奥邦建筑(01615) - 2025 - 中期业绩

Company Information and Report Overview Company Basic Information AB BUILDERS GROUP LIMITED, a company incorporated in the Cayman Islands with stock code 01615 and listed on the Main Board of SEHK, presents its unaudited interim results for the six months ended June 30, 2025 - Company name: AB BUILDERS GROUP LIMITED (奧邦建築集團有限公司), stock code: 01615[2] - The company was incorporated in the Cayman Islands, and its shares were listed on the Main Board of SEHK on September 10, 2018[2][9] - This announcement is for the unaudited interim results for the six months ended June 30, 2025[2][3] Report Publication Statement This interim results announcement is available on the SEHK and company websites, with the full interim report to be dispatched to shareholders and published in due course - The results announcement is available on the SEHK website (www.hkexnews.hk) and the company's website (www.abbuildersgroup.com)[4](index=4&type=chunk) - The company's 2025 interim report will be dispatched to shareholders and published in due course[4] Board of Directors As of the announcement date, the Board comprises five executive directors and three independent non-executive directors, with Mr Liu Chao Sheng as Chairman and Executive Director - The Board of Directors includes five executive directors: Mr Liu Chao Sheng (Chairman), Ms Liu Qiu Yu, Mr An Jia Wei, Mr Zheng Yi Wei, and Mr Ye Jian Hua[5] - The Board of Directors includes three independent non-executive directors: Mr Zhu Yi Peng, Mr Au Yeung Wai Lap, and Mr Choi Wai Shek[5] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue significantly increased by 190.0% to MOP 170,834 thousand, but profit for the period decreased by 80.8% to MOP 476 thousand due to lower gross profit and other income, leading to a substantial reduction in basic earnings per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (MOP thousand) | Indicator | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Revenue | 170,834 | 58,923 | | Cost of Sales | (160,661) | (47,072) | | Gross Profit | 10,173 | 11,851 | | Other Income | 2,892 | 6,665 | | Other Gains and Losses | 942 | (1,000) | | Impairment Loss under ECL Model (net of reversal) | 740 | (1,243) | | Administrative Expenses | (13,513) | (13,456) | | Finance Costs | (396) | (397) | | Profit Before Tax | 838 | 2,420 | | Income Tax (Expense) Credit | (362) | 62 | | Profit for the Period | 476 | 2,482 | | Profit for the Period Attributable to Owners of the Company | 314 | 3,827 | | Basic Earnings Per Share (MOP cents) | 0.05 | 0.64 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and net assets both slightly increased, with significant rises in trade and other receivables and bank balances and cash within current assets, and an increase in trade and other payables within current liabilities, leading to an improved gearing ratio Condensed Consolidated Statement of Financial Position (MOP thousand) | Indicator | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Non-current Assets | 85,923 | 83,020 | | Current Assets | 237,692 | 223,640 | | Current Liabilities | 127,387 | 110,645 | | Net Current Assets | 110,305 | 112,995 | | Net Assets | 195,045 | 194,333 | | Equity Attributable to Owners of the Company | 212,193 | 211,643 | - Trade and other receivables increased by 61.0% from MOP 44,842 thousand as of December 31, 2024, to MOP 72,195 thousand as of June 30, 2025[7] - Bank balances and cash increased by 66.3% from MOP 44,581 thousand as of December 31, 2024, to MOP 74,129 thousand as of June 30, 2025[7] - Trade and other payables increased by 26.4% from MOP 91,042 thousand as of December 31, 2024, to MOP 115,106 thousand as of June 30, 2025[7] Notes to the Condensed Consolidated Financial Statements General Information and Basis of Preparation The Group primarily provides construction services and sells construction materials, with its condensed consolidated financial statements prepared in accordance with IAS 34 and SEHK Listing Rules, using MOP as the presentation and functional currency - The company is an investment holding company, and its subsidiaries are primarily engaged in providing construction services and selling construction materials[9] - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the SEHK Listing Rules[9] - The company's presentation and functional currency is MOP[10] Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, with the first-time application of IFRS accounting standards (amendments) and a new accounting policy for goodwill during the period - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[11] Application