Financial Performance - Total revenue for FY2023 was HKD 2,125.9 million, with general construction services contributing 65.1% of total revenue[13]. - The group recorded a revenue of HKD 2,125.9 million for the fiscal year 2023, a decrease of approximately 26.2% compared to the fiscal year 2022, primarily due to a decline in the maritime business segment by HKD 285.5 million (62.1%) and a decrease in the general construction business segment by HKD 467.9 million (19.3%)[21]. - The cost of sales for fiscal year 2023 decreased by 26.8% to HKD 1,944.8 million, aligning with the overall revenue decline, while the gross profit margin improved to 8.5% from 7.7% in fiscal year 2022[22]. - The group recorded an impairment loss provision of HKD 86.8 million for fiscal year 2023, attributed to the general construction business segment (HKD 23.3 million) and the maritime business segment (HKD 63.5 million) due to uncertain economic conditions in China[23]. - The group reported a loss of HKD 62,383,000 in the maritime construction segment and a profit of HKD 65,111,000 in general construction contracting services for the year ended December 31, 2023[176]. Business Segments - The maritime construction segment faced a challenging business environment in FY2023, with no new major projects initiated, leading to a decline in operational performance[6]. - The general construction segment's performance was negatively impacted by adverse economic conditions and delays in project commencement, particularly in the real estate sector[7]. - The maritime business generated revenue of HKD 58.1 million from maritime-related ancillary services in the Philippines, contributing 2.7% to total revenue[11]. - Significant projects in Qingdao, including student apartment expansions and residential developments, contributed HKD 119.8 million and HKD 101.1 million respectively to total revenue[13]. - The group anticipates that challenges in its maritime and general construction business segments will continue into 2024, negatively impacting short-term revenue and profitability[18]. Strategic Initiatives - The company is actively monitoring and adjusting its business strategies in response to the uncertain macroeconomic environment[7]. - The company has strengthened internal controls in project management and receivables management to mitigate external risks[7]. - The group is preparing to bid for two large-scale projects in Hong Kong, including a maritime construction project and an offshore mud unloading project, driven by the government's "Lantau Tomorrow Vision" blueprint[14]. - The group has established a cooperation agreement with a general contractor for a new reclamation project in Macau and is awaiting administrative approval[14]. - The company aims to accelerate the recovery of overdue receivables and monetize contract assets to improve its financial position and reduce financing costs[18]. 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 throughout the fiscal year 2023, except for the dual role of the Chairman and CEO held by Mr. Jiang Hongchang since June 28, 2022[60]. - The board of directors has held a total of 9 meetings in fiscal year 2023, with the attendance of executive directors ranging from 2 to 6 out of 9 meetings[66]. - The audit committee has reviewed the interim and annual consolidated financial statements for fiscal year 2023, ensuring the integrity of financial reporting and compliance with regulations[73]. - The company has established five committees to oversee specific functions, ensuring effective governance and accountability within the organization[69]. - The company has implemented guidelines for employee conduct and compliance, ensuring adherence to legal and regulatory requirements[71]. Financial Position - The net current assets and net debt as of December 31, 2023, were approximately HKD 210.5 million and HKD 1,553.1 million, respectively, with a debt-to-equity ratio increasing to 366.0% from 198.4% in the previous year[37]. - The group’s trade receivables, retention receivables, and notes receivable increased by approximately HKD 328.5 million to HKD 1,188.6 million as of December 31, 2023, with HKD 224.9 million related to the maritime business segment and HKD 963.7 million related to the general construction business segment[34]. - The total employee cost for the year 2023 was approximately HKD 188.6 million, compared to HKD 186.5 million in 2022[51]. - The company has not recommended any dividend payment for the fiscal year 2023[55]. - As of December 31, 2023, the company's distributable reserves amount to approximately HKD 160.0 million[102]. Audit and Financial Reporting - The group’s financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and reflect a true and fair view of the group's financial position as of December 31, 2023[169]. - The independent auditor's report confirmed the adequacy of audit evidence obtained to support the audit opinion[171]. - The audit process involved identifying and assessing risks of material misstatement and designing audit procedures to address these risks[196]. - The auditor evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures made by the directors[196]. - The audit report includes communication with the audit committee regarding the planned audit scope, timing, and significant audit findings[198]. Related Party Transactions - The company has been involved in related party transactions, complying with disclosure requirements under the listing rules[119]. - The company has maintained compliance with the relevant regulations regarding related party transactions and shareholder disclosures[119]. - Independent non-executive directors have confirmed that the ongoing related transactions