伟工控股(01793) - 2022 - 中期财报

Corporate Information The company provides essential corporate details, including its board composition, professional service providers, and key identification information Directors and Committees Wecon Holdings Limited discloses its board of directors' composition, including executive and independent non-executive directors, and the structure and chairpersons of its Audit, Remuneration, and Nomination Committees - Executive Directors include Mr. Tsang Ka Yip (Chairman), Mr. Tsang Tsz Him, and Mr. Tsang Tsz Kit[3] - Independent Non-executive Directors include Dr. Lau Chi Keung, Mr. Chan Tim Yiu, and Mr. Sze Kwok Wing[3] - The Audit Committee is chaired by Mr. Sze Kwok Wing, the Remuneration Committee by Mr. Chan Tim Yiu, and the Nomination Committee by Dr. Lau Chi Keung[3] Company Details and Professional Services The company is registered in the Cayman Islands with its principal place of business in Hong Kong on Des Voeux Road Central, detailing its legal counsel, auditor, principal bankers, share registrar, and stock code - The company's registered office is in the Cayman Islands, with its principal place of business in Hong Kong at 18/F, Tung Hip Commercial Building, 244-252 Des Voeux Road Central, Hong Kong[3][6] - Legal counsel is Woo Kwan Lee & Lo, and the auditor is Ernst & Young[6] - Principal bankers include The Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong), and Standard Chartered Bank (Hong Kong) Limited[6] - The company's stock code is 01793, and its official website is http://www.wecon.com.hk[6](index=6&type=chunk) Management Discussion and Analysis This section provides an overview of the company's business operations, financial performance, future outlook, and key risks for the reporting period Business Review Wecon Holdings Limited, a main contractor in Hong Kong, primarily offers building construction and repair, maintenance, alteration, and addition (RMAA) engineering services, with 12 major projects on hand, 4 new awards, and 1 completion as of September 30, 2021 - The company's principal businesses are building construction services and RMAA engineering services, serving both private and public sector clients[8] Project Overview (As of September 30, 2021) | Metric | Quantity | | :--- | :--- | | Major Projects on Hand (Contract sum of HK$10.0 million or above) | 12 projects | | New Major Projects Awarded During the Period | 4 projects | | Major Projects Completed During the Period | 1 project | Prospects Facing COVID-19 challenges, the company has taken measures to ensure project progress and continuously monitors the pandemic's impact, planning to enhance competitiveness through client diversification, quality assurance, cost-effectiveness, and investment in Building Information Modeling (BIM) services and related technological innovations, maintaining cautious optimism for the Hong Kong construction industry - The pandemic has adversely affected business, causing delays in raw material delivery and project progress, but the company has taken necessary measures to proceed with construction works as planned[8] - The company will continue to diversify its client base and enhance competitiveness by maintaining its reputation, ensuring timely and high-quality project completion, and implementing cost-effective measures[11] - The company plans to invest in Building Information Modeling (BIM) services and building construction-related services to enhance capabilities and provide synergistic effects[13][15] - Management remains cautiously optimistic about the prospects of the Hong Kong construction industry[11] Principal Risks and Uncertainties The company faces multiple operational risks, including pandemic impact, reliance on non-recurring tender contracts, customer concentration, subcontractor performance and cost fluctuations, cash flow mismatches, raw material price and supply changes, and the impact of performance bonds on liquidity - Business and operations may be affected by the pandemic or other public health incidents, leading to lockdowns, travel restrictions, and work stoppages[14] - Revenue relies on non-recurring tender or quotation processes, with no guarantee of continuous success, which could materially and adversely affect sustainability and financial performance[14] - The company faces significant concentration risk due to heavy reliance on its largest and major customers[17] - Fluctuations in subcontracting costs, poor subcontractor performance, or inability to source subcontractors could materially and adversely affect operations and profitability[18] - Mismatches between receiving progress payments from customers and paying suppliers and subcontractors may lead to insufficient cash flow[18] - Changes in raw material prices and supply could materially and adversely affect operating results[18] - Providing performance bonds may affect the liquidity position[18] Segment Information The company's reportable and operating segments are building construction services and repair, maintenance, alteration, and addition (RMAA) engineering services, with detailed segment information disclosed in Note 3 to the financial statements - The Group's reportable and operating segments are building construction services and RMAA engineering services[18] Financial Review During the reporting period, the company experienced a decrease in total revenue and net profit, but an improvement in gross profit margin, with revenue decline primarily due to large project completions, and margin improvement from final account negotiations with subcontractors for building construction services; other income decreased due to non-recognition of government subsidies, and administrative expenses slightly increased due to fair value losses on financial assets Revenue For the six months ended September 30, 2021, the company's total revenue decreased by 16.4% year-on-year to HK$538.4 million, primarily due to the completion of a large building construction project and an RMAA project entering its completion phase Changes in Total Revenue | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 538,359 | 643,757 | (105,398) | (16.4%) | Changes in Segment Revenue | Segment | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Building Construction Services | 488,766 | 567,707 | (78,941) | (13.9%) | Revenue decreased due to the actual completion of a large project, partially offset by progress on other large projects | | RMAA Engineering Services | 49,593 | 76,050 | (26,457) | (34.8%) | Revenue decreased due to a large project entering its completion phase, partially offset by an increase from two newly