Financial Performance - The group reported a full-year audited performance for the year ended December 31, 2019[15]. - The group's revenue increased by approximately MOP 89.1 million or 51.3% to about MOP 262.9 million for the year ended December 31, 2019, compared to MOP 173.7 million for the previous year[17]. - The group recorded a post-tax profit of approximately MOP 6.4 million, an increase of over 1.8 times compared to the previous fiscal year[17]. - The total value of newly awarded renovation projects was approximately MOP 264.3 million, up from MOP 153.7 million in the previous year, representing an increase of about 72.1%[25]. - The group's renovation project and construction project backlog totaled approximately MOP 52.6 million as of December 31, 2019, compared to MOP 33.4 million a year earlier[25]. - Revenue from renovation engineering increased by approximately MOP 58.0 million or 34.7%, while construction engineering revenue increased by approximately MOP 27.0 million or over 6.9 times[30]. - The gross profit for the year ended December 31, 2019, was approximately MOP 45.3 million, an increase of about MOP 6.5 million or 16.8% from MOP 38.8 million in the previous year[34]. - The group's gross profit margin decreased from approximately 22.3% for the year ended December 31, 2018, to approximately 17.2% for the year ended December 31, 2019[35]. - Other income and gains increased by approximately MOP 1.3 million or 67.8% from approximately MOP 2.0 million for the year ended December 31, 2018, to approximately MOP 3.3 million for the year ended December 31, 2019, due to the increase in fair value of investment properties[36]. - Administrative expenses rose by approximately MOP 3.6 million or 10.5% from approximately MOP 34.4 million for the year ended December 31, 2018, to approximately MOP 38.0 million for the year ended December 31, 2019, mainly due to the establishment of a new restaurant business[37]. - Financing costs decreased by approximately MOP 0.3 million or 13.6% from approximately MOP 2.5 million for the year ended December 31, 2018, to approximately MOP 2.1 million for the year ended December 31, 2019, due to the absence of bank overdrafts during the period[39]. - The group's profit attributable to owners increased by approximately MOP 4.1 million or over 1.8 times from approximately MOP 2.3 million for the year ended December 31, 2018, to approximately MOP 6.4 million for the year ended December 31, 2019[41]. - Basic earnings per share for the year ended December 31, 2019, was MOP 1.6 cents, an increase of MOP 1.0 cents or over 1.7 times compared to MOP 0.6 cents for the year ended December 31, 2018[42]. - As of December 31, 2019, the group's current assets exceeded current liabilities by MOP 113.8 million (2018: MOP 110.4 million)[45]. - The group's current ratio increased to 2.1 as of December 31, 2019, compared to 2.0 in 2018, indicating a stable liquidity position[49]. - The debt-to-equity ratio as of December 31, 2019, was 0.30 (2018: 0.28), primarily due to an increase in lease liabilities[49]. - As of December 31, 2019, the company had no capital commitments, consistent with the previous year[55]. - The company reported a total employee cost of MOP 50.4 million for the year ended December 31, 2019, an increase from MOP 42.1 million in 2018[65]. - The group’s distributable reserves amounted to MOP 81,267,000 as of December 31, 2019[185]. Business Operations - The group has nearly 30 years of experience in the renovation and construction industry in Macau, providing services such as renovation, construction, and maintenance[16]. - In October 2019, the group established a new restaurant business to explore new revenue streams, operating a Japanese restaurant in Taipa, Macau[16]. - The renovation projects undertaken can be categorized into three types: hotels and casinos, retail shops and restaurants, and others[16]. - The construction projects are mainly divided into general construction and heritage preservation[16]. - The group provides regular maintenance services for properties in Macau, both temporary and fixed-term[16]. - The group aims to continue enhancing growth and profitability through its competitive strengths[16]. - The group plans to expand its business in Southeast Asia and aims to establish subsidiaries and undertake new projects in the region in 2020[18]. - The introduction of new regulations in the Greater Bay Area is expected to create significant opportunities for the group, allowing licensed construction companies from Hong Kong and Macau to participate in projects in Hengqin[20]. - The group aims to enhance its competitiveness by developing upstream and downstream businesses and seeking more partnerships and opportunities[20]. - The restaurant business began generating revenue at the end of October 2019, marking a new business segment for the group[25]. - The company is developing upstream and downstream business opportunities, including the establishment of an electromechanical engineering company for diversification[72]. - The group is exploring new business opportunities in Macau's restaurant sector to generate new revenue streams[174]. - The group emphasizes the importance of subcontractors and suppliers in cost control and procurement negotiations, maintaining a competitive position in bidding[175]. - The group is actively seeking suppliers to secure a stable supply of quality food at competitive prices for its restaurant business in Macau[176]. Management and Governance - The management team possesses extensive industry knowledge, contributing to the group's ability to stand out among competitors[16]. - The group has established a solid network of suppliers and subcontractors, further supporting its operational capabilities[16]. - The board proposed a final dividend of HKD 0.01125 per share (equivalent to MOP 0.0116) for the year ended December 31, 2019, subject to shareholder approval[43]. - The board is collectively responsible for guiding and supervising the company's affairs, ensuring effective internal control and risk management systems are in place[89]. - The audit committee, composed of three