香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：6038） 截至二零二三年六月三十日止六個月 之中期業績公告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 千港元 千港元 收益 244,882 179,232 毛利 46,842 45,498 除所得稅前溢利 28,341 24,599 期內溢利 23,587 20,621 每股基本盈利（港仙） 2.4 2.1 每股攤薄盈利（港仙） 2.4 2.1 ...

Financial Performance - The group recorded revenue of approximately HKD 382.8 million for the fiscal year 2022, a decrease of about HKD 20.4 million or 5.1% compared to HKD 403.2 million in fiscal year 2021[12]. - The gross profit increased to approximately HKD 97.5 million in fiscal year 2022, representing a rise of about HKD 4.6 million or 5.0% from approximately HKD 92.9 million in fiscal year 2021, with a gross margin of 25.5%[16]. - The group's profit for the fiscal year 2022 reached approximately HKD 43.4 million, an increase of about HKD 6.6 million or 17.9% compared to approximately HKD 36.8 million in 2021[19]. - Total revenue for the year 2022 was HKD 382,786,000, a decrease of 5.3% from HKD 403,211,000 in 2021[150]. - Gross profit increased to HKD 97,538,000, up 5.8% from HKD 92,862,000 in the previous year[150]. - Net profit for the year was HKD 43,404,000, representing a growth of 17.6% compared to HKD 36,800,000 in 2021[150]. - Basic and diluted earnings per share rose to HKD 4.3, an increase of 16.2% from HKD 3.7 in the prior year[150]. Cash Flow and Financial Position - The group's cash and cash equivalents balance as of December 31, 2022, was approximately HKD 38.8 million, a decrease of about HKD 49.5 million from approximately HKD 88.3 million in 2021[24]. - The company experienced a decrease in cash and cash equivalents, ending the year with HKD 38,826,000, down from HKD 88,319,000 at the start of the year[160]. - Operating cash flow for the year was HKD 120,810,000, a significant improvement from a cash outflow of HKD 50,333,000 in the previous year[159]. - The company’s revenue from operating activities showed a significant increase, with a cash inflow of HKD 129,644,000 compared to a cash outflow in the previous year[159]. - The company’s financing activities resulted in a net cash outflow of HKD 30,536,000, compared to a smaller outflow of HKD 5,464,000 in the previous year[160]. - The company reported a decrease in trade and other payables, resulting in a cash inflow of HKD 17,770,000 in the previous year, which turned into a cash outflow of HKD 11,830,000 in the current year[159]. Contracts and Business Operations - The group secured contracts worth HKD 967.0 million, ensuring sufficient cash flow for daily operations and business growth[7]. - The group has an estimated contract balance of HKD 523.6 million for key projects as of December 31, 2022[13]. - The group aims to maintain project profitability through stringent cost control measures implemented during fiscal year 2022[7]. - The group has received two platform facade contracts post-fiscal year 2022, with a total contract value of approximately HKD 388.1 million[13]. - The company’s main business involves providing one-stop design and construction solutions for facade and curtain wall engineering in Hong Kong[74]. Expenses and Taxation - The administrative and other operating expenses increased to approximately HKD 49.4 million in fiscal year 2022, up by about HKD 1.5 million or 3.1% from approximately HKD 47.9 million in fiscal year 2021[17]. - The income tax expense for the group was approximately HKD 8.4 million in fiscal year 2022, with an effective tax rate of about 16.2%[18]. - The total employee benefit expenses for the fiscal year 2022 amounted to approximately HKD 67.6 million, an increase from HKD 64.8 million in 2021[34]. Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with it during the fiscal year 2022, except for the provision regarding the separation of roles between the Chairman and the CEO[46]. - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence in its composition[46]. - All directors confirmed compliance with the standard code for securities trading during the fiscal year 2022[47]. - The audit committee reviewed the financial reporting procedures and internal control systems, meeting with management and external auditors to discuss key audit matters and the audit results for the fiscal year 2022[57]. - The board has established four committees to oversee specific functions, with independent non-executive directors actively participating in all committee meetings[56]. - The company emphasizes the importance of board diversity to support its strategic goals and sustainable development[54]. - The board currently consists of five male and one female director, with plans to enhance gender balance in future appointments[55]. Risk Management - The risk management committee conducted a risk assessment in 2022, identifying key risks recorded in a risk register for ongoing monitoring and control[64]. - The company has adopted a policy and procedural manual for internal controls and risk management compliance across various operational functions[65]. - The board believes that the risk management and internal control systems are effective and adequate, although they cannot eliminate all risks associated with achieving business objectives[65]. - The company has not established an internal audit department but has procedures in place to ensure adequate resources for internal audit functions[64]. Shareholder Information - The proposed final dividend for fiscal year 2022 is HKD 0.018 per share[8]. - The group reported a final dividend of HKD 0.018 per share, totaling HKD 18 million, with a dividend payout ratio of approximately 41.5%[76]. - The company has a dividend policy aimed at sharing profits with shareholders while retaining sufficient reserves for future growth[108]. - The company declared a total dividend of HKD 16,500,000 for the year, compared to HKD 11,000,000 in the previous year[160]. Financial Reporting and Audit - The consolidated financial statements for the fiscal year 2022 were audited by a reputable accounting firm, which is eligible for reappointment[115]. - The company reported a comprehensive financial position as of December 31, 2022, reflecting a fair and true representation of its financial status[130]. - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[130]. - The audit aimed to reasonably ensure that the consolidated financial statements are free from material misstatement due to fraud or error[142]. - The audit committee assists the board in overseeing the financial reporting process[141]. Market Position and Client Relationships - The group maintained stable relationships with major clients, many of whom have been partners for over 15 years[37]. - The five largest customers accounted for approximately 97.0% of the total revenue, with the largest single customer contributing 44.8%[107]. - The five largest suppliers represented about 48.9% of total procurement, with the largest single supplier accounting for 13.5%[107]. Internal Controls and Management - The company’s management team is responsible for the execution of strategies and policies, while the board leads and supervises the overall business[48]. - The company has committed to continuous professional development for its directors to enhance their knowledge and skills[51]. - The audit committee has met with internal control consultants to review the internal control systems for specific areas during the fiscal year 2022[57]. - The company has established a strong management team with a diverse skill set, enhancing its operational capabilities and market competitiveness[126].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：6038） 截至二零二二年十二月三十一日止年度 之年度業績公告 財務摘要 截至十二月三十一日 止年度 二零二二年 二零二一年 千港元 千港元 收益 382,786 403,211 毛利 97,538 92,862 除所得稅前溢利 51,804 44,209 年內溢利 43,404 36,800 每股基本盈利（港仙） 4.3 3.7 每股攤薄盈利（港仙） 4.3 3.7 ...

