Revenue Growth - For the six months ended June 30, 2022, the Group recorded total revenue of approximately MOP 127.1 million, an increase of approximately MOP 53.1 million or 71.8% from approximately MOP 74.0 million for the same period in 2021[8] - The increase in revenue was mainly due to the easing of local social quarantine measures for COVID-19, which improved construction progress for ongoing projects in Macau, and the successful management strategy to diversify risks leading to increased revenue from a new project in Hong Kong[8] - Revenue from Hong Kong projects for the Period 2022 was approximately MOP42.6 million, representing an increase of approximately 42.0% compared to MOP30.0 million for the Period 2021[13] - For the six months ended June 30, 2022, the company reported revenue of MOP 127,122,000, an increase from MOP 73,959,000 in the same period of 2021, reflecting a growth of approximately 72%[105] - Revenue from external customers for the six months ended June 30, 2022, was MOP 127,122,000, a significant increase of 72% compared to MOP 73,959,000 in 2021[144] Financial Performance - The overall gross profit for the Group was approximately MOP12.0 million for the Period 2022, with a gross profit margin decreasing from approximately 13.0% in Period 2021 to approximately 9.5% in Period 2022[23] - The gross profit for the same period was MOP 12,038,000, compared to MOP 9,604,000 in 2021, indicating a gross profit margin improvement[105] - The Group reported a net loss of approximately MOP1.4 million for the Period 2022, an improvement from a net loss of approximately MOP2.1 million in 2021[43] - Loss before taxation for the six months ended June 30, 2022, was MOP 950,000, a reduction from MOP 1,713,000 in the previous year[105] - The total comprehensive expense attributable to the owners of the company for the period was MOP 1,433,000, down from MOP 2,126,000 in 2021[105] Cost and Expenses - The Group's cost of sales amounted to approximately MOP115.1 million for the Period 2022, representing an increase of approximately 78.7% from approximately MOP64.4 million for the Period 2021[21] - Administrative expenses slightly decreased to approximately MOP 9.0 million in 2022, influenced by increased depreciation and reduced staff costs due to reallocation of engineering staff[37] - Total staff costs for the period 2022 amounted to approximately MOP11.1 million, an increase from approximately MOP7.5 million in the period 2021[70] Assets and Liabilities - As of June 30, 2022, total assets amounted to MOP 246,298,000, an increase from MOP 233,772,000 as of December 31, 2021, representing a growth of approximately 5.4%[107] - Current liabilities increased to MOP 48,417,000 from MOP 35,253,000, primarily driven by a rise in trade and other payables, which grew by 38% from MOP 29,450,000 to MOP 40,803,000[107] - Trade receivables increased to MOP 78,773,000 as of June 30, 2022, from MOP 54,648,000 as of December 31, 2021, representing a growth of 43.9%[161] - The total amount of other receivables was MOP 76,444,000 as of June 30, 2022, compared to MOP 54,981,000 in the previous period, marking an increase of 38.9%[161] Credit and Risk Management - As of June 30, 2022, the Group recognized cumulative credit loss allowance on contract assets and trade receivables of approximately MOP13.0 million and MOP4.1 million respectively[30] - Impairment loss provisions under the expected credit loss (ECL) model increased from approximately MOP 2.2 million in 2021 to approximately MOP 4.3 million in 2022, attributed to increased credit risk and slower certification of completed works[35] - The allowance for credit losses rose to MOP 4,057,000, compared to MOP 3,013,000 in the previous period, indicating an increase of 34.7%[161] Strategic Initiatives - The Group's focus remains on providing electrical-related E&M engineering works, including supply, installation, and maintenance for commercial and residential developments, hotels, and casinos in Macau[6] - The Group aims to actively seek opportunities in undertaking more E&M engineering services in the Hong Kong market and potential investments in the Greater China area[13] - The Group has developed its E&M maintenance department, including the acquisition of a workshop and equipment, to enlarge its revenue base for long-term growth[13] Market Conditions - The economy of Macau SAR experienced a GDP growth of 4.1% in Q4 2021 and 8.9% in Q1 2022, indicating a positive economic outlook despite ongoing uncertainties related to the COVID-19 pandemic[9] - Future travel restrictions and their impact on the economy remain uncertain due to the evolving conditions of the COVID-19 pandemic[9] - The Group continues to monitor the situation