of Amendments to IFRS Accounting Standards The Group first applied amendments to IFRS accounting standards, including IAS 21 (Amendments) "Lack of Exchangeability," during this interim period, which had no significant impact on its financial position or performance - The Group has first applied amendments to IFRS accounting standards, such as IAS 21 (Amendments) "Lack of Exchangeability"[12] - These amendments had no significant impact on the Group's financial position and performance during the current and prior periods[12] New Significant Accounting Policy Information: Goodwill Goodwill arising from business acquisitions is recognized at cost less accumulated impairment losses and allocated to cash-generating units for annual or more frequent impairment testing, with impairment losses first allocated to reduce the carrying amount of goodwill - Goodwill arising from business acquisitions is recognized at cost (determined at the acquisition date) less any accumulated impairment losses[13] - Goodwill is allocated to each cash-generating unit for impairment testing, performed annually or more frequently if there are indications of impairment[13][14] Revenue The Group's revenue primarily derives from construction contracts for renovation works and sales of construction materials, with MOP 167,117 thousand from renovation works and MOP 3,717 thousand from material sales for the six months ended June 30, 2025, and MOP 114,280 thousand in renovation work revenue expected to be recognized in the future - Revenue refers to the total amount received and receivable by the Group from providing construction contracts for renovation works and selling construction materials to its customers[15] Revenue by Source (MOP thousand) | Revenue Source | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Revenue from Construction Contracts for Renovation Works | 167,117 | 58,923 | | Revenue from Sales of Construction Materials | 3,717 | — | | Total | 170,834 | 58,923 | - As of June 30, 2025, the total transaction price allocated to renovation work contracts not yet satisfied (or partially satisfied) was MOP 114,280 thousand, expected to be recognized as revenue in 2025 and 2026[19][20] Segment Information Effective January 1, 2025, the Group adjusted its operating segment reporting, consolidating renovation and structural engineering into a single "Construction Services" reportable segment, while other businesses like construction material sales and air purification are classified as "Others," with segment revenue and results primarily driven by construction services - Effective January 1, 2025, management changed the presentation of information reported to the chief operating decision-maker and updated segment reporting to align with this change[22] - The Group's sole reportable segment under IFRS 8 is Construction Services, which includes the former renovation works and structural engineering operating segments[22][23] - Sales of construction materials and air purification business/systems are classified as "Others" as they do not meet the quantitative thresholds for reportable segments[23] Changes in Operating Segments Effective January 1, 2025, the Group merged its former renovation and structural engineering segments into a single "Construction Services" reportable segment, with construction material sales and air purification businesses categorized under "Others" - Effective January 1, 2025, management changed the presentation of information reported to the chief operating decision-maker and updated segment reporting to align with this change[22] - The latest Construction Services reportable segment now includes the former renovation works and structural engineering operating segments[22] - Sales of construction materials and air purification business/systems are classified as "Others" as they do not meet the quantitative thresholds for reportable segments[23] Segment Revenue and Results For the six months ended June 30, 2025, the Construction Services segment contributed MOP 167,117 thousand in revenue and MOP 9,865 thousand in segment results, while the "Others" segment (primarily construction material sales) contributed MOP 3,717 thousand in revenue and MOP 308 thousand in segment results Segment Revenue and Results (MOP thousand) | Segment | For the period ended June 30, 2025 Revenue (MOP thousand) | For the period ended June 30, 2025 Results (MOP thousand) | For the period ended June 30, 2024 Revenue (MOP thousand) | For the period ended June 30, 2024 Results (MOP thousand) | | :--- | :--- | :--- | :--- | :--- | | Construction Services | 167,117 | 9,865 | 58,923 | 12,061 | | Others | 3,717 | 308 | — | (210) | | Total | 170,834 | 10,173 | 58,923 | 11,851 | Geographical Information The Group's revenue from external customers primarily originated from Macau (MOP 134,297 thousand) and Hong Kong (MOP 36,537 thousand), with non-current assets also predominantly concentrated in Macau Geographical Information (MOP thousand) | Geographical Area | For the six months ended June 30, 2025 Revenue from External Customers (MOP thousand) | For the six months ended June 30, 2024 Revenue from External Customers (MOP thousand) | As of June 30, 2025 Non-current Assets (MOP thousand) | As of December 31, 2024 Non-current Assets (MOP thousand) | | :--- | :--- | :--- | :--- | :--- | | Macau | 134,297 | 33,563 | 34,459 | 35,152 | | Hong Kong | 36,537 | 25,360 | 2,914 | 2,477 | | China | — | — | 2,029 | 1,838 | | Total | 170,834 | 58,923 | 39,402 | 39,467 | Other Income For the six months ended June 30, 2025, other income significantly decreased to MOP 2,892 thousand from MOP 6,665 thousand in the prior year, mainly due to the absence of MOP 2,271 thousand in construction project insurance claim compensation income recognized in the previous period Other Income (MOP thousand) | Item | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Bank Interest Income | 2,564 | 3,973 | | Compensation Income | — | 2,271 | | Others | 328 | 421 | | Total | 2,892 | 6,665 | - The decrease in other income was primarily due to the absence of MOP 2,271,000 in compensation income (insurance claims) from construction projects recognized in the corresponding period of 2024[27] Income Tax (Expense) Credit The Group recorded an income tax expense of MOP 362 thousand in the first half of 2025, contrasting with an income tax credit of MOP 62 thousand in the prior year, mainly due to an increase in Macau Complementary Income Tax Income Tax (Expense) Credit (MOP thousand) | Tax Type | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Macau Complementary Income Tax | (459) | — | | PRC Enterprise Income Tax | — | (36) | | Deferred Tax Credit | 97 | 98 | | Income Tax (Expense) Credit | (362) | 62 | Composition of Profit for the Period Profit for the period was achieved after deducting various expenses, with a significant increase in the cost of construction contracts for renovation works, and notably, a reversal of provision for onerous contracts of MOP 405 thousand was recognized in the current period Expenses (MOP thousand) | Expense Item | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Cost of Construction Contracts for Renovation Works Recognized as Expense | 157,252 | 46,862 | | Cost of Inventories Recognized as Expense | — | 210 | | Depreciation of Property, Plant and Equipment | 726 | 760 | | Depreciation of Right-of-Use Assets | 378 | 34 | | Amortisation of Intangible Assets | 389 | 393 | | Expenses Relating to Short-term Leases | 166 | 750 | - For the six months ended June 30, 2025, a reversal of provision for onerous contracts for renovation works of MOP 405,000 was recognized[29] Dividends No dividends were paid, declared, or proposed by the company during either of the interim periods - No dividends were paid, declared, or proposed during the two interim periods[30] Earnings Per Share For the six months ended June 30, 2025, profit for the period attributable to owners of the company was MOP 314 thousand, leading to a significant decrease in basic and diluted earnings per share to MOP 0.05 cents, compared to MOP 0.64 cents in the prior year Earnings Per Share | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (MOP thousand) | 314 | 3,827 | | Weighted Average Number of Ordinary Shares (thousand shares) | 600,000 | 600,000 | | Basic Earnings Per Share (MOP cents) | 0.05 | 0.64 | | Diluted Earnings Per Share (MOP cents) | 0.05 | 0.64 | - Diluted earnings per share were not assumed to be exercised for all share options as the exercise price was higher than the average market price of the shares[31] Property, Plant and Equipment and Right-of-Use Assets For the six months ended June 30, 2025, the Group did not enter into new lease agreements, thus recognizing no new right-of-use assets or lease liabilities, in contrast to the prior year - For the six months ended June 30, 2025, the Group did not enter into new lease agreements, nor did it recognize new right-of-use assets and lease liabilities[32] - For the six months ended June 30, 2024, the Group entered into new lease agreements, recognizing right-of-use assets and lease liabilities of MOP 1,949,000 each[32] Goodwill As of June 30, 2025, the Group