Financial Performance - The company's revenue increased by approximately HKD 20.8 million or 13.1% to about HKD 179.2 million compared to the previous period's revenue of approximately HKD 158.4 million[14]. - Gross profit rose by approximately HKD 4.3 million or 10.4% to about HKD 45.5 million, with a gross margin of approximately 25.4%, slightly down from 26.0% in the previous period[15]. - The company's net profit for the period was approximately HKD 20.6 million, an increase of about HKD 0.7 million or 4% compared to the previous period's net profit of approximately HKD 19.9 million[17]. - Profit before tax increased to HKD 24,599 thousand, compared to HKD 23,440 thousand in the previous year, representing a growth of 4.9%[52]. - Total comprehensive income for the period amounted to HKD 20,654 thousand, compared to HKD 19,858 thousand in the prior year, showing an increase of 4.0%[52]. - For the six months ended June 30, 2022, the company's profit attributable to owners was HKD 20,621,000, compared to HKD 19,859,000 for the same period in 2021, representing an increase of approximately 3.83%[90]. Expenses and Costs - Administrative and other operating expenses increased by approximately HKD 4.1 million or 23.4% to about HKD 21.6 million, primarily due to increased employee benefits expenses[16]. - The cost of inventory recognized as an expense was HKD 57,125,000 for the six months ended June 30, 2022, up from HKD 50,667,000 in 2021, indicating a year-over-year increase of about 12.88%[82]. - The interim tax expense for the six months ended June 30, 2022, was HKD 3,978,000, compared to HKD 3,581,000 for the same period in 2021, representing an increase of approximately 11.06%[84]. - The total compensation for key management personnel for the six months ended June 30, 2022, was HKD 5,996,000, a decrease from HKD 6,620,000 in 2021[121]. Cash Flow and Financial Position - The company's cash and cash equivalents increased by approximately HKD 65.6 million to about HKD 153.9 million as of June 30, 2022, compared to approximately HKD 88.3 million as of December 31, 2021[22]. - Bank borrowings decreased to approximately HKD 0.5 million from about HKD 15.9 million as of December 31, 2021, due to cash flow from operating activities used to repay borrowings[21]. - The asset-to-liability ratio was approximately 0.2% as of June 30, 2022, down from 6.2% as of December 31, 2021, mainly due to reduced bank borrowings and increased total equity[22]. - Current assets decreased to HKD 389,110 thousand from HKD 390,717 thousand, indicating a slight reduction in liquidity[54]. - Total assets less current liabilities increased to HKD 274,224 thousand from HKD 265,637 thousand, showing a strengthening of the company's financial position[54]. Contracts and Revenue Sources - The company held contracts with an estimated remaining value of HKD 686.7 million as of June 30, 2022, with several new contracts successfully obtained during the period[11]. - The company was awarded a new external wall contract valued at approximately HKD 37.9 million after the reporting period[12]. - Major clients contributed significantly to revenue, with Client I generating HKD 81,278,000 and Client II contributing HKD 72,807,000 in the first half of 2022, compared to HKD 35,128,000 and HKD 112,048,000 respectively in the same period of 2021[76]. - The company reported revenue of HKD 165,130,000 from design and construction projects related to facade and curtain wall engineering for the six months ended June 30, 2022, an increase from HKD 140,947,000 in the same period of 2021, representing a growth of approximately 17.2%[79]. - Maintenance and repair services generated revenue of HKD 170,745,000 for the six months ended June 30, 2022, compared to HKD 146,456,000 in the prior year, reflecting an increase of about 16.6%[79]. Governance and Compliance - The board recommended not to declare an interim dividend for the period, considering the overall business performance and financial condition[47]. - The company maintained compliance with corporate governance codes, except for the combined roles of the Chairman and CEO held by Mr. Li[44]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, but these changes did not have a significant impact on the group's performance and financial position[70]. - The company's financial statements are prepared in accordance with Hong Kong Accounting Standards and have not been audited or reviewed by external auditors[67]. Assets and Liabilities - The total contract assets as of June 30, 2022, amounted to HKD 125,895,000, compared to HKD 96,247,000 as of December 31, 2021, reflecting a significant increase of approximately 30.93%[93]. - The company's trade receivables, net of loss provisions, were HKD 77,328,000 as of June 30, 2022, compared to HKD 172,966,000 in the previous year, showing a decrease of about 55.32%[102]. - The total liabilities related to contract liabilities were HKD 68,755,000 as of June 30, 2022, compared to HKD 56,825,000 as of December 31, 2021, indicating an increase of approximately 20.93%[96]. - Trade payables as of June 30, 2022, totaled HKD 19,115,000, a decrease of 53% from HKD 40,718,000 in 2021[107]. - Warranty payables as of June 30, 2022, were HKD 8,715,000, down from HKD 9,218,000 in 2021[111]. Employee Information - As of June 30, 2022, the company had 109 employees, with total employee benefits expenditure amounting to approximately HKD 34.0 million, an increase from HKD 30.8 million in the previous period[23]. - The company granted 3,000,000 share options under its share option scheme, with no options exercised or cancelled up to the report date[35].

