Financial Performance - For the six months ended December 31, 2020, the company reported a revenue of HKD 44,304,000, a decrease of 71.5% compared to HKD 155,313,000 for the same period in 2019[6] - The gross loss for the period was HKD 19,824,000, compared to a gross profit of HKD 16,401,000 in the previous year, indicating a significant decline in profitability[6] - The company incurred a loss before tax of HKD 24,797,000, compared to a profit before tax of HKD 5,078,000 in the prior year, reflecting a negative shift in financial performance[6] - The company reported a total comprehensive loss of HKD 24,797,000 for the six months, compared to a total comprehensive income of HKD 4,240,000 in the previous year[6] - The company reported a loss attributable to shareholders of HKD 23,500,000 for the three months ended December 31, 2020, compared to a profit of HKD 3,413,000 in the same period of 2019[26] - The company reported a loss attributable to owners of approximately HKD 24.8 million for the period, compared to a profit of about HKD 4.5 million in the previous period[51] - The basic and diluted loss per share was HKD 3.10, compared to earnings per share of HKD 0.56 in the same period last year, marking a significant downturn in earnings[6] Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 63,858,000 from HKD 131,444,000, representing a decline of 51.4%[10] - The net cash used in operating activities was HKD 22,855,000, compared to a net cash inflow of HKD 40,121,000 in the same period last year, highlighting cash flow challenges[10] - Total assets decreased to HKD 197,455,000 as of December 31, 2020, down from HKD 226,133,000 as of June 30, 2020, indicating a reduction in asset base[7] - As of December 31, 2020, the company maintained a cash balance of approximately HKD 63.9 million, down from about HKD 131.4 million as of June 30, 2020[52] Expenses and Cost Management - The company’s administrative expenses were HKD 7,204,000, down from HKD 11,847,000 in the previous year, indicating cost-cutting measures[6] - The total employee costs for the six months ended December 31, 2020, were HKD 9,719,000, down from HKD 11,541,000 in the same period of 2019, representing a decrease of approximately 15.8%[21] - Short-term employee benefits for key management personnel decreased to HKD 1,379,000 for the six months ended December 31, 2020, from HKD 1,726,000 in the same period of 2019[39] - Administrative expenses decreased by approximately 39.0% from about HKD 11.8 million to about HKD 7.2 million, mainly due to reductions in employee costs and professional fees[48] Revenue Sources and Client Contributions - Major clients contributing over 10% of total revenue included Client A with HKD 4,049,000, Client B with HKD 1,614,000, and Client C with HKD 8,328,000 for the six months ended December 31, 2020[20] - Revenue decreased by approximately 71.5% from about HKD 155.3 million for the six months ended December 31, 2019, to about HKD 44.3 million for the six months ended December 31, 2020, due to a reduction in construction orders and project delays caused by COVID-19[45] Shareholder Information - The company did not recommend any interim dividend for the six months ended December 31, 2020, consistent with the previous year[24] - Mr. Guo Dongqiang held 250,000,000 shares, representing 31.25% of the company, through a controlled corporation[68] - Major shareholder Best Brain held 250,000,000 shares, also representing 31.25% of the issued share capital[71] - The board did not recommend any interim dividend for the six months ended December 31, 2020[79] Corporate Governance and Compliance - The group confirmed compliance with the corporate governance code during the reporting period[77] - The Audit Committee was established on March 9, 2016, to oversee financial reporting and internal control systems[83] - The Audit Committee consists of three independent non-executive directors, with Ms. Huang Shufang as the chairperson[83] - The company is committed to corporate governance and has established procedures for financial reporting and monitoring[83] Business Operations and Future Plans - The company’s main business is investment holding and providing construction services in Hong Kong[13] - The company entered into a cooperation agreement with Jin Ning Development Co., Ltd. on December 14, 2020, to explore new business and investment opportunities in Nanning, Guangxi, China[43] - On December 29, 2020, the company agreed to acquire 65% of the issued share capital of Hong Tai Engineering Development Co., Ltd. and Ding Sheng Investment Development Co., Ltd. for a total consideration of HKD 13 million[63] - The company has decided to sell a joint venture project in Sai Kung due to delays in obtaining government approvals, reallocating resources to improve operational efficiency[41] - The company submitted approximately 30 bids for construction projects during the reporting period, indicating active market participation despite intense competition[40] Stock Options and Securities - The company has not granted any share options during the reporting period, maintaining the total number of options at 49,200,000[36] - The total number of stock options granted and unexercised as of December 31, 2020, is 49,200,000[82] - The exercise price for stock options granted on November 29, 2017, is HKD 0.371, with a closing price of HKD 0.385[82] - The exercise price for stock options granted on December 3, 2018, is HKD 0.307, with a closing price of HKD 0.300[82] - The exercise price for stock options granted on March 3, 2020, is HKD 0.245, with a closing price of HKD 0.245[82] Other Financial Information - The current ratio as of December 31, 2020, was approximately 2.5 times, compared to about 2.8 times as of June 30, 2020[52] - The debt-to-equity ratio was recorded at approximately 3.7% as of December 31, 2020, up from about 3.1% as of June 30, 2020, indicating a low level of debt relative to equity[53] - The company incurred a tax expense of HKD 202,000 for the three months ended December 31, 2020, compared to a tax benefit of HKD (530,000) in the same period of 2019[23] - The company has a revolving bank loan of HKD 5,000,000 as of December 31, 2020, unchanged from June 30, 2020[31] - There were no purchases, sales, or redemptions of the company's listed securities during the six months ended December 31, 2020[75] - No significant events requiring disclosure occurred after the reporting date[80]

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 第一季度業績報告 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上市公司通常為中小型公司，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。 本報告的資料乃遵照聯交所GEM證券上市規則（「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，確認就其深知及確信，本報告所載資 料在各重要方面均屬準確完備，沒有誤導或欺詐成份，且並無遺漏其他事項，足以令致本報 告所載任何陳述或本報告產生誤導。 1 第一季度業績報告 2020/21 宏強控股有限公司 第一季度業績 本公司董事會（「董事會」）欣然公佈本公司及其附屬公司（統稱「本集團」） ...

