Business Growth and Opportunities - The company successfully secured more service contracts during the reporting period, contributing to business growth despite challenges from labor shortages and high operational costs[8]. - The company is actively exploring business opportunities in the Greater Bay Area and Southeast Asia[11]. - The company aims to target untapped government departments and private institutions for new tender contracts, leveraging its substantial resources[16]. - The company plans to enhance its service capabilities by investing in vehicles and cleaning equipment to secure more projects[15]. Financial Performance - The company's revenue for the year ended December 31, 2023, decreased by approximately 1.8% to about HKD 948.7 million from HKD 966.3 million in the previous year[19]. - The service cost reduced by approximately 3.0% to about HKD 890.7 million, resulting in a gross profit increase of approximately 21.3% to about HKD 58.0 million[19][26]. - The gross profit margin improved to approximately 6.1% from 5.0% in the previous year[29]. - The profit attributable to shareholders for the reporting period was approximately HKD 14.1 million, down from HKD 20.3 million for the year ended December 31, 2022[33]. - Administrative expenses increased by approximately 8.0% to about HKD 37.3 million, primarily due to legal and professional fees related to various corporate actions[31]. Investments and Future Plans - The company plans to invest in advanced and innovative cleaning machines and equipment to improve service quality and efficiency[9]. - The company plans to enhance its information technology systems to improve operational efficiency, with an allocation of HKD 2.7 million for this purpose[42]. - The company is investing in R&D, allocating $H million towards the development of new technologies and products[54]. - The company is expanding its market presence in regions E and F, aiming to capture a larger share of the market[54]. Corporate Governance and Compliance - The board of directors includes three executive directors and three independent non-executive directors, with changes in appointments noted in May 2023[80]. - The company has established a remuneration committee to review the remuneration policy and structure for all directors and senior management based on the group's operating performance and market practices[96]. - The company has complied with all applicable code provisions of the corporate governance code during the reporting period[107]. - The company has established a risk management framework, with a risk management team that conducts annual assessments of significant risks affecting business objectives[137]. Environmental, Social, and Governance (ESG) Efforts - The company has maintained compliance with environmental protection laws and regulations, emphasizing resource efficiency and waste reduction[68]. - The ESG strategy focuses on pollution prevention, service improvement, and promoting environmental awareness among suppliers and customers[157]. - The company achieved a 7% reduction in absolute greenhouse gas emissions compared to the previous fiscal year[171]. - The company is committed to enhancing workplace health and safety, including measures to address COVID-19 risks[157]. Shareholder and Financial Management - The company does not recommend the payment of a final dividend for the year ended December 31, 2023[20]. - The board will consider various factors, including the company's financial performance and capital expenditure needs, before recommending any dividend distribution[99]. - The company has confirmed that at least 25% of its issued share capital is held by the public as of the report date[100]. - The company has not engaged in the purchase, redemption, or sale of any listed securities during the reporting period[78]. Risk Management and Training - The board is responsible for monitoring the effectiveness of the risk management and internal control systems, which are designed to manage rather than eliminate risks[139]. - The company provides training for directors, with each director receiving at least 15 hours of relevant professional training to update their skills and knowledge[133]. - The company has implemented appropriate liability insurance for its directors and senior officers to cover legal responsibilities arising from company operations[130]. Operational Efficiency and Cost Management - The company aims to enhance operational efficiency and control costs while improving internal monitoring and financial conditions[9]. - The company has implemented cost-saving measures projected to reduce operational expenses by J% over the next year[54]. - The company has established energy-saving principles and green practices in the workplace, including monitoring electricity consumption and maintaining office temperatures between 24 to 26 degrees Celsius during summer[191].