Financial Performance - The group's revenue for the year was approximately HKD 1,793.1 million, an increase of about 40.8% compared to HKD 1,273.8 million in 2021[2] - Gross profit rose approximately 38.5% to about HKD 151.0 million, with a slight decrease in gross profit margin by 0.2 percentage points to approximately 8.4%[2] - Profit attributable to equity shareholders was approximately HKD 53.7 million, representing a year-on-year increase of about 3.2 times[2] - The gross profit for the year was approximately HKD 151.0 million, an increase of about 38.5% compared to HKD 109.0 million in the previous year[83] - The group's net cash flow from operating activities for the year was approximately HKD 90.4 million, slightly up from HKD 88.0 million in 2021[96] - The group's capital expenditure for the year was approximately HKD 138.7 million, up from HKD 73.4 million in 2021[106] - The group's bank borrowings as of December 31, 2022, were approximately HKD 176.4 million, an increase of about 42.7% from HKD 123.6 million in 2021[105] Revenue Segmentation - The cleaning segment's revenue increased by approximately 61.2% to HKD 1,330.7 million, accounting for 74.2% of total revenue[3] - The waste management and recycling segment's revenue was HKD 243.2 million, a 3.9% increase from the previous year[3] - The gardening segment's revenue was HKD 122.2 million, reflecting an 8.8% increase year-on-year[3] - The pest management segment's revenue decreased by 4.9% to HKD 97.0 million[3] Contracts and Backlog - The total value of uncompleted contracts was HKD 3,589.5 million, with HKD 1,795.1 million expected to be recognized by December 31, 2023[8] - The total amount of outstanding contracts as of December 31, 2022, is approximately HKD 3,589.5 million, with HKD 1,795.1 million expected to be recognized by the end of 2023[17] - The company has secured new contracts worth approximately HKD 3.08 billion, increasing its backlog from about HKD 2.15 billion to approximately HKD 3.59 billion, a growth of about 67.3%[79] - The company expects to recognize about HKD 1.8 billion in revenue from its current contracts in 2023, which exceeds the total revenue for the entire year of 2022 (HKD 1.79 billion)[79] Dividends - The proposed final dividend for the year is HKD 0.038 per share, totaling HKD 15,770,000, compared to HKD 3,735,000 in the previous year[18] - The total proposed final dividend represents a significant increase of over 320% compared to the previous year's dividend[18] Technology and Innovation - The group successfully introduced advanced technologies to enhance pest control efficiency, improving competitive barriers[1] - The company has introduced a new fully automated high-speed plastic sorting equipment that can process over 10,000 tons of plastic annually, equivalent to 400 million plastic bottles, enhancing both quantity and quality of recycling[63] - The company has received its first contract utilizing biotechnology for waste conversion, marking a significant milestone in its green technology business development[74] - The launch of the green technology business in 2022 has successfully secured multiple government contracts, including a project using biotechnology to address chicken manure issues[34] Sustainability and ESG - The company is actively pursuing sustainable development strategies, integrating ESG principles into its core business operations[30] - The company aims to enhance its ESG performance and facilitate green financing through the provision of ESG data to corporate clients[30] - The company aims to achieve "zero waste to landfill" by 2035 and "carbon neutrality" by 2050, aligning with the Hong Kong government's environmental goals[43] - The company is committed to developing green technology and collaborating with academic institutions to address environmental issues[44] - The company has received multiple awards for corporate governance and ESG practices, reflecting its commitment to sustainability[14] Market Opportunities - The anticipated population influx in the Northern Metropolis and the planned New Tin Science City presents significant growth opportunities for the company's services[31] - The introduction of new legislation in Hong Kong is expected to significantly boost recycling rates, benefiting the company's recycling services[43] - Approximately 80% of the company's revenue comes from government and semi-government contracts, indicating substantial growth potential in the non-government client sector[79] - The company is actively exploring opportunities in non-government sectors and enhancing its one-stop service offerings to deepen and broaden its core business[79] Corporate Governance - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[187] - The Audit Committee has reviewed the audited consolidated annual performance of the group for the year and assessed the effectiveness of the company's risk management and internal control systems[189] - The Audit Committee is responsible for recommending the appointment, reappointment, and removal of external auditors, as well as approving their remuneration and service term[190] - The company has established a Sustainability Steering Committee to manage and monitor sustainability matters, aiming to develop and review the company's sustainability direction and strategies[195] Employee and Operational Metrics - The group employed 8,894 employees as of December 31, 2022, compared to 5,621 employees in 2021[117] - Sales to the group's top five customers accounted for 67.7% of total sales for the year, up from 54.3% in 2021, with the largest customer contributing 44.3% of total sales, compared to 26.3% in 2021[126] - Purchases from the group's top five suppliers represented 35.6% of total purchases for the year, an increase from 31.5% in 2021, with the largest supplier accounting for 10.6% of total purchases, slightly down from 10.8% in 2021[126]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失承擔任何責任。 BAGUIO GREEN GROUP LIMITED 碧 瑤 綠 色 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1397） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 末 期 業 績 公 告 財務摘要 • 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 收 益 約 為1,793.1百 萬 港 元（二零二一年：1,273.8百萬港元），較去年增加約40.8%。 • 截至二零二二年十二月三十一日止年度的毛利約為151.0百萬港元（二 零二一年：109.0百萬港元），較去年增加約38.5%。 • 截至二零二二年十二月三十一日止年度的本公司權益股東應佔本 集團溢利約為53.7百萬港元（二零二一年：12.8百萬港元），較去年增 加約3.2倍。 ...