independent non-executive directors, held two meetings in the year ending December 31, 2019, to review financial performance and risk management systems[100]. - The remuneration committee reviewed the remuneration policies for executive directors and senior management, holding one meeting during the year[103]. - The nomination committee is responsible for reviewing the composition of the board and making recommendations for the appointment or reappointment of directors[108]. - Independent non-executive directors ensure high standards of regulatory reporting and provide checks and balances within the board[91]. - All directors have access to company information and can seek independent professional advice at the company's expense[92]. - The company encourages continuous professional development for directors, providing training and reading materials[96]. - The company has established three committees: audit, remuneration, and nomination, to oversee specific aspects of its operations[99]. - The company has adopted a board diversity policy, emphasizing the importance of diversity at the board level to maintain competitive advantage[111]. - The nomination committee believes that the board is sufficiently diverse and has not set any measurable targets for board diversity[112]. - The board is responsible for maintaining effective risk management and internal control systems to protect the group's assets and shareholder interests[115]. - An independent external consultant was appointed to review the effectiveness and adequacy of the group's risk management and internal control systems[119]. - The company has established risk management procedures to identify, assess, and manage significant risks, with senior management responsible for annual risk reporting[120]. - The company aims to eliminate risks, reduce risk levels, or maintain acceptable risk levels based on risk assessments conducted by senior management[121]. - The board confirms that there are no significant uncertainties regarding the company's ability to continue as a going concern[125]. - The company has implemented an insider information disclosure policy to ensure accurate and timely information is provided to shareholders and the public[123]. - The board is responsible for the preparation of the financial statements for the year ending December 31, 2019[124]. - The audit report from the independent auditor is included in the annual report, detailing their responsibilities[126]. - The company paid a total of MOP 1,707,000 for audit and non-audit services for the year ended December 31, 2019, with MOP 1,280,000 for audit services and MOP 426,700 for non-audit services[128]. - The company’s secretary, Mr. Lu Hanjie, has completed no less than 15 hours of relevant professional training in accordance with the listing rules[131]. - The company maintains a communication platform through its website, where financial and other relevant information is available for public viewing[139]. - The company has established a shareholder communication policy to ensure that shareholder opinions and concerns are properly addressed[140]. - The company allows shareholders holding at least 10% of the voting rights to request a special general meeting[134]. - The board of directors is committed to maintaining effective communication with shareholders, particularly through annual general meetings[139]. - The company does not have a preset dividend payout ratio, and dividends are subject to the board's discretion based on financial conditions[140]. Legal and Compliance - The company is facing a lawsuit from the Macau government seeking approximately MOP 12.8 million in compensation related to safety measures and investigation costs for the collapse of a building[53]. - The company has committed to compensating for any losses and liabilities arising from the legal proceedings mentioned[53]. - The company has not made any provisions for the lawsuits mentioned, as the board believes the likelihood of resource outflow is low[54]. - The group has obtained all necessary registrations and certifications for its operations in Macau and Hong Kong, ensuring compliance with applicable laws and regulations[170]. Market Outlook - The company remains cautiously optimistic about its prospects despite instability in the Hong Kong and Macau renovation and construction markets[73]. - The Greater Bay Area development policy is viewed as a significant opportunity for the company to expand its business market[72]. - The company aims to sustain revenue growth by targeting renovation markets in other Southeast Asian countries[73]. - The company acknowledges the impact of global economic slowdown and local socio-political issues on its market outlook[70]. Ownership and Structure - The company was established on June 1, 2016, in the Cayman Islands and listed on the Hong Kong Stock Exchange on February 10, 2017[164][166]. - The main business includes investment holding and providing corporate management services, with subsidiaries offering renovation, construction, maintenance services, and dining services[167]. - The company has undergone restructuring to prepare for its listing, with details provided in the 2017 annual report[165]. - The group’s financial risk management objectives and policies are outlined in the financial statements, indicating a structured approach to managing financial risks[168]. - The company’s executive directors have extensive experience in the construction and renovation industry, contributing to its operational management[149][156]. - Revenue from the group's top five customers accounted for 55% of total revenue, with the largest customer contributing 13.7%[187]. - Mr. Li Yingman holds a controlling interest in the company with 300,000,000 shares, representing 75% ownership[199]. - In the associated company SHKMCL, Mr. Li Yingman has a beneficial interest of 50 shares, equating to 50% ownership[200]. - Mr. Li Ming Shan holds a beneficial interest of 30 shares in SHKMCL, representing 30% ownership[200]. - Ms. Li Yinghui has a beneficial interest of 20 shares in SHKMCL, which corresponds to 20% ownership[200].
黎氏企业(02266) - 2019 - 年度财报