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，並明確表示概不會就本公告全部或任何部分 內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 GLORY FLAME HOLDINGS LIMITED 朝 威 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8059） 截至二零二三年六月三十日止六個月之 中期業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM乃為較於聯交所上市的其他公司帶有更高投資風險的公司提供上市的市場。 有意投資者應瞭解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投 資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 ...

First Quarterly Report 二零二三年第一季度報告 2023 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GEM ...

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，並明確表示概不會就本公告全部或任何部分 內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 GLORY FLAME HOLDINGS LIMITED 朝 威 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8059） 截至二零二三年三月三十一日止三個月 之第一季度業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM乃為可能較於聯交所上市的其他公司帶有更高投資風險的公司提供上市的市 場。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作 出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主 板買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高 ...

Financial Performance - The Group reported a revenue of approximately HK$118.5 million for FY2022, representing an increase of 19.7% compared to approximately HK$99.0 million for FY2021[16]. - Revenue from concrete demolition services increased by 23.7% from approximately HK$56.1 million in FY2021 to approximately HK$69.4 million in FY2022[17]. - Revenue from prefabricated construction rose by 15.0% from approximately HK$42.8 million in FY2021 to approximately HK$49.2 million in FY2022[17]. - The Group recorded a net loss of approximately HK$2.7 million for FY2022, a decrease of 92.7% from a net loss of approximately HK$37.2 million in FY2021[18]. - Basic loss per share for FY2022 was HK1.02 cents, compared to HK3.65 cents for FY2021[18]. - Revenue increased by approximately HK$19.5 million or 19.7% from approximately HK$99.0 million for FY2021 to approximately HK$118.5 million for the Reporting Period[42]. - Revenue from concrete demolition services was approximately HK$69.4 million, representing an increase of approximately HK$13.3 million or 23.7% compared to FY2021[45]. - Revenue from prefabricated construction was approximately HK$49.2 million, representing an increase of approximately HK$6.4 million or 15.0% compared to FY2021[48]. - Gross profit increased by approximately HK$10.8 million or 43.9% from approximately HK$24.6 million for FY2021 to approximately HK$35.4 million for the Reporting Period[50]. - Gross profit margin increased from 24.9% for FY2021 to 29.9% for the Reporting Period[51]. - Other income and other gains, net, increased by approximately HK$6.6 million from approximately HK$1.9 million for FY2021 to approximately HK$8.5 million for the Reporting Period[52]. - Impairment losses on various assets decreased by HK$17.3 million from approximately HK$21.9 million for FY2021 to approximately HK$4.6 million for the Reporting Period[53]. - Administrative and other operating expenses decreased by approximately HK$0.4 million from approximately HK$36.3 million for FY2021 to approximately HK$35.9 million for the Reporting Period[58]. - The Group's loss attributable to owners of the Company was approximately HK$10.3 million for the Reporting Period, representing a decrease of approximately HK$26.5 million compared to a loss of HK$36.8 million for FY2021[59]. Market Outlook and Expansion - The Company anticipates a gradual return to normalcy in Hong Kong's economy following the relaxation of pandemic control measures[19]. - The Hong Kong government plans to create more land and invest in infrastructure projects, which the Company believes will enhance its competitiveness in the construction demolition industry[19]. - The Group's concrete demolition services revenue increased by 23.7% in FY2022 due to the post-pandemic rebound in Hong Kong[22]. - Revenue from the prefabricated construction business recorded a growth of 15.0% for FY2022, marking two consecutive years of double-digit growth[24]. - The Group plans to expand its prefabricated construction business into overseas markets, particularly in countries along the Belt and Road[25]. - The prefabricated construction business is expected to generate enormous potential demand during the urbanization process in China[26]. - The market diversification plan for overseas expansion is currently on hold due to tight market liquidity in China and Hong Kong[25]. - The Group continues to maintain a positive long-term outlook on the prefabricated construction business despite current market challenges[26]. Corporate Governance - The Board of Directors includes Mr. Liu Yingjie as Chairman and Ms. Zhou Jin as Executive Directors, along with independent non-executive Directors Mr. Cao Hongmin, Mr. Chan Chi Pan, and Mr. Li Kar Fai, Peter[108]. - The Company complied with the GEM Listing Rules throughout the year ended December 31, 2022, specifically under Rule 5.05(1) and Rule 5.05A[108]. - The Board has established mechanisms to ensure independent views and input are available, which will be reviewed annually for effectiveness[110]. - The Company has received positive confirmations from all independent