awarded large projects | Cost of Sales For the six months ended September 30, 2021, the company's cost of sales decreased by 17.3% year-on-year to HK$504.2 million, primarily consistent with the corresponding decrease in revenue, with cost of sales mainly comprising subcontracting costs, material costs, direct staff costs, and site overheads Changes in Cost of Sales | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 504,235 | 609,450 | (105,215) | (17.3%) | - Cost of sales primarily includes subcontracting costs, material costs, direct staff costs, and site overheads[28][29] Gross Profit and Gross Profit Margin For the six months ended September 30, 2021, the company's gross profit slightly decreased by 0.6% to HK$34.1 million, but the gross profit margin increased from 5.3% to 6.3%, primarily due to increased gross profit from building construction services after final account negotiations with subcontractors, while RMAA engineering services turned from profit to gross loss Changes in Total Gross Profit and Gross Profit Margin | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 34,124 | 34,307 | (183) | (0.6%) | | Gross Profit Margin | 6.3% | 5.3% | +1.0% | - | Changes in Segment Gross Profit and Gross Profit Margin | Segment | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | Gross Profit Margin (2021) | Gross Profit Margin (2020) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Building Construction Services | 37,238 | 27,235 | +10,003 | +36.8% | 7.6% | 4.8% | Increased gross profit from several large projects after final account negotiations with subcontractors | | RMAA Engineering Services | (3,114) (Gross Loss) | 7,072 (Gross Profit) | (10,186) | - | (6.3)% | 9.3% | Decreased gross profit from a completed project and significant site overheads incurred during the initial stages of two new projects resulted in a gross loss | Other Income and Gains For the six months ended September 30, 2021, the company's other income and gains decreased by 47.2% year-on-year to HK$4.7 million, primarily due to the non-recognition of non-recurring government subsidies (Employment Support Scheme) recognized in the prior period, partially offset by dividend income Changes in Other Income and Gains | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Income and Gains | 4,667 | 8,901 | (4,234) | (47.2%) | - Primarily due to the non-recognition of non-recurring government subsidies (Employment Support Scheme) recognized in the prior period, partially offset by dividend income from equity investments[38][41] Administrative and Other Operating Expenses, Net For the six months ended September 30, 2021, administrative and other operating expenses, net, slightly increased by 1.3% to HK$22.8 million, primarily due to fair value losses on financial assets at fair value through profit or loss, partially offset by reduced staff costs and professional fees Changes in Administrative and Other Operating Expenses, Net | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Administrative and Other Operating Expenses, Net | 22,769 | 22,487 | +282 | +1.3% | - Primarily due to an increase in net fair value losses on financial assets at fair value through profit or loss, partially offset by a decrease in staff costs and professional fees[39][42] Finance Costs For the six months ended September 30, 2021, the company's finance costs decreased by 42.2% year-on-year to HK$74 thousand, primarily due to reduced interest expenses on lease liabilities Changes in Finance Costs | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 74 | 128 | (54) | (42.2%) | - Primarily due to a decrease in interest expenses on lease liabilities[44][46] Income Tax For the six months ended September 30, 2021, the company's income tax increased by 14.3% year-on-year to HK$2.4 million, with the effective tax rate rising from 10.0% to 14.9%, primarily due to the non-recognition of non-taxable government subsidies recognized in the prior period Changes in Income Tax | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Income Tax | 2,372 | 2,064 | +308 | +14.9% | Changes in Effective Tax Rate | Metric | For the six months ended September 30, 2021 | For the six months ended September 30, 2020 | Change | | :--- | :--- | :--- | :--- | | Effective Tax Rate | 14.9% | 10.0% | +4.9% | - The increase in the effective tax rate is primarily due to the non-recognition of non-taxable non-recurring government subsidies recognized in the prior period[48] Net Profit For the six months ended September 30, 2021, the company's net profit decreased by 26.5% year-on-year to HK$13.6 million, with the net profit margin declining from 2.9% to 2.5%, primarily due to the non-recognition of non-recurring government subsidies recognized in the prior period Changes in Net Profit | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Profit | 13,576 | 18,529 | (4,953) | (26.5%) | Changes in Net Profit Margin | Metric | For the six months ended September 30, 2021 | For the six months ended September 30, 2020 | Change | | :--- | :--- | :--- | :--- | | Net Profit Margin | 2.5% | 2.9% | (0.4%) | - The decrease in net profit is primarily attributable to the non-recognition of non-recurring government subsidies recognized in the prior period[48] Employees and Remuneration Policies As of September 30, 2021, the company had 224 employees (223 full-time, 1 part-time), an increase in total headcount, with remuneration reviewed regularly based on performance, qualifications, responsibilities, and market conditions, offering benefits such as provident fund, medical insurance, annual leave, and share awards Employee Headcount | Metric | As of September 30, 2021 | As of September 30, 2020 | | :--- | :--- | :--- | | Full-time Employees | 223 | 204 | | Part-time Employees | 1 | 1 | | Total Employees | 224 | 205 | - The company determines remuneration based on factors such as employee performance, qualifications, merits, responsibilities, and market conditions, and regularly reviews remuneration packages[51][53] - Employee benefits include provident fund contributions, medical insurance, annual leave, and share options and share awards that may be granted to eligible employees[51][53] Total Staff Costs (Excluding Directors' Emoluments) | Metric | For the six months ended September 30, 2021 (HK$ Thousand) | For the six months ended September 30, 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Total Staff Costs | 42,800 | 42,200 | Significant Investments, Material Acquisitions and Disposal of Subsidiaries and Associated Companies For the six months ended September 30, 2021, the company held no other significant investments