Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was approximately HKD 543.1 million, an increase of 13.6% compared to HKD 478.3 million in 2022[6] - The gross profit for the same period was HKD 116.8 million, reflecting an 18.9% increase from HKD 98.3 million in the previous year[6] - The profit attributable to the company's owners was approximately HKD 11.7 million, a significant turnaround from a loss of HKD 32.5 million in 2022, marking a 136.0% improvement[6] - Basic earnings per share improved to HKD 1.15 from a loss of HKD 3.19, representing a 136.1% increase[6] - The gross profit margin increased to 21.5% from 20.6%, reflecting a 4.4% improvement year-over-year[7] - The asphalt pavement maintenance service segment recorded revenue of approximately HKD 494.5 million, an increase of 8.7% from 2022, with a gross margin rising from 38.8% to 42.7%[23] - The asphalt pavement maintenance equipment segment saw a significant revenue increase of 108.0% in 2023, primarily due to delayed capital investments from local governments and successful sales of modular equipment[25] - The total revenue for the asphalt pavement maintenance services increased by 8.7% to HKD 494.5 million in 2023, compared to HKD 454.9 million in 2022[40] - The revenue from the "in-situ thermal regeneration" projects rose by 1.4% to HKD 139.3 million, while the revenue from non-"in-situ thermal regeneration" projects increased by 11.9% to HKD 355.2 million[40] - The gross profit margin for the "in-situ thermal regeneration" projects improved to 42.7% in 2023 from 38.8% in 2022, while the overall gross profit margin increased to 19.3%[40] Financial Position - As of December 31, 2023, the company's cash and cash equivalents totaled approximately HKD 254.3 million, a decrease of 11.2% from HKD 286.3 million in 2022[7] - The company maintained a healthy financial position with a current ratio of 2.1, up 10.5% from 1.9 in the previous year[7] - As of December 31, 2023, total equity was approximately HKD 763.3 million, an increase from HKD 755.1 million in 2022, driven by profit attributable to owners and currency translation adjustments[57] - The net current asset value as of December 31, 2023, was approximately HKD 485.7 million, up from HKD 456.8 million in 2022, with a current ratio of 2.1 times[57] - The investment property valued at approximately HKD 140.9 million as of December 31, 2023, is being developed into a global R&D center, with completion expected in Q4 2025[64] Strategic Outlook - The company anticipates that the demand for road maintenance services will accelerate due to the backlog of maintenance needs post-COVID-19, which is expected to drive revenue growth[11] - The outlook for 2024 indicates challenges due to geopolitical tensions and inflation risks, but the long-term trend for China's economy remains positive[13] - The company plans to explore low-carbon, environmentally friendly industrial parks as new business growth points[19] - The company aims to contribute to sustainable development in the asphalt maintenance industry through advanced technology and customized solutions[30] - The company plans to enhance market penetration, especially in cities with limited use of "in-situ thermal regeneration" technology[36] - The company aims to expand its product offerings and develop new products for the road industry[36] - The company is committed to investing more in testing and planning departments to strengthen its one-stop solution and create new revenue sources[36] - The company is exploring overseas opportunities through strategic partnerships with state-owned enterprises and other companies[33] Research and Development - The company registered a total of 238 patents as of December 31, 2023, up from 222 in 2022, including 30 invention patents[29] - The company developed a cloud-based intelligent monitoring platform for its modular series equipment, enhancing operational efficiency and real-time monitoring capabilities[29] - The company is actively investing in technology innovation to maintain its leading position in the asphalt pavement maintenance industry[28] - The company has utilized HKD 140.2 million for R&D, with an expected completion before 2025[67] - The company is investing G million in R&D for new technologies, aiming to improve efficiency and reduce costs by H%[97] Governance and Compliance - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors[109] - The company has adopted the corporate governance code and has complied with the relevant principles, except for the separation of the roles of chairman and CEO, which is currently held by the same individual[103] - The board has established a system of internal controls to ensure effective monitoring and checks and balances[103] - The company has received annual independence confirmation letters from all independent non-executive directors, affirming their compliance with independence guidelines[113] - The board has set up a remuneration committee, nomination committee, and audit committee, with satisfactory attendance at meetings during the year[120] - The company is committed to continuous professional development for all directors, ensuring they stay updated on legal and regulatory changes[119] - The board retains decision-making authority over significant matters, including financial data and major transactions[116] - The company plans to consider separating the roles of chairman and CEO as it grows in scale[110] Risk Management - The company faces significant risks related to its revenue dependence on the sale of asphalt maintenance equipment and services to local governments in China, which may be affected by fluctuations in government spending and inflation[81] - The company plans to diversify its customer base to mitigate risks associated with potential declines in government spending on road maintenance[81] - The company is enhancing its credit control and collection policies to minimize