Summary of Key Points Core Viewpoint - A total of 36 companies conducted share buybacks on June 2, 2025, with Tencent Holdings (00700) leading in both the number of shares repurchased and the total amount spent on buybacks. Group 1: Buyback Details - Tencent Holdings (00700) repurchased 1.013 million shares for a total of 501 million CNY, with a year-to-date cumulative buyback of 10.797 million shares, representing 0.118% of its total share capital [1][2] - AIA Group (01299) repurchased 5.448 million shares for 354 million CNY, with a cumulative buyback of 29.266 million shares, accounting for 0.274% of its total share capital [2] - Kuaishou-W (01024) repurchased 6 million shares for 312 million CNY, with a cumulative buyback of 12.3 million shares, representing 2.826% of its total share capital [2] Group 2: Other Notable Buybacks - Times Electric (03898) repurchased 320,700 shares for 10.528 million CNY, with a cumulative buyback of 53.301 million shares, accounting for 9.823% of its total share capital [2] - Stone Four Pharmaceutical Group (02005) repurchased 7.55 million shares for approximately 20.984 million CNY, with a cumulative buyback of 7.55 million shares, representing 0.263% of its total share capital [2] - Modern Dental Group (03600) repurchased 100,000 shares for 4.181 million CNY, with a cumulative buyback of 200,000 shares, accounting for 0.021% of its total share capital [3] Group 3: Additional Companies - China Eastern Airlines (00670) repurchased 2 million shares for 596,650 CNY, with a cumulative buyback of 66.088 million shares, representing 1.277% of its total share capital [2] - Mengniu Dairy (02319) repurchased 300,000 shares for 5.225 million CNY, with a cumulative buyback of 24.596 million shares, accounting for 0.625% of its total share capital [2] - Huazheng Medical (01931) repurchased 20,000 shares for 4.260 million CNY, with a cumulative buyback of 1.824 million shares, representing 0.135% of its total share capital [3]

Group 1 - As of May 26, a total of 88 stocks reached their 52-week highs, with Tianbao Energy (01671), China Nuclear International (02302), and Honghui Group (00183) leading the high rate at 141.60%, 93.92%, and 21.34% respectively [1] - Tianbao Energy closed at 0.700 and reached a peak of 1.510, marking a significant increase of 141.60% [1] - China Nuclear International closed at 4.090 with a highest price of 5.100, reflecting a rise of 93.92% [1] Group 2 - Other notable stocks that reached their 52-week highs include Century International (00959) with an increase of 18.64%, and Junjie Group Holdings (08188) with a rise of 17.95% [1] - The list also includes Haotian Financial Group (01260) with a 13.70% increase and Dechang Electric Holdings (00179) with a 10.96% rise [1] - The overall trend indicates a strong performance in the market, with multiple stocks achieving significant gains [1] Group 3 - The report also highlights stocks that reached their 52-week lows, with Sipai Health (00314) showing the largest decline at -11.65% [3] - Other stocks experiencing declines include Feitian Yundong (06610) at -9.05% and Hengrui Medicine (01276) at -4.81% [3] - The presence of stocks reaching both highs and lows suggests a volatile market environment [3]

Summary of Key Points Core Viewpoint - On May 19, 38 Hong Kong-listed companies conducted share buybacks, totaling 38.39 million shares and an aggregate amount of HKD 831 million [1][2]. Group 1: Buyback Details - Tencent Holdings repurchased 979,000 shares for HKD 500 million, with a highest price of HKD 516.50 and a lowest price of HKD 503.00, bringing its total buyback amount for the year to HKD 21.53 billion [1][2]. - AIA Group repurchased 2.34 million shares for HKD 154 million, with a highest price of HKD 66.40 and a lowest price of HKD 64.75, totaling HKD 8.93 billion in buybacks for the year [1][2]. - China COSCO Shipping repurchased 5.56 million shares for HKD 79.36 million, with a highest price of HKD 14.40 and a lowest price of HKD 14.12, accumulating HKD 3.83 billion in buybacks for the year [1][2]. Group 2: Buyback Rankings - The highest buyback amount on May 19 was from Tencent Holdings at HKD 500 million, followed by AIA Group at HKD 154 million [1][2]. - In terms of share quantity, the largest buyback was conducted by Jieli Trading at 9.18 million shares, followed by China COSCO Shipping at 5.56 million shares and NetEase Technology at 4.67 million shares [1][2]. Group 3: Additional Buyback Information - Country Garden Services conducted its first buyback of the year, while Tencent Holdings has made multiple buybacks totaling HKD 21.53 billion [2][3]. - A detailed table of buybacks on May 19 includes various companies, their respective buyback shares, amounts, highest and lowest prices, and cumulative buyback amounts for the year [2][3].

