[Interim Financial Summary](index=1&type=section&id=Interim%20Financial%20Summary) Wing Kei Group's unaudited interim results for the six months ended June 30, 2025, show declines in revenue, gross profit, and profit attributable to owners, with a corresponding decrease in basic earnings per share Interim Financial Summary for the Six Months Ended June 30, 2025 | Indicator | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | Change (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 165,500 | 171,700 | (6,200) | -3.6% | | Gross Profit | 25,600 | 32,600 | (7,000) | -21.6% | | Profit attributable to owners of the Company | 10,800 | 13,400 | (2,600) | -19.4% | | Basic earnings per share (HK cents) | 0.54 | 0.81 | (0.27) | -33.3% | - The Board of Directors resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025[5](index=5&type=chunk) [Unaudited Consolidated Interim Financial Statements](index=2&type=section&id=Unaudited%20Consolidated%20Interim%20Financial%20Statements) This section presents the Group's unaudited condensed consolidated interim statements of comprehensive income and financial position for the six months ended June 30, 2025, with comparative financial data [Unaudited Consolidated Interim Statement of Comprehensive Income](index=2&type=section&id=Unaudited%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue was HK$165.5 million, a 3.6% decrease year-over-year, while gross profit fell by 21.6% to HK$25.6 million, and profit attributable to owners decreased by 19.2% Unaudited Consolidated Interim Statement of Comprehensive Income for the Six Months Ended June 30, 2025 (HK$'000) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 165,519 | 171,708 | | Cost of services | (139,942) | (139,088) | | Gross profit | 25,577 | 32,620 | | Other income | 4 | 3 | | Other net gains | 69 | 71 | | Administrative expenses | (12,080) | (10,726) | | Listing expenses | – | (4,838) | | (Impairment losses)/reversal of impairment losses on financial and contract assets | (406) | 112 | | Operating profit | 13,164 | 17,242 | | Finance income | 93 | 380 | | Finance costs | (256) | (279) | | Finance (costs)/income, net | (163) | 101 | | Profit before income tax expense | 13,001 | 17,343 | | Income tax expense | (2,169) | (3,941) | | Profit for the period attributable to owners of the Company | 10,832 | 13,402 | | Basic and diluted earnings per share (HK cents) | 0.54 | 0.81 | | Exchange differences on translation of foreign operations | (275) | 341 | | Total comprehensive income for the period attributable to owners of the Company | 10,557 | 13,743 | [Unaudited Consolidated Interim Statement of Financial Position](index=3&type=section&id=Unaudited%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were HK$311.6 million, with net current assets at HK$228.8 million, total equity at HK$263.9 million, and total liabilities at HK$47.7 million Unaudited Consolidated Interim Statement of Financial Position as of June 30, 2025 (HK$'000) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **ASSETS** | | | | Non-current assets | 36,285 | 36,986 | | Current assets | 275,329 | 276,319 | | **Total assets** | **311,614** | **313,305** | | **EQUITY** | | | | Equity attributable to owners of the Company | 263,939 | 253,382 | | **LIABILITIES** | | | | Non-current liabilities | 1,150 | 2,483 | | Current liabilities | 46,525 | 57,440 | | **Total liabilities** | **47,675** | **59,923** | | **Total equity and liabilities** | **311,614** | **313,305** | [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=5&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes on the interim financial statements, covering key financial details such as general information, basis of preparation, accounting policies, and segment information [1. General Information](index=5&type=section&id=1.%20General%20Information) Wing Kei Group (Holdings) Limited, an investment holding company engaged in steel structure engineering services in Hong Kong, was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange - The Company was incorporated in the Cayman Islands on June 28, 2023, as an investment holding company[9](index=9&type=chunk) - The Group is principally engaged in providing steel structure engineering services in Hong Kong[9](index=9&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on March 8, 2024[9](index=9&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The unaudited interim financial statements were prepared in accordance with HKAS 34 and the Listing Rules, using consistent accounting policies as the 2024 annual financial statements - The unaudited interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules[10](index=10&type=chunk) - The accounting policies adopted are consistent with those of the annual audited consolidated financial statements for the year ended December 31, 2024, except for the adoption of amendments to HKFRSs[10](index=10&type=chunk) - These financial statements have not been audited or reviewed by an external auditor but have been reviewed by the Company's Audit Committee[10](index=10&type=chunk) [3. Application of Amendments to Hong Kong Financial Reporting Standards (HKFRSs)](index=6&type=section&id=3.%20Application%20of%20Amendments%20to%20Hong%20Kong%20Financial%20Reporting%20Standards%20(HKFRSs)) The Group's first-time application of the amendment to HKAS 21, "Lack of Exchangeability," effective January 1, 2025, had no material impact on its financial position and performance - The Group has applied for the first time the amendment to HKAS 21, "Lack of Exchangeability," which became effective on January 1, 2025[11](index=11&type=chunk) - The application of this amendment **did not have a material impact** on the Group's financial position and performance[11](index=11&type=chunk) [4. Issued but not yet effective HKFRSs](index=6&type=section&id=4.