Financial Performance - The group's revenue increased from approximately HKD 134.57 million in the year ended December 31, 2020, to approximately HKD 443.55 million in the year ended December 31, 2021, representing an increase of approximately HKD 308.98 million or 229.6%[9] - The group achieved a gross profit of approximately HKD 32.37 million with a gross profit margin of 7.3% for the year ended December 31, 2021, compared to a gross profit of approximately HKD 19.56 million and a margin of 14.5% in the previous year[10] - The net profit attributable to owners of the company for the year was approximately HKD 10.45 million, up from approximately HKD 1.01 million in the previous year[12] - The gross profit for the same period was HKD 32,373,000, compared to HKD 19,561,000 in 2020, indicating a gross profit margin improvement[16] - Net profit for the year ended December 31, 2021, was approximately HKD 10,451,000, compared to approximately HKD 1,008,000 for the year ended December 31, 2020, indicating a significant increase driven by revenue and gross profit growth[44] Revenue Sources - Revenue from public sector tunnel construction projects rose from approximately HKD 57.38 million to approximately HKD 229.99 million, an increase of approximately HKD 172.61 million or 300.8%[9] - The group secured 14 public construction projects and two private sector projects during the reporting period, with a total contract value of approximately HKD 243.90 million and confirmed change orders of approximately HKD 5.72 million[8] - The backlog of new contracts confirmed as revenue and carried over from 2021 amounted to approximately HKD 298.05 million[8] - The group participated in 35 public sector projects and three private sector projects during the reporting period, compared to 32 and seven respectively in the previous year[8] Operational Challenges - The construction progress certification process in Q4 2021 was delayed due to the COVID-19 pandemic, impacting the group's financial performance[12] - The group faced operational challenges due to COVID-19, including reduced workforce availability and project delays, but these did not significantly impact overall operations[26] - Despite short-term impacts from the pandemic, the group anticipates that these risks and uncertainties will not significantly affect its operations[12] Corporate Governance - The company emphasizes the importance of effective corporate governance to enhance transparency and accountability[78] - The company aims to maintain high standards of corporate governance while balancing the interests of stakeholders[78] - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[79] - The company has a commitment to continuous improvement in governance practices to maximize shareholder value[78] Employee and Administrative Costs - Employee costs rose from approximately HKD 53.14 million in 2020 to approximately HKD 189.77 million in 2021, an increase of about 257.1%[34] - Administrative expenses increased from approximately HKD 22,599,000 for the year ended December 31, 2020, to approximately HKD 25,402,000 for the year ended December 31, 2021, representing an increase of about HKD 2,803,000 or 12.4%[40] - Total employee costs and director remuneration for the year ended December 31, 2021, amounted to approximately HKD 200,728,000, up from approximately HKD 63,021,000 for the year ended December 31, 2020, reflecting an increase due to higher service costs and average workforce[59] Future Outlook - The group anticipates continued demand for tunnel construction services due to ongoing infrastructure projects such as the Central Kowloon Route and the Tseung Kwan O-Lam Tin Tunnel[28] - The group expects the tunnel construction business to be a major growth driver and a sustainable source of revenue in the long term[28] Awards and Recognition - The group received the Model Subcontractor Bronze Award from the Hong Kong Government's Development Bureau and the Construction Industry Council, marking a significant milestone in its reputation as a service provider for public works[8] - The company was awarded the Model Subcontractor Bronze Award at the 27th Considerate Contractors Site Award Scheme, enhancing its reputation as a quality service provider in public works[87] Shareholder Information - As of December 31, 2021, the total shareholding of the major shareholders, including Mr. Zhuang Junyue and Mr. Zhuang Weijiao, amounts to 290,120,000 shares, representing 59.5% of the company's issued share capital[188] - Mr. Wu Guolun holds 39,500,000 shares, which accounts for 8.1% of the company's issued share capital[192] Internal Controls and Risk Management - The board has reviewed the effectiveness of the risk management and internal control systems for the year ending December 31, 2021, and found them adequate and effective[150] - The company has engaged an independent internal audit consultant to review the effectiveness of its risk management and internal control systems[150] Dividend Policy - The company has a dividend policy in place, as required by the corporate governance code[143] - The company did not recommend the distribution of a final dividend for the year ended December 31, 2021[160] - The board of directors will consider various factors, including performance and dividends, when determining the dividend payout ratio[159]

Revenue Growth - The group's revenue increased from approximately HKD 87,361,000 for the nine months ended September 30, 2020, to approximately HKD 279,589,000 for the same period in 2021, representing a growth of about 220.0%[8] - Revenue from public sector tunnel construction projects rose from approximately HKD 38,789,000 to approximately HKD 151,622,000, an increase of about 291.0%[8] - The total revenue for the nine months ended September 30, 2021, was HKD 123,104,000, compared to HKD 44,925,000 for the same period in 2020, reflecting an increase of approximately 174%[29] - The group recorded other income of approximately HKD 3,594,000 for the nine months ended September 30, 2021, compared to HKD 3,815,000 in the previous year[11] - Other income for the nine months ended September 30, 2021, totaled HKD 3,594,000, a decrease from HKD 3,815,000 in the same period of 2020, indicating a decline of approximately 6%[26] Profitability - Gross profit for the nine months ended September 30, 2021, was approximately HKD 28,868,000, with a gross margin of 10.3%, down from 16.9% in the previous year[9] - The net profit attributable to the owners of the company for the nine months ended September 30, 2021, was approximately HKD 12,981,000, compared to HKD 1,057,000 for the same period in 2020[9] - For the nine months ended September 30, 2021, the company reported a profit of HKD 12,981,000, compared to a profit of HKD 1,061,000 for the same period in 2020, representing a significant increase of approximately 1,223%[12] - For the three months ended September 30, 2021, the profit before tax was HKD 6,748,000, compared to HKD 96,000 for the same period in 2020, representing a significant increase[33] - For the nine months ended September 30, 2021, the profit before tax was HKD 12,981,000, compared to HKD 1,061,000 for the same period in 2020, indicating a substantial growth[33] Expenses - Administrative expenses for the nine months ended September 30, 2021, were approximately HKD 16,901,000, slightly up from HKD 16,256,000 in the previous year[11] - The group experienced increased subcontracting costs due to more reliance on construction materials, negatively impacting the gross margin[9] - The total employee benefits expenses, including directors' remuneration, amounted to HKD 123,104,000 for the nine months ended September 30, 2021, compared to HKD 44,925,000 for the same period in 2020, showing an increase of approximately 174%[29] - The company reported a tax expense of HKD 2,455,000 for the nine months ended