宏强控股(08262) - 2022 - 中期财报

Company Information and GEM Characteristics This section outlines Strong Force Holdings Limited's incorporation and GEM listing details, highlighting the GEM market's characteristics and associated investment risks Company Name and Registration Information Strong Force Holdings Limited, incorporated in the Cayman Islands in 2015 and listed on GEM in 2016, primarily operates as an investment holding company with property construction services in Hong Kong - The Company was incorporated in the Cayman Islands on September 22, 2015, and listed on GEM of the Stock Exchange on March 30, 2016[11] - The Company's principal business is investment holding, with the Group's main business being the provision of property construction services in Hong Kong[12] GEM Market Features and Risk Disclosure The GEM market provides a listing platform for small and medium-sized companies with higher investment risks, and investors should be aware of potential market volatility and uncertain liquidity - GEM is positioned as a listing market for small and medium-sized companies with higher investment risks compared to other listed companies on the Stock Exchange[3] - Securities traded on GEM may be subject to greater market fluctuation risks, and high liquidity is not guaranteed[3] Interim Results Overview This section provides an overview of the unaudited condensed consolidated financial statements, including profit or loss, financial position, equity changes, and cash flows for the six months ended December 31, 2021 Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended December 31, 2021, the Company reported significant revenue growth but still incurred a loss, with basic loss per share at 1.23 HK Cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended December 31) | Indicator | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 53,082 | 44,304 | | Direct costs | (52,205) | (64,128) | | (Gross loss)/Gross profit | 877 | (19,824) | | Other income | 153 | 3,536 | | Administrative expenses | (10,842) | (8,450) | | Finance costs | (42) | (59) | | Loss before tax | (9,854) | (24,797) | | Income tax credit | – | – | | Loss and total comprehensive expenses for the period | (9,854) | (24,797) | | Loss for the period attributable to owners of the Company | (9,852) | (24,784) | | Loss per share (HK Cents) | (1.23) | (3.10) | Unaudited Condensed Consolidated Statement of Financial Position As of December 31, 2021, total non-current and current assets slightly decreased, while current liabilities increased, leading to a reduction in net current assets and total equity Condensed Consolidated Statement of Financial Position (As of December 31) | Indicator | December 31, 2021 (HK$ Thousand) | June 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current assets | 51,611 | 51,772 | | Current assets | 126,459 | 127,753 | | Current liabilities | 58,224 | 49,825 | | Net current assets | 68,235 | 77,928 | | Net assets | 119,755 | 129,609 | | Equity attributable to owners of the Company | 119,757 | 129,609 | Unaudited Condensed Consolidated Statement of Changes in Equity For the six months ended December 31, 2021, equity attributable to owners of the Company decreased from HK$129,609 thousand on July 1, 2021, to HK$119,757 thousand due to the loss for the period Changes in Equity Attributable to Owners of the Company (For the six months ended December 31) | Indicator | December 31, 2021 (HK$ Thousand) | December 31, 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Share capital | 8,000 | 8,000 | | Share premium | 40,903 | 40,903 | | Capital contribution | 11,572 | 11,572 | | Share option reserve | 5,557 | 4,985 | | Retained profits | 53,725 | 61,267 | | Subtotal of equity attributable to owners of the Company | 119,757 | 126,727 | | Non-controlling interests | (2) | 8,062 | | Total equity | 119,755 | 134,789 | - Loss and total comprehensive expenses for the period resulted in a HK$9,852 thousand decrease in equity attributable to owners of the Company[7] Unaudited Condensed Consolidated Statement of Cash Flows For the six months ended December 31, 2021, the Company experienced net cash outflows from both operating and investing activities, leading to a net decrease in cash and cash equivalents, with the period-end balance at HK$42,973 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended December 31) | Indicator | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (11,763) | (22,855) | | Net cash used in investing activities | (2) | (44,672) | | Net cash used in financing activities | (42) | (59) | | Net decrease in cash and cash equivalents | (11,807) | (67,586) | | Cash and cash equivalents at beginning of period | 54,780 | 131,444 | | Cash and cash equivalents at end of period | 42,973 | 63,858 | Notes to the Condensed Consolidated Financial Statements