credit risk associated with trade receivables[84] - The company is adopting environmental compliance policies to meet stricter regulations imposed by the Chinese government, which may lead to additional costs for updating environmental equipment[85] Related Party Transactions - The related party transactions with Tianjin Expressway Group include service agreements with a total value of RMB 25,593,000 for the period from June 3, 2023, to August 31, 2023[193] - Additional related party transactions with Tianjin Expressway Group amount to RMB 14,050,000 and RMB 10,622,000 for the same service period[194] - The company has maintained a strong relationship with Tianjin Expressway Group, engaging in multiple service agreements to enhance operational efficiency[194] - The total value of related party transactions for the year reflects the company's ongoing collaboration with key stakeholders in the industry[193] Shareholder Information - The company has a total of 529,688,260 shares held by major shareholders, representing approximately 49.09% of the issued share capital[179] - The company does not recommend declaring any interim dividends for the six months ending June 30, 2023, and similarly, no dividends are suggested for the year ending December 31, 2023[157] - As of December 31, 2023, the company's distributable reserves amount to approximately HKD 597.2 million, a decrease from HKD 617.3 million in 2022[166] - Sales to the top five customers accounted for approximately 59.3% of total sales for the year, with the largest customer representing about 42.9% of total sales[167] - The company made charitable donations totaling HKD 61,000 during the review year[168]

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 543,103,000, representing a 13.6% increase from HKD 478,257,000 in 2022[3] - Profit attributable to owners of the company was HKD 11,677,000, a significant turnaround from a loss of HKD 32,477,000 in the previous year, marking a 136.0% improvement[3] - Basic earnings per share increased to HKD 1.15, compared to a loss per share of HKD 3.19 in 2022, reflecting a 136.1% increase[3] - Gross profit for the year was HKD 116,847,000, up from HKD 98,304,000 in 2022, indicating a strong growth in profitability[5] - The company reported a total revenue of HKD 108,793 million, with a net loss of HKD 11,081 million for the year[7] - The basic loss per share was HKD 3.19, compared to a profit of HKD 1.15 in the previous year[7] - The total comprehensive income for the year was HKD 11,081 million, reflecting a significant decline from the previous year[7] - The total comprehensive loss attributable to equity holders was HKD 96,815 million, compared to a profit in the previous year[7] - The company reported a segment profit of HKD 51,884,000, despite a loss of HKD 12,591,000 from inter-segment sales[33] Operational Efficiency - Total operating expenses, including research and administrative costs, were HKD 75,995,000, compared to HKD 70,183,000 in the previous year, showing an increase in operational investment[5] - The company achieved a gross margin of approximately 21.5%, up from 20.6% in the previous year, indicating improved efficiency in operations[5] - The company aims to improve operational efficiency and reduce costs through the implementation of new technologies and streamlined processes[24] - The gross profit margin for the road maintenance equipment segment decreased from 47.5% in 2022 to 44.0% in 2023 due to lower sales of the lower-margin integrated series equipment[86] Market Strategy and Growth - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[2] - Future guidance suggests a focus on enhancing product offerings and exploring potential acquisitions to strengthen market position[2] - The company plans to focus on market expansion and new product development in the upcoming fiscal year[7] - The company is exploring potential mergers and acquisitions to enhance its market position[7] - The company plans to expand its asphalt pavement maintenance business, as discussed in the corporate governance report[117] Assets and Liabilities - Total assets decreased from HKD 956,094 thousand in 2022 to HKD 940,614 thousand in 2023, a decline of approximately 1.5%[9] - Total liabilities decreased from HKD 499,248 thousand in 2022 to HKD 454,916 thousand in 2023, a decline of about 8.9%[10] - Total equity increased from HKD 755,133 thousand in 2022 to HKD 763,315 thousand in 2023, reflecting an increase of about 1.1%[10] - The company's total liabilities to equity ratio improved from 0.66 in 2022 to 0.60 in 2023, indicating a stronger equity position[10] Research and Development - Research and development expenses increased to HKD 24,310,000 from HKD 21,631,000, reflecting the company's commitment to innovation[5] - The company registered a total of 238 patents as of December 31, 2023, up from 222 in 2022, including 30 invention patents[69] - The company has developed a new technology and materials for restoring manhole structures, which significantly reduces work time compared to traditional methods[72] Tax and Financial Management - The income tax expense for 2023 was HKD 2,996,000, which is an increase from HKD 2,792,000 in 2022, reflecting a growth of about 7.3%[45] - The company recognized a deferred tax expense of HKD 715,000 for the year, compared to a deferred tax benefit of HKD 8,529,000 in the previous year, indicating a significant shift in tax position[46] - The company’s total tax provision for the year was HKD 11,617,000, which reflects a significant increase from the previous year’s provision[45] Employee and Operational Costs - The total employee costs for 2023 amounted to HKD 79,403,000, slightly down from HKD 80,903,000 in 2022, showing a decrease of approximately 1.9%[44] - The service costs for 2023 were reported at HKD 399,050,000, an increase from HKD 367,701,000 in 2022, representing an increase of about 8.5%[44] - The company’s employee benefits expenses, including share-based payments, were HKD 99,000 for the year, compared to HKD 386,000 in 2022, indicating a decrease of approximately 74.3%[44] Future Outlook - Future guidance indicates a cautious outlook due to ongoing market challenges and economic conditions[7] - The company aims to benefit from the favorable development prospects of the environmental protection industry and government policies[76] - The group expects continued growth in the asphalt pavement maintenance sector due to increased demand for infrastructure investment[63]

