Wai Hung : Interim Report 2020

CONTENTS

Corporate Information	2
Management Discussion and Analysis	4
Other Information	14
Consolidated Statement of Profit or Loss and Other Comprehensive Income	22
Consolidated Statement of Financial Position	23
Consolidated Statement of Changes in Equity	24
Consolidated Statement of Cash Flows	26
Notes to the Consolidated Financial Statements	27

Wai Hung Group Holdings Limited | Interim Report 2020

1

CORPORATE INFORMATION

BOARD OF DIRECTORS

Executive Directors

Mr. Li Kam Hung

• (Chairman & Chief Executive Officer) Mr. Yu Ming Ho
  Mr. Yau Yan Ming Raymond
• (appointed on 17 April 2020)

Mr. Cen Guangming

• (appointed on 23 July 2020 and
• resigned on 2 September 2020) Mr. Ge Lintao
• (appointed on 2 September 2020)

Non-executive Director

Mr. Li Chun Ho

Mr. Zhu Jun (appointed on 15 July 2020)

Independent Non-executive Directors

Ms. Rita Botelho dos Santos

Mr. Wu Chou Kit

Mr. Lam Chi Wing

AUDIT COMMITTEE

Ms. Rita Botelho Dos Santos (Chairman)

Mr. Wu Chou Kit

Mr. Lam Chi Wing

REMUNERATION COMMITTEE

Mr. Lam Chi Wing (Chairman)

Mr. Yu Ming Ho

Mr. Wu Chou Kit

NOMINATION COMMITTEE

Mr. Li Kam Hung (Chairman)

Mr. Wu Chou Kit

Mr. Lam Chi Wing

AUTHORISED

REPRESENTATIVES

Mr. Li Kam Hung

Mr. Yau Yan Yuen

COMPANY SECRETARY

Mr. Yau Yan Yuen (CPA)

AUDITOR

Deloitte Touche Tohmatsu

COMPLIANCE ADVISER

Red Sun Capital Limited

REGISTERED OFFICE

Cricket Square

Hutchins Drive

P.O. Box 2681

Grand Cayman KY1-1111

Cayman Islands

HEADQUARTERS AND PRINCIPAL PLACE OF BUSINESS IN MACAU

Alameda Dr. Carlos d'Assumpcao No. 258 Praca Kin Heng Long 16 Andar G-H, Macau

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Unit 13, 24th Floor

Honour Industrial Centre

6 Sun Yip Street

Chai Wan, Hong Kong

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

Conyers Trust Company (Cayman) Limited

Cricket Square

Hutchins Drive

P.O. Box 2681

Grand Cayman KY1-1111

Cayman Islands

2	Wai Hung Group Holdings Limited | Interim Report 2020

CORPORATE INFORMATION

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE

Tricor Investor Services Limited

Level 54 Hopewell Centre

183 Queen's Road East

Hong Kong

PRINCIPAL BANK

Luso International Banking Ltd.

LEGAL ADVISER

As to Hong Kong Laws

Chungs Lawyers (in association with DeHeng Law Offices)

STOCK CODE

3321

(listed on the Main Board of The Stock Exchange of Hong Kong Limited)

WEBSITE

whh.com.hk

Wai Hung Group Holdings Limited | Interim Report 2020

3

MANAGEMENT DISCUSSION AND ANALYSIS

The board (the "Board") of directors (the "Directors") of Wai Hung Group Holdings Limited (the "Company") is pleased to present the unaudited consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 June 2020 (the "Reporting Period"), together with the comparative figures for the corresponding period in 2019 (the "Previous Period").

BUSINESS REVIEW AND PROSPECTS

The shares of the Company (the "Shares") were successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 23 April 2019 (the "Listing Date"). The net proceeds from the share offer (the "Share Offer") amounted to approximately HK$141.2 million (after deducting underwriting fees and commissions and all related expenses).

The Group is a contractor providing fitting-out services and repair and maintenance services in Macau. The Group's fitting-out services primarily cover refitting works for existing buildings and extend to casinos, retail areas, hotels, restaurants, commercial properties and residential properties. We primarily focus on providing fitting-out services for the commercial segment, in particular facilities located within integrated resorts in Macau.

The Group undertook projects as both main contractor and subcontractor. The majority of its revenue was derived from projects in which we were engaged as main contractor by major licensed casino gaming operators in Macau. To a lesser extent, the Group was also engaged as subcontractor by other fitting-out contractors in Macau.

The Group has established business relationship with major licensed casino gaming operators in Macau. Majority of the customers are group companies of the six licensed casino gaming operators in Macau, and the shares of their respective holding companies are listed on the Stock Exchange. The Group believes that its experienced management team with profound industry knowledge, its ability to maintaining long-term business relationships with its major customers and a stable pool of suppliers and subcontractors have contributed to its success.

4	Wai Hung Group Holdings Limited | Interim Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS

Since the beginning of 2020, the sudden outbreak of the Novel Coronavirus ("COVID-19") around the world has brought severe tests and huge challenges to the society of Macau and the Group. In control to prevent the outbreak of COVID-19, the Macau government had temporarily suspended the operation of casinos and related venues. At the same time, the Macau government implemented strict immigration policies and isolation measures in stages, adjusted the customs clearance time and arrangements at various ports, and controlled the flow of inbound and outbound travellers. These temporary measures have caused delay in the progress of certain fitting-out projects of the Group. The delay in progress had impacted on the revenue of the fitting-out projects in progress, which had resulted in a decline in the financial performance of the Group for the six months ended 30 June 2020.

The economy of Macau was hit hard by the outbreak of COVID-19. However, with two decades of development, in line with Macau's own unique advantages, and by capturing the major strategic opportunities brought by "Belt and Road" of the PRC and the construction of the Guangdong-HongKong-Macao Greater Bay Area, there is still much room and potential for future development in the economy of Macau. At the same time, the Macau government has been promoting the development of local tourism and leisure industry as well as the collaborative development with the Guangdong-HongKong-Macao Greater Bay Area so as to build an international tourism and leisure resort center. The Group remains confident in the prospects of Macau's economic development.

The Group believes that the temporary shock will not affect the mid-and-long-term development of Macau. As the situation of the COVID-19 outbreak is being managed by the Macau government and becoming under control, Macau's economy and the Group's performance are expected to gradually recover and enter into a new stage of development.

