Financial Performance - For the year ended December 31, 2021, the group's revenue was approximately MOP 292.3 million, a decrease of about 42.3% compared to MOP 506.3 million in the same period last year[1]. - The group reported a loss of approximately MOP 29.1 million for the year ended December 31, 2021, compared to a profit of approximately MOP 45.7 million for the year ended December 31, 2020[1]. - The basic loss per share for the year ended December 31, 2021, was approximately 5.8 Macanese cents, down from a basic earnings per share of 9.1 Macanese cents in 2020[1]. - The group's gross profit for the year was MOP 1.4 million, significantly lower than MOP 80.4 million in the previous year[5]. - The segment performance for renovation services showed a profit of MOP 19,119,000 in 2021, down from MOP 77,743,000 in 2020, indicating a decline of 75.5%[47]. - The company incurred a pre-tax loss of MOP 28,082,000 in 2021, compared to a profit of MOP 52,804,000 in 2020[47]. - The company reported a total administrative expense of MOP 42,225,000 in 2021, compared to MOP 25,211,000 in 2020[47]. - The income tax expense for 2021 was 1,010 thousand MOP, a significant decrease from 7,076 thousand MOP in 2020[59]. - The group recorded a net loss of approximately MOP 29.1 million for the year ended December 31, 2021, compared to a net profit of approximately MOP 45.7 million in 2020[80]. Revenue Breakdown - Revenue from renovation services was MOP 291,961,000, while maintenance and repair services generated MOP 325,000 in 2021[38]. - Geographically, revenue from Macau was MOP 277,393,000, down 35.5% from MOP 431,014,000 in 2020, and revenue from Hong Kong was MOP 14,893,000, down 80.2% from MOP 75,252,000 in 2020[38]. - Major clients contributed significantly, with Client A generating MOP 98,009,000 in 2021, down from MOP 156,973,000 in 2020[51]. Assets and Liabilities - Total assets decreased from MOP 495.0 million in 2020 to MOP 456.0 million in 2021[9]. - The net asset value of the group decreased from MOP 306.2 million in 2020 to MOP 276.8 million in 2021[14]. - Current liabilities decreased from MOP 192.6 million in 2020 to MOP 182.2 million in 2021[10]. - Trade payables decreased to MOP 10,548,000 in 2021 from MOP 12,168,000 in 2020[72]. - As of December 31, 2021, the group had contract liabilities amounting to MOP 23,097,000, a decrease from MOP 46,533,000 in 2020[71]. Accounting Standards - The group has adopted the revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2021, including HKFRS 16 related to COVID-19 rent concessions[20]. - The application of the revised HKFRS 16 has no significant impact on the group's current and past financial performance and disclosures[21]. - The board anticipates that the application of all new and revised HKFRS will not have a significant impact on the consolidated financial statements in the foreseeable future[27]. - The revised accounting standards clarify the definition of accounting estimates, which are monetary amounts in financial statements that involve uncertainty[34]. Dividends and Governance - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2021[1]. - The company does not recommend paying dividends to ordinary shareholders for the year ended December 31, 2021, and any future dividend payments will be at the discretion of the board[109]. - The board will consider various factors, including the group's actual and expected financial performance, before declaring dividends[109]. - The audit committee consists of three independent non-executive directors who reviewed the audited annual performance and discussed internal controls and financial reporting matters[117]. - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[113]. Employee and Operational Metrics - As of December 31, 2021, the group had 90 employees, a decrease from 110 employees in 2020[106]. - Total employee costs, including director remuneration, were approximately 49.8 million Macanese Patacas for the year ended December 31, 2021, compared to 49.7 million Macanese Patacas for the year ended December 31, 2020[106]. - The increase in employee costs was primarily due to an increase in the average number of working days for daily-paid workers[106]. Other Financial Metrics - Financing costs increased significantly to MOP 4,903,000 in 2021 from MOP 2,071,000 in 2020, representing a rise of 136.5%[55]. - Cash and cash equivalents totaled approximately 39.4 million MOP as of December 31, 2021, a decrease of about 55.1% from 87.8 million MOP as of December 31, 2020[93]. - The debt-to-equity ratio as of December 31, 2021, was approximately 29.0%, up from 27.5% as of December 31, 2020, due to a decrease in total equity[95].