closely and adapt its strategies accordingly to ensure sustained growth and market presence[9] Corporate Governance - The company has maintained compliance with the Corporate Governance Code throughout the reporting period[90] - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the period, confirming compliance with applicable accounting standards[102] - The company confirmed it has maintained a sufficient amount of public float for its shares as required under the Listing Rules during the reporting period[92] Shareholder Information - Directors and chief executives hold significant interests, with Mr. MK Wan owning 1.5 billion shares, representing 75% of the issued share capital[82] - As of June 30, 2022, SEM Enterprises holds 1,500,000,000 shares, representing 75.00% of the issued share capital[88]

Market Expansion and Project Diversification - SEM Holdings Limited reported a diversification of market risks by engaging in new E&M engineering projects in Hong Kong through its wholly owned subsidiary, SEM Resources Limited[8]. - The scope of E&M engineering works includes supply, installation, and maintenance of electrical systems for commercial and residential developments, hotel developments, and casino renovations in Macau and Hong Kong[8]. - The company aims to enhance its market presence and mitigate uncertainties by expanding its project portfolio in the new Hong Kong segment[8]. - The Group was awarded 15 E&M engineering services projects with an aggregate contract sum of approximately MOP564.4 million during 2021[33]. - Additional project revenue generated in Hong Kong amounted to MOP78.3 million in 2021 compared to 2020[42]. - The Group continues to focus on providing electrical-related E&M engineering services, leveraging strong cooperation with customers, suppliers, and subcontractors[28]. - The Group is focused on expanding its E&M engineering services in Macau and Hong Kong markets[75]. Financial Performance and Revenue Growth - The Group recorded an annual revenue of approximately MOP200.0 million for the first time in 2017[10]. - The Group recorded total revenue of approximately MOP182.2 million in 2021, an increase of approximately MOP111.9 million or 159.4% from MOP70.2 million in 2020[34]. - The Group experienced a sharp increase in revenue in 2021 due to eased COVID-19 quarantine measures, leading to improved construction progress[21]. - The increase in revenue was mainly due to the easing of quarantine measures for COVID-19, which improved construction progress for ongoing projects[34]. - The Group's revenue increased by 159.4% from approximately MOP70.2 million in 2020 to approximately MOP182.2 million in 2021[45]. - The Group's profit margins were affected by higher labor and material costs in the Hong Kong market and intense competition in the construction sector[21]. Economic Context and Challenges - The Macau SAR economy saw a GDP increase of 68.6% and 32.9% in the second and third quarters of 2021, respectively, compared to the previous periods[23]. - The economic growth in Macau SAR for the second and third quarters of 2021 was 68.6% and 32.9% respectively, but still only reached 56.8% and 51.3% of the pre-pandemic level of 2019[25]. - The Group faced increased labor costs in the Macau market due to limited import labor quotas during the COVID-19 pandemic[21]. - The Group's net loss for the year was attributed to various factors, including increased labor costs and lower profit margins on awarded projects[21]. - The Group's performance in 2021 reflects a recovery trajectory despite ongoing challenges posed by the COVID-19 pandemic[25]. Management and Strategic Initiatives - The Group plans to strengthen its financial position to undertake larger E&M engineering projects and establish a maintenance department[15]. - The Group has developed its E&M maintenance department, including the acquisition of a workshop and equipment in 2021, to enlarge its revenue base[42]. - The management successfully implemented market strategies to diversify risks associated with COVID-19, leading to additional revenue from new projects in the Hong Kong segment[34]. - The Group's management is committed to long-term growth and stability in revenue, particularly through the development of the E&M maintenance department[28]. - The Group anticipates a better business environment post-COVID-19, despite facing increasing challenges in Macau since 2021[42]. Governance and Board Structure - The company emphasizes the importance of internal control and corporate governance, as highlighted by Mrs. Kan's role in providing strategic advice[114]. - The company has a diverse board with members holding various professional qualifications and extensive experience in their respective