Wai Hung Group Holdings Limited | Interim Report 2020

5

MANAGEMENT DISCUSSION AND ANALYSIS

The Group intends to further expand its business scope and various sources of income to create maximum value for the Group and its Shareholders as a whole. On 30 June 2020, the Company entered into a framework cooperation agreement with Qianhai Baifu (Shenzhen) Industrial Co., Ltd.* (前海百福（深圳）實業有限公司) ("Qianhai Baifu"), being a company established in the PRC with limited liability and is principally engaged in mining, processing and sales of mineral products and intends to acquire 55% interest in the mining rights of Tibet Baqiancuo Salt Lake* (西藏捌千錯鹽湖) from Tibet Ali Liyuan Mining Development Co., Ltd.* (西藏阿里鋰源礦業開發有限公司), pursuant to which the parties proposed to cooperate in the exploration, development and comprehensive utilization of resources, such as boron, lithium and potassium in the PRC. Also, on 28 July 2020, the Company entered into a framework cooperation agreement with Jiangxi Ning Yu Lithium Battery Manufacturing Company Limited* (江西寧宇鋰電製造有限公司) ("Jiangxi Ning Yu"), being a company established in the PRC with limited liability and is principally engaged in research and development of the Lithium Battery and beneficially owns seven exclusive patents registered with the China National Intellectual Property Administration, pursuant to which the Group intends to supply Jiangxi Ning Yu with boron, lithium, potassium and other resources on the most favorable terms, and Jiangxi Ning Yu intends to provide the Group with patents and production technologies for long-life energy storage lithium battery on the most favorable terms.

In line with business expansion, the Group appointed (i) Mr. Zhu Hun as a non-executive Director and chief scientist of the Company on 15 July 2020; (ii) Mr. Cen Guangming on 23 July 2020 as an executive Director and the head of corporate finance department of the Company, whom subsequently resigned as an executive Director on 2 September 2020 but remained as the Company's head of corporate finance department; and (iii) Mr. Ge Lintao as an executive Director on 2 September 2020 to provide technical and corporate finance and investment related advice to the Group. In addition to the aforesaid changes in composition of the Board, the Company has also appointed Mr. Yau Yan Ming Raymond as an executive Director with effect from 17 April 2020.

FINANCIAL REVIEW

For the six months ended 30 June 2019 and 2020, total revenue amounted to approximately MOP238.5 million and MOP137.0 million, of which revenue generated from providing fitting- out services constituted approximately 99.8% and 99.7% of total revenue, respectively. The remaining approximately 0.3% of the total revenue for the six months ended 30 June 2020 was derived from the Group's repair and maintenance services.

For the six months ended 30 June 2020, the Group recorded profit for the period of approximately MOP14.5 million (30 June 2019: approximately MOP18.2 million). During the six months ended 30 June 2020, the Group completed 19 fitting-out projects and was awarded 15 fitting-out projects, all of which are based in Macau.

*  For identification purposes only

6	Wai Hung Group Holdings Limited | Interim Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS

Revenue

Revenue decreased by approximately MOP101.5 million or 42.6% from approximately MOP238.5 million for the six months ended 30 June 2019 to approximately MOP137.0 million for the six months ended 30 June 2020. Such decrease was mainly due to the delay in progress of certain fitting-out projects as a result of the COVID-19 pandemic.

Direct costs

The total amount of subcontracting fees, materials costs and direct labour costs decreased by approximately MOP89.4 million or 45.8% from approximately MOP195.1 million for the six months ended 30 June 2019 to approximately MOP105.7 million for the six months ended 30 June 2020, which generally reflected the decrease in costs associated with the decrease in revenue.

Gross profit and gross profit margin

The gross profit decreased by approximately MOP12.2 million from approximately MOP43.4 million for the six months ended 30 June 2019 to approximately MOP31.2 million for the six months ended 30 June 2020. The Group recorded gross profit margin of approximately 18.2% and 22.8% for the six months ended 30 June 2019 and the six months ended 30 June 2020, respectively. The period-to-period increase in gross profit margin was mainly attributable to the comparatively higher gross profit margin of sizeable contracts undertaken by the Group during the six months ended 30 June 2020 compared to the six months ended 30 June 2019, in particular, the four fitting-out contracts with aggregate original contract sum of approximately MOP169.0 million.

Other income and losses

Other income has increased from approximately MOP1.0 million for the six months ended 30 June 2019 to approximately MOP1.3 million for the six months ended 30 June 2020, such increase was mainly attributable to the government grant for COVID-19 amounted to approximately MOP1.2 million.

Other losses remained largely insignificant at approximately MOP111,000 and MOP61,000 for the six months ended 30 June 2019 and 2020, respectively.

Wai Hung Group Holdings Limited | Interim Report 2020

7

MANAGEMENT DISCUSSION AND ANALYSIS

Administrative expenses

Administrative expenses amounted to approximately MOP14.3 million and MOP14.4 million for the six months ended 30 June 2019 and 2020, respectively, which accounted for approximately 6.0% and 10.5% of the total revenue during the respective periods. The largest item under administrative expenses was administrative staff costs, which amounted to approximately MOP6.7 million and MOP8.4 million for the six months ended 30 June 2019 and 2020, respectively, which accounted for approximately 46.9% and 58.3% of the total administrative expenses during the respective periods.

Increase in administrative expenses was also mainly attributable to the increase in administrative staff costs by approximately MOP1.7 million from approximately MOP6.7 million for the six months ended 30 June 2019 to approximately MOP8.4 million for the six months ended 30 June 2020. The increase was mainly attributable to the increase in administrative work.

The remaining balance of administrative expenses mainly consisted of rental expenses, office expenses, depreciation and general expenses.

Finance costs

For the six months ended 30 June 2019 and 2020, finance costs amounted to approximately MOP217,000 and MOP717,000, respectively. Finance costs increased by approximately MOP500,000, which was primarily due to a increase in our average outstanding bank borrowings during the six months ended 30 June 2020.

Income tax expenses

For six months ended 30 June 2019 and 2020, the Group recorded income tax expenses of approximately MOP4.4 million and MOP2.8 million, representing an effective tax rate of approximately 19.4% and 16.3%, respectively.

Income tax decreased by approximately MOP1.6 million from approximately MOP4.4 million for the six months ended 30 June 2019 to approximately MOP2.8 million for the six months ended 30 June 2020. Such decrease was mainly attributable to the decrease in the profit before taxation from approximately MOP22.6 million for the six months ended 30 June 2019 to approximately MOP17.3 million for six months ended 30 June 2020.