Financial Performance - The group's revenue increased from approximately HKD 549,554,000 for the year ended December 31, 2023, to approximately HKD 815,181,000 for the year ended December 31, 2024, representing an increase of about HKD 265,627,000 or 48.3%[13]. - The gross profit and gross profit margin for the year ended December 31, 2024, were approximately HKD 158,150,000 and 19.4%, respectively, compared to approximately HKD 110,022,000 and 20.0% for the year ended December 31, 2023[13]. - The net profit attributable to the company's owners for the year ended December 31, 2024, was approximately HKD 86,171,000, up from approximately HKD 61,479,000 for the year ended December 31, 2023[13]. - Other income for the year ending December 31, 2024, was approximately HKD 1,642,000, an increase of 25.3% from HKD 1,310,000 in 2023, primarily due to government grants from the Construction Industry Innovation and Technology Fund[36]. - The total employee cost, including service costs and administrative expenses, was approximately HKD 306,462,000 for the year ending December 31, 2024, up from approximately HKD 201,096,000 in 2023, reflecting an increase in employee costs during the reporting period[59]. Contract and Project Participation - The group achieved a total contract value and confirmed change orders of approximately HKD 665,707,000 for 19 public sector projects and about HKD 497,000 for two private sector projects during the fiscal year ending December 31, 2024[12]. - The group participated in 51 public sector projects (up from 39 in 2023) and five private sector projects (down from six in 2023), including newly awarded contracts[12]. - The total uncompleted cumulative amount of new contracts confirmed as revenue post-reporting period and carried over from 2024 is approximately HKD 890,067,000[12]. - The group has secured a total contract amount of approximately HKD 665,707,000 for 19 public sector projects and approximately HKD 497,000 for two private sector projects for the year ended December 31, 2024[24]. - Revenue from public sector tunnel construction services rose from approximately HKD 325,178,000 in 2023 to approximately HKD 545,082,000 in 2024, an increase of about HKD 219,904,000 or 67.6%[30]. Shareholder Information and Dividends - The proposed final dividend date is set for June 18, 2025, pending shareholder approval at the annual general meeting[8]. - The group plans to pay a final dividend of HKD 0.04 per share, based on a basic earnings per share of approximately HKD 0.1773, subject to shareholder approval[14]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.04 per share, down from HKD 0.05 per share in 2023, based on basic earnings per share of approximately HKD 0.1773[45]. - The interim dividend of HKD 0.04 per share was paid on October 31, 2024, resulting in a total dividend of HKD 0.08 per share for the year[144]. Corporate Governance - The company has been adhering to the corporate governance code since its listing date[79]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independent elements in decision-making[91]. - The audit committee held four meetings during the reporting period to review financial statements and monitor internal controls and risk management[100]. - The company has established three committees: audit, remuneration, and nomination, to oversee specific aspects of the group's affairs[95]. - The board has reviewed the effectiveness of the corporate governance policy and will continue to conduct annual reviews[96]. Quality Management and Operations - The group has established a formal quality management system certified to ISO 9001:2015 standards to maintain high service quality for all clients[12]. - The group has a robust internal quality assurance policy that outlines specific procedures and responsibilities for various types of work[12]. - The group primarily provides underground construction services, focusing on tunnel construction and public utility construction, including road and drainage works[10]. - The group aims to focus on expanding its tunnel construction services, which are expected to be a primary growth driver and a sustainable source of revenue[16]. Employee and Workforce Information - Employee costs rose from approximately HKD 188,197,000 in 2023 to approximately HKD 286,864,000 in 2024, an increase of about HKD 98,667,000 or 52.4%[33]. - The group had 588 employees in Hong Kong as of December 31, 2024, down from 662 in 2023, with an increase in the number of skilled workers due to project needs[59]. - The company has established a mandatory provident fund scheme for employees in Hong Kong, with both employees and employers contributing 5% of total income, capped at HKD 1,500 per month[165]. Risk Management and Compliance - The board is responsible for maintaining a sound and effective risk management and internal control system to protect shareholders' interests[136]. - The company has implemented a whistleblowing policy allowing stakeholders to report concerns anonymously to the audit committee[138]. - The company has adopted its own disclosure policy to ensure compliance with GEM listing rules and securities regulations[137]. - The board has reviewed the effectiveness of the risk management and internal control systems during the reporting period and found them to be adequate and effective[137]. Share Repurchase and Incentive Plans - The company repurchased a total of 6,464,000 shares during the reporting period, with a total expenditure of approximately HKD 2,135,420[152]. - The share option plan was approved on May 24, 2024, allowing for the issuance of up to 48,780,800 shares, which is 10% of the total shares issued as of the approval date[181]. - A total of 4,600,000 shares were granted as incentive shares to nine selected employees, with a vesting period of 12 months, set to vest on June 14, 2025[189]. - As of December 31, 2024, the net expense recognized for the share incentive plan amounted to HKD 597,000, compared to zero in 2023[190]. Market Outlook and Future Plans - The group anticipates continued demand for tunnel construction services due to ongoing infrastructure projects in the Northern Metropolis and other major initiatives by the Hong Kong government[15]. - The Hong Kong government is expected to increase its basic engineering expenditure from an average of approximately HKD 90 billion to about HKD 120 billion annually in the coming years[28]. - MTR Corporation plans to invest approximately HKD 100 billion to expand its railway network and develop new communities, which is expected to create more job opportunities during the construction phase[29].