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 948,683,000, a decrease of 1.3% from HKD 966,288,000 in 2022[4] - Gross profit increased to HKD 58,021,000, up 21.4% from HKD 47,834,000 in the previous year[4] - Profit before tax decreased to HKD 18,590,000, down 18.3% from HKD 22,786,000 in 2022[4] - Net profit attributable to owners of the company was HKD 14,060,000, a decline of 30.8% compared to HKD 20,326,000 in the prior year[4] - Basic earnings per share decreased to HKD 0.38 from HKD 0.61, representing a drop of 37.7%[4] - The company reported a total comprehensive income of HKD 20,326,000 for the year ended December 31, 2022, and HKD 14,060,000 for the year ended December 31, 2023[7] - The profit attributable to equity shareholders was approximately HKD 14.1 million, down from HKD 20.3 million in the same period of 2022[59] Assets and Liabilities - Total assets decreased to HKD 150,619,000 from HKD 121,258,000, indicating a growth of 24.2%[6] - Current liabilities decreased to HKD 179,699,000 from HKD 200,723,000, a reduction of 10.5%[6] - Non-current liabilities increased to HKD 49,340,000 from HKD 41,949,000, an increase of 17.1%[6] - Total assets as of December 31, 2023, amounted to HKD 330,318,000, a decrease from HKD 321,981,000 in 2022[28] - Total liabilities as of December 31, 2023, were HKD 229,039,000, compared to HKD 242,672,000 in 2022, indicating a reduction in liabilities[28] - The company's asset-liability ratio improved to approximately 0.9 times as of December 31, 2023, compared to 1.4 times in 2022[83] Equity and Retained Earnings - The company's equity attributable to owners increased to HKD 101,279,000 from HKD 79,309,000, a rise of 27.7%[6] - The total equity increased from HKD 58,983,000 on January 1, 2022, to HKD 101,279,000 by December 31, 2023, reflecting a growth of approximately 71.5%[7] - The retained earnings rose significantly from HKD 12,570,000 at the beginning of 2022 to HKD 46,956,000 by the end of 2023, indicating an increase of about 273.5%[7] Revenue Breakdown - Revenue from cleaning services increased to HKD 816,330,000 in 2023, up 3.1% from HKD 786,807,000 in 2022[20] - Revenue from pest management services decreased significantly to HKD 24,111,000 in 2023, down 61.3% from HKD 62,381,000 in 2022[21] - Waste management and recycling services revenue fell to HKD 101,381,000 in 2023, a decline of 12.8% from HKD 116,278,000 in 2022[21] - New revenue streams from car sales and leasing amounted to HKD 6,120,000 in 2023, indicating diversification efforts[21] Expenses and Costs - Administrative expenses increased to HKD 37,343,000 in 2023 from HKD 34,577,000 in 2022[26] - Financing costs rose to HKD 5,864,000 in 2023, compared to HKD 4,507,000 in 2022[26] - Service costs reduced by about 3.0% to approximately HKD 890.7 million, compared to HKD 918.5 million in 2022[59] Cash Flow and Liquidity - The company’s cash and bank balances stood at HKD 72,277,000 as of December 31, 2023, compared to HKD 21,084,000 in 2022, showing a significant increase in liquidity[28] - As of December 31, 2023, the group maintained a net cash position with total bank borrowings of approximately HKD 54.7 million, down from HKD 78.5 million in 2022[74] - The current ratio improved to approximately 1.3 times, compared to 1.1 times in the previous year, indicating better liquidity management[74] Future Plans and Market Outlook - The company plans to focus on market expansion and new product development in the upcoming year[2] - The company plans to continue focusing on expanding its cleaning and waste management services in the Hong Kong market[25] - The company aims to secure more tender contracts from government departments and private organizations that currently do not use its services[56] - The company is optimistic about the future of the environmental hygiene service industry due to increasing public awareness of hygiene and