Financial Performance - The group recorded approximately HKD 205.6 million in unaudited revenue for the six months ended June 30, 2019, representing an increase of about 12.0% compared to HKD 183.6 million for the same period in 2018[13]. - The unaudited profit for the six months ended June 30, 2019, was approximately HKD 4.2 million, a decrease of about 22.2% from HKD 5.4 million for the same period in 2018[13]. - Basic earnings per share for the six months ended June 30, 2019, were HKD 0.52, down from HKD 0.68 for the same period in 2018[13]. - Operating profit for the six months ended June 30, 2019, was HKD 3.7 million, compared to HKD 5.6 million for the same period in 2018[16]. - The total comprehensive income for the period was HKD 3.7 million, down from HKD 4.7 million for the same period in 2018[16]. - The company reported a net profit of HKD 5,419,000 for the six months ended June 30, 2019, compared to HKD 4,171,000 for the same period in 2018, reflecting a growth of 30%[31]. - Profit before tax for the six months ended June 30, 2019, was HKD 4,171,000, down 23.0% from HKD 5,419,000 in the same period of 2018[78]. Revenue and Income - Property management service revenue for the six months ended June 30, 2019, was HKD 205,588,000, an increase from HKD 183,636,000 in the same period of 2018, representing a growth of approximately 11.5%[64]. - The group’s total revenue for the three months ended June 30, 2019, was HKD 111.2 million, compared to HKD 92.1 million for the same period in 2018[16]. - The group’s other income for the six months ended June 30, 2019, was HKD 65 million, compared to HKD 108 million for the same period in 2018[16]. - Other income for the three months ended June 30, 2019, was HKD 53,000, down from HKD 65,000 in 2018, indicating a decrease of about 18.5%[67]. - Investment income from insurance contracts for the six months ended June 30, 2019, was HKD 33,000, consistent with the same period in 2018[68]. Expenses and Liabilities - Employee benefit expenses increased to HKD 186.5 million for the six months ended June 30, 2019, compared to HKD 165.8 million for the same period in 2018[16]. - Other operating expenses increased from approximately HKD 6.9 million for the six months ended June 30, 2018, to approximately HKD 9.9 million for the six months ended June 30, 2019[97]. - The group reported a net finance cost of HKD 203, compared to a net finance income of HKD 719 for the same period in 2018[16]. - Total liabilities increased to HKD 76,776,000, up from HKD 50,619,000, representing a rise of 51%[17]. - The total borrowings as of June 30, 2019, amounted to HKD 33,732,000, significantly up from HKD 13,854,000 as of December 31, 2018[90]. Assets and Cash Flow - Total assets increased to HKD 188,536,000 as of June 30, 2019, up from HKD 162,408,000 at the end of 2018, representing a growth of 16%[17]. - Cash and bank balances significantly increased to HKD 55,758,000, compared to HKD 30,208,000 in the previous period, marking an increase of 84%[17]. - Operating cash flow improved to HKD 7,155,000, up from HKD 1,685,000 in the prior year, indicating a substantial increase of 325%[32]. - Trade receivables rose to HKD 81,397,000, an increase of 7% from HKD 75,873,000 in December 2018[17]. - Cash and bank balances as of June 30, 2019, were approximately HKD 55.8 million, compared to approximately HKD 30.2 million as of December 31, 2018[102]. Dividends and Shareholder Information - The board resolved not to declare an interim dividend for the six months ended June 30, 2019, consistent with the previous year[13]. - The company incurred a dividend payment of HKD 4,000,000 during the period[31]. - The company declared a final dividend of HKD 4,000,000 for the year ended December 31, 2018, equivalent to HKD 0.5 per share[76]. - R5A Group Limited holds 491,440,000 shares, representing 61.43% of the company's issued share capital[120]. - Major shareholder R5A Group Limited is owned by various individuals, with Tan Mu Jie holding 55.23%[122]. Corporate Governance and Compliance - The audit committee has reviewed the unaudited consolidated results for the six months ended June 30, 2019, ensuring compliance with applicable accounting standards and GEM listing rules[136]. - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[137]. - The company has adhered to all corporate governance codes as per GEM listing rules since its listing date[131]. - The company is committed to maintaining best practices in corporate governance and has not deviated from the established codes[131]. - The compliance advisor has confirmed no ownership of the company's securities by its directors or employees as of June 30, 2019[130]. Accounting Policies and Standards - The company adopted Hong Kong Financial Reporting Standard 16 on January 1, 2019, resulting in a lease liability of HKD 540,000, which is discounted using an incremental borrowing rate of 5.13%[53]. - The company’s accounting policy changes have been applied retrospectively, with no need to restate comparative figures for the fiscal year 2018[53]. - The company has not adopted any new standards or amendments that would have a significant impact on the financial statements for the current period[52]. - The company’s lease payments and related interest components are classified as financing activities following the adoption of HKFRS 16[56]. - The company’s total lease liabilities include fixed payments and variable lease payments based on indices or rates[44].