Revenue Performance - Total revenue for the group rose by 21.6% to HKD 714.1 million compared to the same period last year[10] - Revenue for the cleaning services segment increased by 41.7% to HKD 498.6 million, accounting for approximately 70% of total revenue[10] - The cleaning segment saw a significant revenue increase of 41.7%, contributing HKD 498.6 million, which accounted for 69.8% of total revenue[23] - Revenue for the six months ended June 30, 2022, was approximately HKD 714.1 million, an increase of about 21.6% compared to HKD 587.2 million in the same period of 2021[47] - Revenue from external customers reached HKD 714,122,000, with a significant contribution from cleaning services at HKD 498,607,000[129] - Revenue from Hong Kong for the six months ended June 30, 2022, was HKD 702,110,000, up from HKD 587,154,000 in the same period of 2021, reflecting a growth of approximately 19.5%[151] Profitability - The operating profit increased by 29.8% to HKD 27.5 million, reflecting strong performance in the cleaning services sector[10] - The profit attributable to equity shareholders rose by 45.3% to HKD 17.8 million, with basic earnings per share increasing to HKD 4.29[10] - Gross profit for the period was approximately HKD 57.7 million, an increase of about 17.6% from HKD 49.0 million in the previous year[49] - Profit for the period was HKD 17,118 thousand, compared to HKD 12,247 thousand in the prior year, marking an increase of 39.8%[79] - The group reported a pre-tax profit of HKD 23,047,000[129] - The group reported a pre-tax profit of HKD 17,796,000 for the six months ended June 30, 2022, compared to HKD 12,247,000 for the same period in 2021, reflecting an increase of approximately 45.5%[168] Cost and Expenses - Service costs for the same period were approximately HKD 656.4 million, accounting for about 91.9% of total revenue, compared to 91.6% in the previous year[48] - Overall gross margin declined from 8.4% to 8.1%, primarily due to initial operating costs of new projects in the waste and recycling segment[31] - Administrative expenses increased by approximately 19.3% to HKD 48.2 million for the six months ended June 30, 2022, compared to HKD 40.4 million in 2021, accounting for about 6.7% and 6.9% of total revenue, respectively[57] - Financial costs rose to approximately HKD 2.7 million for the six months ended June 30, 2022, from HKD 2.0 million in 2021, representing about 0.4% and 0.3% of total revenue, respectively, due to increased levels of working capital loans and bank borrowing rates[58] Contracts and New Business - The group secured new street cleaning service contracts from the government valued at approximately HKD 1.6 billion[16] - The group obtained two new waste collection service contracts from the Environmental Protection Department, totaling approximately HKD 140 million[17] - The group achieved new contracts worth approximately HKD 19.5 billion, increasing the total contracts on hand from HKD 2.1 billion to approximately HKD 3.4 billion, a growth of about 59%[36] - The group secured seven three-year street cleaning service contracts from the Food and Environmental Hygiene Department, valued at approximately HKD 1.6 billion, expanding its service coverage to seven districts, serving over 2.5 million people[36] Technological Innovations - The group introduced green innovative technologies, including electric vehicles and IoT technology, to enhance service efficiency[16] - The group plans to introduce artificial intelligence technology to enhance pest control services and improve competitive barriers[31] - The group introduced a new fully automated high-speed plastic sorting equipment, expected to process over 10,000 tons of plastic annually, equivalent to 400 million plastic bottles[40] Financial Position - As of June 30, 2022, the group had cash and bank balances of approximately HKD 43.4 million, an increase of about 34.7% from HKD 32.3 million as of December 31, 2021[62] - The group's bank borrowings increased by approximately 28.5% to HKD 158.9 million as of June 30, 2022, compared to HKD 123.6 million as of December 31, 2021[63] - The group had unutilized bank credit facilities of approximately HKD 272.0 million as of June 30, 2022, compared to HKD 244.0 million as of December 31, 2021[64] - The group had contracted capital commitments of approximately HKD 19.1 million as of June 30, 2022, compared to HKD 4.4 million as of December 31, 2021[66] Market Conditions - The ongoing COVID-19 pandemic has increased demand for cleaning and disinfection services, positively impacting the group's performance[15] - The group recognized government subsidies totaling HKD 7,696,000 for the Employment Support Scheme during the reporting period, aimed at retaining employees amid the pandemic[160] Shareholder Returns - The interim dividend for this period is not recommended, consistent with the previous year[22] - The group did not recommend any interim dividend for the six months ended June 30, 2022, compared to HKD 14,940,000 declared for the same period in 2021[167]