health[58] Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes as of December 31, 2023[85] - The audit committee confirmed that the annual performance complies with applicable accounting standards and GEM listing rules[100] - The group has disclosed its financial results in accordance with the relevant legal requirements[104] Dividends and Shareholder Information - The company did not declare or propose any dividends for the year ended December 31, 2023, consistent with 2022[37] - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2023, consistent with the previous year[96] - The next annual general meeting is scheduled for May 7, 2024, with a notice to be published in due course[97]

Financial Performance - Revenue for the three months ended September 30, 2023, was HKD 230,536,000, a decrease of 11.3% compared to HKD 259,973,000 for the same period in 2022[5] - Gross profit for the nine months ended September 30, 2023, was HKD 40,933,000, representing an increase of 14.4% from HKD 35,888,000 in the same period last year[5] - The company reported a profit before tax of HKD 4,753,000 for the three months ended September 30, 2023, down 29.0% from HKD 6,709,000 in the previous year[5] - Basic earnings per share for the nine months ended September 30, 2023, was 53.8 HK cents, a decrease of 29.5% compared to 76.3 HK cents for the same period in 2022[5] - Total comprehensive income for the nine months ended September 30, 2023, was HKD 11,684,000, down from HKD 15,261,000 in the same period last year[5] - The group recorded a net other loss of approximately HKD 28,000 for the nine months ended September 30, 2023, compared to a net other income of approximately HKD 2.4 million in the same period of 2022[29] - The group's after-tax net profit for the nine months ended September 30, 2023, decreased by approximately 23.4% to about HKD 11.7 million, compared to HKD 15.3 million for the same period in 2022[32] Expenses and Costs - The company’s administrative expenses for the three months ended September 30, 2023, were HKD 9,243,000, an increase of 2.9% from HKD 8,979,000 in the previous year[5] - The company’s financing costs for the nine months ended September 30, 2023, were HKD 3,297,000, slightly down from HKD 3,347,000 in the same period last year[5] - Other income for the three months ended September 30, 2023, was HKD 965,000, a decrease of 57.7% compared to HKD 2,280,000 in the same period in 2022[5] - Administrative expenses increased by approximately 8.5% from about HKD 24.8 million to about HKD 27.0 million, primarily due to an increase in professional fees[30] - Administrative expenses increased by approximately HKD 2.0 million during the reporting period[32] Share Capital and Equity - The company completed a placement of 80,000,000 shares at a price of HKD 0.1 per share, raising approximately HKD 7,910,000, which increased the share capital by HKD 800,000[8] - The company’s total equity as of September 30, 2023, was HKD 98,904,000, an increase from HKD 74,244,000 as of September 30, 2022[7] - Basic earnings per share attributable to the company's owners decreased from HKD 15.3 million to HKD 11.7 million for the nine months ended September 30, 2023[25] - The number of weighted average ordinary shares for calculating basic earnings per share increased from 20,000 thousand shares to 21,729 thousand shares due to a share placement in June 2023[25] Corporate Governance - The company has established an audit committee, which includes three independent non-executive directors, responsible for reviewing annual reports and financial statements[57] - The remuneration committee, formed on June 24, 2017, includes one executive director and two independent non-executive directors, focusing on the remuneration policies for all directors and senior management[59] - The nomination committee, also established on June 24, 2017, is responsible for recommending appointments and succession planning for directors[60] - The company has complied with all applicable corporate governance codes as per GEM listing rules during the reporting period[54] - No directors or key executives held any interests or short positions in the company's shares as of September 30, 2023[49] - The company has not disclosed any other individuals with interests in the company's shares, apart from those mentioned in the report[52] - The board of directors includes three executive directors and three independent