Financial Performance - The company's revenue for the six months ended June 30, 2023, was approximately HKD 164.04 million, a decrease of 9.3% compared to HKD 180.90 million in the same period of 2022[6]. - Gross profit increased by 37.6% to HKD 29.08 million, resulting in a gross profit margin of 17.7%, up from 11.7% in the previous year[6]. - The profit attributable to the company's owners was approximately HKD 2.28 million, a significant improvement of 123.4% compared to a loss of HKD 9.75 million in the same period last year[6]. - The total revenue for the asphalt pavement maintenance services decreased by 22.0% to HKD 132.5 million in the first half of 2023, compared to HKD 169.8 million in the same period of 2022[28]. - The revenue from "in-situ thermal regeneration" projects dropped by 19.3% to HKD 30.1 million, despite an increase in service area from 361,000 square meters to 520,000 square meters[28]. - The company reported a significant increase in bank borrowings, raising HKD 50,630 thousand in the current period compared to HKD 23,730 thousand in the previous year, marking an increase of 113.5%[97]. - The company reported a loss before tax of HKD 7,615,000 for the six months ended June 30, 2023, compared to a loss of HKD 9,750,000 in the same period of 2022, showing an improvement[119]. Revenue Segmentation - Revenue from maintenance services was HKD 132,500,000, while equipment sales contributed HKD 31,543,000, indicating a significant reliance on maintenance services[103]. - The "In-situ Thermal Regeneration" project generated HKD 30,125,000 in revenue, while non-"In-situ Thermal Regeneration" projects accounted for HKD 102,375,000[103]. - The asphalt pavement maintenance service segment recorded revenue of approximately HKD 132.50 million, a decrease of 22.0% compared to the previous year, but the gross profit margin improved from 9.2% to 10.6%[12]. Technological Innovation - The company continues to focus on technological innovation to maintain its leading position in the asphalt pavement maintenance industry[14]. - A cloud-based intelligent monitoring platform was developed for the modular series equipment, allowing real-time monitoring of operational parameters[17]. - The company has developed a new technology and materials for repairing manhole structures, expected to gain popularity in the asphalt pavement maintenance industry[18]. Cost Management - Sales and distribution costs rose from HKD 7.0 million to HKD 10.1 million, an increase of approximately HKD 3.1 million, attributed to increased travel and promotional expenses following the easing of COVID-19 restrictions[36]. - Administrative expenses increased from HKD 32.8 million to HKD 34.6 million, a rise of approximately HKD 1.8 million, mainly due to increased travel expenses and employee costs[37]. - R&D costs increased from HKD 6.9 million to HKD 7.3 million, an increase of approximately HKD 0.4 million, reflecting the company's increased investment in R&D[38]. Assets and Liabilities - Cash and cash equivalents decreased to approximately HKD 249.9 million from HKD 286.3 million, primarily due to cash used in operating activities and increased bank borrowings[45]. - Trade receivables and contract assets decreased by approximately 19.5% from HKD 758.3 million to HKD 610.5 million, mainly due to the recovery of long-term overdue balances[45]. - Total debt increased to HKD 93.7 million from HKD 91.2 million, including secured bank borrowings of HKD 33.5 million and unsecured bank borrowings of HKD 60.2 million[50]. Shareholder Information - The company’s major shareholders include Mr. Shi, holding approximately 50.30% of the issued share capital[61]. - Major shareholders include Yingda Technology with 529,688,260 shares, representing 49.09% of the issued share capital[65]. - Bank of Communications Trustee holds 70,419,200 shares, accounting for 6.53% of the issued share capital, having increased from 64,819,200 shares[65]. Employee and Management - As of June 30, 2023, the company employed 492 full-time employees, with total employee costs amounting to HKD 38.3 million[59]. - The company emphasizes employee development and offers competitive compensation packages, including discretionary bonuses and medical insurance[59]. - The total remuneration for key management personnel increased to HKD 2,274,000 in 2023 from HKD 2,212,000 in 2022, an increase of 2.8%[162]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[78]. - The board of directors confirmed compliance with the securities trading standards throughout the reporting period[81]. Future Plans - The company plans to enhance market penetration, especially in cities with limited use of "in-situ thermal regeneration" technology[24]. - The company aims to expand its product offerings and develop new products for the road industry[24]. - The company is committed to investing more in testing and planning departments to strengthen its one-stop solution and create new revenue sources[24].

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，概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：6888） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 期 間 中 期 業 績 公 告 英達公路再生科技（集團）有限公司（「本公司」）董事會（「董事會」）欣然公佈 本公司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個 月期間（「本期間」）之未經審核綜合中期業績。 財務摘要 截至六月三十日止 六個月期間 二零二三年 二零二二年 增加╱ 未經審核 未經審核 （減少） 千港元 千港元 收益 164,043 180,899 (9.3%) ...

Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately HKD 478.3 million, a decrease of 6.5% compared to HKD 511.6 million in 2021[4] - The gross profit for the same period was HKD 98.3 million, reflecting a decline of 23.6% from HKD 128.6 million in the previous year[4] - The loss attributable to the company's owners was approximately HKD 32.5 million, a significant increase of 201.7% compared to a profit of HKD 31.9 million in 2021[4] - The basic loss per share was HKD 3.19, compared to earnings of HKD 3.13 per share in the prior year, marking a 201.9% decline[4] - The company's equity attributable to owners was HKD 722.3 million, a decrease of 11.8% from HKD 819.0 million in the previous year[5] - The gross margin for the year was 20.6%, down from 25.1% in 2021, indicating a decline of 17.9%[5] - The net loss margin was (8.2%) compared to a profit margin of 8.7% in the previous year, reflecting a 194.3% decline[5] - In 2022, the company's operating revenue was approximately HKD 478.3 million, a decrease of about 6.5% compared to 2021[20] - The loss attributable to shareholders was approximately HKD 32.5 million, compared to a profit of approximately HKD 32.0 million in 2021[20] Cash and Assets - As of December 31, 2022, the company's cash and cash equivalents totaled approximately HKD 286.3 million, down 7.7% from HKD 310.3 million in 2021[5] - The group reported a loss attributable to owners of approximately HKD 32.5 million in 2022, compared to a profit of about HKD 32.0 million in 2021, due to various factors including reduced revenue from asphalt maintenance services[49] - As of December 31, 2022, total equity was approximately HKD 755.1 million, down from HKD 863.8 million in 2021, primarily due to the loss attributable to owners and currency translation adjustments[50] - The net current asset value decreased to approximately HKD 456.8 million as of December 31, 2022, from HKD 533.3 million in 2021, with a current ratio of 1.9 times[50] - Cash and cash equivalents decreased to approximately HKD 286.3 million as of December 31, 2022, from HKD 310.3 million in 2021, mainly due to cash used in operating activities and currency depreciation[51] Revenue Segments - Revenue from the asphalt pavement maintenance service segment decreased by 21.9% due to the impact of COVID-19 restrictions[22] - The revenue from the asphalt pavement maintenance service segment was approximately HKD 454.9 million, an increase of 2.7% compared to 2021[22] - The revenue from the asphalt pavement maintenance equipment segment decreased significantly by 66.0% due to postponed capital investments[24] - In 2022, the revenue from the "in-situ thermal regeneration" projects was HKD 137.39 million, a decrease of 21.9% from HKD 175.97 million in 2021[37] - The revenue from non-"in-situ thermal regeneration" projects increased by 19.0% to HKD 317.51 million in 2022, compared to HKD 266.87 million in 2021[37] - The revenue from the asphalt pavement maintenance equipment segment dropped significantly by 66.0% to HKD 23.36 million in 2022, down from HKD 68.78 million in 2021[39] Operational Challenges - The company faced operational challenges due to COVID-19 restrictions, impacting its ability to provide road maintenance services and resulting in increased credit loss risks[9] - The group’s share of losses from joint ventures increased from approximately HKD 2.3 million in 2021 to about HKD 8.2 million in 2022, impacted by COVID-19 and impairment losses on property and trade receivables[46] - The company faces credit risk due to potential delays in collecting trade receivables, particularly from local governments, and is enhancing its credit control and collection policies[75] Strategic Initiatives - The company anticipates continued growth in government investment in road maintenance, with projected fiscal spending expected to exceed HKD 100 billion by 2026[13] - The company is actively pursuing digital transformation in road maintenance services to enhance efficiency and service quality[1] - The company aims to create more investment returns for shareholders while contributing to the sustainable development of road maintenance services in the country[1] - The company plans to enhance market penetration, especially in cities with limited use of "in-situ thermal regeneration" technology[34] - The company aims to expand its product range and develop new products for the road industry[34] - The company is exploring overseas opportunities and strategic partnerships, particularly in countries along the "Belt and Road" initiative and the Four Asian Tigers[32] Research and Development - The company registered a total of 222 patents as of December 31, 2022, an increase from 210 in 2021[28] - The company has developed a new preventive maintenance technology for asphalt pavement, which is expected to be well-received in the industry[28] - The construction of investment properties in Nanjing, initiated in Q1 2022, is expected to enhance the company's R&D capabilities and provide additional revenue sources[33] - The group has allocated HKD 137.4 million for R&D business investment, with no funds utilized in the review year due to the lack of suitable joint venture partners or acquisition targets[60] Governance and Compliance - The company emphasizes the importance of maintaining strong relationships with stakeholders, including employees, customers, suppliers, and government entities, to ensure sustainable development[71] - The company has established an internal control system to ensure effective monitoring and checks within its governance framework[96] - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors[103] - The company has appointed two new independent non-executive directors as of December 30, 2022, to comply with corporate governance code requirements[97] - The company has established specific committees (remuneration, nomination, and audit) with defined responsibilities to enhance governance[112] - The board's composition includes leaders with diverse backgrounds in industry, accounting, finance, and academia, contributing to informed decision-making[120] Shareholder Information - The company has not established a dividend policy, with future dividends subject to board discretion based on various factors[148] - The company's distributable reserves as of December 31, 2022, were approximately HKD 617.3 million, a decrease from HKD 665.9 million in 2021[157] - Sales to the top five customers accounted for approximately 55.0% of total sales for the year, with the largest customer representing about 33.5%[158] - The company made charitable donations amounting to HKD 705,000 during the year[159] - The company has a total of 542,688,260 shares held by Mr. Shi, representing approximately 50.30% of the issued share capital[165] Related Party Transactions - The company engaged in continuous related transactions with Tianjin Expressway Group, with actual transaction amounts for the year reaching RMB 38,675,000 (approximately HKD 44,861,000) for Tianjin Expressway Group[183] - The independent non-executive directors confirmed that the related transactions were conducted under normal commercial terms and in the best interest of shareholders[188] - The company has complied with the disclosure requirements of the listing rules regarding related party transactions[191]

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，概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：6888） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 年 度 業 績 公 告 英達公路再生科技（集團）有限公司（「本公司」）董事會（「董事會」）欣然宣佈 本公司及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止 年度之綜合業績。 財務摘要 截至十二月三十一日 止年度 （減少）╱ 二零二二年 二零二一年 增加 千港元 千港元 ...

