Financial Performance - The company recorded revenue of approximately HKD 365.4 million for the fiscal year 2018, an increase of about HKD 49.6 million or 15.7% compared to HKD 315.8 million in 2017[15]. - The gross profit decreased to approximately HKD 87.0 million in 2018, down about HKD 12.5 million or 12.6% from approximately HKD 99.5 million in 2017, with a gross margin of 23.8%[20]. - The group recorded a profit of approximately HKD 36.9 million for the fiscal year 2018, a decrease of about HKD 15.4 million or 29.4% compared to approximately HKD 52.3 million in 2017[24]. - Administrative and other operating expenses increased by approximately HKD 12.5 million or 43.3% to about HKD 41.4 million in 2018, primarily due to business expansion[21]. - The company proposed a final dividend of HKD 0.018 per share for the fiscal year 2018[11]. Project Backlog and Bidding - The company has a backlog of key projects with an estimated contract value of approximately HKD 216.7 million as of December 31, 2018[17]. - The company is currently bidding for six large-scale projects with an estimated total contract value exceeding HKD 863.2 million[17]. - The company observed a tightening of client budgets for curtain wall market tenders, but expects an increase in bidding opportunities due to the reconstruction of several commercial buildings[18]. - The company plans to continue focusing on curtain wall projects and seek more opportunities to maintain its competitive advantage[9]. Financial Position and Borrowings - The group’s bank borrowings as of December 31, 2018, were approximately HKD 8.2 million, a decrease of about HKD 11.3 million from approximately HKD 19.5 million as of December 31, 2017[26]. - The group’s cash and cash equivalents as of December 31, 2018, were approximately HKD 96.6 million, a decrease of about HKD 10.0 million from approximately HKD 106.6 million as of December 31, 2017[29]. - The group’s asset-liability ratio as of December 31, 2018, was approximately 0.04 times, down from 0.09 times as of December 31, 2017, mainly due to an increase in total equity and a decrease in bank borrowings[29]. Employee and Operational Metrics - Employee benefits expenses for the fiscal year 2018 totaled approximately HKD 49.6 million, an increase from HKD 43.5 million in 2017, primarily due to business expansion[39]. - The group had 70 employees in Hong Kong and 25 employees in China as of December 31, 2018, compared to 62 and 29 employees respectively in 2017[178]. - The group’s accounts receivable turnover days increased to approximately 63.1 days in 2018 from approximately 45.7 days in 2017[25]. Corporate Governance - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[60]. - The board has adopted the corporate governance code and has complied with it since the fiscal year 2018, except for the separation of roles of chairman and CEO[60]. - The board is responsible for overall strategy and policy formulation, performance evaluation, and management oversight[62]. - The company recognizes that board diversity supports its strategic goals and sustainable development[68]. Environmental and Social Responsibility - The company is committed to minimizing the adverse environmental impacts of its business growth through various environmental protection measures[152]. - The company's greenhouse gas emissions decreased by 4% to 116 tons in 2018, compared to 121 tons in 2017, reflecting a reduction in carbon emissions density by 15.5% per average employee[160]. - The company recycled 620 kg of waste paper in 2018, reducing approximately 3 tons of greenhouse gas emissions[154]. - The company has implemented various energy-saving measures in its offices, including turning off unused lighting and air conditioning[154]. Risk Management - The risk management committee conducted a risk assessment for the fiscal year 2018, identifying major risks and ensuring continuous monitoring and control[77]. - The company has adopted a policy and procedural manual for internal control and risk management compliance across various operations[78]. - The company’s governance report indicates that the board is responsible for assessing the nature and extent of risks associated with its strategic objectives[77]. Community Engagement - The group actively supports employee participation in community activities, including charity fundraising events[180]. - The group has made donations to various charities, including the Rainbow Foundation and the Hong Kong World Vision, to support vulnerable communities in Hong Kong[180]. Compliance and Legal Matters - The group has not encountered any significant violations of employment and labor standards laws during the reporting period[178]. - The company has confirmed compliance with the non-competition commitments made by its controlling shareholder since May 12, 2017[108]. - The group has not found any significant violations related to product liability laws during the reporting period[186].
信越控股(06038) - 2018 - 年度财报