Revenue and Profitability - The company reported a revenue of approximately HKD 403.2 million for the fiscal year ending December 31, 2021, an increase of about HKD 159.8 million or 65.7% compared to HKD 243.4 million in the previous year[11]. - The group’s gross profit increased by approximately HKD 29.7 million or 47.0% to about HKD 92.9 million in 2021, with a gross margin of approximately 23.0%, down from 26.0% in 2020[22]. - The group recorded a profit of approximately HKD 36.8 million in 2021, an increase of about HKD 13.5 million or 57.9% compared to approximately HKD 23.3 million in 2020[26]. - The total comprehensive income for the year was HKD 36,817,000, compared to HKD 23,294,000 in 2020, marking a 57.5% increase[182]. - Basic and diluted earnings per share for the year were HKD 3.7, compared to HKD 2.3 in 2020, reflecting a 60.9% increase[182]. Revenue Sources - Design and construction projects accounted for approximately HKD 380.0 million of total revenue, representing 94.2% of the total, while maintenance and repair services generated about HKD 23.2 million, or 5.8% of total revenue[18]. - The two major projects contributed 59.7% to the company's revenue in 2021, recovering from delays experienced in the previous year[18]. - A significant portion of the company's revenue comes from a few customers, and failure to maintain these relationships could adversely affect financial performance[54]. - The top five customers accounted for approximately 98.5% of the total revenue, with the largest single customer representing 52.2%[129]. Financial Position and Cash Flow - The company's cash flow from operating activities for the year was a net outflow of HKD 50,333,000, compared to a net inflow of HKD 40,434,000 in the previous year, indicating a decline in operational cash generation[192]. - The group has an estimated contract balance of HKD 518.4 million as of December 31, 2021, with several ongoing projects expected to complete in 2022 and 2023[20]. - The group's cash and cash equivalents decreased to approximately HKD 88.3 million as of December 31, 2021, down by about HKD 60.9 million from HKD 149.2 million in 2020[29]. - The company paid dividends amounting to HKD 16,500,000 in 2021, an increase from HKD 14,000,000 in 2020, representing a 17.86% increase[194]. Operational Challenges and Strategies - The company experienced increased operational challenges due to COVID-19, including higher costs and project delays, but has managed to recover in the latter half of 2021[11]. - The company has implemented measures to mitigate the impact of rising material costs and inflation on project profitability[12]. - The company plans to maintain a cautious bidding strategy, focusing on projects with higher design elements and technical capabilities[17]. - The company aims to leverage new opportunities arising in the post-COVID-19 period while maintaining its reputation for quality and innovation[17]. Governance and Compliance - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[59]. - The company has adopted the corporate governance code and has complied with it during the fiscal year, except for the separation of roles between the chairman and CEO[59]. - The audit committee reviewed the financial reporting procedures and internal control systems for the fiscal year 2021[73]. - The company has confirmed compliance with the non-competition commitments for the fiscal year 2021[116]. Shareholder Relations and Dividends - The company proposed a final dividend of HKD 0.011 per share for the fiscal year 2021[13]. - The interim dividend of HKD 0.0055 per share was declared and paid during the fiscal year, amounting to HKD 5.5 million[94]. - The company emphasizes effective communication with shareholders to enhance their understanding of the business and performance[87]. - The company aims to retain sufficient reserves for future growth while considering factors such as financial condition and operational funding needs when declaring dividends[131]. Risk Management - The company faces risks related to overall economic and market conditions, which can impact competitiveness and project profitability[54]. - The risk management committee conducted a risk assessment based on the latest operations and identified key risks recorded in the risk register[80]. - The board believes that the risk management and internal control systems are effective and adequate[81]. Audit and Financial Reporting - The financial statements for the year 2021 were audited by Lixin Dehao CPA, who is eligible for reappointment[137]. - The independent auditor's report confirms that the financial statements are free from material misstatement and comply with the relevant disclosure requirements[155]. - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[197].

Financial Performance - The group's revenue increased by approximately HKD 22.9 million or 16.9% to about HKD 158.4 million for the period, compared to approximately HKD 135.5 million in the previous period[15] - Gross profit rose by approximately HKD 5.4 million or 15.1% to about HKD 41.2 million, with a gross margin of approximately 26.0%, slightly down from 26.4% in the previous period[16] - The group's net profit for the period was approximately HKD 19.9 million, an increase of about HKD 3.4 million or 20.6% compared to approximately HKD 16.5 million in the previous period[18] - Revenue for the six months ended June 30, 2021, was HKD 158,434 thousand, an increase of 17.0% compared to HKD 135,524 thousand in 2020[52] - Gross profit for the same period was HKD 41,169 thousand, representing a gross margin of 25.9%[52] - Profit before tax increased to HKD 23,440 thousand, up 19.2% from HKD 19,560 thousand in the previous year[52] - Net profit for the period was HKD 19,859 thousand, a rise of 20.5% compared to HKD 16,498 thousand in 2020[52] - Basic and diluted earnings per share were both HKD 2.0, compared to HKD 1.6 in the previous year, reflecting a 25.0% increase[52] Contractual and Project Updates - The total value of uncompleted contracts reached approximately HKD 791.4 million, up from HKD 497.0 million in the previous period[9] - The group has been awarded a new facade contract worth approximately HKD 55.6 million and is bidding for five large projects with an estimated total contract value exceeding HKD 422.5 million[13] Expenses and Liabilities - Administrative and other operating expenses decreased by approximately HKD 0.7 million or 3.8% to about HKD 17.5 million, mainly due to reduced legal and professional expenses[17] - The group's bank borrowings increased to approximately HKD 2.6 million from about HKD 1.1 million, representing an increase of approximately HKD 1.5 million[22] - The asset-to-liability ratio as of June 30, 2021, was approximately 1.1%, up from 0.5% at the end of 2020, primarily due to increased bank borrowings[23] - Current liabilities decreased to HKD 89,952 thousand from HKD 100,938 thousand, indicating improved liquidity[54] - The total trade and other payables increased to HKD 46,297,000 as of June 30, 2021, from HKD 38,801,000 as of December 31, 2020, indicating a rise in operational liabilities[108] Cash Flow and Financial Position - The cash and cash equivalents balance as of June 30, 2021, was approximately HKD 137.4 million, a decrease of about HKD 11.8 million from approximately HKD 149.2 million at the end of 2020[23] - The company reported a net cash outflow from operating activities of HKD (7,485) thousand, an improvement from HKD (14,146) thousand in the prior year[59] - Cash and cash equivalents at the end of the period were HKD 137,351 thousand, compared to HKD 120,792 thousand in the previous year, showing a positive cash flow trend[59] Employee and Management Information - The group had 110 employees as of June 30, 2021, compared to 103 employees as of June 30, 2020, with total employee benefits expenses amounting to approximately HKD 30.7 million, up from HKD 26.7 million in the previous period, primarily due to business expansion[24] - Compensation for key management personnel for the six months ended June 30, 2021, was HKD 6,557,000, an increase from HKD 5,525,000 in the same period of 2020[118] Shareholder and Governance Information - The board proposed an interim dividend of HKD 0.55 per share, totaling HKD 5.5 million, with a dividend payout ratio of approximately 27.7%[48] - The company complied with the corporate governance code during the period, except for the provision regarding the separation of the roles of chairman and CEO[45] - The board of directors and key executives held significant interests in the company, with Mr. Li and Mr. Leung each holding 750 million shares, representing 75% ownership[28] Accounting and Compliance - The company has adopted new or revised Hong Kong Financial Reporting Standards effective from January 1, 2021, but these did not have a significant impact on the financial performance[68] - The company is currently assessing the potential impact of newly issued accounting standards on its financial performance and position[72] Other Financial Metrics - The group recognized other income of HKD 170,000 for the period, compared to no other income reported in the same period of 2020[80] - The company’s maintenance and repair services generated revenue of HKD 146,456,000, an increase from HKD 129,108,000 in the previous year, representing a growth of 13.5%[79] - The group reported a profit attributable to owners of the company of HKD 19,859,000 for the six months ended June 30, 2021, compared to HKD 16,498,000 for the same period in 2020, representing a growth of approximately 20.5%[92]

