HK Bourse: Announcement From Golik Holdings Ltd. -5-

 
 
 
Despite the above challenges faced by the Group's metal products business during the period, with the 
endeavor of the team especially the advances towards high-end elevator wire ropes in replacing the 
development of import products, the results of metal products business remained stable overall. 
 
The high-end lifting wire rope products are still in the development stage, relevant preliminary 
expenses have brought pressure and dragged down profit performance. Adverse pressure imposed on 
results over a period of time by new product development, particularly high-end product development, 
is expected, the management will be determined and optimistic in developing high-end wire rope 
products. 
 
Building Construction Materials 
Building construction materials line of business comprises mainly of ready mixed concrete, processing 
and distribution of construction steel products and other building construction materials. During the 
period, revenue was HK$741,507,000, representing an increase of 43% over the same period last year. 
The increase was mainly attributable to the rise in prices and quantity of building construction material 
products during the period. Profit before interest and taxation was HK$10,010,000, representing a 
substantial decrease of 72% over the same period last year. The decrease was mainly attributable to the 
loss recorded in steel distribution business during the period. 
 
During the period, the Chinese government has shut down and suspended a noticeable number of small 
and medium steel mills by environmental means to cut back the steel capacity in a large extent. It has 
caused a considerable change in the Chinese steel market with steel price surge. In recent years, China 
has been a main provider of construction steels to Hong Kong, the fluctuated steel prices and tight 
supply in the Mainland would seriously affect the steel distribution sector of Hong Kong. Distributors 
usually procure steel with a high price to maintain the supply to their contracted customers and 
therefore resulting in loss. 
 
 
 
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Our ready mixed concrete business performed well during the period. Both prices and gross profit 
margin of mixed concrete business dropped this year, the management tried their best to maintain 
stable performance through control on all kinds of costs (including materials costs) while expanding 
business scale. 
 
Construction rebar cut-and-bend service is another development of the Group in recent years. The 
construction and installation of all equipment of the newly invested plant located at Tai Po Industrial 
Estate are expected to be completed by the end of the year and launched formally next year. 
 
PROSPECT 
The year 2017 marked a relatively challenging year for the Group's business. Significantly fluctuated 
steel prices, strict environment regulations for manufacturing sector in the Mainland, as well as 
unrealized efficiency in the two core projects, namely high-end lifting wire rope and construction rebar 
cut-and-bend service, all these unfavourable factors imposed pressure on the Group's short-term 
performance. However, with its solid foundation and correct direction, the Group believes that the 
effort made at this moment will ultimately bear fruit. The Group is confident to overcome the existing 
challenge and establish a solid foundation for long-term sustainable development. Our results is 
expected to resume growth within one to two years via continuing efforts. 
 
LIQUIDITY AND FINANCIAL RESOURCES 
As at 30th June, 2017, the bank balances and cash of the Group amounted to HK$346,465,000 (31st 
December, 2016: HK$574,941,000). As at 30th June, 2017, the current ratio (current assets to current 
liabilities) of the Group was 1.64:1 (31st December, 2016: 1.77:1). 
 
As at 30th June, 2017, the total borrowings of the Group amounted to HK$694,151,000 (31st 
December, 2016: HK$533,062,000). 
 
The Group's monetary assets are principally denominated in Hong Kong dollars, Renminbi and United 
States dollars. As Hong Kong dollars is pegged to United States dollars, the Group believes its 
exposure to exchange risk is limited. For the fluctuation of exchange rate of Renminbi, the 
Management will continue to monitor foreign exchange exposure of Renminbi and will take prudence 
measures to minimize the currency risk. 
 
CAPITAL STRUCTURE 
During the period, there was no material change to the capital structure of the Company. The number 
of the Company's ordinary shares in issue as at 30th June, 2017 was 561,922,500 (31st December, 
2016: 561,922,500). As at 30th June, 2017, the equity attributable to the shareholders of the Company 
amounted to HK$1,029,222,000 (31st December, 2016: HK$1,023,516,000). 
 