Financial Performance - Total revenue increased by approximately MOP 42.6 million or 31.1% to approximately MOP 179.6 million for the six months ended June 30, 2021, compared to MOP 137.0 million for the same period in 2020[15]. - The group recorded a profit of approximately MOP 13.1 million for the six months ended June 30, 2021, compared to MOP 14.5 million for the same period in 2020[14]. - Gross profit increased by approximately MOP 2.2 million to approximately MOP 33.4 million for the six months ended June 30, 2021, with a gross margin of approximately 18.6%, down from 22.8% for the same period in 2020[19]. - Profit for the six months ended June 30, 2021, was approximately 13.1 million MOP, a decrease of about 1.4 million MOP or 9.7% compared to approximately 14.5 million MOP for the same period in 2020[27]. - The company reported a profit attributable to owners of MOP 13,066,000, compared to MOP 14,502,000 in the previous year, indicating a decrease of 9.9%[84]. - The pre-tax profit for the six months ended June 30, 2021, was MOP 15,153,000, a decrease of 12.5% from MOP 17,327,000 in the same period of 2020[110]. Revenue and Costs - Direct costs increased by approximately MOP 40.5 million or 38.3% to approximately MOP 146.2 million for the six months ended June 30, 2021, from approximately MOP 105.7 million for the same period in 2020[18]. - Other income decreased from approximately 1.3 million MOP for the six months ended June 30, 2020, to about 0.2 million MOP for the same period in 2021, primarily due to government subsidies received in 2020 amounting to approximately 1.2 million MOP[20]. - Administrative expenses increased from approximately 14.4 million MOP for the six months ended June 30, 2020, to about 15.9 million MOP for the same period in 2021, representing approximately 10.5% and 8.9% of total revenue respectively[21]. - Financing costs rose from approximately 717,000 MOP for the six months ended June 30, 2020, to about 2.1 million MOP for the same period in 2021, an increase of approximately 1.4 million MOP due to higher average outstanding bank borrowings[25]. - Income tax expenses decreased from approximately 2.8 million MOP for the six months ended June 30, 2020, to about 2.1 million MOP for the same period in 2021, with effective tax rates of approximately 16.3% and 13.8% respectively[26]. Assets and Liabilities - Cash and cash equivalents totaled approximately 52.0 million MOP as of June 30, 2021, a decrease of about 40.8% from approximately 87.8 million MOP as of December 31, 2020[30]. - The debt-to-equity ratio as of June 30, 2021, was approximately 26.2%, down from 27.5% as of December 31, 2020, due to a slight decrease in total debt from approximately 84.1 million MOP to about 83.7 million MOP[32]. - Total assets as of June 30, 2021, were MOP 320,816,000, an increase from MOP 306,329,000 at the end of 2020[86]. - Current assets increased significantly to MOP 6,894,000 from MOP 3,936,000, indicating improved liquidity[86]. - Trade receivables as of June 30, 2021, amounted to MOP 121,638,000, a decrease from MOP 165,517,000 as of December 31, 2020[121]. - Trade and other payables totaled MOP 48,740,000 as of June 30, 2021, a decrease of 42.6% from MOP 84,985,000 as of December 31, 2020[125]. Business Operations - The group completed 16 renovation projects and was awarded 25 renovation projects, all located in Macau, for the six months ended June 30, 2021[14]. - The group aims to diversify its business by exploring lithium resources, lithium battery technology, and smart garage business[13]. - The group continues to strengthen business relationships with major licensed gaming operators in Macau, which are crucial for long-term success[10]. - The group plans to provide design assistance and procurement of renovation materials to maintain its competitive advantage[13]. - The company's clients primarily include hotel and entertainment operators in Macau, with contracts mainly being fixed-price agreements[104]. Shareholder Information - As of June 30, 2021, Mr. Li, the controlling shareholder, held 337,500,000 shares, representing approximately 67.5% of the issued share capital[53]. - Major shareholders include Chiu Yu Limited with 337,500,000 shares (67.5%) and Ng Shuk Fan with the same number of shares (67.5%) as spouse equity[69]. - The company has a share option plan in place to incentivize directors and eligible employees, which is subject to specific terms and conditions[58]. - The share option scheme approved on March 18, 2019, allows for the granting of options to eligible participants to subscribe for shares, with a maximum of 50,000,000 shares, equivalent to 10% of the issued shares as of the report date[62]. - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2021, considering the overall operating performance, financial condition, and capital requirements of the group[50]. Corporate Governance - The audit committee consists of three independent non-executive directors who reviewed the unaudited interim results for the six months ended June 30, 2021[81]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests[77]. - The company has adopted the Corporate Governance Code as per the Hong Kong Stock Exchange listing rules[77]. - The board believes that the current arrangement of having the same individual serve as both chairman and CEO does not impair the balance of power and authority[77]. Economic Outlook - The Macau economy is expected to remain unstable in 2021 due to the impact of the COVID-19 pandemic, with recovery anticipated to be slow[11]. - The group believes that the economic development opportunities in Macau will remain significant despite short-term challenges[13].