non-executive Directors regarding their independence under the GEM Listing Rules[109]. - The management is delegated authority and responsibility by the Board for the administration of the Group, ensuring effective governance[106]. - The Board is committed to upholding good corporate governance standards for the best interest of the Company's shareholders[99]. - The Company has been actively monitoring compliance with legal and regulatory requirements as part of its governance practices[107]. - The Board held 7 meetings and 1 general meeting during the reporting period, with all executive directors attending all board meetings[113]. - The Company has established an Audit Committee, which comprises three members, including Mr. Li Kar Fai Peter as Chairman, ensuring compliance with GEM Listing Rules[128]. - All Directors confirmed full compliance with the required standard of dealings regarding securities transactions throughout the reporting period[117]. - The Company has adopted a policy to reimburse Directors for training costs related to corporate governance and internal control[123]. - The Board is committed to ensuring that independent non-executive directors (INEDs) have opportunities to express their views and inputs[112]. - The Company has established three functional committees: Audit Committee, Nomination Committee, and Remuneration Committee, to assist the Board in discharging its duties[126]. - The Audit Committee must have a minimum of three members, with at least one having appropriate professional qualifications in accounting or related financial management[128]. - The Company complied with the requirement under Rule 5.28 of the GEM Listing Rules throughout the year ended December 31, 2022[129]. - The Board ensures the appointment of at least three INEDs, with at least one-third of its members being INEDs[111]. - The Group encourages Directors to attend relevant training courses to stay updated on corporate governance practices[120]. Risk Management - The Company has established a risk management policy to identify, evaluate, and manage principal risks affecting the business[188]. - Each division is responsible for identifying and managing risks, with quarterly assessments and mitigation plans in place[194]. - The Board is responsible for reviewing and approving the effectiveness of the Group's risk management and internal controls[194]. - The Company does not have an internal audit department and has engaged an external consultant for internal control reviews[190]. - The Group's risk management and internal control system is designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[195]. - The Board is responsible for maintaining adequate resources, staff qualifications, training programs, and budget for accounting and financial reporting, concluding that the risk management system is effective[195]. - Directors acknowledge their responsibility for preparing financial statements that reflect a true and fair view of the Group's affairs, in compliance with relevant accounting standards and GEM Listing Rules[197]. - There are no uncertainties that may cast significant doubt on the Company's ability to continue as a going concern, according to the Directors[198]. - The Group has adopted a policy for the disclosure of inside information to ensure compliance with confidentiality requirements and disclosure obligations[196]. Employee and Workforce - The Group employed 98 staff as of December 31, 2022, down from 124 staff in 2021, with total employee costs amounting to approximately HK$41.0 million[79]. - The Group's employee salary and benefit levels are competitive, which is crucial due to the labor shortage in the construction industry[80]. - The gender ratio in the workforce is approximately 4:1 (male to female), reflecting the construction industry's challenges in attracting female talent[168]. - The Company has achieved its gender diversity goals under the Board Diversity Policy for FY2022[171]. Financial Position - As at 31 December 2022, the Group had cash and bank deposits of approximately HK$36.3 million[60]. - As of December 31, 2022, the Group's total borrowings amounted to approximately HK$76.2 million, an increase from approximately HK$64.3 million in 2021[69]. - The annual interest rates of the borrowings during the reporting period ranged from 4.2% to 12.0% per annum, compared to 6.75% to 12.0% per annum in 2021[69]. - The Group's borrowings of HK$46.9 million are repayable within one year, classified as current liabilities, while HK$29.3 million are repayable over one year, classified as non-current liabilities[69]. - The Group reported no material contingent liabilities as of December 31, 2022, consistent with 2021[78]. - The Group does not have any material capital commitments as of December 31, 2022, similar to 2021[70]. - The Group does not recommend payment of a final dividend for the reporting period, consistent with 2021[81]. - The Group has no specific plans for material investments or capital assets as of December 31, 2022[71]. - The auditor's remuneration for the audit of financial statements for the year ended 31 December 2021 was HK$728,000[179].

