Financial Performance - The company's revenue increased by approximately 38.0% from about HKD 257.4 million in 2018 to approximately HKD 355.3 million in 2019, with around HKD 2 million coming from property-related services introduced in August 2019[22]. - Despite the revenue growth, the company recorded a net loss of approximately HKD 12.5 million in 2019, compared to a net profit of approximately HKD 5.3 million in 2018, primarily due to a significant decline in gross profit and increased administrative expenses[22]. - Total revenue for construction and engineering services reached approximately HKD 353.3 million, an increase of about 37.3% compared to last year's revenue of approximately HKD 257.4 million[29]. - The total revenue of the group increased by approximately HKD 97.9 million or about 38.0% to approximately HKD 355.3 million for the year ended December 31, 2019, compared to approximately HKD 257.4 million for the year ended December 31, 2018[39]. - Revenue from construction and engineering services rose significantly by approximately HKD 95.9 million or about 37.3% to approximately HKD 353.3 million for the year ended December 31, 2019[40]. - The gross profit for the group decreased by approximately HKD 1.35 million or about 55.4% to approximately HKD 10.9 million for the year ended December 31, 2019, with a gross profit margin of approximately 3.1%[42]. - The gross profit from construction and engineering services was approximately HKD 10.5 million, a decrease of about 57.0% compared to approximately HKD 24.4 million for the year ended December 31, 2018[45]. - Other income increased to approximately HKD 5.2 million for the year ended December 31, 2019, compared to approximately HKD 4.2 million for the year ended December 31, 2018[47]. - Administrative expenses increased by approximately 30.2% to about HKD 29.4 million for the year ended December 31, 2019, primarily due to business expansion and increased employee costs[48]. - The net loss attributable to equity holders was approximately HKD 12.5 million for the year ended December 31, 2019, compared to a profit of approximately HKD 5.3 million for the year ended December 31, 2018[52]. Business Expansion and Strategy - The company has expanded its business into property-related services to diversify its revenue base and provide stable cash flow[22]. - The company established a subsidiary in Cambodia to expand construction and decoration engineering services, leveraging its experience in the Hong Kong construction industry[23]. - The company anticipates a challenging outlook for its construction and engineering services in the coming years and is actively exploring other opportunities for long-term development[22]. - The company plans to continue reviewing its operations and business strategies to identify or seek new business opportunities to strengthen its revenue base[23]. - The company has expanded its business into property-related services, anticipating increased demand due to rising property supply in Hong Kong[33]. - The company established a wholly-owned subsidiary in Cambodia in February 2019 to explore business opportunities in the construction and decoration engineering sector[37]. - The net proceeds from the placement of new shares in June 2019 amounted to approximately HKD 88.7 million, which the company is seeking to invest in potential opportunities[37]. - The company plans to adopt an active pricing strategy to maintain competitiveness in the increasingly competitive slope engineering sector[29]. - The company aims to diversify its revenue base and enhance long-term development by seeking suitable development opportunities beyond the Hong Kong market[36]. Environmental Sustainability - The company is committed to environmental sustainability and has implemented environmental management plans in its operations[67]. - The company recognizes the importance of environmental protection, achieving certification in environmental management (ISO 14001:2015)[172]. - The company successfully renewed its ISO 9001:2015 and ISO 14001:2015 certifications, indicating a commitment to quality and environmental management[175]. - The company reported a reduction in nitrogen oxides emissions from 245,432.65 grams in 2018 to 222,678.87 grams in 2019, representing a decrease of approximately 9.2%[190]. - Sulfur oxides emissions increased from 1,264.72 grams in 2018 to 1,730.50 grams in 2019, showing an increase of about 36.8%[190]. - The company achieved a reduction in particulate matter emissions from 19,728.55 grams in 2018 to 16,862.19 grams in 2019, a decrease of approximately 14.2%[190]. - Greenhouse gas emissions from vehicle usage increased from 203,646.30 kg in 2018 to 278,383.55 kg in 2019, an increase of about 36.6%[192]. - The company reported a decrease in indirect greenhouse gas emissions from electricity consumption from 104,987.61 kg CO2 equivalent in 2018 to 102,899.16 kg CO2 equivalent in 2019, a reduction of approximately 2%[192]. - The company has not generated any hazardous waste during the reporting period[185]. - The company has implemented various waste management strategies, including reusing construction materials and recycling metal waste[181]. - The company has established five waste reduction goals to minimize environmental impact[181]. - The company has not received any complaints regarding environmental violations during the reporting period[184]. - The total harmless waste disposed of in 2019 was 9,262.80 tons, showing a slight decrease from 9,266.60 tons in 2018[194]. - The harmless waste density increased significantly to 617.52 tons per construction project in 2019 from 386.11 tons in 2018[194]. - Total electricity consumption in 2019 was 163,332.00 kWh, down from 166,647.00 kWh in 2018[198]. - Electricity density increased to 27,222.00 kWh per office in 2019 from 20,830.88 kWh in 2018[198]. - Total water consumption in 2019 was 6,976.00 cubic meters, a