Financial Performance - Revenue for the year ended December 31, 2024, was HKD 1,631.3 million, a decrease of 23.3% compared to HKD 2,125.9 million in 2023[3] - Gross profit for the same period was HKD 130.1 million, down 28.1% from HKD 181.1 million in 2023, resulting in a gross margin of 8.0%[3] - The net loss for the year was HKD 150.7 million, an improvement from a loss of HKD 181.6 million in the previous year[3] - Basic and diluted loss per share was HKD 0.1989, compared to HKD 0.2361 in 2023[5] - The group recorded an operating loss of HKD 70.4 million for fiscal year 2024, an improvement from a loss of HKD 100.4 million in fiscal year 2023[47] - The cost of sales for fiscal year 2024 decreased by 22.8% to HKD 1,501.2 million, resulting in a gross margin of 8.0%, down from 8.5% in fiscal year 2023[41] - The group recorded an impairment loss provision of HKD 61.3 million for fiscal year 2024, including HKD 32.9 million for the general construction segment and HKD 28.4 million for the maritime segment[42] Assets and Liabilities - Total assets increased by 4.9% to HKD 5,280.4 million from HKD 5,035.6 million in 2023[3] - Total liabilities increased to HKD 4,974.5 million from HKD 4,555.1 million in 2023, indicating a rise in financial obligations[8] - Total equity decreased by 36.3% to HKD 305.9 million from HKD 480.5 million in 2023[3] - As of December 31, 2024, the group had a net current asset balance of approximately HKD 218.8 million and a net debt of HKD 1,571.0 million, with a debt-to-equity ratio increasing to 616.6% from 366.0% in the previous year[52] Cash Flow and Financial Obligations - The company expects to have sufficient operating funds to meet its financial obligations for the next twelve months[13] - As of December 31, 2024, the company failed to comply with certain financial covenants on bank loans, with an outstanding principal amount of HKD 129,500,000[12] - Total bank borrowings of HKD 428,541,000 have been classified as current liabilities due to covenant breaches[12] Trade and Receivables - The company reported a significant increase in trade receivables, which rose to HKD 1,264.3 million from HKD 1,188.6 million in 2023[7] - Trade receivables increased to HKD 1,289,969 thousand in 2024 from HKD 1,073,911 thousand in 2023, with a net increase of HKD 1,175,088 thousand after provisions[25] - The aging analysis of trade receivables shows that amounts over two years increased to HKD 138,603 thousand in 2024 from HKD 64,480 thousand in 2023[27] - The net receivables from related parties increased to HKD 1,204,120 thousand in 2024 from HKD 1,173,138 thousand in 2023, reflecting improved collection efforts[25] Business Operations and Market Conditions - The maritime construction market in Hong Kong and Macau continues to slow down, leading to increased competition and pricing pressure[34] - The company expanded its business coverage to Guangdong and Hainan provinces to mitigate risks associated with customer concentration and regional economic conditions[34] - The group has successfully expanded its general construction business into southern regions, including Guangzhou, Fuzhou, and Hainan, and is focusing on photovoltaic-related projects[36] - The company achieved a favorable arbitration ruling for a completed project in Hong Kong during the fiscal year 2024[35] - The largest four projects contributing to revenue in fiscal year 2024 did not exceed 5% of total revenue, indicating a diversified project portfolio[35] - The company is pursuing compensation for costs incurred on a large project in the Philippines that was suspended due to force majeure[34] Research and Development - Research and development expenses were HKD 21.1 million, slightly down from HKD 22.6 million in the previous year[5] - Research and development expenses remained stable at HKD 21.1 million for fiscal year 2024, focused on curtain wall engineering and construction technology[43] Employee and Administrative Costs - The total employee cost for the fiscal year 2024 was approximately HKD 127.2 million, a decrease of 32.5% from HKD 188.6 million in fiscal year 2023[63] - The number of employees decreased from 660 in 2023 to 567 in 2024, with significant reductions in project management and administrative roles[62] - Other administrative expenses decreased by HKD 44.1 million to HKD 129.6 million, primarily due to