Financial Performance - For the year ended December 31, 2022, the company's revenue was approximately HKD 1,601,800,000, a significant increase from HKD 780,000 in 2021[28]. - The company recorded a profit before tax of approximately HKD 547,900,000, compared to a loss of HKD 341,100,000 in the previous year[28]. - The profit attributable to the owners of the company for the year was approximately HKD 265,200,000, while the loss for the same period in 2021 was HKD 326,300,000[28]. - The property development segment generated revenue of approximately HKD 1,595,500,000, up from HKD 1,800,000 in 2021, with a profit of HKD 572,900,000 compared to a loss of HKD 126,900,000 in the previous year[29]. - The hotel business segment recorded revenue from franchise rights of HKD 4,400,000, down from HKD 5,700,000 in the same period of 2021[31]. - The segment loss for the year reached HKD 28,400,000, compared to a loss of HKD 17,700,000 in 2021, primarily due to depreciation of property, plant, and equipment, as well as financial costs[31]. Project Development - The company has three ongoing development projects located in Zhuhai, Chengdu, and Doumen, with the Doumen project having a total construction area of approximately 197,391 square meters[29][30]. - The Doumen project has achieved a sales contract amount of approximately 59.34% of its total saleable area as of December 31, 2022, with construction expected to be completed by June 2024[30]. - The group plans to accelerate the pre-sale of properties, involving a total saleable area of approximately 86,607 square meters, with expected sales revenue of approximately RMB 598.6 million in 2023[137]. - The group anticipates delivering completed properties to buyers, with an estimated amount of RMB 899.3 million to be recognized as revenue in 2023 from contract liabilities[137]. - As of December 31, 2022, the German City project achieved sales of 53.94% of its total saleable area, with construction expected to be completed by December 2023[172]. - The Fuyuan Junting project has realized sales of 99.34% and 45.37% for its first and second phases, respectively, with the first phase completed and delivered to buyers since May 2022[172]. - The company plans to accelerate property pre-sale progress to capitalize on market opportunities[173]. Financial Position - The current liquidity ratio is 0.70, down from 0.80 in 2021, indicating a decrease in short-term financial health[14]. - The group's non-current assets amounted to HKD 1,815,000,000 as of December 31, 2022, compared to HKD 1,806,000,000 a year earlier[150]. - Current assets decreased to HKD 1,515,800,000 as of December 31, 2022, from HKD 2,785,100,000 on December 31, 2021[150]. - Current liabilities were reduced to HKD 2,159,300,000 as of December 31, 2022, from HKD 3,471,000,000 a year prior[150]. - The group's total borrowings were HKD 1,476,700,000 as of December 31, 2022, down from HKD 1,882,700,000 on December 31, 2021[153]. - The total equity of the group increased to HKD 148,900,000 as of December 31, 2022, compared to a deficit of HKD 123,200,000 a year earlier[153]. - The group reported a significant improvement in financial condition, with a debt-to-equity ratio of approximately 991.4% as of December 31, 2022[154]. - The group had no significant capital commitments as of December 31, 2022, consistent with the previous year[155]. - Contingent liabilities were HKD 361,100,000 as of December 31, 2022, slightly down from HKD 365,000,000 a year earlier[157]. Governance and Compliance - The company has complied with the listing rules, ensuring that at least one member of the audit committee possesses appropriate professional qualifications or accounting or financial management expertise[89]. - The board confirmed that after reasonable inquiries, they are not aware of any events or conditions that may cast significant doubt on the company's ability to continue as a going concern[88]. - The company has adopted a zero-tolerance policy towards corruption, extortion, fraud, and money laundering, with established guidelines for handling conflicts of interest[104]. - The company has not established an internal audit department, as the board believes there is no immediate need based on the scale and complexity of the business[103]. - The company secretary has completed over 15 hours of professional training to ensure compliance with the listing rules[101]. - The board has reviewed and monitored the independence of independent non-executive directors as part of its governance practices[95]. - The executive committee held one meeting in the fiscal year 2022 to discuss operational matters, with all management decisions requiring board approval[100]. - The nomination committee will consider the diversity of the board and the qualifications of candidates when making recommendations for appointments[93]. Environmental and Social Responsibility - The company has implemented a climate change policy to manage related risks, recognizing the potential impact of extreme weather events on operations[17]. - There were no incidents of non-compliance with environmental laws and regulations during the year, particularly concerning air and greenhouse gas emissions[19]. - The total energy consumption for the year was 4,471,960 kWh, representing a 9% decrease from the previous year[197]. - The energy density was recorded at 2.8 kWh per HKD 1,000 in revenue[197]. - Total greenhouse gas emissions amounted to 2,343 tons of CO2 equivalent, with 95% of emissions coming from purchased electricity[199]. - Direct emissions from fuel combustion and natural gas accounted for 126 tons of CO2 equivalent[199]. - The company has established a climate policy to manage climate change-related risks and regularly reviews relevant data and resources[196]. - The governance framework ensures proper management of environmental, social, and governance performance[192]. - The board of directors is responsible for overseeing environmental, social, and governance risks and strategies[192]. - The company is committed to operating in an environmentally and socially responsible manner to create long-term value[192]. - The energy consumption in the hotel business segment was 3,990,000 kWh[196]. - The energy consumption in the property development segment was 209,269 kWh[196]. Strategic Outlook - The company anticipates a gradual recovery of the economy in Hong Kong and mainland China in 2023, supported by eased pandemic measures and reduced bank reserve requirements[167]. - The hotel business is expected to recover as economic conditions improve in the coming year[167]. - The company is actively seeking viable investment projects to maximize returns for shareholders[167]. - The management emphasizes the importance of effective communication with shareholders, particularly through annual general meetings[184]. - The management is actively negotiating with financial institutions for loan extensions and alternative financing options to support operational funding[137]. - The group is exploring new investment opportunities to generate additional income and returns[137].
富元国际集团(00542) - 2022 - 年度财报