Recycling and Waste Management - The company operates over 5,000 recycling points in Hong Kong, including plastics, glass, metals, and waste paper, and has established a food-grade PET plastic factory in Tuen Mun, expected to commence production in mid-2022[9]. - The company secured a contract with the Environmental Protection Department to collect over 20 tons of food waste daily from Kowloon, converting it into renewable energy at O.PARK1[9]. - The green technology business is expected to be a growth engine, with a contract to use biotechnology to convert chicken manure into animal feed and fertilizer, aiming to address larger waste issues in Hong Kong[10]. - The group expanded its recycling network to include gas stations and reverse vending machines, enhancing its leadership position in the recycling industry[29]. - A new recycling facility was opened in Yuen Long, covering 50,000 square feet with a maximum processing capacity of 20 tons per day, equipped with advanced sorting technology[25]. - The waste management and recycling segment's revenue increased by approximately 38.8% due to new contracts with the Food and Environmental Hygiene Department and the Airport Authority Hong Kong[36]. - The company anticipates significant opportunities in the recycling industry due to upcoming government policies under the "Hong Kong Climate Action Blueprint 2050" and "Hong Kong Resource Recycling Blueprint 2035"[44]. - The company has a commitment to pursuing new environmental technologies, including smart recycling systems and biotechnology[105]. Financial Performance - The group's revenue for the year was approximately HKD 1,273.8 million, an increase of about 12.5% compared to HKD 1,131.8 million in the previous year[30]. - Gross profit rose approximately 71.5% to about HKD 109.0 million, with a gross profit margin increase of 3.0 percentage points to approximately 8.6%[30]. - The cleaning business generated revenue of HKD 825.5 million, accounting for 64.8% of total revenue, reflecting a growth of 21.5%[32]. - Waste management and recycling revenue increased by 38.8% to HKD 234.0 million, representing 18.4% of total revenue[32]. - The company experienced a significant decrease in profit attributable to equity shareholders, down approximately 75.0% to HKD 12.8 million, primarily due to the absence of government subsidies under the "Employment Support Scheme" in 2021[30]. - The company plans to pay a final dividend of HKD 0.009 per share, totaling HKD 3,735,000, down from HKD 14,940,000 the previous year[31]. - The overall gross profit margin improved from approximately 5.6% to 8.6%, with gross profit amount increasing from approximately HKD 63.5 million to HKD 109.0 million[36]. - The service cost for the same period was approximately HKD 1,164.8 million, accounting for about 91.4% of total revenue, compared to 94.4% in the previous year[53]. - Other income decreased by approximately 76.8% to HKD 22.2 million from HKD 95.5 million, primarily due to the absence of government subsidies in 2021[55]. - The net cash generated from operating activities was approximately HKD 88.0 million, down from HKD 162.3 million in 2020[63]. Operational Efficiency and Technology - The company plans to enhance its iRecycle platform using big data technology to provide more precise services and create greater business opportunities[11]. - The company is focusing on smart machines and information technology to improve operational efficiency in its cleaning services, responding to increased demand due to the pandemic[16]. - The group will implement various IT solutions to enhance operational efficiency and optimize resource utilization[50]. - The company is committed to enhancing its operational efficiency and governance through continuous improvement initiatives led by experienced professionals[100]. Governance and Management - A Sustainable Development Steering Committee has been established to review and report on sustainability strategies regularly to the board[17]. - The company emphasizes compliance and governance, with board members having extensive backgrounds in operational management and financial analysis[100]. - The company has appointed Zhang Xiaozhen as the Executive Director, Chief Financial Officer, and Company Secretary since January 23, 2014, overseeing financial, procurement, and logistics departments[85]. - The management team includes Zhou Yutong, appointed as Chief Strategy Officer in November 2021, with over 25 years of experience in financial markets and mergers and acquisitions[94]. - The company has a strong board of independent non-executive directors, including Jun Haozhao, who has significant experience in sales and management roles since his appointment on April 24, 2014[87]. Human Resources and Talent Management - The company is actively involved in talent management and human resources, led by He Chenghui, who has over 20 years of experience in the field[95]. - The company aims to attract and retain talented individuals through the stock option plan, rewarding contributions to the group's growth[164]. Shareholder Information - As of December 31, 2021, major shareholders include Wu Yongkang with 279,256,000 shares (67.29%) and Chen Shujuan with the same number of shares, indicating significant family ownership[135][136]. - The company reported that sales to its top five customers accounted for 54.3% of total sales for the year, up from 50.8% in 2020, with the largest customer contributing 26.3%[151]. - The procurement amount from the top five suppliers represented 31.5% of total procurement, an increase from 26.8% in 2020, with the largest supplier accounting for 10.8%[151]. Stock Options and Remuneration - The company has a stock option plan that allows for the issuance of up to 10% of the total shares issued as of the listing date, which amounts to 40,000,000 shares[177]. - In the fiscal year, the company granted stock options for a total of 5,216,000 shares, representing approximately 