recognized goodwill of MOP 1,462 thousand arising from the acquisition of a subsidiary, with its carrying amount consistent with its cost Goodwill (MOP thousand) | Item | MOP thousand | | :--- | :--- | | As of December 31, 2024 (audited) | — | | Arising from Acquisition of a Subsidiary | 1,462 | | As of June 30, 2025 (unaudited) | 1,462 | Trade and Other Receivables As of June 30, 2025, total trade and other receivables increased to MOP 72,195 thousand, a 61.0% increase from the end of 2024, with a significant rise in trade receivables (net of loss allowance) and a higher proportion of receivables aged 1 to 30 days Trade and Other Receivables (MOP thousand) | Item | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Trade Receivables (net of loss allowance) | 55,332 | 25,103 | | Advances to Subcontractors and Suppliers | 5,350 | 7,776 | | Other Receivables, Prepayments and Deposits | 11,513 | 9,902 | | Total Trade and Other Receivables | 72,195 | 44,842 | Trade Receivables Ageing Analysis (MOP thousand) | Ageing | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | 1 to 30 days | 49,989 | 932 | | 31 to 60 days | 3,274 | 14,862 | | 61 to 90 days | — | 6,407 | | Over 90 days | 2,069 | 2,902 | | Total | 55,332 | 25,103 | - The Group generally allows customers a credit period of 30 days[36] Contract Assets As of June 30, 2025, contract assets significantly decreased by 69.3% to MOP 19,025 thousand from the end of 2024, including retention receivables of MOP 13,074 thousand Contract Assets (MOP thousand) | Item | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Contract Assets | 19,025 | 62,066 | - Contract assets include retention receivables from customers for contract works of MOP 13,074,000[37] - Retention receivables are typically 10% of certified amounts payable, with 50% recovered upon project completion and the remaining 50% after the warranty period[38] Impairment Loss under Expected Credit Loss Model For the six months ended June 30, 2025, the Group recorded a net reversal of impairment loss of MOP 740 thousand, a significant improvement compared to an impairment loss of MOP 1,243 thousand in the prior year, primarily due to the reversal of impairment for contract assets Impairment Loss under Expected Credit Loss Model (MOP thousand) | Item | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Trade Receivables | 112 | 1,335 | | Other Receivables | (2) | — | | Contract Assets | (847) | 13 | | Other Financial Assets | (3) | (105) | | Total | (740) | 1,243 | - During the interim period, the Group recognized impairment provisions of MOP 317,000 and reversed impairment provisions of MOP 1,057,000[39][40] Trade and Other Payables As of June 30, 2025, total trade and other payables increased to MOP 115,106 thousand, a 26.4% increase from the end of 2024, with both trade payables and retention payables showing increases Trade and Other Payables (MOP thousand) | Item | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Trade Payables | 45,450 | 26,117 | | Retention Payables | 31,796 | 25,443 | | Accrued Contract Costs | 27,849 | 29,595 | | Provision for Onerous Contracts | 1,088 | 1,493 | | Total Trade and Other Payables | 115,106 | 91,042 | Trade Payables Ageing Analysis (MOP thousand) | Ageing | As of June 30, 2025 (MOP thousand) | As of December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | 1 to 30 days | 41,232 | 22,226 | | Over 60 days | 4,218 | 3,891 | | Total | 45,450 | 26,117 | - The credit period for trade purchases is 7 to 60 days[41] Share Capital As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged at 600,000 thousand shares, with a share capital amount of MOP 6,189 thousand Share Capital (MOP thousand) | Item | Number of Shares (thousand shares) | Share Capital (MOP thousand) | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital (as of June 30, 2025) | 600,000 | 6,189 | | Authorised Share Capital (as of June 30, 2025) | 10,000,000 | 103,150 | Management Discussion and Analysis Business Review Despite global economic challenges, the Group achieved a 190.0% revenue growth to MOP 170.8 million in the first half of 2025, primarily driven by renovation projects and newly expanded construction material trading, while gross profit margin declined due to lower-margin projects, and the Group also entered the financial services sector through an acquisition - The Group recorded revenue of approximately MOP 170.8 million in the first half of 2025, representing a year-on-year increase of approximately 190.0%[46] - Revenue growth was primarily attributable to the successful execution of renovation projects and