reductions in employee costs, professional fees, and leasing expenses[44] Dividends and Shareholder Returns - No interim dividend was declared for the year ending December 31, 2024, consistent with 2023[23] - The company has no plans to declare a final dividend for the year ending December 31, 2024, similar to 2023[24] - The board does not recommend the payment of dividends for the fiscal year 2024[65] Compliance and Governance - The group has maintained compliance with the minimum public float requirements under the listing rules throughout fiscal year 2024[76] - The group's auditor, Lixin Dehao Certified Public Accountants, confirmed that the preliminary performance announcement aligns with the audited financial statements for the year ending December 31, 2024[81] - The annual performance announcement will be published on the Stock Exchange and the company's website, with the annual report for FY2024 to be distributed electronically by the end of April 2025[82] - The board of directors includes executive directors Jiang Hongchang (Chairman), Dong Fang (Vice Chairman), Liu Yutao, Du Jianzhi, and Zhou Hongbao, along with independent non-executive directors Zhang Zhiwen, Chen Yan, and Liu Junchun[83] Other Information - The group did not hold any significant investments during fiscal year 2024[57] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during fiscal year 2024[56] - The group has not encountered any major labor disputes and has maintained good relationships with employees[63] - The group has not faced any sanctions or penalties for environmental law violations during fiscal year 2024[67] - There were no significant events after December 31, 2024, that would have a major impact on the group[69] - The company has adopted new Hong Kong Financial Reporting Standards effective from January 1, 2024, which are not expected to have a significant impact on the financial statements[14]

Management Discussion and Analysis [Business Review and Outlook](index=3&type=section&id=Business%20Review%20and%20Outlook) The company faced significant business challenges in H1 2024, with general building and marine construction revenues declining sharply, but holds over **HKD 3 billion** in contract backlog for future revenue - Revenue from the company's general building and marine construction business segments significantly declined during the period, impacted by a sluggish real estate market and a lack of major marine projects in Hong Kong and Macau[4](index=4&type=chunk) Revenue Changes by Business Segment | Business Segment | Revenue Change | | :--- | :--- | | General Building Contracting | Decreased by approx. 39% YoY | | Marine Construction | Decreased by approx. 62% YoY | - To address challenges, the company actively expanded into Guangdong and Hainan provinces, securing several large projects expected to contribute revenue starting in the second half of 2024[5](index=5&type=chunk) - The company successfully recovered a trade receivable with a book value exceeding **HKD 40 million** that was over 6 years old, demonstrating effective working capital management[5](index=5&type=chunk) - Despite business contraction in the first half, the company holds seven relatively large projects with a total contract backlog exceeding **HKD 3 billion**, anticipated to provide additional revenue to the Group in the second half of 2024[5](index=5&type=chunk) [Financial Review](index=4&type=section&id=Financial%20Review) For the period, the Group's total revenue decreased by **41.8%** to **HKD 509 million**, with gross profit falling by **30.2%** to **HKD 33.7 million** despite lower cost of sales, while increased administrative and finance costs led to an expanded loss for the period of **HKD 59.0 million** Key Financial Indicators for H1 2024 | Indicator | H1 2024 (HKD Million) | H1 2023 (HKD Million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 509.0 | 874.3 | -41.8% | | Gross Profit | 33.7 | 48.2 | -30.2% | | Gross Profit Margin | 6.6% | 5.5% | +1.1pp | | Other Administrative Expenses | 56.8 | 48.5 | +17.1% | | Finance Costs | 42.2 | 31.6 | +33.4% | | Loss for the Period | (59.0) | (43.6) | +35.3% | - The increase in other administrative expenses was primarily due to a **HKD 17.5 million** rise in vessel and equipment maintenance and idle costs within the marine construction segment[11](index=11&type=chunk) - The rise in