8	Wai Hung Group Holdings Limited | Interim Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS

Profit for the period

The profit for the six months ended 30 June 2020 amounted to approximately MOP14.5 million, compared to approximately MOP18.2 million for the six months ended 30 June 2019, representing a decrease of approximately MOP3.7 million or 20.3%. Such decrease was mainly due to the combined effect of the aforementioned items.

CORPORATE FINANCE AND RISK MANAGEMENT

Liquidity, Financial and Capital Resources

Cash position

As at 30 June 2020, the pledged bank deposits and bank and cash equivalents balance of the Group amounted to approximately MOP39.3 million in aggregate (31 December 2019: approximately MOP41.7 million), representing a decrease of approximately 5.8% as compared to that as at 31 December 2019. As at 30 June 2020, pledged bank deposits of approximately MOP12.4 million (31 December 2019: MOP12.4 million) are pledged to secure banking facilities of the Group (including bank loans and overdraft).

Borrowings and charges on the Group's assets

As at 30 June 2020, the Group had bank borrowings and bank overdrafts of approximately MOP26.7 million (31 December 2019: approximately MOP10.5 million). The bank borrowings are repayable within one year.

As at 30 June 2020, bank borrowings and other bank facilities including performance guarantee by the Group were secured by: (i) the pledged bank deposits of MOP12.4 million (31 December 2019: approximately MOP12.4 million); and (ii) a corporate guarantee by the Company.

Gearing ratio

As at 30 June 2020, the gearing ratio (calculated by dividing total debts which include payables incurred not in the ordinary course of business excluding amounts are due to related parties with total equity as at the end of the respective period) was approximately 9.7% (31 December 2019: approximately 4.0%).

Wai Hung Group Holdings Limited | Interim Report 2020

9

MANAGEMENT DISCUSSION AND ANALYSIS

Such increase was primarily attributable to the increase in total debts of the Group from approximately MOP10.5 million as at 31 December 2019 to approximately MOP26.7 million as at 30 June 2020, while total equity of the Group was approximately MOP260.5 million and MOP274.8 million as at 31 December 2019 and 30 June 2020, respectively.

Treasury policies

The Group has adopted a prudent treasury management policy to (i) manage the Group's funds ensuring that there is no material shortfall in cash which may cause interruption to the Group's obligations arising from daily business needs; (ii) maintain sufficient level of funds to settle the Group's commitment as and when they fall due; (iii) maintain adequate liquidity to cover the Group's operation cash flow, project expenditures and administrative expenses; and (iv) maintain the relevant financing costs at a reasonable level.

Currency risk

The group entities collect most of the revenue and incur most of the expenditures in their respective functional currencies. The Group is exposed to currency risk primarily through sales proceeds received from customers that are denominated in a currency other than the group entities' functional currency. The currencies giving rise to this risk are primarily HK$.

The Group currently does not have a foreign currency hedging policy. However, the management of the Group monitors foreign exchange exposure and will consider hedging significant foreign currency exposure should the need arise.

Capital structure

The Shares were listed on the Main Board of the Stock Exchange on 23 April 2019. There has been no change in the capital structure of the Company since that date. The capital of the Company comprises ordinary shares and other reserves.

Capital commitments

As at 30 June 2020, the Group had no capital commitments (31 December 2019: MOP1.2 million).

10	Wai Hung Group Holdings Limited | Interim Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS

Contingent liabilities

As at 30 June 2020, the Group had no significant contingent liabilities or outstanding litigation.

Material acquisitions and disposals of subsidiaries and associated companies

During the six months ended 30 June 2020, the Group did not have any material acquisition and disposals of subsidiaries and affiliated companies.

Significant investments held

As at 30 June 2020, the Group had no significant investments.

Future plans for material investments

Save as disclosed above, the Group did not have any future plan for material investments as at 30 June 2020.

EMPLOYEES AND REMUNERATION POLICIES

As at 30 June 2020, the Group had 108 employees (30 June 2019: 92). Total staff costs (including Directors' emoluments) were approximately MOP21.7 million for the six months ended 30 June 2020, as compared to approximately MOP18.2 million for the six months ended 30 June 2019. Such increase was mainly attributable to the increase in average number of working days for day-work workers.

The remuneration packages the Group offer to employees include salary and discretionary bonuses. In general, the Group determine employees' salaries based on each employee's qualifications, position and seniority. The Group has designed an annual review system to assess the performance of its employees, which forms the basis of determining salary raises, bonuses and promotions. The Group also operates the Share Option Scheme (as defined hereafter), pursuant to which options to subscribe for Shares may be granted to the Directors and employees of the Group. The Group will also various training to its employees and sponsor its employees to attend various training courses, such as those on occupational health and safety in relation to its work. Such training courses include its internal training as well as courses by external parties.

Wai Hung Group Holdings Limited | Interim Report 2020

11

MANAGEMENT DISCUSSION AND ANALYSIS

USE OF PROCEEDS FROM SHARE OFFER

The Shares of the Company were listed on the Main Board of the Stock Exchange on 23 April 2019 (the "Listing Date") with net proceeds received by the Company from the Share Offer in the amount of approximately HK$141.2 million after deducting underwriting commissions and all related expenses. From the Listing Date to 30 June 2020, the net proceeds had been utilised as follows:

				Expected timeline
		Utilised		of full utilisation
		during the		of the remaining
	Net proceeds	period from		net proceeds
	from the	the Listing	Unutilised	from the Share
	Share Offer	Date to	up to	Offer as at
	(Note 1)	30 June 2020	30 June 2020	30 June 2020
	HK$ million	HK$ million	HK$ million
Upfront costs	82.2	82.2	-	N/A
Acquiring	31.1	9.7	21.4	By the end of 2020
performance				(Note 2)
bonds
Strengthening	13.8	13.8	-	N/A
manpower
General working	14.1	14.1	-	N/A
capital
Total	141.2	119.8	21.4

Notes:

1. The Shares were listed on the Main Board of the Stock Exchange on 23 April 2019 with net proceeds received by the Company from the Share Offer (after deducting underwriting commissions and all related expenses) in the amount of approximately HK$141.2 million (equivalent to approximately MOP145.4 million). Save for the timing of the expected utilisation of the net proceeds in full, the net proceeds received from the Share Offer are intended to be used in the manner consistent with that mentioned in the section headed "Future Plans and Use of Proceeds" of the prospectus of the Company dated 29 March 2019.
2. Original timeline of expected full utilisation of net proceeds was on or before 31 December 2019.