substantial decrease from 36,055.00 cubic meters in 2018[199]. - Water density decreased to 872.00 cubic meters per office in 2019 from 3,004.58 cubic meters in 2018[199]. - The company received the "Healthy Workplace" award from the World Green Organization in 2019, recognizing its efforts in establishing a green office[197]. - The company implemented measures to reduce energy consumption and promote recycling among employees[196]. - The company encourages employees to bring their own lunch to reduce the use of disposable containers[196]. - The company faced no issues in sourcing water for its operations during the review year[197]. Corporate Governance - The company has adopted the corporate governance code as per the Listing Rules, ensuring compliance with the relevant guidelines[100]. - The board of directors has established three committees: the Audit Committee, the Nomination Committee, and the Remuneration Committee to oversee specific areas of the company's affairs[102]. - The company confirmed that all directors complied with the standards of the code for securities trading during the year ending December 31, 2019[101]. - The company emphasizes the importance of maintaining high levels of corporate governance to enhance shareholder value and protect the interests of stakeholders[99]. - The company has a commitment to regular reviews of its corporate governance policies to ensure ongoing compliance with the corporate governance code[100]. - The company has a diverse board with members possessing extensive experience across various sectors, enhancing its governance and strategic oversight capabilities[92]. - The board of directors consists of seven members, including three executive directors and four independent non-executive directors[103]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance board effectiveness[105]. - The company has a dividend policy that takes into account financial condition, capital and debt levels, future cash needs, and market conditions when determining dividend recommendations[108]. - The roles of the chairman and CEO are separated to comply with corporate governance codes, with the chairman overseeing overall business development and the CEO managing daily operations[112]. - The company has four independent non-executive directors, meeting the listing rules' requirements, and they are independent of management[113]. - The board is responsible for developing and reviewing corporate governance policies and ensuring compliance with legal and regulatory requirements[118]. - The company provides appropriate insurance for all directors to cover their responsibilities[119]. - The company held nine board meetings and one shareholders' meeting during the year ended December 31, 2019[127]. - The Audit Committee conducted two meetings to review the group's financial performance for board approval[132]. - The company provided comprehensive onboarding materials to newly appointed directors to ensure understanding of operations and responsibilities[125]. - All directors participated in ongoing professional development to enhance their knowledge and skills[126]. - The Audit Committee was composed of four members, including the chairman, who oversaw the completeness of the group's financial statements[132]. - The company had no disagreements with the Audit Committee regarding the appointment of external auditors during the year[132]. - The company encourages directors to seek external professional advice when necessary[127]. - The company plans to hold at least four regular board meetings annually, with additional meetings arranged as needed[127]. - The company provided training records for directors, indicating participation in various training types[126]. - The company established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee specific areas of company affairs[130]. - The external auditor, Crowe (HK) CPA Limited, received a total fee of HKD 840,000 for audit services and HKD 236,000 for non-audit services in the year ended December 31, 2019[137]. - The board of directors confirmed that the consolidated financial statements for the year ended December 31, 2019, were prepared in accordance with relevant accounting standards and regulations, with no significant uncertainties affecting the company's ability to continue as a going concern[140]. - The Nomination Committee held one meeting during the year to provide recommendations on the appointment of new directors and the composition of the board[142]. - The Remuneration Committee conducted one meeting to review and recommend the remuneration of individual directors based on their performance and contributions[148]. - The company has established guidelines and procedures for approving and controlling expenditures to ensure the reliability of financial reporting and compliance with applicable laws[154]. - The company has engaged CT Partners Consultants Limited to review the effectiveness and efficiency of its financial, operational, and compliance control risk management and internal control systems, with no significant issues identified[156]. - The board has adopted recommendations from CT Partners to improve internal controls and risk management, enhancing the overall risk management framework[156]. - The company emphasizes effective communication with shareholders and potential investors, ensuring timely access to comprehensive and understandable information regarding financial performance and strategic objectives[162]. - The company has a shareholder communication policy to ensure equal access to information for all shareholders and potential investors[162]. - The company has a dedicated website to provide the latest information on its operations, financial data, and corporate governance practices[162]. - The company has adopted a policy for the disclosure of inside information to ensure compliance with confidentiality regulations[157].
致浩达控股(01707) - 2019 - 年度财报