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，並明確表示概不會就本公告全部或任何部分 內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 GLORY FLAME HOLDINGS LIMITED 朝 威 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8059） 截至二零二二年十二月三十一日止年度的 全年業績公告 香港聯合交易所有限公司（「聯交所」） 的特色 GEM GEM乃為較於聯交所上市的其他公司帶有更高投資風險的公司提供上市的市場。 有意投資者應瞭解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投 資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 ...

Financial Performance - Revenue for the nine months ended September 30, 2022, was approximately HK$80.8 million, representing an increase of approximately 5.8% compared to HK$76.4 million for the same period in 2021[9]. - Net profit for the period was approximately HK$0.3 million, a significant improvement of HK$6.8 million from a net loss of approximately HK$6.5 million in the corresponding period of the previous year[9]. - Basic and diluted loss per share was approximately HK0.03 cents, compared to a loss of approximately HK0.71 cents for the nine months ended September 30, 2021[9]. - Gross profit for the nine months ended September 30, 2022, was approximately HK$24.3 million, compared to HK$22.2 million for the same period in 2021, indicating a positive trend in profitability[11]. - Operating profit for the period was approximately HK$4.6 million, a turnaround from an operating loss of approximately HK$2.1 million in the previous year[11]. - Other income and net gains increased to approximately HK$8.4 million from HK$2.9 million in the corresponding period of 2021, reflecting improved operational efficiency[11]. - Total comprehensive loss for the period was approximately HK$2.1 million, a reduction from HK$6.3 million in the same period last year[11]. - The company reported a loss before income tax of approximately HK$0.2 million, a significant improvement from a loss of approximately HK$6.4 million in the previous year[11]. - The Group's accumulated losses increased to HK$285.0 million as of September 30, 2022, from HK$254.9 million as of September 30, 2021[22]. - The company reported a loss attributable to owners of HK$348,000 for the nine months ended 30 September 2022, compared to a loss of HK$7,151,000 for the same period in 2021[48]. - Net loss attributable to the owners of the Company decreased by approximately HK$6.8 million from approximately HK$7.2 million for PE2021 to approximately HK$0.4 million for the Reporting Period[78]. Dividends and Shareholder Information - The Board does not recommend the payment of dividends for the nine months ended September 30, 2022, consistent with the previous year[9]. - No dividend has been recommended for the nine months ended September 30, 2022, consistent with the previous year[45]. - The company does not recommend payment of an interim dividend for the Reporting Period, consistent with the previous year where no dividend was paid[97]. - As of September 30, 2022, Zhou Jin held 284,500,000 shares, representing approximately 28.15% of the total shareholding[82]. - Huang Cheng held 188,620,000 shares, representing approximately 18.66% of the total shareholding, while Zhu Zhou held 129,000,000 shares, representing approximately 12.76%[86]. Current Liabilities and Financial Position - As of September 30, 2022, the Group reported net current liabilities of HK$11.9 million, a decrease from net current assets of HK$4.6 million as of December 31, 2021[22]. - The Group held total cash and cash equivalents of HK$36.6 million as of September 30, 2022[23]. - Bond payables amounting to HK$5.0 million and HK$0.8 million are due in July 2023 and August 2023, respectively[23]. - Other loans amounting to HK$40.0 million are maturing in November 2022, with plans for renewal discussions with the lender[27]. - The Group continues to evaluate various funding options to meet its debts as they fall due, including raising capital and asset sales[25]. Business Operations and Revenue Sources - The Group's principal business includes providing concrete demolition services and manufacturing prefabricated construction components[17]. - Revenue from concrete demolition services was HK$51.9 million, up 18.8% from HK$43.6 million in 2021[37]. - Revenue from prefabricated construction decreased by HK$3.9 million from HK$32.8 million for the nine months ended September 30, 2021, to HK$28.9 million for the Reporting Period[69]. - Revenue from private sector projects was HK$37.1 million, an increase from HK$35.7 million in the