%20Issued%20but%20not%20yet%20effective%20HKFRSs) The Group has not early adopted several new and revised HKFRSs, and management's initial assessment indicates no significant impact on the Group's financial performance and position upon their adoption - The Group has not early adopted a number of new standards, amendments, and interpretations that have been issued but are not yet effective, including HKFRS 18 and amendments to HKFRS 9 and HKFRS 7[12](index=12&type=chunk)[14](index=14&type=chunk) - The initial assessment indicates that these amendments are **not expected to have a significant impact** on the Group's financial performance and position when they become effective[12](index=12&type=chunk) [5. Significant Accounting Estimates and Judgements](index=6&type=section&id=5.%20Significant%20Accounting%20Estimates%20and%20Judgements) The significant judgements, estimates, and assumptions made by management in preparing the interim financial information are consistent with those applied in the 2024 annual financial statements - The significant judgements and estimates made by management in preparing the interim financial information are the same as those applied to the annual audited consolidated financial statements[13](index=13&type=chunk) - Actual results may differ from these estimates[13](index=13&type=chunk) [6. Revenue and Segment Information](index=7&type=section&id=6.%20Revenue%20and%20Segment%20Information) The Group operates in a single segment, providing steel structure engineering services in Hong Kong, with revenue for the period primarily derived from a few major customers - The Group has only one operating segment, which is providing steel structure engineering services in Hong Kong[15](index=15&type=chunk) Revenue from Steel Structure Engineering (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue from steel structure engineering | 165,519 | 171,708 | Revenue from Major Customers (HK$'000) | Customer | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Customer 1 | 70,507 | 79,327 | | Customer 2 | 24,549 | N/A* | | Customer 3 | 21,418 | N/A* | | Customer 4 | N/A* | 25,009 | | Customer 5 | N/A* | 24,232 | * Represents less than 10% of the revenue for the respective period. [7. Other Income and Other Net Gains](index=7&type=section&id=7.%20Other%20Income%20and%20Other%20Net%20Gains) For the six months ended June 30, 2025, the Group's other income and other net gains remained stable, with gains from life insurance contracts offset by losses on the disposal of equipment Other Income and Other Net Gains (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Government grants | 4 | 3 | | Change in value of life insurance contracts | 110 | 71 | | Loss on disposal of plant and equipment | (41) | – | | **Total** | **73** | **74** | [8. Operating Expenses](index=8&type=section&id=8.%20Operating%20Expenses) This section details the Group's main operating expenses, including employee benefit expenses, which decreased, and depreciation charges for property and right-of-use assets, which increased Major Operating Expenses (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Employee benefit expenses | 17,262 | 18,429 | | Depreciation of property, plant and equipment | 3,229 | 779 | | Depreciation of right-of-use assets | 2,801 | 1,867 | [9. Finance (Costs)/Income, Net](index=8&type=section&id=9.%20Finance%20(Costs)%2FIncome%2C%20Net) The Group recorded net finance costs of HK$163,000 for the period, a shift from net finance income in the prior year, primarily due to lower interest income and higher lease liability interest expenses Finance (Costs)/Income, Net (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Interest income on bank deposits | 93 | 380 | | Interest expense on bank borrowings | (125) | (229) | | Interest expense on lease liabilities | (131) | (50) | | **Finance (costs)/income, net** | **(163)** | **101** | [10. Income Tax Expense](index=8&type=section&id=10.%20Income%20Tax%20Expense) The Group is not subject to income tax in the Cayman Islands and BVI, while Hong Kong profits tax is calculated at 16.5% (or 8.25% on the first HK$2.0 million for qualifying entities) and Mainland China at 25% - Hong Kong profits tax is calculated at **16.5%**, with the first HK$2.0 million for qualifying entities taxed at **8.25%**[21](index=21&type=chunk) - The corporate income tax rate in Mainland China is **25%**[21](index=21&type=chunk) Income Tax Expense (HK$'000) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | | Income tax expense | (2,169) | (3,941) | [11. Earnings Per Share](index=9&type=section&id=11.%20Earnings%20Per%20Share) Basic earnings per share for the six months ended June 30, 2025, decreased to 0.54 HK cents from 0.81 HK cents in the prior year, with diluted earnings per share being the same due to no potential dilutive shares Earnings Per Share Calculation (HK$'000/ '000 shares) | Item | 2025 (HK$'000/ '000 shares) | 2024 (HK$'000/ '000 shares) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 10,832 | 13,402 | | Weighted average number of ordinary shares in issue | 2,000,000 | 1,656,164 | | Earnings per share (HK cents) | 0.54 | 0.81 | - Diluted earnings per share is the same as basic earnings per share as there were **no potential dilutive ordinary shares** outstanding[23](index=23&type=chunk) [12. Dividends](index=9&type=section&id=12.%20Dividends) No dividend was paid or declared for the six months ended June 30, 2025; however, an interim dividend of approximately HK$26.586 million was declared in January 2024 - The Company **did not pay or declare any dividend** for the six months ended June 30, 2025[24](index=24&type=chunk) - In January 2024, the Company declared an interim dividend of approximately **HK$26.586 million**, which was partly settled in cash and partly by offsetting amounts due from directors and related companies[24](index=24&type=chunk) [13. Trade Receivables](index=9&type=section&id=13.%20Trade%20Receivables) Net trade receivables decreased to HK$52.072 million as of June 30, 2025, from HK$63.874 million at year-end 2024, with credit periods generally ranging from 30 to 60 days Trade Receivables (HK$'000) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables | 55,996 | 67,870 | | Less: Provision for impairment | (3,924) | (3,996) | | **Net** | **52,072** | **63,874** | Ageing Analysis of Trade Receivables (HK$'000) | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Within 90 days | 49,986 | 64,042 | | 91 to 180 days | 1,459 | – | | Over 180 days | 4,551 | 3,828 | | **Total** | **55,996** | **67,870** | - The credit period granted to customers is generally between **30 to 60 days**[26](index=26&type=chunk) [14. Contract Assets and Contract Liabilities](index=10&type=section&id=14.