12	Wai Hung Group Holdings Limited | Interim Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS

As at 30 June 2020, approximately HK$119.8 million (equivalent to approximately MOP123.4 million) of the net proceeds received from the Share Offer had been utilised and the remaining net proceeds of approximately HK$21.4 million was deposited in the bank accounts of the Group with licensed banks in Hong Kong and Macau.

EVENTS AFTER THE REPORTING DATE

Save as disclosed above, no significant event took place subsequent to 30 June 2020.

INTERIM DIVIDEND

The Board takes into account the Group's overall results of operation, financial position and capital requirements, among other factors, in considering the declaration of dividends. The Board does not recommend payment of any interim dividend in respect of the six months ended 30 June 2020.

Wai Hung Group Holdings Limited | Interim Report 2020

13

OTHER INFORMATION

DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES

As at 30 June 2020, the interests and short positions of each Director and chief executive of the Company in the Shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register required to be kept under Section 352 of the SFO or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code were as follows:

The Company

			Approximate
		Number of	percentage
		Shares held/	of the total
Name of Director	Capacity	interested(1)	issued Shares
Li Kam Hung ("Mr. Li")	Interest in a controlled	337,500,000	67.5%
	corporation(2)	Shares (L)

Notes:

1. The letter "L" denotes the Director's long position in the Shares.
2. The Company was held as to approximately 67.5% by Copious Astute Limited ("Copious Astute"). Copious Astute is held as to 100% by Mr. Li.

14	Wai Hung Group Holdings Limited | Interim Report 2020

OTHER INFORMATION

Associated corporation

				Approximate
	Name of		Number of	percentage
	associated		Shares held/	of the total
Name of Director	corporation	Capacity	interested(1)	issued Shares
Mr. Li	Copious Astute	Beneficial owner	1 share (L)	100%

Note:

1. The letter "L" denotes the Director's long position in the Shares.

Save as disclosed above, as at 30 June 2020, none of the Directors and chief executive of the Company had any interest or short position in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which are recorded in the register required to be kept under Section 352 of the SFO or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code.

SHARE OPTION SCHEME

On 18 March 2019, a share option scheme (the "Share Option Scheme") was approved and adopted by the Shareholders, under which, options may be granted to any eligible persons (as defined in the Share Option Scheme) to subscribe for Shares subject to the terms and conditions stipulated in the Share Option Scheme. The Company has adopted the Share Option Scheme as an incentive to Directors and eligible employees.

Subject to the terms of the Share Option Scheme, the Board may, at its discretion, invite any "Eligible Persons" to take up option(s) ("Option(s)") to subscribe for Shares granted pursuant to the Share Option Scheme at a price calculated as discussed below. Upon acceptance of the Option, the Eligible Person shall pay HK$1.00 to the Company by way of consideration for the grant. The Option will be offered for acceptance for a period of 28 days from the date on which the Option is granted. "Eligible Persons" means any full-time or part-time employee of the Company or any member of the Group, including any executive Directors, non-executive Directors and independent non-executive Directors, suppliers, customers, agents, advisors and consultants of the Group who, in the sole opinion of the Board, will contribute or have contributed to the Group.

Wai Hung Group Holdings Limited | Interim Report 2020

15

OTHER INFORMATION

Any grant of Options must not be made after inside information has come to our knowledge until such inside information has been announced in accordance with the requirements of the Listing Rules. In particular, during the period commencing one month immediately preceding the earlier of (i) the date of the Board meeting (as such date is first notified to the Stock Exchange in accordance with the Listing Rules) for the approval of the Company's results for any year, half-year,quarter-year period or any other interim period (whether or not required under the Listing Rules), and (ii) the deadline for the Company to publish an announcement of its results for any year, half-year,quarter-year period or any interim period (whether or not required under the Listing Rules), and ending on the date of the results announcement, no Option may be granted. The period during which no Option may be granted will cover any period of delay in the publication of results announcement. Our Directors may not grant any Option to an Eligible Person who is our Director during the periods or times in which directors of the listed issuer are prohibited from dealing in shares pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers contained in the Listing Rules or any corresponding code or securities dealing restrictions adopted by the Company.

The total number of Shares issued and to be issued upon exercise of the Options granted to a Participant under the Share Option Scheme and any other share option schemes of the Company (including both exercised and outstanding Options) in any 12-month period must not exceed 1% of the Shares in issue from time to time. Any further grant of options in excess of this 1% limit shall be subject to issuance of a circular by the Company and approved by the Shareholders in accordance with the Listing Rules.

The subscription price for the Shares subject to Options will be a price determined by the Board and notified to each Participant and shall be the highest of (i) the closing price of the Shares as stated in the Stock Exchange's daily quotations sheet on the date of grant of the Options, which must be a trading day; (ii) the average closing price of the Shares as stated in the Stock Exchange's daily quotations sheets for the five trading days immediately preceding the date of grant of the Options; and (iii) the nominal value of a Share.

The total number of Shares which may be issued upon the exercise of all Options to be granted under the Share Option Scheme and any other share option schemes of the Company must not, in aggregate, exceed 50,000,000 Shares, which represents 10% of the Shares in issue as at the date of this report (the "Scheme Mandate Limit") provided that the Options lapsed in accordance with the terms of the Share Option Scheme or any other share option schemes of the Company will not be counted for the purpose of calculating the Scheme Mandate Limit.

16	Wai Hung Group Holdings Limited | Interim Report 2020

OTHER INFORMATION

Subject to the approval of Shareholders in general meeting, the Company may refresh the Scheme Mandate Limit to the extent that the total number of Shares which may be issued upon exercise of all Options to be granted under the Share Option Scheme and any other share option schemes of the Company under the Scheme Mandate Limit as refreshed must not exceed 10% of the Shares in issue as at the date of such Shareholders' approval provided that Options previously granted under the Share Option Scheme and any other share option schemes of the Company (including those outstanding, cancelled, exercised or lapsed in accordance with the terms thereof) will not be counted for the purpose of calculating the Scheme Mandate Limit as refreshed. In relation to the Shareholders' approval referred to in this paragraph, the Company shall send a circular to our Shareholders containing our information required by the Listing Rules.