[Company Information](index=4&type=section&id=Company%20Information) The report provides basic corporate information including the board, committees, and key advisors - The report provides basic corporate information including the Board of Directors, committee members, company secretary, auditor, legal advisors, registered office, principal place of business, share registrar, principal bankers, and company website[6](index=6&type=chunk)[7](index=7&type=chunk) [Chairman's Statement](index=5&type=section&id=Chairman's%20Statement) The Group faces market uncertainty and is strategically transitioning from a contractor to a property developer - Amid market uncertainties from Hong Kong's political situation, Sino-US relations, and COVID-19, property construction orders have sharply declined, intensifying competition; the Group will continue to target projects with reasonable returns[8](index=8&type=chunk) - The Group is implementing a business transformation strategy, shifting from a property construction service provider to a developer role, having established a joint venture, Wang Tai Engineering Development Limited, to co-develop land in Sai Kung and a horticultural leisure park, while exploring new property development projects in Fanling[9](index=9&type=chunk) - The Group believes it has reached a turning point to actively participate as a developer and will continue to explore new business and investment opportunities to deliver additional shareholder returns[9](index=9&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) The Group's financial performance declined due to fewer construction orders, but it maintains a solid financial position while transitioning its business model [Business Review and Prospects](index=6&type=section&id=Business%20Review%20and%20Prospects) Revenue and profit fell sharply due to fewer construction orders and the disposal of a subsidiary, prompting a strategic shift towards a developer role - During the year, the Group operated approximately 25 construction projects, most of which were completed in previous years and are now in the preliminary completion stage, with new projects yet to commence[13](index=13&type=chunk) - Due to a decrease in construction orders and the disposal of a property management subsidiary, the Group's revenue **decreased by approximately 50%**, leading to a significant drop in profit after tax[13](index=13&type=chunk) - The Group has reached a turning point and will increasingly participate in project investment and take on a developer role, rather than solely undertaking property construction projects[14](index=14&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) The Group's revenue and net profit significantly declined by 57.2% and 85.1% respectively, primarily due to fewer construction orders Comparison of FY2020 and FY2019 Results | Indicator | FY2020 (HK$'000) | FY2019 (HK$'000) | Y-o-Y Change | Key Reasons | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 217,300 | 507,800 | -57.2% | Decrease in construction orders and disposal of a subsidiary | | **Direct Costs** | 196,200 | 456,000 | -57.0% | In line with the decrease in revenue and disposal of a subsidiary | | **Gross Profit** | 21,100 | 51,800 | -59.3% | In line with the decrease in revenue | | **Gross Profit Margin** | 9.7% | 10.2% | -0.5pp | No significant fluctuation | | **Administrative Expenses** | 24,600 | 33,900 | -27.4% | Disposal of a subsidiary | | **Income Tax Expense** | 400 | 4,000 | -90.0% | Decrease in assessable profits | | **Profit Attributable to Owners** | 2,400 | 16,100 | -85.1% | Decrease in revenue | [Liquidity and Financial Resources](index=7&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintained a healthy financial position with increased cash balances, reduced total liabilities, and a low gearing ratio of 3.1% Summary of Financial Position as at 30 June 2020 | Indicator | 30 June 2020 (HK$'000) | 30 June 2019 (HK$'000) | Change | | :--- | :--- | :--- | :--- | | **Bank Balances and Cash** | 131,400 | 93,100 | ▲ 41.1% | | **Pledged Bank Balances** | 15,900 | 64,500 | ▼ 75.4% | | **Total Interest-bearing Borrowings** | 5,000 | 5,000 | - | | **Total Assets** | 242,200 | 270,300 | ▼ 10.4% | | **Total Liabilities** | 82,600 | 106,100 | ▼ 22.1% | | **Shareholders' Equity** | 159,600 | 164,200 | ▼ 2.8% | | **Current Ratio** | 2.8 times | 2.4 times | ▲ 0.4 | | **Gearing Ratio** | 3.1% | 3.0% | ▲ 0.1pp | - All of the Group's business activities and borrowings are transacted in Hong Kong dollars, posing no significant foreign exchange risk, and no foreign currency hedging policy has been formulated[29](index=29&type=chunk) [Material Acquisitions and Disposals](index=8&type=section&id=Material%20Acquisitions%20and%20Disposals) The Group formed a joint venture to develop land and operate a leisure park in Sai Kung, holding a 65% equity interest - On 8 August 2019, a joint venture was established with an independent third party to co-operate in the development of land and a horticultural business in Sai Kung, as well as to operate a leisure park[34](index=34&type=chunk) - The Group holds **65% of the equity** in the joint venture, which has been accounted for as a subsidiary of the Group[34](index=34&type=chunk) [Employees and Remuneration Policies](index=9&type=section&id=Employees%20and%20Remuneration%20Policies) The Group employed 53 staff with an annual cost of approximately HK$25.6 million, offering competitive remuneration packages Employee and Cost Overview | Indicator | 30 June 2020 | 30 June 2019 | | :--- | :--- | :--- | | **Total Employees** | 53 employees | 62 employees | | **Annual Staff Costs** | Approx. HK$25,600,000 | Approx. HK$95,900,000 | [Principal Risks and Uncertainties](index=9&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group's primary risks include reliance on successful tenders, subcontractors, and a few major customers, alongside business growth uncertainties - The Group's principal risks include: - Failure to maintain historical growth rates and profit margins - Business reliance on successful tenders, which are non-recurring in nature - Dependence on subcontractors for project completion and machinery supply - Uncertainty in the clear determination of price variations in works - Exposure to credit risk of customers - Reliance on a few major customers[41](index=41&type=chunk) [Biographical Details of Directors and Senior Management](index=11&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management) This