finance costs was mainly attributable to increased bank borrowings for China operations and a general increase in interest rates[12](index=12&type=chunk) [Analysis of Financial Position](index=5&type=section&id=Analysis%20of%20Financial%20Position) As of June 30, 2024, the Group's financial position showed a decrease in both trade receivables and contract assets, reflecting collection efforts, while the Group held **40 vessels** and **195 sets of machinery and equipment**, with a slight improvement in trade receivables aging - As of June 30, 2024, the Group owned **40 vessels**, **195 sets of machinery and equipment**, and an office building located in Qingdao, China[15](index=15&type=chunk) Changes in Key Balance Sheet Items | Item | June 30, 2024 (HKD Million) | December 31, 2023 (HKD Million) | Change | | :--- | :--- | :--- | :--- | | Trade and Retention Receivables | 1,502.5 | 1,638.7 (Estimated) | -136.2 | | Contract Assets | 1,337.3 | 1,736.6 | -399.3 | - The aging profile of trade receivables and amounts due from fellow subsidiaries slightly improved at period-end, and management will continue to intensify collection efforts in the second half of 2024[17](index=17&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=6&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Structure) As of June 30, 2024, the Group's net current assets significantly increased to **HKD 487 million**, and net debt decreased to **HKD 1.401 billion**; however, the gearing ratio rose from **366.0%** to **425.5%** due to a decline in equity balance from the loss for the period, with the Group primarily operating in RMB, HKD, MOP, and USD without hedging policies Liquidity and Capital Structure Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Current Assets | HKD 486.8 Million | HKD 210.5 Million | | Net Debt | HKD 1,401.1 Million | HKD 1,553.1 Million | | Gearing Ratio | 425.5% | 366.0% | - The primary reason for the increase in the gearing ratio was the decrease in the Group's equity balance due to the loss incurred during the period[19](index=19&type=chunk) - The Group's operations are primarily conducted in RMB, HKD, MOP, and USD, with no hedging policies adopted, mitigating foreign exchange risk by settling contracts and expenses in major currencies[20](index=20&type=chunk) [Other Disclosures](index=7&type=section&id=Other%20Disclosures) During the period, the Group's total employees decreased from **660** to **603**, with a corresponding reduction in staff costs, minimal capital expenditure, no significant acquisitions or investments, and a pending litigation of **HKD 112 million** with uncertain outcome and no provision made, while the board decided not to declare an interim dividend - As of June 30, 2024, the Group's headcount was **603**, a decrease from **660** at the end of 2023; total staff costs decreased by **27%** year-on-year to **HKD 64.4 million**[22](index=22&type=chunk) - The Group faces a lawsuit with a claim amount of **HKD 112 million**, for which no provision has been made in the financial statements due to the early stage of the case and inability to assess the outcome[27](index=27&type=chunk)[102](index=102&type=chunk) - Qingdao West Coast Holdings (International) Co., Ltd. is the company's major shareholder, holding a **62.25%** equity stake[33](index=33&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[37](index=37&type=chunk)[74](index=74&type=chunk) Interim Condensed Consolidated Financial Statements [Interim Condensed Consolidated Statement of Comprehensive Income](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group recorded revenue of **HKD 509 million**, a **41.8%** year-on-year decrease, with loss for the period expanding to **HKD 59.0 million** from **HKD 43.6 million** in the prior year due to lower gross profit and increased expenses, resulting in a basic loss per share of **HKD 6.70 cents** Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Item (HKD Thousand) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 508,954 | 874,322 | | Gross Profit | 35,357 | 48,202 | | Operating Loss | (20,462) | (11,717) | | Loss Before Income Tax | (62,396) | (43,127) | | Loss for the Period | (59,029) | (43,585) | | Loss Attributable to Owners of the Company | (53,588) | (49,349) | | Basic Loss Per Share (HK Cents) | (6.70) | (6.17) | [Interim Condensed Consolidated Statement of Financial