Subject to the approval of Shareholders in general meeting, the Company may also grant Options beyond the Scheme Mandate Limit provided that Options in excess of the Scheme Mandate Limit are granted only to the Eligible Persons specifically identified by the Company before such Shareholders' approval is sought. In relation to the Shareholders' approval referred to in this paragraph, the Company shall send a circular to its Shareholders containing a generic description of the identified Eligible Persons, the number and terms of the Options to be granted, the purpose of granting Options to the identified Eligible Persons, an explanation as to how the terms of such Options serve the intended purpose and such other information required by the Listing Rules.

Notwithstanding the foregoing, the Company may not grant any Options if the number of Shares which may be issued upon exercise of all outstanding Options granted and yet to be exercised under the Share Option Scheme and any other share option schemes of the Company exceeds 30% of the Shares in issue from time to time.

The Share Option Scheme will be valid and effective for a period of 10 years commencing on 23 April 2019 and remains in force until 22 April 2029, after which period no further Options may be granted but the provisions of the Share Option Scheme shall remain in full force and effect in all other respects and Options granted during the life of the Share Option Scheme may continue to be exercisable in accordance with their terms of issue.

Wai Hung Group Holdings Limited | Interim Report 2020

17

OTHER INFORMATION

An Option may be exercised in accordance with the terms of the Share Option Scheme at any time during a period to be determined and notified by the Board to each Participant provided that the period within which the Option must be exercised shall not be more than 10 years from the date of the grant of Option. The exercise of an Option may be subject to the administration of the Board whose decision as to all matters arising from or in relation to the Share Option Scheme as its interpretation or effect shall be final and binding on all parties to the Share Option Scheme.

No share option has been granted by the Company under the Share Option Scheme since its adoption up to 30 June 2020. As at 31 December 2019 and 30 June 2020, there were no outstanding Options under the Share Option Scheme.

SUBSTANTIAL SHAREHOLDERS' INTERESTS

According to the register kept by the Company under Section 336 of the SFO and information available to the Directors, the corporations or persons (other than a Director or chief executive of the Company) had interests of 5% or more in the Shares or underlying Shares as at 30 June 2020 which fell to be disclosed to the Company under Divisions 2 and 3 of Part XV of the SFO were as follows:

				Approximate
		Number of		percentage
		Shares held/	Total	of the total
Name of Shareholder	Capacity	interested(1)	interests(1)	issued Shares
Copious Astute Limited	Beneficial owner(2)	337,500,000	337,500,000	67.5%
		Shares (L)	Shares (L)
Ms. Ng Suk Fun	Interest of spouse(3)	337,500,000	337,500,000	67.5%
		Shares (L)	Shares (L)
Fresh Phoenix Limited	Beneficial owner(4)	40,010,000	40,010,000	8.0%
		Shares (L)	Shares (L)
Mr. Leong Lap Kun	Interest of controlled	40,062,500	40,062,500	8.0%
("Mr. Leong")	corporation(4)(5)	Shares (L)	Shares (L)
Mr. Hung Sai Yeung	Beneficial owner(6)	30,000	25,715,000	5.1%
		Shares (L)	Shares (L)
	Interest of controlled	22,512,500
	corporation(6)	Shares (L)
	Interest of spouse(6)	3,172,500
		Shares (L)
Ms. Yiu Li Ngor	Beneficial owner(7)	3,172,500	25,715,000	5.1%
		Shares (L)	Shares (L)
	Interest of spouse(7)	22,542,500
		Shares (L)

18	Wai Hung Group Holdings Limited | Interim Report 2020

OTHER INFORMATION

Notes:

1. The letter "L" denotes the entity/person's long position in the Shares.
2. Our Company is owned as to 67.5% by Copious Astute Limited, which is in turn wholly owned by Mr. Li. Under the SFO, Mr. Li is deemed to be interested in all the Shares which are registered in the name of Copious Astute Limited;
3. Ms. Ng Suk Fun is the spouse of Mr. Li. Under the SFO, Ms. Ng Suk Fun is deemed to be interested in the same number of Shares in which Mr. Li is interested;
4. Our Company is owned as to approximately 8.0% by Fresh Phoenix Limited, which is in turn wholly owned by Mr. Leong. Under the SFO, Mr. Leong is deemed to be interested in all the Shares which are registered in the name of Fresh Phoenix Limited.
5. Our Company is owned as to approximately 0.01% by Shining Holding Limited, which is in turn wholly owned by Mr. Leong. Under the SFO, Mr. Leong is deemed to be interested in all the Shares which are registered in the name of Shining Holding Limited.
6. Based on the information as set out in the disclosure of interest filed by the subject Shareholder dated 3 September 2020, Mr. Hung Sai Yeung ("Mr. Hung") was deemed to be interested in 25,715,000 Shares, of which (i) 30,000 Shares were held by himself; (ii) 22,512,000 Shares were registered in the name of Greenfield Resources Group Limited ("Greenfield Resources"), a corporation controlled as to 50% by Mr. Hung; and (iii) 3,172,500 Shares were held by his spouse, Ms. Yiu Li Ngor, as at 26 June 2020.
7. Based on the information as set out in the disclosure of interest filed by the subject Shareholder dated 3 September 2020, Ms. Yiu Li Ngor ("Ms. Yiu") was deemed to be interested in 25,715,000 Shares, of which (i) 3,172,500 Shares were held by herself; (ii) 22,512,000 Shares were held by Greenfield Resources (a corporation controlled as to 50% by her spouse, Mr. Hung); and (iii) 30,000 Shares were held by Mr. Hung, as at 26 June 2020.

Save as disclosed above, as at 30 June 2020, no other person (other than a Director or chief executive of the Company) had registered an interest or short position in the Shares, underlying Shares and debentures of the Company which fell to be disclosed to the Company under Divisions 2 and 3 of Part XV of the SFO.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S SECURITIES

Since the Listing Date and up to 30 June 2020, none of the Company or any of its subsidiaries had purchased, sold or redeemed any of its listed securities.