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 815,181,000, representing a 48.5% increase from HKD 549,554,000 in the previous year[3] - Gross profit for the same period was HKD 158,150,000, up 43.8% from HKD 110,022,000[3] - The net profit for the year was HKD 85,787,000, an increase of 39.5% compared to HKD 61,475,000 in the prior year[3] - Basic earnings per share rose to HKD 17.73 from HKD 12.60, reflecting a 40.5% increase[3] - Total revenue for the year 2024 reached HKD 815,181,000, a 48.5% increase from HKD 549,554,000 in 2023[22] - Revenue from public tunnel projects was HKD 545,082,000, up 67.5% from HKD 325,178,000 in the previous year[22] - Other income rose to HKD 1,642,000 in 2024, an increase of 25.3% from HKD 1,310,000 in 2023[25] - The net profit attributable to the owners of the company for the year ending December 31, 2024, was approximately HKD 86,171,000, up from HKD 61,479,000 in the previous year[60] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 275,746,000, compared to HKD 253,361,000 in the previous year[4] - The company's net asset value increased to HKD 171,508,000 from HKD 131,071,000, marking a 30.8% growth[5] - The company reported a decrease in trade and other receivables to HKD 127,382,000 from HKD 146,661,000[4] - The company has made investments in non-current assets, increasing from HKD 19,736,000 to HKD 43,811,000[4] - Trade receivables decreased to HKD 117,182,000 in 2024 from HKD 138,897,000 in 2023, a decline of 15.6%[24] - Contract assets increased to HKD 115,954,000 in 2024, compared to HKD 98,833,000 in 2023, reflecting a growth of 17.3%[24] - The company’s total liabilities for trade and other payables increased to HKD 55,182,000 in 2024 from HKD 53,141,000 in 2023[33] Costs and Expenses - Profit before tax for 2024 was significantly impacted by increased costs, with construction materials and subcontracting costs rising to HKD 210,738,000 and HKD 82,658,000 respectively[26] - The company reported a tax expense of HKD 18,547,000 for 2024, compared to HKD 9,388,000 in 2023, reflecting an increase of 97%[26] - The company's service costs increased to approximately HKD 657,031,000, up by HKD 217,499,000 or 49.5% from HKD 439,532,000 in the previous year[49] - Administrative expenses rose to approximately HKD 40,961,000, an increase of HKD 12,948,000 or 46.2% from HKD 28,013,000 in the previous year[56] - Total employee costs, including service costs and administrative expenses, were approximately HKD 306,462,000 for the year ended December 31, 2024, compared to approximately HKD 201,096,000 in 2023, indicating a significant increase in labor expenses[75] Shareholder Information - The company declared an interim dividend of HKD 0.04 per share for 2024, totaling approximately HKD 19,421,000, compared to no dividend in 2023[28] - The company proposed a final dividend of HKD 0.04 per share, down from HKD 0.05 per share in the previous year, resulting in a total dividend of HKD 0.08 per share for the year[61] - The company repurchased 6,464,000 shares during the year, with a total cost of approximately HKD 2,135,420[35] - The share repurchase aims to enhance the net asset value per share for shareholders[83] Strategic Plans and Market Outlook - The company plans to continue expanding its underground construction and engineering services, focusing on market growth and new technology development[9] - The group is focusing on diversifying its operations beyond tunnel construction, exploring opportunities in earthworks and bridge engineering[38] - The Hong Kong government is expected to increase its basic engineering expenditure from an average of HKD 90 billion per year to approximately HKD 120 billion, which will benefit the construction sector[43] - MTR Corporation plans to invest about HKD 100 billion to expand its railway network, which is anticipated to create more job opportunities during the construction phase[44] Corporate Governance and Compliance - The audit committee has reviewed the annual results for the year ended December 31, 2024[86] - The annual report will be published on or before April 30, 2025, in compliance with GEM listing rules[93] - The announcement will be published on the Hong Kong Stock Exchange website and the company's website for at least seven days from the date of publication[95]

Financial Performance - The group's revenue increased from approximately HKD 230,283,000 for the six months ended June 30, 2023, to approximately HKD 492,499,000 for the six months ended June 30, 2024, representing an increase of approximately HKD 262,216,000 or 113.9%[4] - Gross profit for the six months ended June 30, 2024, was approximately HKD 98,076,000, with a gross margin of 19.9%, compared to a gross profit of approximately HKD 18,269,000 and a gross margin of 7.9% for the same period in 2023[4] - The net profit attributable to owners of the company for the six months ended June 30, 2024, was approximately HKD 55,789,000, a significant increase of approximately HKD 51,613,000 compared to HKD 4,176,000 for the same period in 2023[5] - The company reported a profit before tax of approximately HKD 67,318,000 for the six months ended June 30, 2024, compared to HKD 3,727,000 for the same period in 2023[5] - Basic and diluted earnings per share for the six months ended June 30, 2024, were 11.44 HK cents, compared to 0.86 HK cents for the same period in 2023[5] Revenue Drivers - The increase in revenue was primarily driven by the growth in public sector projects, particularly tunnel construction services[4] - Revenue from public sector projects in tunnel construction rose from approximately HKD 74,547,000 to approximately HKD 367,626,000, an increase of approximately HKD 293,079,000 or 393.1%[47] Expenses