apart from its equity interests in subsidiaries, nor did it undertake any material acquisitions or disposals of subsidiaries and associated companies - For the six months ended September 30, 2021, the company held no significant investments other than its equity interests in subsidiaries[52][54] - The Group did not make any material acquisitions or disposals of subsidiaries and associated companies during the reporting period[52][54] Capital Commitments As of September 30, 2021, the company had no significant capital commitments - As of September 30, 2021, the Group had no significant capital commitments (as of March 31, 2021: nil)[52] Contingent Liabilities Apart from performance bonds disclosed in Note 13 to the interim condensed consolidated financial information, the company had no other significant contingent liabilities as of September 30, 2021 - Apart from those disclosed in Note 13 to the interim condensed consolidated financial information, the Group had no other significant contingent liabilities as of September 30, 2021[52] Foreign Exchange Exposure As most of the company's business transactions, assets, and liabilities are denominated in Hong Kong Dollars, the foreign exchange exposure is minimal, and no foreign currency hedging policy has been arranged - As most business transactions, assets, and liabilities are denominated in Hong Kong Dollars, the Group's foreign exchange exposure is minimal[56] - The Directors consider the Group's foreign exchange risk to be insignificant, thus no foreign currency hedging policy is required, and no instruments were entered into for hedging during the six months ended September 30, 2021[56] Gearing Ratio As of September 30, 2021, the company's gearing ratio (lease liabilities divided by total equity) was approximately 1.0%, a decrease from 1.7% as of March 31, 2021 Changes in Gearing Ratio | Metric | As of September 30, 2021 | As of March 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 1.0% | 1.7% | (0.7%) | Liquidity and Financial Resources and Capital Structure The company primarily funds its liquidity and capital requirements through shareholders' contributions, bank borrowings, and net cash from operating activities; as of September 30, 2021, pledged deposits, time deposits, and cash and bank balances totaled approximately HK$93.1 million, with a current ratio of 2.0 times, and the Board believes the company has sufficient working capital - The Group primarily funds its liquidity and capital requirements through shareholders' contributions, bank borrowings, and net cash generated from operating activities[56] Cash and Deposit Situation (As of September 30, 2021) | Metric | Amount (HK$ Thousand) | | :--- | :--- | | Pledged Deposits | 45,563 | | Time Deposits | 23,612 | | Cash and Bank Balances | 23,964 | | Total | 93,139 | Current Ratio | Metric | As of September 30, 2021 | As of March 31, 2021 | | :--- | :--- | :--- | | Current Ratio | 2.0 times | 2.2 times | - The Directors believe that the Group has sufficient working capital to meet its present commitments and future requirements[59] - There was no change in the company's capital structure during the six months ended September 30, 2021[60] Debts and Charge on Assets As of September 30, 2021, the company had no outstanding bank borrowings, with lease liabilities of approximately HK$2.9 million; bank financing is secured by pledged deposits and corporate guarantees, and the company's borrowings are denominated in Hong Kong Dollars with interest primarily at floating rates, with continuous monitoring of interest rate risk - As of September 30, 2021, the Group had no outstanding bank borrowings (as of March 31, 2021: nil)[62] Lease Liabilities | Metric | As of September 30, 2021 (HK$ Thousand) | As of March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Lease Liabilities | 2,900 | 4,700 | - The Group's bank financing is secured by pledged deposits (approximately HK$45.6 million) and corporate guarantees provided by the Group[62] - The Group's borrowings are denominated in Hong Kong Dollars, with interest primarily at floating rates. The Group currently has no interest rate hedging policy but continuously and prudently monitors interest rate risk[62] Use of Proceeds The company listed in 2019, with net proceeds of approximately HK$93.5 million; as of September 30, 2021, some proceeds remained unutilized, primarily allocated to strengthening human resources, office upgrades and renovations, and R&D of innovative engineering technologies, with delays attributed to recruitment difficulties and technological innovation development delays, and the company plans to utilize the remaining proceeds within the next six months - The company's shares were successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on February 27, 2019, with net proceeds of approximately HK$93.5 million[66][67] Use of Proceeds and Remaining Balance (As of September 30, 2021) | Planned Use | Total Planned Amount (HK$ Million) | Actual Use for the six months ended September 30, 2021 (HK$ Million) | Remaining Balance as of September 30, 2021 (HK$ Million) | Expected Timeline for Remaining Balance | | :--- | :--- | :--- | :--- | :--- | | Strengthening capabilities for building construction and RMAA engineering projects in Hong Kong | 66.7 | – | – | Not applicable | | Strengthening human resources | 14.4 | 2.4 | 4.4 | March 31, 2022 | | Office upgrades and renovations | 3.6 | 0.4 | 0.7 | June 30, 2022 | | R&D of innovative engineering and technologies | 2.9 | – | 0.4 | March 31, 2022 | | General working capital | 5.9 | – | – | Not applicable | | Total | 93.5 | 2.8 | 5.5 | | - The utilization of net proceeds for strengthening human resources, office upgrades and renovations, and R&D of innovative engineering and technologies was delayed, primarily due to difficulties in recruiting suitable candidates and delays in technological innovation development[73] - The Group plans to utilize the remaining balance of allocated net proceeds in the aforementioned areas during the next six months ending March 31, 2022[73] Corporate Governance and Other Information This section details the company's commitment to corporate governance, including board structure, compliance with regulations, and disclosures regarding directors' and major shareholders' interests Corporate Governance Practices The company is committed to achieving and maintaining the highest standards of corporate governance, emphasizing transparency, accountability, and independence, with the Board continuously reviewing and strengthening its practices; as of September 30, 2021, the company complied with the