section details the professional backgrounds, qualifications, and responsibilities of the executive directors, independent non-executive directors, and senior management - This section provides detailed biographies of the executive directors, independent non-executive directors, and senior management, including their age, position, responsibilities, industry experience, academic background, and professional qualifications[47](index=47&type=chunk)[48](index=48&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [Corporate Governance Report](index=14&type=section&id=Corporate%20Governance%20Report) The company outlines its governance structure, including the board and its committees, risk management framework, and shareholder rights policies [The Board of Directors](index=14&type=section&id=The%20Board%20of%20Directors) The Board comprises five directors, meeting GEM Listing Rules for independence and qualifications, and held seven meetings during the year - The Board consists of two Executive Directors (Mr Kwok Tung Keung and Mr Ko Chun Hay) and three Independent Non-executive Directors (Ms Wong Suk Fong, Mr Shiu Ting Man and Mr Ng Man Lei), in compliance with the Listing Rules[64](index=64&type=chunk) - During the year ended 30 June 2020, **seven Board meetings** were held, with most directors attending all meetings[67](index=67&type=chunk)[68](index=68&type=chunk) [Board Committees](index=17&type=section&id=Board%20Committees) The company has established Audit, Remuneration, and Nomination Committees to assist the Board in fulfilling its duties - The Audit Committee, chaired by Ms Wong Suk Fong, comprises three Independent Non-executive Directors and is responsible for overseeing financial reporting, internal control, and risk management systems; it held four meetings during the year[78](index=78&type=chunk)[81](index=81&type=chunk)[83](index=83&type=chunk) - The Remuneration Committee, chaired by Ms Wong Suk Fong, consists of five members and is responsible for recommending remuneration policies and structures to the Board; it held two meetings during the year[86](index=86&type=chunk) - The Nomination Committee, chaired by Mr Ng Man Lei, consists of five members and is responsible for reviewing the Board's composition and nominating director candidates; it held two meetings during the year[89](index=89&type=chunk) [Risk Management and Internal Control](index=23&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board oversees the risk management and internal control systems, which it has reviewed and deemed effective and adequate - The Board is collectively responsible for monitoring the design, implementation, and effectiveness of the risk management and internal control systems, and has reviewed all material controls, including financial, operational, and compliance controls[98](index=98&type=chunk) - The Board has conducted an annual review of the effectiveness of the Group's risk management and internal control systems and considers them to be **effective and adequate**[99](index=99&type=chunk) [Shareholders' Rights](index=24&type=section&id=Shareholders'%20Rights) Shareholders holding at least 10% of voting shares can convene a special general meeting, with procedures outlined for director nominations - Shareholders holding not less than **one-tenth of the paid-up capital** of the Company carrying the right of voting at general meetings may request to convene a special general meeting[107](index=107&type=chunk) - Shareholders may nominate a candidate for directorship by following the prescribed procedures, which require submitting a written notice to the Company's head office within a specified period[109](index=109&type=chunk) [Environmental, Social and Governance Report](index=26&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) The report details the Group's performance in workplace quality, environmental protection, operational practices, and community involvement [A) Workplace Quality](index=29&type=section&id=A)%20Workplace%20Quality) The Group employed 53 staff, maintained a safe work environment with no work-related fatalities, and adhered to fair labor standards Workforce Structure (as at 30 June 2020) | Category | Breakdown | Number of Employees | | :--- | :--- | :--- | | **Total** | | **53** | | **By Gender** | Male | 40 | | | Female | 13 | | **By Function** | Senior Management | 13 | | | Operations Team | 28 | | | Back Office | 12 | | **By Age** | Below 30 | 5 | | | 30 - 50 | 23 | | | Above 50 | 25 | - During the reporting period, there was one case of minor deviation from construction site safety regulations resulting in a **fine of HK$13,000**, with **no work-related fatalities or injuries**[133](index=133&type=chunk) [B) Environment](index=32&type=section&id=B)%20Environment) The Group reduced its environmental footprint, with lower greenhouse gas emissions and construction waste, supported by its ISO 14001 certification Key Environmental Performance Indicators | Indicator | Unit | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Total GHG Emissions** | Tonnes CO2e | 80 | 89 | | **Construction Waste** | Tonnes | 4,073 | 4,988 | | **Electricity Consumption** | kWh | 60,772 | 73,607 | | **Water Consumption** | m³ | 577 | 758 | - The Company has established an Integrated Management System and is certified with **ISO 14001:2004 (Environmental Management)** and **OHSAS 18001:2007 (Occupational Health and Safety)**[152](index=152&type=chunk) [C) Operating Practices](index=36&type=section&id=C)%20Operating%20Practices) The Group maintains strict supply chain monitoring, ensures product quality through its ISO 9001 system, and upholds anti-corruption policies - The Company has established a quality management system compliant with **ISO 9001:2008** standards to ensure the quality of its works[160](index=160&type=chunk) - The Company has formulated an anti-fraud policy and a whistle-blowing policy, and implements internal controls to prevent and detect fraudulent activities, ensuring business integrity[164](index=164&type=chunk)[165](index=165&type=chunk) [D) Community Involvement](index=37&type=section&id=D)%20Community%20Involvement) The Group demonstrated its commitment to social responsibility by donating approximately HK$1.04 million to support students in need - During the reporting period, the Company donated approximately **HK$1,036,000** to charitable organizations to support the education of students in