Financial Performance - Revenue for the nine months ended March 31, 2023, was HKD 86,689,000, a 1.7% increase from HKD 85,250,000 in the same period of 2022[5] - Gross profit for the same period was HKD 683,000, compared to HKD 339,000 in 2022, reflecting a significant improvement[5] - The company reported a loss before tax of HKD 12,971,000, an improvement from a loss of HKD 14,814,000 in the previous year, indicating a reduction in losses[5] - Basic and diluted loss per share for the nine months was HKD 1.63, compared to HKD 1.86 in the same period last year, showing a decrease in loss per share[5] - The total loss attributable to the company's owners for the period was approximately HKD 13,000,000, down from HKD 14,900,000 in the previous year, mainly due to lower employee costs[34] Expenses and Income - Administrative expenses decreased to HKD 14,442,000 from HKD 15,323,000, representing a reduction of approximately 5.7%[5] - Other income increased to HKD 809,000 from HKD 233,000, marking a significant growth of 247%[5] - Direct costs reduced from approximately HKD 84,900,000 to about HKD 83,900,000, representing a decrease of approximately 1.18% due to the decline in revenue[28] - Other income increased from approximately HKD 200,000 to about HKD 800,000, mainly due to one-time financial support from the Hong Kong government's anti-epidemic fund[30] - Administrative expenses decreased by approximately 5.9% from HKD 15,300,000 to about HKD 14,400,000, attributed to reduced employee costs and business entertainment[31] Equity and Shareholder Information - The total equity attributable to the owners of the company as of March 31, 2023, was HKD 104,676,000, down from HKD 117,648,000 at the beginning of the period[6] - As of March 31, 2023, Mr. Guo Dongqiang holds 250,000,000 shares, representing approximately 31.41% of the total issued share capital of the company[38] - Major shareholder Best Brain owns 250,000,000 shares, accounting for 31.41% of the total issued share capital[43] - The company purchased 4,060,000 shares of its own listed securities during the reporting period[46] - A total of 16,800,000 share options were granted under the share option scheme, equivalent to about 2.11% of the total issued share capital[52] - The board does not recommend the payment of dividends for the reporting period[50] - No other individuals or companies were reported to have significant interests in the company's shares as of March 31, 2023[43] Corporate Governance - The company has complied with the corporate governance code throughout the reporting period[48] - There were no reported conflicts of interest between the directors and the company's business[44] - The company has not sold or redeemed any of its listed securities during the reporting period[46] - The share options granted to directors and employees have not been exercised or cancelled during the reporting period[52] Audit and Compliance - The Audit Committee was established on March 9, 2016, to review and supervise the financial reporting process and internal control systems of the group[54] - The Audit Committee consists of three independent non-executive directors, with Ms. Huang Shufang serving as the chairperson[54] - The committee has reviewed the unaudited condensed consolidated financial statements and the effectiveness of the internal control systems for the relevant period[54] - The performance is deemed to comply with applicable accounting standards and GEM listing rules[54] - Sufficient disclosures have been made regarding the financial performance[54] Operational Strategies - The company continues to focus on property construction services in Hong Kong and trading of construction materials in China, indicating ongoing operational strategies[8] - The company submitted 26 construction project bids during the period and is currently operating six major projects while following up on seven nearly completed projects[35] - The company is exploring opportunities in modular integrated construction (MiC) for transitional housing projects in Hong Kong, which could generate additional revenue in the coming years[35] - The company has begun engaging in the trading of construction materials in China to integrate its construction business and explore market opportunities[35] - The company plans to diversify its business and seek profitable opportunities through acquisitions or strategic partnerships in various sectors to enhance long-term profitability[36] Compliance with Standards - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable regulations[10]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，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告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Super Strong Holdings Limited 宏 強 控 股 有 限公 司 （於開曼群島註冊成立之有限公司） （股份代號：8262） 截至2023年3月31日止九個月之 第三季度業績公告 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險之中小型公司提供一個上 市之市場。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。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較在聯交所主板買賣的證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量之市場。 本公告的資料乃遵照聯交所GEM證券上巿規則（「GEM上市規則」）而刊載，旨在提供有關宏強控 股有限公司（「本公司」）及其附屬公司的資料；本公司董事（「董事」）願就本公告的資料共同及個 別地承擔全部責任。各董事在作出一 ...

Financial Performance - Revenue for the six months ended December 31, 2022, was HKD 67,910,000, an increase of 27.8% compared to HKD 53,082,000 for the same period in 2021[4] - Gross profit for the same period was HKD 1,917,000, compared to HKD 877,000 in 2021, reflecting a significant improvement[4] - The company reported a loss before tax of HKD 8,512,000 for the six months ended December 31, 2022, an improvement from a loss of HKD 9,854,000 in the previous year[4] - The basic and diluted loss per share for the six months ended December 31, 2022, was HKD 1.07, an improvement from HKD 1.23 in the same period of 2021[4] - The company reported a pre-tax loss of HKD 8,510,000 for the six months ended December 31, 2022, compared to a loss of HKD 9,852,000 for the same period in 2021, representing a decrease of approximately 13.6%[28] - The company reported a loss attributable to owners of approximately HKD 8,500,000, a decrease from HKD 9,900,000 for the same period in the previous year[50] Cash Flow and Liquidity - Cash generated from operating activities was HKD 16,963,000, a turnaround from a cash outflow of HKD 11,763,000 in the prior period[8] - The company's net cash and cash equivalents increased to HKD 50,629,000 at the end of the reporting period, compared to HKD 39,169,000 at the beginning[8] - As of December 31, 2022, the company maintained a cash balance of approximately HKD 50,600,000, up from HKD 39,200,000 as of June 30, 2022[51] - The current ratio as of December 31, 2022, was approximately 2.6 times, compared to 2.5 times as of June 30, 2022[51] - The company pledged approximately HKD 10,900,000 in bank deposits as collateral for bank financing as of December 31, 2022[55] Assets and Liabilities - Total assets decreased to HKD 110,107,000 as of December 31, 2022, down from HKD 118,620,000 as of June 30, 2022[5] - Non-current assets increased slightly to HKD 43,743,000 as of December 31, 2022, from HKD 43,640,000 as of June 30, 2022[5] - The company’s equity attributable to owners decreased to HKD 109,135,000 from HKD 117,646,000 over the same period[5] - Trade receivables as of December 31, 2022, amounted to HKD 3,357,000, a significant decrease from HKD 25,996,000 as of June 30, 2022[31] - The total assets as of December 31, 2022, were approximately HKD 152,800,000, down from HKD 170,200,000 as of June 30, 2022[51] - As of December 31, 2022, the company reported a debt-to-equity ratio of 0%, compared to approximately 4.2% as of June 30, 2022[52] Revenue Sources - Revenue from major clients for the six months ended December 31, 2022, included HKD 20,923,000 from Client A and HKD 27,567,000 from Client B, showing an increase from HKD 20,967,000 and HKD 7,344,000 respectively in 2021[21] - Revenue increased by approximately 27.9% from about HKD 53,100,000 for the six months ended December 31, 2021, to about HKD 67,900,000 for the six months ended December 31, 2022[44] - Direct costs rose by approximately 26.4% from about HKD 52,200,000 to about HKD 66,000,000 during the same period[45] Employee and Operational Costs - Total employee costs for the six months ended December 31, 2022, were HKD 11,657,000, slightly down from HKD 11,833,000 in the same period of 2021[23] - The company maintained a strong liquidity position with total employee costs for the six months ending December 31, 2022, amounting to approximately HKD 11,700,000, a slight decrease from HKD 11,800,000 for the same period in 2021[66] - The company’s operating lease payments for land and buildings totaled HKD 886,000 for the six months ended December 31, 2022, slightly up from HKD 885,000 in 2021[23] Corporate Governance and Compliance - The Audit Committee reviewed the unaudited condensed consolidated results for the six months ended December 31, 2022, confirming compliance with applicable accounting standards and GEM listing rules[85] - The company has adhered to the corporate governance code throughout the reporting period[77] - No business or interests of directors or major shareholders were found to compete with the company's business during the relevant