Financial Performance - The group's revenue decreased from approximately HKD 443,548,000 for the year ended December 31, 2021, to approximately HKD 440,528,000 for the year ended December 31, 2022, a decline of about HKD 3,020,000 or 0.7%[10] - The group's gross profit and gross profit margin for the year ended December 31, 2022, were approximately HKD 13,927,000 and 3.2%, respectively, compared to approximately HKD 32,373,000 and 7.3% for the previous year[10] - The net profit attributable to the owners of the company for the year ended December 31, 2022, was approximately HKD 5,804,000, down from approximately HKD 10,451,000 in the previous year[10] - The group's revenue for the year ended December 31, 2022, was HKD 440,528,000, a slight decrease of 0.23% compared to HKD 443,548,000 in 2021[17] - The net profit for the year was HKD 5,804,000, down from HKD 10,451,000 in the previous year, representing a decline of 44.4%[17] - The group's gross profit for the year was approximately HKD 13,927,000, with a gross margin of 3.2%, down from HKD 32,373,000 and 7.3% in the previous year[35] - Other income for the year was approximately HKD 17,251,000, significantly up from HKD 4,319,000 in the previous year, primarily due to government grants[36] Project and Contract Activity - The group secured a total of 17 public construction projects and five private sector projects during the reporting period, with a total contract value of approximately HKD 927,513,000 and change orders of approximately HKD 4,471,000[8] - The group participated in 43 public sector projects and six private sector projects during the reporting period, an increase from 35 public sector projects and three private sector projects in the previous year[9] - The backlog of new contracts confirmed for revenue after the reporting period is approximately HKD 985,703,000[9] - The group has been awarded contracts for infrastructure construction projects in Tung Chung East, totaling approximately HKD 711,377,000, with construction expected to be completed by 2025[8] - The group has been awarded several construction contracts related to major infrastructure projects, including the Central Kowloon Route and the three-runway system at Hong Kong International Airport[29] - The group anticipates continued demand for tunnel construction services due to ongoing projects such as the Central Kowloon Route and the three-runway system at Hong Kong International Airport[14] - The group is one of the few selected subcontractors in Hong Kong with extensive experience in tunnel construction, positioning itself to capitalize on upcoming public infrastructure projects[14] Cost and Expense Management - Revenue from public sector tunnel construction services decreased from approximately HKD 229,986,000 to HKD 223,521,000, a decline of about HKD 6,465,000 or 2.8%[32] - The group's service costs increased from approximately HKD 411,175,000 to HKD 426,601,000, an increase of about HKD 15,426,000 or 3.8%[34] - Employee costs rose significantly from approximately HKD 189,766,000 to HKD 233,673,000, an increase of about HKD 43,907,000 or 23.1%[34] - Total employee costs, including service costs and administrative expenses, were approximately HKD 246,230,000 for the year ended December 31, 2022, up from approximately HKD 200,728,000 in 2021[57] Corporate Governance - The company has adopted and complied with the corporate governance code since its listing date on February 22, 2017[78] - The company believes that maintaining high standards of corporate governance is crucial for its sustainable development[79] - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[77] - The company has a dedicated financial management and company secretarial team to oversee accounting and compliance matters[73] - The company has been actively reviewing and enhancing its corporate governance practices to meet legal requirements[79] - The company has adhered to the corporate governance code as of December 31, 2022[80] - The company has adopted the trading standards as per GEM Listing Rules 5.48 to 5.67, confirming full compliance by all directors for the year ending December 31, 2022[86] - The board is responsible for overall development, strategic planning, and monitoring business performance, ensuring a balanced assessment of the company's status and prospects[88] - The company has appointed three independent non-executive directors, constituting over one-third of the board, ensuring strong independent elements in decision-making[94] - The audit committee held five meetings during the year ending December 31, 2022, to oversee financial reporting and internal controls[100] - The company has established a corporate governance framework, reviewing its effectiveness annually, with the last review conducted for the year ending December 31, 2022[96] - The board has