and Costs - Administrative expenses increased to approximately HKD 18,218,000 for the six months ended June 30, 2024, from HKD 12,993,000 in the same period in 2023[5] - The total cost of subcontracting and construction materials was 59,941 thousand HKD for the current period, compared to 132,464 thousand HKD in the previous year[18] - Service costs increased from approximately HKD 212,014,000 to approximately HKD 394,423,000, an increase of approximately HKD 182,409,000 or 86.0%[48] Cash Flow and Assets - The company's net cash from operating activities for the six months ended June 30, 2024, was HKD 74,300,000, a significant improvement compared to a cash outflow of HKD 22,446,000 in the same period of 2023[10] - As of June 30, 2024, total assets amounted to HKD 166,879,000, an increase from HKD 135,357,000 as of December 31, 2023, representing a growth of approximately 23.2%[7] - Cash and cash equivalents at the end of the period rose to HKD 14,437,000 from HKD 9,169,000 at the end of 2023, marking an increase of approximately 57.5%[11] Shareholder Information - The board has declared an interim dividend of HKD 0.04 per share for the year ending December 31, 2024, compared to no interim dividend for the year ending December 31, 2023[20] - The total number of shares held by the major shareholders and other individuals is disclosed in accordance with the Securities and Futures Ordinance[69] Corporate Governance - The audit committee, composed of three independent non-executive directors, reviewed the interim report for the six months ending June 30, 2024, confirming compliance with applicable accounting standards[76] - The company maintains high standards of corporate governance in accordance with the GEM Listing Rules, ensuring proper regulation of business activities and decision-making processes[75] Future Outlook - The outlook for the Hong Kong tunnel and underground construction services is positive due to ongoing infrastructure projects, including the Northern Metropolis development and several new MTR station projects[45] - The group is focusing on developing its tunnel construction services, which are expected to be a major growth driver and sustainable revenue source[46]

Interim Results Announcement [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The Group recorded strong financial growth for H1 2024, with revenue up 113.9% to HK$492 million and profit surging over 12 times [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Revenue increased by 113.9% to HK$492 million, gross profit surged by 436.8% to HK$98.08 million, with profit for the period reaching HK$55.79 million Performance Summary for the Six Months Ended June 30 | Metric | For the six months ended June 30, 2024 (HK$'000) | For the six months ended June 30, 2023 (HK$'000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 492,499 | 230,283 | +113.9% | | Gross Profit | 98,076 | 18,269 | +436.8% | | Profit Before Income Tax | 67,318 | 3,727 | +1706.2% | | Profit for the Period | 55,789 | 4,175 | +1236.3% | | Basic and Diluted Earnings Per Share (HK cents) | 11.44 | 0.86 | +1230.2% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets increased to HK$311 million, net assets to HK$162 million, and net current assets improved, with bank borrowings decreasing Statement of Financial Position Summary | Metric | As of June 30, 2024 (HK$'000) | As of December 31, 2023 (HK$'000) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 311,375 | 273,097 | +14.0% | | Total Liabilities | 149,150 | 142,026 | +5.0% | | Net Assets | 162,225 | 131,071 | +23.8% | | Bank and Cash Balances | 14,437 | 4,467 | +223.2% | | Bank Borrowings | 49,230 | 66,000 | -25.4% | [Notes to the Financial Statements](index=4&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Group's focus on Hong Kong underground construction, significant revenue from key clients, and the declaration of an interim dividend - The Group's business is highly concentrated in underground construction services in Hong Kong, with no other operating or geographical segments[8](index=8&type=chunk)[9](index=9&type=chunk) - During the reporting period, **Client B** and **Client M** were major clients, contributing **HK$361 million** and **HK$53.04 million** in revenue, respectively[10](index=10&type=chunk) - The Board declared an interim dividend of **4.0 HK cents per share** for the year ending December 31, 2024, with no dividend declared in the prior corresponding period[15](index=15&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) Management reviews the Group's strong performance in underground construction, driven by Hong Kong's infrastructure projects, leading to significant revenue and profit growth and a robust financial position [Business Review and Prospects](index=13&type=section&id=Business%20Review%20and%20Prospects) The Group focuses on underground construction for public infrastructure in Hong Kong, securing new projects and maintaining a substantial order book, with a positive outlook from government initiatives - During the reporting period, the Group secured **10 new construction projects** with a total contract value of approximately **HK$175 million**[27](index=27&type=chunk) - As of June 30, 2024, the total outstanding contract sum was approximately **HK$812 million**, providing a solid foundation for future revenue[28](index=28&type=chunk) - Management anticipates sustained market demand driven by major Hong Kong government infrastructure projects, including the Northern Metropolis and new MTR lines[30](index=30&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) Exceptional financial performance was driven by a 113.9% revenue increase to HK$492 million, primarily from public sector tunnel construction, leading