non-executive directors as of November 10, 2023[62] - The company has adopted a code of conduct for directors' securities transactions, adhering to GEM listing rules[53] Future Outlook and Strategy - The company remains optimistic about the prospects of the environmental cleaning services industry and is investing in vehicles, cleaning machines, and equipment to expand its business and enhance its capacity to undertake more projects[33] - The company aims to secure more tender contracts from Hong Kong government departments and private institutions that currently do not use its services, leveraging its substantial resources[36] - The company plans to enhance brand awareness and competitiveness through strengthening its sales and marketing teams over the next few years[36] Other Financial Activities - The company issued exchangeable bonds amounting to HKD 20 million on January 19, 2023, to offset existing loan obligations[42] - The exchangeable bonds grant the purchaser the right to exchange them for 50,000 shares of the subsidiary at an initial exchange price of HKD 400 per share[45] - The company did not declare or propose any interim dividends for the nine months ended September 30, 2023, consistent with the previous year[24] - The company implemented a share consolidation on June 23, 2023, merging every 20 existing shares with a par value of HKD 0.01 into one consolidated share with a par value of HKD 0.2, effective August 1, 2023[48] Impact of External Factors - The company will continue to support Hong Kong's pandemic prevention efforts while remaining vigilant about the ongoing impacts of the pandemic on its operations and financial condition[37]

Lapco Holdings Limited 立高控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8472） 第 三 季 度 業 績 截 至 二 零 二 三 年 九 月 三 十 日 止 九 個 月 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為較於聯交所上市的其他公司可能帶有較高投資風險的中小 型公司提供一個上市的市場。有意投資者應了解投資於該等公司的潛在風險， 並應經過審慎周詳考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣的證券可能會承受較於主 板買賣的證券為高的市場波動風險，同時亦無法保證在GEM買賣的證券會有 高流通量的市場。 香港交易及結算所有限公司及聯交所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 容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關立高控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本公告的資 料共同及個別地承擔全部責任。董事在作出一切合理查詢後確認，就彼等所深 知及確 ...

Financial Performance - For the six months ended June 30, 2023, total revenue was HKD 485,442,000, an increase of 7.2% compared to HKD 450,691,000 for the same period in 2022[4] - Gross profit for the six months ended June 30, 2023, was HKD 26,783,000, representing a 14.8% increase from HKD 23,478,000 in the previous year[4] - The net profit attributable to owners for the six months ended June 30, 2023, was HKD 7,715,000, down 18.7% from HKD 9,482,000 in the same period of 2022[4] - Basic earnings per share for the six months ended June 30, 2023, was HKD 1.87, a decrease of 21.1% compared to HKD 2.37 for the same period in 2022[4] - The company reported a profit before tax of HKD 9,016,000 for the six months ended June 30, 2023, down from HKD 10,621,000 in the same period of 2022, indicating a slight decline in profitability[21] - The after-tax net profit declined by approximately 18.6% from HKD 9.5 million to HKD 7.7 million, attributed to reduced government subsidies and increased administrative expenses[52] Assets and Liabilities - As of June 30, 2023, total assets amounted to HKD 231,221,000, slightly up from HKD 228,601,000 at the end of 2022[6] - The total assets as of June 30, 2023, amounted to HKD 318,184,000, while total liabilities were HKD 223,247,000, resulting in a net asset position[23] - The total assets as of June 30, 2023, amounted to HKD 321,981,000, with total liabilities at HKD 242,672,000, resulting in a net asset value of HKD 79,309,000[25] - Bank and other borrowings decreased to HKD 45,661,000 as of June 30, 2023, from HKD 58,508,000 as of December 31, 2022, a decline of approximately 22%[40] - The debt-to-equity ratio as of June 30, 2023, was 23.9%, significantly improved from 76.5% on December 31, 2022[58] Cash Flow - For the six months ended June 30, 2023, the net cash generated from operating activities was HKD 28,899,000, compared to a net cash used of HKD 14,011,000 in the same period of 2022, representing a significant improvement[9] - The net cash used in investing activities for the six months ended June 30, 2023, was HKD 2,012,000, a decrease from HKD 29,015,000 in the same period of 