Overview Key strengths Key risks Strong position in the engineering and construction (E&C) markets in Hong Kong and Macao, with solid order backlog. Smaller than other state-owned enterprise (SOE) peers in mainland China. Ongoing business transformation to support gradual deleveraging. Business transformation in mainland China may constrain margin improvements. Sufficient and timely parent support, given status as a strategically important subsidiary of the ultimate parent. We expect the company?s ongoing business transformation and expanding profits to help it lower its leverage in 2023-2024. A continued shift to government targeted repurchase (GTR) projects with much shorter receivable cycles in mainland China could turn the company's adjusted operating cash flow (OCF) positive in 2023-2024, from negative adjusted OCF in 2022. This, together