Wai Hung Group Holdings Limited | Interim Report 2020

19

OTHER INFORMATION

CORPORATE GOVERNANCE

The Company is committed to maintain high standards of corporate governance to protect the interests of its Shareholders and to enhance corporate value and accountability. The Company has adopted the code provisions and, where applicable, the recommended best practices set out in the Corporate Governance Code ("CG Code") set out in Appendix 14 to the Rules Governing the Listing of securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The Company complies with the CG Code set out in Appendix 14 to the Listing Rules with the exception for Code Provision A.2.1, which requires the roles of chairman and chief executive be different individuals. Pursuant to code provision A.2.1 of the CG Code, the roles of chairman and chief executive officer should be separate and should not be performed by the same individual. However, the Company does not have a separate chairman and chief executive officer and Mr. Li Kam Hung currently performs these two roles. The Board believes that vesting the roles of both chairman and chief executive officer in the same person has the benefit of ensuring the consistent leadership within the Group and enables more effective and efficient overall strategic planning of the Group. Besides, with three independent non-executive Directors out of a total of nine Directors in the Board, there will be sufficient independent voice within the Board to protect the interests of the Company and the Shareholders as a whole. Therefore, the Board considers that the balance of power and authority for the present arrangement will not be impaired and this structure will enable the Company to make and implement decisions promptly and effectively. Our Board will continue to review and consider splitting the roles of chairman of the Board and chief executive officer of the Company at a time when it is appropriate and suitable by taking into account the circumstances of the Group as a whole.

DIRECTORS' SECURITIES TRANSACTIONS

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix 10 to the Listing Rules as its own code of conduct regarding Directors' securities transactions. Having made specific enquiries with all the Directors, each of the Directors has confirmed that he/she has complied with the Model Code since the Listing Date up to 30 June 2020.

20	Wai Hung Group Holdings Limited | Interim Report 2020

OTHER INFORMATION

DIVIDEND

The Board takes into account the Group's overall results of operation, financial position and capital requirements, among other factors, in considering the declaration of dividends. The Board does not recommend payment of any dividend in respect of the six months ended 30 June 2020.

AUDIT COMMITTEE

The audit committee of the Company, comprising three independent non-executive Directors, namely Ms. Rita Botelho dos Santos, Mr. Lam Chi Wing and Mr. Wu Chou Kit, has reviewed with the management the unaudited interim results for the six months ended 30 June 2020, accounting principles and practices adopted by the Group and discussed internal controls, risk management and financial reporting matters including a review of the unaudited interim financial information.

On behalf of the Board

Li Kam Hung

Chairman

Hong Kong, 21 August 2020

Wai Hung Group Holdings Limited | Interim Report 2020

21

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2020

			Six months ended 30 June
			2020	2019
		Notes	MOP'000	MOP'000
			(Unaudited)	(Unaudited)
	Revenue	2	136,972	238,525
	Direct costs		(105,748)	(195,147)
	Gross profit		31,224	43,378
Other income		1,264	1,035
Other losses		(61)	(111)
Administrative expenses		(14,383)	(14,255)
Finance costs		(717)	(217)
Listing expenses		-	(7,267)
	Profit before taxation	3	17,327	22,563
	Income tax expense	4	(2,825)	(4,367)
	Profit for the period attributable to owners of
	the Company		14,502	18,196
Other comprehensive (expense) income
	Item that may be subsequently reclassified
	to profit and loss:
	Exchange differences arising on
	translation of foreign operation		(172)	51
	Profit and total comprehensive income for
	the period attributable to owners of the
	Company		14,330	18,247
	Earnings per share
	Basic (MOP)	5	0.03	0.10

22	Wai Hung Group Holdings Limited | Interim Report 2020

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

				As at 30 June 2020
			30 June	31 December
			2020	2019
		Notes	MOP'000	MOP'000
			(Unaudited)	(Audited)
	Non-current assets		3,150
	Property and equipment		1,921
	Right-of-use assets		630	448
	Deposits		240	351
			4,020	2,720
	Current assets		117,717
	Trade receivables	6	95,543
	Other receivables, deposits and		87,872
	prepayments	7	84,579
	Contract assets		121,738	103,089
	Amounts due from related parties		23	23
	Pledged bank deposits	8	12,394	12,370
	Bank balances and cash	8	26,944	29,314
			366,688	324,918
	Current liabilities		48,375
	Trade and other payables and accruals	9	39,377
	Contract liabilities		1,580	1,109
	Tax payable		18,598	15,780
	Bank borrowings		19,457	8,017
	Bank overdrafts		7,262	2,440
	Lease liabilities		461	365
			95,733	67,088
	Net current assets		270,955	257,830
	Total assets less current liabilities		274,975	260,550
	Non-current liabilities		194
	Lease liabilities		99
	Net assets		274,781	260,451
	Capital and reserves		5,150
	Share capital		5,150
	Reserves		269,631	255,301
	Total equity		274,781	260,451

Wai Hung Group Holdings Limited | Interim Report 2020

23

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2020

				Attributable to owners of the Company
						Statutory
		Share	Share	Legal	Other	surplus	Translation	Accumulated
		capital	premium	reserve	reserve	reserve	reserve	profits	Total
		MOP'000	MOP'000	MOP'000	MOP'000	MOP'000	MOP'000	MOP'000	MOP'000
	Changes in equity for the six months ended
	30 June 2019
	At 1 January 2019	-	95,685	500	(75,121)	120	(284)	35,652	56,552
	Profit for the period	-	-	-	-	-	-	18,196	18,196
	Other comprehensive income for the period	-	-	-	-	-	51	-	51
	Total profit and other comprehensive income
	for the period	-	-	-	-	-	51	18,196	18,247
	Issue of shares upon share offer	1,288	178,963	-	-	-	-	-	180,251
	Transaction costs incurred in connection with
	issue of shares	-	(14,259)	-	-	-	-	-	(14,259)
	Issue of shares upon capitalisation issue	3,862	(3,862)	-	-	-	-	-	-
	At 30 June 2019 and 1 July 2019	5,150	256,527	500	(75,121)	120	(233)	53,848	240,791