2022, indicating improved cash management[9] - The net cash used in financing activities for the six months ended June 30, 2023, was HKD 3,245,000, compared to a net cash generated of HKD 19,379,000 in the same period of 2022, showing a shift in financing strategy[9] - Cash and cash equivalents increased to HKD 44,726,000 as of June 30, 2023, compared to HKD 21,084,000 at the end of 2022[6] Shareholder Activities - The company completed a placement of 80,000,000 shares at a price of HKD 0.1 per share, raising approximately HKD 7,910,000 in net proceeds[8] - The company issued exchangeable bonds amounting to HKD 20 million, with an initial exchange price of HKD 400 per share, representing a premium of 13.4% over the net asset value[43] - A share consolidation was approved, merging every 20 existing shares into one share with a par value of HKD 0.2, effective from August 1, 2023[50] - The company completed a placement of 80,000,000 shares at a price of HKD 0.1 per share, resulting in net proceeds of approximately HKD 7.91 million[78] Operational Insights - The company plans to continue exploring market expansion opportunities and new product development to drive future growth[3] - The company continues to focus on expanding its environmental hygiene services, which include cleaning, pest management, waste management, and gardening services, to enhance market presence[20] - The group aims to secure more tender contracts from currently untapped Hong Kong government departments and private entities, leveraging its substantial resources[55] - The group plans to enhance brand awareness and competitiveness through strengthening its sales and marketing teams in the coming years[57] - The group has a positive outlook on the environmental hygiene services industry, driven by increasing public awareness of hygiene and health[57] Employee and Administrative Costs - Employee costs totaled HKD 392,914,000 for the six months ended June 30, 2023, up from HKD 353,623,000 in the previous year, representing an increase of about 11.1%[27] - The company reported a decrease in administrative expenses to HKD 17,707,000 for the six months ended June 30, 2023, down from HKD 15,869,000 in the previous year[4] - Administrative expenses increased by approximately 11.6% from HKD 15.9 million to HKD 17.7 million, mainly due to a rise in professional fees related to the issuance of exchangeable bonds and new shares[51] Corporate Governance - The company has adopted a code of conduct for directors' securities transactions, adhering to the standards set forth in the GEM Listing Rules[85] - The company has complied with all applicable corporate governance code provisions during the reporting period[86] - The Audit Committee, established on June 24, 2017, is responsible for reviewing the financial statements and internal control systems[89] - The Remuneration Committee, also established on June 24, 2017, provides recommendations on the remuneration policies for all directors and senior management[90] - The Nomination Committee, established on June 24, 2017, is responsible for providing recommendations on the appointment of directors[92]

Lapco Holdings Limited 立 高 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8472） 中 期 業 績 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為較於聯交所上市的其他公司可能帶有較高投資風險的中小 型公司提供一個上市的市場。有意投資者應了解投資於該等公司的潛在風險， 並應經過審慎周詳考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣的證券可能會承受較於主 板買賣的證券為高的市場波動風險，同時亦無法保證在GEM買賣的證券會有 高流通量的市場。 香港交易及結算所有限公司及聯交所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 容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關立高控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本公告的資 料共同及個別地承擔全部責任。董事在作出一切合理查詢後確認，就彼等所深 ...

Financial Performance - Revenue for the first quarter of 2023 reached HKD 250,487,000, representing a 27% increase from HKD 197,261,000 in the same period of 2022[7] - Gross profit for the first quarter of 2023 was HKD 13,464,000, up 33% from HKD 10,091,000 year-on-year[7] - The company reported a profit attributable to owners of HKD 4,401,000 for the first quarter of 2023, an increase of 45% compared to HKD 3,041,000 in the previous year[7] - Earnings per share for the first quarter of 2023 were HKD 1.10, compared to HKD 0.76 in the same quarter of 2022, reflecting a 45% increase[7] - The group's revenue increased by approximately 27.0% from about HKD 197.3 million for the three months ended March 31, 2022, to