Financial Performance - The company's revenue for the six months ended June 30, 2022, was HKD 180.9 million, representing a 38.5% increase compared to HKD 130.6 million in the same period of 2021[6]. - The gross profit decreased to HKD 21.1 million, down 28.1% from HKD 29.4 million year-on-year, resulting in a gross margin of 11.7% compared to 22.5% in the previous year[6]. - The company reported a loss attributable to shareholders of HKD 9.8 million, a significant decline of 646.2% from a profit of HKD 1.8 million in the same period last year[6]. - Total revenue increased by 64.5% to HKD 169.84 million from HKD 103.28 million year-on-year[35]. - The company reported a basic and diluted loss per share of HKD 0.96 for the six months ended June 30, 2022, compared to earnings of HKD 0.18 in the same period of 2021[113]. - The total comprehensive income for the period was a loss of HKD 44,907,000 compared to a gain of HKD 17,113,000 in the previous year[113]. - The company reported a loss of HKD 8,228,000 for the period, compared to a profit of HKD 1,522,000 in the previous year[113]. - The company incurred a loss of HKD 7,615,000 before income tax expenses for the six months ended June 30, 2022[133]. - The company reported a net cash outflow from operating activities of HKD 30,712,000 for the six months ended June 30, 2022, compared to a net cash outflow of HKD 9,114,000 for the same period in 2021[133]. Revenue Segmentation - Revenue from the asphalt pavement maintenance services segment increased by 64.5% to HKD 169.8 million, despite a 26.0% decrease in revenue from in-situ thermal regeneration projects due to COVID-19 restrictions[15]. - Revenue from the "In-situ Thermal Regeneration" project decreased by 26.0% to HKD 37.34 million compared to HKD 50.48 million in the same period last year[35]. - Revenue from asphalt pavement maintenance equipment decreased significantly by 59.6% to HKD 11.06 million from HKD 27.37 million year-on-year[39]. - Total revenue for the six months ended June 30, 2022, was HKD 181,554,000, with maintenance services contributing HKD 170,285,000 and equipment sales contributing HKD 11,269,000[149]. - Revenue from external customers in mainland China was HKD 180,448,000, while overseas revenue was HKD 451,000, indicating a strong domestic market presence[149]. Operational Challenges - The overall operational performance reflects the impact of strict COVID-19 measures, which hindered the completion of many projects, particularly in various provinces in China[11]. - The asphalt pavement maintenance equipment segment recorded revenue of HKD 11.1 million, a substantial decrease of 59.6% compared to the previous year, primarily due to logistics disruptions caused by strict COVID-19 measures[16]. - The anticipated credit loss provisions for trade receivables and contract assets were lower than the same period last year, indicating improved credit risk management[11]. - The group remains cautiously optimistic about its operations in 2022 despite uncertainties due to the ongoing COVID-19 pandemic in China[25]. Innovation and Development - The company continues to focus on technological innovation to maintain its leading position in the asphalt pavement maintenance industry utilizing in-situ thermal regeneration technology[17]. - The group has developed a new thin asphalt overlay technology that enhances wear and crack resistance, suitable for road maintenance and concrete upgrades[22]. - The group has successfully developed new technologies for roadbed repair, which are expected to improve revenue and market share[28]. - The group has 37 pending patent applications, maintaining its focus on innovation and competitive advantage in the asphalt maintenance industry[21]. Market Strategy - The company aims to expand its market presence despite challenges posed by COVID-19, leveraging its established relationships and capabilities in the industry[11]. - The group plans to enhance its market position by increasing market penetration, especially in cities with limited use of in-situ thermal regeneration technology[29]. - The group is exploring overseas opportunities through partnerships with state-owned enterprises, particularly in countries along the Belt and Road Initiative[28]. - The company has plans for market expansion and new product development, focusing on enhancing its road maintenance equipment and services in China[143]. Financial Position - As of June 30, 2022, the group's bank balances and cash, including fixed deposits and pledged bank deposits, amounted to approximately HKD 294.3 million, a decrease of about 5.0% from HKD 310.3 million as of December 31, 2021[54]. - The group's total debt as of June 30, 2022, was HKD 102.7 million, an increase from HKD 95.4 million as of December 31, 2021[59]. - The group has a net cash position as of June 30, 2022, despite the increase in bank borrowings[54]. - The group intends to lease part of the office space in the main building of the investment property to third parties, which will provide an additional source of income[56]. - The group has not utilized the proceeds from the IPO for the establishment of joint ventures or acquisitions of asphalt maintenance service providers during the review period[64]. Employee and Governance - The group provides competitive compensation packages to retain employees, including discretionary bonus plans and medical insurance[70]. - The board of directors is committed to high levels of corporate governance to protect shareholder interests and enhance corporate value[98]. - The company has adopted a written guideline for employees regarding securities trading to ensure compliance with the standard code[104]. - No violations of the employee written guidelines were reported during the period[105].