applicable provisions of the Corporate Governance Code in Appendix 14 of the Listing Rules, except for the combined roles of Chairman and Chief Executive - The company is committed to achieving and maintaining the highest standards of corporate governance, based on principles of transparency, accountability, and independence[75] - As of September 30, 2021, the company complied with the applicable code provisions set out in the Corporate Governance Code in Appendix 14 of the Listing Rules, except for the combined roles of Chairman and Chief Executive Officer[76][78] Chairman and Chief Executive Mr. Tsang Ka Yip has served as both Chairman of the Board and Chief Executive Officer since the listing date, which deviates from Code Provision A.2.1 of the Corporate Governance Code; the Board believes this arrangement is in the best interest of the company and shareholders as a whole, given Mr. Tsang's in-depth knowledge and experience in the industry and company operations - Mr. Tsang Ka Yip has served as both Chairman of the Board and Chief Executive Officer since the listing date, which deviates from Code Provision A.2.1 of the Corporate Governance Code[77][79] - The Board believes that this arrangement is in the best interest of the Group and its shareholders as a whole, given Mr. Tsang Ka Yip's in-depth knowledge and experience in the industry in which the Group operates, and his familiarity with the Group's operations[77][79] Model Code for Securities Transactions by Directors The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules, and all Directors have confirmed full compliance with the Code for the six months ended September 30, 2021 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules[82][83] - All Directors confirmed their full compliance with the required standards set out in the Model Code for the six months ended September 30, 2021[82][83] Board of Directors The Board of Directors comprises six directors, including three executive and three independent non-executive directors, responsible for formulating overall strategies, setting management objectives, and overseeing management performance, with its composition meeting Listing Rules requirements of at least one-third independent non-executive directors and one possessing professional accounting or financial management expertise - The primary responsibilities of the Board include formulating the Group's overall strategies, setting management objectives, and overseeing management performance[84] - The Board comprises six Directors, including three executive Directors and three independent non-executive Directors[84] - The Board's composition complies with Listing Rules requirements, with at least one-third of its members being independent non-executive Directors, and Mr. Sze Kwok Wing possessing relevant expertise in accounting or financial management[84] Compliance with the Laws and Regulations The company recognizes the importance of regulatory compliance; for the six months ended September 30, 2021, and up to the date of this interim report, the company has complied in all material respects with relevant laws and regulations significantly impacting the Group's business and operations, with no material breaches or non-compliance - The Group understands the importance of complying with regulatory requirements and the risks of non-compliance with applicable laws and regulations[86][87] - For the six months ended September 30, 2021, and up to the date of this interim report, the Group has complied in all material respects with relevant laws and regulations significantly impacting its business and operations, with no serious breaches or non-compliance with applicable laws and regulations[86][87] Results and Dividends The Group's profit and financial position for the six months ended September 30, 2021, are presented in the interim condensed consolidated financial information, and the Board resolved not to declare an interim dividend for the period - The Group's profit for the six months ended September 30, 2021, and its financial position as of September 30, 2021, are presented in the interim condensed consolidated financial information on pages 27 to 29 of this interim report[89] - The Board resolved not to declare any interim dividend to the company's shareholders for the six months ended September 30, 2021 (for the six months ended September 30, 2020: nil)[89] Share Options Scheme The company adopted a share option scheme on January 21, 2019; since its adoption date and up to the date of this interim report, no share options have been granted, exercised, expired, cancelled, or lapsed under the scheme - The company adopted a share option scheme on January 21, 2019[89] - Since the adoption date and up to the date of this interim report, no share options have been granted, exercised, expired, cancelled, or lapsed under the share option scheme[89] Share Award Plan The company adopted a share award plan on July 31, 2020, to recognize, reward, retain, and attract talent; the plan's trustee purchased 5,304,000 shares on December 23, 2020, but as of September 30, 2021, no share awards have been granted or vested, with the plan valid for 10 years and a maximum share limit of 10% of total issued shares - The Board adopted a share award plan on July 31, 2020, for the purpose of recognizing and rewarding contributions, incentivizing retention, and attracting talent[92][94] - The Group has established a trust to administer the share award plan, which will acquire shares from the Stock Exchange and hold them until vesting[93][94] - On December 23, 2020, the company allocated HK$1,000,000 to the share award plan trust, of which approximately HK$996,000 was used to purchase 5,304,000 shares; as of September 30, 2021, no share awards have been granted or vested under the share award plan[98] - According to the plan rules, the maximum number of shares that may be subscribed for and/or purchased shall not exceed 10% of the total issued shares as of the adoption date (i.e., 80,000,000 shares)[96][97] Disclosure of Interests This section discloses the interests of Directors, chief executives, and substantial shareholders in the company's shares; Mr. Tsang Ka Yip holds 75% of the company's shares through his wholly-owned Triple Arch Limited, and his spouse, Ms. Lai Yuk Lin, is deemed to have the same interest Directors' and Chief Executives' Interests in the Company and Associated Corporation As of September 30, 2021, Mr. Tsang Ka Yip held 600 million shares, representing 75% of the company's share capital, through his wholly-owned Triple Arch Limited Mr. Tsang Ka Yip's Long Position