are conducted on normal commercial terms and are in the best interest of shareholders[144]. - The company has obtained a report from auditors regarding ongoing related transactions, confirming compliance with relevant regulations[146]. Human Resources and Diversity - As of December 31, 2023, the employee composition was 82.0% male (541 employees) and 18.0% female (119 employees), indicating a need for improved gender diversity[77]. - The company has not faced any significant labor disputes and has maintained good relationships with employees[51]. - The remuneration committee assessed director performance and reviewed compensation for directors, ensuring no director participated in determining their own pay[78]. Future Outlook - The company expects an improvement in the maritime construction segment's business volume in FY2024, with a decrease in equipment idle costs[6]. - The company is focused on expanding its maritime business segment, with the new executive director overseeing operations in this area[157]. - The management team is actively involved in risk management and strategic investment committees, ensuring robust oversight[161].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 2,125.9 million, a decrease of 26.2% compared to HKD 2,879.2 million in 2022[3] - Gross profit for the same period was HKD 181.1 million, down 17.9% from HKD 220.6 million in the previous year, with a gross margin of 8.5%[3] - The company reported a net loss of HKD 181.6 million for 2023, compared to a profit of HKD 10.5 million in 2022[3] - The company incurred a loss attributable to equity holders of HKD 188,898,000 in 2023, compared to a loss of HKD 12,186,000 in 2022, resulting in a basic loss per share of HKD 23.61[25] - The group recorded an impairment loss provision of HKD 86.8 million for financial assets in fiscal year 2023, reflecting a conservative approach due to economic uncertainties[52] - The group anticipates challenges in its maritime and general construction segments to persist into 2024, negatively impacting short-term revenue and profitability[46] Assets and Liabilities - Total assets increased by 2.9% to HKD 5,035.6 million in 2023 from HKD 4,894.0 million in 2022[3] - Total liabilities increased to HKD 4,555.1 million in 2023 from HKD 4,269.7 million in 2022, reflecting a growing debt burden[9] - Total equity decreased by 22.3% to HKD 480.5 million in 2023 from HKD 624.3 million in 2022[3] - The group's net current assets and net debt as of December 31, 2023, were approximately HKD 210.5 million and HKD 1,553.1 million, respectively, with a debt-to-equity ratio increasing to 366.0% from 198.4% in the previous year[64] Cash Flow and Financial Position - The company’s cash and cash equivalents decreased significantly to HKD 144.95 million in 2023 from HKD 324.46 million in 2022[8] - As of December 31, 2023, the company has bank borrowings amounting to HKD 192,762,000, with a default amount of HKD 630,495,000 due to non-compliance with financial covenants[15] - The company’s bank borrowings classified as current liabilities due to defaults amounted to HKD 17,596,000 as of December 31, 2023[15] - The average interest rate for short-term bank loans increased to 5.2% in 2023 from 3.9% in 2022, while the long-term bank loan rate slightly decreased to 5.0% from 5.1%[65] Revenue Breakdown - The company’s revenue from general contracting services was HKD 1,951,810,000 in 2023, down from HKD 2,419,668,000 in 2022, reflecting a decline of 19.3%[22] - The maritime business segment's revenue decreased by HKD 285.5 million or 62.1%, while the general construction business segment's revenue decreased by HKD 467.9 million or 19.3%[50] - The group achieved revenue contributions from maritime construction and related services totaling HKD 58.1 million in the Philippines, representing 2.7% of total revenue[42] Expenses and Costs - Research and development expenses rose to HKD 22.6 million in 2023 from HKD 17.9 million in 2022[5] - Other administrative expenses rose by HKD 44.3 million to HKD 173.7 million, primarily due to increased personnel costs and maintenance costs related to idle vessels and equipment[55] - The cost of sales for fiscal year 2023 fell by 26.8% to HKD 1,944.8 million, aligning with the overall revenue decline[51] Dividends and Shareholder Returns - The company has not proposed any final dividend for the year ended December 31, 2023, consistent with 2022[27] - The group did not recommend any dividend payment for the fiscal year 2023[79] - The board of directors does not recommend the payment of dividends for the year 2023[94] Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules and has complied with it throughout 2023, with the same individual serving as both Chairman and CEO since June 28, 2022[87] - The audit committee, composed of four independent non-executive directors, has reviewed the annual performance announcement for the year ending December 31, 2023[96] - The company's auditor, PwC, confirmed that the figures in the preliminary performance announcement align with the draft consolidated financial statements for the year ending December 31, 2023[97] - The annual performance announcement will be published on the Stock Exchange and the company's website, with the annual report to be sent to shareholders by the end of April 2024[99] Operational Challenges and Future Outlook - The maritime construction segment experienced a decline in operational performance due to project delays and a lack of substantial revenue generation in 2023[39] - The company has entered into compensation agreements for project delays, which are expected to impact revenue recognition timelines negatively[39] - The company anticipates that the decline in revenue for the fiscal year 2023 is temporary and aligns with the current macroeconomic conditions[39] - The group is preparing to bid for two large-scale maritime projects in Hong Kong, driven by the government's "Lantau Tomorrow Vision" blueprint[45]