Financial Performance - Revenue for the year ended December 31, 2021, was HKD 511.619 million, a decrease of 5.6% from HKD 541.911 million in 2020[44] - Gross profit increased by 8.8% to HKD 128.587 million, compared to HKD 118.142 million in the previous year[44] - Profit attributable to owners of the company was HKD 31.948 million, reflecting a slight increase of 1.0% from HKD 31.636 million in 2020[44] - Basic earnings per share rose by 4.7% to HKD 3.13, up from HKD 2.99 in the prior year[44] - Overall revenue decreased by 8.7% to HKD 442.839 million in 2021 compared to HKD 484.850 million in 2020[86] - The net profit attributable to the company's owners was approximately HKD 32 million, an increase of about 1.0% from HKD 31.6 million in 2020[60] - Revenue from the "In-situ Thermal Regeneration" project decreased by 27.4% to HKD 175.973 million in 2021, with service area dropping 39.0% to 2.514 million square meters due to COVID-19 disruptions[86] - Non-"In-situ Thermal Regeneration" project revenue increased by 10.1% to HKD 266.866 million, attributed to delayed highway maintenance projects from 2020[86] Cash and Equity - Cash and cash equivalents, including bank deposits, increased by 5.9% to HKD 310.293 million from HKD 293.102 million[45] - Total equity attributable to owners of the company increased by 5.6% to HKD 818.985 million from HKD 775.595 million[45] - The net current assets as of December 31, 2021, were approximately HKD 533.3 million, up from HKD 336.2 million in 2020, with a current ratio of 2.2 times compared to 1.7 times in the previous year[105] - The group's cash and cash equivalents, including bank deposits and restricted cash, amounted to approximately HKD 310.3 million as of December 31, 2021, an increase from HKD 293.1 million in 2020, driven by net cash generated from operating activities[106] Borrowings and Financial Stability - Bank borrowings decreased by 4.5% to HKD 95.438 million, down from HKD 99.960 million[45] - As of December 31, 2021, the company's bank borrowings were composed of 61.5% fixed-rate and 38.5% floating-rate loans, compared to 100% fixed-rate in 2020[18] - The company has no significant contingent liabilities as of December 31, 2021, indicating a stable financial position[120] Operational Efficiency and Technology - The group has implemented a digital maintenance strategy, leveraging IT technology for proactive and preventive management of road maintenance[56] - The company has made significant advancements in technology research and development, including AI recognition systems and automated modular equipment, which are currently in testing[56] - The company aims to leverage its innovative "in-situ thermal regeneration" technology to improve operational efficiency and sustainability[153] - New product development efforts led to the launch of two innovative recycling technologies, expected to increase operational efficiency by 30%[200] Market and Growth Strategy - The market demand for road maintenance services in China is expected to continue growing, with a favorable development outlook[56] - The company plans to increase market penetration, especially in cities with limited use of in-situ thermal regeneration technology, and to target high-profile projects in cities hosting major events[79] - The company is set to expand its international market presence by leveraging partnerships with state-owned enterprises and exploring opportunities along the Belt and Road Initiative[79] - Market expansion plans include entering three new countries in Southeast Asia by the end of 2022, targeting a market share increase of 10%[200] Research and Development - The company has registered a total of 210 patents as of December 31, 2021, up from 189 in 2020, including 22 invention patents, 162 utility model patents, and 26 design patents[71] - Research and development expenses increased by 20%, totaling HKD 150 million, to support new technology initiatives[200] - The company has established a robust framework for product and technology research and development, led by experienced engineers[153] Corporate Governance - The company is committed to high levels of corporate governance to protect shareholder interests and enhance corporate value and accountability[172] - The board has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, with the exception of the separation of the roles of chairman and CEO[172] - The company aims to separate the roles of chairman and CEO as it grows larger in scale[172] - The board includes three independent non-executive directors to provide independent and diverse perspectives[172] Sustainability and Corporate Social Responsibility - The company is committed to sustainable development through the use of 100% recycled materials in its operations[28] - A new partnership with a leading environmental organization was established to enhance sustainability efforts and brand reputation[200] - The company is actively involved in community service and public affairs, reflecting its commitment to corporate social responsibility[158] Employee and Management - The company employed 489 full-time employees as of December 31, 2021, a decrease from 499 in 2020[27] - The management team has over 20 years of experience in engineering and corporate strategy, which supports the company's growth initiatives[153] - The company aims to provide competitive market remuneration to attract and retain high-quality employees[198]