period[73] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[78] Share Capital and Dividends - The issued share capital of the company as of December 31, 2022, was HKD 7,959,400, with a total of 795,940,000 shares issued[58] - The company did not declare an interim dividend for the six months ended December 31, 2022, consistent with the previous year[27] - The company did not recommend the payment of an interim dividend for the six months ended December 31, 2022[79] - A total of 32,900,000 share options remain unexercised as of December 31, 2022[82] Future Outlook and Strategic Initiatives - The company is exploring opportunities in transitional housing projects and strategic partnerships to enhance long-term profitability[43] - The company has no significant future investment or capital asset plans as of December 31, 2022[62] - There were no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[63] - The company has no capital commitments as of December 31, 2022[59] - The company has no significant foreign exchange risk, as all income-generating activities and borrowings are conducted in Hong Kong dollars[57] - The company has a contingent liability of approximately HKD 46,787,000 related to performance guarantees provided by third parties[64] Employment - The company employed a total of 44 employees as of December 31, 2022, down from 48 employees a year earlier[66] - The company did not purchase, sell, or redeem any of its listed securities during the relevant period[75] - There were no significant events requiring disclosure after the reporting period[80]

Financial Performance - Revenue for the first quarter ended September 30, 2022, was HKD 30,406,000, representing an increase of 12.8% compared to HKD 27,204,000 in the same period of 2021[4] - Gross profit decreased to HKD 721,000, down 71.5% from HKD 2,521,000 year-over-year[4] - The company reported a loss before tax of HKD 3,882,000, compared to a loss of HKD 2,703,000 in the previous year, indicating a deterioration in financial performance[4] - Basic and diluted loss per share was HKD 0.49, compared to HKD 0.34 in the same quarter of the previous year[4] - Loss attributable to owners increased by approximately 44.4% to HKD 3,900,000, compared to HKD 2,700,000 in the same period last year[29] Income and Expenses - Administrative expenses decreased to HKD 4,869,000 from HKD 5,278,000, reflecting a reduction of 7.8%[4] - Other income increased significantly to HKD 286,000 from HKD 76,000, marking a growth of 276.3%[4] - Cost of sales rose by approximately 20.2% to about HKD 29,700,000, up from HKD 24,700,000 in the previous year[23] - Other income surged approximately 3.8 times to about HKD 287,000, compared to HKD 76,000 in the previous year, mainly due to government financial support[25] - Administrative expenses decreased by approximately 7.5% to about HKD 5,300,000 from HKD 4,900,000 in the previous year[26] Equity and Shares - The total equity attributable to the owners of the company as of September 30, 2022, was HKD 113,765,000, down from HKD 129,609,000 a year earlier[5] - As of September 30, 2022, Best Brain holds 250,000,000 shares, representing 31.41% of the total issued share capital[36] - Ning Xuzhan owns 113,840,000 shares, accounting for 14.30% of the total issued share capital[36] - Liao Lang and Ye Shanmin each hold 60,000,000 shares, both representing 7.54% of the total issued share capital[36] - A total of 49,200,000 share options remain unexercised as of September 30, 2022[45] Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal control systems[49] - The company has complied with the corporate governance code throughout the relevant period[41] - There are no known conflicts of interest between the directors and the company's business[38] - The company has adopted a code of conduct for securities trading by directors, which has been adhered to during the relevant period[42] Business Strategy and Market Outlook - The company continues to focus on its core business of providing property construction services in Hong Kong[8] - The company submitted 15 construction project bids during the period and is actively following up on 10 projects from previous years[30] - The company aims to explore new business and investment opportunities through acquisitions or strategic partnerships to enhance long-term profitability[30] - The future business opportunities are expected to be influenced by competition in the construction market and the performance of the Hong Kong property market[30] Dividends - No interim dividend was recommended for the period, consistent with the previous year[19] - The company did not recommend the payment of dividends for the relevant period[43] Product and Market Development - There are no new product launches or significant market expansion strategies mentioned in the report[4] - The company has not purchased, sold, or redeemed any of its listed securities during the relevant period[39]

Business Operations - The company submitted 37 bids for construction projects during the year, amounting to approximately HKD 1,434,900,000[14] - The company has committed to two construction contracts in Guangxi Province, China, as part of its long-term strategy to integrate its construction business with the large Chinese market[9] - The company aims to maintain a prudent policy by only submitting bids with reasonable profit margins to mitigate operational risks[14] - The company has three active major projects and is following up on ten projects that were largely completed in previous years[14] - The company is exploring new business and investment opportunities through acquisitions or strategic partnerships beyond the construction sector[10] - The company has established a joint venture with two experienced construction firms in Sichuan, China, to bid for government construction projects[15] - The company anticipates increased supply of construction projects in the northern region of Hong Kong due to new government initiatives[14] Financial Performance - Revenue decreased by approximately 4.2% from HKD 138.7 million for the year ended June 30, 2021, to HKD 132.9 million for the year ended June 30, 2022, primarily due to a reduction in construction orders[17] - Direct costs decreased by approximately 9.1% from HKD 137.7 million to HKD 125.2 million, attributed to the decline in revenue and additional costs from a project in the previous year[18] - Gross profit increased approximately 7.7 times from HKD 1 million to HKD 7.7 million, with the gross profit margin rising from 0.7% to 5.8%[19] - Administrative expenses increased by approximately 24.7% from HKD 16.6 million to HKD 20.7 million, due to higher employee bonuses and maintenance costs[20] - The loss attributable to owners decreased to approximately HKD 12 million from HKD 22.5 million, mainly due to increased gross profit and reduced bad debts[22] - Cash and bank balances decreased to approximately HKD 39.2 million from HKD 54.8 million, while total assets decreased to approximately HKD 170.2 million from HKD 179.5 million[23] - The debt-to-equity ratio was approximately 4.2% as of June 30, 2022, compared to 3.9% the previous year, indicating a low level of debt relative to equity[26] Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring strong independent elements for independent judgment[66] - The company has complied with the corporate governance code throughout the year ending June 30, 2022[63] - The board held a total of 10 meetings during the year ending June 30, 2022[68] - The independent non-executive directors have confirmed their independence according to GEM listing rules[67] - The company is committed to maintaining high corporate governance standards to enhance accountability and transparency for shareholders[61] - The board is responsible for formulating the overall strategy and monitoring management performance[64] - The company has established a compliance manual applicable to directors and employees[65] - The board has delegated certain responsibilities to the company's board committees for better governance[64] Risk Management - The risk management framework includes a dedicated risk management task force that identifies and assesses significant risks at least annually[101] - The board has conducted an annual review of the effectiveness of the risk management and internal control systems, ensuring they are adequate and effective[102] - The company has established a clear governance structure, policies, and procedures to assist in managing various operational risks[101] - The board is responsible for overseeing the design, implementation, and overall effectiveness of the risk management and internal control systems[102] Environmental, Social, and Governance (ESG) Initiatives - The company has established a governance team for environmental, social, and governance (ESG) matters to enhance its ESG governance[121] - The company is focused on sustainable development and integrating ESG factors into its business decisions[121] - The company has adhered to the "comply or explain" provisions of the ESG reporting guidelines issued by the Hong Kong Stock Exchange[119] - The company aims to reduce greenhouse gas emissions by 2% to 3% in the coming year[132] - Nitrogen oxide emissions from vehicles decreased from 0.85 kg in 