Revenue Performance - The company recorded revenue of HKD 874.3 million for the six months ended June 30, 2023, a decrease of HKD 425.9 million or approximately 32.7% compared to the previous period[14]. - Revenue from the maritime engineering division decreased by HKD 188.6 million or approximately 63.7%, while revenue from the general contracting division in Qingdao decreased by HKD 237.3 million or approximately 23.6%[14]. - Total revenue for the six months ended June 30, 2023, was HK$874,322,000, a decrease of 32.8% from HK$1,300,249,000 in the same period of 2022[85]. - Revenue from general construction contracting services was HK$766,917,000, down 23.6% from HK$1,004,202,000 year-on-year[89]. - The maritime construction segment generated revenue of HK$73,728,000, a significant decline of 73.9% compared to HK$282,602,000 in the previous year[89]. - Revenue from external customers in Hong Kong was HK$74,242,000, down 47.5% from HK$141,928,000 in the previous year[94]. Profitability and Losses - Gross profit for the period was HKD 48.2 million, down from HKD 94.8 million in the previous period, resulting in a gross margin of 5.5% compared to 7.3% previously[15]. - The group recorded a post-tax loss of HKD 43.6 million for the period, compared to a profit of HKD 7.1 million in the previous period, primarily due to a significant decline in gross profit, increased foreign exchange losses, and higher R&D expenses[22]. - The operating loss for the six months was HKD 11,717,000, compared to an operating profit of HKD 37,198,000 in the previous year[58]. - The net loss attributable to the company's owners was HKD 49,349,000, a significant decline from a profit of HKD 3,845,000 in the same period last year[58]. - The company reported a loss before tax of HK$43,127,000 for the period, compared to a profit before tax of HK$7,992,000 in the same period last year[89]. Expenses and Costs - The company incurred other losses of HKD 2.3 million, primarily due to foreign exchange losses of HKD 3.7 million from the depreciation of the Indonesian Rupiah against the Hong Kong Dollar[16]. - Research and development expenses increased by HKD 2.6 million to HKD 7.5 million due to a reallocation of resources towards facade engineering and construction technology[17]. - Other administrative expenses decreased by HKD 5.2 million to approximately HKD 48.5 million, attributed to reductions in professional fees and bank charges[19]. - Financial costs increased by approximately HKD 1.8 million or 6.0% to HKD 31.6 million due to increased bank borrowings and overall interest rates in the Chinese market[20]. - The total employee cost for the group was approximately HKD 88.3 million for the period, down from HKD 93.1 million in the previous period, with an increase in employee count to 690 from 638[35]. Assets and Liabilities - The total assets as of June 30, 2023, amounted to HKD 4,666,329,000, down from HKD 4,893,994,000 at the end of 2022[60]. - The group's net current assets and net debt as of June 30, 2023, were approximately HKD 476.6 million and HKD 1,089.5 million, respectively, with a debt-to-equity ratio of 247.1%, up from 198.4% as of December 31, 2022[32]. - The total liabilities decreased to HKD 4,089,699 thousand from HKD 4,269,677 thousand as of December 31, 2022, representing a reduction of approximately 4.2%[61]. - Non-current liabilities increased to HKD 391,261 thousand from HKD 352,178 thousand, marking an increase of about 11.1%[61]. - Current liabilities decreased to HKD 3,698,438 thousand from HKD 3,917,499 thousand, reflecting a decline of approximately 5.6%[61]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2023, was HKD (409,062) thousand, compared to HKD 246,309 thousand for the same period in 2022[67]. - Cash and cash equivalents at the end of the period decreased to HKD 223,771 thousand from HKD 560,627 thousand, a decline of approximately 60.2%[67]. - The company’s financing activities generated a net cash inflow of HKD 197,606 thousand for the six months ended June 30, 2023, compared to a cash outflow of HKD (16,063) thousand in the same period of 2022[67]. - The company’s total liabilities included borrowings of HK$1,278,932,000 as of June 30, 2023, compared to HK$1,092,566,000 at the end of 2022[92]. - The company’s short-term bank borrowings increased to HKD 842,084 thousand as of June 30, 2023, compared to HKD 681,776 thousand as of December 31, 2022, reflecting a rise of approximately 23.5%[125]. Project and Contractual Obligations - The company has ongoing major projects with estimated contract values remaining at RMB 616 million for the Technical Talent Apartment Project and RMB 537 million for the Technology Innovation Center Project[11]. - The maritime engineering project in the Philippines commenced earlier in the period but was temporarily halted in August 2023 pending further administrative approvals from local government agencies[9]. - The company is focusing on potential construction projects in collaboration with government-controlled property developers to capitalize on opportunities arising from urban development initiatives in Qingdao[10]. - The group has provided performance guarantees related to construction contracts amounting to HKD 52.9 million as of June 30, 2023[43]. - The company has a contingent liability related to performance guarantees for construction contracts amounting to HKD 52.9 million as of June 30, 2023, unchanged from December 31, 2022[131].