Financial Performance - The group's revenue increased by approximately MOP 146.5 million or 40.7% from MOP 359.8 million in 2019 to MOP 506.3 million in 2020[18]. - The group's revenue for the year ended December 31, 2020, was approximately MOP 506.3 million, an increase of about MOP 146.5 million or 40.7% from MOP 359.8 million in 2019[24]. - The net profit for the year ended December 31, 2020, was approximately MOP 45.7 million, up about MOP 7.8 million from MOP 37.9 million in 2019[35]. - Gross profit increased to approximately MOP 80.4 million for the year ended December 31, 2020, from MOP 76.0 million in 2019, with a gross profit margin of 15.9% compared to 21.1% in the previous year[27]. - Direct costs rose to approximately MOP 425.9 million, an increase of about MOP 142.2 million or 50.1% from MOP 283.7 million in 2019, reflecting the cost increase associated with revenue growth[26]. - Other income increased to approximately MOP 2.2 million, primarily due to government grants of about MOP 2.0 million, compared to MOP 0.7 million in 2019[28]. - The group's cash and bank deposits totaled approximately MOP 87.8 million as of December 31, 2020, a significant increase of about 110.6% from MOP 41.7 million in 2019[36]. - The debt-to-equity ratio as of December 31, 2020, was approximately 27.5%, up from 4.0% in 2019, attributed to an increase in total liabilities[38]. - Administrative expenses for the year ended December 31, 2020, were approximately MOP 25.2 million, compared to MOP 22.5 million in 2019, with employee benefits accounting for about 65.1% of total administrative expenses[30]. - The income tax expense decreased to approximately MOP 7.1 million for the year ended December 31, 2020, from MOP 7.9 million in 2019, with an effective tax rate of 13.4% compared to 17.3% in the previous year[33]. - The company had distributable reserves of approximately MOP 233.6 million as of December 31, 2020, compared to MOP 235.6 million in 2019[140]. Business Operations - Revenue from renovation services accounted for approximately 99.9% of total revenue in 2020[21]. - The group aims to diversify its business by exploring lithium resources, lithium battery technology, and smart garage businesses[19]. - The group has established business relationships with major licensed gaming operators in Macau, which are crucial for its success[18]. - The group plans to strengthen its financial position to undertake more large-scale renovation projects[18]. - The group is focused on expanding its customer base and enhancing its human resources[18]. - The group has a strategy to enhance its market position in the Macau renovation industry[18]. - The majority of the group's clients are listed companies on the Hong Kong Stock Exchange[21]. - The company focuses on renovation services primarily for commercial markets, especially facilities within integrated resorts in Macau[133]. - The company’s main clients include subsidiaries of casino operators and individual customers in Macau and Hong Kong[133]. Impact of COVID-19 - The group has been impacted by the COVID-19 pandemic but is preparing for a recovery in the tourism sector[19]. - The company’s operations were not significantly impacted by the COVID-19 pandemic, with all projects resuming work without major delays[129]. - The company will continue to strengthen cost control and cash flow monitoring to mitigate uncertainties related to the pandemic[129]. Corporate Governance - The group has adopted the Corporate Governance Code and complies with the relevant rules, except for the separation of the roles of Chairman and CEO[56]. - The board consists of six directors, including three independent non-executive directors, ensuring a balance of power and independent judgment[59]. - The company has appointed three independent non-executive directors, one of whom possesses relevant professional accounting qualifications and financial management expertise[62]. - All independent non-executive directors have confirmed their independence according to the listing rules, and the board believes they are independent of the group[62]. - The company has arranged appropriate insurance to protect directors and senior management against legal actions arising from company affairs[63]. - The board holds regular meetings to discuss overall strategy and operational and financial performance, with at least 14 days' notice for regular meetings[66]. - The company has established policies allowing directors to seek independent professional advice at the company's expense[67]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, defining their respective powers and responsibilities[78]. - The Audit Committee reviewed the audited financial statements for the reporting period before submission to the board for approval[80]. - The Remuneration Committee held seven meetings during the reporting period to review and recommend remuneration policies for directors and senior management[81]. - The Nomination Committee conducted seven meetings to assess the board's structure, size, composition, and diversity, ensuring alignment with the company's diversity policy[83]. - The company emphasizes the importance of board diversity in maintaining competitive advantage, considering various factors such as skills, knowledge, gender, and experience[76]. - The board is responsible for maintaining effective internal controls and risk management systems to protect shareholder investments and company assets[85]. - The company has not established an internal audit department, with the board directly overseeing internal controls and risk management systems[87]. - The board believes that the risk management and internal control systems are adequate and effective during the reporting period[87]. - The company adheres to the Securities and Futures Ordinance and listing rules for the handling and disclosure of inside information[88]. - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position accurately as of December 31, 