to a significant rise in gross profit margin and net profit growth Revenue Breakdown by Project Type (For the Six Months Ended June 30) | Project Type | 2024 (HK$'000) | % of Total | 2023 (HK$'000) | % of Total | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Public Sector Projects** | | | | | | | - Tunnel Construction Services | 367,626 | 74.6% | 74,547 | 32.4% | +393.1% | | - Utilities Construction and Others | 122,409 | 24.9% | 153,243 | 66.5% | -20.1% | | **Private Sector Projects** | 2,464 | 0.5% | 2,493 | 1.1% | -1.2% | | **Total** | **492,499** | **100.0%** | **230,283** | **100.0%** | **+113.9%** | - Gross profit and gross profit margin significantly increased to **HK$98.08 million** and **19.9%**, respectively, compared to HK$18.27 million and 7.9% in the prior period, primarily due to the progress of higher-margin tunnel construction services[34](index=34&type=chunk) - Net profit surged to approximately **HK$55.79 million** from HK$4.18 million in the prior period, driven by increased revenue and improved gross profit margin[40](index=40&type=chunk) [Liquidity, Financial Resources and Capital](index=19&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital) As of June 30, 2024, the Group maintained a robust financial position with increased cash balances, substantial available banking facilities, and an optimized debt structure with a reduced gearing ratio Liquidity and Financial Resources Overview | Metric | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Bank and Cash Balances (HK$'000) | 14,437 | 4,467 | | Pledged Bank Deposits (HK$'000) | 6,000 | 3,000 | | Total Available Banking Facilities (HK$'000) | 84,000 | 66,000 | | Unutilized Banking Facilities (HK$'000) | 34,770 | 0 | | Gearing Ratio | 65% | 78% | [Other Information](index=21&type=section&id=Other%20Information) This section discloses share repurchases, controlling shareholder's stake, a new share scheme with employee awards, and compliance with corporate governance codes - The Company repurchased a total of **2,292,000 shares** during and after the reporting period for approximately **HK$0.632 million**, which were cancelled on July 23, 2024[54](index=54&type=chunk) - The controlling shareholders, members of the Chong family (Chong Chun Ngok, Chong Wai Ku, Chong Yau Ka, and To Yin Ping), acting in concert, collectively hold **59.5%** of the Company's issued share capital[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - The Company adopted a new share scheme on May 29, 2024, and granted a total of **4.6 million award shares** to nine employees on June 14[60](index=60&type=chunk)

Financial Performance - The group's revenue increased from approximately HKD 440.5 million in the year ended December 31, 2022, to approximately HKD 549.6 million in the year ended December 31, 2023, representing a growth of about HKD 109 million or 24.7%[11]. - The gross profit for the year ended December 31, 2023, was approximately HKD 110 million, with a gross profit margin of 20.0%, compared to approximately HKD 13.9 million and 3.2% for the year ended December 31, 2022[11]. - The net profit attributable to the owners of the company for the year ended December 31, 2023, was approximately HKD 61.5 million, a significant increase from approximately HKD 5.8 million in the previous year[11]. - For the fiscal year ending December 31, 2023, the company reported revenues of HKD 549,554,000, representing a 24.8% increase from HKD 440,528,000 in 2022[18]. - The gross profit for the same period was HKD 110,022,000, a significant increase from HKD 13,927,000 in 2022, indicating a gross margin improvement[18]. - The net profit for the fiscal year was HKD 61,479,000, compared to HKD 5,804,000 in the previous year, reflecting a substantial growth in profitability[18]. Project and Contract Information - The company secured 10 public construction projects and 5 private sector projects during the reporting period, with a total contract value of approximately HKD 518.3 million and approximately HKD 26.6 million respectively[10]. - The total backlog of contracts confirmed as revenue and carried over from 2023 amounted to approximately HKD 1,065.2 million[10]. - The company participated in 39 public sector projects and 6 private sector projects during the reporting period, compared to 43 public sector projects in the previous year[10]. - The company secured 10 public construction projects and 5 private sector projects during the fiscal year, with a total contract value of approximately HKD 518,262,000[23]. - The backlog of contracts as of December 31, 2023, was approximately HKD 1,065,177,000, indicating strong future revenue potential[23]. Dividend and Shareholder Information - The company plans to propose a final dividend of HKD 0.05 per share, amounting to a total dividend payout of HKD 24.4 million, subject to shareholder approval[12]. - The company plans to pay a final dividend of HKD 0.05 per share, totaling HKD 24,390,400, pending shareholder approval[49]. - As of December 31, 2023, the company's distributable reserves amount to approximately HKD 26,710,000[169]. Operational Focus and Strategy - The company aims to focus on developing its tunnel construction services business, which is anticipated to be a key growth driver and a sustainable source of revenue[15]. - The company is exploring opportunities in various construction sectors beyond tunnel engineering to diversify its business[23]. - The demand for tunnel construction services in Hong Kong is expected to continue, driven by major infrastructure projects such as the Central Kowloon Route and the three-runway system at Hong Kong International Airport[15]. - The company is focusing on expanding its tunnel construction services, which