1.26% of all issued shares as of the report date[193]. - The exercise price for stock options must be at least the higher of the closing price on the date of grant or the average closing price over the five trading days prior to the grant[189]. - The company can issue stock options exceeding the plan limit only with independent shareholder approval, and such options can only be granted to specifically designated qualified participants[187]. - The stock option plan is valid for 10 years from April 24, 2014, unless terminated early by shareholders[192]. - The maximum number of shares that can be issued upon exercise of all outstanding stock options cannot exceed 30% of the total issued shares at any time[188]. - The company has not reported any changes in the remuneration of directors and the five highest-paid individuals[156].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 587.154 million, a decrease of 0.7% compared to HKD 591.055 million in the same period of 2020[10]. - The operating profit increased by 27.8% to HKD 21.195 million, compared to HKD 16.582 million in the previous year[10]. - The profit attributable to equity shareholders rose by 9.8% to HKD 12.247 million, up from HKD 11.158 million in the same period last year[10]. - The company reported a gross profit of HKD 49.033 million, reflecting a 48.7% increase from HKD 32.976 million in the prior year[10]. - Gross profit increased by approximately 48.7% to about HKD 49.0 million, with a gross margin improvement of 2.8 percentage points to approximately 8.4%[23]. - The group reported a profit attributable to equity shareholders of approximately HKD 12.2 million, an increase of about 9.8% from HKD 11.2 million in the same period of 2020[62]. - The total comprehensive income for the six months ended June 30, 2021, was HKD 12,247,000, compared to HKD 11,857,000 in the same period of 2020, reflecting a growth of approximately 3.3%[100]. Revenue Segmentation - The waste management and recycling segment saw a significant increase in revenue, rising by 47.4% to HKD 117.595 million from HKD 79.768 million year-on-year[10]. - The cleaning segment accounted for approximately 59.9% of total revenue, while waste management and recycling contributed 20.0%[34]. - Revenue from waste plastic sourcing, collection, and sorting services increased to HKD 12,999 million in the first half of 2021, up from HKD 4,635 million in the same period of 2020[185]. Market and Economic Context - The Hong Kong economy grew by 7.8% year-on-year in the first half of 2021, benefiting from a rebound in internal consumption and strong export growth[17]. - The market for integrated environmental and waste management services is anticipated to grow due to increased public awareness of environmental health and hygiene during the pandemic[17]. - The company anticipates increased demand for professional recycling services and waste management following the implementation of the municipal solid waste charging scheme[47]. Operational Developments - The group secured new contracts worth approximately HKD 10.5 million from government tenders, including street cleaning and waste collection services[25]. - The group expanded its waste collection network, including a new waste sorting plant with a maximum processing capacity of 20 tons per day, set to open in Q3 2021[31]. - The company aims to leverage its waste management technology platform to track every piece of waste, aligning with the vision of a carbon-neutral economy[17]. - The company is focused on developing new green technologies and expanding its market presence in response to the evolving waste management landscape in Hong Kong[16]. Financial Position and Cash Flow - The net cash generated from operating activities was approximately HKD 51.4 million, down from HKD 70.7 million in the first half of 2020[64]. - As of June 30, 2021, the group had cash and bank balances of approximately HKD 57.0 million, an increase of about 99.7% from HKD 28.5 million at the end of 2020[64]. - The group's bank borrowings increased by approximately 21.1% to HKD 130.3 million as of June 30, 2021, compared to HKD 107.6 million at the end of 2020[64]. - The net cash generated from financing activities was HKD 13,476,000, contrasting with a net cash outflow of HKD 52,857,000 in the prior year, showing improved financing conditions[100]. Shareholder Information - Major shareholder Wu Yongkang holds 67.29% of the company's issued shares, totaling 279,256,000 shares[198]. - Wu Yongkang also directly owns an additional 4,256,000 shares, bringing his total ownership to 283,512,000 shares[198]. - Wu Yukun's spouse, Chen Shujuan, is considered to have an interest in all shares held by him, as per securities regulations[199]. - Wu Yukun's family member Wu Yaqun directly holds 6.44% of the shares, amounting to 26,736,000 shares[198]. Challenges and Competition - The group continues to face intense market competition and project delays due to the pandemic, but remains focused on high-margin projects[25]. - The horticulture segment continues to be affected by COVID-19, with increased operational costs and intense competition hindering new contract bidding results[36]. Technology and Innovation - The "iRecycle" platform was developed to encourage proper recycling and offers rewards in the form of iDollar for users[33]. - The company plans to actively develop its proprietary waste recycling and management technology platform to enhance waste management efficiency and increase recycling rates[48].