fields[116]. - The Board consists of eight Directors, including three executive Directors and five non-executive Directors, ensuring a balance of skills and experience[140]. - The company has complied with the Corporate Governance Code during the Year 2021 and will periodically review its governance policies[138]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee to oversee specific aspects of the Company's affairs[155]. Financial Management and Performance - The Group reported a net loss of approximately MOP5.0 million for the Year 2021, a significant improvement from a net loss of approximately MOP20.2 million in 2020[62]. - The Group's administrative expenses rose from approximately MOP18.2 million in 2020 to approximately MOP19.3 million in 2021, mainly due to increased staff costs and depreciation charges from the acquisition of a workshop[60]. - The Group's cost of sales rose by 169.2% to approximately MOP160.7 million in 2021 from approximately MOP59.7 million in 2020[47]. - The Group's income tax expense decreased from approximately MOP0.8 million in 2020 to MOP14,000 in 2021, primarily due to the recognition of deferred tax assets for tax losses[60]. - The Group's cash and cash equivalents were approximately MOP40.3 million, down from approximately MOP105.4 million as of December 31, 2020[62]. Risk Management and Operational Challenges - The Group has implemented a risk management system to mitigate operational risks, led by Directors who consider macro and microeconomic conditions in decision-making[68]. - Liquidity may be adversely affected if progress payments or retention money are not received on time, necessitating regular aging analysis to monitor financial pressure[66]. - The Group's operations are project-based and non-recurring, requiring competitive bidding for each new project, which poses a risk to revenue generation[65]. - The economic recession in the Macau casino market has contributed to increased credit risks for the Group[60]. Human Resources and Staff Management - Total staff costs for the Year 2021 were approximately MOP17.6 million, an increase from approximately MOP11.7 million in 2020[85]. - The Group had 63 full-time employees as of December 31, 2021, up from 39 in 2020[85]. - The Group's remuneration policy includes salary increments and discretionary bonuses based on performance assessments[85]. - The company emphasizes the importance of experienced leadership in its financial and operational management[126]. Future Outlook and Strategic Goals - The Group is optimistic about the prospects of the electrical-related E&M engineering industry in the coming years[28]. - The Group aims to bid for potential projects with higher gross profit margins to maintain a healthier gross margin[52]. - The Group aims to fully utilise the unutilised net proceeds within one year after 2021, impacted by the COVID-19 epidemic[93].

Financial Performance - SEM Holdings Limited reported an annual revenue of approximately MOP200.0 million for the first time in 2017, marking a significant milestone in its financial performance[10]. - The company achieved an annual revenue of approximately MOP70.0 million in 2008, reflecting its growth trajectory over the years[10]. - The Group recorded total revenue of approximately MOP70.2 million for the Year 2020, a decrease of approximately MOP132.9 million or 65.4% from approximately MOP203.1 million for the Year 2019[36]. - The overall gross profit for the provision of E&M engineering works declined to approximately MOP10.6 million for the Year 2020 from approximately MOP56.0 million for the Year 2019, with the gross profit margin decreasing from 27.6% to approximately 15.1%[49]. - The Group's gross profit decreased from approximately MOP56.0 million in 2019 to approximately MOP10.6 million in 2020, with a gross profit margin decline from 27.6% to approximately 15.1%[51]. - The Group reported a net loss of approximately MOP20.2 million for 2020, compared to a net profit of approximately MOP20.3 million in 2019[62]. - Adjusted net loss for 2020, excluding non-recurring listing expenses, was approximately MOP11.7 million, compared to an adjusted net profit of approximately MOP37.4 million in 2019[62]. Project Awards and Contracts - The company was awarded a project in 2019 for the supply and installation of electrical systems in a hotel development project at Lago Nam Van, Macau, with an initial contract sum of approximately MOP168.8 million[10]. - In 2016, SEM Holdings Limited secured a hotel renovation project at Avenida da Amizade, Macau, with an initial contract sum of approximately MOP120.6 million for various engineering works[10]. - SEM Holdings Limited's subsidiary, Ready System (Macau), was awarded its