in the Company's Shares | Name of Director | Capacity/Nature of Interest | Number of Shares Held (Long Position) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Tsang Ka Yip | Interest in controlled corporation (through Triple Arch Limited) | 600,000,000 | 75% | - Mr. Tsang Ka Yip beneficially owns 100% interest in Triple Arch Limited[106] Substantial Shareholders' Interests in Shares in the Company other than Directors and Chief Executives As of September 30, 2021, apart from Directors and chief executives, substantial shareholder Triple Arch Limited held 75% of the company's shares, and Mr. Tsang Ka Yip's spouse, Ms. Lai Yuk Lin, was deemed to have the same interest due to spousal relationship Substantial Shareholders' Interests in the Company's Shares | Name | Nature of Interest | Number of Shares Held (Long Position) | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Triple Arch Limited | Beneficial owner | 600,000,000 | 75% | | Ms. Lai Yuk Lin | Interest of spouse (spouse of Mr. Tsang Ka Yip) | 600,000,000 | 75% | Directors' Interests in Competing Business For the six months ended September 30, 2021, and up to the date of this interim report, no Director or their close associates had any interest in any business that directly or indirectly competes or may compete with the Group's business - For the six months ended September 30, 2021, and up to the date of this interim report, no Director or their close associates had any interest in any business that directly or indirectly competes or may compete with the Group's business[116] Directors' Interests in Contracts of Significance Except as disclosed in this interim report, as of September 30, 2021, or at any time during the reporting period, no Director or their associated entities had a significant interest in any material contract related to the Group's business entered into by the company, its holding company, or any of its subsidiaries - Except as disclosed in this interim report, as of September 30, 2021, or at any time during the six months ended September 30, 2021, no Director or their associated entities had a significant direct or indirect interest in any material contract related to the Group's business entered into by the company, its holding company, or any of its subsidiaries[116] Connected Transactions For the six months ended September 30, 2021, the company did not enter into any connected transactions - For the six months ended September 30, 2021, the Group did not enter into any connected transactions[116] Related Party Transactions Details of significant related party transactions entered into by the company for the six months ended September 30, 2021, are set out in Note 14 to the interim condensed consolidated financial information - Significant related party transactions entered into by the Group for the six months ended September 30, 2021, are set out in Note 14 to the interim condensed consolidated financial information[116] Purchase, Sale or Redemption of Listed Securities For the six months ended September 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares - For the six months ended September 30, 2021, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares[116] Events After the Reporting Period No significant events requiring disclosure have occurred after September 30, 2021, and up to the date of this interim report - No significant events requiring disclosure have occurred after September 30, 2021, and up to the date of this interim report[120] Audit Committee Review The Group's interim condensed consolidated financial information for the six months ended September 30, 2021, has been reviewed by the Audit Committee - The Group's interim condensed consolidated financial information for the six months ended September 30, 2021, has been reviewed by the Audit Committee[121][122] Appreciation Mr. Tsang Ka Yip, Chairman and Chief Executive Officer, on behalf of the Board, expressed gratitude to shareholders, clients, subcontractors, suppliers, management, and staff - Mr. Tsang Ka Yip, Chairman and Chief Executive Officer, on behalf of the Board, expressed gratitude to shareholders, clients, subcontractors, and suppliers for their continued confidence and support, and sincerely thanked management and staff for their hard work and loyalty[124] Report on Review of Interim Financial Information This section presents the independent review report on the interim financial information, outlining the scope and conclusion of the review conducted by the auditor Scope of Review and Conclusion Ernst & Young reviewed Wecon Holdings Limited's interim financial information for the six months ended September 30, 2021, in accordance with Hong Kong Standard on Review Engagements 2410; the scope of review is less than an audit, thus no audit opinion is expressed, and based on the review, nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 - Ernst & Young reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[130][132][133] - The scope of review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and consequently, no audit opinion is expressed[132][133] - Based on the review, nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[134][135] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the company's financial performance, including revenue, profit, and other comprehensive income, for the six months ended September 30, 2021 Key Financial Performance Indicators For the six months ended September 30, 2021, the company reported revenue of HK$538.4 million, gross profit of HK$34.1 million, profit before tax of HK$15.9 million, and total profit and comprehensive income attributable to equity holders of HK$13.6 million, with basic and diluted earnings per share of HK1.7 cents Key Financial Data (For the six months ended September 30, 2021) | Metric | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 538,359 | 643,757 | (105,398) | (16.4%) | | Cost of Sales | (504,235) | (609,450) | 105,215 | (17.3%) | | Gross Profit | 34,124 | 34,307 | (183) | (0.5%) | | Other Income and Gains | 4,667 | 8,901 | (4,234) | (47.6%) | | Administrative and Other Operating Expenses, Net | (22,769) | (22,487) | (282) | 1.3% | | Finance Costs | (74) | (128) | 54 | (42.2%) | | Profit Before Tax | 15,948 | 20,593 | (4,645) | (22.6%) | | Income Tax | (2,372) | (2,064) | (308) | 14.9% | | Total Profit and Comprehensive Income Attributable to Equity Holders of the Company | 13,576 | 18,529 | (4,953) | (26.7%) | | Earnings Per Share (Basic and Diluted) | HK1.7 cents | HK2.3 cents | (HK0.6 cents) | (26.1%) | Interim Condensed Consolidated Statement of Financial Position This statement