are expected to be a major growth driver due to ongoing large infrastructure projects[30]. Governance and Management - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[86]. - The company has adopted and complied with the corporate governance code since its listing date, ensuring proper regulation of business activities and decision-making processes[87]. - The company has a dedicated management team responsible for overall project management and resource allocation[81]. - The company has established three committees to oversee specific aspects of governance, ensuring adequate resources and independent professional advice are available[106]. - The board is responsible for overall management and strategic planning, ensuring a balanced assessment of the company's performance and prospects[99]. Financial Position and Assets - Total assets increased to HKD 273,097,000 in 2023, up from HKD 156,946,000 in 2022, marking a 73.9% growth[18]. - The total service costs increased to approximately HKD 439,532,000, up HKD 12,931,000 or 3.0% from HKD 426,601,000 in the previous year[37]. - The administrative expenses rose to approximately HKD 28,013,000, an increase of HKD 2,466,000 or 9.7% from HKD 25,547,000 in the previous year, aligning with the increase in revenue[44]. - Financing costs increased to approximately HKD 3,712,000 from HKD 1,267,000 in the previous year, attributed to higher interest expenses on bank borrowings[45]. - The group had bank borrowings of HKD 66,000,000 as of December 31, 2023[52]. Employee and Workforce Information - The number of employees increased to 662 as of December 31, 2023, from 542 in 2022[65]. - Total employee costs, including service costs and administrative expenses, were approximately HKD 201,096,000 for the year ended December 31, 2023, compared to HKD 246,230,000 in 2022[65]. - The company has established a mandatory provident fund scheme for employees in Hong Kong, with both employer and employee contributions set at 5% of total income, capped at HKD 1,500 per month[182]. Risk Management and Compliance - The board believes that the risk management and internal control systems are adequate and effective during the reporting period[153]. - The company has established a whistleblowing policy allowing stakeholders to report concerns anonymously to the audit committee[154]. - The company has implemented a disclosure policy to ensure compliance with GEM listing rules and securities regulations[153]. - The company has engaged an independent internal control consultant to review the effectiveness of its risk management and internal control systems[153]. Social Responsibility and Sustainability - The company is committed to fulfilling social responsibilities, promoting employee welfare, protecting the environment, and achieving sustainable growth[200].

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 549,554,000, representing a 24.8% increase from HKD 440,528,000 in 2022[4] - Gross profit for the same period was HKD 110,022,000, a significant increase from HKD 13,927,000 in the previous year, indicating a gross margin improvement[4] - The net profit for the year was HKD 61,475,000, compared to HKD 5,802,000 in 2022, reflecting a substantial growth in profitability[4] - Basic and diluted earnings per share increased to HKD 12.60 from HKD 1.19, showcasing strong earnings growth[4] - The company reported a pre-tax profit of HKD 61,479,000 for 2023, a significant increase from HKD 5,804,000 in 2022, representing a growth of approximately 964%[35] - The net profit attributable to the owners of the company for the year ended December 31, 2023, was approximately HKD 61,479,000, a significant increase from approximately HKD 5,804,000 in 2022, driven by higher revenue and gross profit[64] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 253,361,000, up from HKD 142,575,000 in 2022, indicating robust asset growth[5] - The company's net current assets increased to HKD 115,621,000 from HKD 55,751,000, highlighting improved liquidity[5] - Non-current assets rose to HKD 19,736,000 from HKD 14,371,000, reflecting ongoing investment in long-term assets[5] - The company has a total equity of HKD 131,071,000, compared to HKD 69,596,000 in the previous year, demonstrating enhanced shareholder value[5] - The company's trade payables rose to HKD 23,839,000 in 2023 from HKD 17,376,000 in 2022, an increase of approximately 37%[39] - The group's capital debt ratio as of December 31, 2023, was approximately 78%, down from 102% in 2022, indicating improved financial stability[71] Revenue Sources - Revenue from public tunnel projects was HKD 325,178,000, up 45.5% from HKD 223,521,000 in the previous year[28] - The group has no independent operating segment financial information due to resource integration, with all revenue derived from Hong Kong[24][25] - Major customers contributing over 10% of total revenue included Customer M with HKD 189,767,000 and Customer B with HKD 186,027,000 in 2023[26] Operational Highlights - The company is focused on expanding its underground construction services, which may drive future revenue growth[9] - The company has secured 10 public construction projects and 5 private sector projects, with a total contract value of approximately HKD 518,262,000 and change orders of about HKD 26,583,000 for the year ended December 31, 2023[42] - The company is exploring opportunities for diversification in the construction industry beyond tunnel engineering, indicating a strategic shift in business focus[42] - The company is actively applying innovative construction technologies, such as automation and artificial intelligence, to enhance safety, environmental efficiency, and productivity[49] Employee and Administrative Expenses - The company’s employee benefits expenses decreased to HKD 201,096,000 in 2023 from HKD 246,230,000 in 2022, a reduction of about 18%[34] - The company’s total employee costs, including service costs and administrative expenses, were approximately HKD 201,096,000 for the year ending December 31, 2023, down from approximately HKD 246,230,000 in 2022, primarily due to reduced employee costs in service costs[80] - Administrative expenses increased from approximately HKD 25,547,000 in 2022 to approximately HKD 28,013,000 in 2023, an increase of about HKD 2,466,000 or 9.7%, aligning with the increase in revenue[60] Government Grants and Support - Government grants received in 2023 amounted to HKD 728,000, a decrease from HKD 14,546,000 in 2022[32] - The company did not receive any government employment support grants in 2023, unlike the previous year[32] Future Outlook - The company plans to adopt revised Hong Kong Financial Reporting Standards upon their effective date, with no significant impact expected on the consolidated financial statements[19] - The company plans to declare a final dividend of HKD 0.05 per share for 2023, compared to no dividend in 2022, amounting to HKD 24,390,000[35] Compliance and Governance - The company has adopted and complied with the corporate governance code since its listing on February 22, 2017, ensuring proper regulation of business activities and decision-making processes[83] - The audit committee, consisting of three independent non-executive directors, has reviewed the annual results for the year ending December 31, 2023[90] Miscellaneous - The company will hold its annual general meeting on May 24, 2024, with a suspension of share transfer registration from May 20 to May 24, 2024[89] - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[87] - The company will publish its annual report by April 30, 2024, in compliance with GEM listing rules[95] - There were no significant events affecting the group from December 31, 2023, to the date of this announcement[81]

Revenue Performance - Revenue decreased by 4.1% to approximately HK$305.9 million for the nine months ended September 30, 2023, compared to HK$319.1 million in the same period last year[9] - Revenue for the three months ended September 30, 2023, was HK$75.6 million, down from HK$103.3 million in the same period last year[12] - Revenue from major clients: Client M contributed HK$28.96 million in Q3 2023 and HK$161.10 million over the nine months ending September 30, 2023, while Client C contributed HK$25.82 million in Q3 2023 and HK$82.61 million over the nine months[25] - Revenue decreased by 4.1% to HK$305.9 million for the nine months ended September 30, 2023, compared to HK$319.1 million in the same period last year[54] - Revenue from public sector utility construction services increased by 26.7% to HK$189.3 million, while revenue from public sector tunnel construction services decreased by 30.8% to HK$114.1 million[54] Gross Profit and Margin - Gross profit increased to HK$25.5 million with a gross profit margin of 8.3% for the nine months ended September 30, 2023, up from HK$17.7 million and 5.6% in the same period last year[9] - Gross profit for the three months ended September 30, 2023, was HK$7.2 million, compared to HK$0.5 million in the same period last year[12] - Gross profit increased to HK$25.5 million with a gross margin of 8.3%, up from HK$17.7 million and 5.6% in the previous year[58] Net Profit and Earnings - Net profit attributable to owners of the company decreased to HK$4.49 million for the nine months ended September 30, 2023, compared to HK$16.26 million in the same period last year[10] - Basic and diluted earnings per share for the nine months ended September 30, 2023, were HK$0.0092, down from HK$0.0333 in the same period last year[12] - Pre-tax profit for the three months ended September 30, 2023, was HK$314,000, compared to HK$2,821,000 in the same period in 2022[34] - Pre-tax profit for the nine months ended September 30, 2023, was HK$4,490,000, compared to HK$16,257,000 in the same period in 2022[34] - Net profit decreased to HK$4.5 million from HK$16.3 million, largely due to the one-time government subsidy received in the previous year[65] Other Income and Expenses - Other income decreased to HK$0.9 million for the nine months ended September 30, 2023, from HK$17.2 million in the same period last year, mainly due to the one-time government grant from the Employment Support Scheme in 2022[12] - Other income: Total other income for the nine months ending September 30, 2023, was HK$913,000, including HK$21,000 in interest income, HK$146,000 in rental income, and HK$746,000 in miscellaneous income[28] - Government grants: The company received HK$14.55 million in government grants in 2022 under the Employment Support Scheme, which was used to support employee salaries[28] - Other income decreased significantly to HK$913,000 from HK$17.2 million, mainly due to the absence of government subsidies from the Employment Support Scheme[59] - Administrative expenses increased to HK$19.8 million for the nine months ended September 30, 2023, compared to HK$18.2 million in the same period last year[12] - Administrative expenses increased by 8.6% to HK$19.8 million, driven by a 3.0% increase in employee costs and benefits[61] - Financing costs increased to HK$2.6 million, primarily due to higher interest expenses on bank borrowings[62] Employee Costs - Employee benefit expenses, including directors' remuneration, decreased to HK$43,006,000 for the three months ended September 30, 2023, from HK$61,311,000 in the same period in 2022[30] - Employee benefit expenses for the nine months ended September 30, 2023, were HK$144,320,000, compared to HK$190,846,000 