first residential apartment project with a total contract sum of approximately MOP34.8 million[10]. - The initial contract sum for a hospital development project in Cotai was approximately MOP123 million, while a data center project in Kwai Chung had an initial contract sum of approximately HK$42.0 million (equivalent to approximately MOP43.4 million)[21]. - The Group's backlog as of December 31, 2020, included 20 E&M engineering services projects with an aggregate outstanding contract sum of approximately MOP207.1 million[34]. - The Group won new E&M engineering projects from the Macau SAR Government with a contract sum of approximately MOP 123.0 million in early 2021[78]. - The Group has won new E&M engineering project tenders with a total contract sum of approximately HK$42.0 million (equivalent to approximately MOP43.4 million) in 2021[79]. Operational Challenges - The company recorded a significant loss for the year 2020, attributed to a sharp decrease in revenue due to various factors including project completions in 2019 and delays in ongoing projects[21]. - The company experienced delays in the tendering process and construction progress due to the weakened industry environment in Macau caused by COVID-19[21]. - The prolonged COVID-19 epidemic adversely affected the operations of a significant E&M engineering project, leading to increased credit risks[59]. - The decrease in revenue was attributed to the substantial completion of high-margin projects in 2019 and delays caused by COVID-19 quarantine measures[36]. - The company has emphasized the importance of cooperation with customers, suppliers, and subcontractors to achieve revenue growth in the coming years[22]. Strategic Focus and Market Position - The company has focused on providing electrical-related E&M engineering works, primarily in commercial and residential developments, hotel developments, and casino projects in Macau[7]. - SEM Holdings Limited's strategic focus on the Macau market positions it well for future growth opportunities in the region[7]. - The company continues to expand its project portfolio, indicating a robust pipeline for future revenue generation[7]. - The company aims to strengthen its financial position to undertake larger E&M engineering projects and has established an E&M maintenance department to enhance revenue[13]. - The Group plans to expand its operations by actively seeking opportunities in the Hong Kong market to stabilize its revenue base during the COVID-19 epidemic[39]. Corporate Governance - The company is focused on maintaining high standards of corporate governance and internal controls through its audit and remuneration committees[131]. - The board includes members with significant experience in both the private and public sectors, enhancing the company's governance and strategic decision-making[136]. - The company has adopted the Corporate Governance Code since its listing date on February 14, 2020, and has complied with all relevant provisions up to the date of the annual report[164]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee to oversee specific aspects of the Company's affairs[183]. - The independent non-executive Directors ensure high standards of regulatory reporting and provide effective independent judgment on corporate actions[185]. Financial Position and Liquidity - As of December 31, 2020, cash and cash equivalents were approximately MOP 105.4 million, up from approximately MOP 33.6 million in 2019, indicating a solid financial position[65]. - Working capital as of December 31, 2020, was approximately MOP 220.1 million, compared to approximately MOP 136.0 million in 2019, reflecting improved liquidity[65]. - Total equity attributable to owners increased to approximately MOP 235.9 million in 2020 from approximately MOP 151.4 million in 2019[65]. - The gearing ratio decreased to approximately 15.4% as of December 31, 2020, down from approximately 36.8% in 2019, due to reduced trade payables and increased shareholders' equity[65]. Human Resources - Total staff costs for the year 2020 were approximately MOP11.7 million, an increase from approximately MOP7.1 million in 2019[89]. - The Group's workforce increased to 39 full-time employees as of December 31, 2020, up from 23 employees in the previous year[89]. Future Outlook - The company is optimistic about the prospects of the electrical-related E&M engineering industry despite challenges posed by the COVID-19 pandemic[22]. - Management remains cautiously optimistic about the E&M markets in Macau and Hong Kong after the recovery from the epidemic[40]. - The Group has developed its E&M maintenance department and acquired certain equipment in 2020 to enlarge its revenue base post-epidemic recovery[39].