2021 to 0.74 kg in 2022, a reduction of approximately 12.94%[134] - The company has implemented various construction methods to minimize dust pollution, effectively controlling it to acceptable levels[134] - The company has established multiple key policies regarding environmental matters to minimize emissions[132] - The company has engaged professional consultants to conduct carbon assessments based on guidelines from the Hong Kong Electrical and Mechanical Services Department[132] Employee Relations and Training - The company had a total of 43 full-time employees and 4 part-time employees at the end of the reporting period, with a gender distribution of 32 males and 15 females[158] - The employee turnover rate for males was 16%, resulting in 5 departures, while the turnover rate for females was 7%, resulting in 1 departure[162] - The company provided training to 100% of its employees, with a total training time of 137 hours, averaging 3 hours per employee[172] - The company has implemented a safety plan to promote occupational health and safety, ensuring compliance with applicable laws and regulations[167] - The company emphasizes equal opportunity in employment, supporting a non-discriminatory work environment[164] - The company has maintained a stable workforce with no significant violations of employment laws during the reporting period[165] Community Engagement - The company donated approximately HKD 1,248,300 during the reporting period, an increase from HKD 1,061,800 in 2021[190] - The company actively participates in community investment initiatives, focusing on environmental protection and support for disadvantaged groups[188]

Financial Performance - Revenue for the nine months ended March 31, 2022, was HKD 85,250,000, representing a 33.7% increase from HKD 63,770,000 in the same period of 2021[4] - Gross profit for the same period was HKD 339,000, a significant recovery from a gross loss of HKD 25,432,000 in 2021[4] - The company reported a pre-tax loss of HKD 14,814,000, which is a 57.1% improvement compared to a loss of HKD 34,581,000 in the previous year[4] - Basic and diluted loss per share improved to HKD 1.86 from HKD 4.32 in the same period last year[4] - The total loss attributable to the company's owners for the period was approximately HKD 14,900,000, compared to a loss of approximately HKD 34,600,000 in the previous year[36] Expenses and Income - Administrative expenses increased to HKD 15,323,000 from HKD 12,713,000, reflecting a 20.5% rise[4] - Other income decreased to HKD 233,000 from HKD 3,649,000, indicating a decline of 93.6%[4] - The company did not recommend any dividend for the nine months ended March 31, 2022, consistent with the previous year[22] Equity and Share Options - The total equity attributable to the owners of the company as of March 31, 2022, was HKD 114,727,000, down from HKD 129,609,000 at the beginning of the period[5] - The company has granted a total of 49,200,000 share options under its share option scheme, representing approximately 6.2% of the total issued share capital[52] - The total number of stock options granted, exercised, or canceled during the period was 49,200,000, with none exercised or canceled during the reporting period[54] Business Strategy and Market Focus - The company continues to focus on its core business of property construction services in Hong Kong[8] - The company aims to maintain a prudent strategy in the face of intense competition and economic uncertainty, while keeping a low debt level to ensure financial stability[37] - Future opportunities for the company are expected to be influenced by competition in the construction market and the performance of the Hong Kong property market[37] - The company plans to continue submitting bids with reasonable profit margins to avoid operational risks and losses[37] - The company is expanding its business into new areas, including a project in Lintongwei Village, Fanling, New Territories, where it is acting as a developer[39] Joint Ventures and Collaborations - A joint venture was established in Sichuan, China, with two experienced construction companies to bid for government construction projects, with a small project already signed and expected to be completed within the year[39] - The company aims to integrate its construction business into China, providing broader prospects and enhancing long-term profitability for shareholders[39] - The company continues to seek strategic collaborations and acquisitions to explore new business and investment opportunities for shareholder returns[39] Corporate Governance - The company has adhered to the corporate governance code as per GEM listing rules throughout the relevant period[49] - There are no known conflicts of interest or competitive businesses held by directors or major shareholders during the reporting period[45] - The Audit Committee was established on March 9, 2016, to oversee financial reporting and internal control systems[56] - The Audit Committee consists of three independent non-executive directors, with Ms. Huang Shufang serving as the chairperson[56] - The financial performance of the group was reviewed and deemed compliant with applicable accounting standards and GEM listing rules[56] - The report was reviewed by the Audit Committee and found to have sufficient disclosures[56] Management and Reporting - The executive directors include Mr. Guo Dongqiang, Mr. Gao Junxi, and Mr. Qiu Haiquan[56] - The report date is April 20, 2022, indicating the timeliness of the financial disclosures[56]

[Company Information and GEM Characteristics](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8EGEM%E7%89%B9%E8%89%B2) This section outlines Strong Force Holdings Limited's incorporation and GEM listing details, highlighting the GEM market's characteristics and associated investment risks [Company Name and Registration Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%90%8D%E7%A7%B0%E4%B8%8E%E6%B3%A8%E5%86%8C%E4%BF%A1%E6%81%AF) Strong Force Holdings Limited, incorporated in the Cayman Islands in 2015 and listed on GEM in 2016, primarily operates as an investment holding company with property construction services in Hong Kong - The Company was incorporated in the Cayman Islands on **September 22, 2015**, and listed on GEM of the Stock Exchange on **March 30, 2016**[11](index=11&type=chunk) - The Company's principal business is investment holding, with the Group's main business being the provision of property construction services in Hong Kong[12](index=12&type=chunk) [GEM Market Features and Risk Disclosure](index=2&type=section&id=GEM%E5%B8%82%E5%9C%BA%E7%89%B9%E8%89%B2%E4%B8%8E%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The GEM market provides a listing platform for small and medium-sized companies with higher investment risks, and investors should be aware of potential market volatility and uncertain liquidity - GEM is positioned as a listing market for small and medium-sized companies with higher investment risks compared to other listed companies on the Stock Exchange[3](index=3&type=chunk) - Securities traded on GEM may be subject to greater market fluctuation risks, and high liquidity is not guaranteed[3](index=3&type=chunk) [Interim Results Overview](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E6%A6%82%E8%A7%88) This section provides an overview of the unaudited condensed consolidated financial statements, including profit or loss, financial position, equity changes, and cash flows for the six months ended December 31, 2021 [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended December 31, 2021, the Company reported significant revenue growth but still incurred a loss, with basic loss per share at **1.23 HK Cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended December 31) | Indicator | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 53,082 | 44,304 | | Direct costs | (52,205) | (64,128) | | (Gross loss)/Gross profit | 877 | (19,824) | | Other income | 153 | 3,536 | | Administrative expenses | (10,842) | (8,450) | | Finance costs | (42) | (59) | | Loss before tax | (9,854) | (24,797) | | Income tax credit | – | – | | Loss and total comprehensive expenses for the period | (9,854) | (24,797) | | Loss for the period attributable to owners of the Company | (9,852) | (24,784) | | Loss per share (HK Cents) | (1.23) | (3.10) | [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of December 31, 2021, total non-current and current assets slightly decreased, while current liabilities increased, leading to a reduction in net current assets and total equity Condensed Consolidated Statement of Financial Position (As of December 31) | Indicator | December 31, 2021 (HK$ Thousand) | June 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current assets | 51,611 | 51,772 | | Current assets | 126,459 | 127,753 | | Current liabilities | 58,224 | 49,825 | | Net current assets | 68,235 | 77,928 | | Net assets | 119,755 | 129,609 | | Equity attributable to owners of the Company | 119,757 | 129,609 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For the six months ended December 31, 2021, equity attributable to owners of the Company decreased from **HK$129,609 thousand** on July 1, 2021, to **HK$119,757 thousand** due to the loss for the period Changes in Equity