This section details the basis of preparation, significant accounting policies, segment information, and specific financial statement items, including revenue, expenses, equity, and related party transactions General Information The Company, incorporated in the Cayman Islands and listed on GEM, primarily engages in investment holding and property construction services in Hong Kong, with financial statements presented in HKD - The Company was incorporated in the Cayman Islands on September 22, 2015, and listed on GEM of the Stock Exchange on March 30, 2016[11] - The Company's principal business is investment holding, with the Group's main business being the provision of property construction services in Hong Kong[12] - The unaudited condensed consolidated financial statements are presented in Hong Kong Dollars (HKD), which is the Company's functional currency[13] Basis of Preparation The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules Chapter 18, with consistent accounting policies as the audited financial statements for the year ended June 30, 2021, and no significant changes from new standards - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA and the applicable disclosure requirements of Chapter 18 of the GEM Listing Rules[14] - The accounting policies and methods of computation used in preparing the Group's unaudited condensed consolidated financial statements for the period are consistent with those applied in the Group's audited financial statements for the year ended June 30, 2021[14] Revenue and Segment Information The Group's revenue is entirely derived from construction services in Hong Kong, presented as a single operating segment based on overall performance assessment, with major customers A and B contributing most of the 2021 revenue - The Group's business for both periods is entirely derived from construction services in Hong Kong, presented as a single operating segment[17] Revenue Contribution by Major Customers (For the six months ended December 31) | Customer | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Customer A | 20,967 | 1,385 | | Customer B | 7,344 | – | Loss Before Tax For the six months ended December 31, 2021, the Company's loss before tax narrowed to HK$9,854 thousand from HK$24,797 thousand in the prior year, primarily due to staff costs and directors' emoluments Components of Loss Before Tax (For the six months ended December 31) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 375 | 375 | | Directors' emoluments | 1,968 | 1,388 | | Total staff costs | 11,833 | 9,719 | | Operating lease payments | 885 | 885 | - For the six months ended December 31, 2021, loss before tax was HK$9,854 thousand, a significant year-on-year reduction[5] Other Income For the six months ended December 31, 2021, other income significantly decreased to HK$153 thousand, primarily due to the absence of 'Employment Support Scheme' and exchange gains present in the prior period Components of Other Income (For the six months ended December 31) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Bank interest income | 3 | – | | Employment Support Scheme | – | 2,133 | | Exchange gain | – | 1,246 | | Interest income from life insurance policy payments | 150 | 157 | | Total | 153 | 3,536 | Income Tax Expense For the six months ended December 31, 2021, the Group incurred no income tax expense due to a recorded loss, with Hong Kong profits tax applying a two-tiered system of 8.25% for the first HK$2 million of assessable profits and 16.5% thereafter - The Group had no income tax expense for the period, which was due to the Group recording a loss[50] - Under the two-tiered profits tax regime in Hong Kong, the first HK$2,000,000 of assessable profits for qualifying group entities is taxed at 8.25%, with profits exceeding HK$2,000,000 taxed at 16.5%[24] Dividends The Board does not recommend the payment of an interim dividend for the six months ended December 31, 2021, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended December 31, 2021 (December 31, 2020: nil)[25] Loss Per Share For the six months ended December 31, 2021, basic and diluted loss per share attributable to owners of the Company improved to 1.23 HK Cents from 3.10 HK Cents in the prior period, primarily due to a narrower loss Loss Per Share (For the six months ended December 31) | Indicator | 2021 (HK$ Thousand/Thousand Shares) | 2020 (HK$ Thousand/Thousand Shares) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (9,852) | (24,784) | | Weighted average number of ordinary shares | 800,000 | 800,000 | | Basic and diluted loss per share (HK Cents) | (1.23) | (3.10) | Property, Plant and Equipment During the period, the Group made no acquisitions of property, plant, and equipment, consistent with the situation as of June 30, 2021 - During the period, the Group made no