September 30, 2021, compared to HKD 1,001,000 for the same period in 2020[30] - Financing costs decreased from approximately HKD 226,000 to approximately HKD 127,000 due to reduced interest expenses on bank borrowings[62] Shareholder Information - As of September 30, 2021, the total shareholding of Mr. Zhuang Junyue and Mr. Zhuang Weijiao is 290,120,000 shares, representing 59.5% of the issued share capital[72] - Mr. Zhuang Junyue holds 103,000,000 shares directly and has a deemed interest in 187,120,000 shares through concerted action[73] - Mr. Zhuang Weijiao holds 103,000,000 shares directly and has a deemed interest in 49,620,000 shares through his spouse[73] - Ms. Du Yanbing, a major shareholder, holds a total of 290,120,000 shares, which is 59.5% of the issued share capital[75] - Mr. Wu Guolun holds 39,500,000 shares, representing 8.1% of the issued share capital[75] Corporate Governance - The company emphasizes the importance of maintaining high standards of corporate governance for sustainable development[80] - The board has reviewed the corporate governance practices and believes the company has complied with the GEM Listing Rules[80] - The company has adopted and complied with the corporate governance code since its listing on February 22, 2017[80] - The independent internal control consultant reported to the audit committee on March 23, 2021, and specific procedures have been implemented to strengthen internal control measures[83] - The audit committee, consisting of three independent non-executive directors, reviewed the third-quarter report for the nine months ended September 30, 2021, confirming compliance with applicable accounting standards and GEM Listing Rules[84] Market Position and Strategy - The company is focused on expanding its public sector construction services, which have shown significant revenue growth in recent periods[8] - The group has secured 10 public construction projects and one private sector project with a total contract value of approximately HKD 154,050,000 and HKD 2,894,000 respectively as of September 30, 2021[44] - The group anticipates sustained demand for tunnel construction services due to ongoing major infrastructure projects, including the Central Kowloon Route and the three-runway system at Hong Kong International Airport[50] - The group is one of the few selected subcontractors with extensive experience in tunnel construction, positioning itself to capitalize on upcoming public infrastructure projects[51] - The group is exploring opportunities for diversification in the construction industry beyond tunnel engineering[44]

Revenue Growth - The group's revenue increased from approximately HKD 59,196,000 for the six months ended June 30, 2020, to approximately HKD 124,498,000 for the six months ended June 30, 2021, representing a growth of about 110.3%[8] - The revenue growth was primarily driven by public sector projects, with revenue from utility construction services rising from approximately HKD 30,782,000 to approximately HKD 71,292,000 during the same period[8] - Revenue for the six months ended June 30, 2021, was HKD 22,741,000 from Customer B, a significant increase from HKD 9,234,000 in the same period of 2020, representing a growth of 146%[30] - The group's revenue for the six months ended June 30, 2021, increased to approximately HKD 124,498,000, representing a growth of about 110.3% from HKD 59,196,000 for the same period in 2020[74] - Revenue from public sector projects, specifically tunnel construction services, rose from approximately HKD 25,625,000 to HKD 50,301,000, an increase of about 96.3%[74] - Revenue from public sector projects related to utility construction and others increased from approximately HKD 30,782,000 to HKD 71,292,000, marking a growth of about 131.6%[74] Profitability - The group's gross profit for the six months ended June 30, 2021, was approximately HKD 16,016,000, with a gross profit margin of 12.9%, down from 20.1% in the previous year[8] - The net profit attributable to the owners of the company for the six months ended June 30, 2021, was approximately HKD 6,233,000, compared to HKD 965,000 for the same period in 2020[9] - Basic and diluted earnings per share for the six months ended June 30, 2021, were HKD 1.28, up from HKD 0.20 in the previous year[11] - The company reported a profit of HKD 6,233,000 for the six months ended June 30, 2021, compared to HKD 965,000 in the prior year, indicating a year-over-year increase of approximately 546.0%[15] - The group reported a profit before tax of HKD 6,233,000 for the six months ended June 30, 2021, compared to HKD 965,000 for the same period in 2020, indicating a substantial increase of 546%[39] - The net profit for the six months ended June 30, 2021, was approximately HKD 6,233,000, a significant increase from HKD 965,000 for the same period in 2020, primarily due to increased revenue[85] Expenses and Costs - The group's gross profit for the six months ended June 30, 2021, was approximately HKD 16,016,000, with a gross margin of 12.9%, down from 20.1% in the same period of 2020[79] - The group incurred employee benefits expenses of HKD 53,953,000 for the six months ended June 30, 2021, compared to HKD 30,152,000 in the same period of 2020, reflecting an increase of 79%[36] - Service costs surged from approximately HKD 47,303,000 to HKD 108,482,000, an increase of about 129.3%[77] - The cost of construction materials and supplies rose significantly from approximately HKD 11,434,000 to HKD 37,437,000, an increase of about 227.4%[77] - The group’s administrative expenses for the six months ended June 30, 2021, were approximately HKD 11,447,000, slightly up from HKD 11,378,000 in the previous year[11] Assets and Liabilities - Total assets increased to HKD 75,593,000 as of June 30, 2021, compared to HKD 63,103,000 as of December 31, 2020, representing a growth of approximately 19.5%[12] - The company's net asset value rose to HKD 59,578,000 as of June 30, 2021, up from HKD 53,346,000 at the end of 2020, reflecting an increase of about 11.5%[13] - The company’s total liabilities increased to HKD 29,510,000 as of June 30, 2021, from HKD 19,728,000 at the end of 2020, representing a growth of about 49.5%[12] - Cash and cash equivalents decreased to HKD 1,686,000 as of June 30, 2021, down from HKD 6,937,000 at the beginning of the period, a decline of about 75.7%[19] - Trade and other receivables increased to HKD 48,999,000 as of June 30, 2021, compared to HKD 32,037,000 at the end of 2020, marking a rise of approximately 53.3%[12] Operational Performance - The group participated in more structure engineering projects that heavily relied on construction materials, contributing to the decline in gross profit margin[8] - The group is focused on expanding its public sector project portfolio, which is expected to drive future revenue growth[8] - The company plans to continue expanding its construction services in Hong Kong, focusing on enhancing operational efficiency and service quality[22] - The group secured five public construction projects and one private sector project during the six months ending June 30, 2021, with total contract values of approximately HKD 111,289,000 and HKD 2,894,000 respectively[65] - The group participated in 24 public sector projects and two private sector projects during the reporting period, an increase from 18 public and six private sector projects in the same period of the previous year[65] Corporate Governance - The company maintains high standards of corporate governance, adhering to the GEM listing rules and corporate governance code since its listing on February 22, 2017[107] - The audit committee, composed of three independent non-executive directors, reviewed the interim report for the six months ending June 30, 2021, confirming compliance with applicable accounting standards and GEM listing rules[111] - The