24	Wai Hung Group Holdings Limited | Interim Report 2020

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2020

					Attributable to owners of the Company
							Statutory
			Share	Share	Legal	Other	surplus	Translation	Accumulated
			capital	premium	reserve	reserve	reserve	reserve	profits	Total
			MOP'000	MOP'000	MOP'000	MOP'000	MOP'000	MOP'000	MOP'000	MOP'000
	Changes in equity for the six months ended
	31 December 2019
	Profit for the period	-	-	-	-	-	-	19,729	19,729
	Other comprehensive expense for the period	-	-	-	-	-	(69)	-	(69)
	Total profit and other comprehensive (expense)
	income for the period	-	-	-	-	-	(69)	19,729	19,660
	Transfer	-	-	-	-	23	-	(23)	-
	At 31 December 2019 and 1 January 2020	5,150	256,527	500	(75,121)	143	(302)	73,554	260,451
	Changes in equity for the six months ended
	30 June 2020
	Profit for the period	-	-	-	-	-	-	14,502	14,502
	Other comprehensive expense for the period	-	-	-	-	-	(172)	-	(172)
	Total profit and other comprehensive
	(expense) income for the period	-	-	-	-	-	(172)	14,502	14,330
	At 30 June 2020	5,150	256,527	500	(75,121)	143	(474)	88,056	274,781

Wai Hung Group Holdings Limited | Interim Report 2020

25

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2020

		Six months ended 30 June
		2020	2019
		MOP'000	MOP'000
		(Unaudited)	(Unaudited)
	OPERATING ACTIVITIES
	NET CASH USED IN OPERATING ACTIVITIES	(16,021)	(28,081)
	INVESTING ACTIVITIES
	Other cash flow used in investing activities	(1,913)	(91)
	NET CASH USED IN INVESTING ACTIVITIES	(1,913)	(91)
	FINANCING ACTIVITIES
	Payment of listing expenses	-	(10,708)
Proceeds from issuance of shares	-	180,250
New bank borrowings raised	16,262	2,567
Dividends paid	-	(6,342)
Other cash flow arising from financing activities	(526)	(217)
	NET CASH FROM FINANCING ACTIVITIES	15,736	165,550
	NET (DECREASE) INCREASE IN CASH AND
	CASH EQUIVALENTS	(2,198)	137,378
CASH AND CASH EQUIVALENTS AT BEGINNING
	OF THE PERIOD	29,314	11,211
EFFECT OF FOREIGN EXCHANGE RATE CHANGE	(172)	51
	CASH AND CASH EQUIVALENTS AT END
	OF THE PERIOD represented by bank balances
	and cash	26,944	148,640

26	Wai Hung Group Holdings Limited | Interim Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

1. BASIS OF PREPARATION

The Company was incorporated as an exempted company in the Cayman Islands on 9 April 2018. The address is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands and the principal place of business in Hong Kong is Unit 13, 24th Floor, Honour Industrial Centre, 6 Sun Yip Street, Chai Wan, Hong Kong.

The principal activity of the Company is investment holding. The Group's principal activities are providing fitting-out services and repair and maintenance services in Macau.

The interim financial information has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard (HKAS) 34, Interim financial reporting, issued by the Hong Kong Institute of Certified Public Accountants (HKICPA). It was authorised for issue on 21 August 2020.

The interim financial information has been prepared in accordance with the same accounting policies adopted in the 2019 annual financial statements, except for the accounting policy changes that are expected to be reflected in the 2020 annual financial statements. Details of any changes in accounting policies are set out in note 1 (later part of this note).

The preparation of interim financial information in conformity with HKAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year to date basis. Actual results may differ from these estimates.

The interim financial information contains condensed consolidated financial statements and selected explanatory notes. The notes include an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the 2019 annual financial statements. The condensed consolidated interim financial statements and notes thereon do not include all of the information required for a full set of financial statements prepared in accordance with HKFRSs.

The financial information relating to the financial year ended 31 December 2019 that is included in the interim financial report as comparative information does not constitute the Company's statutory annual consolidated financial statements for that financial year but is derived from those financial statements.

Wai Hung Group Holdings Limited | Interim Report 2020

27

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

1. BASIS OF PREPARATION (CONTINUED)

The accounting policies, basis of presentation and methods of computation used in preparing the interim financial report are consistent with those followed in preparing the Groups' annual consolidated financial statements for the year ended 31 December 2019, except for the adoption of the new or amended HKFRSs and HKASs which are first effective or available for early adoption for accounting periods beginning on or after 1 January 2020 as set out below.

The following new or amended HKFRSs and HKASs are adopted for the financial year beginning 1 January 2020, but have no material effect on the Group's reported results and financial position for the current and prior accounting periods.

• HKAS 1 (Revised) (Amendments), Presentation of Financial Statements
• HKAS 8 (Amendments), Accounting Policies, Changes in Accounting Estimates and Errors
• HKAS 39 (Amendments), Financial Instruments: Recognition and Measurement
• HKFRS 3 (Revised) (Amendments), Business Combinations
• HKFRS 7 (Amendments), Financial Instruments: Disclosures
• HKFRS 9 (2014) (Amendments), Financial Instruments
• HKFRS 16 (Amendments), Leases
• Conceptual Framework for Financial Reporting 2018

The Group has not early adopted any other new or amended HKFRSs and HKASs that are not yet effective for the current accounting period.

28	Wai Hung Group Holdings Limited | Interim Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

2. REVENUE AND SEGMENT INFORMATION

Revenue represents the fair value of amounts received and receivable from the provision of fitting-out and repair and maintenance service by the Group to external customers. The Group's revenue is mainly derived from provision of fitting-out services and repair and maintenance services in Macau.

Revenue

Timing of revenue recognition and category of revenue

	Six months ended 30 June
	2020	2019
	MOP'000	MOP'000
	(Unaudited)	(Unaudited)
Recognised over time and
short-term contracts:
- provision of fitting-out services	136,511	237,968
Recognised over time and long-term contracts:
- provision of repair and maintenance services	461	557
	136,972	238,525

The customers of the Group are mainly hotel and casino operators in Macau. All of the Group's provision of fitting-out services and repair and maintenance services are made directly with the customers. Contracts with the Group's customers are mainly fixed- price contracts.

Segment information

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker (the "CODM"), being the executive directors of the Company, in order for the CODM to allocate resources and to assess performance. No operating segments identified by the CODM have been aggregated in arriving at the reportable segments of the Group.

Wai Hung Group Holdings Limited | Interim Report 2020

29

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

2. REVENUE AND SEGMENT INFORMATION (CONTINUED) Segment information (continued)

Specifically, the Group's reportable and operating segments under HKFRS 8 "Operating Segments" are as follows:

1. fitting-outservices; and
2. repair and maintenance services.

The CODM makes decisions according to the operating results of each segment. No analysis of segment asset and segment liability is presented as the CODM does not regularly review such information for the purposes of resources allocation and performance assessment. Therefore, only segment revenue and segment results are presented.