not appointed a CEO, with the chairman overseeing daily operations and strategic decisions[90] - The company has implemented a code of conduct for directors regarding securities trading, ensuring adherence to ethical standards[86] - The audit committee is composed entirely of independent non-executive directors, with the chairman holding appropriate professional qualifications[99] - The company has a responsibility insurance policy for directors and senior officers against legal claims[89] - The board will continue to review the corporate governance structure and consider the appointment of a CEO in line with business objectives[91] Shareholding and Ownership Structure - As of December 31, 2022, 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[182] - Mr. Wu Guolun holds 39,500,000 shares, which accounts for 8.1% of the company's issued share capital[185] - The controlling shareholders have entered into a non-competition agreement, ensuring they do not engage in any competing business directly or indirectly[186] - The independent non-executive directors have confirmed compliance with the non-competition agreement by the controlling shareholders as of the date of the annual report[187] - The company has a total of 290,120,000 shares held collectively by the family members of the controlling shareholders, indicating a strong family influence in ownership[185] - The shareholding structure shows a significant concentration of ownership among a few individuals, which may impact corporate governance and decision-making[184] - The family members involved in the shareholding include Mr. Zhuang Junyue, Mr. Zhuang Weijiao, Ms. Du Yanbing, and Ms. Zhuang Roujia, indicating a close-knit ownership structure[184] - The company has established a clear governance framework to manage potential conflicts of interest among its major shareholders[186] Risk Management and Internal Controls - The board is responsible for maintaining a sound and effective risk management and internal control system to protect shareholders' interests[143] - The company has engaged an independent internal audit consultant to review the effectiveness of its risk management and internal control systems[144] Employee and Workforce Information - The group had 542 employees in Hong Kong as of December 31, 2022, a decrease from 913 employees in 2021[57] - 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[178] Dividend Policy - The board did not recommend any dividend payment for the year ended December 31, 2022[44] - The company aims to balance sufficient capital for business development and shareholder returns when determining the dividend payout ratio[152] - The company has established a dividend policy to ensure a balance between business growth and shareholder returns[152] Audit and Financial Reporting - The consolidated financial statements for the year ended December 31, 2022, were audited by Hong Kong Lixin Dehao CPA Limited[198] - The company plans to propose the reappointment of its auditor at the annual general meeting[198] - The company has not experienced any changes in auditors since its incorporation[199] - The company reviewed the audited financial statements for the year ended December 31, 2022, and discussed the corresponding audit plan and auditor's remuneration[101] - The company conducted a review of the unaudited financial statements for the three months ended March 31, 2022, six months ended June 30, 2022, and nine months ended September 30, 2022[101] Other Information - There have been no significant events requiring disclosure from December 31, 2022, to the date of this report[193] - The company has not reported any changes in its capital structure during the year ended December 31, 2022[159] - The company has not engaged in any related party transactions that constitute disclosable connected transactions under GEM Listing Rules[176] - The company has not entered into any significant contracts related to its business during the year ended December 31, 2022[171] - There were no purchases, redemptions, or sales of the company's listed securities during the reporting period[162] - The company has not reported any interests in physical settlement, cash settlement, or other equity derivatives related to shares as of December 31, 2022[182]

（於開曼群島註冊成立之有限公司） 8188 （股份代號： ） 截至二零二二年十二月三十一日止年度 年度業績公佈 GEM 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公 司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周 詳的考慮後方作出投資決定。 GEM GEM 由於 上市公司普遍為中小型公司，在 買賣的證券可能會較於主板買賣之證券承受 GEM 較大的市場波動風險，同時無法保證在 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公佈之內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不就因本公佈之全部或任何部分內容而產生或因倚賴該等內容而 引致之任何損失承擔任何責任。 本公佈（駿傑集團控股有限公司（「本公司」）各董事（「董事」）共同及個別對此負全責）乃遵照聯 GEM GEM 交所的 證券上市規則（「 上市規則」）的規定而提供有關本公司的資料。董事經作出一 切合理查詢後確認，就彼等所深知及確信，本公佈所載資料在各重要方面均屬準確及完整，且 無誤導或欺詐成分；及並無遺 ...