company has implemented specific procedures to enhance internal control measures regarding trading compliance standards[110] - There are no reported non-compliance issues regarding the trading conduct of directors and senior management during the reporting period[110] Future Outlook - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[22] - The Hong Kong government plans to invest over HKD 100 billion annually in infrastructure, with total construction output expected to reach approximately HKD 300 billion per year[71] - The group continues to explore opportunities for diversification in the construction industry beyond tunnel engineering[65] - The group is one of the few selected subcontractors for tunnel construction and is well-prepared to seize opportunities from upcoming public infrastructure projects[72] Employee Information - The total employee cost for the six months ended June 30, 2021, was approximately HKD 53,953,000, up from approximately HKD 30,152,000 for the same period in 2020, mainly due to an increase in the number of employees[96] - The group had 650 employees as of June 30, 2021, an increase from 323 employees as of June 30, 2020[96] Shareholder Information - As of June 30, 2021, major shareholders include Ms. Du Yanbing and Ms. Zhuang Roujia, each holding 290,120,000 shares, representing 59.5% of the company's issued share capital[102] - Mr. Wu Guolun holds 39,500,000 shares, accounting for 8.1% of the company's issued share capital[102] Compliance and Risk Management - The company has not recognized any impairment losses for contract assets during the reporting period[44] - The group had no contingent liabilities other than those disclosed in the unaudited condensed consolidated financial statements[92] - The group has not experienced significant adverse effects from the COVID-19 pandemic during the reporting period[68]

Financial Performance - The group's revenue increased from approximately HKD 26,634,000 in Q1 2020 to approximately HKD 50,264,000 in Q1 2021, representing an increase of about HKD 23,630,000 or 88.7%[9] - Gross profit rose from approximately HKD 6,136,000 in Q1 2020 to approximately HKD 6,795,000 in Q1 2021, an increase of about HKD 659,000 or 10.7%[9] - The net profit attributable to the company's owners was approximately HKD 3,068,000 in Q1 2021, compared to approximately HKD 17,000 in Q1 2020[10] - The total comprehensive income for the period was approximately HKD 3,067,000 in Q1 2021, compared to HKD 16,000 in Q1 2020[12] - For the three months ended March 31, 2021, the company reported a profit of HKD 3,068,000, compared to a profit of HKD 21,000 for the same period in 2020, representing a significant increase[13] - The company reported a profit before tax of HKD 3,353,000 in Q1 2021, compared to HKD 240,000 in Q1 2020[12] - The company's profit before tax for the three months ended March 31, 2021, was HKD 3,068,000, compared to HKD 21,000 for the same period in 2020, representing a significant increase[32] Earnings and Dividends - The basic and diluted earnings per share for Q1 2021 was HKD 0.63, compared to less than HKD 0.1 in Q1 2020[12] - The company did not declare any dividends for the three months ended March 31, 2021, consistent with the same period in 2020[30] - The board did not recommend any dividend payment for the three months ended March 31, 2021, consistent with the previous year[55] Government Support - The company received government subsidies under the Employment Support Scheme, contributing to the increase in net profit[10] - The company received government grants of HKD 2,572,000 during the reporting period, which were utilized to support employee salaries under the Employment Support Scheme[26] Revenue Sources - Major clients contributing over 10% of revenue included Client S with HKD 18,892,000 and Client T with HKD 10,726,000 for the three months ended March 31, 2021[24] - Revenue from public sector projects for tunnel construction services rose from approximately HKD 8,974,000 to approximately HKD 22,518,000, an increase of approximately HKD 13,544,000 or 150.9%[44] Costs and Expenses - Administrative expenses rose from HKD 5,903,000 in Q1 2020 to HKD 6,148,000 in Q1 2021[12] - Employee benefits expenses, including directors' remuneration, rose to HKD 22,080,000 in Q1 2021 from HKD 15,189,000 in Q1 2020, reflecting a year-on-year increase of approximately 45.5%[6] - The group's service costs increased from approximately HKD 20,498,000 to approximately HKD 43,469,000, an increase of approximately HKD 22,971,000 or 112.1%[46] - The cost of construction materials and supplies surged from approximately HKD 2,424,000 to approximately HKD 14,626,000, an increase of approximately HKD 12,202,000 or 503.4%[46] Assets and Equity - Total equity attributable to owners increased to HKD 56,021,000 as of March 31, 2021, up from HKD 51,945,000 as of March 31, 2020, reflecting a growth of approximately 7.9%[13] - The company’s retained earnings decreased to HKD (3,596,000) as of March 31, 2021, from HKD (7,672,000) as of March 31, 2020, indicating an improvement in retained earnings[13] Operational Focus - The company is focusing on expanding its tunnel construction services, which are expected to be a major growth driver supported by several large infrastructure projects[40] - The group anticipates continued opportunities in public infrastructure projects, leveraging its experience in tunnel construction[42] - The company has been actively evaluating opportunities in the underground construction sector to diversify its business beyond tunnel engineering[35] Compliance and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[19] - The audit committee, consisting of three independent non-executive directors, reviewed the first quarter report for the period ending March 31, 2021, confirming compliance with applicable accounting standards and GEM listing rules[68]. - 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[72]. Shareholding Structure - As of March 31, 2021, Mr. Zhuang Junyue held a total of 287,896,000 shares, representing 59.0% of the company's issued share capital[63] - Ms. Du Yanbing and Ms. Zhuang Roujia also held a combined total of 287,896,000 shares, each representing 59.0% of the company's issued share capital[66] - Mr. Wu Guolun was reported to hold 37,500,000 shares, which accounts for 7.7% of the company's issued share capital[66] - The company did not identify any other individuals with recorded interests in the company's shares or related securities as of March 31, 2021[67] Risk Management - The group reported no significant foreign currency risk as transactions were primarily denominated in Hong Kong dollars[59] - The company’s performance is heavily reliant on the supply of civil engineering projects in the public sector in Hong Kong, which may vary significantly over time[37] Other Information - The company has not reported any independent operating segment financial information, as resources are integrated across the group[21] - The company has submitted several tenders to main contractors, with results pending announcement, indicating ongoing efforts to secure new projects[35] - No major events occurred after March 31, 2021, that could significantly impact the group's operations and financial performance[60] - During the reporting period, the company and its subsidiaries did not purchase, redeem, or sell any of the company's listed securities[61] - As of March 31, 2021, the company has not granted or issued any stock options or adopted any stock option plans[69]. - The independent internal control consultant reported to the audit committee on March 23, 2021, and specific procedures have been implemented to strengthen internal control measures[76]. - The company has established a compliance advisory agreement with a sponsor, which has been extended on March 31, 2020, and March 24, 2021[78].

