Financial Performance - The company reported revenue of approximately HKD 50,506,000 for the year ended December 31, 2018, a decrease of about 37.4% from HKD 80,719,000 in the previous year[9]. - The attributable loss for the year was approximately HKD 1,371,738,000, compared to a loss of HKD 193,233,000 in 2017, primarily due to goodwill impairment of HKD 432,403,000 and intangible asset impairment of HKD 541,453,000[9]. - The operating loss for the year was HKD 1,434,601,000, significantly higher than the loss of HKD 124,618,000 in the previous year[198]. - The total comprehensive loss for the year was HKD 1,380,649,000, compared to HKD 186,384,000 in 2017, highlighting a drastic increase in overall losses[198]. - The basic and diluted loss per share for the year was HKD 59.47, compared to HKD 8.45 in the previous year, indicating a worsening financial position[198]. - The company incurred financing costs of HKD 99,123,000, up from HKD 88,689,000 in the previous year, indicating rising financial expenses[198]. - The company reported other income of HKD 7,865,000, which was significantly higher than HKD 2,202,000 in 2017, suggesting some improvement in non-operating income[198]. Asset and Liability Management - Total assets decreased to approximately HKD 281,240,000 as of December 31, 2018, down from HKD 1,329,455,000 in 2017, mainly due to reductions in construction in progress and accounts receivable[16]. - The company held intangible assets of approximately HKD 101,000,000 as of December 31, 2018, a significant decrease from HKD 696,937,000 in 2017, reflecting the impairment of the energy-saving solutions business[16]. - Total liabilities increased to approximately HKD 1,162,231,000 as of December 31, 2018, compared to HKD 827,636,000 in 2017, primarily due to convertible bonds and promissory notes[17]. - The current liabilities exceeded current assets by approximately HKD 1,076,923,000 as of December 31, 2018, indicating liquidity challenges[20]. - The debt-to-capital ratio was 561% as of December 31, 2018, compared to 53% in 2017, reflecting increased leverage[21]. - As of December 31, 2018, the group recorded net current liabilities of approximately HKD 1,076,923,000 and net liabilities of approximately HKD 880,991,000[187]. Business Operations and Strategy - The company is actively seeking opportunities in the loan financing and financial investment sectors but has not yet identified suitable prospects[15]. - The company plans to implement a restructuring plan aimed at settling all liabilities related to convertible bonds and promissory notes issued in previous years, which is expected to significantly improve its financial condition[13]. - The overall market response for the energy-saving business has been poor due to economic slowdown, intense competition, and reduced government subsidies[13]. - The group plans to explore various funding sources, including project financing and debt financing, to support business development[29]. - The company aims to enhance its energy-saving solutions and explore the feasibility of developing self-control or energy-saving system platforms[29]. Risk Management - The group faces operational risks due to internal processes and external events, which cannot be completely eliminated[42]. - Market risks include reliance on government policies supporting the energy-saving industry, which may change and adversely affect the business[44]. - Financial risks include market, liquidity, and credit risks that could significantly affect the group's financial condition and operating results[47]. - The company has established risk management procedures to address all significant risks related to its business[138]. - The board is responsible for evaluating and determining the nature and extent of risks the group is willing to accept to achieve strategic objectives[138]. Corporate Governance - The board of directors consists of six members, including three executive directors and three independent non-executive directors[104]. - The company has adopted the standard code of conduct for securities trading by directors, and all directors confirmed compliance during the year[103]. - The company has complied with corporate governance codes, with some deviations noted regarding the roles of the chairman and CEO[99]. - The Nomination Committee held four meetings during the year to review the current structure, size, composition, and diversity of the board, and to recommend the appointment and reappointment of directors[117]. - The Remuneration Committee held four meetings this year to review the remuneration scheme for the board and propose new remuneration plans for newly appointed directors[123]. Environmental and Social Responsibility - The company has adopted an environmental protection policy, focusing on reducing energy consumption through practices like double-sided printing and promoting the use of eco-friendly paper[49]. - Energy consumption decreased by 12% from 21,725 kWh in 2017 to 19,054 kWh in 2018[159]. - Greenhouse gas emissions reduced by 25% from 32 tons CO2 equivalent in 2017 to 24 tons in 2018[160]. - The company aims to balance business goals with environmental management and social responsibility[154]. - The group encourages work-life balance and organizes annual events to enhance employee satisfaction[169].
信能低碳(00145) - 2018 - 年度财报