Financial Performance - The company reported revenue of HKD 94,405,000 for the three months ended March 31, 2019, representing an increase of 3.0% compared to HKD 91,566,000 for the same period in 2018[11]. - Operating profit for the period was HKD 113,000, compared to HKD 659,000 before tax in the previous year, indicating a significant decrease in profitability[11]. - The net profit for the period was HKD 489,000, down from HKD 659,000 in the same quarter of 2018, reflecting a decline of approximately 26%[11]. - The total comprehensive income for the period was HKD 265,000, compared to HKD 659,000 in the previous year, showing a decrease of about 60%[11]. - Basic and diluted earnings per share were HKD 0.06 for the quarter, unchanged from the previous year[11]. - The group reported a profit of HKD 489,000 for the three months ended March 31, 2019, down from HKD 981,000 in the same period of 2018, indicating a decline of approximately 50.2%[44]. - Profit for the period decreased from approximately HKD 1 million for the period ended March 31, 2018, to approximately HKD 0.5 million for the period ended March 31, 2019, due to rising insurance and cleaning material costs[53]. Employee Expenses - The company incurred employee benefit expenses of HKD 87,339,000, which increased from HKD 85,556,000 in the prior year, indicating a rise of approximately 2.1%[11]. - The group incurred total employee benefits expenses of HKD 87,339,000 for the three months ended March 31, 2019, compared to HKD 85,556,000 for the same period in 2018, reflecting an increase of approximately 2.1%[42]. - The increase in employee benefit expenses reflects the hiring of additional staff for new contracts awarded by the Housing Authority and the Urban Renewal Authority[50]. - The group’s total retirement benefit costs for the defined contribution plan amounted to HKD 3,524,000 for the three months ended March 31, 2019, compared to HKD 3,351,000 in the same period of 2018, reflecting an increase of approximately 5.2%[42]. Revenue from Property Management - The group reported property management service revenue of HKD 94,405,000 for the three months ended March 31, 2019, compared to HKD 91,566,000 for the same period in 2018, representing a growth of approximately 3.0%[40]. - Revenue from property management services increased from approximately HKD 91.6 million for the period ended March 31, 2018, to approximately HKD 94.4 million for the period ended March 31, 2019, attributed to additional service fee income from new contracts[49]. Operating Expenses - Cleaning materials costs increased from approximately HKD 1.2 million for the period ended March 31, 2018, to approximately HKD 1.7 million for the period ended March 31, 2019, primarily due to waste disposal fees from new management contracts[51]. - Other operating expenses rose to approximately HKD 4.4 million for the period ended March 31, 2019, from approximately HKD 2.7 million for the period ended March 31, 2018, mainly due to increased insurance and compliance costs[52]. Corporate Governance and Compliance - The company is committed to maintaining compliance with the GEM listing rules and Hong Kong financial reporting standards[20]. - The company has adhered to all corporate governance codes as per GEM listing rules without any deviations as of March 31, 2019[71]. - The company has adopted a code of conduct for directors regarding securities trading, with no known violations reported up to March 31, 2019[72]. - The company has appointed a compliance advisor, Boshi Finance Limited, and there are no securities interests held by them as of March 31, 2019[70]. Market Outlook and Strategy - The company is optimistic about expanding its market share in the public housing property management services sector, anticipating growth alongside the development of Hong Kong's public housing market[54]. - The company plans to leverage opportunities in the public housing sector to enhance its business performance post-listing[54]. - The company continues to focus on property management services for public housing and related projects in Hong Kong, indicating ongoing market expansion efforts[17]. Shareholding and Ownership - R5A Group Limited holds approximately 61.43% of the company's issued share capital, with significant ownership by key executives[64]. - Key executive ownership includes 506,750,000 shares held by Ms. Tan Mu Jie and Mr. Wu Fu Hua, representing approximately 63.34% of the company's equity[57]. Other Financial Information - The group recognized lease liabilities of HKD 540,000, which were discounted using an incremental borrowing rate of 5.13% as of January 1, 2019[36]. - The total operating lease commitments disclosed as of December 31, 2018, amounted to HKD 566,000, with a reduction of HKD 26,000 due to discounting[36]. - The group adopted HKFRS 16 on January 1, 2019, which resulted in the recognition of right-of-use assets equivalent to the lease liabilities[35]. - The group’s deferred tax expense related to current and prior temporary differences was HKD 170,000 for the three months ended March 31, 2019, compared to HKD 320,000 in 2018, a decrease of approximately 46.9%[43]. - The group did not recommend the payment of dividends for the three months ended March 31, 2019, consistent with the previous year[46]. - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the three months ending March 31, 2019[73]. - There have been no significant subsequent events affecting the company or its group after March 31, 2019, up to the report date[76]. - The financial information in the report has not been audited, but the audit committee has reviewed the unaudited consolidated results for the three months ending March 31, 2019[77]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[79]. - The report is dated May 14, 2019, indicating the timeline of the financial disclosures[80].