about HKD 250.5 million for the three months ended March 31, 2023[29] - Gross profit rose by approximately 33.4% from about HKD 10.1 million in the previous year to about HKD 13.5 million in the current year, with gross margins of approximately 5.1% and 5.4% respectively[29] - The group recorded a net profit of approximately HKD 4.4 million for the three months ended March 31, 2023, compared to HKD 3.0 million for the same period in 2022, attributed to new contract approvals and improved operational efficiency[30] - The total comprehensive income for the first quarter of 2023 was HKD 4,401,000, compared to HKD 3,041,000 in the same quarter of 2022[9] Expenses and Costs - Administrative expenses increased to HKD 8,873,000 in the first quarter of 2023 from HKD 7,324,000 in the same period last year[7] - Administrative expenses increased from approximately HKD 7.3 million to HKD 8.9 million, primarily due to higher professional fees and increased salaries and bonuses[29] - The financing costs rose by approximately 3.6% from HKD 0.9 million to HKD 1.0 million, mainly due to increased interest expenses on financing leases for purchased vehicles[30] Business Segments - The cleaning services segment generated revenue of HKD 213,570,000, accounting for 85% of total revenue, while pest management services contributed HKD 7,804,000[20] - The company continues to focus on expanding its environmental hygiene services, including cleaning, pest management, waste management, and gardening services[11] - There were no inter-segment revenues during the reporting period, indicating a clear focus on external service provision[20] Future Plans and Outlook - The group plans to invest in vehicles, cleaning machines, and equipment to expand its business and enhance its capacity to undertake more projects[32] - The company aims to secure more tender contracts from government departments and private entities that currently do not use its services, leveraging its substantial resources[35] - The outlook for the environmental hygiene services industry is optimistic, driven by increased public awareness of hygiene and health, as well as rising service demand due to ongoing pandemic responses[35] Shareholding and Governance - As of March 31, 2023, major shareholders include Mr. Zhang Junwen with a controlled corporation interest of 119,600,000 shares, representing approximately 29.90% of the total shares[41] - Another major shareholder, Mr. Tan Guichu, holds 21,000,000 shares, which is about 5.25% of the total shares[41] - The company has established an Audit Committee, which includes three independent non-executive directors, responsible for reviewing financial reports and internal control systems[44] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM listing rules[43] - The company has a Compensation Committee that oversees the remuneration policies for all directors and senior management[46] - The Nomination Committee is responsible for recommending appointments and succession planning for directors[47] - The company has not disclosed any violations of the securities transaction code by directors since its listing date[43] - The company has not identified any other individuals with significant shareholdings apart from those disclosed[41] Other Information - The group recorded other income of approximately HKD 1.4 million, down from HKD 1.8 million in the previous year, mainly due to government subsidies for phasing out diesel commercial vehicles[29] - The group did not declare or propose any dividends for the three months ended March 31, 2023, consistent with the previous year[25] - The report will be available on the GEM website and the company's website for at least seven days from the publication date[49] - The report is dated May 12, 2023, and includes the names of the current board members[49]

Lapco Holdings Limited 立 高 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8472） 第 一 季 度 業 績 截 至 二 零 二 三 年 三 月 三 十 一 日 止 三 個 月 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為較於聯交所上市的其他公司可能帶有較高投資風險的中小 型公司提供一個上市的市場。有意投資者應了解投資於該等公司的潛在風險， 並應經過審慎周詳考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣的證券可能會承受較於主 板買賣的證券為高的市場波動風險，同時亦無法保證在GEM買賣的證券會有 高流通量的市場。 香港交易及結算所有限公司及聯交所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 容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關立高控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本公告的資 料共同及個別地承擔全部責任。董事在作出一切合理查詢後確認， ...