Financial Performance - The group's revenue for the year was approximately HKD 1,131.8 million, a decrease of about 19.0% compared to HKD 1,397.5 million in 2019[23]. - Gross profit fell by approximately 9.8% to about HKD 63.5 million, with a gross margin increase of 0.6 percentage points to approximately 5.6%[23]. - The net profit attributable to shareholders turned from a loss of approximately HKD 11.0 million last year to a profit of approximately HKD 51.4 million this year, resulting in a net profit margin of approximately 4.5%[23]. - The cleaning segment's revenue decreased by 30.5% to HKD 679.5 million, accounting for 60.0% of total revenue[25]. - The pest management segment recorded a revenue increase of approximately 56.3% to HKD 111.3 million, representing 9.9% of total revenue[25]. - The group's revenue for the year ended December 31, 2020, was approximately HKD 1,131.8 million, a decrease of about 19.0% compared to HKD 1,397.5 million in 2019[41]. - The service costs for the same period were approximately HKD 1,068.3 million, accounting for about 94.4% of the total revenue, down from HKD 1,327.0 million in 2019[42]. - The gross profit for the year was approximately HKD 63.5 million, a decrease of about 9.8% from HKD 70.5 million in 2019[43]. - Other income increased significantly to approximately HKD 95.5 million from HKD 5.2 million in 2019, representing a growth of about 17.4 times, mainly due to government subsidies[45]. - The net cash generated from operating activities was approximately HKD 162.3 million, up from HKD 34.4 million in 2019[54]. - The group's total current assets and current liabilities were approximately HKD 355.2 million and HKD 264.6 million, respectively, resulting in a current ratio of about 1.3 times[54]. - The group's financial costs decreased to approximately HKD 7.8 million from HKD 10.5 million in 2019, representing about 0.7% of total revenue[51]. - The group achieved a profit attributable to shareholders of approximately HKD 51.4 million, a turnaround from a loss of HKD 11.0 million in the previous year[52]. - Capital expenditure for the year was approximately HKD 17.1 million, down from HKD 25.3 million in 2019[56]. - As of December 31, 2020, the company's distributable reserves amounted to approximately HKD 99.5 million, with about HKD 14.9 million proposed for the final dividend to shareholders[86]. Environmental Initiatives - Baguio Green Group Limited reported a comprehensive performance for the year ending December 31, 2020, amidst challenges posed by the pandemic, highlighting the increased public focus on sustainable living environments[7]. - The company aims to enhance its one-stop environmental service solutions, which include cleaning, resource recovery, waste management, and integrated pest management, by introducing advanced management technologies[7]. - Baguio has adopted various IT solutions to improve operational efficiency, including the "iAttendency" platform for employee management and a GIS platform for fleet management[8]. - The company is participating in numerous government environmental service tenders, aligning with the Hong Kong government's "Resource Recycling Blueprint 2035" to achieve zero waste to landfill[9]. - Baguio's vision includes leveraging its growing waste management technology platform to track waste and carbon footprints, enhancing sustainability efforts for clients[11]. - The company has developed the "iRecycle" platform, integrating AI and big data analytics to encourage household participation in recycling, aiming to improve recycling coverage and efficiency[12]. - The company signed contracts with the Environmental Protection Department for the collection and recycling of recyclable paper materials[20]. - Medical waste collection revenue surged due to community quarantine facilities and widespread testing initiatives related to COVID-19[20]. - The "iRecycle" platform successfully collected 176,564 plastic bottles and 30,447 glass bottles in 2020, promoting public awareness of waste recycling[21]. - The company is exploring processing methods for other materials, such as PP plastic containers and paper, to expand its recycling network[21]. - The Hong Kong government allocated HKD 5,903.1 million for environmental hygiene and related services during 2020-2021, representing a significant increase of 19.5%[38]. - The government aims to reduce per capita solid waste disposal and enhance recycling rates as part of the "Hong Kong Resource Recycling Blueprint 2035" initiative[38]. - The Environmental Protection Department (EPD) plans to establish a community recycling network with recycling stations and mobile points across 18 districts in Hong Kong[38]. - The proposed Producer Responsibility Scheme for Plastic Beverage Containers (PPRS) will charge suppliers for recycling fees and offer public incentives for returning used containers[39]. - The group is set to operate Hong Kong's first food-grade plastic recycling facility in collaboration with EcoGreen Group (Asia) Limited and Swire Beverages, expected to process 35,000 tons of waste PET and HDPE annually[39]. - The facility is projected to handle up to 100 tons of plastic daily, starting operations in the second half of 2021[39]. - The group is actively participating in various sustainability organizations to share best practices and enhance its sustainable development efforts[36]. Market Position and Competition - Baguio's extensive service network and investment in digitalization and innovative technologies position it to seize new development opportunities in a competitive market[12]. - The company secured multiple service contracts with large private enterprises and public institutions, enhancing its market position in integrated environmental services[17]. - The pest control business experienced stable growth, driven by increased demand from commercial buildings during the pandemic[17]. - The company anticipates continued pressure on the profitability of gardening services due to intensified market competition[19]. - The group maintained a high bid success rate of approximately 37% for the year, slightly down from 38% in 2019[27]. Corporate Governance and Management - The company expresses gratitude to its board and employees for their support during challenging times, aiming to deliver ideal returns to shareholders in the future[13]. - The board proposed a final dividend of HKD 0.036 per share, totaling HKD 14,940,000, subject to shareholder approval[24]. - The company has maintained appropriate directors' and officers' liability insurance throughout the fiscal year[97]. - The board of directors includes Wu Yongkang as chairman and Wu Yuqin as CEO, with several other executive and independent non-executive directors[92]. - The company has a service contract with each executive director, allowing termination with a written notice of at least three months[95]. - The company has confirmed compliance