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of HKD 130.644 million, an increase of 15.0% compared to HKD 113.631 million in the same period of 2020[10]. - Gross profit for the same period was HKD 29.402 million, representing a significant increase of 268.5% from HKD 7.978 million in 2020[10]. - The profit attributable to owners of the company was HKD 1.785 million, a turnaround from a loss of HKD 24.165 million in the previous year, marking an increase of 107.4%[10]. - The company achieved a gross profit margin of 22.5%, up from 7.0% in the prior year[10]. - The company reported a net profit of HKD 8,515,000 for the period, compared to a net loss of HKD 34,218,000 in the previous year[134]. - Basic earnings per share for the period was HKD 0.18, a significant improvement from a loss of HKD 2.28 per share in the prior year[134]. - Total comprehensive income for the period was HKD 17,113,000, compared to a loss of HKD 48,203,000 in the same period last year[134]. - The group reported a profit before tax of HKD 7,697,000 for the six months ended June 30, 2021, compared to a loss of HKD 31,501,000 in the same period of 2020[154]. Revenue Breakdown - Revenue from asphalt pavement maintenance services increased by 20.7% to approximately HKD 103.3 million, while the revenue from asphalt pavement maintenance equipment slightly decreased by 2.5% to HKD 27.4 million[18][19]. - The company's revenue from "in-situ hot recycling" projects increased by 26.0% to HKD 50.478 million, while non-"in-situ hot recycling" projects rose by 16.0% to HKD 52.798 million, leading to a total revenue increase of 20.7% to HKD 103.276 million[43]. - Total revenue for the six months was HKD 130,644,000, with maintenance services contributing HKD 103,276,000 and equipment sales contributing HKD 27,368,000[165]. - Revenue from maintenance services was HKD 103,453,000, while equipment sales contributed HKD 27,673,000, indicating a strong performance in both segments[177]. Research and Development - The company registered a total of 193 patents as of June 30, 2021, up from 189 at the end of 2020, including 20 invention patents[21]. - The company has developed a new structural polymer material for underground structure repairs, which reduces the need for extensive excavation[26]. - A warm-mix additive has been researched to lower the operating temperature of the in-situ thermal regeneration process, reducing fuel consumption[26]. - The company continues to enhance its R&D capabilities to maintain its competitive advantage in the asphalt pavement maintenance industry[27]. Market Strategy and Expansion - The company aims to enhance market penetration, especially in cities with limited use of "in-situ hot recycling" technology[33]. - The company plans to explore overseas opportunities and strategic partnerships, particularly in countries along the "Belt and Road" initiative and the four Asian Tigers[32]. - The company is focused on developing new products for the road maintenance industry and investing in testing and planning departments to create new revenue sources[33]. - The company plans to continue expanding its market presence in mainland China while exploring opportunities for new product development[159]. Operational Challenges - The company has implemented emergency measures to mitigate the impact of the recent COVID-19 outbreak in Nanjing, which has introduced more uncertainty into its operating environment[29]. - The company is committed to reducing road maintenance costs for local governments while significantly decreasing carbon emissions in the road maintenance industry[28]. Financial Position - Cash and cash equivalents, including pledged bank deposits, amounted to approximately HKD 273,500,000 as of June 30, 2021, down from HKD 293,100,000 at the end of 2020[69]. - The company’s bank borrowings stood at HKD 90,000,000 as of June 30, 2021, compared to HKD 100,000,000 at the end of 2020[71]. - The expected credit loss reversal for financial assets increased to HKD 27,800,000 from HKD 13,500,000 in the previous period, indicating improved recovery of trade receivables[55]. - The company continues to maintain a stable liquidity position and is committed to prudent financial policies to support business expansion needs[70]. Employee and Shareholder Information - The company employed 482 full-time employees as of June 30, 2021, a decrease from 499 employees as of December 31, 2020[89]. - The company has a significant shareholder, Ying Kui Technology, holding 529,688,260 shares, representing approximately 49.09% of the total issued share capital[101]. - The company has adopted a share option scheme to incentivize eligible participants, but no options were granted, exercised, or canceled during the reporting period[108]. - A share award scheme was adopted on May 7, 2014, allowing the company to grant shares to selected employees, with a total of 22,000,000 shares awarded during the period ending June 30, 2021[110]. Asset Management - The fair value of the company's investment properties is approximately HKD 1.291 billion, down from HKD 2.628 billion as of December 31, 2020[80]. - The company plans to develop part of its investment properties into a global technology R&D center, with construction expected to commence in Q4 2021 and completion anticipated by October 2023[80]. - The company's total reserves increased to HKD 671,498 thousand from HKD 667,695 thousand, a growth of 0.4%[138]. Taxation and Compliance - The income tax expense for the six months ended June 30, 2021, included current tax of HKD 632,000, down from HKD 1,051,000 in 2020, a decrease of 40.0%[196]. - The group did not have taxable profits for the six months ended June 30, 2021, which affected the implementation of the two-tiered profits tax system introduced in 2018[197]. - The applicable tax rate for high-tech companies recognized in 2020 is 15%, which applies to certain subsidiaries of the group[197].