2020[200]. Shareholder Relations - The company has established a shareholder communication policy to ensure timely access to information for shareholders and potential investors[96]. - The annual general meeting provided a platform for constructive communication between the board and shareholders, with attendance from the chairman and external auditors[96]. - The company has a structured process for shareholders to propose resolutions at general meetings[94]. - The company’s website serves as a key resource for shareholders to access the latest financial information and business developments[96]. - The board will consider factors such as actual and expected financial performance, business conditions, and capital expenditure requirements when deciding on future dividends[123]. Strategic Initiatives - The group entered into a framework cooperation agreement with Guangdong Huihui Long Investment Co., Ltd. on October 23, 2020, regarding potential acquisition, agreeing to pay a refundable deposit of RMB 16,750,000[52]. - The company is actively involved in the development of new technologies and products in the lithium battery sector, indicating a strategic focus on innovation[107]. - The management team is committed to expanding the company's market presence and exploring potential mergers and acquisitions to drive growth[116]. Share Options and Capital Management - The stock option plan was approved by shareholders on March 18, 2019, allowing the issuance of options to eligible participants to subscribe for shares[158]. - The total number of shares that may be issued upon the exercise of options granted under the stock option plan shall not exceed 10% of the issued shares as of the date of the report, equating to 50,000,000 shares[161]. - The stock option plan is valid for ten years from April 23, 2019, until April 22, 2029, with no additional options to be granted after this period[163]. - The company must seek shareholder approval to exceed the plan authorization limit for stock options[162]. - The company is prohibited from granting options during the period surrounding the announcement of financial results[159]. - The total number of shares that may be issued upon the exercise of all options granted under the plan must not exceed 30% of the issued shares at any time[162]. - The company must issue a circular to shareholders containing relevant information before seeking approval for any options exceeding the plan authorization limit[162]. Major Shareholders - The company’s major shareholder, Mr. Li, holds 67.5% of the company’s shares through a controlled corporation[152]. - Major shareholders include Chiu Yu Limited, holding 337,500,000 shares, representing 67.5% of the issued shares[165].

Financial Performance - The financial performance for the six months ended June 30, 2020, experienced a decline due to project delays caused by the COVID-19 pandemic[10]. - Total revenue decreased by approximately 101.5 million Macau Patacas or 42.6% from about 238.5 million Macau Patacas in the six months ended June 30, 2019, to about 137.0 million Macau Patacas in the six months ended June 30, 2020, primarily due to delays in renovation projects caused by the COVID-19 pandemic[16]. - Profit for the period was approximately 14.5 million Macau Patacas, a decrease of about 3.7 million Macau Patacas or 20.3% compared to 18.2 million Macau Patacas in the same period in 2019[27]. - Revenue for the six months ended June 30, 2020, was MOP 136,972,000, a decrease of 42.5% compared to MOP 238,525,000 for the same period in 2019[83]. - Gross profit for the same period was MOP 31,224,000, down from MOP 43,378,000 in 2019, reflecting a gross margin decline[83]. - Profit before tax was MOP 17,327,000, a decrease of 23.4% from MOP 22,563,000 in the previous year[83]. - The net profit attributable to the owners of the company was MOP 14,330,000, compared to MOP 18,247,000 in 2019, representing a decline of 21.5%[83]. - Basic earnings per share for the period was MOP 0.03, down from MOP 0.10 in the same period last year[83]. - The total comprehensive income for the six months ended June 30, 2020, was 14,330 thousand MOP, down from 19,660 thousand MOP in the previous year, indicating a decrease of about 27%[119]. - For the six months ended June 30, 2020, the company reported a profit of 14,502 thousand MOP, a decrease from 19,729 thousand MOP for the same period in 2019, representing a decline of approximately 26%[115]. Revenue Sources - The company aims to expand its business scope and diversify revenue sources through strategic partnerships, including a framework cooperation agreement with Qianhai Baifu for resource exploration and development[12]. - The company is focused on renovation services primarily for commercial markets, especially within integrated resorts in Macau[8]. - The company’s revenue primarily comes from providing renovation and maintenance services in Macau, reflecting its core business focus[130]. - The revenue from renovation services was MOP 136,511, while maintenance and repair services contributed MOP 461 for the six months ended June 30, 2020[135]. Financial Position - Cash and cash equivalents decreased by approximately 5.8% from about 41.7 million Macau Patacas at December 31, 2019, to about 39.3 million Macau Patacas at June 30, 2020[28]. - Total bank borrowings and overdrafts increased from approximately 10.5 million Macau Patacas to about 26.7 million Macau Patacas[29]. - The debt-to-equity ratio increased to approximately 9.7% as of June 30, 2020, compared to about 4.0% at December 31, 2019[30]. - The company’s total equity as of June 30, 2020, was 274,781 thousand MOP, an increase from 260,451 thousand MOP as of December 31, 2019, indicating a growth of about 5%[119]. - Current liabilities increased to MOP 95,733,000 from MOP 67,088,000, indicating a rise in financial obligations[86]. - The total liabilities, including trade payables and accrued expenses, amounted to MOP 48,375 as of June 30, 