Financial Performance - The company's revenue for the fiscal year 2018 decreased by approximately 6.7%, from about HKD 275,813,000 in 2017 to approximately HKD 257,413,000 in 2018[22]. - The net profit for 2018 was approximately HKD 5,337,000, representing a decrease of about 43.9% compared to the previous year[22]. - The decline in revenue was attributed to fewer engineering project contracts obtained and initiated in 2018 compared to 2017, as well as a more aggressive pricing strategy adopted to maintain competitiveness[22]. - The gross profit margin for the year ended December 31, 2018, was approximately 9.5%, down from approximately 15.6% for the year ended December 31, 2017, primarily due to increased overall construction costs and intensified market competition[37]. - The gross profit for the year ended December 31, 2018, was approximately HKD 24.4 million, a decrease of about 43.6% compared to approximately HKD 43.1 million for the year ended December 31, 2017[37]. - The total cash and bank balances as of December 31, 2018, were approximately HKD 82,347,000, down from approximately HKD 109,386,000 as of December 31, 2017[45]. - The total borrowings as of December 31, 2018, were approximately HKD 2,416,000, a decrease from approximately HKD 10,923,000 as of December 31, 2017[45]. - The debt-to-equity ratio as of December 31, 2018, was approximately 1.3%, down from about 5.9% as of December 31, 2017, due to the repayment of bank loans[47]. - The total employee cost for the year ended December 31, 2018, was approximately HKD 30,616,000, down from approximately HKD 40,589,000 for the year ended December 31, 2017[53]. - Net profit attributable to the owners decreased by approximately HKD 4,180,000 or about 43.9% to approximately HKD 5,337,000 for the year ended December 31, 2018, with a net profit margin of about 2.1% compared to 3.5% for the previous year[43]. Business Strategy and Expansion - The company plans to expand its construction and decoration engineering services in Cambodia, capitalizing on the growth of the real estate sector in that region[23]. - There is an expectation to expand property management services due to increasing demand driven by the rising supply of residential and commercial buildings in Hong Kong[23]. - The company aims to explore and expand its business opportunities both locally and overseas in 2019, focusing on long-term business strategies[23]. - The group is considering expanding its business beyond Hong Kong to enhance future development and solidify its revenue base[32]. - The group plans to diversify its operations by exploring opportunities in Cambodia's property sector, leveraging its experience in Hong Kong[35]. Corporate Governance - The company has adopted and complied with all applicable corporate governance code provisions and listing rules for the year ended December 31, 2018[72]. - The board consists of seven members, including three executive directors and four independent non-executive directors[75]. - The company has implemented a board diversity policy, considering factors such as gender, age, cultural background, and professional experience[77]. - The roles of the chairman and CEO are separated to comply with corporate governance codes[84]. - The board is responsible for developing and reviewing corporate governance policies and ensuring compliance with legal and regulatory requirements[90]. - The company has established three board committees: audit committee, nomination committee, and remuneration committee[74]. - The board will review and recommend any amendments to corporate governance policies as necessary to ensure ongoing compliance[72]. - The company has established a shareholder communication policy to ensure shareholders receive timely and equal information regarding significant developments and risk profiles[121]. Environmental and Social Responsibility - The group has maintained certifications for quality management (ISO 9001:2015) and environmental management (ISO 14001:2015), reflecting its commitment to quality and sustainability[130]. - The company aims to continue environmental protection efforts and implement more effective measures to reduce pollution in the future[176]. - The company has established five waste reduction goals, including reusing inert materials on-site and recycling all metal waste[137]. - The company has implemented measures to reduce air pollution, including using fuel with a sulfur content not exceeding 0.005%[142]. - The company has not reported any non-compliance with environmental laws and regulations for the year ending December 31, 2018[139]. - The company has a zero-tolerance policy towards forced labor and child labor, ensuring strict controls during the recruitment process[153]. - The company has made charitable donations and participated in recovery efforts following Typhoon Mangkhut during the fiscal year ending December 31, 2018[131]. Risk Management - The group faces significant risks due to reliance on public sector slope engineering projects, which could adversely affect its financial performance if contracts are not secured[189]. - The board of directors is responsible for continuously monitoring the effectiveness of the group's risk management and internal control systems[115]. - The audit committee reported no significant issues affecting the group's financial, operational, compliance, control, and risk management[115]. - The company has engaged CT Partners Consultants Limited to review the effectiveness of its risk management and internal control systems[115]. - The board believes that the internal control and risk management systems are effective and appropriate based on the conclusions and recommendations from CT Partners[118]. Employee and Director Management - The company has a dedicated website to provide the latest information on business operations, financial data, and corporate governance practices[121]. - The company provided ongoing training and development for directors to ensure they can fulfill their duties effectively[96]. - The company recorded a total of 2,658 hours of training for safety-related site training during the year ended December 31, 2018[159]. - The company lost a total of 70 workdays due to work-related injuries during the year ended December 31, 2018[157]. - The executive directors have service contracts with the company for a term of three years, with a notice period of at least six months for termination[200]. - Independent non-executive directors have appointment letters for a term of one year, with a notice period of at least one month for termination[200].
致浩达控股(01707) - 2018 - 年度财报