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。 瑞 港 建 設 控 股 有 限 公 司 PROSPER CONSTRUCTION HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） （股份代號：6816） 截至2023年6月30日止六個月之 中期業績公告 瑞港建設控股有限公司（「本公司」）董事（「董事」）會（「董事會」）呈列本公司及其 附屬公司（統稱「本集團」）截至2023年6月30日止六個月（「本期間」）的未經審核綜 合業績，連同2022年同期（「前期間」）的比較數字。 中期簡明綜合全面收益表 截至2023年6月30日止六個月 未經審核 截至6月30日止六個月 2023年 2022年 附註 千港元 千港元 收益 5 874,322 1,300,249 銷售成本 (826,120) (1,205,403) 毛利 48,202 94,846 其他（虧損）╱收益淨額 7 (2,336) 996 金融資產減值虧損撥備 (1,555) 996 ...

Revenue and Business Performance - The general construction business contributed approximately HKD 2,419.3 million, accounting for 84.0% of the total revenue for the year 2022[14]. - The maritime construction and related services generated a total revenue of HKD 206.1 million from the underwater pipeline rock laying project, contributing 7.1% to the total revenue[12]. - The total revenue from the general construction business was HKD 2,879.2 million for the year 2022[14]. - The group recorded revenue of HKD 2,879.2 million for the fiscal year 2022, a decrease of approximately 9.6% compared to the previous year, primarily due to a reduction in general construction business revenue by HKD 257.1 million[18]. - The group reported segment performance for maritime construction and general contracting services of HKD 5,665,000 and HKD 112,630,000 respectively for the year ended December 31, 2022[183]. Future Outlook and Opportunities - The company anticipates a recovery in maritime construction and related businesses in 2023, with several major projects in Indonesia and the Philippines actively under negotiation[8]. - The "Lantau Tomorrow Vision" blueprint is expected to drive positive prospects for the maritime construction market in Hong Kong[8]. - The company is preparing to seize opportunities from post-pandemic economic stimulus policies[8]. - The estimated contract value for maritime-related ancillary services in the Philippines is expected to exceed USD 55 million[18]. - The group anticipates a significant number of engineering projects to be launched in the near future as part of urban development measures in Qingdao[18]. Financial Performance and Costs - The group’s gross profit increased by 7.6% to HKD 220.6 million, with a gross margin improvement to 7.7% from 6.4% in the previous year[20]. - The group’s operating profit for 2022 grew by approximately HKD 4.1 million or 5.8% despite rising administrative expenses[28]. - The group’s financial costs increased by HKD 15.5 million due to rising interest rates in both Hong Kong and China[29]. - Trade receivables increased by approximately HKD 304.3 million to HKD 860.2 million as of December 31, 2022, with about HKD 250.6 million related to the maritime business segment[31]. - Total employee costs for the group in 2022 amounted to approximately HKD 186.5 million, an increase from HKD 154.8 million in 2021[44]. Investments and Acquisitions - The company invested in acquiring control of a construction design service provider in Qingdao to enhance its influence and competitiveness in the Chinese construction market[8]. - The group has completed an investment in a construction design company in January 2023, expected to enhance its market intelligence and competitiveness[18]. - The company acquired a 34% stake in Honghai Facade to enhance its competitive edge in the general contracting business[132]. - The company has expanded its operations into the Chinese construction industry since acquiring Dongjie Construction in 2020[132]. Governance and Compliance - The board of directors did not recommend the payment of dividends for the fiscal year 2022[47]. - The board confirmed compliance with the standard code of conduct for securities transactions in 2022[55]. - The company has established guidelines for employees regarding insider trading, with no violations reported in 2022[55]. - The company has adopted policies and procedures for internal control and risk management compliance across various operational and management functions[74]. - The company has complied with all relevant laws and regulations in all material aspects during the year ended December 31, 2022[158]. Internal Controls and Risk Management - The audit committee met 5 times in 2022 to review financial statements and discuss audit results[64]. - An external independent consultant was engaged in 2022 to review the internal control system, covering risk assessment, revenue and sales cycles, and human resource management[74]. - The board believes that the risk management and internal control systems are effective and adequate, although they are designed to manage rather than eliminate risks[75]. - The Risk Management Committee conducted a special review of the procurement and expenditure functions of the maritime business to identify potential internal control deficiencies[74]. Shareholder Information - Major shareholders hold a total of 498,000,000 shares, representing 62.25% of the company's equity[113]. - The company has disclosed the interests of its directors in the company's shares, with Mr. Cui Qi holding 102,000,000 shares, representing 12.75% of the total[110]. - The company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2022[104]. Employee Relations and Diversity - The group maintained a good relationship with employees, customers, and suppliers, with no significant labor disputes reported[44]. - The company reported a workforce composition as of December 31, 2022, with 502 male employees (78.7%) and 136 female employees (21.3%)[68]. - The company aims to enhance gender diversity on the board, currently composed solely of male directors, with plans to achieve a more balanced gender representation by 2024[68]. Environmental and Social Responsibility - The group has implemented various environmental protection measures and has not faced any penalties for violations of environmental laws in 2022[50]. - The company has purchased directors' liability insurance to provide appropriate protection for its directors[157].