the expansion of the construction material trading business[46] - The core construction services segment contributed MOP 167.1 million, accounting for 97.8% of total revenue[46] - The successful launch of the construction material trading business contributed MOP 3.7 million in revenue, marking strategic diversification[47] - Gross profit margin decreased from 20.1% last year to 6.0%, mainly due to the completion of certain low-margin projects and subsequent additional orders[47] - The acquisition of a Hong Kong company holding SFC Type 4 and Type 9 licenses was completed, entering the financial services sector[47] Prospects and Outlook The Group maintains cautious optimism for the future, anticipating construction and renovation opportunities from Macau's economic recovery, planning to expand its construction material trading business for vertical integration, actively developing financial services capabilities, and pursuing sustainable growth through strategic collaborations and market expansion - Macau's continued economic recovery and investments by major integrated resort operators will create robust potential construction and renovation opportunities for the Group[48][49] - Plans to expand the construction material trading business to enhance overall project profitability through vertical integration of material supply and construction services[49] - Actively developing financial services capabilities, utilizing Type 4 and Type 9 licenses to provide securities advisory and asset management services, opening new revenue streams[49] - Will continue to evaluate strategic acquisition opportunities and partnerships, and expand its market presence in Macau, Hong Kong, the Greater Bay Area, and the Asia-Pacific region[49] Financial Review This section provides a detailed review of the Group's financial performance in the first half of 2025, including significant revenue growth, a notable decline in gross profit margin, reduced other income, improved impairment losses, and a decrease in profit for the period, along with their primary causes Revenue The Group's revenue for the first half of 2025 significantly increased by 190.0% year-on-year to MOP 170.8 million, primarily driven by a 183.6% increase in renovation project revenue and a MOP 3.7 million contribution from construction material sales Revenue by Source (MOP thousand) | Revenue Source | For the six months ended June 30, 2025 (MOP thousand) | For the six months ended June 30, 2024 (MOP thousand) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Renovation Works | 167,117 | 58,923 | 183.6% | | Others (Construction Material Sales) | 3,717 | — | 100% (New Business) | | Total | 170,834 | 58,923 | 190.0% | - The increase in revenue was mainly due to an increase of approximately MOP 108.2 million or 183.6% from renovation projects[50] - The expansion of the Macau construction material sales business contributed approximately MOP 3.7 million in revenue[50] Gross Profit and Gross Profit Margin The Group's gross profit decreased by approximately MOP 1.7 million year-on-year, with the gross profit margin significantly declining by 14.1 percentage points to 6.0% from 20.1%, primarily due to reduced gross profit from completed renovation projects, partially offset by gross profit from construction material sales Gross Profit and Gross Profit Margin (MOP thousand) | Revenue Type | For the six months ended June 30, 2025 Gross Profit (MOP thousand) | For the six months ended June 30, 2025 Gross Profit Margin (%) | For the six months ended June 30, 2024 Gross Profit (MOP thousand) | For the six months ended June 30, 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Renovation Works | 9,865 | 5.9 | 12,061 | 20.5 | | Others | 308 | 8.3 | (210) | — | | Total | 10,173 | 6.0 | 11,851 | 20.1 | - Gross profit margin decreased by 14.1 percentage points from approximately 20.1% in the corresponding period of 2024 to 6.0% in the corresponding period of 2025[51] - The decrease in gross profit margin was mainly due to a reduction of approximately MOP 2.2 million in gross profit recognized from completed renovation projects[51] Other Income Other income decreased from MOP 6.7 million in the prior year to MOP 2.9 million in the current period, primarily because MOP 2.271 million in insurance claim compensation income recognized in the prior year did not recur - For the six months ended June 30, 2025, other income was approximately MOP 2.9 million, mainly comprising bank interest income of approximately MOP 2.6 million[52] - The decrease in other income was primarily due to the absence of MOP 2.271 