need[167](index=167&type=chunk) [Directors' Report](index=38&type=section&id=Directors'%20Report) The report covers the Group's principal activities, dividend policy, major customer and supplier dependencies, and directors' interests in shares - The Group is principally engaged in general building works, specialised building works, and property development in Hong Kong, with no significant changes in the nature of its principal activities during the year[171](index=171&type=chunk) - The Board does not recommend the payment of a final dividend for the year ended 30 June 2020 (2019: **HK2.5 cents per share**)[174](index=174&type=chunk) Major Customer and Supplier Concentration | Category | Concentration | FY2020 | FY2019 | | :--- | :--- | :--- | :--- | | **Major Customers** | Top 5 customers' share of total revenue | 84.4% | 87.8% | | | Largest customer's share of total revenue | 34.6% | 38.5% | | **Major Suppliers** | Top 5 suppliers & subcontractors' share of total direct costs | 32.4% | 22.2% | | | Largest subcontractor's share of total direct costs | 9.8% | 7.5% | - As at 30 June 2020, Chairman Mr Kwok Tung Keung held a total interest of approximately **32.88%** through controlled corporations and personal beneficial ownership, while CEO Mr Ko Chun Hay beneficially owned approximately **23.69%** of the shares[184](index=184&type=chunk) [Independent Auditor's Report](index=45&type=section&id=Independent%20Auditor's%20Report) The auditor issued an unqualified opinion, stating the financial statements give a true and fair view, with key audit matters identified - The auditor concluded that the consolidated financial statements give a true and fair view of the Group's financial position as at 30 June 2020, and of its financial performance and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[218](index=218&type=chunk) - Key audit matters included: 1. **Revenue and profit recognition from construction services and contract assets**: due to significant judgment involved in their estimation and their material impact on the financial statements 2. **Trade receivables and contract assets**: impairment testing involves judgment and estimation[221](index=221&type=chunk)[225](index=225&type=chunk) [Consolidated Financial Statements](index=49&type=section&id=Consolidated%20Financial%20Statements) The statements present the Group's financial performance, position, equity changes, and cash flows for the fiscal year [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=49&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue was HK$217 million and profit for the year was HK$2.0 million, representing significant year-over-year declines FY2020 Income Statement Summary | Indicator (HK$'000) | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 217,287 | 507,796 | | **Gross Profit** | 21,075 | 51,805 | | **Operating Profit** | 2,721 | 20,559 | | **Profit Before Tax** | 2,477 | 20,009 | | **Profit and Total Comprehensive Income for the Year** | 2,034 | 16,003 | | **Profit Attributable to Owners of the Company** | 2,363 | 16,120 | | **Basic Earnings Per Share (HK cents)** | 0.30 | 2.02 | [Consolidated Statement of Financial Position](index=50&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of 30 June 2020, the Group had total assets of HK$242 million and net assets of HK$160 million Summary of Statement of Financial Position as at 30 June 2020 | Indicator (HK$'000) | 2020 | 2019 | | :--- | :--- | :--- | | **Non-current Assets** | 16,076 | 14,003 | | **Current Assets** | 226,133 | 256,270 | | **Total Assets** | 242,209 | 270,273 | | **Current Liabilities** | 81,644 | 106,094 | | **Non-current Liabilities** | 979 | – | | **Total Liabilities** | 82,623 | 106,094 | | **Net Assets** | 159,586 | 164,179 | | **Total Equity** | 159,586 | 164,179 | [Consolidated Statement of Changes in Equity](index=51&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from HK$164 million to HK$160 million, mainly due to the payment of a HK$20 million dividend - During the year, total equity decreased from **HK$164 million to HK$160 million**, primarily due to the payment of a **HK$20 million dividend**, partially offset by the profit for the year of HK$2.03 million and capital injection from non-controlling interests[240](index=240&type=chunk) [Consolidated Statement of Cash Flows](index=52&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group's cash and cash equivalents increased by HK$38.4 million, reaching a year-end balance of HK$131.4 million FY2020 Cash Flow Statement Summary | Indicator (HK$'000) | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash Generated from Operating Activities** | 25,174 | 15,477 | | **Net Cash from Investing Activities** | 34,348 | 8,760 | | **Cash Used in Financing Activities** | (21,175) | (20,713) | | **Net Increase in Cash and Cash Equivalents** | 38,347 | 3,524 | | **Cash and Cash Equivalents at Beginning of Year** | 93,097 | 89,573 | | **Cash and Cash Equivalents at End of Year** | 131,444 | 93,097 | [Notes to the Financial Statements](index=54&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed supplementary information on accounting policies, financial risk management, and segment data for the consolidated financial statements - This section provides detailed explanations and supplementary information for the consolidated financial statements, covering general corporate information, adoption of new and revised accounting standards (such as HKFRS 16 'Leases'), significant accounting policies, key accounting estimates, financial risk management, segment information, and breakdowns of various assets, liabilities, income, and expense items[246](index=246&type=chunk)[248](index=248&type=chunk)[253](index=253&type=chunk)[313](index=313&type=chunk) [Financial Summary](index=99&type=section&id=Financial%20Summary) A five-year overview of the Group's key financial results, assets, and liabilities is presented Five-Year Financial Summary | For the year ended 30 June (HK$'000) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Results** | | | | | | | Revenue | 217,287 | 507,796 | 498,638 | 651,426 | 560,280 | | Profit for the Year | 2,034 | 16,003 | 8,340 | 5,905 | 6,010 | | **Assets and Liabilities** | | | | | | | Total Assets | 242,209 | 270,273 | 283,681 | 304,701 | 277,683 | | Total Liabilities | (82,623) | (106,094) | (111,751) | (150,847) | (129,734) | | Total Equity | 159,586 | 164,179 | 171,930 | 153,854 | 147,949 |