previous year, while revenue from public sector projects rose significantly to HK$14.8 million from HK$8.0 million[58]. - Revenue from concrete demolition services increased by HK$8.3 million from HK$43.6 million in the previous year to HK$51.9 million in the Reporting Period, driven by the recovery in construction demand[73]. Cost Management and Operational Efficiency - The Group has implemented continuous cost control measures to achieve positive cash flow operations[27]. - Administrative and other operating expenses increased by approximately HK$1.1 million from approximately HK$27.1 million for PE2021 to approximately HK$28.2 million for the Reporting Period, primarily due to an increase in legal and professional fees[72]. - The Group reported an impairment loss on trade receivables of HK$797,000, compared to HK$289,000 in 2021[39]. - Depreciation of property, plant, and equipment was HK$3.3 million, compared to HK$3.2 million in the previous year[39]. Corporate Governance and Compliance - The Company has complied with the applicable code provisions of the Corporate Governance Code throughout the Reporting Period, with some deviations noted[90]. - The Audit Committee, established on August 2, 2014, consists of three members and is responsible for reviewing the Group's financial reporting process and internal control system[104]. - All directors confirmed compliance with the required standards of dealings set out in the Code of Conduct during the Reporting Period[96]. - The company has maintained adherence to the Corporate Governance Code throughout the Reporting Period, with reasonable explanations for any deviations[93]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the Reporting Period[92]. Future Outlook and Challenges - The company anticipates ongoing business disruptions due to the Covid-19 pandemic, including border closures and supply chain restrictions[63]. - The company established production facilities in Huizhou, PRC, for the manufacturing and R&D of precast concrete components, targeting the Greater Bay area of China[61]. - The company aims to expand its prefabricated construction business into overseas markets, particularly in countries along the Belt and Road initiative, although progress may be delayed due to the pandemic[61]. - The company remains optimistic about its business prospects, adhering to its core philosophy of "Building a Green World" despite the challenges posed by the pandemic[63].

Financial Performance - Revenue for the six months ended June 30, 2022, was approximately HK$46.8 million, a decrease of about 10.0% compared to HK$52.0 million for the same period in 2021[11]. - Net loss for the period was approximately HK$4.2 million, a reduction of HK$0.5 million from a net loss of approximately HK$4.7 million in the corresponding period of the previous year[11]. - Basic and diluted loss per share was approximately HK0.39 cents, improved from HK0.54 cents for the six months ended June 30, 2021[11]. - Gross profit for the six months ended June 30, 2022, was approximately HK$13.2 million, down from HK$15.4 million in the same period of 2021[14]. - Operating loss for the six months was approximately HK$1.57 million, compared to an operating loss of HK$1.80 million for the same period last year[14]. - Profit before income tax for the period was a loss of approximately HK$4.65 million, slightly improved from a loss of HK$4.70 million in the previous year[14]. - The total comprehensive profit for the period was HK$208,000, a decrease from HK$1,111,000 in the previous year, indicating a decline of 81.3%[17]. - The Company reported a total comprehensive loss attributable to owners of the Company of HK$624,000 for the three months ended June 30, 2022, compared to a profit of HK$756,000 in the same period of 2021[17]. - Revenue for the six months ended June 30, 2022, was HK$46,815,000, a decrease of 10.4% from HK$52,031,000 in the same period of 2021[46]. - Revenue from concrete demolition services increased to HK$34,158,000, up 17.5% from HK$29,052,000 in 2021[46]. - Revenue from prefabricated construction components decreased to HK$12,657,000, down 44.8% from HK$22,979,000 in 2021[46]. Dividends and Shareholder Returns - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[11]. - No dividend was recommended for the six months ended June 30, 2022, consistent with the same period in 2021 where no dividend was declared[68]. - The Board does not