2020, compared to MOP 39,377 as of December 31, 2019[165]. Management and Governance - The management remains confident in the long-term economic development of Macau despite the short-term impacts of the pandemic[10]. - The company has a strong management team with extensive industry knowledge, which is crucial for maintaining long-term business relationships with clients and suppliers[8]. - The company appointed new directors to enhance its technical and corporate financing capabilities, including the appointment of Zhu Jun as a non-executive director and chief scientist[13]. - The company maintained a high level of corporate governance, adhering to the corporate governance code as per the Hong Kong Stock Exchange[76]. - The audit committee reviewed the unaudited interim results and internal controls for the six months ended June 30, 2020[80]. Shareholder Information - The net proceeds from the share offering amounted to approximately 141.2 million Hong Kong Dollars, with 119.8 million Hong Kong Dollars utilized by June 30, 2020[50][54]. - The remaining net proceeds of approximately 21.4 million Hong Kong Dollars were deposited in licensed banks in Hong Kong and Macau[54]. - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2020, considering the overall operating performance and financial condition of the group[56]. - The company has adopted a share option scheme to incentivize directors and eligible employees, allowing them to purchase shares at a nominal price[62]. - The total number of shares that may be issued upon the exercise of options under the share option plan shall not exceed 50,000,000 shares, representing 10% of the issued shares as of the report date[65]. - The maximum number of shares that can be issued under the share option plan is capped at 1% of the issued shares during any 12-month period[64]. - The company has not granted any share options under the share option plan from the adoption date until June 30, 2020[70]. - The share option plan is valid for ten years from April 23, 2019, until April 22, 2029[68]. - The company must issue a circular to shareholders containing relevant information before granting options exceeding the plan authorization limit[67]. - The board's decisions regarding the share option plan are final and binding on all parties involved[70]. Impact of COVID-19 - The impact of the pandemic has led to a significant challenge for the company, but it is expected that performance will gradually recover as the situation stabilizes[10]. - Other income increased from approximately 1.0 million Macau Patacas to about 1.3 million Macau Patacas, mainly due to government subsidies related to COVID-19[19]. - The company incurred transaction costs of (14,259) thousand MOP related to share issuance during the reporting period[98]. - The net cash used in operating activities for the six months ended June 30, 2020, was (16,021) thousand MOP, an improvement compared to (28,081) thousand MOP in the same period of 2019, reflecting a reduction of approximately 43%[121]. - The company reported a net cash inflow from financing activities of 15,736 thousand MOP for the six months ended June 30, 2020, compared to 165,550 thousand MOP in the same period of 2019, showing a significant decrease of about 91%[121].

Financial Performance - The company's revenue increased from approximately MOP 326.8 million in 2018 to approximately MOP 359.8 million in 2019, representing a growth of 10.1%[19] - The group's revenue for the year ended December 31, 2019, was approximately MOP 359.8 million, an increase of about MOP 33.0 million or 10.1% from MOP 326.8 million in 2018[28] - The net profit for the year ended December 31, 2019, was approximately MOP 37.9 million, up from MOP 31.9 million in 2018, representing an increase of about MOP 6.0 million[40] - Adjusted net profit, excluding one-time listing expenses, was approximately MOP 45.3 million for the year ended December 31, 2019, an increase of about MOP 1.2 million or 2.7% from MOP 44.1 million in 2018[40] - Gross profit increased to approximately MOP 76.0 million for the year ended December 31, 2019, from MOP 67.9 million in 2018, with gross profit margin rising from 20.8% to 21.1%[31] - Direct costs rose to approximately MOP 283.7 million, an increase of about MOP 24.8 million or 9.6% from MOP 258.9 million in 2018, reflecting costs associated with revenue growth[30] - Other income increased to approximately MOP 717,000 in 2019, primarily due to bank interest income of about MOP 539,000[32] - Administrative expenses rose to approximately MOP 22.5 million in 2019, accounting for about 6.3% of total revenue, compared to MOP 16.7 million or 5.1% in 2018[34] - The group had cash and cash equivalents of approximately MOP 41.7 million as of December 31, 2019, a significant increase of about 206.6% from MOP 13.6 million in 2018[41] - The debt-to-equity ratio was approximately 4.0% as of December 31, 2019, down from 4.6% in 2018, attributed to an increase in total equity from MOP 56.6 million to MOP 260.5 million[43] Business Strategy and Market Position - The company aims to strengthen its market position in the Macau renovation industry by enhancing financial stability, expanding its customer base, and improving human resources[19] - The company plans to attract tourists from new target segments and regions through upgraded accommodation options and cultural facilities[25] - The company focuses on renovation projects primarily within integrated resorts, hotels, and commercial properties in Macau[23] - The management team believes that their extensive industry knowledge and experience will help maintain long-term relationships with key clients and suppliers[19] - The company is focusing on expanding its market presence and exploring new business strategies to enhance growth opportunities[128] Share Issuance and Capital Structure - The total net proceeds from the share offering upon listing were approximately HKD 141.2 million after deducting