Company Overview [Corporate Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides the company's basic information, including board members, committee compositions, and key operational details - The company primarily engages in platform facade and curtain wall engineering in Hong Kong with over 20 years of experience, providing one-stop services[3](index=3&type=chunk) - Mr Li Chi Hung serves as the Chairman of the Board and Chief Executive Officer, with various committees chaired by key board members[6](index=6&type=chunk) [Chairman's Statement](index=5&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) The Chairman reviews a challenging 2020, highlighting a record-high contract value on hand despite pandemic-related revenue delays - Revenue for 2020 was lower than expected due to the pandemic and construction delays by other contractors[9](index=9&type=chunk) - The Group adopted a prudent bidding strategy, securing new projects worth approximately **HK$635 million** and achieving a record-high value of uncompleted contracts[9](index=9&type=chunk) - The Board of Directors recommends a final dividend of **1.1 HK cents per share** for the year 2020[11](index=11&type=chunk) [Directors and Senior Management](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4) This section details the backgrounds, experiences, and primary responsibilities of the company's directors and senior management - Executive Director, Chairman, and CEO Mr Li Chi Hung, a co-founder of the Group, has over 23 years of experience in the Hong Kong construction industry[137](index=137&type=chunk) - The senior management team possesses extensive industry experience in construction, design, project management, and finance, with an average experience of over 20 years[144](index=144&type=chunk)[145](index=145&type=chunk)[148](index=148&type=chunk) Management Discussion and Analysis [Financial Review](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's revenue declined in 2020 due to project delays, but gross margin improved and its financial position remained solid Key Financial Indicators for FY2020 | Indicator | 2020 (HK$ million) | 2019 (HK$ million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 243.4 | 299.8 | -18.8% | | Design and Build Projects Revenue | 232.9 | 285.3 | -18.4% | | Repair and Maintenance Services Revenue | 10.5 | 14.5 | -27.6% | | **Gross Profit** | 63.2 | 69.5 | -9.0% | | **Gross Profit Margin** | 26.0% | 23.2% | +2.8pp | | **Profit for the Year** | 23.3 | 26.4 | -11.7% | | **Administrative and Other Operating Expenses** | 39.3 | 38.4 | +2.3% | - The decrease in revenue was mainly due to the progress delay of a major project caused by other contractors[17](index=17&type=chunk) - The increase in gross profit margin was primarily attributable to more effective project cost management[21](index=21&type=chunk) - The decrease in profit for the year was mainly due to lower gross profit, partially offset by government subsidies related to the pandemic of approximately **HK$3.6 million**[26](index=26&type=chunk) - As of the end of 2020, the Group maintained a healthy gearing ratio of **0.5%** with cash and cash equivalents of approximately **HK$149 million**, an increase of HK$20.7 million year-on-year[29](index=29&type=chunk) [Prospects and Outlook](index=7&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E5%B1%95%E6%9C%9B) The Group holds a strong project pipeline with an estimated remaining contract value of HK$780 million, demonstrating a successful business strategy Major Projects on Hand as at 31 December 2020 | No. | Project Type | Location | Expected Completion | Est. Remaining Contract Value (HK$ million) | | :--- | :--- | :--- | :--- | :--- | | 1 | Platform Facade | Kai Tak, Kowloon | Dec 2022 | 291.4 | | 2 | Platform Facade | Kwun Tong, Kowloon | Jun 2022 | 218.2 | | 3 | Platform Facade | Taikoo, Hong Kong | Dec 2021 | 197.8 | | 4 | Platform Facade | Tin Shui Wai, N.T. | Jun 2021 | 58.6 | | 5 | Platform Facade | Yuen Long, N.T. | Jun 2021 | 14.1 | | **Total** | | | | **780.1** | - After the reporting date, the Group was bidding for 7 large-scale platform facade projects with a total estimated contract value exceeding **HK$285.6 million**[20](index=20&type=chunk) [Principal Risks and Uncertainties](index=11&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E7%A2%BA%E5%AE%9A%E5%9B%A0%E7%B4%A0) The Group faces risks from market conditions, project bidding uncertainty, and reliance on a few major customers for revenue - The Group's operations are subject to overall economic and market risks, which may affect industry competitiveness and project profitability[53](index=53&type=chunk) - Business risks include the inability to continuously secure new project orders and a heavy reliance on a few major customers[53](index=53&type=chunk) [Employees and Remuneration Policies](index=9&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group's workforce and employee benefit expenses both increased in 2020, reflecting growth in headcount and average remuneration Employee and Remuneration Overview | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Total Employees (Year-end) | 103 people | 100 people | | Total Employee Benefit Expenses | HK$57.6 million | HK$51.7 million | Corporate Governance Report [Corporate Governance Practices](index=12&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company complied with most Corporate Governance Code provisions, with the deviation of the Chairman and CEO roles being held by the same person - The company complied with most provisions of the Corporate Governance Code in 2020, with the only deviation being the combined role of Chairman and CEO held by Mr Li Chi Hung[58](index=58&type=chunk) - The Board believes this arrangement is beneficial for management, and the strong independent composition of the Board ensures a balance of power[58](index=58&type=chunk) [Board and Committees](index=12&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83) The Board leads the Group's business and has established four committees to oversee specific functions including audit, nomination, and risk - The Board has established four committees: Audit, Nomination, Remuneration, and Risk Management to oversee specific functions[68](index=68&type=chunk) - The committees are responsible for reviewing financial reporting, nominating directors, recommending remuneration policies, and overseeing the risk management system[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Risk Management and Internal Control](index=16&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%8F%8A%E5%85%A7%E9%83%A8%E7%9B%A3%E6%8E%A7) The Board, assisted by the Risk Management Committee, deems the Group's risk management and internal control systems effective and adequate - The company has engaged an external independent consultant for an annual review of its internal control system as it has no internal audit department[80](index=80&type=chunk) - The 2020 internal control review covered project budgeting, tendering, cash flow management, and the risk management function[80](index=80&type=chunk) - Based on the review, the Board considers the Group's risk management and internal control systems to be effective and adequate[80](index=80&type=chunk) [Auditor's Remuneration](index=16&type=section&id=%E6%A0%B8%E6%95%B8%E5%B8%AB%E9%85%AC%E9%87%91) Total fees paid to the auditor, BDO Limited, for 2020 amounted to HK$630,000, entirely for audit services Auditor's