Revenue and Profitability - The group's revenue increased from approximately HKD 279,589,000 for the nine months ended September 30, 2021, to approximately HKD 319,053,000 for the same period in 2022, representing a growth of about HKD 39,464,000 or 14.1%[9] - The net profit attributable to the owners of the company for the nine months ended September 30, 2022, was approximately HKD 16,257,000, an increase from approximately HKD 12,981,000 for the same period in 2021[10] - The company reported a basic and diluted earnings per share of HKD 3.3 for the nine months ended September 30, 2022, compared to HKD 2.7 for the same period in 2021[12] - The increase in net profit was primarily due to the rise in revenue during the reporting period[10] - The company’s total comprehensive income for the period was approximately HKD 16,255,000, compared to HKD 12,979,000 for the same period in 2021[12] - For the nine months ended September 30, 2022, the group reported a profit attributable to ordinary equity holders of HKD 16,257,000, compared to HKD 12,981,000 for the same period in 2021, representing a year-on-year increase of approximately 25.5%[34] Gross Profit and Margins - The gross profit for the nine months ended September 30, 2022, was approximately HKD 17,721,000, with a gross margin of 5.6%, compared to a gross profit of approximately HKD 28,868,000 and a gross margin of 10.3% for the same period in 2021[9] - The company experienced a decline in gross margin due to pending final accounts and change orders for several construction projects[9] - Revenue from public sector tunnel construction services rose to approximately HKD 164,771,000, an increase of HKD 13,109,000 or 8.6% compared to HKD 151,662,000 in the previous year[53] - Revenue from public sector utility construction services increased to approximately HKD 149,488,000, up by HKD 24,466,000 or 19.6% from HKD 125,022,000 in the same period of 2021[53] Expenses and Costs - Administrative expenses for the nine months ended September 30, 2022, were approximately HKD 18,243,000, compared to HKD 16,901,000 for the same period in 2021[12] - The profit before tax for the nine months ended September 30, 2022, was impacted by employee benefits expenses amounting to HKD 190,846,000, compared to HKD 123,104,000 in the previous year, reflecting a 55% increase[30] - The cost of subcontracting for the nine months ended September 30, 2022, was HKD 29,444,000, down from HKD 36,517,000 in the same period of 2021, indicating a 19% reduction[30] - The company reported a decrease in construction material costs, with expenses of HKD 48,416,000 for the nine months ended September 30, 2022, down from HKD 74,732,000 in the previous year, representing a 35% decrease[30] - Employee costs increased significantly by HKD 66,739,000 or 57.7%, rising from approximately HKD 115,573,000 to HKD 182,312,000[55] Government Grants and Other Income - Other income for the nine months ended September 30, 2022, totaled HKD 17,177,000, a substantial increase from HKD 3,594,000 in the same period of 2021, primarily driven by government grants[28] - The company received government grants of HKD 14,546,000 under the Employment Support Scheme, which was utilized to support employee salaries[28] Construction Projects and Contracts - The company is currently engaged in construction projects, including the Tseung Kwan O-Lam Tin Tunnel and the Central Kowloon Route, which contributed to the revenue growth[9] - The group secured 14 public construction projects and four private sector projects, with a total contract value of approximately HKD 896,406,000 and HKD 3,746,000, respectively, during the nine months ended September 30, 2022[44] - The group received two infrastructure construction contracts in Tung Chung East on August 19, 2022, with a total contract value of approximately HKD 711 million, expected to be completed by the end of 2025[44] - The total amount of new contracts confirmed as revenue after September 30, 2022, and backlog transferred from 2021 is approximately HKD 1,047,128,000[45] Financial Position and Compliance - The company’s financial position remains stable, with total equity attributable to owners of the company at approximately HKD 79,661,000 as of September 30, 2022[14] - The effective tax rate for Hong Kong profits tax was calculated at 16.5% for the nine months ended September 30, 2022, consistent with the previous year[31] - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[18] - The company has maintained compliance with the GEM Listing Rules and corporate governance codes since its listing on February 22, 2017[76] Shareholder Information - As of September 30, 2022, major shareholders Du Yanbing and Zhuang Roujia each hold 290,120,000 shares, representing 59.5% of the company's issued share capital[74] - Wu Guolun holds 39,500,000 shares, accounting for 8.1% of the company's issued share capital[74] Dividends and Share Options - The group did not recommend any dividend payment for the nine months ended September 30, 2022, consistent with the previous year[32] - No share options have been granted or issued by the company as of September 30, 2022[81] Risks and Events - The group did not face significant foreign currency risks as all transactions were denominated in HKD[66] - There were no significant events after the reporting period that could materially affect the group's operations and financial performance[68]