Attributable to Owners of the Company (For the six months ended December 31) | Indicator | December 31, 2021 (HK$ Thousand) | December 31, 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Share capital | 8,000 | 8,000 | | Share premium | 40,903 | 40,903 | | Capital contribution | 11,572 | 11,572 | | Share option reserve | 5,557 | 4,985 | | Retained profits | 53,725 | 61,267 | | Subtotal of equity attributable to owners of the Company | 119,757 | 126,727 | | Non-controlling interests | (2) | 8,062 | | Total equity | 119,755 | 134,789 | - Loss and total comprehensive expenses for the period resulted in a **HK$9,852 thousand** decrease in equity attributable to owners of the Company[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended December 31, 2021, the Company experienced net cash outflows from both operating and investing activities, leading to a net decrease in cash and cash equivalents, with the period-end balance at **HK$42,973 thousand** Condensed Consolidated Statement of Cash Flows (For the six months ended December 31) | Indicator | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (11,763) | (22,855) | | Net cash used in investing activities | (2) | (44,672) | | Net cash used in financing activities | (42) | (59) | | Net decrease in cash and cash equivalents | (11,807) | (67,586) | | Cash and cash equivalents at beginning of period | 54,780 | 131,444 | | Cash and cash equivalents at end of period | 42,973 | 63,858 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section details the basis of preparation, significant accounting policies, segment information, and specific financial statement items, including revenue, expenses, equity, and related party transactions [General Information](index=7&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) The Company, incorporated in the Cayman Islands and listed on GEM, primarily engages in investment holding and property construction services in Hong Kong, with financial statements presented in HKD - The Company was incorporated in the Cayman Islands on **September 22, 2015**, and listed on GEM of the Stock Exchange on **March 30, 2016**[11](index=11&type=chunk) - The Company's principal business is investment holding, with the Group's main business being the provision of property construction services in Hong Kong[12](index=12&type=chunk) - The unaudited condensed consolidated financial statements are presented in **Hong Kong Dollars (HKD)**, which is the Company's functional currency[13](index=13&type=chunk) [Basis of Preparation](index=7&type=section&id=%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules Chapter 18, with consistent accounting policies as the audited financial statements for the year ended June 30, 2021, and no significant changes from new standards - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA and the applicable disclosure requirements of Chapter 18 of the GEM Listing Rules[14](index=14&type=chunk) - The accounting policies and methods of computation used in preparing the Group's unaudited condensed consolidated financial statements for the period are consistent with those applied in the Group's audited financial statements for the year ended **June 30, 2021**[14](index=14&type=chunk) [Revenue and Segment Information](index=8&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's revenue is entirely derived from construction services in Hong Kong, presented as a single operating segment based on overall performance assessment, with major customers A and B contributing most of the 2021 revenue - The Group's business for both periods is entirely derived from construction services in Hong Kong, presented as a single operating segment[17](index=17&type=chunk) Revenue Contribution by Major Customers (For the six months ended December 31) | Customer | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Customer A | 20,967 | 1,385 | | Customer B | 7,344 | – | [Loss Before Tax](index=9&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E4%B9%8F%E6%8D%9F) For the six months ended December 31, 2021, the Company's loss before tax narrowed to **HK$9,854 thousand** from **HK$24,797 thousand** in the prior year, primarily due to staff costs and directors' emoluments Components of Loss Before Tax (For the six months ended December 31) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 375 | 375 | | Directors' emoluments | 1,968 | 1,388 | | Total staff costs | 11,833 | 9,719 | | Operating lease payments | 885 | 885 | - For the six months ended December 31, 2021, loss before tax was **HK$9,854 thousand**, a significant year-on-year reduction[5](index=5&type=chunk) [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended December 31, 2021, other income significantly decreased to **HK$153 thousand**, primarily due to the absence of 'Employment Support Scheme' and exchange gains present in the prior period Components of Other Income (For the six months ended December 31) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Bank interest income | 3 | – | | Employment Support Scheme | – | 2,133 | | Exchange gain | – | 1,246 | | Interest income from life insurance policy payments | 150 | 157 | | Total | 153 | 3,536 | [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) For the six months ended December 31, 2021, the Group incurred no income tax expense due to a recorded loss, with Hong Kong profits tax applying a two-tiered system of **8.25%** for the first **HK$2 million** of assessable profits and **16.5%** thereafter - The Group had no income tax expense for the period, which was due to the Group recording a loss[50](index=50&type=chunk) - Under the two-tiered profits tax regime in Hong Kong, the first **HK$2,000,000** of assessable profits for qualifying group entities is taxed at **8.25%**, with profits exceeding **HK$2,000,000** taxed at **16.5%**[24](index=24&type=chunk) [Dividends](index=10&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended December 31, 2021, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended **December 31, 2021** (December 31, 2020: nil)[25](index=25&type=chunk) [Loss Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E4%B9%8F%E6%8D%9F) For the six months ended December 31, 2021, basic and diluted loss per share attributable to owners of the Company improved to **1.23 HK Cents** from **3.10 HK Cents** in the prior period, primarily due to a narrower loss Loss Per Share (For the six months ended December 31) | Indicator | 2021 (HK$ Thousand/Thousand Shares) | 2020 (HK$ Thousand/Thousand Shares) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (9,852) | (24,784) | | Weighted average number of ordinary shares | 800,000 | 800,000 | | Basic and diluted loss per share (HK Cents) | (1.23) | (3.10) | [Property, Plant and Equipment](index=11&type=section&id=%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) During the period, the Group made no acquisitions of property, plant, and equipment, consistent with the situation as of June 30, 2021 - During the period, the Group made no acquisitions of property, plant, and equipment (June 30, 2021: nil)[28](index=28&type=chunk) [Trade Receivables](index=12&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of December 31, 2021, the Group's total trade receivables increased slightly to **HK$10,818 thousand** from June 30, 2021, with a notable increase in receivables aged **31 to 60 days** Ageing Analysis of Trade Receivables (As of December 31) | Ageing | December 31, 2021 (HK$ Thousand) | June 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 5,608 | 7,657 | | 31 to 60 days | 4,203 | 886 | | 61 to 180 days | 1,007 | 1,862 | | Total | 10,818 | 10,405 | - The credit period granted by the Group to its customers ranges from **30 to 60 days** from the invoice date of contract work progress payments[30](index=30&type=chunk) [Trade Payables](index=12&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of December 31, 2021, the Group's total trade payables increased to **HK$10,051 thousand** from June 30, 2021, primarily concentrated in the **0 to 30 days** ageing category Ageing Analysis of Trade Payables (As of December 31) | Ageing | December 31, 2021 (HK$ Thousand) | June 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 8,627 | 3,328 | | 31 to 60 days | – | – | | 61 to 180 days | 1,424 | 2,995 | | Over 180 days | – | 272 | | Total | 10,051 | 6,595 | - The credit period granted by suppliers and subcontractors to the Group is **30 to 60 days**[31](index=31&type=chunk) [Bank Borrowings](index=13&type=section&id=%E9%93%B6%E8%A1%8C%E5%80%9F%E8%B4%B7) As of December 31, 2021, the Group's total revolving bank borrowings remained at **HK$5,000 thousand**, consistent with June 30, 2021, and are repayable on demand Bank Borrowings (As of December 31) | Type | December 31, 2021 (HK$ Thousand) | June 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Revolving bank borrowings – repayable on demand | 5,000 | 5,000 | [Share Capital](index=13&type=section&id=%E8%82%A1%E6%9C%AC) As of December 31, 2021, the Company's authorized share capital was **HK$20,000 thousand**, with issued and fully paid share capital of **HK$8,000 thousand**, comprising **800,000,000** ordinary shares of **HK$0.01** each, unchanged from June 30, 2021 Share Capital Details (As of December 31) | Type | Number of Shares | Par Value (HK$ Thousand) | | :--- | :--- | :--- | | Authorized share capital | 2,000,000,000 | 20,000 | | Issued and fully paid share capital | 800,000,000 | 8,000 | [Share-based Payment Transactions](index=13&type=section&id=%E4%BB%A5%E8%82%A1%E4%BB%BD%E4%B8%BA%E5%9F%BA%E7%A1%80%E4%B9%8B%E4%BB%98%E6%AC%BE%E4%BA%A4%E6%98%93) The Company established a share option scheme in 2016 to reward eligible participants, with **49,200,000** share options outstanding as of December 31, 2021, and no new options granted during the period - The Company established a share option scheme on **March 9, 2016**, to reward or compensate eligible participants for their contributions to the Group[34](index=34&type=chunk) - As of **December 31, 2021**, a total of **49,200,000** share options remained outstanding[83](index=83&type=chunk)[39](index=39&type=chunk) - The Group did not grant any share options during the period (2020: nil)[37](index=37&type=chunk) [Commitments](index=15&type=section&id=%E6%89%BF%E6%8B%85) During the period, the Group had no outstanding operating lease commitments related to lease payments, consistent with the situation as of June 30, 2021 - During the period, the Group had no outstanding operating lease commitments related to lease payments (June 30, 2021: nil)[40](index=40&type=chunk) [Related Party Transactions](index=15&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) For the six months ended December 31, 2021, total key management personnel compensation increased to **HK$1,968 thousand** from the prior period, primarily comprising short-term benefits and post-employment benefits Key Management Personnel Compensation (For the six months ended December 31) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Short-term benefits | 1,959 | 1,379 | | Post-employment benefits | 9 | 9 | | Total | 1,968 | 1,388 | [Management Discussion and Analysis](index=16&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a comprehensive review of the Group's business operations, financial performance, liquidity, and risk management strategies, along with future outlook and human resources policies [Business Review and Outlook](index=16&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5%E5%8F%8A%E5%B1%95%E6%9C%9B) The Group actively participates in construction project bidding, operates five main projects, and monitors ten largely completed projects, while facing intense competition and pandemic uncertainties, it plans to cautiously bid and expand into the China construction market and other profitable areas, including a developer role in the Lin Tong Mei Tsuen project in Fanling, New Territories - During the period, the Group actively participated in industry activities, submitted **24** construction project tenders, and focused on operating **five** major projects[43](index=43&type=chunk) - The Group faces intense competition and uncertainties in the current economic environment, leading to continuous decline in project profit margins[43](index=43&type=chunk) - The Group will seek to expand its business and pursue profitable ventures in other areas, including establishing a joint venture in Sichuan Province, China, to bid for Chinese government construction projects, and acting as a developer in Hong Kong[44](index=44&type=chunk) [Financial Review](index=17&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B5) For the six months ended December 31, 2021, the Group's revenue increased by **19.9%** year-on-year, gross profit turned from loss to profit, administrative expenses rose due to increased staff costs, and loss for the period significantly narrowed [Revenue](index=17&type=section&id=%E6%94%B6%E5%85%A5) The Group's revenue increased by approximately **19.9%** from **HK$44,300,000** in the prior period to approximately **HK$53,100,000** in 2021, primarily due to an increase in ongoing construction projects Revenue Comparison (For the six months ended December 31) | Year | Amount (HK$) | Year-on-year Growth | | :--- | :--- | :--- | | 2021 | 53,100,000 | 19.9% | | 2020 | 44,300,000 | - | [Direct Costs](index=17&type=section&id=%E7%9B%B4%E6%8E%A5%E6%88%90%E6%9C%AC) Direct costs decreased by approximately **18.6%** from **HK$64,100,000** in the prior period to approximately **HK$52,200,000** in 2021, mainly due to the absence of additional costs incurred in the late stages of completion in the previous period Direct Costs Comparison (For the six months ended December 31) | Year | Amount (HK$) | Year-on-year Change | | :--- | :--- | :--- | | 2021 | 52,200,000 | -18.6% | | 2020 | 64,100,000 | - | [Gross Profit](index=17&type=section&id=%E6%AF%9B%E5%88%A9) The Group's gross profit turned from a loss of **HK$19,800,000** in the prior period to a profit of **HK$900,000** in 2021, primarily due to the absence of additional costs incurred in the late stages of completion in the previous period Gross Profit Comparison (For the six months ended December 31) | Year | Amount (HK$) | | :--- | :--- | | 2021 | 900,000 (Gross Profit) | | 2020 | (19,800,000) (Gross Loss) | [Administrative Expenses](index=17&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses increased by approximately **27.1%** from **HK$8,500,000** in the prior period to approximately **HK$10,800,000** in 2021, mainly due to increases in staff costs, business entertainment, and charitable donations Administrative Expenses Comparison (For the six months ended December 31) | Year | Amount (HK$) | Year-on-year Growth | | :--- | :--- | :--- | | 2021 | 10,800,000 | 27.1% | | 2020 | 8,500,000 | - | [Income Tax Expense](index=17&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) The Group incurred no income tax expense during the period, primarily due to recording a loss - The Group had no income tax expense for the period (December 31, 2020: nil), which was due to the Group recording a loss[50](index=50&type=chunk) [Loss and Total Comprehensive Expenses for the Period Attributable to Owners of the Company](index=18&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%8B%A5%E6%9C%89%E4%BA%BA%E5%BA%94%E5%8D%A0%E6%9C%9F%E5%86%85%E4%B9%8F%E6%8D%9F%E5%8F%8A%E5%85%A8%E9%9D%A2%E5%BC%80%E6%94%AF%E6%80%BB%E9%A2%9D) Loss and total comprehensive expenses for the period attributable to owners of the Company significantly decreased to approximately **HK$9,900,000** from approximately **HK$24,800,000** in the prior period, mainly due to the absence of additional costs incurred in the late stages of completion in the previous period Loss and Total Comprehensive Expenses for the Period Attributable to Owners of the Company Comparison (For the six months ended December 31) | Year | Amount (HK$) | | :--- | :--- | | 2021 | 9,900,000 | | 2020 | 24,800,000 | [Liquidity and Financial Resources](index=18&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintained a sound financial position as of December 31, 2021, with bank balances and cash of approximately **HK$43,000,000**, a current ratio of approximately **2.2 times**, and total assets of approximately **HK$178,100,000** - The Group maintained a sound financial position during the period[53](index=53&type=chunk) Liquidity and Financial Resources (As of December 31) | Indicator | December 31, 2021 (HK$) | June 30, 2021 (HK$) | | :--- | :--- | :--- | | Bank balances and cash | 43,000,000 | 54,800,000 | | Pledged bank balances | 10,800,000 | 10,800,000 | | Total interest-bearing borrowings | 5,000,000 | 5,000,000 | | Current ratio | 2.2 times | 2.6 times | | Total assets | 178,100,000 | 179,500,000 | | Total liabilities | 58,300,000 | 49,900,000 | | Shareholders' equity | 119,400,000 | 129,600,000 | [Gearing Ratio](index=18&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of December 31, 2021, the Group's gearing ratio remained low at approximately **4.2%**, primarily due to sufficient bank balances and cash Gearing Ratio (As of December 31) | Year | Gearing Ratio | | :--- | :--- | | December 31, 2021 | 4.2% | | June 30, 2021 | 3.9% | - The ratio remained low due to the Group's sufficient bank balances and cash[54](index=54&type=chunk) [Treasury Policy](index=18&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management strategy, maintaining a sound liquidity position and managing risks through continuous credit assessment and close monitoring of liquidity - The Group adopted a prudent financial management strategy in formulating its treasury policy, thereby maintaining a sound liquidity position for the six months ended **December 31, 2021**[55](index=55&type=chunk) - The Group continuously conducts credit assessments and financial status evaluations of its customers to mitigate credit risk[55](index=55&type=chunk) [Pledge of Assets](index=19&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of December 31, 2021, the Group pledged bank deposits of approximately **HK$10,800,000** and paid deposits for life insurance policies with a net book value of approximately **HK$9,500,000** to a bank as collateral for bank financing - The Group pledged bank deposits of approximately **HK$10,800,000** to a bank as collateral for bank financing granted to the Group[57](index=57&type=chunk) - The Group pledged paid deposits for its life insurance policies (total net book value of approximately **HK$9,500,000**) as collateral for bank financing granted to the