million in compensation income (insurance claims) recognized in the corresponding period of 2024[52] Other Gains and Losses The current period recorded other gains of approximately MOP 0.9 million, contrasting with other losses of approximately MOP 1.0 million in the prior year, mainly influenced by net exchange gains and fair value changes of financial assets at fair value through profit or loss - For the six months ended June 30, 2025, other gains were approximately MOP 0.9 million, mainly including net exchange gains and fair value changes of financial assets at fair value through profit or loss[53] - For the six months ended June 30, 2024, other losses were approximately MOP 1.0 million, mainly including net exchange losses and fair value changes of financial assets at fair value through profit or loss[53] Impairment Loss under Expected Credit Loss Model Impairment loss decreased by approximately MOP 2.0 million or 159.5%, primarily due to the settlement of some long-aged receivables during the review period - Impairment loss decreased by approximately MOP 2.0 million or 159.5%, mainly due to the settlement of some long-aged receivables during the review period[54] Administrative Expenses Administrative expenses remained largely stable at approximately MOP 13.5 million compared to the prior year, as growth in new business areas was offset by the gradual scaling down of certain non-core businesses - Administrative expenses remained largely stable at approximately MOP 13.5 million compared to the corresponding period of the previous year[55] - The stability in administrative expenses was mainly due to the growth in new business areas being offset by the gradual scaling down of certain non-core businesses[55] Profit for the Period Profit for the period decreased by approximately MOP 2.0 million to MOP 0.5 million, primarily reflecting the combined impact of the aforementioned financial changes - Profit for the six months ended June 30, 2025, was approximately MOP 0.5 million, a decrease of approximately MOP 2.0 million compared to the prior year[56] - This change was primarily due to the combined impact of the aforementioned financial items[56] Dividends For the six months ended June 30, 2025, the company did not pay, declare, or propose any dividends - For the six months ended June 30, 2025, no dividends were paid, declared, or proposed[57] Corporate Finance and Risk Management The Group's capital expenditure and working capital are primarily funded by cash generated from operations, maintaining a healthy liquidity position with increased cash and bank balances, a reduced gearing ratio, and ample unutilized bank facilities, while facing foreign exchange fluctuation risks without a current hedging policy Liquidity and Financial Resources As of June 30, 2025, the Group's total cash and bank balances, together with pledged bank deposits, increased to MOP 146 million, with the gearing ratio significantly decreasing to 5.2%, a current ratio of 1.9 times, and MOP 154.7 million in unutilized bank facilities - As of June 30, 2025, total cash and bank balances, together with pledged bank deposits, were approximately MOP 146 million, an increase of approximately MOP 29 million from the end of 2024[58] - The gearing ratio decreased from 9.2% at the end of 2024 to 5.2% as of June 30, 2025, mainly due to a reduction in bank overdrafts[58] - As of June 30, 2025, the Group had unutilized bank facilities of approximately MOP 154.7 million[58] - The Group's current ratio as of June 30, 2025, was 1.9 times[58] Future Plans for Material Investments and Capital Assets Other than those disclosed in the prospectus and this announcement, the Group has no other future plans for material investments or capital assets - Other than those disclosed in the prospectus and this announcement, the Group has no other plans for material investments or capital assets[60] Pledge of Assets As of June 30, 2025, the Group's office properties valued at approximately MOP 34.4 million and bank deposits of approximately MOP 72.3 million were pledged to banks as security for bank facilities Pledged Assets (MOP million) | Pledged Assets | As of June 30, 2025 (MOP million) | As of December 31, 2024 (MOP million) | | :--- | :--- | :--- | | Office Properties | 34.4 | 35.1 | | Bank Deposits | 72.3 | 72.1 | Capital Commitments As of June 30, 2025, the Group was obligated to pay RMB 38.0 million (approximately MOP 42.9 million) as capital contribution to Jiangmen Jinying Construction Engineering Co Ltd - As of June 30, 2025, the Group was obligated to pay RMB 38.0 million (equivalent