Remuneration for FY2020 | Service Type | Fee (HK$ thousand) | | :--- | :--- | | Audit services | 630 | | Non-audit services | – | | **Total** | **630** | Report of the Directors [Results and Dividends](index=18&type=section&id=%E6%A5%AD%E7%B8%BE%E5%8F%8A%E8%82%A1%E6%81%AF) The Board recommends a final dividend of 1.1 HK cents per share for the year ended 31 December 2020, representing a payout ratio of 47.2% - The Board recommends a final dividend of **1.1 HK cents per share** for 2020, totaling HK$11 million[92](index=92&type=chunk) - The proposed dividend payout ratio is approximately **47.2%**[92](index=92&type=chunk) [Share Option Scheme](index=19&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) During the reporting period, 2,750,000 share options lapsed under the scheme, with no options exercised or cancelled - In 2020, a total of **2,750,000 share options lapsed**, including 1,500,000 from a former executive director and 1,250,000 from other participants[102](index=102&type=chunk)[107](index=107&type=chunk) - As of the end of 2020, all granted share options had lapsed, leaving no outstanding options[107](index=107&type=chunk) [Disclosure of Interests](index=22&type=section&id=%E6%8A%AB%E9%9C%B2%E6%AC%8A%E7%9B%8A) The controlling shareholder, Cheung Mau Limited, holds a 75% stake in the company and is controlled by two directors acting in concert - The controlling shareholder, Cheung Mau Limited, holds 750,000,000 shares, representing **75% of the issued share capital**[120](index=120&type=chunk)[121](index=121&type=chunk) - Cheung Mau is owned 75% by Mr Li Chi Hung (Executive Director) and 25% by Mr Leung Ping Kwan (Non-executive Director), who are parties acting in concert[120](index=120&type=chunk)[124](index=124&type=chunk) [Major Customers and Suppliers](index=24&type=section&id=%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E5%8F%8A%E4%BE%9B%E6%87%89%E5%95%86) The Group exhibits very high customer concentration, with its top five customers accounting for 97.9% of total revenue in 2020 - **High customer concentration**: The top five customers accounted for **97.9%** of total revenue, with the largest single customer contributing **48.9%**[125](index=125&type=chunk) - **Relatively lower supplier concentration**: The top five suppliers accounted for **56.5%** of total purchases, with the largest single supplier at **14.8%**[126](index=126&type=chunk) Environmental, Social and Governance Report [ESG Governance and Strategy](index=30&type=section&id=ESG%E7%AE%A1%E6%B2%BB%E8%88%87%E7%AD%96%E7%95%A5) The Group's ESG strategy focuses on sustainability, with governance overseen by the Board and implemented by a dedicated ESG working group - The report is prepared in accordance with the HKEX's ESG Reporting Guide, covering the Group's Hong Kong operations for the 2020 financial year[157](index=157&type=chunk)[158](index=158&type=chunk) - The Board oversees ESG matters and has delegated daily execution to an ESG working group composed of internal and external experts[163](index=163&type=chunk)[165](index=165&type=chunk) [Social Aspect](index=34&type=section&id=%E7%A4%BE%E6%9C%83%E5%B1%A4%E9%9D%A2) The Group is committed to fair employment, employee well-being, health and safety, and community support through charitable donations - The Group adheres to a fair employment policy, opposes all forms of discrimination, and has a zero-tolerance policy for child and forced labor[176](index=176&type=chunk)[177](index=177&type=chunk) - In response to COVID-19, the company implemented measures such as work-from-home arrangements and relaxed private car usage to protect employee health[197](index=197&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - In 2020, the Group donated approximately **HK$149,000** to various charitable organizations to support vulnerable communities[206](index=206&type=chunk)[207](index=207&type=chunk) [Environmental Aspect](index=41&type=section&id=%E7%92%B0%E5%A2%83%E5%B1%A4%E9%9D%A2) The Group aims to reduce its environmental footprint, achieving a significant reduction in waste despite an increase in energy consumption in 2020 Environmental Performance Indicators for 2020 | Key Performance Indicator | 2020 | 2019 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Total Energy Consumption (kWh)** | 214,592 | 184,527 | +16% | | - Electricity (kWh) | 173,684 | 145,658 | +19% | | - Petrol (litres) | 4,221 | 4,010 | +5% | | **Total GHG Emissions (tonnes CO2-e)** | 108.2 | 104.8 | +3.2% | | - GHG Emission Intensity (tonnes CO2-e/employee) | 1.071 | 1.075 | -0.4% | | **Total Non-hazardous Waste (tonnes)** | 3.2 | 3.8 | -16% | | - Non-hazardous Waste Intensity (tonnes/employee) | 0.031 | 0.039 | -20% | - The increase in electricity and petrol consumption was mainly due to more overtime work and relaxed use of company vehicles during the pandemic[216](index=216&type=chunk)[217](index=217&type=chunk) - Despite increased energy consumption, the amount of non-hazardous waste was significantly reduced through the implementation of a paperless system[227](index=227&type=chunk) [Operating Practices](index=46&type=section&id=%E7%87%9F%E9%81%8B%E6%85%A3%E4%BE%8B) The Group prioritizes quality and safety through ISO 9001:2015 compliance, responsible sourcing, and a zero-tolerance anti-corruption policy - The Group's business operations comply with the **ISO 9001:2015** quality standard, ensuring high-quality construction works for clients[244](index=244&type=chunk) - The Group practices responsible sourcing, considering suppliers' social responsibility performance and conducting rigorous assessments of subcontractors[248](index=248&type=chunk) - The Group has a **zero-tolerance policy** towards corruption and bribery, with no related legal cases during the reporting period[253](index=253&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk) Independent Auditor's Report [Audit Opinion](index=52&type=section&id=%E5%AF%A9%E8%A8%88%E6%84%8F%E8%A6%8B) The auditor issued an unqualified opinion, stating the financial statements give a true and fair view of the Group's financial position and performance - The auditor issued an **unqualified opinion** on the Group's consolidated financial statements for the year 2020[286](index=286&type=chunk) [Key Audit Matters](index=53&type=section&id=%E9%97%9C%E9%8D%B5%E5%AF%A9%E8%A8%88%E4%BA%8B%E9%A0%85) The key audit matter was the recognition of contract revenue, which involves significant management judgment in estimating total contract costs - The key audit matter was the **recognition of contract revenue, contract assets and contract liabilities**[290](index=290&type=chunk)[291](index=291&type=chunk) - This matter was critical because revenue recognition relies on estimates of total contract costs, which involve **significant management judgment and uncertainty**[291](index=291&type=chunk) - The auditor's procedures included assessing controls, testing budget costs, evaluating the reasonableness of budgeting, and recalculating the percentage of completion[292](index=292&type=chunk)[293](index=293&type=chunk)[294](index=294&type=chunk) Consolidated Financial Statements [Consolidated Statement of Comprehensive Income](index=57&type=section&id=%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group recorded revenue of HK$243 million and profit for the year of HK$23.3 million, with basic earnings per share of 2.3 HK cents Consolidated Statement of Comprehensive Income Summary (For the year ended 31 December) | Item (HK$ thousand) | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 243,399 | 299,756 | | Gross Profit | 63,170 | 69,452 | | Profit before income tax | 27,670 | 31,233 | | Profit for the year | 23,299 | 26,366 | | Total comprehensive income for the year | 23,294 | 26,356 | | **Basic earnings per share (HK cents)** | **2.3** | **2.6** | [Consolidated Statement of Financial Position](index=58&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of 31 December 2020, the Group's total assets stood at HK$349 million, with total equity increasing to HK$237 million Consolidated Statement of Financial Position Summary (As at 31 December) | Item (HK$ thousand) | 2020 | 2019 | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 19,386 | 5,700 | | Current assets | 329,553 | 286,247 | | **Total assets** | **348,939** | **291,947** | | **Liabilities and Equity** | | | | Current liabilities | 100,938 | 63,188 | | Non-current liabilities | 11,128 | 1,180 | | **Total liabilities** | **112,066** | **64,368** | | **Total equity** | **236,873** | **227,579** | [Consolidated