recommend payment of an interim dividend to shareholders for the six months ended June 30, 2022 (2021: nil)[154]. Assets and Liabilities - Current assets increased to HK$95,889,000 as of June 30, 2022, up from HK$90,813,000 at the end of 2021, reflecting a growth of 5.8%[19]. - Current liabilities rose to HK$113,483,000, compared to HK$86,220,000 at the end of 2021, marking an increase of 31.6%[19]. - The net current liabilities as of June 30, 2022, were HK$17,594,000, a significant decline from net current assets of HK$4,593,000 at the end of 2021[19]. - The total equity attributable to owners of the Company decreased to HK$4,244,000 from HK$9,194,000 at the end of 2021, a drop of 53.8%[19]. - The borrowings increased to HK$67,250,000 as of June 30, 2022, from HK$45,800,000 at the end of 2021, representing a rise of 46.8%[19]. - The Group reported net current liabilities of HK$17.6 million as of June 30, 2022, compared to net current assets of HK$4.6 million as of December 31, 2021[31]. - Total borrowings as of June 30, 2022, amounted to HK$67,250,000, an increase from HK$64,250,000 as of December 31, 2021, reflecting a rise of 4.6%[86]. - The annual interest rate on borrowings ranges from 6.75% to 12.0%[131]. Cash Flow - For the six months ended June 30, 2022, the net cash outflow from operating activities was HK$898,000, a significant decrease from the net inflow of HK$8,230,000 in the same period of 2021[24]. - The cash used in operations was HK$3,598,000 for the first half of 2022, compared to cash generated from operations of HK$6,549,000 in the same period of 2021[24]. - The net cash outflow from investing activities was HK$954,000 for the six months ended June 30, 2022, compared to HK$319,000 in the same period of 2021[24]. - The Group's total cash and cash equivalents decreased to HK$34.1 million as of June 30, 2022, down from HK$42.2 million at the end of June 2021[24]. - The Group's cash and cash equivalents at the beginning of the year were HK$37.1 million, decreasing to HK$34.1 million by June 30, 2022[24]. Operational Highlights - The Group operates solely in the construction business, focusing on concrete demolition services and prefabricated construction[47]. - The Group established production facilities in Huizhou, PRC, focusing on precast concrete components and glass fiber reinforced cement components, aiming to service the Greater Bay area of China[102]. - The Company anticipates ongoing disruptions due to the Covid-19 pandemic, affecting business operations and supply chains throughout 2022[103]. - The Group is seeking opportunities to expand into overseas markets, particularly along the Belt and Road countries[104]. Employee and Cost Management - Staff costs, including directors' remuneration, increased to HK$16,303,000 for the six months ended June 30, 2022, compared to HK$16,070,000 in 2021, reflecting a rise of 1.4%[63]. - The total staff costs for the Reporting Period amounted to approximately HK$16.3 million[127]. - The group had 110 employees as of June 30, 2022[132]. - The Group has implemented measures to tighten cost control over general expenses to achieve positive cash flow operations[34]. Trade Receivables and Payables - Trade receivables increased to HK$55,210,000 as of June 30, 2022, up from HK$46,088,000 at the end of 2021, representing a growth of 19.1%[76]. - The net trade receivables after impairment allowances were HK$52,670,000, compared to HK$44,086,000 in 2021, indicating a 19.5% increase[76]. - The average credit period granted to customers is 45 days, with trade receivables past due showing a significant increase in the 0-30 days category to HK$27,033,000 from HK$8,120,000 in 2021[79]. - As of June 30, 2022, trade payables increased to HK$20,841,000 from HK$12,654,000 as of December 31, 2021, representing a growth of 64.5%[83]. Impairment and Reversals - The impairment loss on trade receivables increased to HK$566,000 in 2022 from HK$284,000 in 2021, indicating a rise of 99%[63]. - The Group recorded a reversal of impairment loss on other receivables amounting to HK$1,671,000 in 2022, compared to no such reversal in 2021[63]. Governance and Compliance - The company complied with the applicable code provisions of the Corporate Governance Code during the reporting period, with some exceptions noted[147]. - The Audit Committee has reviewed the unaudited consolidated financial statements of the Group for the Reporting Period[162].