Financial Performance - The group achieved a revenue of approximately HKD 134,572,000 for the year ended December 31, 2020, representing an increase of about HKD 53,779,000 or 66.6% compared to the previous year[9]. - The gross profit for the same period was approximately HKD 19,561,000, with a gross margin of 14.5%, a significant improvement from a gross loss of approximately HKD 5,779,000 and a gross margin of 7.2% in the previous year[9]. - The net profit attributable to the owners of the company for the year was approximately HKD 1,008,000, a turnaround from a net loss of approximately HKD 28,217,000 in the previous year[9]. - The group's financial performance improvement is attributed to the increase in revenue and gross margin from ongoing construction projects[9]. - For the fiscal year ended December 31, 2020, the group's revenue was HKD 134,572,000, a significant increase from HKD 80,793,000 in 2019, representing a growth of 66.5%[15]. - The group achieved a gross profit of HKD 19,561,000 in 2020, compared to a gross loss of HKD 5,779,000 in 2019, marking a turnaround in profitability[15]. - The adjusted net profit for the year was HKD 1,008,000, recovering from a loss of HKD 28,217,000 in 2019[15]. - Total assets as of December 31, 2020, were HKD 74,085,000, an increase from HKD 70,678,000 in 2019[15]. - The group’s service costs increased from approximately HKD 86,572,000 in 2019 to about HKD 115,011,000 in 2020, an increase of about HKD 28,439,000 or 32.9%[37]. - The company’s financial performance and overall financial position are detailed in the annual report[157]. Project Acquisition and Revenue Sources - The group secured 15 public construction projects with a total contract value of approximately HKD 219,105,000 during the reporting period, compared to 16 projects valued at approximately HKD 307,026,000 in the previous year[8]. - The estimated revenue from new projects acquired in 2020 is approximately HKD 406,439,000, including additional works for the Central Kowloon Route and Tseung Kwan O-Lam Tin Tunnel[8]. - Revenue from public sector projects accounted for 97.6% of total revenue in 2020, with tunnel construction services contributing HKD 57,375,000 (42.6% of total revenue)[23]. - The group participated in 32 public sector projects in 2020, an increase from 22 projects in 2019[23]. - Revenue from public sector projects in tunnel construction increased from approximately HKD 29,035,000 in 2019 to about HKD 57,375,000 in 2020[36]. - Revenue from public sector projects in utility construction rose from approximately HKD 41,420,000 in 2019 to about HKD 73,989,000 in 2020[36]. Market Outlook and Strategic Focus - The group anticipates continued demand for tunnel construction services due to ongoing projects such as the Central Kowloon Route and the Tseung Kwan O-Lam Tin Tunnel, which are expected to drive long-term sustainable revenue growth[12]. - The group remains focused on developing its tunnel construction services business as a primary growth driver and sustainable revenue source[12]. - The company has expressed optimism regarding the rollout of public infrastructure projects in the foreseeable future[12]. - The Hong Kong government plans to invest over HKD 100 billion annually in infrastructure projects in the coming years, with total construction output expected to increase to approximately HKD 300 billion per year[32]. - The group has been selected as one of the few subcontractors for public infrastructure projects, indicating readiness to seize upcoming opportunities[33]. Corporate Governance - The company emphasizes high standards of corporate governance to enhance transparency and accountability, adhering to the GEM Listing Rules[86]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[84]. - The company has adopted and complied with the corporate governance code since its listing date on February 22, 2017[86]. - The board has appointed an independent internal control consultant to review and enhance internal controls related to trading standards from November 10, 2020, to January 31, 2021[93]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific matters[103]. - The company aims to maximize shareholder value while considering the interests of other stakeholders[83]. - The board has reviewed the corporate governance policy and is satisfied with its effectiveness, committing to annual reviews[104]. Employee and Administrative Costs - Administrative expenses decreased from approximately HKD 23,549,000 for the year ended December 31, 2019, to approximately HKD 22,599,000 for the year ended December 31, 2020, a reduction of about HKD 950,000 or 4.0%[43]. - Employee costs and benefits for the year ended December 31, 2020, were approximately HKD 6,472,000, down from HKD 7,067,000 in 2019, representing a decrease of about HKD 595,000 or 8.4%[43]. - Total employee costs, including service costs and administrative expenses, were approximately HKD 63,021,000 for the year ended December 31, 2020, up from approximately HKD 49,661,000 in 2019, reflecting an increase due to higher service costs and average workforce numbers[64]. Risk Management and Compliance - The board believes that the risk management and internal control systems are adequate and effective as of December 31, 2020[149]. - The company has engaged an independent internal audit consultant to review the effectiveness of its internal control and risk management systems[149]. - The company has implemented specific procedures to reduce the risk of non-compliance with trading standards following a trading incident involving a major shareholder[93]. Shareholder Information - The company did not recommend the distribution of a final dividend for the year ended December 31, 2020[156]. - The company aims to balance sufficient capital for business development and shareholder returns when determining dividend distribution ratios[155]. - The company has adopted a dividend policy on March 25, 2020, to enhance transparency and communication with shareholders[155]. - As of December 31, 2020, the company's distributable reserves amounted to approximately HKD 34,244,000[164]. Auditor and Financial Reporting - The auditors received a total fee of HKD 701,600, which includes HKD 660,000 for audit services and HKD 41,600 for non-audit services[130]. - The company’s auditor for the year ended December 31, 2020, was Hong Kong Lixin Dehao CPA Limited, which will be proposed for reappointment at the annual general meeting[199]. - The audit committee held five meetings during the year ending December 31, 2020, to oversee financial reporting and internal controls[108].

