Financial Performance - The group's revenue for 2020 was HKD 7,628,000,000, with a profit attributable to shareholders of HKD 441,000,000, representing a 48% increase compared to 2019[6]. - The equity increased by 34% to HKD 1.27 per share, with total equity amounting to HKD 1,581,000,000[6]. - The group's revenue for the fiscal year 2020 increased by 0.8% to HKD 7,628,000,000, while profit rose by 48% to HKD 440,000,000[42]. - The total revenue of the four professional subsidiaries in 2020 was HKD 962 million, a decrease of HKD 198 million compared to the previous year, but they turned a profit exceeding expectations[22]. - The gross profit margin decreased from 9.7% to 9% due to intense market competition, impacting the profitability of new projects[42]. - The group incurred a loss of approximately HKD 25 million from stock investments, while earning HKD 13 million from short-term bonds[32]. - The company expects a significant increase in revenue from ongoing projects, which will continue into 2022, despite a decrease in gross margin[33]. Engineering Contracts and Projects - The group secured new engineering contracts worth HKD 13.1 billion, with an outstanding contract value of HKD 26 billion[10]. - The civil engineering segment generated revenue of HKD 4.6 billion, a 21% increase from 2019, while the building construction segment saw a 31% decrease to HKD 2.4 billion[13][18]. - The group secured civil engineering projects worth HKD 2,500,000,000 and building construction projects worth HKD 10,600,000,000 since the last annual report, with the largest project being a HKD 9,000,000,000 contract for the expansion of the United Christian Hospital[43]. - The total uncompleted projects increased from HKD 19,000,000,000 to HKD 26,000,000,000, equivalent to approximately three years of revenue[43]. - The group is actively bidding for government and airport authority projects, with expectations for new civil engineering projects to maintain revenue levels[13][19]. - Approximately one-third of new engineering projects were awarded based on reasonable pricing and proposals rather than the lowest bid[17]. Future Outlook - The group anticipates that building construction revenue will double in 2021, potentially exceeding HKD 9 billion, with total revenue possibly reaching HKD 10 billion[19]. - The domestic environmental infrastructure projects generated a profit of HKD 30 million in 2020, with expectations to exceed HKD 100 million by 2024 or 2025[24]. - The Wuxi wastewater treatment plant is projected to achieve a profit of over RMB 10 million in 2021, with cash flow nearing RMB 20 million[25]. - The company plans to increase the steam supply capacity in the Yumen project to over 140 tons per hour by the end of this year[30]. Employee and Management Information - The number of employees increased from 2,374 in 2019 to 2,922 in 2020 due to a significant increase in engineering projects[23]. - The total salary for 2,922 employees was approximately HKD 1,192,000,000 for the fiscal year ending December 31, 2020[45]. - The company has accumulated over 20 years of experience in civil engineering operations, indicating strong industry expertise[67]. Corporate Governance - The board consists of eight members, including two executive directors, two non-executive directors, and four independent non-executive directors[134]. - The company has complied with listing rules requiring at least three independent non-executive directors, with one possessing accounting or financial management expertise[135]. - The company has maintained compliance with the corporate governance code as per the listing rules, except for the separation of roles between the chairman and CEO[133]. - The board is responsible for protecting and enhancing long-term shareholder value through effective leadership and oversight[142]. - The company has implemented various policies and procedures to ensure good corporate governance and high standards of business conduct[144]. Risk Management - The group’s major risks and uncertainties are described in the annual report, highlighting the need for strategic risk management[78]. - The board is responsible for maintaining an effective risk management and internal control system to protect the company's assets and shareholders' interests[188]. - The internal audit team conducted a systematic review of the group's risk management and internal control systems, providing reasonable assurance of their effectiveness[189]. - The audit committee is authorized to review and assess the effectiveness of the risk management and internal control systems established by management[188]. Shareholder Information - The proposed final dividend for the year ended December 31, 2020, is HKD 0.07 per ordinary share, subject to shareholder approval[73]. - As of December 31, 2020, the company had distributable reserves amounting to HKD 1,291,000[82]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting to address specific matters[198]. - The company has established a shareholder communication policy to ensure effective dialogue with shareholders, including the presence of external auditors at annual meetings[200]. Awards and Recognition - The group has achieved certifications according to international standards, including ISO 9001:2015, ISO 45001:2018, and ISO 14001:2015[192]. - The group received multiple awards in the past year, including two Silver Awards and three Excellence Awards in environmental management[193]. - The group has been recognized for its safety management, winning several awards including the Platinum Award for Outstanding Safety and Health[195]. - The group encourages all employees and subcontractors to strive for excellence in quality management and safety practices[195].
利基控股(00240) - 2020 - 年度财报