%20Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2025, net contract assets increased slightly to HK$96.058 million, while contract liabilities decreased, with assets primarily comprising unbilled revenue and retention money receivables Contract Assets and Contract Liabilities (HK$'000) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **Contract assets** | | | | Unbilled revenue | 25,637 | 20,789 | | Retention money receivables for steel structure engineering | 73,990 | 77,746 | | Gross contract assets | 99,627 | 98,535 | | Less: Provision for impairment | (3,569) | (3,091) | | **Net contract assets** | **96,058** | **95,444** | | **Contract liabilities** | **(1,126)** | **(1,958)** | [15. Trade Payables and Retention Money Payables](index=10&type=section&id=15.%20Trade%20Payables%20and%20Retention%20Money%20Payables) Total trade and retention money payables decreased to HK$25.439 million as of June 30, 2025, from HK$32.969 million at year-end 2024, with the majority of balances aged within 90 days Trade Payables and Retention Money Payables (HK$'000) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 23,469 | 31,431 | | Retention money payables | 1,970 | 1,538 | | **Total** | **25,439** | **32,969** | Ageing Analysis of Trade Payables (HK$'000) | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Within 30 days | 8,580 | 16,639 | | 31 to 60 days | 4,580 | 3,683 | | 61 to 90 days | 3,437 | 5,123 | | Over 90 days | 6,872 | 5,986 | | **Total** | **23,469** | **31,431** | [Business Review and Outlook](index=12&type=section&id=Business%20Review%20and%20Outlook) The Group navigates challenges in Hong Kong's property market through robust bidding, cost control, and efficiency, while exploring new opportunities in solar panels and prefabricated housing [Business Review](index=12&type=section&id=Business%20Review) As a Hong Kong steel structure engineering contractor, the Group successfully listed in March 2024 and is navigating market instability through strategic bidding, cost control, and operational efficiency - The Group, a steel structure engineering contractor in Hong Kong since 1999, was **successfully listed on March 8, 2024**[31](index=31&type=chunk) - Facing instability in Hong Kong's property market, the Group has adopted a **prudent and flexible approach**, focusing on strategic bidding, cost control, and operational efficiency[31](index=31&type=chunk) Project Count and Value of Uncompleted Projects | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of projects on hand | 26 | 22 | | Value of uncompleted projects | Approx. HK$255.7 million | Approx. HK$322.1 million | [Prospects](index=13&type=section&id=Prospects) Despite property market volatility, major public and infrastructure projects are expected to drive demand for steel engineering, while the Group expands into solar panels and prefabricated housing - Large-scale public and infrastructure projects, such as the **Tung Chung New Town Extension and the New Central Harbourfront**, will continue to drive stable demand for steel structure engineering[34](index=34&type=chunk) - The Group has established a subsidiary to **enter the solar panel market**, aiming to explore opportunities in the sustainable energy sector[35](index=35&type=chunk) - The Group is considering expanding into the **prefabricated housing and building materials business** to provide customizable and eco-friendly solutions[35](index=35&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) This section reviews the Group's financial performance for the six months ended June 30, 2025, detailing changes in key metrics such as revenue, costs, gross profit, and impairment losses [Revenue](index=13&type=section&id=Revenue) Revenue for the six months ended June 30, 2025, was approximately HK$165.5 million, a 3.6% decrease from the prior year, mainly due to slower certification progress affecting project timelines Revenue Change (HK$ million) | Period | Revenue (HK$ million) | | :--- | :--- | | Six months ended June 30, 2025 | 165.5 | | Six months ended June 30, 2024 | 171.7 | | **Change** | **-6.2 (-3.6%)** | - The decrease in revenue was primarily attributable to **slower certification progress**, which affected project timelines and revenue recognition[36](index=36&type=chunk) [Cost of Services](index=14&type=section&id=Cost%20of%20Services) The cost of services, comprising material costs, subcontracting fees, and direct labor, remained stable at approximately HK$139.9 million for the six months ended June 30, 2025 - Cost of services mainly includes **material costs, subcontracting fees, direct labor costs, and transportation and machinery service fees**[37](index=37&type=chunk) Cost of Services (HK$ million) | Period | Cost of Services (HK$ million) | | :--- | :--- | | Six months ended June 30, 2025 | 139.9 | | Six months ended June 30, 2024 | 139.1 | | **Change** | **+0.8 (+0.6%)** | [Gross Profit and Gross Profit Margin](index=14&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit decreased by 21.6% to HK$25.6 million, and the gross profit margin fell to 15.5% from 19.0%, driven by competitive pricing for new projects and the completion of higher-margin projects Gross Profit and Gross Profit Margin Change | Indicator | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (HK$ million) | 25.6 | 32.6 | -7.0 (-21.6%) | | Gross Profit Margin | 15.5% | 19.0% | -3.5 percentage points | - The decrease in gross profit margin was mainly due to **more competitive pricing** to secure new projects and the completion of certain projects with relatively higher gross profit margins[38](index=38&type=chunk) [Other Income and Other Net Gains](index=14&type=section&id=Other%20Income%20and%20Other%20Net%20Gains) Other income and net gains remained stable, with