Financial Performance - Total revenue for the year ended December 31, 2018, was approximately HKD 371.21 million, an increase of about 4.14% from HKD 356.44 million in 2017[12]. - Consolidated operating profit for the year was approximately HKD 15.12 million, a significant increase of about 652.24% compared to HKD 2.01 million in 2017[12]. - Earnings per share for the year ended December 31, 2018, was HKD 0.0152, compared to a loss per share of HKD 0.0034 in 2017[13]. - Total comprehensive income for the year ended December 31, 2018, was approximately HKD 11.25 million, compared to a total comprehensive loss of approximately HKD 1.83 million for the year ended December 31, 2017[32]. - The company reported a profit of approximately HKD 12.14 million for the year ended December 31, 2018, after deducting non-recurring listing expenses of about HKD 15.92 million[148]. - The return on equity (ROE) for the year was 10.86%, a significant improvement from -2.15% in 2017[148]. Dividends - The company did not declare any interim or special dividends for the year, but proposed a final dividend of HKD 0.005 per share, totaling HKD 4 million[13]. - The company proposed a final dividend of HKD 0.005 per share, totaling HKD 4 million for the year ended December 31, 2018[36]. - The board of directors emphasized a sustainable dividend policy to balance shareholder interests with prudent capital management[137]. Revenue Sources - Revenue from the Housing Authority, the company's largest customer, amounted to approximately HKD 367.49 million, accounting for 99% of total revenue[159]. - The increase in revenue was mainly due to additional service fee income from a new Home Ownership Scheme estate and a new independent security service contract awarded by the Urban Renewal Authority[20]. Expenses and Costs - Employee benefit expenses totaled approximately HKD 330.48 million for the year ended December 31, 2018, up from HKD 319.38 million in 2017, an increase of about 3.48%[27]. - Cleaning materials cost rose by 23.35% from approximately HKD 4.54 million in 2017 to approximately HKD 5.6 million in 2018[28]. - Other operating expenses increased by approximately 51.48%, from HKD 10.8 million in 2017 to HKD 16.36 million in 2018[29]. - Financial costs decreased from approximately HKD 1.44 million in 2017 to approximately HKD 0.6 million in 2018, a reduction of about 58.33%[30]. Corporate Governance - The company has maintained compliance with all provisions of the corporate governance code as of December 31, 2018[81]. - The board is committed to enhancing corporate governance standards in response to tightening regulatory requirements[81]. - The company emphasizes the importance of transparency and accountability as a listed entity[81]. - The board includes independent non-executive directors who provide independent opinions to enhance governance[67]. - The company has a dedicated compliance officer to ensure adherence to regulatory standards[77]. - The management team has extensive experience in property management and business development, with over 41 years in the industry[74]. - The company is actively reviewing its corporate governance practices to align with higher expectations from stakeholders[81]. Risk Management - The risk management framework aims to identify and manage risks at an acceptable level to achieve strategic objectives[119]. - The group has adopted a three-tier risk management approach to identify, analyze, assess, mitigate, and respond to risks[119]. - The board is committed to ensuring that the internal control and risk management mechanisms are adequate for the group's operations[118]. Shareholder Communication - The company has implemented a shareholder communication policy to provide information and facilitate active participation by shareholders[131]. - The company has multiple channels for communication with shareholders, including annual general meetings and a dedicated website[131]. Market Position and Strategy - The company plans to expand its property management portfolio by seizing opportunities in both public and private sectors for residential and/or commercial properties[15]. - The company is confident in increasing its market share despite fierce competition and rising costs due to minimum wage adjustments[14]. - The company will implement proactive marketing strategies and enhance cost control measures to overcome challenges in the property management service industry[19]. IPO and Financial Position - The actual net proceeds from the IPO were approximately HKD 34.85 million after deducting related expenses, which is lower than the estimated net proceeds of approximately HKD 44.5 million disclosed in the prospectus[53]. - As of December 31, 2018, approximately HKD 31.49 million of the IPO proceeds remained unutilized and were deposited in interest-bearing bank accounts[54]. - The group has utilized HKD 2.75 million and HKD 0.61 million from the IPO proceeds for performance guarantees and working capital for new housing contracts awarded by the Housing Authority[54]. Staff and Employment - The group employed 2,410 staff as of December 31, 2018, with employee benefit expenses amounting to approximately HKD 330.48 million for the year, an increase from HKD 319.38 million in 2017[51]. Compliance and Legal Matters - The company has complied with relevant laws and regulations that significantly impact its business and operations[150]. - The company has not identified any breaches of the securities trading code by directors since the listing date[104]. Shareholding Structure - R5A Group Limited holds 491,440,000 shares, representing approximately 61.43% of the company's issued share capital[178]. - Ms. Tan Mu Jie and Mr. Wu Fu Hua each have a beneficial interest in 504,960,000 shares, accounting for 63.12% of the company's equity[172]. - Ms. Yang Xiu Yun holds 57,120,000 shares, which is about 7.14% of the company's equity[178]. Stock Option Plan - The stock option plan aims to recognize and reward eligible participants for their contributions, enhance performance, and retain talent[183]. - The maximum number of shares that may be issued upon the exercise of options granted under the stock option plan is capped at 80,000,000 shares, which is 10% of the issued shares at the time of listing[186]. - The plan's authorization limit can be updated by shareholders at the general meeting, but the updated limit cannot exceed 10% of the issued shares at the time of approval[187].