Financial Performance The Group experienced significant declines in revenue and profit for the nine months ended March 31, 2020, with total equity decreasing due to dividend payments [Consolidated Statement of Profit or Loss](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue and profit significantly declined for the nine months ended March 31, 2020, reflecting substantial year-on-year decreases in key financial metrics Consolidated Statement of Profit or Loss Summary (For the nine months ended March 31) | Metric | 2020 (HKD thousands) | 2019 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 197,911 | 377,828 | -47.6% | | Gross Profit | 25,056 | 35,322 | -28.9% | | Profit Before Tax | 5,454 | 7,756 | -29.7% | | Profit for the Period | 4,555 | 5,955 | -23.5% | | Profit Attributable to Owners of the Company | 4,785 | 5,955 | -19.5% | | Basic Earnings Per Share (HK cents) | 0.60 | 0.74 | -18.9% | [Consolidated Statement of Changes in Equity](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total equity decreased from HKD 164 million to HKD 150 million as of March 31, 2020, primarily due to significant dividend payments - Total equity decreased from **HKD 164 million** as of July 1, 2019, to **HKD 150 million** as of March 31, 2020[4](index=4&type=chunk) - **HKD 20 million** in dividends paid during the period was the primary factor contributing to the decrease in equity[4](index=4&type=chunk) Notes to the Financial Statements This section details the company's core business, financial statement preparation, revenue segmentation, tax, dividends, EPS, and share-based payment transactions [General Information and Basis of Preparation](index=5&type=section&id=1.%20General%20Information%20%26%202.%20Basis%20of%20Preparation) The company, a Cayman Islands investment holding firm, primarily offers Hong Kong property construction services, with financial statements prepared under HKFRS and reviewed by the Audit Committee - The Group's principal business is providing **property construction services in Hong Kong**[7](index=7&type=chunk) - The unaudited condensed consolidated financial statements have been prepared in accordance with **Hong Kong Financial Reporting Standards (HKFRS)**[9](index=9&type=chunk) [Revenue and Segment Information](index=6&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's revenue is almost entirely from general building construction, with this segment's revenue significantly decreasing year-on-year Segment Revenue (For the nine months ended March 31) | Business Segment | 2020 (HKD thousands) | 2019 (HKD thousands) | | :--- | :--- | :--- | | General Building Construction | 197,911 | 318,401 | | Specialized Building Construction | – | 348 | | **Total** | **197,911** | **318,749** | - The Group's operating segments are categorized into "General Building Construction" for residential, commercial, and industrial building projects, and "Specialized Building Construction" for demolition, site formation, and foundation works[15](index=15&type=chunk) [Income Tax, Dividends, and Earnings Per Share](index=7&type=section&id=4.%20Income%20Tax%20Expense%2C%205.%20Dividends%2C%206.%20Earnings%20Per%20Share) Income tax expense halved due to decreased profit before tax, with no interim dividend recommended, and basic earnings per share declined - The Board does not recommend the payment of an interim dividend for the nine months ended March 31, 2020[19](index=19&type=chunk) - Basic earnings per share was **0.60 HK cents**, down from **0.74 HK cents** in the prior period[3](index=3&type=chunk)[20](index=20&type=chunk) - Hong Kong profits tax is provided at a rate of **16.5%** on estimated assessable profits, with current period tax expense at **HKD 0.899 million** compared to **HKD 1.801 million** in the prior period[18](index=18&type=chunk) [Share-based Payment Transactions](index=8&type=section&id=7.%20Share-based%20Payment%20Transactions) The company's share option scheme saw 16.1 million options granted and 3 million forfeited, resulting in 49.2 million outstanding options and an expense recognized Share Option Movement | Item | Number of Share Options | | :--- | :--- | | As at July 1, 2019 | 36,100,000 | | Granted during the period | 16,100,000 | | Forfeited during the period | (3,000,000) | | **As at March 31, 2020** | **49,200,000** | - As of March 31, 2020, outstanding share options represented **6.2%** of the company's issued shares[24](index=24&type=chunk) - The Group recognized an expense of approximately **HKD 0.8 million** for share options granted during the period[27](index=27&type=chunk) Management Discussion and Analysis This section provides an overview of the Group's financial performance, business operations, and future outlook, including challenges and strategic initiatives [Financial Review](index=11&type=section&id=Financial%20Review) Revenue significantly decreased due to fewer orders and a subsidiary disposal, while gross profit margin improved and administrative expenses decreased due to cost control - Revenue decreased by **47.6%** to **HKD 197.9 million**, primarily due to fewer construction orders and the disposal of a subsidiary in February 2019[29](index=29&type=chunk) - Gross profit margin improved from **9.3%** in the prior period to **12.7%**, mainly due to higher gross margins on certain projects during the period[31](index=31&type=chunk) - Administrative expenses decreased by **27.5%** to **HKD 20.3 million**, primarily due to reduced staff costs (including lower share-based payments and staff streamlining due to decreased revenue) and the disposal of a subsidiary[33](index=33&type=chunk) [Business Review and Outlook](index=12&type=section&id=Business%20Review%20and%20Outlook) The Group faces intense market competition and revenue decline, but is confident in its construction business and exploring new investment opportunities, with a joint venture project expected to contribute revenue - The construction market is extremely competitive, making it difficult to secure new projects even with reduced profit margins[37](index=37&type=chunk) - The Group maintains its policy of bidding at reasonable profit margins, avoiding operational loss risks to secure projects, and has taken the opportunity to streamline its management team[37](index=37&type=chunk) - The Board is considering other investment opportunities to broaden the Group's return base and enhance shareholder returns[37](index=37&type=chunk) - The Group has commenced landscaping works for a Sai Kung joint venture project, with revenue expected to be recognized in the fourth quarter[37](index=37&type=chunk) Disclosure of Interests and Corporate Governance This section outlines director and major shareholder interests, details the share option scheme, and confirms adherence to corporate governance standards [Directors' and Major Shareholders' Interests](index=13&type=section&id=A.