Financial Performance - Revenue for the three months ended March 31, 2022, was approximately HK$16.4 million, a decrease of approximately 17.6% compared to HK$19.9 million in the same period of 2021[9]. - Net loss for the period was approximately HK$5.4 million, a slight improvement from a net loss of approximately HK$5.5 million in the corresponding period of last year[9]. - Basic and diluted loss per share was approximately HK0.49 cents, compared to HK0.56 cents in the same period of 2021[9]. - Gross profit for the period was approximately HK$3.9 million, down from HK$4.5 million in the same period of 2021[11]. - Operating loss for the period was approximately HK$3.9 million, compared to an operating loss of approximately HK$4.1 million in the previous year[11]. - Total comprehensive loss for the period was approximately HK$5.3 million, compared to HK$5.7 million in the same period of 2021[11]. - Other income and net gains for the period amounted to approximately HK$0.8 million, an increase from HK$0.4 million in the previous year[11]. - Administrative and other operating expenses were approximately HK$8.6 million, slightly reduced from HK$8.9 million in the same period of 2021[11]. - Finance costs for the period were approximately HK$1.5 million, compared to HK$1.4 million in the same period of 2021[11]. - Total comprehensive loss for the period was HK$5,266,000, compared to a loss of HK$5,663,000 for the same period in 2021[28]. - For the three months ended 31 March 2022, the Group reported a loss attributable to owners of the Company of HK$4,963,000, compared to a loss of HK$5,698,000 for the same period in 2021, representing a decrease of approximately 12.9%[44]. Revenue Breakdown - Revenue for the three months ended 31 March 2022 was HK$16,425,000, a decrease of 17.5% compared to HK$19,905,000 for the same period in 2021[29]. - Revenue from concrete demolition services increased to HK$14,426,000, up 33.5% from HK$10,791,000 in the previous year[29]. - Revenue from manufacturing and trading of prefabricated construction components decreased significantly to HK$1,999,000, down 78.0% from HK$9,114,000 in the same period last year[29]. - Revenue from private sector projects increased to HK$13,037,000 in Q1 2022, up from HK$10,620,000 in Q1 2021, reflecting a growth of approximately 22.8%[53]. - Revenue from public sector projects rose significantly to HK$1,389,000 in Q1 2022, compared to HK$171,000 in Q1 2021, marking an increase of approximately 711.7%[53]. Business Operations - The company continues to engage in concrete demolition services and manufacturing of prefabricated construction components, indicating a focus on core business areas[17]. - The Group's concrete demolition services are primarily provided to main contractors and subcontractors involved in both public and private sector projects in Hong Kong[51]. - The Group established production facilities in Huizhou, PRC, for the research and development of precast concrete components, aiming to service construction projects in the Greater Bay area[56]. - The Group is exploring opportunities to expand its prefabricated construction business into overseas markets, particularly in countries along the Belt and Road initiative[56]. - The Group is expanding its prefabricated construction business in the Greater Bay Area and exploring opportunities in overseas markets, particularly along the Belt and Road Initiative[58]. Corporate Governance - The financial statements for the three months ended 31 March 2022 have not been audited but were reviewed by the company's audit committee[22]. - The company was incorporated in the Cayman Islands and has been listed on the GEM of The Stock Exchange of Hong Kong since 15 August 2014[16]. - The Audit Committee has reviewed the unaudited consolidated financial statements for the reporting period[99][102]. - The company has established an Audit Committee to oversee financial reporting and internal controls[99][101]. - All Directors confirmed no competing interests during the reporting period[89][93]. Shareholder Information - As of March 31, 2022, Huang Cheng holds 188,620,000 shares, representing approximately 18.66% of the company's shares[87]. - Zhu Zhou holds 129,000,000 shares, accounting for approximately 12.76% of the company's shares[87]. - No substantial shareholders other than certain Directors or chief executives had interests or short positions in the shares as of March 31, 2022[85][86]. Dividend Policy - The