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。 瑞 港 建 設 控 股 有 限 公 司 PROSPER CONSTRUCTION HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） （股份代號：6816） 截至2022年12月31日止年度 經審核年度業績公告 財務摘要 截至12月31日止年度 2022年 2021年 %變動 百萬港元 百萬港元 收益 2,879.2 3,185.8 –9.6% 毛利 220.6 205.1 +7.6% 毛利率 7.7% 6.4% 年內溢利 10.5 16.8 –37.5% 應佔（虧損）╱溢利： 本公司權益持有人 (12.2) 2.6 非控股權益 22.7 14.2 擁有人應佔每股（虧損）╱盈利（港仙） (1.52) 0.32 ...

Revenue Performance - The company recorded revenue of HKD 1,300.2 million for the period, an increase of approximately 32.2% compared to the previous period[17]. - Revenue from maritime construction and related services contributed HKD 99.4 million (7.6%) from Macau and HKD 105.0 million (8.1%) from Hong Kong[9]. - General construction services generated revenue of HKD 1,004.2 million, accounting for about 77.2% of total revenue, with HKD 712.3 million (54.8%) coming from the parent company[12]. - Revenue for the six months ended June 30, 2022, reached HKD 1,300,249 thousand, an increase of 32.4% compared to HKD 982,975 thousand for the same period in 2021[91]. - The maritime construction segment generated revenue of HKD 282,602 thousand, up 34.3% from HKD 210,444 thousand in the previous year[91]. - General construction contracting services contributed HKD 1,004,202 thousand, a significant increase of 33.7% from HKD 750,704 thousand in the prior period[91]. - Revenue from related party construction projects reached HKD 157,936,000 from Xifa Real Estate, an increase from HKD 130,998,000 in the same period of 2021, representing a growth of 20.5%[164]. - Revenue from the West Coast New Area construction projects was HKD 273,644,000, significantly up from HKD 113,454,000 in the previous year, marking an increase of 141.1%[164]. - The company’s revenue from Xihai Coast New Rural Community projects was HKD 14,415,000, which was not reported in the previous year[164]. - The company’s total revenue from Cambodia for the six months ended June 30, 2022, was HKD 2,668, while there was no revenue reported for the same period in 2021, indicating a new revenue stream[109]. Profitability - Gross profit increased by HKD 29.3 million or approximately 44.7% to HKD 94.8 million, with a gross margin rising from 6.7% to 7.3%[18]. - The group recorded a slight increase in profit of approximately HKD 1.3 million to about HKD 7.1 million during the period, despite an increase in revenue and gross profit[24]. - Operating profit for the period was HKD 37,198,000, up from HKD 25,146,000 in the prior year, reflecting a growth of approximately 47.9%[59]. - The net profit for the period was HKD 7,073 thousand, compared to HKD 5,803 thousand in the previous period, showing an increase of 21.8%[68]. - The net profit attributable to the company’s owners was HKD 3,845,000, compared to HKD 4,812,000 in the same period last year, showing a decrease of about 20.1%[59]. - The company reported a total comprehensive loss of HKD 14,256,000 for the period, compared to a total comprehensive income of HKD 3,342,000 in the previous year[59]. - The basic and diluted earnings per share for the period were HKD 0.48, down from HKD 0.60 in the same period last year[59]. Financial Position - As of June 30, 2022, the group's current asset net value was approximately HKD 711.3 million, down from HKD 727.8 million as of December 31, 2021[31]. - The group's debt-to-equity ratio increased to 212.4% as of June 30, 2022, compared to 203.4% as of December 31, 2021, due to loans taken for operational funding[31]. - Total assets increased to HKD 4,549,154 thousand as of June 30, 2022, compared to HKD 4,436,947 thousand at the end of 2021, representing a growth of 2.5%[62]. - Total liabilities rose to HKD 3,920,011 thousand, compared to HKD 3,793,548 thousand, indicating an increase of 3.3%[64]. - The company's equity decreased to HKD 629,143 thousand from HKD 643,399 thousand, a decline of 2.2%[64]. - Trade receivables and retention receivables increased by approximately HKD 200.7 million to HKD 756.5 million as of June 30, 2022, with HKD 505.1 million related to general construction business[27]. - Trade receivables increased significantly to HKD 650,100 million as of June 30, 2022, compared to HKD 416,498 million at the end of 2021[133]. - The company reported accounts receivable from subsidiaries of HKD 1,222,590,000 as of June 30, 2022, compared to HKD 1,439,642,000 as of December 31, 2021[168]. Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 246,309 thousand, a turnaround from a cash outflow of HKD 274,070 thousand in the same period last year[71]. - The company’s financing activities resulted in a net cash outflow of HKD 16,063 thousand, contrasting with a net inflow of HKD 365,368 thousand in the prior year[71]. - The company’s total cash outflow for leases (excluding short-term and low-value asset leases) was HKD 2,409 million for the six months ended June 30, 2022, up from HKD 2,195 million in the same period of 2021[132]. - The company has a loan from a holding company amounting to HKD 130,000,000, with a fixed annual interest rate of 3.74%[170]. - The company incurred engineering service expenses of HKD 341,000 paid to Big Data Technology Development for the six months ended June 30, 2022[164]. Employee and Operational Costs - The total employee cost for the group was approximately HKD 93.1 million, an increase from HKD 69.3 million in the previous period, with 666 employees as of June 30, 2022[33]. - Employee costs, including directors' remuneration, increased to HKD 93,147 for the six months ended June 30, 2022, from HKD 69,315 in the previous year, marking a rise of approximately 34.4%[112]. - The total compensation paid to key management personnel was HKD 2,353,000 for the six months ended June 30, 2022, a decrease from HKD 2,496,000 in the same period of 2021[173]. - The company’s pension costs under the defined contribution plan amounted to HKD 27,000 for the six months ended June 30, 2022, down from HKD 72,000 in the same period of 2021[173]. Project and Market Outlook - The company expects to commence a new reclamation project in Macau in the second half of 2022, with an estimated contract value of HKD 400 million[13]. - The company anticipates significant