to approximately MOP 42.9 million) as capital contribution to Jiangmen Jinying Construction Engineering Co Ltd[62] Material Investments, Acquisitions and Disposals As of March 2025, the Group completed the acquisition of a Hong Kong company holding SFC Type 4 and Type 9 licenses for business diversification, with no other material investments, acquisitions, or disposals during the period - As of March 2025, the Group completed the acquisition of a Hong Kong-incorporated limited company holding SFC Type 4 (advising on securities) and Type 9 (asset management) licenses[63] - This acquisition is expected to further diversify and expand the Group's business portfolio and open new revenue streams[63] Exchange Rate Fluctuations The Group faces currency risks from transactions denominated in non-functional currencies such as HKD, RMB, and USD, currently without a foreign exchange hedging policy, but management regularly monitors and considers appropriate measures - The Group's currency risk primarily arises from raw material purchases, sales proceeds, and financial asset investments denominated in currencies other than the Group's functional currency, mainly HKD, RMB, and USD[64] - The Group currently has no foreign exchange hedging policy, but management regularly monitors relevant foreign exchange risks and considers appropriate measures[64] Employees and Remuneration As of June 30, 2025, the Group's full-time employee count increased to 232, primarily to support newly awarded renovation projects in the Macau market, with total staff costs for the period amounting to approximately MOP 14.5 million - As of June 30, 2025, the Group had 232 full-time employees, an increase from 159 at the end of 2024[65] - The increase in employee numbers was primarily due to increased resource requirements to support newly awarded renovation projects in the Macau market[65] - Total staff costs for the period ended June 30, 2025, were approximately MOP 14.5 million[65] Compliance with Laws and Regulations The Group confirms its compliance with all relevant laws and regulations in its primary operating locations (Macau, Hong Kong, and China) for the first half of 2025 - The Group has complied with all relevant laws and regulations in Macau, Hong Kong, and China for the six months ended June 30, 2025[66] Key Risks and Uncertainties The Group faces key risks including fluctuations in construction material and labor costs, poor project management or delays, volatile project cash flows, reliance on subcontractors, ability to attract and retain key management and technical talent, and global economic uncertainties - Significant changes in construction material and labor costs may lead to cost overruns, affecting operating results and financial performance[67] - Poor project management or delays will significantly impact goodwill and may incur penalties and/or additional costs[67] - The Group's success largely depends on key management personnel and its ability to attract and retain technical and managerial staff[67] - Global economic uncertainties, particularly due to tensions between China, the US, and the EU[67] Events After Reporting Period The Board is unaware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this announcement - The Board is unaware of any significant events requiring disclosure that occurred after June 30, 2025, and up to the date of this announcement[68] Other Information Corporate Governance The company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the SEHK Listing Rules - The company has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 of the SEHK Listing Rules[69] - For the six months ended June 30, 2025, the company has complied with all applicable code provisions of the Corporate Governance Code[69] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[70] Standard Securities Dealing Code for Directors The company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code - The company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[71] - All directors confirmed their compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[71] Audit Committee The company's Audit Committee, established in August 2018 and comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The company established an Audit Committee on August 17, 2018, comprising three independent non-executive directors, with Mr Au Yeung Wai Lap as Chairman of the Audit Committee[72] - The unaudited condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed by the Audit Committee and the Group's auditor, Tianzhi Hong Kong Certified Public Accountants Limited[72]