Statement of Changes in Equity](index=59&type=section&id=%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Total equity increased to HK$237 million, driven by the profit for the year, partially offset by dividends paid - Total equity increased from **HK$227,579 thousand** at the beginning of the year to **HK$236,873 thousand** at year-end[316](index=316&type=chunk) - The change in equity was mainly affected by: - Profit for the year: **+HK$23,299 thousand** - Dividends paid: **-HK$14,000 thousand**[316](index=316&type=chunk) [Consolidated Statement of Cash Flows](index=61&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The Group's cash and cash equivalents increased by HK$20.7 million during the year, reaching a balance of HK$149 million Consolidated Statement of Cash Flows Summary (For the year ended 31 December) | Item (HK$ thousand) | 2020 | 2019 | | :--- | :--- | :--- | | Net cash from operating activities | 40,434 | 60,285 | | Net cash used in investing activities | (2,924) | (428) | | Net cash used in financing activities | (16,821) | (28,078) | | **Increase in cash and cash equivalents** | **20,689** | **31,779** | | Cash and cash equivalents at end of year | 149,157 | 128,467 | Notes to the Consolidated Financial Statements [Note 5 Key sources of estimation uncertainty](index=83&type=section&id=Note%205%20%E9%97%9C%E9%8D%B5%E6%9C%83%E8%A8%88%E5%88%A4%E6%96%B7%E5%8F%8A%E4%BC%B0%E8%A8%88%E4%B8%8D%E7%A2%BA%E5%AE%9A%E5%9B%A0%E7%B4%A0%E7%9A%84%E4%B8%BB%E8%A6%81%E4%BE%86%E6%BA%90) This note discloses key judgments and estimates, with major uncertainties in construction contract revenue recognition and credit loss provisions - The recognition of construction contract revenue depends on estimates of total contract costs, which require periodic review and revision by management[438](index=438&type=chunk) - The provision for expected credit losses on trade receivables and contract assets requires management judgment, especially when assessing significant increases in credit risk[443](index=443&type=chunk)[444](index=444&type=chunk) [Note 7 Revenue](index=86&type=section&id=Note%207%20%E6%94%B6%E7%9B%8A) This note details the composition of revenue, with design and build projects contributing the majority of the HK$243 million total Revenue Breakdown (HK$ thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | **Design and build projects** | **232,855** | **285,255** | | - Platform facade and related works | 159,406 | 142,634 | | - Curtain wall works | 73,449 | 142,621 | | **Repair and maintenance services** | **10,544** | **14,501** | | **Total** | **243,399** | **299,756** | - The total amount of remaining performance obligations (i.e., order book) to be recognized in the future is **HK$823 million**[451](index=451&type=chunk) [Note 36 Financial risk management](index=116&type=section&id=Note%2036%20%E8%B2%A1%E5%8B%99%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) This note outlines the Group's management of key financial risks, including credit, interest rate, currency, and liquidity risks - **Credit risk**: Significant customer concentration risk exists, with approximately **97%** of trade receivables from the top five customers in 2020[593](index=593&type=chunk) - **Interest rate risk**: Arises mainly from floating-rate bank borrowings, with a 1% rate change impacting annual profit by approximately HK$4,000[595](index=595&type=chunk)[598](index=598&type=chunk) - **Liquidity risk**: Managed by monitoring liquidity needs and maintaining sufficient cash reserves and financing facilities[606](index=606&type=chunk)[612](index=612&type=chunk) Five-Year Financial Summary [Five-Year Financial Summary](index=122&type=section&id=%E4%BA%94%E5%B9%B4%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) The Group's revenue and profit have declined from their 2018 peak, while total assets and equity have shown consistent growth over five years Five-Year Results Summary (For the year ended 31 December, HK$ thousand) | Indicator | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 243,399 | 299,756 | 365,436 | 315,751 | 273,912 | | Gross Profit | 63,170 | 69,452 | 86,995 | 99,505 | 90,523 | | Profit for the year | 23,299 | 26,366 | 36,939 | 52,267 | 50,077 | Five-Year Assets, Liabilities and Equity Summary (As at 31 December, HK$ thousand) | Indicator | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | 348,939 | 291,947 | 302,498 | 274,608 | 163,655 | | Total liabilities | 112,066 | 64,368 | 83,479 | 66,523 | 80,708 | | Total equity | 236,873 | 227,579 | 219,019 | 208,085 | 82,947 |

Revenue and Profitability - The group's revenue increased by approximately HKD 4.1 million or 3.1% to about HKD 135.5 million compared to the previous period's HKD 131.4 million[12]. - Gross profit decreased by approximately HKD 1.1 million or 3.1% to about HKD 35.8 million, with a gross margin decline from approximately 28.1% to 26.4%[13]. - Net profit for the period decreased by approximately HKD 2.1 million or 11.3% to about HKD 16.5 million, primarily due to the decline in gross profit and an increase in administrative expenses[15]. - Revenue for the six months ended June 30, 2020, was HKD 135,524 thousand, an increase of 3.2% compared to HKD 131,411 thousand in 2019[50]. - Gross profit for the same period was HKD 35,827 thousand, down 2.9% from HKD 36,885 thousand in 2019[51]. - Profit before tax decreased to HKD 19,560 thousand, a decline of 11.6% from HKD 22,180 thousand in the previous year[51]. - Net profit for the period was HKD 16,498 thousand, down 11.2% from HKD 18,584 thousand in 2019[51]. - Basic and diluted earnings per share were both HKD 1.6, compared to HKD 1.9 in the same period last year[51]. Expenses and Costs - Administrative and other operating expenses increased by approximately HKD 3.6 million or 24.6% to about HKD 18.2 million, mainly due to higher salaries and professional fees[14]. - The cost of goods sold for the six months ended June 30, 2020, included depreciation of HKD 46,570 thousand, up from HKD 25,640 thousand in 2019, indicating an increase of approximately 82%[81]. - The income tax expense for the six months ended June 30, 2020, was HKD 3,062 thousand, compared to HKD 3,596 thousand in 2019, a decrease of about 15%[83]. Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were HKD 120,792 thousand, a decrease from HKD 125,622 thousand in 2019[59]. - Operating cash flow for the period was negative HKD 14,146 thousand, compared to positive HKD 34,829 thousand in 2019[59]. - The group maintained a net cash position exceeding HKD 100 million, indicating confidence in navigating the challenging global economic environment[6]. Borrowings and Liabilities - As of June 30, 2020, the group's bank borrowings amounted to approximately HKD 7.8 million, an increase of about HKD 6.8 million from HKD 1.0 million as of December 31, 2019[19]. - The asset-to-liability ratio as of June 30, 2020, was 3.4%, up from 0.4% as of December 31, 2019, due to the increase in bank borrowings[20]. - The company's bank borrowings due within one year increased to HKD 7,786,000 as of June 30, 2020, compared to HKD 1,000,000 as of December 31, 2019[108]. Contracts and Projects - The group has secured new contracts worth approximately HKD 378.5 million for two new façade projects and one maintenance contract[10]. - The estimated contract value for a large-scale façade project currently in bidding exceeds HKD 122.1 million[10]. - Contract assets as of June 30, 2020, were HKD 81,106,000, compared to HKD 74,661,000 as of December 31, 2019, indicating an increase of 8.5%[95]. Employee and Management Compensation - The group had 103 employees as of June 30, 2020, compared to 98 employees as of June 30, 2019, with total employee costs amounting to approximately HKD 26.7 million, an increase from HKD 24.9 million in the previous period[21]. - The compensation for directors and key management personnel for the six months ended June 30, 2020, is HKD 5,525,000, an increase from HKD 5,100,000 in 2019, reflecting a growth of about 8.3%[115]. - Share-based payment expenses for key management increased significantly to HKD 5,584,000 in 2020 from HKD 102,000 in 2019, indicating a substantial rise in equity compensation[115]. Dividends and Shareholder Returns - The board does not recommend the payment of an interim dividend for the period, considering the overall business performance, financial condition, and capital requirements[47]. - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with no dividend declared for the same period in 2019[88]. - The