%20Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20or%20Debentures%20%26%20B.%20Major%20Shareholders%27%20and%20Other%20Persons%27%20Interests%20and%20Short%20Positions%20in%20Shares%20or%20Underlying%20Shares) As of March 31, 2020, directors Mr. Kwok Tung Keung and Mr. Ko Chun Hei held significant interests, alongside major shareholders Best Brain and Chuang Gao Directors' Shareholdings (As at March 31, 2020) | Director Name | Nature of Interest | Number of Shares Held | Number of Share Options | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Kwok Tung Keung | Interest in Controlled Corporation | 250,000,000 | - | 31.25% | | | Beneficial Owner | - | 15,800,000 | 1.98% | | Mr. Ko Chun Hei | Beneficial Owner | 189,500,000 | - | 23.69% | | | Beneficial Owner | - | 15,800,000 | 1.98% | Major Shareholders' Interests (As at March 31, 2020) | Shareholder Name | Nature of Interest | Number of Shares Held | Percentage | | :--- | :--- | :--- | :--- | | Best Brain | Beneficial Owner | 250,000,000 | 31.25% | | Chuang Gao | Beneficial Owner | 160,000,000 | 20.00% | [Share Option Scheme](index=16&type=section&id=Share%20Option%20Scheme) The company's 2016 share option scheme had 49.2 million outstanding options as of March 31, 2020, representing 6.2% of issued capital, with some options lapsing during the period - As of March 31, 2020, the total number of share options granted and outstanding under the share option scheme was **49,200,000**, representing approximately **6.2%** of the issued share capital[52](index=52&type=chunk) Summary of Share Option Movements During the Period | Item | As at July 1, 2019 | Granted during the period | Cancelled/Forfeited during the period | As at March 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total** | **36,100,000** | **16,100,000** | **3,000,000** | **49,200,000** | [Corporate Governance](index=15&type=section&id=Corporate%20Governance%20Code%20%26%20Audit%20Committee) The company complied with the GEM Listing Rules' Corporate Governance Code, and the Audit Committee, composed of independent non-executive directors, reviewed the quarterly report and financial statements - During the relevant period, the company consistently complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules[48](index=48&type=chunk) - The Audit Committee, comprising three independent non-executive directors with Ms. Wong Suk Fong as chairperson, has reviewed this report and the financial statements[54](index=54&type=chunk)

C M Y CM MY CY CMY K 香港聯合交易所有限公司（「聯交所」）GEM（「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。GEM的較高風險及 其他特色表示GEM較適合專業及其他資深投資者。 由於GEM上市公司的新興性質使然，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」）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，本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分， 且並 ...

[First Quarterly Report 2019/20 Overview](index=1&type=section&id=FIRST%20QUARTERLY%20REPORT%202019%2F20) [Characteristics of the GEM Market and Directors' Responsibility Statement](index=2&type=section&id=GEM%E4%B9%8B%E7%89%B9%E8%89%B2) The company's shares are listed on GEM, a market for high-risk SMEs, and directors affirm this report's accuracy - The company's shares are listed on GEM of The Stock Exchange of Hong Kong Limited, a market positioned for small and mid-sized companies with high investment risks[3](index=3&type=chunk) - The directors confirm that the information in this report is accurate, complete, and not misleading or deceptive in all material respects, with no omission of other matters[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=%E7%AC%AC%E4%B8%80%E5%AD%A3%E5%BA%A6%E6%A5%AD%E7%B8%BE) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%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%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The Group's revenue and gross profit declined significantly, resulting in a 67% year-on-year drop in total comprehensive income **Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the three months ended September 30)** | Metric | 2019 (HK$'000) | 2018 (HK$'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 85,397 | 124,929 | -31.6% | | Cost of sales | (78,402) | (110,680) | -29.2% | | Gross profit | 6,995 | 14,249 | -50.9% | | Other income | 180 | 73 | +146.6% | | Administrative expenses | (5,762) | (10,025) | -42.5% | | Finance costs | (54) | (110) | -50.9% | | Profit before tax | 1,359 | 4,187 | -67.5% | | Income tax expense | (308) | (975) | -68.4% | | Profit and total comprehensive income for the period | 1,051 | 3,212 | -67.2% | | Profit and total comprehensive income attributable to owners of the Company | 1,051 | 3,168 | -66.8% | | Basic and diluted earnings per share (HK cents) | 0.13 | 0.40 | -67.5% | [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) Total equity attributable to owners was HK$165,230 thousand, slightly increasing due to profit contributions during the period **Summary of Condensed Consolidated Statement of Changes in Equity (As at September 30)** | Metric | 30 September 2019 (HK$'000) | 30 September 2018 (HK$'000) | | :--- | :--- | :--- | | Share capital | 8,000 | 8,000 | | Share premium | 40,903 | 40,903 | | Capital injection | 11,572 | 11,572 | | Share option reserve | 3,784 | 3,649 | | Retained earnings | 100,971 | 105,560 | | Sub-total attributable to owners of the Company | 165,230 | 169,684 | | Non-controlling interests | — | 5,458 | | Total | 165,230 | 175,142 | - As at 30 September 2019, total equity attributable to owners of the Company was **HK$165,230 thousand**, an increase of HK$1,051 thousand from HK$164,179 thousand as at 1 July 2019, consistent with the total profit for the period[6](index=6&type=chunk) [Notes to the Financial Statements](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. General Information](index=5&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Group, incorporated in the Cayman Islands and listed on GEM in 2016, primarily provides property construction services in Hong Kong - The Company was incorporated in the Cayman Islands on 22 September 2015 and listed on the GEM of the Stock Exchange on 30 March 2016[8](index=8&type=chunk) - The