Group[57](index=57&type=chunk) [Foreign Exchange Risk](index=19&type=section&id=%E5%A4%96%E5%8C%AF%E9%A3%8E%E9%99%A9) All of the Group's revenue-generating businesses and borrowings are transacted in HKD, its functional currency, thus it faced no significant foreign exchange fluctuation risk for the six months ended December 31, 2021, and has no hedging policy - All of the Group's revenue-generating businesses and borrowings are transacted in **Hong Kong Dollars (HKD)**, which is the functional currency for all Group entities[59](index=59&type=chunk) - For the six months ended **December 31, 2021**, the Group did not face significant foreign exchange fluctuation risk, and the Group has not formulated any hedging policy for foreign currency risk[59](index=59&type=chunk) [Capital Structure](index=19&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) For the six months ended December 31, 2021, the Group's capital structure remained unchanged, with issued share capital of **HK$8,000,000** comprising **800,000,000** shares of **HK$0.01** each - For the six months ended **December 31, 2021**, there were no changes in the Group's capital structure[60](index=60&type=chunk) - As of **December 31, 2021**, the Company's issued share capital was **HK$8,000,000**, and the number of its issued ordinary shares was **800,000,000** shares of **HK$0.01** each[60](index=60&type=chunk) [Commitments](index=19&type=section&id=%E6%89%BF%E6%8B%85) As of December 31, 2021, the Group had no capital commitments - As of **December 31, 2021**, the Group had no capital commitments (June 30, 2021: nil)[61](index=61&type=chunk) [Segment Information](index=19&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's segment information is disclosed in Note 3 to the unaudited condensed consolidated financial statements, indicating its primary business focus on construction services in Hong Kong - The Group's segment information is disclosed in Note 3 to the unaudited condensed consolidated financial statements[62](index=62&type=chunk) [Future Plans for Material Investments and Capital Assets](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of December 31, 2021, the Group had no plans for any material investments or capital assets - As of **December 31, 2021**, the Group had no plans for any material investments or capital assets[63](index=63&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) During the period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[65](index=65&type=chunk) [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of December 31, 2021, the Group provided performance guarantees of approximately **HK$10,800,000** to customers, but directors believe claims are unlikely, with no other material contingent liabilities - As of **December 31, 2021**, banks provided performance guarantees of approximately **HK$10,800,000** to the Group's customers as beneficiaries[66](index=66&type=chunk) - The Group has contingent liabilities involving indemnifying banks for any claims made by customers under guarantees due to the Group's failure to fulfill its obligations[66](index=66&type=chunk) - At the end of both reporting periods, the directors of the Company believed that the Group was unlikely to face claims[66](index=66&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of December 31, 2021, the Group employed **48** staff with total staff costs of approximately **HK$11,800,000**, offering competitive remuneration, retirement, medical benefits, training subsidies, and share options to attract and retain talent - As of **December 31, 2021**, the Group employed a total of **48** staff (December 31, 2020: **48** staff)[67](index=67&type=chunk) - The Group's staff costs (including directors' emoluments) for the six months ended **December 31, 2021**, were approximately **HK$11,800,000**[67](index=67&type=chunk) - The Group provides competitive remuneration packages, retirement benefits, medical benefits, and training course subsidies, and grants share options to eligible employees[67](index=67&type=chunk) [Other Information](index=21&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers material investments, disclosures of interests for directors and substantial shareholders, competing interests, securities transactions, corporate governance, dividends, post-reporting period events, share option scheme, and the Audit Committee's review [Material Investments Held](index=21&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During the period, the Group held no material investments other than its investments in subsidiaries - During the period, the Group held no material investments other than its investments in subsidiaries[69](index=69&type=chunk) [Disclosure of Interests](index=21&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) This section discloses the interests and short positions of directors, chief executives, and substantial shareholders in the Company's shares or related shares [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of December 31, 2021, Mr. Kwok Tung Keung held **250,000,000** shares (controlled corporation interest) and **23,700,000** share options, while Mr. Ko Chun Hei held **149,500,000** shares and **23,700,000** share options Directors' Long Positions in Shares (As of December 31, 2021) | Director's Name | Nature of Interest | Number of Shares Interested | Number of Share Options | Percentage of Shareholding (Approximate) | | :--- | :--- | :--- | :--- | :--- | | Mr. Kwok Tung Keung | Interest in controlled corporation | 250,000,000 | – | 31.25% | | Mr. Kwok Tung Keung | Beneficial owner | – | 23,700,000 | 2.96% | | Mr. Ko Chun Hei | Beneficial owner | 149,500,000 | – | 18.69% | | Mr. Ko Chun Hei | Beneficial owner | – | 23,700,000 | 2.96% | - Mr. Kwok beneficially owns **100%** of the issued share capital of Best Brain Investments Limited and is therefore deemed to be interested in the shares held by Best Brain[70](index=70&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares or Underlying Shares](index=22&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E6%88%96%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of December 31, 2021, substantial shareholder Best Brain Investments Limited held **250,000,000** shares, representing **31.25%** of the Company's total issued share capital Substantial Shareholders' Long Positions in Shares (As of December 31, 2021) | Shareholder Name | Nature of Interest | Number of Shares Interested | Long/Short Position | Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | :--- | | Best Brain | Beneficial owner | 250,000,000 | Long Position | 31.25% | [Competing Interests](index=23&type=section&id=%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) During the period, the Directors were unaware of any business or interest of the Directors, controlling shareholders, or their respective associates that competed or might compete with the Group's business, or any other conflicts of interest - During the period, the Directors were unaware of any business or interest of the Directors, controlling shareholders of the Company, or any of their respective associates that competed or might compete with the Group's business, nor were they aware of any other conflicts of interest that such persons had or might have with the Group[75](index=75&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[76](index=76&type=chunk) [Corporate Governance Code](index=23&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The Company's corporate governance practices are based on the principles and code provisions of the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, and it has complied with the relevant rules during the period - The Company's corporate governance practices are based on the principles and code provisions set out in the Corporate Governance Code and Corporate Governance Report in Appendix 15 of the GEM Listing Rules[77](index=77&type=chunk) - During the period, the Company has complied with the relevant rules of the Corporate Governance Code[78](index=78&type=chunk) [Code of Conduct Regarding Securities Transactions by Directors](index=23&type=section&id=%E6%9C%89%E9%97%9C%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%93%8D%E5%AE%88%E6%BA%96%E5%89%87) The Group has adopted a strict code of conduct for directors' securities transactions, and all directors confirmed full compliance with this code during the period - The Group has adopted a code of conduct regarding securities transactions by directors, with terms no less exacting than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[79](index=79&type=chunk) - The Company has made specific enquiries to all Directors, and all Directors have confirmed their full compliance with the required standard of dealings set out in the code of conduct during the period[79](index=79&type=chunk) [Dividends](index=23&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended December 31, 2021 - The Board does not recommend the payment of an interim dividend for the six months ended **December 31, 2021**[80](index=80&type=chunk) [Events After Reporting Period](index=23&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the date of this announcement, to the best of the Board's knowledge, no material discloseable events have occurred after the reporting period, other