acquisitions of property, plant, and equipment (June 30, 2021: nil)[28] Trade Receivables As of December 31, 2021, the Group's total trade receivables increased slightly to HK$10,818 thousand from June 30, 2021, with a notable increase in receivables aged 31 to 60 days Ageing Analysis of Trade Receivables (As of December 31) | Ageing | December 31, 2021 (HK$ Thousand) | June 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 5,608 | 7,657 | | 31 to 60 days | 4,203 | 886 | | 61 to 180 days | 1,007 | 1,862 | | Total | 10,818 | 10,405 | - The credit period granted by the Group to its customers ranges from 30 to 60 days from the invoice date of contract work progress payments[30] Trade Payables As of December 31, 2021, the Group's total trade payables increased to HK$10,051 thousand from June 30, 2021, primarily concentrated in the 0 to 30 days ageing category Ageing Analysis of Trade Payables (As of December 31) | Ageing | December 31, 2021 (HK$ Thousand) | June 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 8,627 | 3,328 | | 31 to 60 days | – | – | | 61 to 180 days | 1,424 | 2,995 | | Over 180 days | – | 272 | | Total | 10,051 | 6,595 | - The credit period granted by suppliers and subcontractors to the Group is 30 to 60 days[31] Bank Borrowings As of December 31, 2021, the Group's total revolving bank borrowings remained at HK$5,000 thousand, consistent with June 30, 2021, and are repayable on demand Bank Borrowings (As of December 31) | Type | December 31, 2021 (HK$ Thousand) | June 30, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Revolving bank borrowings – repayable on demand | 5,000 | 5,000 | Share Capital As of December 31, 2021, the Company's authorized share capital was HK$20,000 thousand, with issued and fully paid share capital of HK$8,000 thousand, comprising 800,000,000 ordinary shares of HK$0.01 each, unchanged from June 30, 2021 Share Capital Details (As of December 31) | Type | Number of Shares | Par Value (HK$ Thousand) | | :--- | :--- | :--- | | Authorized share capital | 2,000,000,000 | 20,000 | | Issued and fully paid share capital | 800,000,000 | 8,000 | Share-based Payment Transactions The Company established a share option scheme in 2016 to reward eligible participants, with 49,200,000 share options outstanding as of December 31, 2021, and no new options granted during the period - The Company established a share option scheme on March 9, 2016, to reward or compensate eligible participants for their contributions to the Group[34] - As of December 31, 2021, a total of 49,200,000 share options remained outstanding[83][39] - The Group did not grant any share options during the period (2020: nil)[37] Commitments During the period, the Group had no outstanding operating lease commitments related to lease payments, consistent with the situation as of June 30, 2021 - During the period, the Group had no outstanding operating lease commitments related to lease payments (June 30, 2021: nil)[40] Related Party Transactions For the six months ended December 31, 2021, total key management personnel compensation increased to HK$1,968 thousand from the prior period, primarily comprising short-term benefits and post-employment benefits Key Management Personnel Compensation (For the six months ended December 31) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | | :--- | :--- | :--- | | Short-term benefits | 1,959 | 1,379 | | Post-employment benefits | 9 | 9 | | Total | 1,968 | 1,388 | Management Discussion and Analysis This section provides a comprehensive review of the Group's business operations, financial performance, liquidity, and risk management strategies, along with future outlook and human resources policies Business Review and Outlook The Group actively participates in construction project bidding, operates five main projects, and monitors ten largely completed projects, while facing intense competition and pandemic uncertainties, it plans to cautiously bid and expand into the China construction market and other profitable areas, including a developer role in the Lin Tong Mei Tsuen project in Fanling, New Territories - During the period, the Group actively participated in industry activities, submitted 24 construction project tenders, and focused on operating five major projects[43] - The Group faces intense competition and uncertainties in the current economic environment, leading to continuous decline in project profit margins[43] - The Group will seek to expand its business and pursue profitable ventures in other areas, including establishing a joint venture in Sichuan Province, China, to bid for Chinese government construction projects, and acting as a developer in Hong Kong[44] Financial Review For the six months ended December 31, 2021, the Group's revenue increased by 19.9% year-on-year, gross profit turned from loss to