CHINA STATE CON(03311)2024-04-29 08:51Financial Performance - The company's revenue for the year reached HKD 113,734,013, an increase of 11.5% compared to HKD 101,975,265 in the previous year[12]. - The profit attributable to shareholders was HKD 9,164,045, representing a growth of 15.1% from HKD 7,956,876 in the prior year[12]. - The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the year was HKD 16,027,295, up 11.6% from HKD 14,362,945 in the previous year[12]. - The company reported a net profit margin of 8.1%, a decrease from 7.8% in the previous year[12]. - The earnings per share (EPS) increased to HKD 1.82, compared to HKD 1.58 in the previous year, reflecting a growth of 15.2%[12]. - The company declared a final dividend of HKD 0.56 per share, up from HKD 0.48 per share in the previous year[12]. - The current ratio improved to 1.28, compared to 1.25 in the previous year, indicating better short-term financial health[12]. - The group's audited revenue for the year ended December 31, 2023, was HKD 113.734 billion, with an operating profit of HKD 14.986 billion[29]. - Shareholder profit increased by 15.2% to HKD 9.164 billion, with basic earnings per share at HKD 1.82 and net asset value per share at HKD 14.74[29]. - Investment income, other income, and net other gains/losses decreased by 59.0% to HKD 647 million, primarily due to reduced fair value gains from investment properties and no confirmed gains from the sale of investments during the year[46]. Contracts and Projects - The total uncompleted contracts amounted to HKD 350.05 billion, an increase from HKD 294.53 billion at the end of the previous year[12]. - The group undertook 121 new projects during the year, with a total contract value of approximately HKD 188.02 billion[28]. - New contracts signed in Hong Kong reached HKD 70.921 billion, a significant increase of 58.0% year-on-year[30]. - New contracts in Macau amounted to HKD 9.541 billion, maintaining the market leadership position[30]. - New contracts in mainland China totaled HKD 96.055 billion, reflecting a year-on-year growth of 4.5%[31]. - The total contract amount attributable to the company reached HKD 571.94 billion[57]. - As of December 31, 2023, the total contract amount for ongoing projects is HKD 571,944 million, with an uncompleted contract amount of HKD 350,051 million[60]. - The company has 338 ongoing projects, including 221 in mainland China, 78 in Hong Kong, and 39 in Macau[60]. - Major completed projects include the reconstruction of Kwong Wah Hospital and various residential developments in Hong Kong[38]. - The company is involved in significant civil engineering projects, such as the Tseung Kwan O to Lam Tin Tunnel and the construction of the West Kowloon Terminus for the Express Rail Link[38]. Technological Innovation and R&D - The company invested HKD 486 million in R&D, continuing to progress towards the goals set in the 14th Five-Year Plan[37]. - The company plans to continue focusing on technological innovation and digital transformation as key strategic directions for future growth[40]. - The company was awarded 211 patents during the year, reflecting its strong technological capabilities and innovation[37]. - The group launched new photovoltaic curtain wall products, Light A and Mega Light A, and completed the first production line for photovoltaic curtain walls[32]. - The group’s modular integrated construction technology was showcased at the 20th China International Housing Industry and Building Industrialization Products and Equipment Expo[20]. Awards and Recognition - The company received multiple awards for its projects, including 13 gold awards and 10 silver awards at the 2022 Construction Industry Safety Award Ceremony in Macau[13]. - The group was recognized as one of the top 40 companies in China for ESG influence by Fortune magazine due to its outstanding performance in the ESG field[18]. - The group was selected as a constituent of the Hang Seng Corporate Sustainability Benchmark Index for its exceptional performance in sustainable development[22]. - The group received 15 awards at the 29th Public Works Site Award Ceremony, becoming the company with the most awards in the industry for two consecutive sessions[24]. - The group was the only construction and engineering company included in the S&P Global Sustainable Development Yearbook 2023, receiving the title of "Best Progressing Company in the Industry"[21]. Corporate Governance and Management - Management emphasized the importance of investor relations, viewing it as a key area to enhance corporate governance and value creation, with significant support from the management team[91]. - The company has a strong commitment to corporate governance, adhering to the Hong Kong Stock Exchange's corporate governance code[108]. - The board of directors held six meetings during the year to review and approve the company's annual, interim, and quarterly performance[113]. - The chairman and CEO roles are clearly separated to ensure a balanced distribution of power and authority within the company[116]. - The company has implemented a sustainable development policy, including water resource management and climate change policies[113]. - The board consists of seven directors, with six male and one female, reflecting a gender diversity commitment[78]. Social Responsibility and Community Engagement - The group organized over 1,400 hours of volunteer service through the "Co-create Bright Teen" program, helping students from underprivileged backgrounds[86]. - The group completed home repairs for over 620 households under the "Thousand House Repairs" initiative, targeting low-income families[88]. - The group has established a volunteer service system that engaged over 4,700 volunteer instances, contributing more than 17,000 hours of service in 2023[87]. - The company actively engages in community support and social responsibility initiatives[78]. - The company has received the 2023 Hong Kong Volunteer Award for corporate volunteer hours[72]. Financial Instruments and Capital Management - The group issued bonds amounting to RMB 1.1 billion with a maturity of 3 years and a coupon rate of 2.88%, receiving AAA ratings and the highest G1 level green certification[22]. - The group actively utilized green financial instruments, securing a USD 100 million sustainable development-linked loan in Hong Kong[35]. - The group completed a public offering that raised approximately RMB 3.067 billion, which was used for debt repayment and general working capital[155]. - The group has issued corporate bonds of RMB 1 billion at a coupon rate of 2.88% for a term of 3 years on August 21, 2023[155]. - The group redeemed corporate bonds of RMB 2 billion at a coupon rate of 3.48% that were issued on July 30, 2020[156]. Risk Management - The company has a robust risk management and internal control system, effectively managing strategic, financial, operational, compliance, and sustainability risks[137]. - The risk management team, led by the CEO, continuously identifies and enhances the company's risk management practices, fostering a culture of comprehensive risk awareness[138]. - The audit department conducts independent evaluations of the risk management and internal control systems, ensuring their adequacy and effectiveness across all major operational units[138]. - The company has established a detailed project risk rating system to identify and assess major operational risks, ensuring that operational risks remain within controllable limits[147]. - The company faces various risks, including construction risks, infrastructure investment risks, overseas business risks, and compliance risks, which are managed through a structured internal control framework[147].