Revenue Growth - The group's revenue increased from approximately HKD 124,498,000 for the six months ended June 30, 2021, to approximately HKD 215,796,000 for the six months ended June 30, 2022, representing a growth of 73.3%[8] - Revenue from public sector projects, specifically tunnel construction services, rose from approximately HKD 50,301,000 to approximately HKD 105,488,000 during the same period[8] - Revenue from public utility construction services and others increased by approximately 48.8%, from HKD 71,292,000 to HKD 106,112,000[80] - Customer B contributed HKD 31,661,000 in revenue for the three months ended June 30, 2022, compared to HKD 17,374,000 in the same period of 2021, representing an increase of 82.5%[31] - Government grants received amounted to HKD 6,116,000 for the six months ended June 30, 2022, compared to HKD 2,541,000 in the same period of 2021, reflecting a growth of 141.5%[34] - Total revenue from other income for the six months ended June 30, 2022, was HKD 8,552,000, compared to HKD 2,847,000 in the same period of 2021, marking an increase of 200.5%[34] Profitability - The group's gross profit for the six months ended June 30, 2022, was approximately HKD 17,179,000, with a gross margin of 8.0%, down from 12.9% in the previous year[9] - The net profit attributable to the owners of the company for the six months ended June 30, 2022, was approximately HKD 13,436,000, compared to HKD 6,233,000 for the same period in 2021[9] - The net profit for the six months ended June 30, 2022, was HKD 13,436,000, up from HKD 6,233,000 for the same period in 2021, indicating a significant increase of approximately 115.5%[16] - The profit before tax for the six months ended June 30, 2022, was HKD 13,436,000, up from HKD 6,233,000 in the same period of 2021, indicating a year-on-year increase of 115.4%[41] Financial Position - Total assets as of June 30, 2022, were approximately HKD 162,352,000, compared to HKD 130,790,000 as of December 31, 2021[13] - The group's current assets net worth increased to HKD 63,689,000 as of June 30, 2022, from HKD 47,372,000 at the end of the previous year[13] - The total equity attributable to the company's owners increased to HKD 76,840,000 as of June 30, 2022, compared to HKD 63,404,000 as of June 30, 2021, representing a growth of approximately 21.2%[14] - The company's total liabilities decreased from HKD 83,418,000 to HKD 98,663,000, indicating a shift in financial structure[13] - The total debt-to-equity ratio increased from approximately 103.7% as of December 31, 2021, to about 110.0% as of June 30, 2022, due to an increase in total debt during the reporting period[96] Cash Flow - Cash generated from operating activities showed a net outflow of HKD 21,728,000 for the six months ended June 30, 2022, compared to a net inflow of HKD 3,219,000 in the previous year[18] - The company reported a decrease in cash and cash equivalents at the end of the period, totaling HKD 12,584,000, compared to HKD 1,686,000 at the end of June 30, 2021[20] - As of June 30, 2022, the group's cash and cash equivalents amounted to approximately HKD 12,584,000, up from HKD 5,430,000 as of December 31, 2021, attributed to increased cash flow from financing activities[95] Operational Efficiency - The group is focused on enhancing its operational efficiency and exploring new market opportunities to sustain growth in the future[9] - The company is actively involved in construction projects, including the Tseung Kwan O-Lam Tin Tunnel and the Sha Ling Organic Resource Recovery Centre, contributing to revenue growth[8] - The company expects to maintain its focus on contract assets and revenue recognition in line with completed projects, ensuring cash flow stability[43] Employee Costs - Employee benefits expenses, including directors' remuneration, totaled HKD 129,535,000 for the six months ended June 30, 2022, compared to HKD 53,953,000 in the same period of 2021, reflecting an increase of 140%[37] - The total employee cost for the six months ended June 30, 2022, was approximately HKD 129,535,000, compared to HKD 53,953,000 for the same period in 2021, mainly due to an increase in the number of employees[105] Market Position - The group has been focusing on developing a comprehensive suite of tunneling services since 2014, establishing a solid foundation for growth[71] - The group is exploring opportunities for diversification in the construction industry, including earthworks and bridge projects, in response to current market conditions[71] - The group's performance is heavily reliant on public sector civil engineering projects in Hong Kong, which are subject to government policies and economic conditions[73] - 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[77] Shareholder Information - As of June 30, 2022, major shareholders Du Yanbing and Zhuang Roujia each hold 290,120,000 shares, representing 59.5% of the company's issued share capital[113] - Wu Guolun holds 39,500,000 shares, accounting for 8.1% of the company's issued share capital[113] - No directors or senior management held any interests in the company's shares or related securities as of June 30, 2022[111] Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM Listing Rules since its listing date on February 22, 2017[116] - The audit committee, consisting of three independent non-executive directors, reviewed the interim report for the six months ended June 30, 2022, confirming compliance with applicable accounting standards[119]