Position](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were **HKD 4.694 billion**, total liabilities **HKD 4.286 billion**, and total equity **HKD 409 million**; total assets and liabilities decreased from year-end 2023, equity declined due to loss for the period, while net current assets significantly improved from **HKD 211 million** to **HKD 487 million** Summary of Interim Condensed Consolidated Statement of Financial Position | Item (HKD Thousand) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 456,345 | 481,762 | | Current Assets | 4,237,993 | 4,553,842 | | **Total Assets** | **4,694,338** | **5,035,604** | | **Equity and Liabilities** | | | | Total Equity | 408,560 | 480,475 | | Non-current Liabilities | 534,552 | 211,824 | | Current Liabilities | 3,751,226 | 4,343,305 | | **Total Liabilities** | **4,285,778** | **4,555,129** | | **Total Equity and Liabilities** | **4,694,338** | **5,035,604** | [Interim Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, the Group's total equity decreased from **HKD 480 million** at the beginning of the year to **HKD 409 million**, primarily due to a loss for the period of **HKD 59.0 million** and other comprehensive loss from currency translation differences of **HKD 12.9 million** Summary of Changes in Equity (HKD Thousand) | Item | Amount | | :--- | :--- | | Total Equity as at January 1, 2024 | 480,475 | | Loss for the Period | (59,029) | | Other Comprehensive Loss (Exchange Differences) | (12,886) | | **Total Equity as at June 30, 2024** | **408,560** | [Interim Condensed Consolidated Statement of Cash Flows](index=14&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the period, the Group's cash flow significantly improved, with net cash generated from operating activities of **HKD 130 million** compared to a net outflow of **HKD 409 million** in the prior year, primarily due to effective collection of receivables and contract assets, increasing cash and cash equivalents to **HKD 292 million** at period-end Summary of Interim Condensed Consolidated Statement of Cash Flows | Item (HKD Thousand) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 130,402 | (409,062) | | Net Cash Generated From Investing Activities | 7,377 | 99,068 | | Net Cash Generated From Financing Activities | 6,155 | 197,606 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 143,934 | (112,388) | | Cash and Cash Equivalents at End of Period | 292,450 | 223,771 | Notes to the Interim Condensed Consolidated Financial Information [Note 5: Revenue and Segment Information](index=18&type=section&id=Note%205%3A%20Revenue%20and%20Segment%20Information) Total revenue for the period was **HKD 509 million**, with general building contracting services contributing the most at **HKD 468 million** but significantly decreasing year-on-year, while marine construction and related services also saw substantial revenue reductions; Mainland China remained the primary revenue source, accounting for over **90%**, and segment results showed losses for marine-related businesses but a slight profit for general building contracting services Revenue by Service Type (HKD Thousand) | Service Type | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Marine Construction Works | 38,289 | 73,728 | | Marine-Related Ancillary Services | 2,670 | 33,677 | | General Building Contracting Services | 467,995 | 766,917 | | **Total** | **508,954** | **874,322** | Revenue by Geographical Region (HKD Thousand) | Region | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Hong Kong | 38,750 | 74,242 | | Mainland China | 467,995 | 766,917 | | Philippines | – | 30,125 | | Indonesia | 2,208 | 3,038 | | **Total** | **508,953** | **874,322** | Segment Results (HKD Thousand) | Business Segment | H1 2024 Segment Results | | :--- | :--- | | Marine Construction Works | (7,694) | | Marine-Related Ancillary Services | (1,125) | | General Building Contracting Services | 363 | [Note 14: Trade and Retention Receivables, Bills Receivable and Amounts Due from Fellow Subsidiaries](index=28&type=section&id=Note%2014%3A%20Trade%20and%20Retention%20Receivables%2C%20Bills%20Receivable%20and%20Amounts%20Due%20from%20Fellow%20Subsidiaries) As of June 30, 2024, total trade and retention receivables and bills receivable decreased to **HKD 1.052 billion** from year-end 2023, with a significant increase in trade receivables over one year