provides a snapshot of the company's assets, liabilities, and equity as of September 30, 2021, reflecting its financial health Key Financial Position Indicators As of September 30, 2021, the company's total assets less current liabilities were HK$286.1 million, net assets were HK$285.1 million, net current assets were HK$262.2 million, and the current ratio was 2.0 times Key Financial Position Data (As of September 30, 2021) | Metric | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current Assets | | | | | | Property, Plant and Equipment | 10,067 | 8,148 | 1,919 | 23.5% | | Right-of-use Assets | 5,112 | 7,584 | (2,472) | (32.6%) | | Financial Assets at Fair Value Through Profit or Loss | 2,450 | 2,150 | 300 | 14.0% | | Prepayments, Deposits and Other Receivables | 6,237 | 5,379 | 858 | 15.9% | | Total Non-current Assets | 23,866 | 23,261 | 605 | 2.6% | | Current Assets | | | | | | Contract Assets and Trade Receivables | 355,676 | 260,376 | 95,300 | 36.6% | | Prepayments, Deposits and Other Receivables | 40,918 | 21,295 | 19,623 | 92.2% | | Financial Assets at Fair Value Through Profit or Loss | 18,957 | 17,452 | 1,505 | 8.6% | | Tax Recoverable | 5,302 | 7,997 | (2,695) | (33.7%) | | Pledged Deposits | 45,563 | 42,193 | 3,370 | 8.0% | | Time Deposits | 23,612 | 5,109 | 18,503 | 362.2% | | Cash and Bank Balances | 23,964 | 120,639 | (96,675) | (80.1%) | | Total Current Assets | 513,992 | 475,061 | 38,931 | 8.2% | | Current Liabilities | | | | | | Trade and Retention Payables | 214,611 | 143,758 | 70,853 | 49.3% | | Other Payables and Accruals | 34,862 | 68,166 | (33,304) | (48.9%) | | Lease Liabilities | 2,300 | 3,344 | (1,044) | (31.2%) | | Total Current Liabilities | 251,773 | 215,268 | 36,505 | 17.0% | | Net Current Assets | 262,219 | 259,793 | 2,426 | 0.9% | | Total Assets Less Current Liabilities | 286,085 | 283,054 | 3,031 | 1.1% | | Non-current Liabilities | | | | | | Deferred Tax Liabilities | 405 | 728 | (323) | (44.4%) | | Lease Liabilities | 625 | 1,311 | (686) | (52.3%) | | Total Non-current Liabilities | 1,030 | 2,039 | (1,009) | (49.5%) | | Net Assets | 285,055 | 281,015 | 4,040 | 1.4% | | Equity | | | | | | Issued Share Capital | 8,000 | 8,000 | 0 | 0.0% | | Reserves | 277,055 | 273,015 | 4,040 | 1.5% | | Total Equity | 285,055 | 281,015 | 4,040 | 1.4% | Interim Condensed Consolidated Statement of Changes in Equity This statement outlines the changes in the company's total equity for the six months ended September 30, 2021, primarily driven by profit for the period and dividends paid Equity Changes Overview For the six months ended September 30, 2021, the company's total equity increased from HK$281 million at the beginning of the period to HK$285.1 million, primarily due to profit for the period of HK$13.6 million, partially offset by dividends paid of HK$9.5 million Changes in Equity (For the six months ended September 30, 2021) | Metric | April 1, 2021 (HK$ Thousand) | Total Profit and Comprehensive Income for the Period (HK$ Thousand) | Dividends Paid to Equity Holders of the Company (HK$ Thousand) | September 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Issued Share Capital | 8,000 | – | – | 8,000 | | Share Premium | 76,767 | – | (9,536) | 67,231 | | Merger Reserve | 18,900 | – | – | 18,900 | | Shares Held Under Share Award Scheme | (996) | – | – | (996) | | Retained Profits | 178,344 | 13,576 | – | 191,920 | | Total Equity | 281,015 | 13,576 | (9,536) | 285,055 | Interim Condensed Consolidated Statement of Cash Flows This statement summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended September 30, 2021 Cash Flow Activities Summary For the six months ended September 30, 2021, the company reported net cash outflow from operating activities of HK$58.8 million (compared to an inflow of HK$22 million in the prior period), net cash outflow from investing activities of HK$8 million, and net cash outflow from financing activities of HK$11.3 million, with cash and cash equivalents decreasing to HK$47.6 million at period-end Cash Flow Summary (For the six months ended September 30, 2021) | Cash Flow Category | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Change (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Net Cash Flows from/(used in) Operating Activities | (58,818) | 21,952 | (80,770) | | Net Cash Flows used in Investing Activities | (8,058) | (14,271) | 6,213 | | Net Cash Flows used in Financing Activities | (11,296) | (20,420) | 9,124 | | Net Decrease in Cash and Cash Equivalents | (78,172) | (12,739) | (65,433) | | Cash and Cash Equivalents at Beginning of Period | 125,748 | 140,773 | (15,025) | | Cash and Cash Equivalents at End of Period | 47,576 | 128,034 | (80,458) | Notes to Interim Condensed Consolidated Financial Information This section provides detailed explanatory notes to the interim condensed consolidated financial information, covering company background, accounting policies, and specific financial items 1. Corporate and Group Information Wecon Holdings Limited was incorporated in the Cayman Islands on March 23, 2018, as an investment holding company, with its subsidiaries primarily engaged in building construction and RMAA services; its direct and ultimate holding company is Triple Arch Limited, registered in the British Virgin Islands - The company was incorporated in the Cayman Islands as an exempted company with limited liability on March 23, 2018, and is an investment holding company[153] - During the period, the Group's subsidiaries were principally engaged in the provision of building construction and repair, maintenance, alteration, and addition (RMAA) services[153] - The company's immediate and ultimate holding company is Triple Arch Limited, incorporated in the British Virgin Islands[153] 2. Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of Appendix 16 of the Listing Rules, presented in Hong Kong Dollars; the accounting policies adopted are consistent with those used for the annual consolidated financial statements for the year ended March 31, 2021, except for the initial adoption of amended HKFRS (Interest Rate Benchmark Reform – Phase 2), which had no significant impact on the results and financial position for the current or prior periods - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of Appendix 16 of the Listing Rules[153] - The interim condensed consolidated financial information is presented in Hong Kong Dollars, and all values are rounded to the nearest thousand[155][158] - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended March 31, 2021[165][166] - The initial adoption of amended HKFRS 9, HKAS 39, HKFRS 7, HKFRS 4 and HKFRS 16 (Amendments) – Interest Rate Benchmark Reform – Phase 2 had no significant impact on the results and financial position for the current or prior accounting periods[167][168] 3. Operating Segment Information The company's reportable operating segments are building contracts and repair, maintenance, alteration, and addition (RMAA) engineering; for the six months ended September 30, 2021, the building contracts segment generated HK$488.8 million in revenue and HK$37.2 million in gross profit, while the RMAA segment generated HK$49.6 million in revenue and incurred a gross loss of HK$3.1 million, with significant increases in both assets and liabilities for the building contracts segment Segment Revenue and Results (For the six months ended September 30, 2021) | Metric | Building Contracts (HK$ Thousand) | RMAA (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Revenue from External Customers | 488,766 | 49,593 | 538,359 | | Segment Results (Gross Profit/Loss) | 37,238 | (3,114) | 34,124 | Segment Assets and Liabilities (As of September 30, 2021) | Metric | Building Contracts (HK$ Thousand) | RMAA (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Segment Assets | 343,232 | 57,335 | 400,567 | | Segment Liabilities | 212,085 | 34,720 | 246,805 | 4. Revenue For the six months ended September 30, 2021, the company's total revenue from customer contracts was HK$538.4 million, with building contracts contributing HK$488.8 million and RMAA engineering contributing HK$49.6 million; most revenue (HK$508.2 million) was recognized "over time," while the remainder (HK$30.2 million) was recognized "at a point in time" Revenue by Source (For the six months ended September 30, 2021) | Category | Amount (HK$ Thousand) | | :--- | :--- | | Building Contracts | 488,766 | | RMAA Engineering | 49,593 | | Total Revenue | 538,359 | Revenue Recognition Timing (For the six months ended September 30, 2021) | Timing of Recognition | Amount (HK$ Thousand) | | :--- | :--- | | Over time | 508,153 | | At a point in time | 30,206 | | Total Revenue | 538,359 | 5. Finance Costs For the six months ended September 30, 2021, the company's finance costs were HK$74 thousand, primarily comprising HK$30 thousand in bank borrowing interest and HK$44 thousand in lease liabilities interest, representing a 42.2% year-on-year decrease Composition of Finance Costs (For the six months ended September 30, 2021) | Category | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 30 | 32 | | Interest on lease liabilities | 44 | 96 | | Total | 74 | 128 | 6. Profit Before Tax For the six months ended September 30, 2021, the company's profit before tax was HK$15.9 million, with total depreciation expenses of HK$3.492 million and staff welfare expenses (excluding directors' emoluments) of HK$42.8 million; other key adjustments included fair value losses on financial assets of HK$1.876 million, gains on disposal of financial assets of HK$0.734 million, and dividend income of HK$1.126 million - For the six months ended September 30, 2021, the Group's profit before tax was HK$15,948 thousand[191][192] Key Expense/Income Items (For the six months ended September 30, 2021) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,020 | 1,324 | | Depreciation of right-of-use assets | 2,472 | 2,372 | | Staff welfare expenses (excluding directors' emoluments) | 42,810 | 42,226 | | Net fair value losses/(gains) on financial assets at fair value through profit or loss | 1,876 | (200) | | Gains on disposal of financial assets at fair value through profit or loss | (734) | – | | Dividend income from equity investments at fair value through profit or loss | (1,126) | – | | Impairment of contract assets, net | 38 | 136 | | Impairment/(reversal of impairment) of trade receivables, net | (12) | 2 | - For the six months ended September 30, 2020, government grants of HK$6,328 thousand were included in "Other income and gains," with no such grants in the current period[193] 7. Income Tax The company is exempt from income tax in the Cayman Islands and British Virgin Islands; Hong Kong profits tax is levied at 16.5%, with qualifying subsidiaries taxed at 8.25% on the first HK$2 million of assessable profits under the two-tiered tax rate regime, and total tax expense for the six months ended September 30, 2021, was HK$2.372 million - The Group is not subject to any income tax in the Cayman Islands and British Virgin Islands[196][197] - Hong Kong profits tax is provided at 16.5%, with qualifying subsidiaries taxed at 8.25% on the first HK$2,000,000 of assessable profits under the two-tiered tax rate regime, and the remainder at 16.5%[196][197] Total Tax Expense for the Period (For the six months ended September 30, 2021) | Category | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Current – Hong Kong tax for the period | 2,695 | 1,896 | | Deferred tax deduction/(credit) | (323) | 274 | | Total Tax Expense for the Period | 2,372 | 2,064 | 8. Earnings Per Share Attributable to Equity Holders of the Company For the six months ended September 30, 2021, the company's basic earnings per share were HK1.7 cents (compared to HK2.3 cents in the prior period), calculated based on profit attributable to equity holders of HK$13.576 million and a weighted average of 794,696,000 ordinary shares; there were no potentially dilutive ordinary shares during the reporting period Basic Earnings Per Share | Metric | 2021 (HK cents) | 2020 (HK cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.7 | 2.3 | - The basic earnings per share amount is calculated based on the profit attributable to equity holders of the company of HK$13,576 thousand (2020: HK$18,529 thousand) and the weighted average number of ordinary shares of 794,696,000 (2020: 800,000,000)[201] - For the six months ended September 30, 2021 and 2020, there were no potentially dilutive ordinary shares in issue by the Group[201] 9. Dividends The Board recommended a final dividend of HK1.2 cents per share for the financial year ended March 31, 2021, totaling HK$9.536 million, and resolved not to declare an interim dividend for the six months ended September 30, 2021 - The Board recommended a final dividend of HK1.2 cents per share for the financial year ended March 31, 2021, totaling HK$9,536 thousand[201] - The Board resolved not to declare an interim dividend for the six months ended September 30, 2021 (for the six months ended September 30, 2020: nil)[201] 10. Contract Assets and Trade Receivables As of September 30, 2021, the company's total contract assets and trade receivables amounted to HK$355.7 million, comprising net contract assets of HK$191.9 million (including other contract assets of HK$90.7 million and retention receivables of HK$101.6 million) and net trade receivables of HK$163.8 million; both other contract assets and retention receivables increased due to continuous provision of construction services and significant progress on more contracts at the reporting period end Total Contract Assets and Trade Receivables | Metric | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Contract Assets and Trade Receivables | 355,676 | 260,376 | Net Contract Assets | Category | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Other contract assets | 90,656 | 61,569 | | Retention receivables | 101,640 | 90,462 | | Impairment of contract assets | (392) | (354) | | Net Contract Assets | 191,904 | 151,677 | Net Trade Receivables | Category | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Trade receivables | 163,795 | 108,734 | | Impairment of trade receivables | (23) | (35) | | Net Trade Receivables | 163,772 | 108,699 | - The increase in other contract assets as of September 30, 2021, and March 31, 2021, was due to the continuous provision of construction services at the end of the reporting period[207][208] - Retention receivables increased as of September 30, 2021, and March 31, 2021, primarily due to significant progress on more contracts that were not yet completed at the end of the reporting period; retention receivables are repayable within one to two years[211] Ageing Analysis of Trade Receivables (As of September 30, 2021) | Ageing | Amount (HK$ Thousand) | | :--- | :--- | | Within 90 days | 158,660 | | 91 to 180 days | 1,218 | | 181 to 365 days | 3,894 | | Total | 163,772 | 11. Trade and Retention Payables As of September 30, 2021, the company's total trade and retention payables amounted to HK$214.6 million, a significant increase from March 31, 2021, comprising trade payables of HK$129.1 million (within 3 months) and retention payables of HK$85.5 million; retention payables are typically settled within one to two years, and trade payables generally have a credit period of 30 days Total Trade and Retention Payables | Metric | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Trade and Retention Payables | 214,611 | 143,758 | Ageing Analysis of Trade and Retention Payables (As of September 30, 2021) | Category | Ageing | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Trade payables | Within 3 months | 129,094 | | Retention payables | - | 85,517 | - Retention payables are generally settled within one to two years; payment terms for trade payables are stipulated in the relevant contracts, with a typical credit period of 30 days[218] 12. Share Capital As of September 30, 2021, the company's authorized share capital was HK$50 million (5 billion ordinary shares of HK$0.01 each), and its issued and fully paid share capital was HK$8 million (800 million ordinary shares of HK$0.01 each) Share Capital Structure (As of September 30, 2021) | Category | Number of Shares | Par Value | Amount (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Authorized share capital | 5,000,000,000 | HK$0.01 | 50,000 | | Issued and fully paid share capital | 800,000,000 | HK$0.01 | 8,000 | 13. Contingent Liabilities As of September 30, 2021, the company's contingent liabilities primarily consisted of performance bonds totaling HK$65.9 million, a significant decrease from HK$119.1 million as of March 31, 2021; part of the performance bonds were secured by pledged deposits of HK$31.19 million Performance Bonds | Metric | September 30, 2021 (HK$ Thousand) | March 31, 2021 (HK$ Thousand) | Change (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Performance Bonds | 65,896 | 119,107 | (53,211) | (44.7%) | - Part of the performance bonds were secured by pledged deposits of HK$31,190 thousand (March 31, 2021: HK$34,193 thousand)[225] 14. Related Party Transactions As of September 30, 2021, the company had no outstanding balances with related companies; total remuneration paid to key management personnel for the period was HK$2.164 million, including salaries, allowances, and benefits in kind paid to a director's spouse - As of September 30, 2021, and March 31, 2021, the Group had no balances with related companies[227] Key Management Personnel Remuneration (For the six months ended September 30, 2021) | Category | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 2,017 | 1,900 | | Post-employment benefits | 147 | 137 | | Total Remuneration | 2,164 | 2,037 | - Total salaries, housing allowances, other allowances, and benefits in kind paid to Ms. Lai Yuk Lin, the spouse of a Director, including a housing allowance in kind of HK$820,000[230] 15. Fair Value and Fair Value Hierarchy of Financial Instruments Management assessed that the fair values of cash and cash equivalents, contract assets and trade receivables, trade and retention payables, certain financial assets and liabilities, and lease liabilities approximate their carrying amounts, primarily due to their short-term maturities; as of September 30, 2021, total assets measured at fair value were HK$21.407 million, including listed equity investments of HK$18.005 million (Level 1) and other investments of HK$3.402 million (Level 2), with no transfers between Level 1 and Level 2, or into or out of Level 3 during the reporting period - Management has assessed that the fair values of cash and cash equivalents, contract assets and trade receivables, trade and retention payables, financial assets included in prepayments, deposits and other receivables, financial liabilities included in other payables and accruals, and lease liabilities approximate their carrying amounts, primarily due to the short-term maturities of these instruments[234][236] Assets Measured at Fair Value (As of September 30, 2021) | Category | Quoted prices in active markets (Level 1) (HK$ Thousand) | Significant observable inputs (Level 2) (HK$ Thousand) | Significant unobservable inputs (Level 3) (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Listed equity investments | 18,005 | – | – | 18,005 | | Other investments | – | 3,402 | – | 3,402 | | Total | 18,005 | 3,402 | – | 21,407 | - During the reporting period, there were no transfers between Level 1 and Level 2 fair value measurements, nor any transfers into or out of Level 3 for financial assets[242][244] 16. Approval of the Unaudited Interim Financial Information The unaudited interim financial information was approved and authorized for issue by the Board of Directors on November 26, 2021 - The unaudited interim financial information was approved and authorized for issue by the Board of Directors on November 26, 20