Revenue Growth - The group's revenue increased from approximately HKD 124,498,000 for the six months ended June 30, 2021, to approximately HKD 215,796,000 for the six months ended June 30, 2022, representing a growth of 73.3%[8] - Revenue from public sector projects, specifically tunnel construction services, rose from approximately HKD 50,301,000 to approximately HKD 105,488,000 during the same period[8] - Revenue from public utility construction services and others increased by approximately 48.8%, from HKD 71,292,000 to HKD 106,112,000[80] - Customer B contributed HKD 31,661,000 in revenue for the three months ended June 30, 2022, compared to HKD 17,374,000 in the same period of 2021, representing an increase of 82.5%[31] - Total other income for the six months ended June 30, 2022, was HKD 8,552,000, significantly up from HKD 2,847,000 in the same period of 2021, marking an increase of 200.5%[34] Profitability - The group's gross profit for the six months ended June 30, 2022, was approximately HKD 17,179,000, with a gross margin of 8.0%, down from 12.9% in the previous year[9] - The net profit attributable to the owners of the company for the six months ended June 30, 2022, was approximately HKD 13,436,000, compared to HKD 6,233,000 for the same period in 2021[9] - The net profit for the six months ended June 30, 2022, was HKD 13,436,000, up from HKD 6,233,000 for the same period in 2021, indicating a significant increase of approximately 115.5%[16] - Profit before tax for the six months ended June 30, 2022, was HKD 13,436,000, compared to HKD 6,233,000 for the same period in 2021, reflecting a growth of 115.4%[41] Expenses and Costs - The group's administrative expenses rose from HKD 11,447,000 to HKD 12,115,000 year-on-year[11] - The company reported a significant increase in subcontracting costs, which rose to HKD 18,062,000 for the six months ended June 30, 2022, from HKD 11,029,000 in the previous year, an increase of 63.7%[37] - Service costs rose to approximately HKD 198,617,000, an increase of 83.1% from HKD 108,482,000, primarily due to a 153.6% rise in employee costs[83] - Employee benefits expenses, including directors' remuneration, totaled HKD 129,535,000 for the six months ended June 30, 2022, compared to HKD 53,953,000 in the previous year, an increase of 140.0%[37] Assets and Liabilities - Total assets less current liabilities amounted to HKD 78,128,000 as of June 30, 2022, compared to HKD 64,931,000 as of December 31, 2021[13] - The group's cash and cash equivalents increased from HKD 5,430,000 to HKD 12,584,000 during the reporting period[13] - The group’s current assets net worth improved from HKD 47,372,000 to HKD 63,689,000[13] - The total debt increased, resulting in a capital-to-debt ratio rising from approximately 103.7% as of December 31, 2021, to about 110.0% as of June 30, 2022[96] - Trade receivables amounted to HKD 75,207,000 as of June 30, 2022, compared to HKD 85,444,000 as of December 31, 2021[49] Cash Flow - Cash generated from operating activities showed a net outflow of HKD 21,728,000 for the six months ended June 30, 2022, compared to a net inflow of HKD 3,219,000 in the previous year[18] - The company incurred a total financing cash outflow of HKD 29,349,000 for the six months ended June 30, 2022, compared to an outflow of HKD 4,272,000 in the previous year[20] - As of June 30, 2022, the group's cash and cash equivalents amounted to approximately HKD 12,584,000, up from HKD 5,430,000 as of December 31, 2021, attributed to increased cash flow from financing activities[95] Shareholder Information - As of June 30, 2022, major shareholder Du Yanbing holds a total of 290,120,000 shares, representing 59.5% of the issued share capital[113] - Wu Guolun holds 39,500,000 shares, accounting for 8.1% of the issued share capital[113] - The total issued and paid-up share capital remains at HKD 4,878,000 as of June 30, 2022[60] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the interim report for the six months ended June 30, 2022, confirming compliance with applicable accounting standards[119] - The company maintains high standards of corporate governance, adhering to the GEM Listing Rules and the corporate governance code since its listing date[116] - The company has established a written terms of reference for the audit committee in accordance with GEM Listing Rules[119] Future Outlook - 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 reach approximately HKD 300 billion per year[77] - The group anticipates that tunnel construction services will become a primary growth driver and a sustainable source of revenue in the long term[76] - The group continues to explore opportunities for diversification in the construction industry beyond tunnel engineering[71]

