associated income[9] - The company maintained its workforce during quarantine periods to ensure readiness for immediate resumption of work, adding to financial pressures[9] - The group anticipates a challenging second half of 2022, with expectations of improved business conditions due to economic recovery and favorable government policies[84] Assets and Liabilities - Non-current assets increased to HKD 5,711 million as of June 30, 2022, compared to HKD 3,863 million as of December 31, 2021, reflecting a growth of 47.8%[14] - Current assets decreased to HKD 176,800 million from HKD 183,218 million, a decline of 3.3% year-over-year[14] - Total assets less current liabilities rose to HKD 161,188 million, up from HKD 155,162 million, representing a growth of 3.7%[14] - The company's equity attributable to owners increased to HKD 160,735 million as of June 30, 2022, compared to HKD 154,663 million as of December 31, 2021, an increase of 3.9%[14] - The company’s total liabilities decreased to HKD 21,323 million from HKD 31,919 million, a decrease of 33.3%[14] Cash Flow and Financial Position - Net cash generated from operating activities was HKD 4,618 million for the six months ended June 30, 2022, down from HKD 12,776 million, a decrease of 63.8%[19] - Cash and bank balances increased to HKD 121,116 million from HKD 119,417 million, showing a slight increase of 1.4%[14] - The current ratio as of June 30, 2022, was approximately 8.3 times, an increase from 5.7 times as of December 31, 2021[98] - The net cash and bank balance as of June 30, 2022, was approximately HKD 121.1 million, compared to HKD 119.4 million as of December 31, 2021[98] Employee Costs and Management - The total employee costs for the six months ended June 30, 2022, were HKD 27,851,000, a decrease of 27.4% from HKD 38,362,000 in 2021[41] - Total employee costs (excluding director remuneration) for the six months ended June 30, 2022, were approximately HKD 26.3 million, compared to HKD 36.9 million for the same period in 2021[148] - The total number of employees as of June 30, 2022, was 161, down from 212 as of December 31, 2021[148] - The group’s management personnel compensation for the six months ended June 30, 2022, was HKD 2,119 thousand, compared to HKD 1,980 thousand for the same period in 2021, an increase of approximately 7.0%[73] Contracts and Projects - The group was awarded 27 contracts with a total contract value of approximately HKD 819.5 million, of which 6 contracts worth approximately HKD 85.3 million were completed[80] - As of June 30, 2022, the group had 21 ongoing contracts with a total contract value of approximately HKD 734.2 million[80] - The number of projects contributing to revenue was 27 for both periods, but the number of public projects decreased from 17 to 12, while private projects increased from 10 to 15[88] Government Support and Subsidies - The group recognized government subsidies of HKD 2,200,000 under the anti-epidemic fund, compared to HKD 1,321,000 for the same period in 2021[35] - Other income, gains, and losses increased from approximately HKD 1.5 million to approximately HKD 2.3 million, mainly due to increased government subsidies under the employment support scheme[92] Corporate Governance and Compliance - The company has complied with the corporate governance code since its listing date and continues to uphold high standards of corporate governance[149] - The company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of interests and holdings by directors and major executives[120] - The audit committee consists of four members, with Mr. Cao Bingchang as the chairman, who has over 18 years of professional accounting experience[152] Share Capital and Ownership - As of June 30, 2022, the company's issued share capital was HKD 4.0 million, divided into 400,000,000 shares at HKD 0.01 each[127] - Mr. Xie and Mr. He are deemed to jointly hold 300,000,000 shares, representing 75% of the issued share capital of the company[127] - The company has a significant concentration of ownership, with major shareholders holding 75% of the issued share capital[127] Future Outlook - The company continues to review and compare its disclosed business strategies with the evolving industry conditions to ensure effective use of net proceeds[118] - The company has confirmed that there were no purchases, sales, or redemptions of its own shares during the six months ended June 30, 2022[130] - There were no significant events affecting the group after the reporting period ending June 30, 2022[154]