with the employee written guidelines regarding securities trading[162]. - The company maintains a diverse board composition, considering factors such as gender, age, cultural background, and professional experience[184]. - The remuneration committee has held one meeting this year to review the compensation packages for directors and senior management[191]. - The company's remuneration policy aims to provide competitive market-level salaries to attract and retain talented employees[190]. - The board has established committees including the remuneration committee, nomination committee, and audit committee, each with specific written terms of reference[186]. - The independent non-executive directors have confirmed their independence according to the listing rules[168]. - The company has implemented appropriate insurance arrangements for directors and senior management against legal actions arising from their duties[171]. - The board is responsible for overseeing the company's business, strategic decisions, and performance[169]. - The company will regularly review its board diversity policy to ensure its ongoing effectiveness[185]. - The Nomination Committee is responsible for reviewing the board's structure, size, and composition annually, ensuring alignment with the company's corporate strategy[194]. - The committee evaluates candidates based on skills, knowledge, experience, and integrity, aiming for board diversity[194]. - The Audit Committee oversees financial reporting, risk management, and internal controls, maintaining a proper relationship with external auditors[197]. - The Audit Committee has reviewed financial statements for the six months ending June 30, 2020, and the year ending December 31, 2020[198]. - The Nomination Committee held one meeting this year, with all members in attendance, to review the board's structure and composition[196]. - The Audit Committee is tasked with reporting any significant fraud, regulatory breaches, or internal control failures to the board[197]. - The Nomination Committee has adopted a nomination policy outlining the criteria and procedures for appointing and reappointing directors[194]. - The Audit Committee is responsible for recommending the appointment, reappointment, and removal of external auditors to the board[197]. - The Nomination Committee includes independent non-executive directors, ensuring impartiality in the nomination process[196]. - The Audit Committee members possess appropriate professional qualifications and financial experience[198]. Employee and Operational Insights - The company has implemented various in-service training programs to enhance frontline service and management quality[62]. - As of December 31, 2020, the company employed 5,255 staff, a decrease from 7,457 staff in 2019[62]. - The company maintains a focus on ensuring sufficient reserves for future development while continuing to provide returns to shareholders[82]. - The company’s financial performance and overall financial condition are key factors in determining dividend payments[82]. - The company’s major business nature did not undergo significant changes during the year[79]. - The company’s reserves and changes in reserves are detailed in the consolidated financial statements[84]. - The company’s capital structure and changes in share capital are outlined in the consolidated financial statements[85]. - The company’s risk management and internal control systems are discussed in the corporate governance report[80]. - The company’s environmental policies and stakeholder relationships are addressed in the ESG report[80]. - The company’s financial performance for the year is presented in the consolidated income statement and other comprehensive income[82]. - The company has not purchased, redeemed, or sold any of its listed securities during the year[90]. - The major shareholders include Wu Yongkang, who holds 67.27% of the shares through Baguio Green (Holding) Limited, and Wu Yuqin, who directly holds 6.44%[101]. - The company has entered into a continuous related party transaction with Nexus Solutions Limited for IT services, which has been extended until December 31, 2022[107]. - NSL provided IT products and services to the group amounting to approximately HKD 3,297,000, which did not exceed the annual cap of HKD 4,000,000 for the year[108]. - Sales to the group's top five customers accounted for 50.8% of total sales for the year, down from 61.0% in the previous year, with the largest customer contributing 17.8%[112]. - Purchases from the group's top five suppliers represented 26.8% of total purchases for the year, a decrease from 28.5% in the previous year, with the largest supplier accounting for 10.1%[112]. - The company has not entered into any significant contracts with its controlling shareholders during the year[111]. - The remuneration committee reviews the compensation policy based on the group's operational performance and market practices[114]. - The company has not established any management contracts for regulating and managing significant parts of the group's business during the year[113]. - The company has adopted a share option scheme to incentivize qualified participants contributing to the group's success[130]. - The total number of shares that may be issued under the share option scheme shall not exceed 10% of the issued shares as of the listing date, which is 40,000,000 shares[130]. - The company has not recorded any waiver of remuneration by directors during the year[116]. - The independent non-executive directors have reviewed the continuing connected transactions and confirmed they were conducted on normal commercial terms[108]. - The company granted options to subscribe for a total of 5,216,000 shares, representing approximately 1.26% of the total issued shares as of the report date[142]. - During the year, 100,000 options lapsed due to the resignation of employees who were granted the options[142]. - The exercise price for the options is set at HKD 1.00 per share[143]. - The options plan has a remaining term of 10 years from April 24, 2014, unless terminated early by shareholders[142]. - No new options were granted during the year under the options plan[146]. - The company has adopted a share award scheme to recognize and reward contributions from eligible participants[148]. - As of the report date, no shares have been granted under the share award scheme[149]. - The company maintains a public float of at least 25% of its total issued share capital[154]. - The audit committee reviewed the audited consolidated annual results for the year and assessed the effectiveness of the company's risk management and internal control systems[155]. - KPMG has been nominated for reappointment as the company's auditor at the upcoming annual general meeting[156]. - The board of directors consists of eight members, including five executive directors and three independent non-executive directors[163].

