Financial Performance - The Group's revenue decreased by approximately HK$46.5 million to approximately HK$100.9 million for the Financial Year 2019, compared to approximately HK$147.4 million for the Financial Year 2018[12]. - The Group recorded a net loss of approximately HK$24.7 million in the Financial Year 2019, compared to a net profit of HK$20.2 million in the Financial Year 2018[12]. - The Group's revenue for the Financial Year 2019 was approximately HK$100.9 million, representing a decrease of approximately 31.5% from approximately HK$147.4 million for the Financial Year 2018[24]. - The Group's gross profit decreased from approximately HK$51.7 million for the Financial Year 2018 to approximately HK$17.9 million for the Financial Year 2019, with a gross profit margin decline from approximately 35.1% to approximately 17.7%[25]. - Excluding non-recurring impairment losses, the Group's net loss for the Financial Year 2019 would be approximately HK$18.7 million[12]. - The decrease in revenue was attributed to the substantial completion of sizable projects in late 2018 and increased competition in the construction market[12]. - The decrease in revenue and gross profit was mainly due to the substantial completion of sizable projects in late 2018 and increased competition in the construction market[24][25]. Impairment and Losses - The Group recognized impairment losses of non-financial assets amounting to approximately HK$6.0 million due to the reported loss for the Financial Year 2019[12]. - The Group recognized approximately HK$6.4 million net impairment losses on financial assets and contract assets for the Financial Year 2019, compared to approximately HK$0.2 million for the Financial Year 2018[30]. - Impairment losses of non-financial assets amounting to approximately HK$6.0 million were recognized in profit or loss for the Financial Year 2019[30]. Market Outlook - The Group's management is optimistic about the prospects of the construction market and aims to expand operational scale to maximize returns to shareholders[14]. - The anticipated annual capital works expenditure by the Hong Kong Government is expected to reach HK$100 billion on average in the next few years, which may benefit the construction industry[23]. - The Directors remain cautiously optimistic about the construction industry in Hong Kong and Macau, expecting growth in private and public sector construction projects in the coming years[23]. - The construction industry in Hong Kong and Macau is facing a labor shortage, which is pushing up daily wages in the concrete demolition industry[45]. Operational Costs and Expenses - Administrative and other operating expenses increased by approximately HK$2.5 million (8.8%) to approximately HK$30.9 million for the Financial Year 2019, compared to HK$28.4 million for the Financial Year 2018[30]. - The prolonged need for maintaining the required site workforce and equipment due to project delays contributed to increased costs in 2019[25]. - Employee costs, including Directors' emoluments, were approximately HK$49.0 million for the Financial Year 2019, compared to HK$39.8 million for the Financial Year 2018, reflecting a significant increase[56]. Financial Position - As at 31 December 2019, the Group's current ratio was approximately 3.9, down from approximately 7.4 as at 31 December 2018[30]. - The Group had total assets of approximately HK$137.3 million, financed by total liabilities of approximately HK$34.2 million and shareholders' equity of approximately HK$103.1 million[30]. - As at 31 December 2019, the Group had cash and bank balances of approximately HK$17.9 million, down from approximately HK$26.5 million as at 31 December 2018[30]. - The gearing ratio as at 31 December 2019 was approximately 14.6%, compared to nil as at 31 December 2018[30]. - Capital expenditure during the Financial Year 2019 was approximately HK$16.7 million, compared to HK$6.8 million for the Financial Year 2018[30]. Employee and Management - The Group had over 160 full-time employees as of December 31, 2019, an increase from 109 full-time employees as of December 31, 2018[56]. - The Group has been operating in the concrete demolition industry in Hong Kong since 1985 and in Macau since 2006, establishing a strong market presence[21]. - The Group's services are primarily required in public and private sector construction projects, indicating a diverse customer base[22]. - The group has a strong management team with extensive industry experience, enhancing its strategic planning and operational efficiency[98][99][101][113][115]. Corporate Governance - The Company complied with the corporate governance code during the Financial Year 2019, except for deviations regarding the roles of chairman and chief executive officer[80]. - The Company has established an audit committee to oversee financial reporting and internal control systems[76]. - The Company has made annual declarations from covenantors regarding compliance with the non-competition deed[85]. - The Board consists of six Directors, including two executive Directors, one non-executive Director, and three independent non-executive Directors, ensuring a strong independent element[152]. - The Board is responsible for formulating the Group's overall strategies, setting management targets, and supervising management performance[147]. - The company has a balanced composition of Directors with appropriate skills and experience for its business operations[155]. - The Board held three meetings and one annual general meeting during the Financial Year 2019, with all Directors attending all meetings[174]. Audit and Compliance - The audit committee reviewed the consolidated financial statements for the Financial Year 2019 and found them compliant with applicable accounting standards[77]. - The Audit Committee confirmed that the financial report complies with all applicable standards and regulations[188]. - The Audit Committee consists of three independent non-executive directors, with Mr. Chow Chun To serving as the chairman[191]. - The Audit Committee has properly discharged its duties and responsibilities during the Financial Year 2019[189]. Dividends and Shareholder Relations - The Company did not recommend payment of final dividends to shareholders for the Financial Year 2019[91]. - The board does not recommend the payment of a final dividend for the fiscal year 2019[96].
景联集团(01751) - 2019 - 年度财报