Financial Performance - The Group's revenue decreased by 49.0%, from MOP88.0 million for the Period 2019 to MOP44.9 million for the Period 2020, primarily due to the impact of the COVID-19 epidemic [12]. - The Group reported a net loss of approximately MOP 6.5 million for 2020, compared to a net profit of approximately MOP 6.4 million in 2019 [31]. - Revenue for the six months ended June 30, 2020, was MOP 44,881,000, a decrease of 49% compared to MOP 88,022,000 in 2019 [93]. - Gross profit for the same period was MOP 10,624,000, down from MOP 25,238,000, reflecting a significant decline in profitability [93]. - Total comprehensive loss for the period amounted to MOP 6,463,000, contrasting with a profit of MOP 6,447,000 in 2019 [93]. - Basic loss per share was MOP (0.34) cents, compared to earnings of MOP 0.43 cents per share in 2019 [93]. - The profit before taxation for the six months ended June 30, 2020, was a loss of MOP 6,463,000, compared to a profit of MOP 6,447,000 in 2019 [135]. Impact of COVID-19 - The outbreak of COVID-19 has impacted the Group's operations, particularly due to quarantine measures in Macau [52]. - The Group's workforce on construction sites was reduced due to quarantine measures, significantly affecting business operations and construction progress [18]. - The impact of COVID-19 has led to a reduction in the workforce at construction sites due to quarantine measures, significantly affecting business operations and construction progress [107]. - Despite some contract works resuming, the progress has been relatively slow, reflecting the ongoing challenges posed by the pandemic [107]. - The outbreak of COVID-19 has significantly impacted the company's business operations since late January 2020, posing risks and uncertainties that cannot be reasonably estimated at this time [168]. Government Support and Market Outlook - The management is optimistic about the future of the E&M market in Macau, anticipating increased renovation needs following the recovery from the epidemic [14]. - The Macau Government's promotion of Smart City construction is expected to enhance the potential of the E&M market in the coming years [14]. - The Group received a one-off government subsidy related to COVID-19 amounting to MOP150,000, compared to nil in 2019 [122]. - The Group's financial performance has been influenced by reduced revenue and increased government subsidies related to the pandemic [107]. Operational Changes and Workforce - The Group's focus remains on electrical-related E&M engineering works for commercial and residential developments, as well as hotel and casino projects in Macau [8]. - The import of labor has improved since July 2020 due to the easing of quarantine measures, which is a positive signal for the Group's business operations [52]. - As of June 30, 2020, the Group had 33 employees, an increase from 23 employees as of December 31, 2019 [53]. - Total staff costs for the period 2020 were approximately MOP 6.3 million, compared to approximately MOP 3.9 million for the period 2019, reflecting a 61.5% increase [53][57]. Financial Position and Capital Structure - The Group incurred a net loss for the Period 2020, although it maintains a strong net cash position with no bank borrowing [18]. - As of June 30, 2020, the Group had cash and cash equivalents of approximately MOP 19.7 million, down from MOP 33.6 million at the end of 2019 [34]. - The working capital of the Group increased to approximately MOP 233.6 million as of June 30, 2020, compared to approximately MOP 136.0 million at the end of 2019 [35]. - The gearing ratio as of June 30, 2020, was approximately 4.3%, a decrease from 6.7% at the end of 2019, mainly due to increased equity after the listing [36]. - The Group's net assets increased to approximately MOP 249.6 million as of June 30, 2020, compared to MOP 151.4 million as of December 31, 2019 [39]. - The debt-to-equity ratio was approximately 4.3% as of June 30, 2020, down from 6.7% as of December 31, 2019, primarily due to an increase in equity post-listing [39]. Listing and Share Capital - The Group's listing on the Main Board of The Stock Exchange of Hong Kong on February 14, 2020, has provided a platform for further market development [10]. - The net proceeds from the listing on February 14, 2020, were approximately MOP 73.2 million, with MOP 55.4 million remaining unutilized as of June 30, 2020 [54][58]. - The company issued 500,000,000 