Board does not recommend the payment of a dividend for the three months ended March 31, 2022, consistent with the previous year[9]. - The Company does not recommend the payment of a dividend for the three months ended March 31, 2022, consistent with the previous year[39]. - The Board does not recommend payment of a dividend for the three months ended March 31, 2022, compared to nil in 2021[91]. Future Outlook - The Group anticipates continued business disruptions due to the Covid-19 pandemic, impacting supply chains and project timelines throughout 2022[57]. - The Group is optimistic about future business prospects despite ongoing challenges from the COVID-19 pandemic[59]. - The Group aims to adhere to its core philosophy of "Building a Green World" while enhancing stakeholder value through quality, innovation, and efficiency[59]. - The Group's core philosophy focuses on "Building a Green World," emphasizing quality, innovation, and effectiveness in its business expansion strategies[57]. Miscellaneous - No share options were granted, exercised, lapsed, or cancelled during the reporting period[92][97]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[90][94]. - The Share Option Scheme, adopted on August 2, 2014, is valid for 10 years[92].

Financial Performance - The Group reported a revenue of approximately HK$99.0 million for FY2021, representing a 22.4% increase compared to HK$80.9 million for FY2020[17]. - Revenue from concrete demolition services decreased by 3.1% from approximately HK$57.9 million in FY2020 to approximately HK$56.1 million in FY2021[18]. - Revenue from prefabricated construction services increased by 86.9% from approximately HK$22.9 million in FY2020 to approximately HK$42.8 million in FY2021[18]. - The Group recorded a net loss of approximately HK$37.2 million for FY2021, a 129.6% increase from a net loss of approximately HK$16.2 million in FY2020[19]. - Basic loss per share for FY2021 was HK3.65 cents, compared to HK1.51 cents for FY2020[19]. - Revenue from private sector projects decreased to HK$46,256,000 in 2021 from HK$49,442,000 in 2020, while revenue from public sector projects increased to HK$9,885,000 from HK$8,505,000[39]. - Gross profit increased by approximately HK$1.3 million or 5.6% from approximately HK$23.3 million for FY2020 to approximately HK$24.6 million for the Reporting Period[53]. - Gross profit margin decreased from 28.9% for FY2020 to 24.9% for the Reporting Period[54]. - Loss attributable to owners of the Company was approximately HK$36.8 million for the Reporting Period, representing an increase of approximately HK$21.5 million compared to a loss of HK$15.3 million for FY2020[61]. Impact of COVID-19 - The Company anticipates challenges from the ongoing Covid-19 pandemic, particularly with the emergence of the Omicron variant and potential future mutations[20]. - The concrete demolition services business in Hong Kong remained relatively stable despite the pandemic's impact[20]. - The Group has adapted to supply chain disruptions and manpower resource challenges due to the pandemic[20]. - The Group's performance reflects the ongoing volatility and uncertainty in the market due to the pandemic[20]. - The prolonged COVID-19 pandemic has raised concerns about investment in overseas markets, particularly in countries with low vaccination rates[26]. - The Group intends to postpone its expansion plans due to difficulties in sourcing funds amid tight liquidity for many corporations[26]. - The Company is focused on recovery as the Hong Kong economy shows signs of improvement post-pandemic[20]. Business Expansion and Strategy - The Group plans to expand its prefabricated construction business into overseas markets, particularly along the Belt and Road, in partnership with a reputable construction company[26]. - The Group's prefabricated construction aims to contribute to green building practices by reducing construction waste and improving energy efficiency[40]. - The Group established production facilities in Huizhou, China, for the research and development of precast concrete components[41]. - The expectation of a downward trend in the Chinese property market has been formed due to economic pressures and a debt crisis among property developers[25]. Financial Management and Position - As at 31 December 2021, the Group had cash and bank deposits of approximately HK$37.1 million[62]. - The gearing ratio of the Group as at 31 December 2021 was approximately 18.9[62]. - Administrative