an increase in the value of life insurance contracts being offset by a loss on the disposal of plant and equipment Other Income and Other Net Gains (HK$'000) | Period | Amount (HK$'000) | | :--- | :--- | | Six months ended June 30, 2025 | 73 | | Six months ended June 30, 2024 | 74 | - The increase in the cash surrender value of life insurance contracts to approximately HK$110,000 was offset by a **loss on disposal of plant and equipment of approximately HK$41,000**[39](index=39&type=chunk) [Administrative Expenses](index=14&type=section&id=Administrative%20Expenses) Administrative expenses increased by 12.6% to HK$12.1 million, primarily due to higher depreciation charges from relocating to a new office and increased entertainment expenses Administrative Expenses Change (HK$ million) | Period | Administrative Expenses (HK$ million) | | :--- | :--- | | Six months ended June 30, 2025 | 12.1 | | Six months ended June 30, 2024 | 10.7 | | **Change** | **+1.4 (+12.6%)** | - The increase in administrative expenses was mainly due to **higher depreciation charges** from the relocation to a new office and an increase in entertainment expenses[40](index=40&type=chunk) [(Impairment losses)/reversal of impairment losses on financial and contract assets](index=14&type=section&id=(Impairment%20losses)%2Freversal%20of%20impairment%20losses%20on%20financial%20and%20contract%20assets) The Group recorded an impairment loss of approximately HK$0.4 million for the period, compared to a reversal of impairment loss of HK$0.1 million in the prior year, indicating a deterioration in asset quality Impairment on Financial and Contract Assets (HK$'000) | Period | Amount (HK$'000) | | :--- | :--- | | Six months ended June 30, 2025 (Impairment loss) | (406) | | Six months ended June 30, 2024 (Reversal of impairment loss) | 112 | [Profit for the Period](index=15&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by 19.2% to HK$10.8 million from HK$13.4 million in the prior year, with the net profit margin remaining relatively stable at 6.5% Profit for the Period and Net Profit Margin Change | Indicator | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Profit for the period (HK$ million) | 10.8 | 13.4 | -2.6 (-19.2%) | | Net profit margin | 6.5% | 7.8% | -1.3 percentage points | [Liquidity, Financial Resources and Capital Structure](index=15&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains a healthy liquidity position with net current assets of HK$228.8 million, a capital structure composed of equity and reserves, and a decreased gearing ratio [Liquidity Position](index=15&type=section&id=Liquidity%20Position) The Group maintains a sound liquidity position with net current assets of approximately HK$228.8 million and cash and cash equivalents of HK$116.1 million Liquidity Position (HK$ million) | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Net current assets | 228.8 | 218.9 | | Bank deposits with maturity over 3 months | 5.1 | 5.1 | | Cash and cash equivalents | 116.1 | 100.0 | - The main sources of liquidity are **equity capital, cash generated from operations, and bank borrowings**[43](index=43&type=chunk) [Bank Borrowings](index=15&type=section&id=Bank%20Borrowings) As of June 30, 2025, bank borrowings decreased to approximately HK$5.3 million from HK$5.9 million at year-end 2024, with all borrowings denominated in HKD and carrying floating interest rates Bank Borrowings (HK$ million) | Period | Bank Borrowings (HK$ million) | | :--- | :--- | | June 30, 2025 | 5.3 | | December 31, 2024 | 5.9 | - Bank borrowings are denominated in **Hong Kong dollars** and bear interest at **floating rates**[44](index=44&type=chunk) [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) The gearing ratio decreased from approximately 5.0% at year-end 2024 to 4.7% as of June 30, 2025, mainly due to a decrease in total equity during the period Gearing Ratio Change | Period | Gearing Ratio | | :--- | :--- | | June 30, 2025 | 4.7% | | December 31, 2024 | 5.0% | - The decrease in the gearing ratio was primarily due to the **decrease in total equity** for the six months ended June 30, 2025[45](index=45&type=chunk) [Net Debt to Equity Ratio](index=15&type=section&id=Net%20Debt%20to%20Equity%20Ratio) The net debt to equity ratio is not applicable as the Group maintained a net cash position on both June 30, 2025, and December 31, 2024 - The net debt to equity ratio is not applicable as the Group recorded a **net cash position**[47](index=47&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) This section covers diverse information including capital expenditure, contingent liabilities, foreign exchange risk, employee policies, use of proceeds, and dividend policy [Capital Expenditure](index=16&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure increased to approximately HK$1.9 million from HK$1.3 million in the same period last year Capital Expenditure (HK$ million) | Period | Capital Expenditure (HK$ million) | | :--- | :--- | | Six months ended June 30, 2025 | 1.9 | | Six months ended June 30, 2024 | 1.3 | [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) The Group faces several personal injury claims from employee or subcontractor incidents, but these are considered covered by insurance and are not expected to have a material adverse financial impact - The Group is facing several **personal injury claims** arising from accidents involving its employees or subcontractors[50](index=50&type=chunk) - The Board believes these claims are **covered by insurance** and will not have any material adverse impact on the financial position or operations, thus no provision has been made[50](index=50&type=chunk) [Off-balance Sheet Arrangements and Commitments](index=16&type=section&id=Off-balance%20Sheet%20Arrangements%20and%20Commitments) The Directors confirm that as of June 30, 2025, the Group had no off-balance sheet arrangements or commitments - As at June 30, 2025, the Group **did not have any off-balance sheet arrangements or commitments**[51](index=51&type=chunk) [Pledge of Assets](index=16&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's