Group's principal activity is the provision of property construction services in Hong Kong[9](index=9&type=chunk) [2. Basis of Preparation and Accounting Policies](index=5&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) Financial statements are prepared per HKFRS and GEM Listing Rules, with no material impact from new standards adopted this period - The financial statements have been prepared in accordance with Hong Kong Generally Accepted Accounting Principles, Hong Kong Financial Reporting Standards, and the applicable disclosure requirements of the GEM Listing Rules[10](index=10&type=chunk) - The adoption of new or revised Hong Kong Financial Reporting Standards has had **no material impact** on the Group's reported results and financial position[10](index=10&type=chunk) - The accounting policies and calculation methods used are consistent with those for the annual financial statements for the year ended 30 June 2019, detailing the accounting for equity-settled share-based payment transactions[12](index=12&type=chunk)[13](index=13&type=chunk) [3. Revenue Composition](index=7&type=section&id=3.%20%E6%94%B6%E5%85%A5) The Group's revenue is primarily from general building works, as building management services have been discontinued - Revenue represents the fair value of amounts received and receivable for services provided to external customers, net of discounts[15](index=15&type=chunk) **Revenue by Operating Segment (For the three months ended September 30)** | Operating Segment | 2019 (HK$'000) | 2018 (HK$'000) | | :--- | :--- | :--- | | General building works | 85,397 | 100,361 | | Specialised building works | — | — | | Building management services | — | 24,568 | | **Total** | **85,397** | **124,929** | [4. Income Tax Expense](index=7&type=section&id=4.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased significantly year-on-year due to a reduction in assessable profits **Income Tax Expense (For the three months ended September 30)** | Metric | 2019 (HK$'000) | 2018 (HK$'000) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 308 | 975 | - Hong Kong Profits Tax has been provided at a rate of **16.5%** on the estimated assessable profits of the Group for the period[19](index=19&type=chunk) [5. Dividend Policy](index=8&type=section&id=5.%20%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the period, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the period (2018: Nil)[21](index=21&type=chunk) [6. Earnings Per Share Calculation](index=8&type=section&id=6.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share decreased significantly due to lower profit attributable to owners, with no diluted EPS presented **Earnings Per Share Calculation (For the three months ended September 30)** | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (HK$'000) | 1,051 | 3,168 | | Weighted average number of ordinary shares | 800,759,000 | 800,000,000 | | Basic and diluted earnings per share (HK cents) | 0.13 | 0.40 | - As there were no potential dilutive ordinary shares in issue during the review period, diluted earnings per share has not been presented[23](index=23&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Financial Review](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's key financial metrics declined significantly due to the disposal of a subsidiary and fewer construction orders - Revenue decreased by approximately **31.6% to HK$85.4 million**, mainly due to the disposal of a subsidiary and a decrease in construction orders[25](index=25&type=chunk) - Gross profit decreased by approximately **50.7% to HK$7.0 million**, driven by lower revenue and projects with lower gross profit margins[27](index=27&type=chunk) - Administrative expenses decreased by approximately **42.0% to HK$5.8 million**, primarily due to the disposal of a subsidiary[29](index=29&type=chunk) - Profit and total comprehensive income attributable to owners of the Company decreased by approximately **65.6% to HK$1.1 million**, mainly due to the decrease in gross profit[32](index=32&type=chunk) [Business Review and Outlook](index=10&type=section&id=%E5%9F%B7%E8%A1%8C%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) The Group will adopt a prudent strategy focusing on high-yield projects and exploring new business opportunities to diversify risk - The Group is principally engaged in general building works and specialised building works in Hong Kong[33](index=33&type=chunk) - The directors maintain a **conservative view of the Hong Kong property market**, which is expected to have a significant impact on the business[33](index=33&type=chunk) - A strategic business plan will be formulated, focusing on projects with reasonable returns while balancing risk and reward for each potential investment[33](index=33&type=chunk) - A joint venture has been established for business development and land horticulture in Sai Kung, New Territories, potentially integrating operations from property construction to land development and leisure parks[33](index=33&type=chunk) [Other Information](index=11&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) [A. Disclosure of Interests of Directors and Chief Executive](index=11&type=section&id=A.%20%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) The Chairman, Mr Kwok Tung Keung, and the CEO, Mr Ko Chun Hay, hold significant interests in the company's shares and options **Long Positions of Directors and Chief Executive in Shares (as at 30 September 2019)** | Name of Director | Nature of Interest | Number of Shares Held/Interested | Number of Share Options | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | | Mr Kwok Tung Keung | Interest in a controlled corporation | 250,000,000 | — | 31.25% | | | Beneficial owner | — | 13,000,000 | 1.63% | | Mr Ko Chun Hay | Beneficial owner | 189,500,000 | — | 23.69% | | | Beneficial owner | — | 13,000,000 | 1.63% | - Mr Kwok Tung Keung beneficially owns 100% of the share capital of Best Brain Investments Limited and is therefore deemed to be interested in the shares held by Best Brain[36](index=36&type=chunk) **Long Positions of Directors in Ordinary Shares of Associated Corporations (as at 30 September 2019)** | Name of Director | Name of Associated Corporation | Nature of Interest | Number of Shares Interested | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr Kwok | Best Brain | Beneficial owner | 7,500 | 100% | [B. Disclosure of Interests of Substantial Shareholders](index=12&type=section&id=B.