Financial Performance - The group's revenue increased from approximately HKD 50,623,000 for the nine months ended September 30, 2019, to approximately HKD 87,361,000 for the same period in 2020, representing a growth of 72.6%[8]. - Gross profit for the nine months ended September 30, 2020, was approximately HKD 14,727,000, with a gross margin of 16.9%, compared to a gross loss of approximately HKD 3,408,000 and a gross margin of 6.7% for the same period in 2019[9]. - The net profit attributable to the owners of the company for the nine months ended September 30, 2020, was approximately HKD 1,061,000, a significant turnaround from a net loss of approximately HKD 19,299,000 for the same period in 2019[9]. - The company recorded a profit before tax of approximately HKD 2,060,000 for the nine months ended September 30, 2020, compared to a loss before tax of approximately HKD 19,484,000 for the same period in 2019[11]. - The basic and diluted earnings per share for the nine months ended September 30, 2020, was HKD 0.2, compared to a loss per share of HKD 3.9 for the same period in 2019[11]. - The overall comprehensive income for the nine months ended September 30, 2020, was approximately HKD 1,055,000, a recovery from a comprehensive loss of approximately HKD 19,299,000 in 2019[11]. - The company reported a profit of HKD 1,061,000 for the nine months ended September 30, 2020, compared to a loss of HKD 19,299,000 for the same period in 2019, indicating a significant turnaround[12]. - For the nine months ended September 30, 2020, the profit was HKD 1,061,000, a significant improvement from a loss of HKD 19,299,000 in 2019[29]. Revenue Sources - Revenue from public sector projects, particularly tunnel construction services, rose from approximately HKD 15,807,000 in 2019 to approximately HKD 38,789,000 in 2020, driven by new contracts awarded in the fourth quarter of 2019[8]. - Revenue from public sector projects, specifically tunnel construction services, rose by 145.4% to approximately HKD 38,789,000, compared to HKD 15,807,000 in the previous year[51]. - Revenue from public sector projects related to utility construction and others increased by 75.2% to approximately HKD 45,503,000, up from HKD 25,968,000 in the same period of 2019[51]. - Revenue from major clients for the nine months ended September 30, 2020, included HKD 17,025,000 from Client B, up from HKD 16,748,000 in 2019, reflecting a growth of 1.65%[23]. Expenses and Costs - Administrative expenses for the nine months ended September 30, 2020, were approximately HKD 16,256,000, slightly down from HKD 16,430,000 in 2019[11]. - Employee benefit expenses, including director remuneration, increased to HKD 44,925,000 for the nine months ended September 30, 2020, up from HKD 33,265,000 in 2019, representing a 35% increase[27]. - Service costs increased by 34.4% to approximately HKD 72,634,000, up from HKD 54,031,000, primarily due to higher employee costs and construction materials[53]. - Financing costs increased to approximately HKD 226,000 from HKD 103,000, attributed to higher bank loan interest expenses[59]. - Deferred tax expenses amounted to HKD 1,001,000 for the nine months ended September 30, 2020, compared to a tax credit of HKD 185,000 in 2019[27]. Government Support and Other Income - The company reported other income of approximately HKD 3,815,000 for the nine months ended September 30, 2020, compared to HKD 457,000 for the same period in 2019[11]. - Government subsidies received amounted to HKD 3,282,000 for the nine months ended September 30, 2020, compared to no subsidies in the same period of 2019[25]. - The total other income for the nine months ended September 30, 2020, was HKD 3,815,000, compared to HKD 457,000 in 2019, indicating a substantial increase[25]. Project and Market Outlook - The group anticipates sustained demand for tunnel construction services due to ongoing major infrastructure projects, including the Tseung Kwan O-Lam Tin Tunnel and the Central Kowloon Route[47]. - The Hong Kong government's annual capital works expenditure for infrastructure projects is expected to average HKD 100,000,000,000, with total construction output projected to increase to approximately HKD 300,000,000,000 in the coming years[47]. - The group is focusing on developing a comprehensive suite of tunnel construction services, which has established a solid foundation for growth since 2014[40]. - The overall project pipeline includes significant contracts for the construction of tunnels and utility services, with completion expected by 2026[50]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the third-quarter report for the nine months ending September 30, 2020, confirming compliance with applicable accounting standards and GEM listing rules[77]. - The board of directors has reviewed the corporate governance practices and believes the company has complied with the corporate governance code as per GEM listing rules[80]. - The company has not adopted any new accounting standards that have not yet come into effect as of January 1, 2020, ensuring consistency in financial reporting[19]. Shareholder Information - As of September 30, 2020, the total shareholding of the directors and senior management in the company was 275,000,000 shares, representing 56.4% of the issued share capital[70]. - Wu Guolun held 37,500,000 shares, representing 7.7% of the issued share capital[75]. Other Notable Information - The company is in the process of developing a feature film based on intellectual property acquired from an independent third party in December 2019[20]. - The group did not purchase, redeem, or sell any of its listed securities during the reporting period[69]. - There were no significant events after September 30, 2020, that could materially affect the group's operations and financial performance[67].