project launches in Qingdao's West Coast New Area, driven by government urban development initiatives[13]. - The company expects the maritime construction market in Hong Kong to become more active with the launch of new projects related to the "Tomorrow Lantau" development plan[15]. - The company is closely monitoring potential offshore construction projects and is prepared to act quickly to bid for overseas engineering opportunities[13]. Financial Management and Risk - The company’s financial risk management focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[85]. - The group has not adopted any new accounting standards that would significantly impact its financial reporting for the current period[84]. - The company’s overall risk management policies have remained unchanged since the end of the previous fiscal year[86]. - The group’s financial assets and liabilities are measured at fair value, with the carrying amount closely reflecting their fair value due to short maturity or floating interest rates[87].

Financial Performance - The company recorded a revenue of HKD 3,185.8 million for the fiscal year 2021, representing an increase of approximately 117.4% compared to the previous year[27]. - The general construction business contributed approximately HKD 2,676.7 million, accounting for 84.0% of the total revenue, with HKD 1,825.2 million (57.3%) coming from the Hai Fa Group[27]. - The gross profit for 2021 increased by 136.8% to HKD 205.1 million, with a slight rise in gross margin to 6.4% from 5.9% in 2020[28]. - The operating profit for the year 2021 increased by HKD 32.8 million or 85.9%, despite significant growth in revenue and gross profit[36]. - The profit before tax for 2021 was HKD 31.2 million, compared to HKD 28.4 million in 2020, with an adjusted profit before tax of HKD 60.3 million, an increase of approximately HKD 34.9 million from HKD 25.4 million in 2020[37]. Revenue Sources - The group achieved over 100% revenue growth in 2021, with approximately 84.0% of revenue coming from the general construction business segment[8]. - Maritime construction projects in Macau contributed HKD 327.8 million, accounting for about 10.3% of total revenue in 2021[13]. - The acquisition of a 34% stake in Qingdao Honghai Curtain Wall Co., Ltd. strengthened the group's competitive position, leading to a significant revenue increase of approximately 117.3% in the general construction contracting business in China[14]. - Two new maritime construction projects were secured in Hong Kong in 2021, each with an estimated contract value exceeding HKD 100 million[13]. - The company anticipates substantial infrastructure projects in the Qingdao West Coast New Area, which is expected to be a major source of revenue[26]. Project Pipeline and Development - The company has a significant project pipeline, including a power generation facility contract in Macau valued at HKD 413.7 million, expected to be completed by the end of 2022[24]. - The group has ongoing projects in Macau, including two reclamation projects expected to be completed in Q2 2022[15]. - The group anticipates the completion of related bridge and dredging works for a cross-sea bridge project by Q3 2023[15]. - The company has been approved for a maritime-related service project in the Philippines, with a contract value expected to exceed HKD 300 million[19]. Financial Position and Assets - Trade receivables, retention money, and receivables increased by approximately HKD 152.1 million to HKD 555.9 million as of December 31, 2021[41]. - Contract assets for maritime and general construction businesses were approximately HKD 217.6 million and HKD 1,109.1 million, respectively, as of December 31, 2021[42]. - The net current assets and net debt as of December 31, 2021, were approximately HKD 727.8 million and HKD 917.9 million, respectively, compared to HKD 367.8 million and HKD 168.0 million in 2020[52]. - The debt-to-equity ratio increased to 203.4% as of December 31, 2021, from 80.4% in 2020, primarily due to financing for acquisitions and equipment purchases[52]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with these rules throughout the 2021 fiscal year[77]. - The board of directors held a total of 5 meetings in 2021, with the chairman attending 4 out of 5 meetings[83]. - The audit committee met 2 times in 2021 to review financial statements and discuss audit results with the auditors[92]. - The company emphasizes the importance of ethical and responsible business practices to maximize long-term shareholder value[77]. - The company has established a policy for board diversity to ensure a balanced mix of skills and experiences among directors[93]. Employee and Labor Relations - The total employee cost for the group in 2021 was approximately HKD 154.8 million, a decrease from HKD 227.2 million in 2020[67]. - The group maintained a workforce of 631 employees in 2021, an increase from 298 employees in 2020[67]. - The group has not faced any significant labor disputes and has maintained good relationships with employees[67]. Risk Management and Compliance - The board of directors is responsible for ensuring the effectiveness of the group's risk management and internal control systems[103]. - The company has adopted policies and procedures for internal control and risk management compliance across various operational and management functions[100]. - The independent directors play a crucial role in overseeing the company's financial reporting and risk management practices[198][199]. Related Party Transactions - The independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[178]. - The auditor provided an unqualified opinion on the related party transactions for the year ended December 31, 2021, in accordance with the relevant listing rules[181]. Strategic Development - The company is focused on business strategy and operations in Hong Kong, Macau, and overseas markets[190]. - The management team includes professionals with qualifications in engineering, finance, and management, ensuring a strong leadership structure[194]. - The company is actively involved in strategic development and capital operations, with a focus on expanding its market presence[194].