Financial Performance - The group's revenue increased from approximately HKD 50,264,000 for the three months ended March 31, 2021, to approximately HKD 101,291,000 for the three months ended March 31, 2022, representing an increase of approximately HKD 51,027,000 or 101.5%[7] - Gross profit rose from approximately HKD 6,795,000 to approximately HKD 8,697,000, an increase of approximately HKD 1,902,000 or 28.0%[7] - The net profit attributable to the owners of the company was approximately HKD 3,396,000 for the three months ended March 31, 2022, compared to approximately HKD 3,068,000 for the same period in 2021[8] - Basic and diluted earnings per share increased to HKD 0.70 for the three months ended March 31, 2022, from HKD 0.63 for the same period in 2021[10] - The total comprehensive income for the period was approximately HKD 3,395,000, compared to HKD 3,067,000 for the same period in the previous year[10] Cost Management - Administrative expenses decreased from HKD 6,148,000 to HKD 5,414,000, indicating improved cost management[10] - Financing costs increased from HKD 49,000 to HKD 221,000, reflecting higher borrowing costs during the reporting period[10] - Subcontracting costs increased to HKD 8,123,000 from HKD 5,449,000 year-over-year, indicating rising operational costs[28] - Service costs rose from approximately HKD 43,469,000 to approximately HKD 92,594,000, an increase of approximately HKD 49,125,000 or 113.0%, primarily due to employee costs increasing by 199.8%[47] Revenue Sources and Client Dependence - The increase in revenue and gross profit was primarily due to ongoing construction projects, including the Tseung Kwan O-Lam Tin Tunnel and the organic resources recovery center in Sha Ling[7] - Major clients contributing over 10% of revenue included Client S with HKD 29,935,000, Client B with HKD 19,242,000, and Client L with HKD 19,242,000, indicating significant reliance on a few key customers[23] Challenges and Risks - The company continues to face challenges due to the impact of the fifth wave of COVID-19, affecting project orders and final accounts[7] - The construction progress was impacted by the fifth wave of COVID-19, leading to delays in project certification and a reduction in available workforce[40] - The company is exploring diversification opportunities within the construction industry to mitigate risks associated with public sector project availability[36] Operational Focus and Strategy - The company has not reported any new product developments or market expansions during this period, focusing instead on existing operations[21] - There were no acquisitions or significant strategic changes mentioned in the earnings report, indicating a stable operational strategy[21] - The company secured a total of 94,188,000 HKD in new public sector contracts and 1,148,000 HKD in change orders during the three months ended March 31, 2022[36] - As of March 31, 2022, the company participated in 34 public sector projects and two private sector projects, with a backlog of approximately 324,353,000 HKD[36] - The company has focused on developing a comprehensive suite of tunnel construction services since 2014, enhancing its competitive advantage in contract bidding[36] - The company is one of the few selected subcontractors for major public infrastructure projects, including the Central Kowloon Route and the three-runway system at Hong Kong International Airport[42] - The company anticipates sustained demand for tunnel construction services driven by ongoing major infrastructure projects in Hong Kong[42] Corporate Governance - The company has maintained high standards of corporate governance since its listing on the GEM on February 22, 2017, and has adopted the corporate governance code[71] - The audit committee, consisting of three independent non-executive directors, reviewed the first quarter report for the period ending March 31, 2022, confirming compliance with applicable accounting standards and GEM listing rules[68] - The company will continue to review and enhance its corporate governance practices to comply with legal requirements[72] - The company has complied with the corporate governance code during the reporting period[73] Shareholder Information - As of March 31, 2022, major shareholders Du Yanbing and Zhuang Roujia each hold 290,120,000 shares, representing 59.5% of the company's issued share capital[66] - Wu Guolun holds 39,500,000 shares, accounting for 8.1% of the company's issued share capital[66] - The company has not granted or issued any share options or adopted any share option schemes as of March 31, 2022[69] - No directors or senior management have any interests in the company's shares or related securities as of March 31, 2022[64] - No other individuals have reported interests in the company's shares or related securities as of March 31, 2022[67] Compliance and Regulations - The company has adopted the trading regulations standards as per GEM Listing Rules 5.48 to 5.67 for directors' securities trading conduct[74] - All directors confirmed full compliance with the trading regulations standards as of March 31, 2022[74] - The compliance advisor, Haode Financing Limited, has been the sponsor for the company’s GEM listing[75] - The compliance advisory agreement with Haode was extended on multiple occasions, with the latest extension on March 24, 2022[75] - No significant events occurred after March 31, 2022, that would materially affect the group's operations and financial performance[59]

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].