than those disclosed herein - As of the date of this announcement, to the best of the Board's knowledge, no material discloseable events have occurred after the reporting period, other than those disclosed in this announcement[81](index=81&type=chunk) [Share Option Scheme](index=24&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company's share option scheme was approved on March 9, 2016, with **49,200,000** options outstanding as of December 31, 2021, and no grants, exercises, cancellations, or lapses during the period - The Company's shareholders approved and adopted the share option scheme by way of written resolutions on **March 9, 2016**[83](index=83&type=chunk) - **49,200,000** share options remained unexercised as of **December 31, 2021**[83](index=83&type=chunk) - During the period, no share options were granted, exercised, cancelled, or lapsed[84](index=84&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, established on March 9, 2016, comprises three independent non-executive directors with Ms. Wong Shuk Fong as Chairlady, and has reviewed the report, unaudited condensed consolidated results, and internal control system for the six months ended December 31, 2021, confirming compliance with applicable accounting standards and listing rules - The Board established the Audit Committee on **March 9, 2016**, comprising three independent non-executive Directors, with Ms. Wong Shuk Fong as the Chairlady[86](index=86&type=chunk) - The primary responsibilities of the Audit Committee include reviewing and monitoring the Group's financial reporting procedures and internal control systems, nominating and overseeing external auditors, and providing advice and recommendations to the Board on corporate governance matters[86](index=86&type=chunk) - The Audit Committee has reviewed this report and the effectiveness of the Group's unaudited condensed consolidated results and internal control system for the six months ended **December 31, 2021**, deeming them compliant with applicable accounting standards, GEM Listing Rules, and other legal requirements[86](index=86&type=chunk)

Financial Performance - Revenue for the first quarter ended September 30, 2021, was HKD 27,204,000, a decrease of 28.4% compared to HKD 37,949,000 in the same period of 2020[6] - Gross profit for the first quarter was HKD 2,521,000, down 12.4% from HKD 2,876,000 year-on-year[6] - The company reported a loss before tax of HKD 2,703,000, compared to a loss of HKD 1,084,000 in the previous year, indicating a significant increase in losses[6] - Basic and diluted loss per share for the first quarter was HKD 0.34, compared to HKD 0.16 in the same period last year[6] - Revenue decreased by approximately 28.2% from HKD 37,900,000 in 2020 to HKD 27,200,000 in 2021 due to project delays caused by the COVID-19 pandemic[24] - Cost of sales reduced by approximately 29.6% from HKD 35,100,000 in 2020 to HKD 24,700,000 in 2021, attributed to project delays and fewer construction orders[25] - Gross profit fell by approximately 13.8% from HKD 2,900,000 in 2020 to HKD 2,500,000 in 2021, influenced by lower gross margins on projects[26] - Other income decreased significantly from HKD 1,300,000 in 2020 to HKD 800,000 in 2021, primarily due to the cessation of government financial support programs[27] - Basic loss per share increased from HKD 1,285,000 in 2020 to HKD 2,703,000 in 2021, reflecting a significant rise in losses attributable to shareholders[22][31] Administrative and Other Expenses - Administrative expenses increased slightly to HKD 5,278,000 from HKD 5,198,000 year-on-year, reflecting a 1.5% rise[6] - Administrative expenses increased by approximately 1.9% from HKD 5,200,000 in 2020 to HKD 5,300,000 in 2021, mainly due to foreign exchange gains[28] - Other income decreased significantly to HKD 76,000 from HKD 1,268,000, a decline of 93.0% year-on-year[6] Equity and Shareholder Information - The total equity attributable to the owners of the company as of September 30, 2021, was HKD 126,906,000, down from HKD 129,609,000 at the beginning of the period[7] - As of September 30, 2021, Best Brain holds 250,000,000 shares, representing 31.25% of the total issued share capital[39] - A total of 49,200,000 share options remain unexercised as of September 30, 2021[48] - The company has not proposed any dividends for the period ending September 30, 2020[46] - The board does not recommend an interim dividend for the period, consistent with the previous year[21] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal control systems[52] - There are no known conflicts of interest between the directors and the company's business[41] - The company has complied with the corporate governance code throughout the relevant period[44] - The company has adopted a code of conduct for securities trading by directors, which has been adhered to during the relevant period[45] Business Development and Future Outlook - The company has not reported any new product developments or market expansions during the quarter[10] - There were no significant mergers or acquisitions reported in the first quarter[10] - The company continues to evaluate the impact of new accounting standards on its financial performance but has not adopted any new standards that would significantly affect its results[11] - The company aims to explore new business opportunities and investments to enhance long-term profitability, including a joint venture in Sichuan, China[33] - Future opportunities are expected to be influenced by competition in the construction market and the performance of the Hong Kong property market[32] - The company submitted 20 construction project bids during the period and operated approximately 16 projects, with one new project initiated[32] Securities Transactions - The company has not purchased, sold, or redeemed any of its listed securities during the relevant period[42] - No share options were exercised during the reporting period[51]

Financial Performance - Revenue decreased by approximately 36.2% from HKD 217.3 million for the year ended June 30, 2020, to HKD 138.7 million for the year ended June 30, 2021, primarily due to a reduction in construction orders and project delays caused by COVID-19[16]. - Direct costs decreased by approximately 29.8% from HKD 196.2 million for the year ended June 30, 2020, to HKD 137.7 million for the year ended June 30, 2021, attributed to reduced revenue and additional follow-up costs during the final completion phase[17]. - The group's gross profit decreased by approximately 95.3% from about HKD 21,100,000 for the year ended June 30, 2020, to about HKD 1,000,000 for the year ended June 30, 2021, with a gross profit margin dropping from approximately 9.7% to 0.7%[18]. - Administrative expenses reduced by approximately 32.5% from about HKD 24,600,000 for the year ended June 30, 2020, to about HKD 16,600,000 for the year ended June 30, 2021, primarily due to decreases in business entertainment, charitable donations, professional fees, and employee costs[19]. - The loss attributable to owners for the year ended June 30, 2021, was approximately HKD 22,500,000, a significant change from a profit of about HKD 2,400,000 for the year ended June 30, 2020[22]. - Cash and bank balances decreased from approximately HKD 131,400,000 as of June 30, 2020, to about HKD 54,800,000 as of June 30, 2021, primarily due to a deposit of HKD 40,000,000 for a construction project and the loss incurred during the year[23]. - The total assets as of June 30, 2021, were approximately HKD 179,500,000, down from about HKD 242,200,000 as of June 30, 2020[23]. - The debt-to-equity ratio increased to approximately 3.9% as of June 30, 2021, from about 3.1% as of June 30, 2020, while maintaining a low level due to sufficient cash and bank balances[24]. Business Operations - The company is currently operating approximately 33 construction projects, with a new project launched during the year and a total of over HKD 360 million confirmed for new property development projects[14]. - The company submitted 58 tenders during the year, with a total value exceeding HKD 5.363 billion, although the win rate remains low due to the need to target projects with reasonable profit margins[14]. - The company has entered into a cooperation agreement with a state-owned enterprise and is in discussions with a Chinese construction company for several projects in China, expecting additional business and profits in the coming years[10]. - The company is exploring new business opportunities through joint ventures and expanding into financial investment, indicating a strategic shift beyond just property construction projects[15]. - The company aims to maintain a low debt level to ensure a stable financial position amid fierce competition and economic uncertainty in the construction market[14]. - The company acknowledges that the performance of the Hong Kong property market will significantly impact future business opportunities[15]. - The company continues to implement business strategies to identify and undertake reasonably profitable projects while balancing risks and returns[10]. Corporate Governance - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring strong independence[66]. - The company held a total of 13 board meetings during the