Financial Performance - The group's revenue increased from approximately HKD 34,650,000 for the six months ended June 30, 2019, to approximately HKD 59,196,000 for the six months ended June 30, 2020, representing a growth of about 70.8%[8] - Gross profit for the six months ended June 30, 2020, was approximately HKD 11,893,000, with a gross margin of 20.1%, compared to a gross loss of approximately HKD 1,272,000 and a gross margin of 3.7% for the same period in 2019[9] - The net profit attributable to the owners of the company for the six months ended June 30, 2020, was approximately HKD 965,000, a significant turnaround from a net loss of approximately HKD 10,438,000 for the same period in 2019[9] - The overall financial performance indicates a recovery trend, positioning the company for potential future growth opportunities in the construction sector[9] - The group reported a profit of HKD 965,000 for the six months ended June 30, 2020, compared to a loss of HKD 10,438,000 in the same period of 2019[15] Revenue Sources - The increase in revenue and gross profit was primarily driven by public sector projects, particularly tunnel construction services, which saw revenue rise from approximately HKD 10,181,000 in 2019 to approximately HKD 25,625,000 in 2020[8] - Revenue from public sector projects for tunnel construction services rose from approximately HKD 10,181,000 to approximately HKD 25,625,000, an increase of about 151.7%[72] - Revenue from public sector projects for utility construction services increased from approximately HKD 17,592,000 to approximately HKD 30,782,000, a growth of about 75.0%[72] - Revenue from private sector projects decreased from approximately HKD 6,877,000 to approximately HKD 2,789,000, a decline of about 59.4%[72] Expenses and Costs - Administrative expenses for the six months ended June 30, 2020, were approximately HKD 11,378,000, slightly higher than HKD 11,164,000 for the same period in 2019[11] - Service costs rose from approximately HKD 35,922,000 to approximately HKD 47,303,000, an increase of about 31.7%[74] - Employee costs increased from approximately HKD 17,303,000 to approximately HKD 25,374,000, a rise of about 46.6%[74] - Financing costs rose from approximately HKD 58,000 for the six months ended June 30, 2019, to approximately HKD 147,000 for the same period in 2020, due to increased bank loan interest expenses[80] Assets and Liabilities - Non-current assets increased to HKD 10,624,000 as of June 30, 2020, compared to HKD 7,203,000 in December 2019, representing a growth of 47.5%[12] - Current assets decreased to HKD 58,377,000 from HKD 62,902,000, a decline of 7.9%[12] - Total liabilities decreased from HKD 17,811,000 to HKD 14,022,000, a reduction of 21.5%[12] - The company’s total assets less current liabilities stood at HKD 54,979,000, an increase from HKD 52,867,000, marking a growth of 4.0%[12] Cash Flow - The net cash flow from operating activities was negative at HKD 8,304,000 for the six months ended June 30, 2020, compared to a positive cash flow of HKD 2,382,000 in the same period of 2019[17] - Cash and cash equivalents decreased significantly to HKD 3,911,000 from HKD 17,375,000, a drop of 77.5%[19] - The group's cash and cash equivalents decreased to approximately HKD 3,911,000 as of June 30, 2020, down from approximately HKD 17,375,000 as of December 31, 2019, primarily due to cash used in operating activities[84] Future Outlook - The company is focused on expanding its public sector project portfolio, particularly in tunnel construction, to sustain revenue growth in the future[8] - The group anticipates sustained demand for tunnel construction services due to ongoing projects like the Central Kowloon Route and Tseung Kwan O-Lam Tin Tunnel[69] - The Hong Kong government’s annual capital works expenditure is expected to average HKD 100,000,000,000, with total construction output projected to increase to about HKD 300,000,000,000 in the coming years[69] - The group is exploring opportunities for diversification in the construction industry to adapt to current market conditions[63] Shareholder Information - As of June 30, 2020, the total shareholding of Mr. Zhuang Junyue and Mr. Zhuang Weijiao is 275,000,000 shares, representing 56.4% of the issued share capital[96] - Mr. Zhuang Junyue holds 103,000,000 shares directly and has an additional 172,000,000 shares through a concert party agreement[96] - Mr. Zhuang Weijiao holds 103,000,000 shares directly and has 34,500,000 shares through his spouse, totaling 137,500,000 shares[98] - Ms. Du Yanbing, as a concert party, is considered to hold 275,000,000 shares, which is 56.4% of the issued share capital[101] Compliance and Governance - The company has adopted the GEM Listing Rules as the code of conduct for securities trading by directors[103] - All directors have confirmed compliance with the required trading standards during the reporting period[103] - The audit committee, consisting of three independent non-executive directors, reviewed the interim report for the six months ended June 30, 2020, and confirmed its compliance with applicable accounting standards and GEM listing rules[104] - The board has reviewed the corporate governance practices and believes the company has complied with the corporate governance code as per GEM listing rules[108]

Financial Performance - The group's revenue increased from approximately HKD 21,988,000 for the three months ended March 31, 2019, to approximately HKD 26,634,000 for the three months ended March 31, 2020, representing an increase of about HKD 4,646,000 or 21.1%[8] - Gross profit rose from approximately HKD 1,200,000 for the three months ended March 31, 2019, to approximately HKD 6,136,000 for the three months ended March 31, 2020, an increase of about HKD 4,936,000, with a gross margin of approximately 23.0%[9] - The net profit attributable to the owners of the company for the three months ended March 31, 2020, was approximately HKD 17,000, compared to a net loss of approximately HKD 4,171,000 for the same period in 2019[9] - The company reported a pre-tax profit of HKD 240,000 for the three months ended March 31, 2020, compared to a pre-tax loss of HKD 4,724,000 for the same period in 2019[11] - The company recorded a profit of HKD 21,000 for the three months ended March 31, 2020, compared to a loss of HKD 4,171,000 for the same period in 2019, indicating a significant turnaround[12] - Total comprehensive expenses for the period were HKD 4,000, compared to HKD 4,171,000 in the previous year, reflecting a reduction in expenses[12] Expenses and Costs - Administrative expenses for the three months ended March 31, 2020, were approximately HKD 5,903,000, slightly down from HKD 5,930,000 for the same period in 2019[11] - The financing costs increased from HKD 28,000 in the previous year to HKD 46,000 in the current reporting period[11] - The company incurred employee benefits expenses of HKD 15,189,000 for the three months ended March 31, 2020, an increase from HKD 12,879,000 in the same period of 2019, representing a rise of approximately 17.99%[26] - Depreciation expenses for owned properties, machinery, and equipment were HKD 1,176,000, slightly down from HKD 1,227,000 in the previous year[26] Project and Operational Updates - The company experienced project delays due to the COVID-19 outbreak, affecting the progress and completion percentage of construction projects[8] - The company aims to enhance its project profitability through higher-margin tunnel construction projects[9] - The total contract amount obtained during the reporting period was approximately HKD 30,447,000 for public sector projects and HKD 360,000 for private sector projects[34] - The company has submitted several tenders to main contractors, with results pending announcement[33] - The company is focusing on developing its tunnel construction services, which are expected to be a major growth driver and sustainable revenue source[39] - The company is assessing opportunities in the underground construction industry and exploring profitable areas for business expansion[33] - The company has been actively involved in public sector infrastructure projects, primarily serving main contractors for the Hong Kong