new shares at HK$0.25 each on February 14, 2020, through an initial public offering [165]. - As of June 30, 2020, the company issued a total of 2,000,000,000 shares, with a capitalisation issue of 1,455,000,000 shares valued at approximately MOP15,008,000 [165]. Administrative and Other Expenses - Administrative expenses rose from approximately MOP 5.2 million in 2019 to approximately MOP 9.2 million in 2020, driven by increased staff costs and professional fees [30]. - Listing expenses for the period were MOP 7,390,000, down from MOP 10,575,000 in the previous year [93]. - The remuneration for key management personnel for the six months ended June 30, 2020, was MOP 2,410,000, an increase from MOP 1,646,000 in the same period of 2019, representing a growth of 46.4% [166]. Assets and Liabilities - Total current assets amounted to MOP 278,969, a significant increase from MOP 191,668 as of December 31, 2019, indicating a rise of 45.5% [95]. - The total liabilities decreased from MOP 151,407 as of December 31, 2019, to MOP 249,619 as of June 30, 2020, indicating a reduction of 34.5% [96]. - Trade receivables as of June 30, 2020, decreased to MOP 32,870, down from MOP 40,308 as of December 31, 2019, reflecting a reduction of approximately 18.5% [141]. - The aging analysis of trade receivables shows that amounts overdue by over 90 days increased significantly to MOP 20,533 from MOP 4,221, indicating a rise of approximately 386% [144]. - Contract assets related to electrical and mechanical engineering services increased to MOP 88,151 as of June 30, 2020, compared to MOP 68,425 as of December 31, 2019, representing a growth of about 28.9% [147].

Revenue and Financial Performance - SEM Holdings Limited's revenue represented 1.6% of the total revenue generated from the entire E&M engineering industry in Macau in 2018, ranking fifth among E&M engineering works contractors in Macau[9]. - The annual revenue of SEM Holdings Limited first exceeded MOP200.0 million in 2017[12]. - The Group achieved an annual revenue of approximately MOP70.0 million in 2008[12]. - The Group recorded total revenue of approximately MOP203.1 million for the Year 2019, representing a 9.6% increase compared to MOP185.2 million for the Year 2018[35][39]. - The Group's cost of sales increased by 14.1% to approximately MOP147.1 million in 2019, up from approximately MOP128.9 million in 2018[44][49]. - The overall gross profit remained stable at approximately MOP56.0 million for 2019, with a gross profit margin decreasing from approximately 30.4% in 2018 to approximately 27.6% in 2019[45][50]. - The Group reported a net profit of approximately MOP20.3 million for the Year 2019, a decrease of approximately 51.1% compared to MOP41.5 million in 2018[56]. - Adjusted net profit for the Year 2019, excluding non-recurring listing expenses, was approximately MOP37.4 million, representing a decrease of approximately 13.4% from MOP43.2 million in 2018[57]. - The increase in revenue was primarily driven by a higher number of projects undertaken in 2019 compared to 2018, particularly in E&M maintenance projects[39][40]. - Administrative expenses increased from approximately MOP6.3 million in 2018 to approximately MOP11.0 million in 2019, mainly due to higher staff costs and legal fees[54][55]. - Other income for the Year 2019 amounted to approximately MOP0.2 million, up from approximately MOP0.1 million in 2018, primarily due to increased interest income from banks[48][52]. - As of December 31, 2019, the Group's cash and cash equivalents were approximately MOP33.6 million, an increase from approximately MOP27.0 million in 2018[63]. - The working capital as of December 31, 2019, was approximately MOP136.0 million, up from approximately MOP115.8 million in 2018[64]. - The total equity attributable to owners of the Group was approximately MOP151.4 million as of December 31, 2019, compared to approximately MOP131.1 million in 2018[64]. - The gearing ratio as of December 31, 2019, was approximately 36.9%, an increase from approximately 32.8% in 2018, primarily due to increased trade payables[65]. - The Group did not recommend the payment of a final dividend for the year 2019, consistent with 2018[61]. Projects and Operations - SEM Holdings Limited was awarded a project with an initial contract sum of approximately MOP138.7 million for a residential and commercial development project in Taipa, Macau[12]. - The Group provided