old; concurrently, amounts due from fellow subsidiaries slightly rose to **HKD 1.196 billion**, with a substantial increase in amounts over one year old, indicating extended collection cycles Aging Analysis of Trade Receivables (HKD Thousand) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 1 year | 350,203 | 722,566 | | 1 to 2 years | 304,778 | 189,299 | | Over 2 years | 322,350 | 64,480 | | **Total** | **977,331** | **976,345** | Aging Analysis of Amounts Due from Fellow Subsidiaries (HKD Thousand) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 1 year | 112,732 | 678,155 | | 1 to 2 years | 767,825 | 366,507 | | Over 2 years | 315,818 | 128,476 | | **Total** | **1,196,375** | **1,173,138** | [Note 19: Borrowings](index=32&type=section&id=Note%2019%3A%20Borrowings) As of June 30, 2024, the Group's total borrowings were **HKD 1.592 billion**, largely stable from year-end 2023, with short-term borrowings comprising the majority at approximately **HKD 1.190 billion**; borrowings are primarily denominated in RMB, accounting for about **77%**, and most bank facilities are secured by guarantees from the ultimate holding company, the Company, or subsidiaries, or by pledged assets Borrowing Structure (HKD Thousand) | Type | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-current (Long-term) | 402,729 | 78,423 | | Current (Short-term) | 1,189,757 | 1,534,260 | | **Total Borrowings** | **1,592,486** | **1,612,683** | Borrowings by Currency (HKD Thousand) | Currency | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | HKD | 323,020 | 321,119 | | MOP | 37,961 | 37,961 | | RMB | 1,231,505 | 1,253,603 | | **Total** | **1,592,486** | **1,612,683** | - The Group's loan facilities are largely supported by guarantees from the ultimate holding company, the Company, or subsidiaries, pledged deposits, or pledged property and equipment[98](index=98&type=chunk)[99](index=99&type=chunk) [Note 21: Related Party Transactions](index=35&type=section&id=Note%2021%3A%20Related%20Party%20Transactions) The Group has significant related party transactions with several fellow subsidiaries, primarily involving construction project revenue, totaling approximately **HKD 121 million** for the period; as of period-end, amounts due from fellow subsidiaries reached **HKD 1.196 billion**, amounts due to fellow subsidiaries were **HKD 152 million**, and loans from an intermediate holding company amounted to **HKD 146 million** - During the period, the Group derived construction project revenue from several fellow subsidiaries, including West Coast New Area, Haifa Investment, and West Coast Sci-Tech[108](index=108&type=chunk) Period-End Balances with Related Parties (HKD Thousand) | Item | June 30, 2024 | Nature | | :--- | :--- | :--- | | Amounts Due from Fellow Subsidiaries | 1,196,375 | Trade | | Amounts Due to Fellow Subsidiaries | (151,581) | Primarily Non-Trade | | Loan from an Intermediate Holding Company | (145,852) | Non-Trade | - Amounts due to Xifa Commercial Factoring originated from a supplier invoice factoring arrangement, essentially converting amounts payable to suppliers into amounts payable to a related party[110](index=110&type=chunk)

[Financial Statements](index=1&type=section&id=Financial%20Statements) [Condensed Consolidated Statement of Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's revenue declined significantly, leading to a wider net loss for the period ended June 30, 2024 Key Financial Performance | Metric | H1 2024 (HK$ '000) | H1 2023 (HK$ '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 508,954 | 874,322 | -41.8% | | Gross Profit | 35,357 | 48,202 | -26.6% | | Operating Loss | (20,462) | (11,717) | +74.6% | | Loss Before Income Tax | (62,396) | (43,127) | +44.7% | | Loss for the Period | (59,029) | (43,585) | +35.4% | | Loss Attributable to Owners | (53,588) | (49,349) | +8.6% | | Basic and Diluted Loss Per Share (HK cents) | (6.70) | (6.17) | +8.6% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets and equity decreased as of June 30, 2024, while overall liability levels remained high Key Balance Sheet Items | Metric | Jun 30, 2024 (HK$ '000) | Dec 31, 2023 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 4,694,338 | 5,035,604 | -6.8% | | Total Liabilities | 4,285,778 | 4,555,129 | -5.9% | | Total Equity | 408,560 | 480,475 | -15.0% | | Current Assets | 4,237,993 | 4,553,842 | -6.9% | | Current Liabilities | 3,751,226 | 4,343,305 | -13.6% | [Notes to Financial Statements](index=5&type=section&id=Notes%20to%20Financial%20Statements) [Note 1, 2, 4 - General Information and Basis of Preparation](index=5&type=section&id=Note%201%2C%202%2C%204%20-%20General%20Information%20and%20Basis%20of%20Preparation) The Group operates in marine construction and related services, with unaudited interim financials prepared under HKAS 34 - The Group is principally engaged in providing marine construction services, marine-related ancillary services, and general building construction contracting services[5](index=5&type=chunk) - The unaudited condensed consolidated interim financial information for the six months ended June 30, 2024, has been prepared in accordance with HKAS 34[7](index=7&type=chunk) [Note 3 - Financial Risk Management](index=6&type=section&id=Note%203%20-%20Financial%20Risk%20Management) The Group is exposed to market, credit, and liquidity risks, with no significant changes in risk management policies - The Group's risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on financial performance[11](index=11&type=chunk) - There have been **no changes in the risk management policies** since the end of 2023[11](index=11&type=chunk) [Note 5 - Revenue and Segment Information](index=7&type=section&id=Note%205%20-%20Revenue%20and%20Segment%20Information) Total revenue fell 41.8% to HK$509 million, with declines across all business segments and key geographic regions Revenue by Business Segment | Business Segment | H1 2024 (HK$ '000) | H1 2023 (HK$ '000) | YoY Change | | :--- | :--- | :--- | :--- | | Marine construction works | 38,289 | 73,728 | -48.1% | | Marine-related ancillary services | 2,670 | 33,677 | -92.1% | | General building construction contracting services | 467,995 | 766,917 | -39.0% | | **Total** | **508,954** | **874,322** | **-41.8%** | Revenue by Geographical Location | Region | H1 2024 (HK$ '000) | H1 2023 (HK$ '000) | YoY Change | | :--- | :--- | :--- | :--- | | Hong Kong | 38,750 | 74,242 | -47.8% | | Mainland China | 467,995 | 766,917 | -39.0% | | The Philippines | – | 30,125 | -100% | | Indonesia | 2,208 | 3,038 | -27.3% | [Note 6, 7, 8, 9 - Analysis of Key P&L Items](index=12&type=section&id=Note%206%2C%207%2C%208%2C%209%20-%20Analysis%20of%20Key%20P%26L%20Items) The loss before tax widened due to a significant increase in net finance costs, despite lower staff costs - **Net finance costs increased by 33.5% YoY** to HK$41.93 million, mainly due to higher interest expenses on bank loans[24](index=24&type=chunk) - Other net income was HK$6.83 million, a turnaround from a loss of HK$2.34 million in the prior period, primarily driven by a **foreign exchange gain of HK$5.54 million**[23](index=23&type=chunk) - Staff costs, including directors' remuneration, decreased to HK$64.44 million from HK$88.29 million in the same period last year[22](index=22&type=chunk) [Note 10, 11 - Dividends and Loss Per Share](index=13&type=section&id=Note%2010%2C%2011%20-%20Dividends%20and%20Loss%20Per%20Share) The Board did not recommend an interim dividend, and the basic and diluted loss per share widened to 6.70 HK cents - The Board of Directors **does not recommend the payment of an interim dividend** (H1 2023: Nil)[27](index=27&type=chunk) Loss Per Share | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Loss attributable to equity holders (HK$ '000) | (53,588) | (49,349) | | Basic loss per share (HK cents) | (6.70) | (6.17) | [Note 12-17 - Analysis of Key Balance Sheet Items](index=14&type=section&id=Note%2012-17%20-%20Analysis%20of%20Key%20Balance%20Sheet%20Items) Trade receivables and payables both decreased, while total borrowings remained stable at HK$1.59 billion - Total trade receivables, retention receivables, and bills receivable **decreased to HK$1.05 billion** from HK$1.19 billion at year-end 2023[32](index=32&type=chunk) - Total trade payables, retention payables, and bills payable **decreased significantly to HK$1.80 billion** from HK$2.37 billion at year-end 2023[35](index=35&type=chunk) Borrowings Breakdown | Borrowing Classification | Jun 30, 2024 (HK$ '000) | Dec 31, 2023 (HK$ '000) | | :--- | :--- | :--- | | Non-current | 402,729 | 78,423 | | Current | 1,189,757 | 1,534,260 | | **Total Borrowings** | **1,592,486** | **1,612,683** | [Note 18 - Related Party