government[33] Shareholder Information - As of March 31, 2020, the total shareholding of Mr. Zhuang Junyue and Mr. Zhuang Weijiao is 275,000,000 shares, representing 56.4% of the issued share capital[60] - Mr. Zhuang Junyue holds 103,000,000 shares directly and has an interest in 172,000,000 shares through concerted action agreements[60] - Mr. Zhuang Weijiao holds 103,000,000 shares directly and has an interest in 34,500,000 shares through his spouse[62] - Ms. Du Yanbing and Ms. Zhuang Roujia also collectively hold 275,000,000 shares, representing 56.4% of the issued share capital[65] - Mr. Wu Guolun holds 37,500,000 shares, representing 7.7% of the issued share capital[65] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the first quarter report for the period ending March 31, 2020[67] - No competitive interests were reported by the directors or their associates in businesses that may compete with the group as of March 31, 2020[68] - The company has extended its compliance advisory agreement with Haode Financing Limited until March 31, 2020[69] - The executive directors of the company include Mr. Zhuang Junyue and Mr. Zhuang Weijia[69] - The independent non-executive directors consist of Mr. Lin Wenbin, Mr. Liu Junhui, and Engineer Wu Huiming[69] Market Outlook - The expected average annual capital expenditure for infrastructure projects by the Hong Kong government is projected to reach HKD 100,000,000,000[39] - The total output of the construction industry in Hong Kong is anticipated to increase to approximately HKD 300,000,000,000 in the coming years[39] - The construction contract for the T2 trunk road and Cha Kwo Ling Tunnel, approved for HKD 16,000,000,000, will connect the Central Kowloon Route and Tseung Kwan O–Lam Tin Tunnel[40] Other Financial Metrics - The company’s earnings per share for the three months ended March 31, 2020, was less than 0.1 HKD cents, compared to a loss of 0.8 HKD cents per share in the previous year[11] - Other comprehensive income included a foreign exchange loss of HKD 4,000 for the reporting period[11] - The deferred tax expense for the period was HKD 220,000, compared to a tax credit of HKD 553,000 in the previous year, indicating a shift in tax position[27] - The basic earnings per share for the three months ended March 31, 2020, was HKD 0.000043, compared to a loss of HKD 8.43 per share in the same period of 2019[29] - The company did not declare any dividends for the three months ended March 31, 2020, consistent with the previous year[28] - The company did not recommend any dividend payment for the three months ended March 31, 2020[54] Significant Events - There were no significant events after March 31, 2020, that could severely impact the company's operations and financial performance[57]

Financial Performance - The group's revenue for the year ended December 31, 2019, was approximately HKD 80,793,000, a decrease of about HKD 59,838,000 or 42.5% compared to HKD 140,631,000 in 2018[13]. - The group recorded a gross loss of approximately HKD 5,779,000 and a gross loss margin of 7.2% for the year ended December 31, 2019, compared to a gross profit of approximately HKD 13,050,000 and a gross profit margin of 9.3% for the year ended December 31, 2018[15]. - The net loss attributable to the company's owners increased from approximately HKD 9,859,000 for the year ended December 31, 2018, to approximately HKD 28,217,000 for the year ended December 31, 2019, an increase of approximately HKD 18,358,000[15]. - Revenue for the year ended December 31, 2019, was HKD 80,793,000, a decrease from HKD 140,631,000 in 2018[19]. - Revenue from public sector projects, specifically tunnel construction services, dropped from approximately HKD 61,075,000 in 2018 to about HKD 29,035,000 in 2019[39]. - The group's total assets decreased to HKD 70,678,000 in 2019 from HKD 88,760,000 in 2018, while total liabilities increased to HKD 18,337,000 from HKD 7,125,000[19]. Project Acquisition and Backlog - The group secured 16 public construction projects and 4 private sector projects in 2019, with a total contract value of approximately HKD 307,026,000[11]. - The estimated revenue from backlog projects as of December 31, 2019, was approximately HKD 283,179,000[11]. - The backlog from projects carried over from 2018 was approximately HKD 5,028,000[11]. - The backlog of projects after the reporting period was approximately HKD 278,151,000, with HKD 283,179,000 expected to be recognized as revenue after December 31, 2019[24]. - The group participated in 22 public sector projects in 2019, up from 19 in 2018, and initiated 15 new public sector projects, compared to 10 in the previous year[26]. Market Conditions and Competition - The group faced increased competition in the construction industry, impacting revenue and gross margin due to the completion of several major infrastructure projects[12]. - The group anticipates continued demand for tunnel construction services in Hong Kong, driven by major infrastructure projects such as the Tseung Kwan O-Lam Tin Tunnel and the Central Kowloon Route[16]. - The group's performance is heavily influenced by the availability of public sector civil engineering projects in Hong Kong, which are subject to government policies and economic conditions[31]. - Recent social events in Hong Kong are expected to impact the government's infrastructure funding processes, potentially affecting the group's financial performance in 2020[36]. Strategic Initiatives - The group signed an agreement on December 11, 2019, to acquire a short film and a feature film, indicating a strategic move into media production[12]. - The group aims to actively bid for existing non-public tunnel construction projects to mitigate the impact of reduced public sector project availability[13]. - The group is focused on expanding its service offerings in the construction sector despite market challenges[12]. - The group plans to continue exploring opportunities in other areas of the construction industry to diversify its operations[23]. - The group has been focusing on developing a comprehensive suite of tunnel construction services since 2014, establishing a solid foundation for growth[23]. Corporate Governance - The group is committed to ensuring the accuracy and completeness of its financial reporting as per GEM listing rules[4]. - The company aims to maintain high standards of corporate governance to enhance transparency and accountability, ensuring maximum benefits for shareholders while considering other stakeholders' interests[91]. - 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[92]. - The board consists of two executive directors and three independent non-executive directors, ensuring a strong independent element in decision-making[96]. - The company has established a framework for assessing the independence of independent non-executive directors[113]. Employee and Operational Metrics - The total employee cost, including service costs and administrative expenses, was approximately HKD 49,661,000, a decrease from HKD 71,385,000 in 2018, primarily due to a reduction in administrative staff and a decrease in service costs[68]. - As of December 31, 2019, the group had 322 employees, an increase from 149 employees in 2018, reflecting a rise in workforce due to increased labor needs in Q4 2019[68]. - The group hired one engineer, two experienced supervisors, and ten trained tunnel construction workers, with project acquisition amounting to approximately HKD 307,026,000, and backlog projects confirmed as revenue of about HKD 278,151,000 as of December 31, 2019[73]. Shareholder Information - The total revenue from the top five customers for the year ended December 31, 2019, was approximately HKD 59,136,000, accounting for about 73.2% of the total revenue, down from 98.6% in 2018[199]. - Major shareholders, including Mr. Zhuang Junyue and Mr. Zhuang Weijiao, collectively hold 275,000,000 shares, representing 56.4% of the issued share capital[195]. - The independent non-executive directors confirmed compliance with the non-competition agreement by the major shareholders as of the report date[196]. - The company has established a concert party agreement among major shareholders to vote in unison at shareholder meetings[197].