bank borrowings were secured by life insurance contracts and guaranteed by the Company - As at June 30, 2025, bank borrowings were **secured by life insurance contracts** and guaranteed by the Company[52](index=52&type=chunk) [Significant Investments, Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures](index=16&type=section&id=Significant%20Investments%2C%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the six months ended June 30, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had **no significant investments, acquisitions, or disposals** of subsidiaries, associates, and joint ventures[53](index=53&type=chunk) [Foreign Exchange Risk](index=16&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from RMB-denominated costs against its HKD revenue but has not experienced significant difficulties and will monitor the need for hedging arrangements - The Group's revenue is received in HKD while some costs are settled in RMB, exposing it to **fluctuations in the HKD/RMB exchange rate**[54](index=54&type=chunk) - For the six months ended June 30, 2025, the Group did not experience any material difficulties in its operations or liquidity due to exchange rate fluctuations[54](index=54&type=chunk) - The Group has **not used any financial instruments for hedging purposes** but will monitor and implement hedging arrangements when appropriate[55](index=55&type=chunk) [Financial Instruments](index=17&type=section&id=Financial%20Instruments) The Group's main financial instruments include receivables, payables, bank deposits, cash, bank borrowings, and lease liabilities, with management taking prudent measures to manage associated risks - Major financial instruments include trade receivables, other receivables and deposits, bank deposits, cash and cash equivalents, trade payables, accruals and other payables, bank borrowings, and lease liabilities[56](index=56&type=chunk) - Management manages the related risks to ensure that appropriate measures are implemented in a timely and effective manner[56](index=56&type=chunk) [Employees and Remuneration Policies](index=17&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group had 142 employees, with remuneration packages determined by qualifications, position, and performance, and director remuneration set by the Board based on committee recommendations Number of Employees | Period | Number of Employees | | :--- | :--- | | June 30, 2025 | 142 | | December 31, 2024 | 137 | - Remuneration packages, including salary and bonuses, are determined based on **qualifications, position, rank, and annual performance appraisals**[57](index=57&type=chunk) [Events after the Reporting Period](index=17&type=section&id=Events%20after%20the%20Reporting%20Period) No other significant events occurred between the end of the reporting period and the date of this interim results announcement - No other significant events have occurred from the end of the reporting period up to the date of this interim results announcement[58](index=58&type=chunk) [Use of Proceeds](index=17&type=section&id=Use%20of%20Proceeds) Net proceeds from the March 2024 listing were approximately HK$91.0 million, of which HK$57.2 million has been used, with the remainder allocated for land acquisition and manpower expansion - The net proceeds from the share offer were approximately **HK$91.0 million**[59](index=59&type=chunk) Use of Net Proceeds (HK$ million) | Use | Intended Use | Utilised as of Dec 31, 2024 | Utilised for the six months ended Jun 30, 2025 | Actual Utilised as of Jun 30, 2025 | Unutilised as of Jun 30, 2025 | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Funding upfront project costs | 56.0 | 56.0 | – | 56.0 | – | N/A | | Acquiring a plot of land and establishing a new production facility | 33.1 | – | – | – | 33.1 | Dec 2025 | | Expanding and strengthening manpower | 1.9 | 0.6 | 0.6 | 1.2 | 0.7 | Dec 2025 | | **Total** | **91.0** | **56.6** | **0.6** | **57.2** | **33.8** | | - The expansion of manpower has been delayed, but the Group will continue to actively recruit potential candidates[60](index=60&type=chunk) [Future Plans for Material Investments and Capital Assets](index=18&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no other plans for material investments or capital assets beyond those disclosed in the prospectus - Other than as disclosed in the "Future Plans and Use of Proceeds" section of the prospectus, the Group had **no other plans for material investments and capital assets** as at June 30, 2025[62](index=62&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board resolved not to recommend an interim dividend for the six months ended June 30, 2025; an interim dividend of approximately HK$26.586 million was declared in January 2024 - The Board of Directors has resolved **not to recommend the payment of an interim dividend** for the six months ended June 30, 2025[63](index=63&type=chunk) - In January 2024, the Company declared an interim dividend of approximately **HK$26.586 million**[63](index=63&type=chunk) [Corporate Governance and Other Disclosures](index=19&type=section&id=Corporate%20Governance%20and%20Other%20Disclosures) The Group is committed to high standards of corporate governance, complying with the Corporate Governance Code, and this section covers related disclosures on securities dealings, share options, and audit committee functions [Corporate Governance Code](index=19&type=section&id=Corporate%20Governance%20Code) The Company is committed to maintaining high standards of corporate governance and has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules - The Company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[64](index=64&type=chunk) - For the six months ended June 30, 2025, the Company has **complied with the applicable code provisions** of the Corporate Governance Code[64](index=64&type=chunk) [Model Code for Securities Transactions](index=19&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all Directors have confirmed their compliance for the six months ended June 30, 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[65](index=65&type=chunk) - All