in the same period in 2022[30] - Service costs decreased by 6.9% to HK$280.4 million, primarily due to a 25.6% reduction in employee costs and a 51.0% reduction in subcontracting costs[56][57] Retained Earnings and Dividends - Retained earnings as of September 30, 2023, were HK$14.1 million, compared to HK$20.0 million as of September 30, 2022[14] - The company did not recommend any dividend for the nine months ended September 30, 2023, consistent with the same period in 2022[32] - The company did not recommend any dividend payment for the nine months ended September 30, 2023[66] Share Capital and Ownership - The company's issued and fully paid ordinary shares remained unchanged at 487,808,000 shares as of September 30, 2023[37] - The company's directors and senior executives hold a total of 290,120,000 shares, representing 59.5% of the issued share capital as of September 30, 2023[73] - Mr. Zhuang Junyue and Mr. Zhuang Weiju each directly hold 103,000,000 shares, with additional interests through spouses and concerted action agreements[73][75] - Ms. Du Yanbing holds 49,620,000 shares personally and is deemed to have interests in shares held by her spouse and through concerted action agreements[76] - Ms. Zhuang Roujia holds 34,500,000 shares personally and is deemed to have interests in shares held through concerted action agreements[76] - Mr. Wu Guolun holds 39,500,000 shares, representing 8.1% of the issued share capital[76] - No directors or senior executives hold any interests in equity derivatives as of September 30, 2023[73] Corporate Governance and Compliance - The company maintains high corporate governance standards in compliance with GEM Listing Rules[78] - The Board of Directors has reviewed and is satisfied with the company's corporate governance practices during the reporting period[78] - The company has not granted or issued any share options or adopted any share option plan as of September 30, 2023[81] - The company's third-quarter report for the nine months ended September 30, 2023, has been reviewed by the audit committee and is in compliance with applicable accounting standards and GEM Listing Rules[80] - The company has adopted the GEM Listing Rules' trading standards as the code of conduct for directors regarding securities transactions, and all directors and relevant persons have confirmed compliance during the reporting period[79] - The company has disclosed a financing letter with a Hong Kong licensed bank, which includes specific responsibilities for the controlling shareholder and a termination event if the controlling shareholder holds less than 50% of the issued shares[83] - The company's compliance advisor, Haode Financing Limited, has no interests in the group other than its roles as sponsor, compliance advisor, and financial advisor[84] - No directors or their associates have any interests in businesses that compete with the company's operations as of September 30, 2023[82] Business Operations and Projects - The company's primary business is providing underground construction services, mainly for public infrastructure projects in Hong Kong[44] - The company secured a total of 9 public sector construction projects and 5 private sector projects in 2023, with contract amounts and change orders totaling approximately HKD 502,412,000 and HKD 26,583,000 respectively[45] - The backlog of new contracts and carryover from 2022 contracts recognized as revenue after September 30, 2023, amounted to approximately HKD 1,296,054,000[45] - The company participated in 37 public sector projects (compared to 40 in the same period in 2022) and 7 private sector projects (compared to 5 in the same period in 2022) during the reporting period[45] - The company is focusing on the development of tunnel construction services, which are expected to be a major growth driver and sustainable revenue source, supported by large infrastructure projects such as the Central Kowloon Route and the Three-Runway System at Hong Kong International Airport[49] - The company has been awarded several major construction contracts, including HKD 28.9 billion for the Central Kowloon Route and HKD 10.9 billion for the T2 Main Road and Cha Kwo Ling Tunnel[51] - The company is actively applying innovative construction technologies such as automation and artificial intelligence to improve site safety, environmental performance, construction quality, and productivity[52] - The company has a formal quality management system certified to ISO 9001:2015 standards, ensuring compliance with specific work procedures and quality assurance requirements[47] - The company's performance is heavily reliant on the supply of public sector civil engineering projects in Hong Kong, which are subject to fluctuations in project numbers, scale, and revenue due to the non-recurring nature of such projects[48] - The company's operations are entirely based in Hong Kong, making its business, financial performance, and prospects highly dependent on Hong Kong government policies, political environment, and economic conditions[48] - The company is exploring opportunities for diversification within the construction industry, including public utility construction services, earthworks, bridge construction, and building construction[45] Financial Position and Commitments - Capital commitments for the acquisition of property, plant, and equipment as of September 30, 2023, were approximately HK$2,689,000, compared to HK$2,386,000 as of December 31, 2022[41] - The company has no significant foreign currency risk as all transactions are denominated in Hong Kong dollars[68] - Deferred tax credits for the nine months ended September 30, 2023, were HK$497,000, compared to HK$438,000 in the same period in 2022[31]