underwriting fees and related expenses[23] - The net proceeds from the share issuance on April 23, 2019, amounted to approximately HKD 141.2 million after deducting related expenses, with MOP 117.5 million utilized by December 31, 2019[57] - The company issued 125,000,000 new shares at HKD 1.4 per share, raising a total cash amount of HKD 175,000,000 before expenses[135] - The company recorded a share premium of HKD 3,750,000, which was capitalized through the issuance of 374,999,000 ordinary shares[135] - The company has a significant shareholder, Mr. Li, who holds 337,500,000 shares, representing 67.5% of the total issued shares[155] - The company is controlled by Chiu Yu Limited, which is 100% owned by Mr. Li, indicating a concentrated ownership structure[156] Governance and Compliance - The company has established an audit committee, remuneration committee, and nomination committee to assist the board in fulfilling its responsibilities[66] - The board consists of six members, including three independent non-executive directors, ensuring a balanced composition and independent judgment on strategy and performance[67] - The company has a diversity policy for the board, emphasizing the importance of maintaining a competitive advantage through diverse skills, knowledge, and backgrounds[79] - The company has maintained compliance with the corporate governance code, although the roles of Chairman and CEO are held by the same individual[61] - The company has confirmed compliance with non-competition agreements by the relevant parties[178] COVID-19 Impact and Response - The company is monitoring the impact of the COVID-19 outbreak on its operations and future performance[26] - The group will closely monitor the financial impact of COVID-19 on its operations, with no significant delays expected in project completion as of early March 2020[58] - The board believes that the COVID-19 outbreak will not have a significant impact on the group's operations, although financial effects may vary depending on the pandemic's development[191] - The group has resumed all ongoing project work since early March 2020, with no significant delays expected in project completion despite some initial delays due to COVID-19[191] Employee and Operational Development - As of December 31, 2019, the group had 104 employees, an increase from 80 employees in 2018, with total employee costs approximately MOP 36.1 million compared to MOP 31.7 million in 2018, reflecting an increase due to more average working days[53] - The company emphasizes employee training and development, providing various training programs related to occupational health and safety[137] Shareholder Engagement - The company held its annual general meeting on June 18, 2020, providing a platform for constructive communication between the board and shareholders[105] - The company emphasizes the importance of shareholder engagement during the annual general meeting, with board members present to address questions[105] - The company allows shareholders to request special meetings if they hold at least 10% of the paid-up capital[102] Future Outlook - The management team has outlined future business development plans, emphasizing the importance of operational efficiency and strategic investments[128] - The board has highlighted the importance of shareholder value and will consider future dividend payments based on the company's financial performance and operational needs[127] - The company is actively engaged in research and development of new products and technologies to meet evolving market demands[128]

Revenue and Profitability - Total revenue increased from approximately MOP 179.0 million to approximately MOP 238.5 million, representing a growth of 33.2%[22] - Profit for the period, excluding one-time listing expenses, was approximately MOP 25.5 million, compared to MOP 16.7 million for the same period last year[22] - The gross profit increased from approximately MOP 28.0 million to approximately MOP 43.4 million, with a gross profit margin rising from 15.6% to 18.2%[27] - Other income increased from approximately 119,000 MOP for the six months ended June 30, 2018, to about 1.0 million MOP for the six months ended June 30, 2019, primarily due to sponsorship income of approximately 363,000 MOP from the listing ceremony[28] - Profit for the period (excluding listing expenses) was approximately 25.5 million MOP, an increase of about 8.8 million MOP or 52.7% compared to approximately 16.7 million MOP for the previous period[35] - Net profit attributable to the owners of the company for the period was MOP 18,196,000, up from MOP 6,308,000 in the previous year, which is an increase of 189.5%[80] - Basic earnings per share for the six months ended June 30, 2019, was MOP 0.1, compared to MOP 0.006725 in the same period of 2018[80] Costs and Expenses - Direct costs rose from approximately MOP 151.1 million to approximately MOP 195.1 million, an increase of 29.1%[26] - Administrative expenses rose from approximately 8.1 million MOP to 14.3 million MOP, representing about 4.5% and 6.0% of total revenue for the respective periods[29] - Financing costs increased from approximately 172,000 MOP to 217,000 MOP, an increase of about 45,000 MOP, mainly due to a rise in average outstanding bank borrowings[33] - Income tax expenses increased from approximately 2.7 million MOP to 4.4 million MOP, with effective tax rates of approximately 30.0% and 19.4% for the respective periods[34] - The company incurred administrative expenses of MOP 14,255 thousand for the six months ended June 30, 2019, compared to MOP 8,146 thousand for the same period in 2018, representing an increase of approximately 75%[125] - The company’s tax expense for the six months ended June 30, 2019, was MOP 4,367 thousand, compared to MOP 2,712 thousand for the same period in 2018, reflecting an increase of about 61%[131] Financial Position - Cash and cash equivalents increased to approximately 151.0 million MOP as of June 