Financial Performance - For the fiscal year ending December 31, 2020, the company reported revenue of HKD 541.91 million, an increase of 11.2% compared to HKD 487.32 million in 2019[5] - The gross profit for the same period was HKD 118.14 million, reflecting a growth of 14.3% from HKD 103.39 million in 2019[5] - The profit attributable to the company's owners surged to HKD 31.64 million, a remarkable increase of 663.2% from HKD 4.15 million in the previous year[5] - Basic earnings per share rose to HKD 2.99, marking a 666.7% increase compared to HKD 0.39 in 2019[5] - The net profit margin increased significantly to 6.1%, compared to 1.9% in 2019, representing a growth of 221.1%[6] - The total revenue for the year 2020 was HKD 484.85 million, representing a 16.7% increase from HKD 415.32 million in 2019[51] - The net profit attributable to the company's owners was HKD 31.6 million, representing an increase of approximately 663.2% compared to HKD 4.2 million in 2019[31] Cash and Financial Position - As of December 31, 2020, the company's cash and cash equivalents totaled HKD 293.10 million, up 14.5% from HKD 256.03 million in 2019[6] - The company maintained a current ratio of 1.7, indicating a 6.3% improvement from 1.6 in the previous year[6] - As of December 31, 2020, the total equity of the group was approximately HKD 807.2 million, up from HKD 729.0 million in 2019, driven by profit attributable to owners and foreign currency translation reserves[79] - The net current assets as of December 31, 2020, were approximately HKD 336.2 million, compared to HKD 258.1 million in 2019, with a current ratio of 1.7 times[79] - The group’s cash and bank deposits increased to approximately HKD 293.1 million as of December 31, 2020, from HKD 256.0 million in 2019, due to improved collection of trade receivables[83] Market and Operational Developments - The company successfully developed parts of the southern China market, contributing to a historical high in service area for its "in-situ thermal regeneration" projects in the fourth quarter of 2020[12] - The company experienced a decrease in revenue from its asphalt pavement maintenance equipment segment due to postponed capital investments by local governments and highway companies[12] - The company recorded a historical high in the service area of its geothermal regeneration projects in the second half of 2020, indicating strong operational recovery[29] - The total service area for the "in-situ thermal regeneration" project increased by 41.4% from 2.9 million square meters in 2019 to 4.1 million square meters in 2020[33] - Revenue from non-"in-situ thermal regeneration" projects increased by 12.7% due to new road maintenance technologies and increased maintenance projects in response to road inspections[33] Research and Development - The company registered a total of 189 patents as of December 31, 2020, up from 168 in 2019, including 19 invention patents[40] - Research and development costs increased by 51.2% to HKD 18,900,000 in 2020, driven by diversification in product offerings and the development of automation and intelligence features[72] - The company is developing a global technology R&D center in Nanjing, which is expected to enhance its R&D capabilities and provide long-term investment potential[47] Strategic Goals and Market Expansion - The company aims to enhance low-carbon circular processes and equipment development while focusing on data collection and analysis for road maintenance[22] - The company plans to expand its market presence in key regions such as the Yangtze River Delta and Pearl River Delta, as well as explore international markets, including Europe and the United States[23] - The company aims to increase market penetration, especially in cities with limited use of "in-situ thermal regeneration" technology[47] - The company is exploring overseas opportunities, particularly in countries along the "Belt and Road" initiative and the Four Asian Tigers[47] Governance and Management - The company has established a robust governance structure with independent non-executive directors to ensure effective oversight and strategic direction[136] - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors[154] - The company has established an internal control system to monitor and balance power within the board[147] - The company emphasizes the importance of independent judgment and leadership from independent non-executive directors in case of potential conflicts of interest[159] - The company has established a remuneration committee to provide recommendations on the remuneration policies for all directors and senior management[192] Sustainability and Compliance - The company is committed to sustainable development through the use of unique technology for repairing damaged asphalt roads[101] - The company has adopted environmental compliance policies to ensure adherence to stricter regulations imposed by the Chinese government[111] - The government has prioritized carbon peak and carbon neutrality goals, which will drive the development of related policies and implementation paths[18]