Financial Performance - The group recorded an increase in revenue during the reporting period, driven by heightened demand for cleaning services due to COVID-19 pandemic measures[8]. - The company's revenue increased by approximately 26.2% from HKD 765.9 million in the year ended December 31, 2021, to about HKD 966.3 million in the year ended December 31, 2022[18]. - The service costs rose by approximately 27.3% to about HKD 918.5 million, representing about 95.0% of the total revenue for the year ended December 31, 2022[25]. - The gross profit increased by approximately 7.3% to about HKD 47.8 million, with a gross profit margin of 5.0%, down from 5.8% in the previous year[27][28]. - The company recorded other income of approximately HKD 10.5 million, a significant increase from HKD 0.5 million in the previous year, primarily due to government subsidies related to COVID-19[29]. - Profit attributable to shareholders for the reporting period was approximately HKD 20.3 million, significantly up from HKD 5.4 million for the year ended December 31, 2021[32]. Operational Challenges - The company faced challenges such as labor shortages and high operating costs, particularly in insurance, labor, and vehicle expenses[8]. - The company aims to enhance operational efficiency and control costs while improving internal monitoring and financial conditions[9]. Business Growth and Opportunities - The group successfully secured additional service contracts, particularly from the Hong Kong government, contributing to business growth during the reporting period[8]. - The group is actively exploring business opportunities in mainland China and Southeast Asia, having obtained the necessary qualifications to enter the mainland market[11]. - The company aims to secure more tender contracts from government departments and private institutions that currently do not use its services[15]. - The company plans to enhance its capabilities by investing in vehicles, cleaning machines, and equipment to expand its business and take on more projects[14]. Industry Outlook - The company anticipates a recovery in the global and local economy post-COVID-19, remaining vigilant to the pandemic's impact on operations and finances[11]. - The group is optimistic about the prospects of the environmental hygiene services industry due to increasing public awareness of hygiene and health[11]. - The company remains optimistic about the future of the environmental hygiene services industry due to increasing public awareness and demand for services[17]. Employee and Workforce - The workforce increased to 3,853 employees as of December 31, 2022, compared to 2,231 employees in the previous year[20]. - The employee composition for 2022 shows a total of 3,853 employees, with 44% male and 56% female, compared to 46% male and 54% female in 2021[194]. - The employee turnover rate is reported at 32% for males and 31% for females, indicating a need for improved retention strategies[199]. - The average training hours for employees were 20 hours for directors, 15 hours for management, and 2 hours for regular employees[163]. Corporate Governance - The board of directors consists of executive and independent non-executive members, with no significant relationships among them[55]. - The company has established a remuneration committee to review the remuneration policy based on the group's operating performance and market practices[89]. - The audit committee consists of three independent non-executive directors, ensuring independent oversight of financial reporting and risk management[113]. - The company has maintained effective corporate governance policies, which have been reviewed and deemed effective by the board[107]. - The company has complied with all applicable corporate governance codes during the reporting period[100]. Environmental, Social, and Governance (ESG) Initiatives - The company reported its environmental, social, and governance (ESG) performance for the fiscal year ending December 31, 2022, focusing on sustainability initiatives[142]. - The company aims to integrate environmental practices into all business services to maintain social sustainability[145]. - The company has established an ESG working group to develop policies and actions, ensuring compliance with relevant laws and regulations[151]. - The company is committed to improving workplace health and safety through training and adherence to safety regulations[147]. - The company has implemented a risk management framework to monitor risks associated with achieving strategic goals, including ESG-related risks[152]. - The company emphasizes transparency and accuracy in reporting ESG performance, adhering to the GEM listing rules[143]. - The company has committed to ISO 14001 standards to minimize environmental pollution in daily operations[147]. Environmental Performance - The company achieved a 3% reduction in absolute greenhouse gas emissions compared to the previous fiscal year[163]. - Waste paper generated decreased by 9% year-on-year[163]. - Electricity consumption and density both reduced by 8%[163]. - Diesel consumption decreased by 3%[163]. - The company’s fleet consists of over 90% EU5 standard vehicles, significantly reducing sulfur dioxide emissions by 80%[168]. - Nitrogen oxides (NOx) emissions decreased from 28,529 kg in the previous year to 26,496 kg[168]. - Sulfur oxides (SOx) emissions slightly decreased from 44 kg to 43 kg[168]. - Particulate matter (PM) emissions reduced from 2,172 kg to 2,123 kg[168]. - The company continues to implement measures to reduce vehicle emissions through efficient delivery planning[169]. - The company aims to limit and reduce greenhouse gas emissions intensity to the 2022 level by 2030, focusing on energy efficiency and carbon reduction measures[172]. - The company is committed to addressing climate change risks by incorporating climate risk factors into its business strategy planning[186].