Directors have confirmed their **compliance with the required standards** set out in the Model Code for the six months ended June 30, 2025[65](index=65&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries had purchased, sold or redeemed** any of the Company's listed securities[66](index=66&type=chunk) [Share Option Scheme](index=19&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on February 5, 2024, for a period of 10 years, and no options were granted, exercised, cancelled, forfeited, or lapsed during the period - The Company adopted a share option scheme on **February 5, 2024**, which is valid for a period of 10 years[67](index=67&type=chunk) - For the six months ended June 30, 2025, **no share options were granted, exercised, cancelled, forfeited, or lapsed** under the scheme[67](index=67&type=chunk) [Management Contracts](index=19&type=section&id=Management%20Contracts) No contracts concerning the management and administration of the whole or any substantial part of the Company's business were entered into or existed during the period, other than service contracts with directors or employees - During the six months ended June 30, 2025, **no contracts concerning the management and administration** of the whole or any substantial part of the Company's business were entered into or existed, other than service contracts[68](index=68&type=chunk) [Sufficient Public Float](index=19&type=section&id=Sufficient%20Public%20Float) Based on publicly available information, the Company has maintained a public float of at least 25% of its total issued share capital during the six months ended June 30, 2025 - During the six months ended June 30, 2025, at least **25% of the Company's total issued share capital** was held by the public[69](index=69&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising three independent non-executive directors, is responsible for overseeing financial reporting, internal controls, and the external audit process - The Audit Committee comprises independent non-executive Directors **Mr. Yu Chun Fai (Chairman), Mr. Che Hao Hua, and Mr. Liu Chi Keung**[70](index=70&type=chunk) - Its primary duties include recommending the appointment of external auditors, reviewing financial statements, and overseeing the financial reporting process, internal controls, and risk management systems[70](index=70&type=chunk) [Audit Committee's Review of Interim Financial Results](index=20&type=section&id=Audit%20Committee's%20Review%20of%20Interim%20Financial%20Results) The Audit Committee has reviewed the Group's unaudited interim financial information for the period and confirmed its compliance with applicable accounting standards and disclosure requirements - The Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, has been **reviewed by the Company's Audit Committee**[71](index=71&type=chunk) - The Audit Committee is of the opinion that the preparation of such financial information complies with applicable accounting standards and requirements, as well as the Listing Rules, and that adequate disclosures have been made[71](index=71&type=chunk) [Publication of Interim Results and Interim Report](index=20&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement and interim report are available on the websites of the Company and the Hong Kong Stock Exchange - The interim results announcement and interim report are published on the Company's website at **www.wing-kei.com.hk** and the Stock Exchange's website at **www.hkexnews.hk**[72](index=72&type=chunk) [Appreciation](index=20&type=section&id=Appreciation) The Board extends its sincere gratitude to the management, staff, shareholders, business partners, and other professional parties for their hard work, dedication, and continuous support - The Board expresses its sincere gratitude to the Group's management and all staff for their hard work and dedication, and to shareholders, business partners, and other professional parties for their support[73](index=73&type=chunk) [Board of Directors](index=20&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board comprises four executive directors, two non-executive directors, and three independent non-executive directors - The Board of Directors includes **executive Directors** Mr. Chan Yam Ki, Mr. Chan Yam Kong, Ms. Chan Suk Man, and Mr. Cheung Wang Fai[74](index=74&type=chunk) - **Non-executive Directors** include Mr. Chan Wing Hong and Ms. Choi Chik Cheong[74](index=74&type=chunk) - **Independent non-executive Directors** include Mr. Che Hao Hua, Mr. Yu Chun Fai, and Mr. Liu Chi Keung[74](index=74&type=chunk)

Core Viewpoint - Hongji Group (02535.HK) announced a board meeting scheduled for August 28, 2025, to consider and approve the unaudited consolidated interim results for the six months ending June 30, 2025, and to discuss the proposal for an interim dividend, if any [1] Related Events - Hongji Group (02535.HK) plans to hold a board meeting on August 28 to approve interim results [1] - Xulun Enterprises has been appointed as a compliance advisor for Hongji Group [1]

泓基集團（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，本公司將於2025年8月28日（星期四）舉行董事會會議，藉以（其中包括）(1)考慮及批准本集團 截至2025年6月30日止六個月之未經審核綜合中期業績及分別於聯交所網站及本公司網站刊發；及(2) 考慮建議派付中期股息（如有）。 香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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，並明確表示概不就因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 WK Group (Holdings) Limited 泓基集團（控股）有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2535） 董事會會議通告 主席兼非執行董事 陳永康 香港，2025年8月14日 於本公告日期，董事會包括執行董事陳鑫基先生、陳鑫江先生、陳淑雯女士及張宏輝先生；非執行 董事陳永康先生及蔡植昌女士；及獨立非執行董事車灝華先生、余俊傑先生及廖志崑先生。 承董事會命 泓基集團（控股）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 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: 泓基集團(控股)有限公司 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 II. 已發行股份及/或庫存股份變動 | 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) | 02535 | 說明 | 普通股 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 2,000,000,000 | | 0 | | 2,000,000,000 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | 2,000,000,000 | | 0 | | 2,000,000,000 | 第 2 頁 共 10 頁 v 1.1.1 III.已 ...