profit, administrative expenses rose due to increased staff costs, and loss for the period significantly narrowed Revenue The Group's revenue increased by approximately 19.9% from HK$44,300,000 in the prior period to approximately HK$53,100,000 in 2021, primarily due to an increase in ongoing construction projects Revenue Comparison (For the six months ended December 31) | Year | Amount (HK$) | Year-on-year Growth | | :--- | :--- | :--- | | 2021 | 53,100,000 | 19.9% | | 2020 | 44,300,000 | - | Direct Costs Direct costs decreased by approximately 18.6% from HK$64,100,000 in the prior period to approximately HK$52,200,000 in 2021, mainly due to the absence of additional costs incurred in the late stages of completion in the previous period Direct Costs Comparison (For the six months ended December 31) | Year | Amount (HK$) | Year-on-year Change | | :--- | :--- | :--- | | 2021 | 52,200,000 | -18.6% | | 2020 | 64,100,000 | - | Gross Profit The Group's gross profit turned from a loss of HK$19,800,000 in the prior period to a profit of HK$900,000 in 2021, primarily due to the absence of additional costs incurred in the late stages of completion in the previous period Gross Profit Comparison (For the six months ended December 31) | Year | Amount (HK$) | | :--- | :--- | | 2021 | 900,000 (Gross Profit) | | 2020 | (19,800,000) (Gross Loss) | Administrative Expenses Administrative expenses increased by approximately 27.1% from HK$8,500,000 in the prior period to approximately HK$10,800,000 in 2021, mainly due to increases in staff costs, business entertainment, and charitable donations Administrative Expenses Comparison (For the six months ended December 31) | Year | Amount (HK$) | Year-on-year Growth | | :--- | :--- | :--- | | 2021 | 10,800,000 | 27.1% | | 2020 | 8,500,000 | - | Income Tax Expense The Group incurred no income tax expense during the period, primarily due to recording a loss - The Group had no income tax expense for the period (December 31, 2020: nil), which was due to the Group recording a loss[50] Loss and Total Comprehensive Expenses for the Period Attributable to Owners of the Company Loss and total comprehensive expenses for the period attributable to owners of the Company significantly decreased to approximately HK$9,900,000 from approximately HK$24,800,000 in the prior period, mainly due to the absence of additional costs incurred in the late stages of completion in the previous period Loss and Total Comprehensive Expenses for the Period Attributable to Owners of the Company Comparison (For the six months ended December 31) | Year | Amount (HK$) | | :--- | :--- | | 2021 | 9,900,000 | | 2020 | 24,800,000 | Liquidity and Financial Resources The Group maintained a sound financial position as of December 31, 2021, with bank balances and cash of approximately HK$43,000,000, a current ratio of approximately 2.2 times, and total assets of approximately HK$178,100,000 - The Group maintained a sound financial position during the period[53] Liquidity and Financial Resources (As of December 31) | Indicator | December 31, 2021 (HK$) | June 30, 2021 (HK$) | | :--- | :--- | :--- | | Bank balances and cash | 43,000,000 | 54,800,000 | | Pledged bank balances | 10,800,000 | 10,800,000 | | Total interest-bearing borrowings | 5,000,000 | 5,000,000 | | Current ratio | 2.2 times | 2.6 times | | Total assets | 178,100,000 | 179,500,000 | | Total liabilities | 58,300,000 | 49,900,000 | | Shareholders' equity | 119,400,000 | 129,600,000 | Gearing Ratio As of December 31, 2021, the Group's gearing ratio remained low at approximately 4.2%, primarily due to sufficient bank balances and cash Gearing Ratio (As of December 31) | Year | Gearing Ratio | | :--- | :--- | | December 31, 2021 | 4.2% | | June 30, 2021 | 3.9% | - The ratio remained low due to the Group's sufficient bank balances and cash[54] Treasury Policy The Group adopts a prudent financial management strategy, maintaining a sound liquidity position and managing risks through continuous credit assessment and close monitoring of liquidity - The Group adopted a prudent financial management strategy in formulating its treasury policy, thereby maintaining a sound liquidity position for the six months ended December 31, 2021[55] - The Group continuously conducts credit assessments and financial status evaluations of its customers to mitigate credit risk[55] Pledge of Assets As of December 31, 2021, the Group pledged bank deposits of approximately HK$10,800,000 and paid deposits for life insurance policies with a net book value of approximately HK$9,500,000 to a bank as collateral for bank financing - The Group pledged bank deposits of approximately HK$10,800,000 to a bank as collateral for bank financing granted to the Group[57] - The Group pledged paid deposits for its life insurance policies (total net book value of approximately