Financial Performance - For the year ended December 31, 2021, the group recorded revenue of approximately HKD 293.9 million, an increase of about HKD 17.9 million or 6.5% compared to approximately HKD 276.0 million for the year ended December 31, 2020[10]. - The profit attributable to equity holders for the year was approximately HKD 27.8 million, a significant decrease of about HKD 11.5 million or 29.3% from approximately HKD 39.4 million for the previous year[10]. - The adjusted profit attributable to equity holders, after excluding listing and related expenses, was approximately HKD 38.3 million, an increase of about HKD 1.9 million or 5.1% compared to approximately HKD 36.5 million for the previous year[10]. - Total comprehensive income decreased significantly by approximately HKD 11.5 million or 29.3% to about HKD 27.8 million for the year ended December 31, 2021, primarily due to increased listing-related expenses and reduced government subsidies[24]. - Adjusted total comprehensive income (excluding listing-related expenses and government subsidies) increased by approximately HKD 1.9 million or 5.1% to about HKD 38.3 million for the year ended December 31, 2021[24]. Cash and Liquidity - As of December 31, 2021, the group's cash and bank balances were approximately HKD 119.4 million, an increase of about HKD 35.9 million or 43.0% from approximately HKD 83.5 million as of December 31, 2020[10]. - Cash and bank balances increased by approximately HKD 35.9 million or 43.0% to about HKD 119.4 million as of December 31, 2021, mainly from operating cash flow[27]. - Current ratio improved from approximately 4.6 times to about 5.7 times as of December 31, 2021, with net current assets increasing by approximately HKD 28.7 million[33]. - The debt-to-equity ratio decreased from approximately 0.3% to about 0.1% as of December 31, 2021, mainly due to an increase in equity attributable to shareholders[29]. Project and Operational Updates - The group primarily operates in the slope engineering sector in Hong Kong, with most of its revenue derived from public projects[10]. - The slope engineering industry in Hong Kong is gradually recovering from the impacts of the COVID-19 pandemic[10]. - The number of projects contributing to revenue increased from 28 in 2020 to 39 in 2021, with public projects rising from 16 to 19 and private projects from 12 to 20[18]. - The group completed 21 contracts with a total contract value of approximately HKD 548.2 million out of 39 contracts awarded, with 18 contracts still in progress valued at approximately HKD 475.2 million as of December 31, 2021[16]. - The group reported a total of 39 contracts awarded, with a total contract value of approximately HKD 1,023.4 million as of December 31, 2021[16]. Challenges and Outlook - The group anticipates that the fifth wave of the pandemic will continue at least until the second quarter of 2022, with a cautious outlook for business performance in 2022[13]. - Labor shortages and project delays were experienced due to COVID-19 infections among employees and the need for disinfection of work sites[13]. - The group faced significant delays in the certification process for projects due to remote working policies affecting the construction industry[12]. - The group is prepared to face more challenging times in 2022, with expectations of gradual improvement in business conditions[13]. - The group expects economic recovery and favorable government policies to increase demand for slope engineering projects, providing significant opportunities[13]. Governance and Management - The board of directors did not recommend the payment of any dividends for the year ended December 31, 2021, consistent with the previous year[44]. - The company has established credit policies to manage credit risk, with regular independent credit assessments of customers conducted by financial and administrative staff[37]. - The financial director is responsible for monitoring the overall liquidity requirements on a monthly basis to ensure financial commitments are met[37]. - The company has a comprehensive corporate governance policy in place, reviewed regularly by the board[88]. - The board consists of experienced members with diverse backgrounds in business management, finance, and legal matters, promoting gender diversity at all levels[114]. Environmental and Social Responsibility - The company aims to minimize any adverse environmental impacts from its business activities and has established an environmental management system compliant with ISO 14001:2015 standards since 2018[169]. - The company has implemented measures to ensure compliance with environmental regulations and has established processes for environmental protection[169]. - The company aims to reduce greenhouse gas emissions by 3% by 2026, using 2021 as the baseline year[183]. - The company has communicated its environmental policy to all employees, suppliers, and contractors to enhance environmental protection efforts[172]. - The company aims to provide a safe working environment and has policies in place to protect employees from occupational hazards[167].