Financial Performance - Revenue increased by approximately HK$28.2 million or 7.6%, from approximately HK$370.2 million for the year ended 31 December 2023 to approximately HK$398.5 million for the year ended 31 December 2024[16] - The Group recorded a gross profit of approximately HK$71.4 million for the year ended 31 December 2024, compared to approximately HK$71.1 million in 2023[16] - Profit attributable to owners of the Company was approximately HK$31.5 million for the year ended 31 December 2024, up from approximately HK$25.2 million in 2023[16] - Basic earnings per share remained stable at approximately HK1.7 cents for the year ended 31 December 2024, consistent with 2023[16] - Profit for the year increased by approximately HK$6.3 million or 25.0%, from approximately HK$25.2 million for the year ended 31 December 2023 to approximately HK$31.5 million for the year ended 31 December 2024[49] - Net profit margin increased from approximately 6.8% for the year ended 31 December 2023 to approximately 7.9% for the year ended 31 December 2024[49] Revenue and Project Management - The Group's emphasis on large-scale infrastructure projects ensured a consistent revenue stream, resilient to economic fluctuations[19] - The Group's revenue increased by approximately HK$28.2 million or 7.6%, from approximately HK$370.2 million for the year ended 31 December 2023 to approximately HK$398.5 million for the year ended 31 December 2024, mainly due to higher works performed on sizeable projects[25] - As of 31 December 2024, the Group had 22 projects on hand with a backlog value of approximately HK$322.1 million, down from approximately HK$550.5 million as of 31 December 2023[26] - The Group is focusing on the collectability of trade receivables and the number of contracts in tendering to ensure steady revenue and cash flow streams[27] Cost and Expenses - The cost of services increased by approximately HK$27.9 million or 9.3%, from approximately HK$299.1 million for the year ended 31 December 2023 to approximately HK$327.1 million for the year ended 31 December 2024[35] - Gross profit remained stable at approximately HK$71.4 million for the year ended 31 December 2024, with a slight decrease in gross profit margin from approximately 19.2% to 17.9% due to lower margins on new projects[36] - Administrative expenses increased by approximately HK$7.4 million or 38.7%, from approximately HK$19.1 million for the year ended 31 December 2023 to approximately HK$26.5 million for the year ended 31 December 2024[43] Investments and Financial Management - The Group continued to invest in factory and machinery to enhance productivity and efficiency despite economic challenges[19] - The Group maintained a net current assets balance of approximately HK$218.9 million as of 31 December 2024, up from approximately HK$117.7 million in 2023[50] - Cash and cash equivalents increased to approximately HK$100.0 million as of 31 December 2024, compared to approximately HK$8.7 million in 2023[50] - Bank borrowings decreased to approximately HK$5.9 million as of 31 December 2024, down from approximately HK$9.9 million in 2023[52] - Gearing ratio decreased from approximately 9.5% as of 31 December 2023 to approximately 5.0% as of 31 December 2024[53] - Capital expenditures for the year ended 31 December 2024 were approximately HK$17.0 million, significantly up from approximately HK$1.4 million in 2023[59] Dividends - The Board resolved not to recommend the payment of a final dividend for the year ended 31 December 2024[16] - The Group declared an interim dividend of approximately HK$26.6 million in January 2024, with HK$10.0 million settled in cash and HK$16.6 million offset against amounts due from Directors and related companies[91] - No final dividend was recommended for the year ended December 31, 2024, following a previous declaration of HK$20 million in dividends for the year ended December 31, 2023[92] Corporate Governance and Leadership - The Group has a strong leadership team with extensive experience in their respective fields, enhancing its operational capabilities[113] - The Group's board includes controlling shareholders, ensuring alignment in strategic decision-making[111] - The Company has complied with the Corporate Governance Code and recommended best practices since the Listing Date[141] - The Board consists of eight Directors, including three executive Directors and three independent non-executive Directors[150] - The Company has established Board committees to delegate various duties and responsibilities[149] Workforce and Diversity - As of December 31, 2024, the Group employed 137 individuals, a decrease from 148 in 2023, with remuneration packages including salary and bonuses[77] - The Group has 137 employees as of December 31, 2024, with 15 females, representing approximately 10.9%[180] - The Group's target is to maintain the proportion of female employees at no less than 10% over the next three years[180] Risk Management - The Group did not experience any material difficulties or impacts on its operations or liquidity due to currency exchange fluctuations during the year ended December 31, 2024[72] - The Group did not use any financial instruments for hedging purposes during the year ended December 31, 2024, and will monitor exchange rate risks closely[73] Strategic Outlook - The Group remains cautiously optimistic about the structural steelwork industry in Hong Kong despite current economic challenges[30] - The Group aims to expand its market share by competing for structural steelwork projects[143] - The Group plans to increase its production capacity of structural steel[143] - The Group is committed to prudent financial management to ensure optimal finance costs and capital sufficiency[143] - The workforce is expected to be expanded as part of the Group's growth strategy[143]