HK$9,500,000) as collateral for bank financing granted to the Group[57] Foreign Exchange Risk All of the Group's revenue-generating businesses and borrowings are transacted in HKD, its functional currency, thus it faced no significant foreign exchange fluctuation risk for the six months ended December 31, 2021, and has no hedging policy - All of the Group's revenue-generating businesses and borrowings are transacted in Hong Kong Dollars (HKD), which is the functional currency for all Group entities[59] - For the six months ended December 31, 2021, the Group did not face significant foreign exchange fluctuation risk, and the Group has not formulated any hedging policy for foreign currency risk[59] Capital Structure For the six months ended December 31, 2021, the Group's capital structure remained unchanged, with issued share capital of HK$8,000,000 comprising 800,000,000 shares of HK$0.01 each - For the six months ended December 31, 2021, there were no changes in the Group's capital structure[60] - As of December 31, 2021, the Company's issued share capital was HK$8,000,000, and the number of its issued ordinary shares was 800,000,000 shares of HK$0.01 each[60] Commitments As of December 31, 2021, the Group had no capital commitments - As of December 31, 2021, the Group had no capital commitments (June 30, 2021: nil)[61] Segment Information The Group's segment information is disclosed in Note 3 to the unaudited condensed consolidated financial statements, indicating its primary business focus on construction services in Hong Kong - The Group's segment information is disclosed in Note 3 to the unaudited condensed consolidated financial statements[62] Future Plans for Material Investments and Capital Assets As of December 31, 2021, the Group had no plans for any material investments or capital assets - As of December 31, 2021, the Group had no plans for any material investments or capital assets[63] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[65] Contingent Liabilities As of December 31, 2021, the Group provided performance guarantees of approximately HK$10,800,000 to customers, but directors believe claims are unlikely, with no other material contingent liabilities - As of December 31, 2021, banks provided performance guarantees of approximately HK$10,800,000 to the Group's customers as beneficiaries[66] - The Group has contingent liabilities involving indemnifying banks for any claims made by customers under guarantees due to the Group's failure to fulfill its obligations[66] - At the end of both reporting periods, the directors of the Company believed that the Group was unlikely to face claims[66] Employees and Remuneration Policy As of December 31, 2021, the Group employed 48 staff with total staff costs of approximately HK$11,800,000, offering competitive remuneration, retirement, medical benefits, training subsidies, and share options to attract and retain talent - As of December 31, 2021, the Group employed a total of 48 staff (December 31, 2020: 48 staff)[67] - The Group's staff costs (including directors' emoluments) for the six months ended December 31, 2021, were approximately HK$11,800,000[67] - The Group provides competitive remuneration packages, retirement benefits, medical benefits, and training course subsidies, and grants share options to eligible employees[67] Other Information This section covers material investments, disclosures of interests for directors and substantial shareholders, competing interests, securities transactions, corporate governance, dividends, post-reporting period events, share option scheme, and the Audit Committee's review Material Investments Held During the period, the Group held no material investments other than its investments in subsidiaries - During the period, the Group held no material investments other than its investments in subsidiaries[69] Disclosure of Interests This section discloses the interests and short positions of directors, chief executives, and substantial shareholders in the Company's shares or related shares Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures As of December 31, 2021, Mr. Kwok Tung Keung held 250,000,000 shares (controlled corporation interest) and 23,700,000 share options, while Mr. Ko Chun Hei held 149,500,000 shares and 23,700,000 share options Directors' Long Positions in Shares (As of December 31, 2021) | Director's Name | Nature of Interest | Number of Shares Interested | Number of Share Options | Percentage of Shareholding (Approximate) | | :--- | :--- | :--- | :--- | :--- | | Mr. Kwok Tung Keung | Interest in controlled corporation | 250,000,000 | – | 31.25% | | Mr. Kwok Tung Keung | Beneficial owner | – | 23,700,000 | 2.96% | | Mr. Ko Chun Hei | Beneficial owner | 149,500,000 | – | 18.69% | | Mr. Ko Chun Hei | Beneficial owner | – | 23,700,000 | 2.96% | - Mr. Kwok