%20%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) Best Brain Investments Limited and Chong Gao are the company's substantial shareholders, holding 31.25% and 20.00% respectively **Long Positions of Substantial Shareholders in Shares (as at 30 September 2019)** | Name of Shareholder | Nature of Interest | Number of Shares Held/Interested | Long/Short Position | Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | :--- | | Best Brain | Beneficial owner | 250,000,000 | Long | 31.25% | | Chong Gao | Beneficial owner | 160,000,000 | Long | 20.00% | [Competing Interests](index=13&type=section&id=%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) No directors, controlling shareholders, or their close associates held any business interests that compete with the Group's business - To the best knowledge of the directors, none of the directors, the controlling shareholders of the Company, or their respective close associates have any business or interest that competes or may compete with the business of the Group[41](index=41&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=13&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 its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period - During the relevant period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[42](index=42&type=chunk) [Compliance with Corporate Governance Code](index=13&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with the Corporate Governance Code, separating the roles of Chairman and CEO effective August 9, 2019 - 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[43](index=43&type=chunk) - To comply with Code Provision A.2.1 of the Corporate Governance Code, **Mr Kwok Tung Keung resigned as CEO**, and **Mr Ko Chun Hay was appointed as CEO** effective from 9 August 2019[43](index=43&type=chunk) [Code of Conduct for Directors' Securities Transactions](index=13&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 for directors' securities transactions, with which all directors have complied - The Group has adopted a code of conduct for securities transactions by directors on terms no less stringent than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[44](index=44&type=chunk) - Following specific enquiry of the directors, all directors have confirmed that they have complied with the required standard set out in the code of conduct during the relevant period[44](index=44&type=chunk) [Dividend](index=14&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividend for the period, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the relevant period (2018: Nil)[46](index=46&type=chunk) [Details of Share Option Scheme](index=14&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) A total of 36,100,000 share options remained outstanding as of the period end, with no options granted, exercised, or cancelled - The Company's shareholders approved and adopted the Share Option Scheme by way of a written resolution on 9 March 2016[47](index=47&type=chunk) - As at 30 September 2019, **36,100,000 share options were outstanding**[47](index=47&type=chunk) **Details of Outstanding Share Options (as at 30 September 2019)** | Grantee | Date of Grant | Exercise Price (HK$) | Outstanding at 30 September 2019 | | :--- | :--- | :--- | :--- | | Mr Kwok Tung Keung | 29 November 2017 | 0.371 | 7,900,000 | | | 3 December 2018 | 0.307 | 7,900,000 | | Mr Ko Chun Hay | 29 November 2017 | 0.371 | 7,900,000 | | | 3 December 2018 | 0.307 | 7,900,000 | | Mr Wu Si Cheng | 3 December 2018 | 0.307 | 3,000,000 | | Other employees | 29 November 2017 | 0.371 | 500,000 | | | 3 December 2018 | 0.307 | 1,000,000 | | **Total** | | | **36,100,000** | [Audit Committee Report](index=15&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited financial statements and internal controls - The Audit Committee was established on 9 March 2016 and consists of three independent non-executive directors, with Ms Wong Shuk Fong serving as the chairlady[48](index=48&type=chunk) - The primary duties of the Audit Committee are to review and supervise the Group's financial reporting process and internal control systems, nominate and monitor external auditors, and provide advice to the Board on corporate governance matters[48](index=48&type=chunk) - The Audit Committee has reviewed this report, the Group's unaudited condensed consolidated financial statements for the relevant period, and the effectiveness of the internal control systems[48](index=48&type=chunk) [Board of Directors' Signature and List of Directors](index=15&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This report was signed by the Chairman, Mr Kwok Tung Keung, on November 11, 2019, and includes the current list of directors - This report was signed and issued by the Chairman of the Board, Mr Kwok Tung Keung, on 11 November 2019[49](index=49&type=chunk)[50](index=50&type=chunk) - The Executive Directors are Mr Kwok Tung Keung and Mr Ko Chun Hay; the Non-executive Director is Mr Wu Si Cheng; and the Independent Non-executive Directors are Mr Shiu Ting Man, Mr So Chi Wai, and Ms Wong Shuk Fong[50](index=50&type=chunk)

香港聯合交易所有限公司（「聯交所」）GEM（「GEM 」）之特色 GEM的定位，乃為相比起其他在聯交所上市的中小型公司帶有較高投資風險之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。GEM的較高風險及其他特色表 示GEM較適合專業及其他資深投資者。 由於GEM上市公司通常為中小型公司，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」） 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，本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分，且並無遺漏其他事項，足以令 致本報告所載 ...

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：8262 2018/19 2018/19 第三季度業績報告 Super Strong Holdings Limited (Incorporated in the Cayman Islands with limited liability) Stock Code: 8262 Third Quarterly Report C M Y CM MY CY CMY K Super Strong 3Q2018-19 COV v01 high res output.pdf 1 9/5/2019 下午4:44 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。GEM的較高風險及其他特色表示GEM較適合專業及其他資 深投資者。 由於GEM上市公司新興的性質使然，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 ...

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：8262 2018/19 中期報告 Super Strong Holdings Limited (Incorporated in the Cayman Islands with limited liability) Stock Code: 8262 截至2018年12月31日止六個月 | | | 截至12月31日止三個月 | | 截至12月31日止六個月 | | | --- | --- | --- | --- | --- | --- | | | | 2018年 | 2017年 | 2018年 | 2017年 | | | 附註 | 千港元 | 千港元 | 千港元 | 千港元 | | | | （未經審核） | （未經審核） | （未經審核） | （未經審核） | | 收入 | 3 | 146,783 | 146,321 | 271,712 | 262,793 | | 直接成本 | | (135,746) | (133,776) | (246,426) | (243,357) | | 毛利 | | 11,037 | 12,545 | 25,286 | ...