Transactions](index=21&type=section&id=Note%2018%20-%20Related%20Party%20Transactions) The Group has significant transactions with related parties, including large receivables from fellow subsidiaries - Revenue from construction projects with fellow subsidiaries constituted a significant portion of related party transactions during the period[46](index=46&type=chunk) - As of June 30, 2024, amounts due from fellow subsidiaries totaled **HK$1.20 billion**, which are trade in nature, unsecured, and interest-free[48](index=48&type=chunk) - Loans from an intermediate holding company totaled **HK$146 million**, which are non-trade in nature, interest-bearing, and secured[48](index=48&type=chunk)[50](index=50&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=27&type=section&id=Business%20Review%20and%20Outlook) Business performance was impacted by a sluggish property market, with future focus on new markets and receivables collection - The general building business was affected by the sluggish property market, while the marine construction business deteriorated due to a lack of major new projects in Hong Kong and Macau[52](index=52&type=chunk) - Future strategy involves **expanding into the general building markets of Guangdong and Hainan provinces** and strengthening the collection of trade receivables and contract assets[53](index=53&type=chunk) - The Group has seven major projects in hand with a **total contract balance exceeding HK$3 billion**, expected to contribute additional revenue in the second half of 2024[54](index=54&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) Revenue fell 41.8% to HK$509 million, and despite a slight gross margin improvement, the net loss widened - **Revenue decreased by 41.8% to HK$509 million**, mainly due to a HK$66.4 million decrease in the marine engineering segment and a HK$299 million decrease in the general building segment[55](index=55&type=chunk) - **Gross profit margin slightly increased to 6.6%** from 5.5% in the same period last year[56](index=56&type=chunk) - Other administrative expenses increased by HK$8.2 million, primarily due to higher maintenance and idle costs for vessels and machinery in the marine construction segment[59](index=59&type=chunk) - Due to a significant drop in gross profit and increases in administrative expenses and finance costs, the **loss after tax for the period was HK$59.0 million**, an increase of HK$15.4 million from the prior year's loss of HK$43.6 million[62](index=62&type=chunk) [Liquidity and Capital Management](index=30&type=section&id=Liquidity%20and%20Capital%20Management) The Group's net current assets increased and net debt decreased, but the gearing ratio rose to 425.5% Liquidity and Gearing | Metric | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Net Current Assets (HK$ million) | 486.8 | 210.5 | | Net Debt (HK$ million) | 1,401.1 | 1,553.1 | | Gearing Ratio | 425.5% | 366.0% | - The **increase in the gearing ratio** was due to the decrease in the Group's equity balance resulting from the loss incurred during the period[67](index=67&type=chunk) - As of June 30, 2024, the Group had **603 employees**, a decrease from 660 at the end of 2023[69](index=69&type=chunk) [Other Disclosures](index=31&type=section&id=Other%20Disclosures) [Contingent Liabilities and Litigation](index=31&type=section&id=Contingent%20Liabilities%20and%20Litigation) The Group has contingent liabilities from performance bonds and is involved in a lawsuit with a claim of HK$112 million - The Group had outstanding performance bonds given to customers for construction contracts amounting to **HK$43.9 million**[71](index=71&type=chunk) - Two subsidiaries are defendants in a lawsuit with a claim of **HK$112 million**; no provision has been made as the case is in its early stages and the outcome cannot be estimated[72](index=72&type=chunk) [Corporate Governance and Others](index=32&type=section&id=Corporate%20Governance%20and%20Others) The company complied with corporate governance codes, did not declare a dividend, and had no major post-period events - The Board **does not recommend the payment of a dividend** for the period[77](index=77&type=chunk) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[74](index=74&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial information[79](index=79&type=chunk)

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].