Financial Performance - Revenue increased by approximately HKD 28.2 million or 7.6% to approximately HKD 398.5 million for the year ended December 31, 2024, compared to approximately HKD 370.2 million for the year ended December 31, 2023[5] - Gross profit for the year ended December 31, 2024, was approximately HKD 71.4 million, slightly up from approximately HKD 71.1 million in 2023[5] - Profit attributable to owners of the company for the year ended December 31, 2024, was approximately HKD 31.5 million, compared to approximately HKD 25.2 million in 2023, representing a growth of 25.8%[5] - Basic earnings per share remained stable at approximately HKD 1.7 cents for both years ended December 31, 2024, and 2023[5] - The net profit for the year increased by approximately HKD 6.3 million or 25.0%, from HKD 25.2 million in 2023 to HKD 31.5 million in 2024, with a net profit margin rising from 6.8% to 7.9%[40] Assets and Liabilities - Total assets increased to approximately HKD 313.3 million as of December 31, 2024, from approximately HKD 257.1 million as of December 31, 2023[7] - Total liabilities decreased to approximately HKD 59.9 million in 2024 from approximately HKD 120.8 million in 2023, a reduction of 50.4%[8] - Trade receivables rose to approximately HKD 63.9 million in 2024 from approximately HKD 43.2 million in 2023, indicating a growth of 47.9%[7] - As of December 31, 2024, the group's net current assets amounted to approximately HKD 218.9 million, an increase from HKD 117.7 million in 2023[41] - Bank borrowings decreased to approximately HKD 5.9 million as of December 31, 2024, down from HKD 9.9 million in 2023[42] - The debt-to-equity ratio improved from approximately 9.5% on December 31, 2023, to about 5.0% on December 31, 2024, due to a reduction in bank borrowings and an increase in total equity[43] Dividends and Shareholder Returns - The board of directors decided not to recommend a final dividend for the year ended December 31, 2024[5] - The company declared an interim dividend of approximately HKD 26,586,000 in January 2024, with HKD 10,000,000 paid in cash and HKD 16,586,000 offset against amounts receivable from directors and related companies[24] - The group declared an interim dividend of approximately HKD 26.6 million in January 2024, with HKD 10.0 million paid in cash and HKD 16.6 million offset against amounts receivable from directors and related companies[58] Revenue Sources - The company's revenue from steel structure engineering for 2024 was HKD 398,463,000, representing an increase of 7.8% from HKD 370,226,000 in 2023[14] - Revenue from major customers included HKD 220,721,000 from Customer 1, which significantly increased from HKD 76,487,000 in 2023, indicating a growth of 188.5%[16] Expenses and Costs - The total expenses for employee benefits, including directors' remuneration, were HKD 40,233,000 in 2024, slightly down from HKD 40,743,000 in 2023[18] - The administrative expenses increased by approximately HKD 7.4 million or 38.7%, from HKD 19.1 million in 2023 to HKD 26.5 million in 2024, primarily due to increased costs related to financial and administrative staff, legal and professional fees post-listing, and entertainment expenses[38] - The service costs increased from approximately HKD 299.1 million in 2023 to HKD 327.1 million in 2024, reflecting a rise of about HKD 27.9 million or 9.3% due to increased project volumes[35] Project and Contract Management - The company had 22 ongoing projects as of December 31, 2024, with an unfinished project value of approximately HKD 322.1 million, down from HKD 550.5 million in 2023[32] - The total value of contract assets decreased from HKD 165.7 million in 2023 to HKD 98.5 million in 2024, with a net value of HKD 95.4 million after impairment provisions[11] Financial Health and Outlook - The company remains cautiously optimistic about the steel structure engineering industry in Hong Kong despite the current economic uncertainties affecting the construction sector[33] - The company has begun evaluating the impact of revised accounting standards, which are expected to take effect in the coming years, but no significant impact on financial performance is anticipated[15] - The company recorded a financial asset and contract asset impairment loss of approximately HKD 64,000 for the year ended December 31, 2024, compared to HKD 1.6 million in 2023[39] Corporate Governance and Compliance - The audit committee has reviewed the annual performance for the year ending December 31, 2024, confirming compliance with applicable financial reporting standards[67] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[73] - The company has maintained at least 25% of its total issued share capital held by the public from the listing date to the announcement date[66] Capital and Investments - Capital expenditures for the year ended December 31, 2024, were approximately HKD 17.0 million, significantly higher than HKD 1.4 million in 2023[46] - The total amount raised from the share offering was HKD 125 million, with a net amount of approximately HKD 91.0 million after deducting underwriting commissions and related expenses[55] - As of December 31, 2024, the group had utilized HKD 56.0 million of the net proceeds for preliminary project costs, with HKD 33.1 million allocated for acquiring land and establishing a new production facility[55] Miscellaneous - The company has adopted a stock option plan effective from February 5, 2024, which will remain valid for 10 years[63] - The company expresses gratitude to management, employees, shareholders, and business partners for their support during the period[72] - The annual general meeting is scheduled for June 23, 2025, with a suspension of share transfer registration from June 18 to June 23, 2025[69][70] - The annual results announcement and annual report for the year ending December 31, 2024, will be published on the company's website and the stock exchange's website[71] - The company has not purchased, sold, or redeemed any of its listed securities from the listing date to the announcement date[62] - No management or administrative contracts related to significant parts of the company's business have been established or are in effect, except for service contracts with directors or full-time employees[65] - The group has not experienced any significant difficulties or impacts from foreign exchange fluctuations during the year ended December 31, 2024[51] - The audit firm, PwC, has verified the consistency of the financial statements with the draft consolidated financial statements for the year ending December 31, 2024[68]