and other operating expenses decreased by approximately HK$2.6 million from approximately HK$38.9 million for FY2020 to approximately HK$36.3 million for the Reporting Period[60]. - As of December 31, 2021, the total borrowings of the Group amounted to approximately HK$64.3 million, with an annual interest rate ranging from 6.75% to 12.0%[70][74]. - HK$45.8 million of the borrowings are repayable within one year, classified as current liabilities, while HK$18.5 million are repayable over one year, classified as non-current liabilities[70][74]. - The total employee costs for the Reporting Period, including directors' emoluments, amounted to approximately HK$41.2 million, an increase from approximately HK$37.0 million in 2020[78][84]. - The Group employed 124 staff as of December 31, 2021, compared to 116 staff in 2020, indicating a growth in workforce[78][84]. - The Group does not have any material capital commitments or contingent liabilities as of December 31, 2021[76][83]. - The Group has implemented prudent financial management policies to maintain a healthy liquidity position throughout the Reporting Period[71]. - The Group's borrowings are all unsecured and denominated in Hong Kong dollars, mitigating certain financial risks[70][74]. Corporate Governance - The Board does not recommend payment of a final dividend to shareholders for the Reporting Period, consistent with the previous year[80][85]. - The Board is committed to upholding good corporate governance standards for the best interest of the Company's shareholders[101]. - The Company complied with the GEM Listing Rules throughout the year ended December 31, 2021[109]. - The Board held 7 meetings and 1 general meeting during the Reporting Period[114]. - The Company received positive confirmations of independence from all independent non-executive Directors[112]. - The Company does not have insurance cover for legal actions against Directors, believing the risk is relatively low[103]. - The Board has delegated various responsibilities to board committees for effective governance[108]. - The Company has developed policies and practices on corporate governance and compliance with legal requirements[111]. - The Audit Committee consists of three members, including Mr. Li Kar Fai Peter as Chairman, ensuring compliance with GEM Listing Rules[126]. - The Audit Committee is responsible for monitoring the integrity of the Company's financial statements and reviewing significant financial reporting judgments[132]. - The Company has adopted a continuing professional development program for directors to enhance corporate governance knowledge[119]. - The Company encourages directors to attend at least one training course on GEM Listing Rules updates related to corporate governance practices[120]. - The Company has established a policy to reimburse directors for training costs related to corporate governance and internal control[120]. Risk Management - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss, rather than absolute assurance[185]. - Each division is responsible for identifying and managing principal risks, including ESG risks, on a quarterly basis[184]. - The Board oversees the risk management framework and is responsible for reviewing its effectiveness and adequacy[185]. - An independent internal control consultant was engaged to review the internal control system, with no significant areas of concern identified[181]. - The Group has established a risk management policy to identify, evaluate, and manage principal risks affecting the business[179]. - The Company does not have an internal audit department, relying instead on external consultants for internal control reviews[181]. - The Board has concluded that the Group's risk management and internal control system is effective and in place[189]. Shareholder Communication - The annual general meeting (AGM) is scheduled for 8 June 2022, providing a platform for communication between the Board and Shareholders[197]. - The external auditor is invited to the AGM to address queries regarding audit procedures and the auditors' report[196].

Stock Code 股份代號：8059 （於開曼群島註冊成立的有限公司） (Incorporated in the Cayman Islands with limited liability) 2021 Third Quarterly Report C 二零二一年第三季度報告 （於開曼群島註冊成立的有限公司） (Incorporated in the Cayman Islands with limited liability) M Y CM MY CY CMY K ai163635555629_Glory Flame 3Q2021 cover output.pdf 1 8/11/2021 下午3:12 CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be at ...