Revenue and Profitability - Revenue for the first half of 2020 was HKD 591.1 million, a decrease of 17.8% compared to HKD 719.1 million in the same period of 2019[9]. - The company reported a gross profit of HKD 33.0 million, down 23.1% from HKD 42.9 million year-on-year[9]. - Operating profit increased by 89.1% to HKD 16.6 million, compared to HKD 8.8 million in the previous year[9]. - Profit attributable to equity shareholders surged by 191.0% to HKD 11.2 million, up from HKD 3.8 million in the same period last year[9]. - The basic earnings per share rose to HKD 2.69, compared to HKD 0.92 in the previous year[9]. - The group's revenue for the first half of 2020 was approximately HKD 591.1 million, a decrease of about 17.8% compared to HKD 719.1 million in the same period of 2019[20]. - Gross profit fell by approximately 23.1% to about HKD 33.0 million, with a gross profit margin decrease of 0.4 percentage points to approximately 5.6%[20]. - Profit attributable to equity shareholders was approximately HKD 11.2 million, an increase of about 191.0% compared to HKD 3.8 million in the same period of 2019[20]. - The total comprehensive income for the period was approximately HKD 11.7 million, compared to HKD 3.6 million for the same period in 2019[73]. - The pre-tax profit for the six months ended June 30, 2020, was HKD 10,749,000, compared to HKD 4,334,000 for the same period in 2019, indicating an increase of approximately 147.5%[118]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted the Hong Kong economy, with a reported GDP decline of 9.0% in Q2 2020[14]. - The company faced challenges in the environmental and cleaning industry due to increased demand for cleaning and disinfection services amid the pandemic[14]. - The Hong Kong government launched an HKD 800 billion employment support scheme to help service companies like Baguio mitigate the economic impact of the pandemic[14]. - The group received government subsidies totaling 12,210,000 HKD under the Employment Support Scheme to retain employees during the COVID-19 pandemic[140]. Revenue Segmentation - The cleaning services segment generated revenue of HKD 361.7 million, accounting for 61.2% of total revenue, a decrease of 29.6% from the previous year[31]. - The pest management segment saw revenue growth of approximately 87.3%, reaching HKD 97.9 million, indicating strong demand for professional gardening and arboriculture services[32]. - The clean services segment generated revenue of HKD 361,691,000, while the gardening services, pest management, and waste management segments generated revenues of HKD 97,939,000, HKD 51,657,000, and HKD 79,768,000 respectively[111]. Cost and Expenses - Service costs for the same period were approximately HKD 558.1 million, accounting for about 94.4% of the group's revenue, compared to 94.0% in the previous year[46]. - Sales and marketing expenses decreased by approximately 46.4% to about HKD 0.6 million from HKD 1.1 million in the previous year[51]. - Administrative expenses increased by approximately 4.8% to about HKD 37.6 million, accounting for about 6.4% of total revenue[52]. - The group reported a decrease in employee costs to 490,804,000 HKD for the six months ended June 30, 2020, from 603,613,000 HKD in the same period of 2019, a reduction of approximately 19%[140]. Assets and Liabilities - As of June 30, 2020, the company's total assets amounted to HKD 367,997,000, a decrease of 13.1% from HKD 423,201,000 as of December 31, 2019[79]. - The company's total liabilities decreased to HKD 342,240,000 as of June 30, 2020, from HKD 419,941,000 as of December 31, 2019, indicating a reduction of 18.5%[79]. - The company's bank borrowings decreased by approximately 17.3% to HKD 194.5 million as of June 30, 2020, down from HKD 235.1 million as of December 31, 2019[60]. - The company's asset-liability ratio improved to approximately 1.0 times as of June 30, 2020, down from 1.2 times as of December 31, 2019[60]. Cash Flow - The net cash generated from operating activities during the period was approximately HKD 70.7 million, a significant increase from HKD 8.1 million in the first half of 2019[59]. - The company's cash and cash equivalents increased to HKD 41,118,000 as of June 30, 2020, up from HKD 22,887,000 at the beginning of the period[87]. - The company reported a net cash outflow from financing activities of HKD 52,857,000 for the period, compared to a net cash inflow of HKD 10,471,000 in the previous year[87]. Future Plans and Developments - The group plans to operate Hong Kong's first food-grade plastic recycling facility by the end of 2020, expected to process up to 100 tons of plastic daily and recycle 35,000 tons of PET and HDPE annually[41]. - The group is committed to expanding its recycling network and exploring processing methods for food waste and paper to increase the variety of recyclable materials[29]. - The group is committed to expanding its local recycling business and enhancing its cleaning and pest management core services, anticipating the implementation of a solid waste charging scheme in the near future[41]. Miscellaneous - The group launched a blockchain-supported recycling platform "iRecycle" in April 2020, collecting over 64,000 plastic and glass bottles within the first 100 days[29]. - The company has adopted the revised Hong Kong Financial Reporting Standard 16 regarding leases, which allows for certain rent concessions related to the COVID-19 pandemic to be recognized as variable lease expenses[101]. - The group did not declare any interim dividend for the six months ended June 30, 2020, compared to 2,905,000 HKD declared in the same period of 2019[142].

