Revenue and Financial Performance - SEM Holdings Limited's revenue represented 1.6% of the total revenue generated from the entire E&M engineering industry in Macau in 2018, ranking fifth among E&M engineering works contractors in Macau[9]. - The annual revenue of SEM Holdings Limited first exceeded MOP200.0 million in 2017[12]. - The Group achieved an annual revenue of approximately MOP70.0 million in 2008[12]. - The Group recorded total revenue of approximately MOP203.1 million for the Year 2019, representing a 9.6% increase compared to MOP185.2 million for the Year 2018[35][39]. - The Group's cost of sales increased by 14.1% to approximately MOP147.1 million in 2019, up from approximately MOP128.9 million in 2018[44][49]. - The overall gross profit remained stable at approximately MOP56.0 million for 2019, with a gross profit margin decreasing from approximately 30.4% in 2018 to approximately 27.6% in 2019[45][50]. - The Group reported a net profit of approximately MOP20.3 million for the Year 2019, a decrease of approximately 51.1% compared to MOP41.5 million in 2018[56]. - Adjusted net profit for the Year 2019, excluding non-recurring listing expenses, was approximately MOP37.4 million, representing a decrease of approximately 13.4% from MOP43.2 million in 2018[57]. - The increase in revenue was primarily driven by a higher number of projects undertaken in 2019 compared to 2018, particularly in E&M maintenance projects[39][40]. - Administrative expenses increased from approximately MOP6.3 million in 2018 to approximately MOP11.0 million in 2019, mainly due to higher staff costs and legal fees[54][55]. - Other income for the Year 2019 amounted to approximately MOP0.2 million, up from approximately MOP0.1 million in 2018, primarily due to increased interest income from banks[48][52]. - As of December 31, 2019, the Group's cash and cash equivalents were approximately MOP33.6 million, an increase from approximately MOP27.0 million in 2018[63]. - The working capital as of December 31, 2019, was approximately MOP136.0 million, up from approximately MOP115.8 million in 2018[64]. - The total equity attributable to owners of the Group was approximately MOP151.4 million as of December 31, 2019, compared to approximately MOP131.1 million in 2018[64]. - The gearing ratio as of December 31, 2019, was approximately 36.9%, an increase from approximately 32.8% in 2018, primarily due to increased trade payables[65]. - The Group did not recommend the payment of a final dividend for the year 2019, consistent with 2018[61]. Projects and Operations - SEM Holdings Limited was awarded a project with an initial contract sum of approximately MOP138.7 million for a residential and commercial development project in Taipa, Macau[12]. - The Group provided electrical engineering works in a mixed-use development project with a total contract sum of approximately MOP118.6 million in 2007[12]. - SEM Holdings Limited's first casino project had a total contract sum of approximately MOP22.2 million[12]. - The company focuses on providing electrical-related E&M engineering works for commercial and residential developments, hotel developments, and casino developments in Macau[8]. - The Group's revenue increased due to market growth driven by the Macau Government's promotional campaigns and infrastructure projects, including the Hong Kong – Zhuhai – Macau Bridge[24]. - The Group anticipates further revenue growth in the coming years, supported by long-term relationships with customers, suppliers, and subcontractors[25]. - The Group plans to establish an electrical-related E&M maintenance department to capture rising renovation needs in the market[26]. - The Group is optimistic about the prospects of the Macau electrical-related E&M engineering industry despite the COVID-19 outbreak[26]. - The Group faces risks related to project-based operations, including the inability to attract new customers or secure new projects, which could significantly decrease revenue[72]. Corporate Governance and Leadership - The Group's listing on the Stock Exchange of Hong Kong on February 14, 2020, provided additional capital and a broader capital base for future growth[23]. - The Group aims to enhance corporate governance and strive for excellence in quality, safety, efficiency, and cost-effectiveness[29]. - The Group's business model includes a comprehensive process from quotation submission to project implementation and defect liability management[17][20][21]. - The board of directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[95]. - The company has a strong leadership team with over 25 years of combined experience in the E&M engineering industry among its executive directors[98]. - The company is focused on expanding its business development and enhancing its strategic planning capabilities[100]. - The company is committed to compliance and operational oversight, as indicated by the qualifications of its executive team[95]. - The company has a strong governance structure with independent non-executive directors providing oversight on strategy and performance[118]. - The company has undergone significant changes in its board composition, with independent directors appointed to enhance governance[118]. - The company is committed to achieving high standards of corporate governance to safeguard shareholder interests and enhance corporate value[131]. - The company has complied with the Corporate Governance Code since its listing date on February 14, 2020[132]. Employee and Remuneration Policies - The remuneration policy for employees is periodically reviewed, with potential salary increments and discretionary bonuses based on individual performance assessments[83]. - As of December 31, 2019, the Group had 23 employees, an increase from 20 in 2018, with total staff costs amounting to approximately MOP7.1 million, up from MOP4.9 million in 2018[83]. - For the year 2019, there were 2 employees with remuneration not exceeding HKD 1,000,000[196]. - The Remuneration Committee ensures that no individual is involved in determining his/her own remuneration[193]. - The Remuneration Committee reviews and approves management's remuneration proposals with reference to the Board's corporate goals[186]. Committees and Policies - The Company established a Dividend Policy on January 22, 2020, to balance sufficient capital maintenance and shareholder rewards[177]. - The Audit Committee was established on January 22, 2020, to maintain relationships with external auditors and oversee financial reporting[180]. - The Audit Committee consists of independent non-executive Directors and a non-executive Director, with Mr. May Tai Keung Nicholas as chairman[181]. - The Nomination Committee was established on January 22, 2020, to review the structure, size, composition, and diversity of the Board[199]. - The Nomination Committee is responsible for reviewing Board composition and recommending new Directors based on meritocracy and diversity[165]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee to oversee specific aspects of the Company's affairs[153]. - The Nomination Committee will review the Board Diversity Policy annually to ensure its continued effectiveness[166].
澳达控股(09929) - 2019 - 年度财报