company approved a final dividend of HKD 14,000,000 for the year ended December 31, 2019, which was distributed to shareholders on July 17, 2020[88]. Assets and Investments - Total assets as of June 30, 2020, were HKD 230,071 thousand, an increase from HKD 227,579 thousand at the end of 2019[53]. - The company reported a net asset value of HKD 226,158 thousand, up from HKD 223,059 thousand in the previous year[53]. - Trade receivables as of June 30, 2020, amounted to HKD 40,675,000, a decrease from HKD 46,166,000 as of December 31, 2019, representing a decline of 11.9%[98]. - The company did not hold any significant investments during the period[40]. - As of June 30, 2020, the group had no significant capital commitments[41]. - There were no significant contingent liabilities as of June 30, 2020[42]. Regulatory and Accounting Standards - The company has adopted new or revised Hong Kong Financial Reporting Standards effective from January 1, 2020, but these did not have a significant impact on the interim financial statements[68]. - The company is currently evaluating the impact of newly issued accounting standards that have been announced but are not yet effective, with no significant effects anticipated at this time[71]. Market and Operational Focus - The company operates primarily in Hong Kong, with over 72% of its non-current assets located there, indicating a strong regional focus[74]. - The company continues to provide integrated design and construction solutions, focusing on maintenance services for external wall and curtain wall engineering[77].

Financial Performance - The revenue from curtain wall engineering increased from approximately HKD 63 million in 2017 to about HKD 142.6 million in 2019, reflecting a significant growth trajectory[9]. - The group's net profit decreased from HKD 37 million to HKD 26 million, primarily due to project delays and additional construction costs incurred near project completion[10]. - In 2019, the group's total revenue was approximately HKD 299.8 million, a decrease of about HKD 65.6 million or 17.9% compared to HKD 365.4 million in 2018[18]. - The revenue from design and construction projects accounted for approximately HKD 285.3 million, representing 95.2% of total revenue, while maintenance and repair services generated about HKD 14.5 million, or 4.8%[18]. - The group's gross profit decreased to approximately HKD 69.5 million in 2019, down about HKD 17.5 million or 20.1% from approximately HKD 87.0 million in 2018[22]. - The gross profit margin for 2019 was approximately 23.2%, slightly down from about 23.8% in 2018[22]. - The group recorded a net profit of approximately HKD 26.4 million in 2019, a decrease of about HKD 10.5 million or 28.5% from approximately HKD 36.9 million in 2018[25]. Cash Position and Debt - The company maintains a strong cash position with net cash exceeding HKD 100 million, allowing it to withstand economic uncertainties such as those posed by the COVID-19 outbreak[11]. - The group's bank borrowings as of December 31, 2019, were approximately HKD 1.0 million, a decrease of about HKD 7.2 million from approximately HKD 8.2 million on December 31, 2018[29]. - As of December 31, 2019, the group's cash and bank balances were approximately HKD 128.5 million, an increase of about HKD 31.9 million from approximately HKD 96.6 million as of December 31, 2018, mainly due to the recovery of receivables[30]. - The group's debt-to-equity ratio as of December 31, 2019, was approximately 0.4%, a significant decrease from 3.8% as of December 31, 2018, primarily due to an increase in total equity and a reduction in bank borrowings[30]. Competition and Market Position - The group has been facing increased competition in the Hong Kong platform facade and curtain wall market, along with rising labor and operational costs[10]. - The company is optimistic about its market position in platform facades, supported by long-term relationships with clients and an experienced management team[11]. - The company has secured one project out of six bids for curtain wall engineering in the fiscal year 2019, indicating a competitive bidding environment[9]. - The group aims to seek more opportunities in curtain wall projects and continue executing its growth strategies outlined in the prospectus issued in May 2017[11]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to maximize shareholder and group benefits[62]. - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence in its composition[63]. - The company has adopted the corporate governance code and has complied with its provisions, except for the separation of roles between the chairman and CEO[63]. - The board is responsible for setting overall strategies and policies, assessing performance, and overseeing management functions[65]. - The company has established four committees within the board to oversee specific functions, ensuring good corporate governance practices[74]. Employee and Talent Management - The total employee benefit expenses for the group in the fiscal year 2019 were approximately HKD 51.7 million, up from HKD 49.6 million in the previous year, primarily due to an increase in the number of employees[41]. - The group employed 100 staff members as of December 31, 2019, compared to 95 staff members as of December 31, 2018[41]. - Approximately 30% of senior talents enjoy insurance coverage equivalent to that of the CEO, while the remaining talents have slightly lower coverage[181]. - The company has implemented policies to ensure fair employment practices, prohibiting child labor and forced labor, and ensuring voluntary employment conditions[183]. - Management provides competitive compensation and benefits to attract and retain talent, with annual performance evaluations determining salary adjustments and bonuses[188]. Social Responsibility and Sustainability - G&M has been committed to engineering excellence and social responsibility since its establishment in 1993, contributing to the development of the façade and curtain wall industry for over 20 years[155]. - In 2017, G&M established an ESG working group to address CSR issues and related risks, aiming to integrate sustainable development principles into business operations[156]. - The ESG strategy aims to create long-term value for stakeholders, with the board overseeing ESG development and setting objectives[162]. - The company emphasizes ethical conduct and contributions to society while improving the quality of life for employees and their families[167]. - The company has developed an ESG framework to guide its sustainable development performance and ensure adequate resources for strategic goals[170]. Risk Management - The company believes its risk management and internal control systems are effective and adequate, although they cannot eliminate all risks[85]. - The board is responsible for evaluating the nature and extent of risks associated with achieving the company's strategic objectives[84]. - The Risk Management Committee conducted a risk assessment aligned with the group's latest operations, identifying key risks recorded in a risk register[84]. Customer and Supplier Relationships - Revenue from several key customers constitutes a significant portion of the group's total revenue, and failure to maintain business relationships or secure sufficient new business could adversely affect the group's operational and financial performance[57]. - The top five customers accounted for approximately 95.8% of the total revenue, with the largest single customer contributing 56.3%[130]. - The top five suppliers represented about 56.1% of total purchases, with the largest single supplier accounting for 17.1%[131]. Shareholder Returns - The board proposed a final dividend of HKD 0.014 per share for the fiscal year 2019, reflecting the company's commitment to returning value to shareholders[13]. - The company reported a proposed final dividend of HKD 1.4 per share, totaling HKD 14 million, with a dividend payout ratio of approximately 53.1%[97]. - As of December 31, 2019, the company's available distributable reserves amounted to HKD 164.3 million[106]. Training and Development - The company recognizes the importance of training and development for employee satisfaction and business growth[196]. - External training programs are provided based on employees' professional development needs, including courses from recognized institutions[198]. - The company has established a policy to reimburse employees for external training and education course fees upon completion[198].