30, 2019, from about 13.6 million MOP as of December 31, 2018, representing an increase of approximately 1,010.3%[38] - Bank borrowings increased to approximately 5.1 million MOP as of June 30, 2019, from about 2.6 million MOP as of December 31, 2018[39] - The debt-to-equity ratio decreased to approximately 3.5% as of June 30, 2019, from about 4.6% as of December 31, 2018, due to an increase in total equity from approximately 56.6 million MOP to about 240.8 million MOP[40] - Total assets as of June 30, 2019, amounted to MOP 284,378,000, a significant increase from MOP 109,498,000 as of December 31, 2018[82] - The company's net current assets as of June 30, 2019, were MOP 236,200,000, compared to MOP 54,218,000 at the end of 2018, indicating a substantial improvement in liquidity[82] - The company reported a total of MOP 8,135,000 in trade payables as of June 30, 2019, slightly down from MOP 8,238,000 as of December 31, 2018[143] - The total amount of other receivables, deposits, and prepayments increased to MOP 39,240,000 as of June 30, 2019, compared to MOP 23,172,000 as of December 31, 2018, reflecting a growth of 69.2%[140] Business Operations - The company completed 25 renovation projects and was awarded 27 new projects during the reporting period[22] - The increase in revenue was primarily driven by three renovation contracts initiated in 2019, with a total original contract value of approximately MOP 137.5 million[23] - The company focuses on renovation services for commercial properties, particularly within integrated resorts in Macau[19] - The overall economic growth in Macau is expected to drive demand for renovation and construction services, supported by government policies promoting tourism[21] - The company is focused on expanding its renovation and maintenance services in Macau, aiming to enhance its market presence and operational capabilities[94] Shareholder and Corporate Governance - The company did not recommend the payment of dividends for the six months ended June 30, 2019, considering overall operational performance and financial condition[58] - The company has not purchased, sold, or redeemed any of its listed securities from the listing date until June 30, 2019[72] - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[73] - As of June 30, 2019, the major shareholder, 巧裕有限公司, held approximately 67.5% of the shares[69] - The company has not granted any options under the share option scheme since its adoption up to June 30, 2019[66] Lease Accounting - The company adopted the new definition of leases under HKFRS 16, focusing on the concept of control over identified assets[100] - All leases are capitalized, including those previously classified as operating leases under HKAS 17, except for short-term leases and low-value asset leases[101] - The weighted average incremental borrowing rate used to determine the present value of remaining lease payments is approximately 5.4%[110] - As of January 1, 2019, the total lease liabilities recognized amounted to MOP 7,806,000 after accounting for future interest expenses[113] - The company has chosen not to recognize lease liabilities and right-of-use assets for leases with a remaining lease term of 12 months or less at the date of initial application[110] - The company will reassess lease terms if significant events or changes occur that are under its control, affecting future lease liabilities and right-of-use asset amounts[108] - The company capitalizes lease liabilities at the present value of lease payments, using the implicit rate or, if not determinable, the incremental borrowing rate[103] - The company recognizes lease payments related to low-value assets as expenses over the lease term without capitalization[103] - The transition to HKFRS 16 involved using practical expedients and exemptions to ensure a smooth implementation[110] - The company will adjust the carrying amount of right-of-use assets in line with any remeasurement of lease liabilities[107] Audit and Compliance - The audit committee reviewed the unaudited interim results and discussed internal controls and risk management with management for the six months ended June 30, 2019[78] - The company has adopted the standards for securities trading by directors as per the listing rules, ensuring compliance since the listing date[76] - The interim financial report for the six months ended June 30, 2019, was reviewed by the audit committee with no objections raised[149] - The company has not applied any new standards or interpretations that have not yet come into effect during the current accounting period, ensuring compliance with the latest accounting policies[97] - The company did not make any adjustments to the initial application of HKFRS 16 for finance leases, which did not affect the equity opening balance[115] - The company has not restated comparative figures due to the adoption of the revised retrospective method for HKFRS 16 as of January 1, 2019[148]

Financial Performance - The group's revenue increased by approximately MOP 137.7 million or 72.8% to about MOP 326.8 million for the year ended December 31, 2018, compared to approximately MOP 189.1 million for the year ended December 31, 2017[20]. - Total revenue increased from approximately MOP 189.1 million in 2017 to approximately MOP 326.8 million in 2018, representing a growth of 72.8%[27]. - The profit for the year was approximately MOP 31.9 million in 2018, up from approximately MOP 25.2 million in 2017, an increase of about MOP 6.7 million[35]. - Adjusted profit for 2018, excluding one-time listing expenses, was approximately MOP 44.1 million, a 75.0% increase compared to MOP 25.2 million in 2017[35]. - Gross profit rose from approximately MOP 45.2 million in 2017 to approximately MOP 67.9 million in 2018, although the gross profit margin decreased from 23.9% to 20.8%[30]. - Direct costs increased from approximately MOP 143.4 million in 2017 to approximately MOP 258.1 million in 2018, reflecting an increase