Revenue and Profitability - The group recorded revenue of HKD 983.0 million for the period, representing an increase of approximately 98.4% compared to the previous period[19] - Revenue from maritime construction projects increased by approximately HKD 92.2 million, primarily driven by projects in Macau[19] - General construction business revenue from Qingdao increased by approximately HKD 494.2 million, contributing significantly to overall revenue[19] - Approximately 76.3% of the group's revenue, or HKD 750.7 million, came from general construction business, with HKD 583.2 million or 59.3% sourced from the West Coast Group[12] - The company reported revenue of HKD 982.975 million for the six months ended June 30, 2021, representing a 98.4% increase from HKD 495.530 million in the same period of 2020[62] - Gross profit for the same period was HKD 59.785 million, with a gross margin of approximately 6.1% compared to 7% in the previous year[62] - The net profit attributable to the company's owners was HKD 5.803 million, an increase from HKD 4.812 million in the prior year, reflecting a growth of 20.6%[62] - The net profit for the period was HKD 5,803,000, compared to HKD 7,605,000 for the same period in 2020, reflecting a decrease of approximately 23.6%[102] Expenses and Costs - The sales cost increased by 100.0% to HKD 923.2 million, with a gross profit increase of HKD 25.3 million or approximately 73.4% to HKD 59.8 million, resulting in a gross margin decline from 7.0% to 6.1%[20] - Other administrative expenses rose from approximately HKD 21.7 million to about HKD 43.7 million, primarily due to the administrative costs associated with the newly acquired Honghai Curtain Wall and increased legal and professional fees by HKD 2.9 million to HKD 7.3 million[21] - The group recorded a profit decrease of approximately 23.7% to about HKD 5.8 million due to significant increases in administrative expenses and income tax expenditures despite revenue and gross profit growth[25] Assets and Liabilities - The group's current assets and liabilities as of June 30, 2021, were approximately HKD 599.5 million and HKD 547.8 million, respectively, resulting in a debt-to-equity ratio of 187.9%[31] - Total assets increased to HKD 2,684,190 thousand as of June 30, 2021, compared to HKD 1,753,830 thousand as of December 31, 2020, representing a growth of 53%[65] - Total liabilities increased to HKD 2,060,973 thousand as of June 30, 2021, compared to HKD 1,198,958 thousand as of December 31, 2020, indicating a rise of 72%[67] - The company’s total equity reached HKD 623,217 thousand, up from HKD 554,872 thousand, showing an increase of 12%[70] - Trade payables and retention money increased to HKD 955,657 thousand, compared to HKD 652,222 thousand, representing a growth of 46%[67] Employee and Administrative Information - As of June 30, 2021, the company had 498 employees, with total employee costs amounting to approximately HKD 69.3 million, up from HKD 48.1 million in the previous period[35] - Employee costs, including director remuneration, increased to HKD 69,315,000 in the first half of 2021, compared to HKD 48,076,000 in the same period of 2020, marking a rise of about 44%[114] Acquisitions and Investments - The group completed the acquisition of a 34% stake in Qingdao Honghai Curtain Wall Co., Ltd., gaining control over its board, which is expected to enhance synergies with the general construction business[9] - The company completed the acquisition of a 34% stake in Qingdao Honghai Curtain Wall Co., Ltd. on January 13, 2021, with a purchase price of HKD 59,264,000[157] - The identifiable net assets acquired from Qingdao Honghai amounted to HKD 98,490,000, with goodwill recognized at HKD 25,777,000[159] Financial Performance and Cash Flow - The company reported a net cash outflow from operating activities of HKD 274,070 thousand for the six months ended June 30, 2021, compared to HKD 105,535 thousand in the same period of 2020[74] - Cash and cash equivalents at the end of the period were HKD 246,076 thousand, an increase from HKD 194,300 thousand at the end of 2020[74] - The company’s financing activities generated a net cash inflow of HKD 365,368 thousand, a significant increase from HKD 28,507 thousand in the previous year[74] Risk Management and Financial Policies - Financial risk management remains focused on minimizing potential adverse impacts on financial performance due to market unpredictability[88] - The company’s overall risk management strategy has not changed since the end of the previous fiscal year[89] Related Party Transactions - Revenue from related party construction projects amounted to HKD 130,998,000 for Xifa Real Estate, a decrease of 3.0% from HKD 135,287,000 in 2020[165] - The total receivables from related parties amounted to HKD 98,949,000 as of June 30, 2021, compared to HKD 50,305,000 as of December 31, 2020, reflecting a significant increase[170]