Financial Performance - The group's revenue decreased by approximately HKD 35.6 million or 21.3% to about HKD 131.4 million compared to the previous period's revenue of approximately HKD 167.0 million[13]. - Gross profit decreased by approximately HKD 1.1 million or 2.9% to about HKD 36.9 million, while the gross profit margin increased from approximately 22.7% to 28.1%[14]. - Profit for the period decreased by approximately HKD 1.4 million or 7.0% to about HKD 18.6 million, primarily due to the previously mentioned decline in gross profit[16]. - Revenue for the six months ended June 30, 2019, was HKD 131,411 thousand, a decrease of 21.3% compared to HKD 166,974 thousand in 2018[48]. - Gross profit for the same period was HKD 36,885 thousand, slightly down from HKD 37,971 thousand, resulting in a gross margin of 28.1%[48]. - Profit before tax decreased to HKD 22,180 thousand from HKD 23,879 thousand, reflecting a decline of 7.1%[48]. - Net profit for the period was HKD 18,584 thousand, down from HKD 20,029 thousand, representing a decrease of 7.2%[48]. - Basic and diluted earnings per share were both HKD 1.9, compared to HKD 2.0 in the previous year[48]. - Cash generated from operating activities was HKD 34,829 thousand, a slight decrease from HKD 35,507 thousand in 2018[57]. Assets and Liabilities - As of June 30, 2019, the group's bank borrowings were approximately HKD 3.0 million, a decrease of about HKD 5.2 million from approximately HKD 8.2 million as of December 31, 2018[19]. - The group's cash and cash equivalents increased by HKD 29.0 million to approximately HKD 125.6 million compared to approximately HKD 96.6 million as of December 31, 2018[20]. - The asset-to-liability ratio as of June 30, 2019, was 1.37%, down from 3.76% as of December 31, 2018, due to the reduction in bank borrowings[20]. - Total assets as of June 30, 2019, were HKD 219,706 thousand, an increase from HKD 219,019 thousand at the end of 2018[50]. - Total equity remained stable at HKD 219,706 thousand, compared to HKD 219,019 thousand in the previous year[50]. - Trade receivables as of June 30, 2019, amounted to HKD 43,075,000, a decrease from HKD 77,679,000 as of December 31, 2018, reflecting a reduction of approximately 44.5%[106]. - Contract assets as of June 30, 2019, were HKD 88,916,000, compared to HKD 87,891,000 as of December 31, 2018, showing a slight increase of about 1.2%[103]. - The group’s warranty provision as of June 30, 2019, was HKD 1,265,000,000, down from HKD 1,424,000,000 as of December 31, 2018, indicating a decrease of about 11.1%[103]. - The group’s contract liabilities as of June 30, 2019, were HKD 11,734,000, a decrease from HKD 16,153,000 as of December 31, 2018, reflecting a reduction of approximately 27.5%[103]. Operational Highlights - The group has secured a new contract for platform facade work valued at approximately HKD 305.7 million and is bidding for four large-scale projects with an estimated total contract value exceeding HKD 396.7 million[12]. - The group is optimistic about continued growth in demand for construction projects in both public and private sectors, providing ample opportunities to increase revenue and client base[12]. - The group employed 98 staff as of June 30, 2019, an increase from 97 staff as of June 30, 2018, with total employee benefit expenses of approximately HKD 24.9 million[21]. - Employee benefits expenses, including directors' remuneration, totaled HKD 24,878 million for the six months ended June 30, 2019, slightly up from HKD 24,669 million in 2018[89]. Investments and Capital Expenditure - The company has utilized HKD 48.4 million for expanding its capacity to undertake more design and construction projects[45]. - The company has allocated HKD 16.6 million for expanding its workforce[45]. - The company has invested HKD 5.2 million to enhance operational efficiency and technical capabilities[45]. - The group purchased property, plant, and equipment at a cost of approximately HKD 495,000,000 for the six months ended June 30, 2019, down from HKD 672,000,000 as of December 31, 2018[102]. Compliance and Governance - The company has confirmed compliance with the standards for securities trading by directors during the reporting period[40]. - The company has adopted the corporate governance code and has been in compliance, except for the combined role of the chairman and CEO[39]. - The unaudited interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and are not audited by external auditors[61]. - The accounting policies used in the interim financial statements are consistent with those described in the 2018 financial statements[65]. - The group’s audit committee has reviewed the interim financial statements[61]. Shareholder Information - As of June 30, 2019, the company had a total of 750,000,000 shares held by major shareholders, representing 75% ownership[24]. - The issued and paid-up share capital as of June 30, 2019, was HKD 10,000,000, with a total of 1,000,000,000 shares issued[117]. - The company did not report any significant acquisitions or disposals of subsidiaries or associated companies during the period[33]. - The company has not made any significant investments during the period[34]. - The board of directors does not recommend the payment of dividends for the period, considering the overall business performance and financial condition[41]. - The company declared a dividend of HKD 18,000 thousand during the period[55]. - The group did not recommend any interim dividend for the six months ended June 30, 2019, compared to HKD 24,000,000 distributed in the same period of 2018[96]. Related Party Transactions - The company engaged in transactions with related parties, including purchasing materials from Kentan Co., Ltd., amounting to HKD 656,000 in 2018, with no transactions reported for 2019[122].