of 80.0%[28]. - Other income increased significantly from approximately MOP 37,000 in 2017 to approximately MOP 694,000 in 2018, primarily due to bank interest income and the reversal of trade receivables impairment[31]. Market Position and Strategy - The revenue growth was primarily driven by an increase in earnings from casino renovation projects, including a contract worth approximately MOP 160.4 million from a new integrated resort client[20]. - The group is positioned as the third largest commercial renovation contractor in Macau with a market share of approximately 4.3% and the fifth largest overall renovation contractor with a market share of approximately 2.4%[25]. - The company aims to strengthen its market position in the Macau renovation industry by enhancing its financial status to undertake larger renovation projects, expanding its customer base, and improving its human resources[20]. - The overall economic growth trend in Macau is expected to support the demand for renovation and construction services due to increased construction project numbers[21]. - The company focuses on renovation services for existing buildings, extending to casinos, retail areas, hotels, restaurants, commercial properties, and residential properties[25]. - The company is committed to diversifying tourism development in Macau, aligning with government policies aimed at enhancing the region's tourism offerings[21]. Financial Management and Capital Structure - The net proceeds from the share offering on the Hong Kong Stock Exchange were estimated at approximately HKD 138.1 million after deducting underwriting fees and related expenses[25]. - As of December 31, 2018, the company had bank borrowings of approximately MOP 2.6 million, down from approximately MOP 5.1 million in 2017[40]. - The debt-to-equity ratio decreased from approximately 6.9% in 2017 to 4.6% in 2018, attributed to a reduction in total equity from approximately MOP 74.5 million to MOP 56.6 million[42]. - Cash and cash equivalents decreased by approximately 20.9% from MOP 17.2 million in 2017 to MOP 13.6 million in 2018[39]. - The company issued 125,000,000 new shares at HKD 1.4 per share, raising a total cash amount of HKD 175,000,000 (approximately MOP 180,250,000) on April 23, 2019[146]. - The company recorded a share premium of HKD 3,750,000 (approximately MOP 3,860,000) following the share issuance[146]. Governance and Management - The company has appointed three independent non-executive directors, one of whom possesses relevant professional accounting qualifications and financial management expertise[73]. - The board consists of six directors, with three being independent non-executive directors, ensuring sufficient independent opinions to protect the interests of the company and its shareholders[72]. - The audit committee, composed of independent non-executive directors, has reviewed the audited financial statements for the reporting period before submission to the board for approval[90]. - The company encourages all directors to participate in continuous professional development activities to ensure they contribute effectively to the board[83]. - The board has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with defined terms of reference[87]. - The company has arranged appropriate insurance to protect directors and senior management against legal actions arising from company affairs[74]. - The board believes that having the roles of chairman and CEO held by the same individual can ensure effective leadership and strategic planning[72]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[73]. - The company has a diversity policy for the board to maintain competitive advantage, considering various factors such as skills, knowledge, gender, and professional experience[84]. Employee and Operational Insights - As of December 31, 2018, the total employee cost, including director remuneration, was approximately MOP 31.72 million, an increase from MOP 25.33 million in 2017[53]. - The company had 80 employees as of December 31, 2018, compared to 57 employees in 2017[53]. - The company has established a training program for employees, including occupational health and safety courses[148]. - The company maintains good relationships with employees, customers, subcontractors, and suppliers, which are crucial for its success[147]. Risk Management and Compliance - The company faced currency risk primarily from sales denominated in currencies other than the functional currencies of its entities, mainly in HKD[44]. - The company has not implemented any foreign currency hedging policies but monitors foreign exchange risks[44]. - The board confirmed that the risk management and internal control systems were adequate and effective during the reporting period, with no internal audit department established due to the simple operational structure[100]. - The external auditor, Deloitte, provided audit services for MOP 2,549,000 and non-audit services for MOP 539,000, totaling MOP 3,088,000 for the reporting period[107]. Shareholder Relations - The company has established a shareholder communication policy to ensure timely access to company information for shareholders and potential investors[111]. - The annual general meeting serves as an important opportunity for constructive communication between the board and shareholders[111]. - The company declared a dividend of MOP 60 million per ordinary share on December 19, 2018, with no dividends declared in 2017[61]. - The company has no proposed dividend payout as of the reporting period end, with future dividends subject to board discretion[137]. Environmental and Social Responsibility - The company has established internal environmental policies to manage its impact on the environment, including guidelines for chemical, wastewater, waste, and noise management[152]. - There were no significant costs incurred related to compliance with applicable environmental laws and regulations during the reporting period[152].