fiscal year ending June 30, 2021[70]. - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance with governance standards[67]. - The company has adhered to the corporate governance code throughout the fiscal year ending June 30, 2021[63]. - The board is responsible for setting the overall strategy and monitoring management performance, enhancing accountability and transparency[64]. - The company has established a code of conduct and compliance manual applicable to directors and employees[65]. - The board has delegated certain responsibilities to the board committees to improve governance practices[64]. - The company is committed to maintaining high corporate governance standards to protect shareholder interests and create value[61]. - The executive directors attended all board meetings, demonstrating strong engagement and oversight[71]. - The company has adopted the GEM listing rules regarding the conduct of securities transactions by directors, ensuring compliance[73]. - The company provided training courses related to corporate governance, ensuring all directors attended at least one session during the fiscal year ending June 30, 2021[75]. - The Audit Committee held four meetings during the fiscal year, with all members attending all sessions[84]. - The Audit Committee reviewed the unaudited quarterly, interim, and audited annual financial statements of the group[86]. - The Remuneration Committee held two meetings during the fiscal year, reviewing the compensation of individual executive directors and senior management[89]. - The company established three functional committees to assist the board in fulfilling its duties, including the Audit Committee, Remuneration Committee, and Nomination Committee[77]. - The Audit Committee is composed of three members, all of whom are independent non-executive directors, ensuring compliance with GEM listing rules[81]. - The company emphasizes the importance of continuous professional development for directors to maintain effective internal control systems and corporate governance[76]. - The Audit Committee's responsibilities include monitoring the integrity of financial statements and reviewing significant judgments made in financial reporting[82]. - The company has provided sufficient resources and support to all committees to fulfill their duties effectively[78]. - The Remuneration Committee made recommendations to the board regarding the remuneration of executive directors and senior management[89]. - The remuneration for directors is determined based on their service contracts and is recommended by the remuneration committee[91]. - The remuneration committee held 2 meetings during the year ended June 30, 2021, with all members present at each meeting[91]. - The external auditor received HKD 755,000 for statutory audit services for the year ended June 30, 2021[98]. Risk Management and Compliance - The risk management framework includes a dedicated risk management team that identifies and assesses significant risks at least annually[102]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems[103]. - The company is committed to promptly disclosing inside information to the public while ensuring confidentiality[104]. - The nomination committee held 2 meetings during the year ended June 30, 2021, with all members present at each meeting[96]. - The nomination committee reviewed the board's structure, size, and composition during the year[95]. - The company has established a risk management policy to identify, assess, and manage significant risks[102]. - The board is responsible for overseeing the design, implementation, and overall effectiveness of the risk management and internal control systems[102]. - The board confirmed that the consolidated financial statements for the year ended June 30, 2021, were prepared in accordance with relevant accounting standards and principles[108]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a governance team for environmental, social, and governance (ESG) matters, which is responsible for implementing the ESG strategy[123]. - The company is committed to sustainable development and has implemented internal controls to manage significant ESG risks[124]. - The company has complied with all "comply or explain" provisions of the ESG reporting guidelines[121]. - The company has established a risk management system to identify, assess, and address significant ESG risks[124]. - The company aims to reduce greenhouse gas emissions by 2% to 3% in the coming year[134]. - Total greenhouse gas emissions decreased from 80 metric tons CO2 equivalent in 2020 to 57 metric tons CO2 equivalent in 2021, a reduction of 28.75%[140]. - The company achieved a reduction in nitrogen oxides emissions from 8.52 kg in 2020 to 0.85 kg in 2021, a decrease of 90%[136]. - The company recycled 3.5 metric tons of paper, resulting in a reduction of 16.8 metric tons of CO2 equivalent emissions[143]. - The company reported a decrease in energy indirect emissions from 31 metric tons CO2 equivalent in 2020 to 27 metric tons CO2 equivalent in 2021, a reduction of 12.9%[140]. - The company has implemented various environmental management policies to minimize emissions and ensure compliance with local regulations[132]. - The company has engaged stakeholders through various channels, including internal emails, business meetings, and public consultations[128]. - The company has identified significant environmental, social, and governance issues through stakeholder surveys and assessments[129]. - The company has established a carbon assessment with professional consultants to quantify greenhouse gas emissions[134]. - The company has committed to encouraging green driving practices among employees to reduce vehicle emissions[135]. - The company reduced construction waste by over 59% in 2021, generating 1,673 tons compared to 4,073 tons in 2020, resulting in a density of 34.85 tons per employee in 2021 versus 76.85 tons per employee in 2020[144]. - Electricity consumption decreased to 53,772 kWh (1,120.25 kWh per employee) in 2021 from 60,772 kWh (1,146.64 kWh per employee) in 2020, while gasoline consumption dropped to 1,370 liters (28.54 liters per employee) from 3,002 liters (56.64 liters per employee) in 2020[149]. - Water consumption was reduced by over 13%, with 497 cubic meters (10.35 cubic meters per employee) in 2021 compared to 577 cubic meters (10.89 cubic meters per employee) in 2020[153]. - The company aims to reduce energy consumption by 2-3% in the coming year[152]. - The company has implemented a green management system to improve energy and resource efficiency and enhance employee awareness of resource conservation[148]. - The company is committed to using environmentally friendly materials and methods in its operations, favoring suppliers that provide green materials[148]. - The company has not encountered any issues in sourcing water during the reporting period[154]. Employee Relations and Development - The workforce consisted of 44 full-time and 4 part-time employees at the end of the reporting period, with a gender distribution of 33 males and 15 females[164]. - Employee turnover rate for males increased to 36% in 2021 from 23% in 2020, while for females it decreased slightly to 7% from 8%[167]. - The turnover rate for employees aged 50 and above surged to 47% in 2021, compared to 16% in 2020[167]. - Total training hours for employees reached 140 hours, with 100% of employees receiving training[177]. - Average training hours per employee were 3 hours, with male employees averaging 3 hours and female employees averaging 2 hours[177]. - The company reported zero cases of work-related deaths or injuries during the reporting period[174]. - The company has implemented safety plans and training to ensure compliance with local health and safety regulations[173]. - There were no significant violations of employment laws and regulations during the reporting period[170]. - The company has a strict policy against child labor and forced labor, with no violations reported during the period[181]. - Employee compensation and benefits are reviewed annually based on performance, with competitive packages offered to attract and retain talent[168]. - The company emphasizes continuous training and development to enhance employee performance and loyalty[176]. Community Engagement - The company donated approximately HKD 1,061,800 during the reporting period, compared to HKD 1,036,000 in 2020, reflecting its commitment to community investment[195]. - The company actively engages in community support initiatives, including financial assistance for underprivileged students through the Starry Star Program[194].

宏強控股有限公司 （於開曼群島註冊成立的有限公司） 股份 代號： 2020/21 2020/21 第三季度業績報告 Third Quarterly Report 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險之中小型公司提供一個 上市之市場。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。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較在聯交所主板買賣的證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量之市場。 香港交易及結算所有限公司及香港聯合交易所有限公司對本報告的內容概不負責，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報告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 本報告的資料乃遵照聯交所GEM證券上巿規則（「GEM上市規則」）而刊載，旨在提供有關宏強 控股有限公司（「本公司」）及其附屬公司的資料；本公司董事（「董事」）願就本報告的資料共同及 個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所深知及確信，本報 ...