electrical engineering works in a mixed-use development project with a total contract sum of approximately MOP118.6 million in 2007[12]. - SEM Holdings Limited's first casino project had a total contract sum of approximately MOP22.2 million[12]. - The company focuses on providing electrical-related E&M engineering works for commercial and residential developments, hotel developments, and casino developments in Macau[8]. - The Group's revenue increased due to market growth driven by the Macau Government's promotional campaigns and infrastructure projects, including the Hong Kong – Zhuhai – Macau Bridge[24]. - The Group anticipates further revenue growth in the coming years, supported by long-term relationships with customers, suppliers, and subcontractors[25]. - The Group plans to establish an electrical-related E&M maintenance department to capture rising renovation needs in the market[26]. - The Group is optimistic about the prospects of the Macau electrical-related E&M engineering industry despite the COVID-19 outbreak[26]. - The Group faces risks related to project-based operations, including the inability to attract new customers or secure new projects, which could significantly decrease revenue[72]. Corporate Governance and Leadership - The Group's listing on the Stock Exchange of Hong Kong on February 14, 2020, provided additional capital and a broader capital base for future growth[23]. - The Group aims to enhance corporate governance and strive for excellence in quality, safety, efficiency, and cost-effectiveness[29]. - The Group's business model includes a comprehensive process from quotation submission to project implementation and defect liability management[17][20][21]. - The board of directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[95]. - The company has a strong leadership team with over 25 years of combined experience in the E&M engineering industry among its executive directors[98]. - The company is focused on expanding its business development and enhancing its strategic planning capabilities[100]. - The company is committed to compliance and operational oversight, as indicated by the qualifications of its executive team[95]. - The company has a strong governance structure with independent non-executive directors providing oversight on strategy and performance[118]. - The company has undergone significant changes in its board composition, with independent directors appointed to enhance governance[118]. - The company is committed to achieving high standards of corporate governance to safeguard shareholder interests and enhance corporate value[131]. - The company has complied with the Corporate Governance Code since its listing date on February 14, 2020[132]. Employee and Remuneration Policies - The remuneration policy for employees is periodically reviewed, with potential salary increments and discretionary bonuses based on individual performance assessments[83]. - As of December 31, 2019, the Group had 23 employees, an increase from 20 in 2018, with total staff costs amounting to approximately MOP7.1 million, up from MOP4.9 million in 2018[83]. - For the year 2019, there were 2 employees with remuneration not exceeding HKD 1,000,000[196]. - The Remuneration Committee ensures that no individual is involved in determining his/her own remuneration[193]. - The Remuneration Committee reviews and approves management's remuneration proposals with reference to the Board's corporate goals[186]. Committees and Policies - The Company established a Dividend Policy on January 22, 2020, to balance sufficient capital maintenance and shareholder rewards[177]. - The Audit Committee was established on January 22, 2020, to maintain relationships with external auditors and oversee financial reporting[180]. - The Audit Committee consists of independent non-executive Directors and a non-executive Director, with Mr. May Tai Keung Nicholas as chairman[181]. - The Nomination Committee was established on January 22, 2020, to review the structure, size, composition, and diversity of the Board[199]. - The Nomination Committee is responsible for reviewing Board composition and recommending new Directors based on meritocracy and diversity[165]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee to oversee specific aspects of the Company's affairs[153]. - The Nomination Committee will review the Board Diversity Policy annually to ensure its continued effectiveness[166].