Financial Performance - The group's revenue decreased from approximately HKD 116,732,000 for the nine months ended September 30, 2018, to approximately HKD 50,623,000 for the same period in 2019, representing a decline of about HKD 66,109,000 or 56.6%[10] - The group recorded a gross loss of approximately HKD 3,408,000 and a gross loss margin of 6.7% for the nine months ended September 30, 2019, compared to a gross profit of approximately HKD 14,108,000 and a gross profit margin of 12.1% for the same period in 2018[11] - The net loss attributable to the owners of the company for the nine months ended September 30, 2019, was approximately HKD 19,299,000, an increase from approximately HKD 2,421,000 for the same period in 2018[11] - Revenue for the nine months ended September 30, 2019, was HKD 50,623,000, a decrease of 56.6% compared to HKD 116,732,000 for the same period in 2018[15] - The gross loss for the nine months ended September 30, 2019, was HKD 3,408,000, compared to a gross profit of HKD 14,108,000 in the same period of 2018[15] - The loss attributable to owners of the company for the nine months ended September 30, 2019, was HKD 19,299,000, significantly higher than the loss of HKD 2,421,000 for the same period in 2018[15] - Basic and diluted loss per share for the nine months ended September 30, 2019, was HKD 3.9, compared to HKD 0.5 for the same period in 2018[15] - The total equity attributable to owners of the company as of September 30, 2019, was HKD 60,863,000, down from HKD 89,375,000 as of September 30, 2018[17] Project and Contract Information - The board announced that the group secured nine projects during the reporting period, with a total contract value of approximately HKD 115,336,000[13] - Approximately HKD 106,358,000 of the remaining contract value is expected to be recognized after September 30, 2019[13] - The group participated in 14 public sector projects and 9 private sector projects as of September 30, 2019, compared to 14 public sector projects and no private sector projects in the same period of 2018[56] - The new contracts obtained during the reporting period amounted to approximately HKD 115,336,000, with a remaining contract value of about HKD 106,358,000 to be confirmed after September 30, 2019[56] Market Conditions and Outlook - The demand for tunnel construction services in Hong Kong is expected to continue, supported by several large-scale infrastructure projects[13] - Recent social events and a slowdown in the construction industry in Hong Kong are anticipated to cause delays in several public infrastructure projects[13] - The board expects that the weak construction industry will continue to impact the group's revenue sources and financial performance for the year ending December 31, 2019[13] - The overall construction market competition has intensified, affecting the group's revenue and gross margin during the reporting period[13] - The group is optimistic about recognizing the remaining contract amounts once the construction activity rebounds[13] - The group has been affected by limited new construction projects and increased competition in the construction industry, impacting its gross profit margin[65] - The performance of the group is heavily dependent on the availability of public sector civil engineering projects in Hong Kong, which may be influenced by political and economic factors[58] Administrative and Operational Expenses - Administrative expenses for the nine months ended September 30, 2019, were HKD 16,430,000, slightly lower than HKD 16,804,000 for the same period in 2018[15] - The company reported a financing cost of HKD 103,000 for the nine months ended September 30, 2019, compared to HKD 54,000 in the same period of 2018[15] - The service costs for the nine months ended September 30, 2019, decreased to approximately HKD 54,031,000 from HKD 102,624,000 for the same period in 2018, a reduction of about HKD 48,593,000 or 47.4%[69] Shareholder Information - As of September 30, 2019, the total beneficial ownership of shares by Mr. Zhuang Junyue and Mr. Zhuang Weijiao is 275,000,000 shares, representing 56.4% of the issued share capital[95] - Mr. Zhuang Junyue personally holds 103,000,000 shares and has a deemed interest in 172,000,000 shares through a concert party agreement[95] - Mr. Zhuang Weijiao personally holds 103,000,000 shares and has a deemed interest in 34,500,000 shares through his spouse[98] - Ms. Du Yanbing holds a total of 275,000,000 shares, which includes her personal holding of 34,500,000 shares, representing 56.4% of the issued share capital[99] - The total beneficial ownership of shares by Ms. Zhuang Roujia is also 275,000,000 shares, representing 56.4% of the issued share capital[99] Corporate Governance - The audit committee consists of three independent non-executive directors, with Liu Junhui as the chairman, ensuring compliance with GEM listing rules[101] - No shares of the company were purchased, redeemed, or sold by the company or its subsidiaries during the reporting period[102] - The company has not noted any other individuals with recorded interests in shares or related securities as per the Securities and Futures Ordinance[100] Future Plans and Investments - The group plans to upgrade its IT and project management systems, allocating HKD 1.3 million for this purpose[89] - The company established a new subsidiary, Hongda Construction Limited, on October 16, 2019, with a 60% equity interest, focusing on general construction services in Hong Kong[53] - The company has not reported any significant contingent liabilities apart from the performance guarantees[85]