Segment revenue and results

Six months ended 30 June 2020 (Unaudited)

		Repair and
	Fitting-out	maintenance
	services	services	Total
	MOP'000	MOP'000	MOP'000
Segment revenue	136,511	461	136,972
Segment results	31,085	139	31,224
Other income			1,264
Other losses			(61)
Administrative expenses			(14,383)
Finance costs			(717)
Profit before taxation			17,327

30	Wai Hung Group Holdings Limited | Interim Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

2. REVENUE AND SEGMENT INFORMATION (CONTINUED) Segment information (continued)

Segment revenue and results (continued)

Six months ended 30 June 2019 (Unaudited)

		Repair and
	Fitting-out	maintenance
	services	services	Total
	MOP'000	MOP'000	MOP'000
Segment revenue	237,968	557	238,525
Segment results	43,230	148	43,378
Other income			1,035
Other losses			(111)
Administrative expenses			(14,255)
Finance costs			(217)
Listing expenses			(7,267)
Profit before taxation			22,563

The accounting policies of the operating and reportable segments are the same as the Group's accounting policies. Segment results mainly represented profit earned by each segment, excluding other income, other losses, administrative expenses, finance costs, listing expenses and income tax expense.

Wai Hung Group Holdings Limited | Interim Report 2020

31

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

3.		PROFIT BEFORE TAXATION
			Six months ended 30 June
			2020	2019
			MOP'000	MOP'000
			(Unaudited)	(Unaudited)
	Profit before taxation has been arrived at after
		charging:
	Auditor's remuneration	550	500
	Depreciation on right-of-use assets and
		depreciation on property and equipment	646	912
4.		INCOME TAX EXPENSE
			Six months ended 30 June
			2020	2019
			MOP'000	MOP'000
			(Unaudited)	(Unaudited)
	Current Tax:
	Macau Complementary Income Tax	2,772	4,316
	PRC Enterprise Income Tax	53	51
			2,825	4,367

Macau Complementary Tax is calculated at 12% of the estimated assessable profits exceeding MOP600,000 for both periods.

Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and Implementation Regulation of the EIT Law, the tax rate of the PRC group entity is 25% for both periods.

Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profits for both periods. No provision of Hong Kong Profits Tax was made as the subsidiaries in Hong Kong incurred tax losses during both periods.

32	Wai Hung Group Holdings Limited | Interim Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

5. EARNINGS PER SHARE

The calculation of basic earnings per share is based on the following data:

	Six months ended 30 June
	2020	2019
	MOP'000	MOP'000
	(Unaudited)	(Unaudited)
Earnings:
Earnings for the purpose of calculating basic
earnings per share (profit for the period
attributable to owners of the Company)	14,502	18,196
Number of shares:
Weighted average number of ordinary
shares for the purpose of calculating basic
earnings per share	500,000,000	190,608,354

No diluted earnings per share for both periods was presented as there were no potential ordinary shares in issue during both periods.

Wai Hung Group Holdings Limited | Interim Report 2020

33

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

6. TRADE RECEIVABLES

The Group grants credit terms of 30-90 days to its customers from the date of invoices on progress payments of contract works. An ageing analysis of the trade receivables presented based on the invoice date which is approximately one month after the related revenue being recognised, at the end of each reporting period is as follows:

		30 June	31 December
		2020	2019
		MOP'000	MOP'000
		(Unaudited)	(Audited)
0-30 days	34,669	53,838
31-60 days	20,042	32,843
61-90 days	24,390	4,087
Over 90 days	38,720	4,846
		117,821	95,614
Less: Impairment loss allowance	(104)	(71)
		117,717	95,543
7. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS
		30 June	31 December
		2020	2019
		MOP'000	MOP'000
		(Unaudited)	(Audited)
Rental deposits	379	342
Deposit paid for acquisition of property and	-
	equipment	134
Deposits paid for tenders	32,261	38,894
Prepayments to subcontractors	52,946	45,385
Other receivables	2,526	175
	Total	88,112	84,930
	Presented as non-current assets	240	351
Presented as current assets	87,872	84,579
	Total	88,112	84,930

34	Wai Hung Group Holdings Limited | Interim Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

8. PLEDGED BANK DEPOSITS/BANK BALANCES AND CASH

Pledged bank deposits as at 30 June 2020 are pledged to secure the bank borrowings of the Group which carry interest at prevailing market rate of 0.01% (31 December 2019: 0.01%) per annum.

As at 30 June 2020, bank balances and cash comprise of cash held and short term bank deposits with an original maturity of three months or less which carry interest at prevailing market rate of 0.01% (31 December 2019: 0.01%) per annum.

9. TRADE AND OTHER PAYABLES AND ACCRUALS

	30 June	31 December
	2020	2019
	MOP'000	MOP'000
	(Unaudited)	(Audited)
Trade payables	19,666	14,003
Retention payables	10,839	10,516
Accruals for subcontracting costs (Note)	11,532	9,631
Accrued listing expenses and issue costs	2,019	2,019
Accruals and other payables	4,319	3,208
	48,375	39,377

Note: Amounts represented subcontracting costs being incurred which are yet billed by the subcontractors.

Wai Hung Group Holdings Limited | Interim Report 2020

35

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

9. TRADE AND OTHER PAYABLES AND ACCRUALS (CONTINUED)

The credit period granted to the Group by subcontractors/suppliers normally being 0-30 days. The following is an ageing analysis of trade payables based on the invoice date at the end of each reporting period:

	30 June	31 December
	2020	2019
	MOP'000	MOP'000
	(Unaudited)	(Audited)
0-30 days	11,630	5,988
Over 90 days	8,036	8,015
	19,666	14,003

Retention payables to subcontractors are interest-free and payable at the end of the defects liability period of individual contracts (i.e. one year after completion of respective prospect). All retention payables are expected to be settled within one year based on the expiry date of the defects liability period.

10. DIVIDENDS

The Directors did not recommend the payment of a dividend by the Company for the six months ended 30 June 2020. No dividend was declared or paid by the Company during the six months ended 30 June 2019 to its equity shareholders.

11. REVIEW OF INTERIM FINANCIAL REPORT

The unaudited interim financial report for the six months ended 30 June 2020 has been reviewed by the Audit Committee with no disagreement.

36	Wai Hung Group Holdings Limited | Interim Report 2020