Business Expansion and Acquisitions - The group acquired 80% of Qingdao Dongjie Construction Engineering Co., expanding its business into the Chinese construction market[5] - The acquisition of Honghai Curtain Wall Co. is expected to enhance the group's overall competitiveness in the Chinese market[6] - The company completed the acquisition of a 34% stake in Qingdao Honghai Curtain Wall Co., enhancing its competitiveness in construction project bidding[20] - The group completed the acquisition of 80% of Dongjie Construction for approximately RMB 71.4 million on January 17, 2020, and entered into an agreement to acquire 34% of Qingdao Honghai Curtain Wall Co., Ltd. for approximately RMB 49.9 million[40] - The group aims to expand its business into the Chinese construction industry through the acquisition of Dongjie Construction, enhancing its competitive position in the market[133] Financial Performance - Total revenue for the year ended December 31, 2020, was HKD 1,465.7 million, with contributions from various projects detailed in the report[11] - The company recorded a revenue of HKD 1,465.7 million for the fiscal year 2020, representing an increase of approximately 184.6% compared to the previous year[21] - The company achieved a gross profit of HKD 86.6 million in 2020, an increase of approximately 73.8%, although the gross profit margin decreased from 9.7% to 5.9%[22] - The company recorded a profit of HKD 16.0 million for 2020, a 32.8% increase from HKD 12.1 million in the previous year, driven by revenue growth and gross profit increases[31] - The company’s financial performance and asset-liability summary for the past five years are detailed in the annual report[94] Revenue Sources - Revenue from general construction contracting services in China exceeded that from maritime construction services in 2020[6] - The largest contribution to revenue came from general construction services in Qingdao, amounting to HKD 470.2 million, representing 32.1% of total revenue[11] - Revenue from maritime construction projects increased by approximately HKD 162.4 million, primarily from projects in Macau, contributing to a total of HKD 470.8 million in 2020[21] - The company anticipates that the general construction business will continue to be a major source of revenue, benefiting from synergies with the Qingdao West Coast Group[20] Project Developments - The group secured at least three new large projects in the maritime engineering sector in 2020, including contracts related to the Macau Cross-Sea Bridge[6] - The ongoing projects in Macau are expected to be completed by Q2 2022, with other contracts anticipated to finish in Q1 2023[11] - The estimated contract value for the new Science and Technology Innovation Center project in Qingdao is HKD 1,208.5 million, with an expected completion in Q3 2023[19] Corporate Governance and Compliance - The board of directors is committed to high standards of corporate governance and has adopted the corporate governance code as per the Hong Kong Stock Exchange[59] - The company has established four committees to oversee specific functions and ensure compliance with legal and regulatory requirements[66] - The company has not faced any sanctions or penalties for violating environmental laws or regulations during the fiscal year 2020[54] - The company has complied with all relevant laws and regulations in all material respects during the year ended December 31, 2020[149] Risk Management - The audit committee is responsible for hiring auditors, reviewing financial information, and overseeing the financial reporting system and risk management[70] - The risk management committee updated the risk assessment according to the latest operational conditions and identified key risks recorded in the risk register[76] - The board believes that the risk management and internal control systems are effective and adequate, although they are designed to manage rather than eliminate risks[77] Shareholder Relations - The company emphasizes effective communication with shareholders to enhance their understanding of the group's business and performance[84] - The board will strive to ensure attendance of committee chairpersons at the annual general meeting to address shareholder inquiries[84] - The board is committed to considering dividend distributions at least twice a year, based on various factors including operational performance and financial condition[89] Employee and Administrative Expenses - The total employee cost for the group in the fiscal year 2020 was approximately HKD 227.2 million, compared to HKD 64.3 million in 2019[47] - The company’s administrative expenses increased from approximately HKD 27.4 million in 2019 to about HKD 51.7 million in 2020, primarily due to operational costs from the newly acquired Dongjie Construction[27] Related Party Transactions - The independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms, ensuring fairness and reasonableness for shareholders[146] - The company has engaged external independent consultants to review the internal control system, covering management and financial information functions, financial reporting, procurement, and risk assessment[76] Audit and Financial Reporting - The auditor, PwC, has audited the consolidated financial statements for the year ended December 31, 2020, and will be proposed for reappointment at the upcoming annual general meeting[151] - Key audit matters identified include accounting for construction contracts, impairment assessment of trade receivables, and allocation of purchase price for the acquisition of 80% equity in Qingdao Dongjie Construction Engineering Co., Ltd.[176]