beneficially owns 100% of the issued share capital of Best Brain Investments Limited and is therefore deemed to be interested in the shares held by Best Brain[70] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares or Underlying Shares As of December 31, 2021, substantial shareholder Best Brain Investments Limited held 250,000,000 shares, representing 31.25% of the Company's total issued share capital Substantial Shareholders' Long Positions in Shares (As of December 31, 2021) | Shareholder Name | Nature of Interest | Number of Shares Interested | Long/Short Position | Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | :--- | | Best Brain | Beneficial owner | 250,000,000 | Long Position | 31.25% | Competing Interests During the period, the Directors were unaware of any business or interest of the Directors, controlling shareholders, or their respective associates that competed or might compete with the Group's business, or any other conflicts of interest - During the period, the Directors were unaware of any business or interest of the Directors, controlling shareholders of the Company, or any of their respective associates that competed or might compete with the Group's business, nor were they aware of any other conflicts of interest that such persons had or might have with the Group[75] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[76] Corporate Governance Code The Company's corporate governance practices are based on the principles and code provisions of the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, and it has complied with the relevant rules during the period - The Company's corporate governance practices are based on the principles and code provisions set out in the Corporate Governance Code and Corporate Governance Report in Appendix 15 of the GEM Listing Rules[77] - During the period, the Company has complied with the relevant rules of the Corporate Governance Code[78] Code of Conduct Regarding Securities Transactions by Directors The Group has adopted a strict code of conduct for directors' securities transactions, and all directors confirmed full compliance with this code during the period - The Group has adopted a code of conduct regarding securities transactions by directors, with terms no less exacting than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[79] - The Company has made specific enquiries to all Directors, and all Directors have confirmed their full compliance with the required standard of dealings set out in the code of conduct during the period[79] Dividends The Board does not recommend the payment of an interim dividend for the six months ended December 31, 2021 - The Board does not recommend the payment of an interim dividend for the six months ended December 31, 2021[80] Events After Reporting Period As of the date of this announcement, to the best of the Board's knowledge, no material discloseable events have occurred after the reporting period, other than those disclosed herein - As of the date of this announcement, to the best of the Board's knowledge, no material discloseable events have occurred after the reporting period, other than those disclosed in this announcement[81] Share Option Scheme The Company's share option scheme was approved on March 9, 2016, with 49,200,000 options outstanding as of December 31, 2021, and no grants, exercises, cancellations, or lapses during the period - The Company's shareholders approved and adopted the share option scheme by way of written resolutions on March 9, 2016[83] - 49,200,000 share options remained unexercised as of December 31, 2021[83] - During the period, no share options were granted, exercised, cancelled, or lapsed[84] Audit Committee The Audit Committee, established on March 9, 2016, comprises three independent non-executive directors with Ms. Wong Shuk Fong as Chairlady, and has reviewed the report, unaudited condensed consolidated results, and internal control system for the six months ended December 31, 2021, confirming compliance with applicable accounting standards and listing rules - The Board established the Audit Committee on March 9, 2016, comprising three independent non-executive Directors, with Ms. Wong Shuk Fong as the Chairlady[86] - The primary responsibilities of the Audit Committee include reviewing and monitoring the Group's financial reporting procedures and internal control systems, nominating and overseeing external auditors, and providing advice and recommendations to the Board on corporate governance matters[86] - The Audit Committee has reviewed this report and the effectiveness of the Group's unaudited condensed consolidated results and internal control system for the six months ended December 31, 2021, deeming them compliant with applicable accounting standards, GEM Listing Rules, and other legal requirements[86]