Business Challenges and Opportunities - Baguio Green Group Limited faced significant challenges in 2019 due to social unrest in Hong Kong and the onset of COVID-19, impacting its operations and the recycling business [9]. - The company believes that the demand for environmental services will continue to grow in daily life, driven by increased public awareness of hygiene and waste management [9]. - Baguio is committed to long-term sustainable environmental development and sees 2020 as a significant opportunity for internal growth [11]. - The company plans to continue investing in internal improvements, enhancing technology, and securing more partnership agreements for long-term business development [11]. - The Hong Kong government plans to establish a HKD 200 million low-carbon green research fund and issue a total of HKD 66 billion in green bonds over the next five years, creating opportunities for the environmental services sector [41]. Financial Performance - The company's revenue for the year was approximately HKD 1,397.5 million, a slight decrease of about 2.2% compared to HKD 1,429.5 million in 2018 [27]. - Gross profit fell by approximately 24.2% to about HKD 70.5 million, with a gross margin decrease of 1.5 percentage points to around 5.0% [27]. - The company reported a net loss attributable to shareholders of approximately HKD 11.0 million, compared to a profit of about HKD 17.9 million in the previous year [27]. - Administrative expenses increased by approximately 8.8% to HKD 80.2 million, accounting for about 5.7% of total revenue [52]. - Financial costs rose to approximately HKD 10.5 million in 2019, representing about 0.8% of total revenue, due to increased interest rates and higher average bank borrowings [56]. Revenue Segmentation - The waste management and recycling segment saw a revenue increase of 23.0%, reaching HKD 164.8 million, contributing 11.8% to total revenue [30]. - The pest management segment experienced a significant revenue growth of 60.7%, totaling HKD 71.2 million, which accounted for 5.1% of total revenue [30]. - The cleaning segment's revenue decreased by 8.3% to HKD 977.3 million, representing 69.9% of total revenue [30]. Investments and Developments - The company established a joint venture with ALBA Group Asia Limited and Swire Beverages to build the first food-grade plastic recycling facility in Hong Kong, marking a significant milestone in local plastic processing [10]. - The new facility is expected to process and recycle approximately 35,000 tons of waste PET and HDPE plastics annually, focusing on international markets for food-grade recycled products [11]. - The company is developing a one-stop smart phone application to enhance public engagement in recycling, which is currently in the final development stage [41]. - The company plans to invest more resources in collecting glass bottles and plastic containers to promote local recycling efforts [41]. Shareholder Returns and Dividends - The company did not recommend a final dividend for the year, compared to a final dividend of HKD 0.007 per share in 2018 [28]. - The company aims to continuously provide returns to shareholders while considering financial performance, debt-to-equity ratio, and capital needs when deciding on dividends [96]. - The financial performance and overall financial position of the group are key factors in determining dividend payments [96]. - The board considers overall market conditions and other relevant factors when making decisions regarding dividends [96]. Corporate Governance and Risk Management - The company has a comprehensive risk management and internal control system in place, as detailed in the annual report [93]. - The audit committee reviewed the group's audited annual performance and assessed the effectiveness of the company's risk management and internal control systems [196]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value [193]. Shareholder Information - As of December 31, 2019, major shareholders include Wu Yongkang with 278,256,000 shares (approximately 41.5% ownership) and Chen Shujuan with 278,256,000 shares (approximately 41.5% ownership) [126]. - The company reported that sales to the top five customers accounted for 61.0% of total sales for the year, down from 64.2% in 2018, with the largest customer contributing 26.2% [142]. - The total procurement amount from the top five suppliers represented 28.5% of total procurement, slightly up from 28.2% in 2018, with the largest supplier accounting for 7.6% [142].

覧 BAGUIO Clean Green 碧 瑤 綠 色 集 團 有 限 公 司 Baguio Green Group Limited ( 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code：1397 110011 00 01001110 01000100 010 01001110 010001 Clean Recy ALL PRODUCTION CONSULT INTERIM REPORT 中期報告 2019 目 錄 2 公司資料 3 財務摘要 4 管理層討論及分析 43001110 01000100 綜合損益及其他全面收益表 01001110 C 綜合財務狀況表 01001010 15 綜合權益變動表 簡明綜合現金流量表 01000100 01010011 01 16 01001010 017 015 未經審核中期財務報告附註 01101100 0103516 0101 00100101 獨立審閱報告 01001010 36 其他資料 010011 ...

雞 碧 瑤 綠 色 集 團 有 限 公 司 Baguio Green Group Limited ( 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code：1397 2018年報 ANNUAL REPORT in Oreen 目錄 公司資料 2 主席報告 3 管理層討論及分析 5 董事履歷詳情 12 董事會報告 15 企業管治報告 25 環境、社會及管治報告 36 獨立核數師報告 65 綜合損益及其他全面收益表 70 綜合財務狀況表 71 綜合權益變動表 72 綜合現金流量表 73 綜合財務報表附註 74 五年財務概要 128 公司資料 執行董事 吳永康先生 吳玉群女士 吳永全先生 梁淑萍女士 陳淑娟女士 核數師 畢馬威會計師事務所 | --- | --- | |---------------------|------------------------------------------------| | | | | 張笑珍女士 | 香港主要營業地點 ...