As at 30th June, 2017, net gearing ratio (total borrowings minus bank balances and cash to total equity) 
 
was 0.32:1 (31st December, 2016: -0.04:1). 
 
EMPLOYMENT AND REMUNERATION POLICY 
As at 30th June, 2017, the total number of staff of the Group was 1,452. Remuneration is determined 
with reference to the performance, qualifications and experience of the employees concerned and the 
prevailing industry practice. The Group provides Mandatory Provident Fund entitlement to Hong 
Kong's employees. Moreover, share options may be granted as an incentive or reward to eligible 
employees in accordance with the share option scheme adopted on 5th June, 2014. 
 
 
 
 
                                                 - 11 - 
CORPORATE GOVERNANCE 
The Group is committed to the maintenance of good corporate governance practices as set out in the 
Code on Corporate Governance Practices (the "CG Code") in Appendix 14 to the Rules Governing the 
Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). The 
Company has complied with code provisions as set out in the CG Code throughout the six months 
ended 30th June, 2017 except the followings: 
 
Code provision A.2.1, the Company does not separate the roles of Chairman and Chief Executive 
Officer and Mr. Pang Tak Chung currently holds both positions. As the Board believes that vesting the 
roles of both Chairman and Chief Executive Officer in the same person provides the Company with 
strong and consistent leadership, efficient usage of resources and allows for effective planning, 
formulation and implementation of the Company's business strategies which will enable the Company 
to sustain the development of its business efficiently. 
 
Code provision A.5.1, the Company does not propose to establish a nomination committee for the time 
being as the full Board is responsible for reviewing the structure, size and composition of the Board 
and the appointment of new directors from time to time to ensure that it has a balanced composition of 
their skills and experience appropriate for the requirements of the businesses of the Company, and the 
Board as a whole is also responsible for reviewing the succession plan for the directors. 
 
Code provision A.5.6, the Company does not have a policy concerning diversity of board members for 
the time being. In designing the Board's composition, the Company will consider from all aspects, all 
directors' appointment will be based on meritocracy and candidates will be considered against 
objective criteria, having due regard for the benefits of diversity on the Board. 
 
AUDIT COMMITTEE 
The Company established its Audit Committee on 5th January, 1999 with written terms of reference 
which are in line with the CG Code. The Audit Committee comprises three Independent Non-executive 
Directors namely Mr. Yu Kwok Kan, Stephen, Mr. Chan Yat Yan and Mr. Lo Yip Tong. 
 
The Audit Committee has reviewed the unaudited condensed consolidated financial statements of the 
Group for the six months ended 30th June, 2017. The financial information contained in this 
announcement is unaudited, the disclosure of which has complied with Appendix 16 to the Listing 
Rules. 
 
DIRECTORS' SECURITIES TRANSACTIONS 
The Company has adopted a code of conduct regarding securities transactions by directors on terms no 
less exacting than the required standards set out in Appendix 10 to the Listing Rules (the "Model 
Code"). Specific enquiry has been made by the Company to each director of the Company confirming 
that they have complied with the required standards set out in the Model Code and the code of conduct 
regarding securities transactions by directors adopted by the Company during the six months ended 
30th June, 2017. 
 
PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES 
Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's 
listed securities during the six months ended 30th June, 2017. 
 
 
 
 
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INTERIM DIVIDEND 
The Board has declared an interim dividend of HK1.5 cents per share amounting to HK$8,429,000 for 
the six months ended 30th June, 2017 (2016 interim dividend: HK1.5 cents per share amounting to 
HK$8,429,000) which are expected to be payable on 18th October, 2017 to the shareholders of the 
Company whose names appear in the register of members of the Company on 29th September, 2017. 
 
CLOSURE OF REGISTER OF MEMBERS 
The register of members of the Company will be closed from 27th to 29th September, 2017 (both days 
inclusive), during which period no transfer of shares of the Company will be registered. In order to 
qualify for entitlement to the interim dividend for the six months ended 30th June, 2017, all transfer of 
shares of the Company accompanied by the relevant share certificates must be lodged with the 
Company's branch share registrars in Hong Kong, Tricor Secretaries Limited, at Level 22, Hopewell